Taiwan-based electronics contract manufacturer Foxconn has partnered the municipal government of Jinan in China to form a RMB3.75bn ($545m) fund aimed at the semiconductor sector, China Money Network reported on Friday.
Foxconn has committed to setting up five integrated circuit design companies and one high-performance chip developer in Jinan, all which are expected to benefit from the fund.
The corporate has also spun off its existing semiconductor projects into a new, as yet unnamed company that will manage four existing chip-focused subsidiaries of Foxconn: Fitipower Integrated Technology, Foxsemicon Integrated Technology, ShunSin Technology Holdings and Socle Technology.
Sharp, the consumer electronics product maker acquired by Foxconn in 2016, will reportedly also offer its chip production services to the joint venture, though further details of that deal have not emerged.
Foxconn is already an active investor in startups and its portfolio includes electric vehicle developer Future Mobility, bicycle sharing service Mobike and ride hailing platform Didi Chuxing. It launched a $1.5bn investment fund with venture capital group IDG Capital last month.
