Xi Venture Capital Helps Wuxi's' Chip 'Industry

　　On July 29th, with the commencement of Changdian Microelectronics' wafer level microsystem inheritance high-end manufacturing project, Wuxi's integrated circuit industry has added another child to its map. It is reported that the total investment of this project is 10 billion yuan, which is the largest intelligent manufacturing project with the highest production technology level and the largest single investment scale in China's integrated circuit packaging and chip manufacturing industry. The frequent landing of major projects is a reflection of the development strength and vitality of Wuxi's integrated circuit industry, and a common product of our city's industrial resource aggregation and high-quality financial ecology. Behind the billions of output value, there has always been an invisible force of venture capital silently building a "capital ecosystem", helping Wuxi's "chip" industry "strengthen and supplement the chain", and continuously "adding bricks and tiles" to the steady development of the industry map.

　　According to Zhang Weimin, Deputy General Manager of Wuxi Innovation Investment Group Co., Ltd., as a municipal state-owned investment platform, Xichuang Capital is responsible for managing most of the government industrial funds in Wuxi. Based on the deployment of our city's key industries, Xichuang Capital has invested a large amount of resources in integrated circuit investment layout, and has established a semiconductor special fund with a scale of over 4 billion yuan, more than 50 investment projects, and more than 10 related investment teams. In the field of integrated circuits, Xichuang Capital has achieved a full industry chain layout and full lifecycle investment. With a focus on the new generation of information technology centered around integrated circuits and semiconductors, Tin Venture Capital's layout covers design, materials, equipment, wafer foundry, packaging, and more. With the capital support of Wuxi Venture Capital, "heavyweight players" or listed companies have emerged in multiple directions of integrated circuit industry development in Wuxi. Xi Venture Capital is still in the angel stage VC、PE、 Empower high-quality enterprises through investment in multiple financing stages such as private placement and mergers and acquisitions. Participating in Tai Chi Industrial and Changdian Technology's private placement, we can see the presence of Xi Venture Capital in many integrated circuit star projects in Wuxi. High concentration and immersive capital services provide invested enterprises with a strong sense of achievement. It is the firm investment and professional advice of Xicheng Venture Capital that have helped the company achieve a qualitative leap, "the person in charge of Xinjieneng told reporters. Optimistic about the development prospects of the enterprise, Xi Venture Capital has made multiple rounds of investments in the New Clean Energy project since 2015, with multiple funds managed by the company holding a total stake of over 9%. Since then, New Clean Energy has been ranked among the "Top 10 Semiconductor Power Device Enterprises in China" for five consecutive years, and won the the State Technological Innovation Award in 2020. Since its listing in 2020, Xinjie Energy has gained high market recognition and its stock price has repeatedly hit new highs. Xicheng Venture Capital has also made significant profits, achieving a win-win situation for both the company and investment institutions.

　　Targeted support for high-quality "seeds" to fill the gap in industrial development. As early as 2017, Xicheng Venture Capital began to bulk layout the integrated circuit industry. Ding Li, partner of Jintou Zhiyuan Fund and team leader of the integrated circuit industry on Xichuang Capital's mixed ownership platform, introduced that "at that time, the domestic integrated circuit industry was large in scale but highly dependent on imports. Therefore, in response to the weak links in the domestic industry, the team chose high-quality 'seeds' to start targeted support." After more than ten years of precipitation, many high-quality' seeds' like Yiwen Technology have grown into 'towering trees', and their technological research and development strength has been greatly improved, breaking multiple foreign technology monopolies. According to the person in charge of Yiwen Technology, the company has developed multiple domestic 'first sets', breaking the monopoly of Japan and Finland in ALD equipment. ”With the continuous expansion of industrial layout, investors have conducted more in-depth research and made more accurate judgments, thus being more willing to invest early and lead investments, achieving a virtuous cycle. It can be observed that the role of venture capital in resource allocation, industry orientation, and investment attraction is becoming increasingly prominent. The repeated strategic investments made by Xi Venture Capital have further helped Wuxi stand out in major "chip" cities across the country. Through the "investment+mergers and acquisitions+incubation" model, Xi Venture Capital has assisted Yak Technology in acquiring leading Korean photoresist companies, gaining market and resources, connecting technology and talent, filling the domestic gap, quickly opening up the internal and external circulation path, and realizing the full industry chain layout of semiconductor materials for platform companies. Huajin Semiconductor, the invested enterprise, takes the lead in creating the first national level manufacturing innovation center in Wuxi. Investment requires a sense of boundaries, long-term planning, larger scale, and more difficult tasks, in order to truly help solve industrial development problems, "Zhang Weimin mentioned more than once in an interview.

　　Building a 'capital ecosystem' to support deep industry collaboration. Through cooperation with top GPs such as China Chengtong, the 'lineup' of Wuxi Semiconductor Investment's friend circle is gradually growing. Wuxi's semiconductor industry has been favored by top funds, with its China Investment Fund Phase II investing 700 million yuan in Xichan Xinwei, 300 million yuan participating in the capital increase of Jiangsu Xianke, a subsidiary of Yak Technology, and 100 million yuan participating in the capital increase of China Resources Micro Mask Factory Disiwei. Under the layout of the entire industry chain, promoting industrial synergy is an easy task. Matchmaking helps upstream and downstream enterprises expand their cooperation scale, assists leading enterprises in the industry in finding high-quality merger and acquisition resources, holds industry seminars to promote business docking... Within the distinctive "capital ecosystem" constructed by Xicheng Venture Capital, industrial resources have been further integrated. It is reported that Xi Venture Capital began planning a new investment path three years ago, implementing the "cultivation" plan, leading the operation of a professional integrated circuit industry park, providing services including project incubation, investment operation, and financing, and currently serving a total of 30 enterprises. Standing at the height of urban development, overlooking the return of industries. Industry insiders believe that if Wuxi wants to maintain its first mover advantage, it should put more effort into strengthening its supply chain and exploring new opportunities for distinctive development. It is reported that as the main investment carrier in the city, Xichuang Capital has made forward-looking layouts in equipment, materials, and other aspects. For example, Huajing Sensing and Hongguang Microelectronics incubated in the industrial park are both next-generation semiconductor development layouts. In the early stage, Xichuang Capital also released a global recruitment plan, vigorously recruiting partners in the integrated circuit business, which will inject new talents, resources, and vitality into the development of the industry.

Article source: Wu Mengjia, reporter from Wuxi Daily