Runpeng Semiconductor, the subsidiary of Shanghai-listed China Resources Microelectronics (CR Micro), has raised its registered capital to 12.6 billion yuan ($1.7 billion) from 2.4 billion yuan ($329.5 million), according to a regulatory filing dated August 16.
It has roped in a slew of state-affiliated investors, including China Integrated Circuit Investment Fund II, a 204-billion-yuan ($29 billion) vehicle set up in 2019 to accelerate the development of the semiconductor industry, for the capital expansion.
China Structural Reform Fund II, which targets reforms of state-owned enterprises (SOEs) in the Yangtze River Delta region; the investment arm of state-owned automaker FAW Group; and CCB Investment, the investment vehicle of China Construction Bank, are among the other investors that injected capital into the firm.
Parent company CR Micro has also injected 2.3 billion yuan ($315.7 million) into the firm. This amount will be used in the construction of its 300mm integrated circuit (IC) semiconductor fabrication plant, while the rest of the fresh proceeds will be used to finance the future development of the new fab.
Founded in 1999, CR Micro operates as a high-tech enterprise specialising in the R&D, production, and distribution of microelectronic products and semiconductors, as well as investment and management in related areas.
Upon completion of the deal, CR Micro will hold a 33% equity stake in its subsidiary, while China Integrated Circuit Investment Fund II will obtain a 25% stake in the firm followed by a 9% stake held by China Structural Reform Fund II, per the filing.
Investors continue to gush massive funds into semiconductor startups vis-à-vis their counterparts in other industries amid the government’s attempt to strive for self-sufficiency in chips.
Besides PE-VC investors, state authorities are playing a bigger role in promoting homegrown chipmakers as Beijing seeks to counter escalating US sanctions. In 2022, the government drew 12.1 billion yuan ($1.7 billion) in capital to support 190 China-listed semiconductor firms, according to a report by media outlet ijiwei, which cited financial data provider Wind.