Semiconductor Investment "Harvest" Busy

By the end of October, the two phase of the National IC Industry Investment Fund (hereinafter referred to as "the two phase of the national big fund") was officially landed, with a registered capital of 204 billion 150 million yuan.

The National Grand fund officially entered the field in 2014. The first phase invested more than 70 yuan in the scale of 138 billion 700 million yuan, and invested enterprises to drive about 500 billion yuan in new social financing.

"Semiconductor is an industry that needs continuous investment, including capital investment and experience accumulation. The support of the big fund can bring a more promising future for the industry. A semiconductor business executive told reporters on twenty-first Century economic report.

Domestic policy support, changes in the international situation, 5G commercial curtain and a series of positive results brought about a flourishing investment in semiconductor industry. The first three quarters of 2019 released by the Qing Research Center showed that the number of transactions in the semiconductor and electronic equipment industry in the first nine months of this year was 442, and the transaction amount was 19 billion 905 million yuan.

From the perspective of the development of VC industry, the first time that Silicon Valley was named after the research and production of silicon based semiconductor chips, the relationship between venture capitalists and start-ups began in a company called Fairchild Semiconductor. The investment territory of VC gradually expanded from the initial semiconductor to the Internet and mobile Internet with the development of technology.

The emergence of China's VC industry was in 1990s, making Baidu people invest in the first World War. Baidu, Ctrip, NetEase, and Internet companies are becoming famous. After the investment boom of PC Internet and mobile Internet, China's VC investment has turned to a more scientific and technological field, including intelligent manufacturing, semiconductor chips, artificial intelligence, enterprise services, biomedicine and so on.

"Technology investment requires patient capital. The runway is wide enough and long enough, so long as you keep your breath, you will get a good return. Deng Fengru, founder and managing director of Aurora ventures, said.

Widening capital access

Not only is the amount of investment and financing taken into consideration, but according to the data of IPO, only 6 companies in the first 25 companies listed in the first 6 companies are listed in the science and technology board market which opened for more than a hundred days. In the first week of October 21st, the semiconductor related enterprises including Xinyuan, Amethyst storage, Walter gas, Hua Runwei and other semiconductor companies have been meeting.

According to the data of the Qing Research Center, there were 26 Chinese semiconductor companies and electronic equipment listed in the domestic and foreign capital markets in the first three quarters, and the semiconductor and electronic equipment overtook finance, and the machinery manufacturing industry also won the title of "the most concentrated IPO industry in the first three quarters".

The science and technology board has opened a new fundraising channel for semiconductor enterprises, and has also injected new vitality into PE/VC's withdrawal from the market.

Chen Datong, managing partner of the yuan Wo Pu Hua and chairman of the board of investment, said that China's semiconductor industry has entered the high-speed development period jointly promoted by the government and the market since 2014, and the IC industry is ushering in the "golden ten years".

The booming market attracts more new funds. In October 31st, the signing ceremony of the Qingdao core industry fund project was held at Qingdao Fuxin Hotel. The total scale of the fund was 50 billion yuan, the first phase was 10 billion yuan, with a focus on the optoelectronics and semiconductor industries.

Hard technology greet spring

In October this year, at the annual meeting of Da Chen investment, Wang Chengao, director of science and technology products of Rui Xi, recalls that when the news of the science and technology board was launched, there were many investment institutions carrying the materials of the "Chuang Chuang board rules" to communicate with each other.

Ruixi technology is a research and development manufacturer of optoelectronic chips. Wang Chen Chai said that in the past, some core technology companies had no choice to go to the main board or gem because of ownership structure or other reasons, so they had to choose to go abroad or Hongkong. "This has become a bottleneck at that time. The emergence of "Chuang Chuang board" is at the right time, providing a new way for domestic entrepreneurship and innovation.

In 2018, Da Chen financial intelligence invested in Rui Xi technology, Rui Shi Chuang Xin and other semiconductor enterprises, becoming the early investors of two enterprises. Liu Zhou, founding partner and chairman of Da Chen financial intelligence, believes that the board of science and technology has opened up the spring of hard technology investment. Independent control and import substitution will become the main theme of equity investment in the future.

Judging from the overall investment trend, in the first three quarters of this year, VC investment institutions continued to overweight hard technology, IT and semiconductor and electronic equipment industry significantly increased investment activity, PE institutions in semiconductor and machinery manufacturing investment breakthrough, including semiconductor and electronic equipment in the PE stage financing total more than 10 billion yuan.

"China has become the main consumer market of the global integrated circuit and has formed a relatively complete ecological chain of the electronic industry. 5G, Internet of things, artificial intelligence, new energy vehicles and other emerging industries are being nurtured." Chen Datong analysis.