Guosheng Investment acquires a 12.99% stake in Fudan Microelectronics for 5.144 billion yuan, becoming the largest shareholder and aiming to bolster the semiconductor company's growth and innovation capabilities.

Information on the Target

Fudan Microelectronics Group Co., Ltd. (stock code: 688385) is a pioneering company in the semiconductor industry in China, specializing in integrated circuit design, development, and production. Established in July 1998, it officially went public in Hong Kong in the year 2000 and later transitioned to the main board in 2014. In 2021, the company was listed on the Shanghai Stock Exchange's Science and Technology Innovation Board, forming a dual listing structure (A+H shares). Fudan Microelectronics develops a wide range of products, including security and identification chips, non-volatile memory, smart meter chips, and Field Programmable Gate Array (FPGA) technology, catering to numerous sectors such as finance, social security, automotive electronics, and more.

Recently, Fudan Microelectronics announced the completion of a share transfer agreement, wherein Ruixin Fangao, the previous major shareholder, sold 12.99% of the company's shares (107 million A-shares) to Guosheng Investment for 5.144 billion yuan (approximately $790 million). This transaction positions Guosheng Investment as the largest shareholder of Fudan Microelectronics, while ensuring that the company continues to function without a controlling shareholder or actual controller.

Industry Overview in China

The semiconductor industry in China has seen significant growth over the last decade, driven by substantial government support and increasing domestic demand for advanced electronic products. The Chinese government has implemented various policies aimed at boost