Contemporary Amperex Technology (CATL), the world’s largest maker of electric vehicle batteries, has partnered with semiconductor developer Unigroup Guoxin Microelectronics to form a new automotive chip firm in Beijing.
CATL-owned Wending Investment, Guoxin Micro subsidiary Tongxin Micro and five affiliates have agreed to establish Tongxin Micro Technology with a registered capital of 300 million yuan (US$43 million), according to a Thursday filing to the Shenzhen Stock Exchange.
With its 153 million yuan investment, Tongxin Micro holds a controlling 51 per cent stake in the new firm, while Wending Investment’s 15 million yuan outlay gave it a 5 per cent shareholding, according to the filing.
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Four employee stock platforms under state-owned Tsinghua Unigroup have a combined 24 per cent stake.
The newly formed entity was set to acquire the automotive domain controller chip business from Tongxin Micro for 193 million yuan. Based on the asset’s book value, that price represented an appraised appreciation rate of 3,723 per cent.
According to Guoxin Micro, a company with roots in China’s prestigious Tsinghua University, having CATL as a partner would help deepen strategic ties with the new firm’s target customers.
The automotive domain controller chip business would require significant capital investment and a long investment cycle, Guoxin Micro said in its filing. “By introducing external investors, the company will only bear losses in proportion to its equity stake.”
The logo of Guoxin Micro at its headquarters in Tangshan, a city in northern Hebei province. Photo: Sina alt=The logo of Guoxin Micro at its headquarters in Tangshan, a city in northern Hebei province. Photo: Sina>
The move to establish a new Chinese automotive chip firm marked CATL’s latest expansion initiative.
CATL’s other strategic semiconductor investments included artificial intelligence chip developer Horizon Robotics, Shanghai-based start-up SmartLogic and power semiconductor firm Silicon Magic in Hangzhou.
This year, the company has also been involved in building pure electric vessels that would sail the oceans in three years; a collaboration with BYD on battery technology and electrification at the operations of Australian mining giant BHP; and a partnership with Sinopec Group and EV assembler Nio to ramp up construction of battery-swapping stations across the mainland.
