SummitView Capital, a San Francisco-headquartered private equity firm, has launched a ¥10 billion RMB ($1.7 billion; €1.4 billion) fund with the Shanghai government to target the growing semiconductor market in China, according to a statement.
Under the fund’s strategy, SummitView will acquire global semiconductor design companies and help them expand their market share in China, which houses 60 percent of the world’s semiconductor production, according to the firm.
Anchor investors in the vehicle include the Shanghai Science & Technology Investment Corp, Shanghai Jiading Investment Management and Semiconductor Manufacturing International.
Moreover, the firm has signed agreements with China Development Bank, Bank of Shanghai, Shanghai Pudong Development Bank, China Merchant Bank and Bank of China to provide debt financing for operations worth up to ¥30 billion ($5 billion).
SummitView Capital was launched in 2010 and is highly focused on technology companies in China. Since its inception, the firm has been active in the semiconductor industry, investing in many of the major upcoming semiconductor companies in China.
The firm is not the only one looking for large core-technology investments in the Asia Pacific region. In December, private equity firm Silver Lake Partners agreed to invest $1 billion in Singapore-based Avago Technologies, ahead of the company’s intended $6.6 billion takeover of NASDAQ-listed storage chip maker LSI Corporation. It was Silver Lake’s second investment in Avago.