By Gabby Chen

China's ODM giant Wingtech (闻泰科技) announced purchasing from its related subsidiary Wingskysemi (鼎泰匠芯) wafers with a contract value of RMB6.8 billion ($970 million) on December 10.

This transaction mainly involves wafers for the development and manufacturing of 12-inch power discrete and power IC.

The production should be undertaken by a 12-inch power semiconductor automated wafer factory, which would cost huge capital. Therefore, Wingtech decided to make its controlling shareholder Wentianxia (闻天下) invest in the construction first to avoid the investment risks and protect the interests of shareholders. The management and operation party would be Wingskysemi, a subsidiary of Wentianxia.

Founded in 2020, the Shanghai-based fab Wingskysemi is China's first 12-inch automotive-grade semiconductor factory and mainly provides power discrete, power IC, and analog logic products.