Zhejiang Zhongning Silicon Industry, which makes silane gas and electronic-grade polysilicon used in integrated circuit industry, has secured 800 million yuan ($112.7 million) in a fresh funding round led by China-focused private equity investment firm Phoenix Tree Capital Partners.
Beijing-based Phoenix Tree Capital Partners, which manages venture capital, mergers and acquisitions, private investment in public equity as well as fund of funds, has 10 billion yuan ($1.4 billion) in assets under management.
The round saw the participation of state-affiliated investors including Quzhou State-owned Capital Operation; Hengxu Capital under Chinese automaker SAIC Motor Corp, and distressed asset manager China Cinda Asset Management, according to a company release on Thursday.
The proceeds will help the Quzhou-headquartered firm to expand its production capacity as well as accelerate its product iteration, per the release.
The financing comes over a month after Zhongning Silicon Industry started its preparations to go public, Shenzhen-listed Do-Fluoride New Materials, which holds a 41.85% stake in Zhongning Silicon Industry, shared in an exchange filing on November 29, without divulging details on the listing destination and timeline.
Founded in December 2017, the Quzhou-headquartered firm emerged at a time when the country strives for self-reliance in chipmaking amid an intensifying crackdown from the US.
Investors have continued to flock to ‘China chip’, making it the most-invested sector by deal count in November 2023, with the completion of 41 deals despite raising only $479.4 million, according to DealStreetAsia’s proprietary data.
The pullback of US investors amid the ongoing geopolitical tension between China and the US could lead to RMB-denominated funds taking a more major role in sensitive sectors including semiconductor and artificial intelligence, PitchBook analysts shared in a research note.
