Supporting independent innovation, starting from a bold countercyclical investment

　　Recently, Wuxi Innovation Investment Group Co., Ltd. successfully completed its lead investment in the B+round financing of Shanghai Super Silicon Semiconductor Co., Ltd., a domestic large-size silicon wafer manufacturer, with a total investment of up to 1 billion yuan. In the current difficult situation of financing in the domestic primary market this year, such a large-scale investment is particularly valuable. Why invest boldly against the cycle? Wang Zhixing, Co President of Xicheng Venture Capital, stated that Shanghai Super Silicon is a leading domestic enterprise in the research and production of large-sized silicon wafers, with strong independent innovation capabilities. "We dare to invest early and heavily in innovative projects in key areas." It is reported that Xicheng Venture Capital has always strongly supported independent innovation. As of now, Xi Venture Capital has invested in about 900 companies with a total investment of about 75 billion yuan, supporting more than 100 companies such as New Clean Energy and Longda Co., Ltd. to achieve IPOs.

　　Investing in innovation in key areas, daring to invest heavily and owning the world's third and domestic first 300mm silicon wafer fully automatic intelligent production line; The core technology team consists of over 60 experts from Japan, Germany, and the United States; Chairman Chen Meng has won the first prize of National Science and Technology Progress Award; Having over 100 patents; Among the top 20 integrated circuit manufacturers in the world, 18 are already bulk formal customers of Shanghai Super Silicon... These are all manifestations of Shanghai Super Silicon's hard power. In addition, it is worth mentioning that Shanghai Super Silicon is also the only company in China that has mastered the production technology of crystal growth equipment, with complete independent intellectual property rights and irreplaceable and leading product technology. Wang Zhixing told reporters that "crystal growth technology is a crucial part of the production process of large silicon wafers. The production of large silicon wafers requires very high crystal purity." Currently, the technology threshold for large-sized silicon wafers is extremely high, talent is scarce, and the industry is currently monopolized by foreign countries. In 2020, the total sales of the top five semiconductor silicon wafer companies in the world accounted for 92% of the global semiconductor silicon wafer industry sales. Supporting companies like Shanghai Super Silicon will help break this situation. This large-scale investment is a manifestation of Xi Venture Capital's determination and courage to support independent innovation in key areas. It is reported that Xi Venture Capital has partnered with China Chengtong to establish two specialized funds to support Shanghai Super Silicon through specialized fund operations. Dr. Chen Meng, founder, chairman, and CEO of Shanghai Super Silicon, stated that this round of financing will help steadily advance the company's 200mm and 300mm product strategic planning.

　　A year ago, a city level angel fund was established with the operating model of "government guidance, scientific decision-making, market operation, and risk tolerance" in places where the market failed. A strong angel leads to a strong technology. As the trustee of the municipal angel fund, Xi Venture Capital has always regarded the operation of this fund as an important lever for cultivating local brands and supporting innovation and entrepreneurship. As of September this year, the City Angel Fund has completed the approval of 17 direct investment projects, including Hongpeng Aviation, Moro Technology, and Muchuang Integrated Circuit, of which 15 projects have been approved; Jiangyin Direct Investment Sub Fund has completed registration, and direct investment sub funds in Yixing, Xinwu and other sectors are also being vigorously promoted; The first market-oriented sub fund, Wuxi Dingqi Zhongsu Achievement Transformation Fund, which has settled in Binhu District and focuses on the transformation of scientific and technological achievements of Jiangnan University, has also completed two project investments. Due to the high risk and difficulty, social institutions are not very fond of or willing to invest in early-stage projects. In September of this year, Hua Xiaofeng, Chairman of Xicheng Venture Capital, discussed in a conversation with Yao Xiaoxiong, Secretary of the Party Committee and Chairman of Shenzhen Angel Mother Fund, that playing a tangible role in regulating market failures is the natural mission of state-owned institutions. "The government leads investment, and social institutions slowly follow up to create a more suitable 'soil' for early projects to grow." In fact, Xicheng Venture Capital has long had successful examples of daring to invest early and investing small - Longda Co., Ltd., which landed on the Science and Technology Innovation Board this year, invested 100 million yuan in its angel stage to provide support.

　　To retain high-quality enterprises with a good ecological chain, one must have both courage and strategy. Taking the integrated circuit industry as an example, Xichuang Capital has completed the full industry chain layout in this field. On the manufacturing side, we have established excellent enterprises such as Huahong Semiconductor, Development Crystal, Tin Microelectronics, and New Clean Energy; On the chip design side, there are companies such as Huada Semiconductor, Muchuang Integrated Circuit, Taichu Technology, and chip field; On the equipment side, we have invested in companies such as Shengmei Semiconductor and Yiwen Electronics; On the material side, layout the photoresist of Yak Technology and Boyan Electronics, as well as the mask plate of Diesiwei; And this investment in Shanghai Super Silicon has achieved layout in the core field of large silicon wafer materials in the upstream of semiconductors. Using a good ecological chain to retain high-quality enterprises, making them a "starter", and then driving the prosperity of supporting enterprises and even the entire industrial chain. Wang Zhixing stated that Xi Venture Capital will continue to assist Wuxi's industry in "strengthening and supplementing the chain", continuously empower high-quality enterprises, and provide comprehensive services to enterprises through the collaborative services of securities, guarantees, leasing, and other diversified financial sectors under the United Nations Group. We strive to make "the seeds come and sprout, and the sprouts produce results". In terms of regional expansion, Xi Venture Capital's vision is no longer limited to the local area, but gradually expands to the Yangtze River Delta, the whole country, and even overseas through various means such as mergers and acquisitions.

Article source: Wu Mengjia, reporter from Wuxi Daily