SJ Semiconductor, (SJSemi) a China-based outsourcing services provider for semiconductor technology, will receive $280m in a funding round backed by an unnamed subsidiary of wireless technology company Qualcomm.
Semiconductor foundry Semiconductor Manufacturing International (Smic), and corporate-backed China Integrated Circuit Industry Investment Fund have also signed the letter of intent.
SJSemi was founded in August 2014 as a joint-venture between Smic and its peer Jiangsu Changjiang Electronics Technology. The company offers outsourced assembly and testing services for wafer bumping.
The investment will enable SJSemi to expand its manufacturing capabilities and increase its production scale. The company expects to begin mass production by early 2016.
The China Integrated Circuit Industry Investment Fund has been backed by telecoms equipment manufacturers China Electronics and Datang Telecom; telecoms firms China Telecom amd China Unicom; as well as Wuhan Economic Development Investment, SummitView Capital and Cybernaut.
Dong Cui, chief executive of SJSemi, said: “This round of investment, if completed, will help expand our production capacity and accelerate the construction progress while demonstrating the strong confidence our investors have in the future of SJSemi.”