Keyang Semiconductor has notched 500 million yuan (over $72 million) in a funding round led by two integrated circuit (IC)-focused investors — China Fortune-tech Capital and Sunic Capital, according to a company release on April 30.
The round, which saw the participation of a slew of investors such as CDH Investments, Clivia Capital Management, and Soochow Investment, will help the firm in R&D as well as expanding its manufacturing capability. Previous backer LongBridge Capital also re-upped in the round.
Founded in October 2013, the Suzhou-based firm engages in advanced packaging and testing services for the semiconductor industry. Previously, the firm snapped 100 million yuan ($14.5 million) in a funding round joined by two strategic investors in January 2022.
The investment comes at a time when semiconductor firms remains one of the most-invested industries in China. Startups in the industry sealed 27 deals in February, show proprietary data compiled by DealStreetAsia.
China remains the world’s largest semiconductor market, as monthly sales of chips in the country stood at $11.7 billion in January 2023, or 28.2% of the global sales, according to the World Semiconductor Trade Statistics (WSTS). The US was the second largest market, with monthly sales of $10.5 billion, or 25.4% of the global sales.