Zhuzhou CRRC Times Semiconductor, the controlling subsidiary of trains and electric vehicle systems manufacturer Zhuzhou CRRC Times Electric, has raised around 4.3 billion yuan ($597.3 million) in an equity financing round.
State-owned investors including the investment platforms under the municipal governments of Zhuzhou and Yixing; power generator China Southern Power Grid, which operates the power grids in the southern provinces of Guangdong; and automobile manufacturer SAIC Motor are part of the 26 strategic investments that joined the round, per a regulatory filing dated March 29.
Post-financing, the firm will see its registered capital change to 5.6 billion yuan ($779.4 million) from almost 4.6 billion yuan ($630.3 million), while CRRC Times Electric — which is dually listed in Hong Kong and Shanghai’s Star Market — will see its stake drop to 77.7771%.
The proceeds will enable the strategic investors to partner with the firm and share industry and market resources, Guotai Junan Securities, financial advisor to the deal, shared in its WeChat account on Friday. As CRRC Times Semiconductor’s employee stock ownership platform also participated in the round, the financing will help boost the morale of the core employees.
Set up by its parent firm in January 2019, the Zhuzhou-registered firm covers all stages of semiconductor manufacturing from planning, production to the sales of the final products. Its parent firm Zhuzhou CRRC Times Electric has since engaged in the R&D and industrialisation of power semiconductor devices since the 1960s.
Chipmakers like CRRC Times Semiconductor have been attracting investor attention as China ramps up its efforts to achieve self-sufficiency in chips. The chipmaking sector saw the completion of 421 deals in 2023 when their fundraising proceeds topped almost $8.5 billion, according to DealStreetAsia’s proprietary data. Although 2023 saw the semiconductor deal count drop by 43.2% over the previous year, the investment proceeds were 11.2% higher, per the data.
