TCL Zhonghuan plans to invest 7.7 billion yuan to acquire Xinxin Semiconductor.

According to a notice released by TCL Zhonghuan, as reported by the Big Semiconductor Industry Network, its controlling subsidiary, Zhonghuan Leading Semiconductor Materials Co., Ltd., plans to acquire 100% equity of Xinxin Semiconductor Technology Co., Ltd. through an increase in registered capital.

The announcement shows that Zhonghuan Leading has newly subscribed to a registered capital of RMB 48.75 million. Xinxin Semiconductor’s shareholders have contributed their 100% equity interest in the target company as capital contribution to subscribe for Zhonghuan Leading’s newly added registered capital. The transaction consideration amounts to RMB 77,569.83 million. Upon completion of the transaction, Xinxin Semiconductor’s shareholders will collectively hold a 32.50% stake in Zhonghuan Leading. Following this transaction, Xinxin Semiconductor will become a wholly-owned subsidiary of Zhonghuan Leading and will be included in Zhonghuan Leading’s consolidated financial statements; meanwhile, Zhonghuan Leading will remain within TCL Zhonghuan’s consolidated financial statements.

It is reported that TCL Zhonghuan stated that this acquisition is based on the company’s strategic goals and plans for the semiconductor industry. The aim is to accelerate the increase in market share by leveraging the complementary strengths of both parties in terms of resources, products, and markets. This will be achieved through expanding production capacity, upgrading product structures, enhancing R&D capabilities, and strengthening the company’s competitive edge in the semiconductor silicon wafer manufacturing sector.

Key words: