Major Fund Invests in Changelight Technology Packaging Giant Sees New Opportunities

Preface:
The second phase of the National Integrated Circuit Industry Investment Fund was officially established in October 2019 with the primary 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 Changxin Technology
Recently, a series of commercial changes occurred at Changxin Technology Automotive Electronics (Shanghai) Co., Ltd.
Following the adjustments, the company added several new shareholders including the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. (National Fund Phase II), Shanghai Integrated Circuit Industry Investment Fund (Phase II) Co., Ltd., and Shanghai State-owned Assets Operation Co., Ltd.
Additionally, the company’s registered capital saw a substantial increase from the original 400 million yuan to 4.8 billion yuan.
Moreover, several new directors and supervisors were added to further optimize the company’s governance structure.
Prior to these changes, the shareholders of Changxin Automotive Electronics Company mainly consisted of Shanghai Xinsheng Industry Private Equity Fund Partnership Enterprise (Limited Partnership) and Changxin Technology Management Co., Ltd., with the former contributing 86 million yuan and the latter 314 million yuan, totaling a registered capital of 4 billion yuan.
Following the changes, the investment amount from Shanghai Xinsheng Industry Private Equity Fund Partnership Enterprise (Limited Partnership) remained unchanged, while the investment from Changxin Technology Management Co., Ltd. significantly increased to 2.64 billion yuan.
In addition, the newly added shareholders included Shanghai State-owned Assets Operation Co., 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 yuan, 240 million yuan, 270 million yuan, and 864 million yuan respectively.
This capital increase stemmed from an announcement made by Changxin Technology on March 17. The announcement stated that Changxin Technology planned to inject 4.5 billion yuan into its wholly-owned subsidiary, Changxin Technology Management Co., Ltd., primarily for the latter’s capital increase in Changxin Technology Automotive Electronics (Shanghai) Co., Ltd., and the acquisition of an 80% stake in Shengdie Semiconductor (Shanghai) Co., Ltd.
Upon completion of the capital increase, Changxin Technology Management Co., Ltd.’s registered capital will increase from 1 billion yuan to 5.5 billion yuan, remaining as a wholly-owned subsidiary of Changxin Technology.
The main purpose of this capital increase is to facilitate Changxin Technology’s establishment of a large-scale professional production base for vehicle-grade chips in the Lingang New Area of Shanghai.
This base will support major domestic and international customers and industry partners, catering to the highly electrified and intelligent trends in new energy vehicles, and establishing a complete local chip product supply chain.
Changxin Technology stated that this capital increase would help enhance the company’s industrial layout, solidify its automotive electronics and storage and computing electronic business, and further expand market development opportunities.
It is worth noting that the entry of the National Fund Phase II not only brought financial support to Changxin Automotive Electronics but also demonstrated the country’s attention and support for the automotive electronics industry.
This move will undoubtedly drive Changxin Technology’s rapid development in the field of automotive electronics, further consolidating and enhancing its competitiveness within the industry.
Automotive Electronics Sector Attracts Capital and Business Interest
Since establishing its Automotive Electronics Business Center in 2021, Changxin Technology’s automotive electronics business has become the fastest-growing sector within the company.
According to market research firm Gartner’s forecast, 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.
Against this backdrop, Changxin Technology’s automotive electronics business has experienced significant growth since its establishment, becoming the most rapidly growing business segment within the company.
In the first three quarters of 2023, Changxin Technology’s revenue in the automotive electronics sector saw a remarkable year-on-year growth of 88%.
Over the past three years, the revenue share from automotive electronics applications has multiplied continuously, while the number of automotive electronics customers has also shown a rapid growth trend.
Looking ahead in the coming years, with the rise of the electrification trend in new energy vehicles, semiconductor innovation based on advanced packaging technology will become a core driver for the continuous development of the entire semiconductor industry chain.
Changxin Technology’s Automotive Chip Product Manufacturing and Testing Production Base in Lingang, Shanghai, covers an area of over 200 acres with a factory building area of approximately 200,000 square meters.
The project officially commenced construction in August 2023 and is expected to be fully completed and put into operation by early 2025.
Once completed, it will become Changxin Technology’s first intelligent “dark factory” production line in China, bringing both productivity and value.
Advanced Packaging Holds Greater Production Value
Changxin Technology has excelled in the field of advanced packaging, renowned in the industry for holding the third-largest global market share and leading the domestic market with various 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 other five major solutions, fully meeting diverse packaging needs from simple chips to high-performance computing.
Noteworthy is Changxin Technology’s mastery of advanced packaging technologies such as Through-Silicon Vias (TSV) and Redistribution Layers (RDL), alongside the successful development of the XDFOI high-performance packaging technology platform. This platform can flexibly address complex packaging requirements like 2D, 2.5D, 3D, Chiplet, and High-Bandwidth Memory (HBM).
In terms of Chiplet packaging and RDL technology, Changxin Technology has demonstrated significant technological advantages, leading domestic peers like Tongfu Microelectronics and Huatian Technology.
These technological advantages have not only earned Changxin Technology a wide market share but also provided strong support for the vigorous development of the domestic chip industry.
Changxin Technology’s innovative strides in packaging technology never cease, with its Chiplet packaging node successfully breaking through to 4nm, reaching a leading position in the industry.
Moreover, the company has made significant progress in RDL technology, achieving 5-layer wiring technology, in sync with global leading enterprises like Taiwan Semiconductor Manufacturing Company (TSMC), only slightly behind TSMC’s 6-layer wiring technology.
This achievement fully showcases Changxin Technology’s leading position in global packaging technology and its role as a prominent player in domestic packaging technology.
With the implementation of the National Fund Phase III, the field of advanced packaging and storage chips holds broad prospects for development.
As a leading packaging enterprise in China, Changxin Technology demonstrates strong competitiveness in both of these fields.
As industry demand gradually recovers and the company deepens its presence in the storage chip sector, Changxin Technology’s performance is expected to achieve sustained growth.
This positive development has attracted the attention and holdings of nearly 700 institutions, reflecting the market’s high recognition and expectations for Changxin Technology’s future development.
National Fund Prioritizes Development of Domestic Semiconductor Industry
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 the legal representative and a registered capital of 204.15 billion yuan.
The company’s shareholder structure consists of 27 shareholders including 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 Holdings Group Co., Ltd., among others.
As a successor to the first fund, the National Fund Phase II raised a total of around 204.2 billion yuan, leveraging close to 600 billion yuan in social capital, highlighting its significant role in promoting the development of the integrated circuit industry.
In the investment field, the National Fund Phase II has shown a more extensive coverage, spanning wafer manufacturing, integrated circuit design tools, chip design, packaging testing, equipment, components, materials, and applications, among other crucial areas.
Compared to the first fund, the National Fund Phase II has a stronger focus on the upstream areas of semiconductor equipment and materials, particularly in key equipment such as etching machines, thin film equipment, testing equipment, cleaning equipment, and essential materials like large silicon wafers, photoresists, masks, and electronic specialty gases. This strategic emphasis aims to drive the continuous and healthy development of the domestic integrated circuit industry.
Conclusion:
The capital injection into Changxin Automotive Electronics is a crucial aspect of the strategic layout of the National Fund Phase II.
The active participation of the National Fund Phase II not only provides abundant financial support to Changxin Automotive Electronics but also endows it with significant advantages in the market and resource integration.
Especially in the field of new energy vehicles, with the continuous growth in market demand, the need for high-performance vehicle-grade chips will continue to rise.
Changxin Automotive Electronics is poised to leverage this opportunity to further strengthen and enhance its competitiveness and influence in both domestic and international markets, laying a solid foundation for future development.
References: Chip Rankings: “National Fund Invests in Changxin Technology,” SoC Chips: “Changxin Technology Automotive Electronics Receives 48 Billion Capital Increase: Analyzing the Strategic Layout of the National Fund,” Theme Exploration Dao: “Huawei Supplier, Changxin Technology with the Largest Market Share, Why is it the Leading Dragon of Domestic Chips?” Yajiang: “Changxin Technology in Packaging and Testing,” Tiger Talks Chips: “Leading Packaging and Testing Company Changxin Technology (JCET): Introduction to Packaging Testing Product Line,” Morning Watch M&A: “117 Billion! Trillion State-owned Enterprise Strongly Acquires Changxin Technology.”