By Li Panpan

(JW Insights) Feb 15 -- Chinese chip design company UNISOC seeks to raise no more than RMB15 billion ($2.19 billion) in a new funding round to further expand its business in emerging fields such as automotive electronics and smart display, learned JW Insights from the news website China Star Market on February 14.

A source familiar with the matter said that the company aims to reach a shortlist of investors from mid-to-late March to June and close the round by the middle of June. Many organizations are already carrying out background investigations, but no agreement has been reached, according to the China Star Market report.

In its February 8 performance statement, UNISOC said it had revenue of RMB14 billion ($2.05 billion) in 2022, an increase of 20% against a market downturn.

Jia Shaoxu, its board secretary, said on February 14 in a Reuters report that the company would launch a new round of financing to enhance its technology and product competitiveness.

A market estimate shows that if UNISOC could successfully land on the STAR Market of the Shanghai Stock Exchange, its market value may exceed RMB200 billion ($29.22 billion).

Based in Shanghai, UNISIC competes against Qualcomm, MediaTek, and Samsung Electronics in mobile processors for smartphones, as well as simpler chips for Internet-connected devices.

UNISOC sells to 133 countries, according to its website. Although its sales are low compared with its rivals, the company's global market share for mobile processors increased to roughly 10% by 2022, according to Counterpoint Research.

UNISOC is controlled by private equity firm Wise Road Capital, which took over the company in 2022 after Tsinghua Unigroup, its former parent company, went bankrupt.

In addition to Wise Road, the company's shareholders also include China's state-backed investment fund for chips (known as "the Big Fund"), which has a 13% stake in the firm, as well as Intel Capital, which retains an 11% stake in the company via an investment from 2014, reported Reuters.