[News] China’s Big Fund Phase II Established a New Company in Xiamen

According to Qichacha, the National Integrated Circuit Industry Investment Fund Phase II Co., Ltd. (commonly referred to as “Big Fund Phase II”) has established a wholly owned subsidiary in Xiamen: Xiamen Yuanxinlan Industrial Investment Co., Ltd. The company has a registered capital of RMB 50 million and its business scope includes equity investment with self-owned funds, asset management services related to its investments, integrated circuit sales, and IC design, among others.

Industry insiders suggest that, the launch of this new investment company may exert a significant impact on the development of the integrated circuit industry in Xiamen and the broader southeastern coastal economic zone of China. Compared to the first phase, Big Fund Phase II has a more targeted investment strategy, focusing on “strengthening and filling gaps in the supply chain.” This includes reinforcing weak links in the upstream segment, particularly in semiconductor equipment, materials, advanced and specialized manufacturing processes. The fund also emphasizes innovation in chip design, market expansion, and coordinated development of regional industrial clusters.

Xiamen has been identified as a key city for China’s national IC industry layout, benefited from a strong cluster effect. It has formed three major industrial hubs centered around Torch High-Tech Zone, Haicang Taiwanese Investment Zone, and the Huli Free Trade Zone. These areas have successfully attracted numerous upstream and downstream players including Tongfu Microelectronics and Silan Microelectronics.

Of note, the Xiamen Cross-Strait Integrated Circuit Industrial Park now hosts around 200 enterprises, particularly in the third phase of the Software Park in the High-Tech Zone, in which a complete IC industry chain has taken shape — spanning chip design, manufacturing, equipment, materials, and packaging/testing. Notably, the newly established company is also located in this park.

Specifically, Xiamen’s chip design sector includes over 100 companies such as SigmaStar, ilitek, and UNISOC, which continue to launch products with proprietary IP.

In chip manufacturing field, Xiamen is home to companies including United Semiconductor (Xiamen), San’an IC, and Epiworld. United Semiconductor operates one of China’s leading 12-inch fabs with high yield on 28nm processes, while San’an IC is the largest GaAs RF chip provider across the nation, making notable strides in wide bandgap semiconductor sector.

Key manufacturing equipment is supported by players like PDMC, Xintianhong, and AMEC. In packaging and testing field, companies like RFID, Top Bumping, and Szdosense have formed an ecosystem centered on specialized process technologies, successfully attracting major players like Tongfu Microelectronics, Silan Microelectronics, and AKM Meadville.

Guided by strong policies, Xiamen has seen a raft of major IC projects set up and promote construction at a faster pace, with notable breakthroughs in wide bandgap semiconductor, advanced packaging, and high-performance computing fields.

Since 2024, Big Fund Phase II has been revved up investment in semiconductor equipment and component companies, including Shanghai Precision Measurement, Maxscend, Zoanrel, and Genori. Maxscend, founded in 2017, focuses on providing optical measurement and defect inspection solutions for compound semiconductors, optoelectronics, and the IC industry.

(Photo credit: San’an IC)