A state-owned investor in Jinan, China, is selling its entire 22.54% stake in BYD's Jinan Semiconductor unit. The two separate equity transfers have a combined asking price of 1.197 billion yuan, signaling a potential strategic shift in local government investment away from the chip sector.
The sales are being conducted on a local equity exchange. The requirement for the buyer to have strong financial credentials suggests the seller aims for a smooth and credible transaction. This move is seen as part of a broader trend where state-owned capital in China is rationalizing its investments in the semiconductor industry, possibly to reallocate funds to more critical or synergistic projects.
BYD Jinan Semiconductor, established in 2021, is a key production base for BYD Semiconductor, focusing on power devices. The exit of the state investor is not expected to impact BYD Semiconductor's core strategy or expansion plans significantly and could potentially introduce new strategic shareholders.
ICgoodFind : This state exit reflects a maturing semiconductor investment landscape in China, with capital being reallocated to optimize development in core areas.
