State-owned China IC Fund leads launch of $255m semiconductor fund

A clerk counts Chinese yuan and U.S. dollar banknotes at a branch of Bank of China in Taiyuan

State-owned China Integrated Circuit Industry Investment Fund (China IC Fund) is joining a group of firms that are launching a $255-million fund to invest in semiconductor companies.

Hong Kong-listed Semiconductor Manufacturing International Corporation (SMIC) confirmed in a disclosure that its subsidiary, China IC Capital, will be working with China IC Fund, IPV Global, and L&L Capital for the establishment and management of IPV Capital Global Technology Fund.

IPV Global, the overseas merger and acquisition fund of Infotech Venture Investment, which has assets under management of over $3 billion, will act as general partner of the planned fund while the others will be limited partners.

China IC Fund will provide Rmb800 million (US$126 million) in funding and control 49.5 per cent of the fund, according to the HKEX filing. L&L Capital will own 39.29 per cent of the fund while China IC Capital and IPV Global will hold 10.21 per cent and 1 per cent, respectively.

China IC Fund, incorporated in September 2014, mainly invests in the value chain of integrated circuit industry via various approaches, primarily in integrated circuit chip manufacturing as well as chip designing, packaging test and equipment, and materials

On the other hand, China IC Capital, founded in February 2014, is a wholly-owned subsidiary of SMIC, one of the leading foundries in the world.

The fund will invest in selected companies operating in the semiconductor and related industries.

“Such investments are intended to help accelerate the development of the integrated circuit industry ecosystem in China and to excavate the potential opportunities for the exploitation and integration of resources in the industry,” according to the signed agreement.

The term of the fund will be for seven years from the first contribution date stated on the first installment notice issued by the General Partner, the agreement reads.

According to an earlier Bloomberg report, China is trying to reduce reliance on some $200 billion of annual semiconductor imports and envisions spending about $150 billion over 10 years to achieve a leading position in design and manufacturing.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.