By Li Panpan

(JW Insights) Aug 16 -- China's leading foundry and IDM CR Micro's subsidiary Runpeng Semiconductor (润鹏半导体) planned to increase capital and introduce external investors such as China's state-owned Big Fund II, announced the company on August 15.

The total amount of funds intended to be raised is RMB12.6 billion ($1.73 billion). After the completion of this transaction, Runpeng Semiconductor's registered capital will increase from RMB2.4 billion ($329.18 million) to RMB15 billion ($2.06 billion). CR Micro plans to increase investment by RMB2.575 billion ($353.18 million) this time and to decrease its own shareholding ratio to 33%.

China Resources Micro explained that the Shenzhen 12-inch wafer production plant invested in and constructed by Runpeng Semiconductor is progressing normally, and recruitment of staff is under way. It needs new capital and external investors to join in the project construction.

Shenzhen-based Runpeng Semiconductor was founded in June 2022 by CR Micro, headquartered in Wuxi of eastern China's Jiangsu Province, and other investors. Its registered capital increased to RMB2.4 billion ($329.18 million) in February 2023.

After the newly intended round of transaction, CR Mirco will have less than half of the seats on the board of directors of Runpeng Semiconductor, which may affect its ultimate control, and the Big Fund II will hold25% of Runpeng's shares.