Introduction:
The establishment of the National Integrated Circuit Industry Investment Fund Phase II was officially announced in October 2019, with the main goal of promoting the sustainable development of China’s integrated circuit industry through efficient capital operations.
Author | Fang Wensan
Image Source | Internet
National Fund Invests in JCET
Recently, JCET Automotive Electronics (Shanghai) Co., Ltd. underwent a series of changes in its business registration.
Following the adjustments, the company added National Integrated Circuit Industry Investment Fund Phase II (National Fund Phase II), Shanghai Integrated Circuit Industry Investment Fund (Phase II) Co., Ltd., Shanghai State-owned Assets Management Co., Ltd., and several other shareholders.
Simultaneously, the company’s registered capital saw a significant increase from the original 400 million RMB to 4.8 billion RMB.
Furthermore, the company added multiple directors and supervisors to further optimize its corporate governance structure.
Before these changes, the shareholder structure of JCET Automotive Electronics Company mainly consisted of Shanghai Xinxi Industry Private Equity Investment Fund Partnership Enterprise (Limited Partnership) and JCET Management Co., Ltd., with the former contributing 86 million RMB and the latter contributing 3.14 billion RMB, totaling a registered capital of 4 billion RMB.
After the changes, the contribution of Shanghai Xinxi Industry Private Equity Investment Fund Partnership Enterprise (Limited Partnership) remained unchanged, while the contribution of JCET Management Co., Ltd. increased significantly to 26.4 billion RMB.
Additionally, new shareholders included Shanghai State-owned Assets Management Co., Ltd., Shanghai Xinzhijing Enterprise Management Partnership Enterprise (Limited Partnership), Shanghai Integrated Circuit Industry Investment Fund (Phase II) Co., Ltd., and National Fund Phase II, contributing 700 million RMB, 2.4 billion RMB, 2.7 billion RMB, and 8.64 billion RMB, respectively.
This capital increase was based on the announcement made by JCET on March 17th. The announcement stated that JCET intends to increase the capital of its wholly-owned subsidiary JCET Management Co., Ltd. by 4.5 billion RMB, mainly for the latter’s capital increase in JCET Automotive Electronics (Shanghai) Co., Ltd. and the acquisition of an 80% stake in Shengdie Semiconductor (Shanghai) Co., Ltd.
After the capital increase, JCET Management Co., Ltd.’s registered capital will increase from 1 billion RMB to 5.5 billion RMB and will continue to be a wholly-owned subsidiary of JCET.
The main purpose of this capital increase is to drive JCET’s efforts to establish a large-scale advanced packaging base for producing automotive chips in the Lingang New Area of Shanghai.
This base will support major domestic and international customers and industry partners, catering to the increasing electrification and intelligence trends in new energy vehicles, and comprehensively building a complete local chip supply chain.
JCET stated that this capital increase will help enhance the company’s industrial layout, strengthen its automotive electronics and storage and computing electronic businesses, and further expand its market development space.
It is worth noting that the investment from National Fund Phase II not only provides financial support to JCET Automotive Electronics but also reflects the country’s emphasis and support for the automotive electronics industry.
This move will undoubtedly drive JCET’s rapid development in the automotive electronics field, further consolidating and enhancing its competitiveness in the industry.
The Automotive Electronics Sector Attracts Capital and Enterprise Attention
Since establishing its Automotive Electronics Business Unit in 2021, JCET’s automotive electronics business has become the fastest-growing sector for the company.
According to market research firm Gartner, the global automotive semiconductor market is expected to expand to $116.6 billion by 2030, with a compound annual growth rate of 11.7% from 2020 to 2030.
In this context, JCET’s automotive electronics business has been the fastest-growing segment for the company since its inception.
In the first three quarters of 2023, JCET’s revenue in the automotive electronics sector saw a significant year-on-year increase, with a growth rate of up to 88%.
Over the past three years, the revenue share from automotive electronics applications has experienced continuous exponential growth, while the number of automotive electronics customers has shown a rapid increase.
Looking ahead to the next few years, with the rise of the electrification trend in new energy vehicles, innovation in automotive semiconductor based on advanced packaging technology will become a core driver for the continuous development of the entire semiconductor industry chain.
The Automotive Chip Product Manufacturing and Testing Production Base of JCET in Lingang, Shanghai, covers an area of over 200 acres, with a factory building area of approximately 200,000 square meters.
The project officially started construction in August 2023 and is expected to be fully completed and put into operation by early 2025.
Once completed, it will become JCET’s first intelligent “dark factory” production line in China, setting a new benchmark for efficiency and value.
Advanced Packaging Offers Greater Productivity Value
JCET has demonstrated outstanding performance in the field of advanced packaging, renowned in the industry for being the third-largest globally and the first domestically in market share, as well as for its cutting-edge packaging technologies.
The company possesses a comprehensive and rich packaging technology system, covering wafer-level packaging, system-level packaging, flip-chip packaging, wire bonding packaging, and five other solutions, fully meeting diverse packaging needs from simple chips to high-performance computing.
It is worth mentioning that JCET not only masters advanced packaging technologies such as TSV (Through-Silicon Via) and RDL (Redistribution Layer) but has also successfully developed the XDFOI high-performance packaging technology platform, which can flexibly address complex packaging needs such as 2D, 2.5D, 3D, Chiplet, and HBM.
In terms of Chiplet packaging and RDL technology, JCET has shown significant technical advantages, leading domestic peers such as Tianshu Microelectronics and Huatian Technology.
These technical advantages have not only won JCET a wide market share but also provided strong support for the vigorous development of the domestic chip industry.
JCET’s innovation in packaging technology has never stopped, with its Chiplet packaging node successfully breaking through 4nm, reaching a leading level in the industry.
At the same time, the company has made significant progress in RDL technology, achieving 5-layer wiring technology, keeping pace with global leaders like Nippon Mokuzai, slightly behind TSMC’s 6-layer wiring technology.
This achievement fully demonstrates JCET’s leading position in the global packaging technology field and its role as a powerhouse in domestic packaging technology.
With the implementation of the National Fund Phase III, the advanced packaging and storage chip sectors have vast development prospects.
As a leading packaging enterprise in China, JCET has demonstrated strong competitiveness in both sectors.
With the gradual recovery of industry demand and the company’s deepening layout in the storage chip sector, JCET’s performance is expected to achieve sustained growth.
This positive development trend has attracted the attention and investment of nearly 700 institutions, fully reflecting the market’s high recognition and expectations for JCET’s future development.
National Fund’s Focus on Domestic Semiconductor Industry Development
According to relevant data, the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. (referred to as the National Fund Phase II) was officially established on October 22, 2019, with Zhang Xin as its legal representative and a registered capital of 204.15 billion RMB.
The company’s shareholder structure consists of the Ministry of Finance, China Development Bank Financial Co., Ltd., Chengdu Tianfu Guoji Investment Co., Ltd., Zhejiang Fuzhe Integrated Circuit Industry Development Co., Ltd., China Tobacco Corporation, Wuhan Optics Valley Financial Holding Group Co., Ltd., and a total of 27 shareholders.
As the successor of the first fund, the National Fund Phase II has a total fundraising scale of approximately 204.2 billion RMB, leveraging close to 600 billion RMB of social funds, demonstrating its significant role in promoting the development of the integrated circuit industry.
In the investment field, the National Fund Phase II has shown a broader coverage, spanning wafer manufacturing, integrated circuit design tools, chip design, packaging testing, equipment, components, materials, and applications, among other crucial segments.
Compared to the first fund, the National Fund Phase II focuses more on the upstream areas such as semiconductor equipment and materials, especially in key equipment like etching machines, thin film equipment, testing equipment, cleaning equipment, and important materials like large silicon wafers, photoresists, masks, and electronic special gases, strategically investing to drive the continuous and healthy development of the domestic integrated circuit industry.
Conclusion:
The capital increase for JCET Automotive Electronics is a key part of the strategic layout of the National Fund Phase II.
The active involvement of the National Fund Phase II not only injects ample financial support into JCET Automotive Electronics but also gives it a significant advantage in terms of market and resource integration.
Especially in the field of new energy vehicles, with the continuous growth in market demand, the need for high-performance automotive chips is expected to rise.
JCET Automotive Electronics is poised to further consolidate and enhance its competitiveness and influence in domestic and international markets, laying a solid foundation for future development.
