Linxin Investment led the completion of Zhongxin Wafer's "mixed reform" and capital increase of nearly 4 billion yuan

Recently, Shanghai Linxin Investment Management Co., Ltd. ("Linxin Investment"), as the lead investor, formed a Chinese buyer group with Juntong Capital, Xiamen Jianfa, Hangzhou Guogai and other institutions, and achieved a perfect conclusion of the "mixed reform" and expansion and capital increase round of investment in Hangzhou Zhongxin Wafer Semiconductor Co., Ltd. ("Zhongxin Wafer"), with a transaction amount of nearly RMB 4 billion. From the early July when the cooperation intention was reached to the completion of the project, the project took only four months, more than two months ahead of schedule.

Zhongxin Wafer was established in 2017. It was formed by the integration of the semiconductor silicon wafer business within Japan Magnetic Technology Holdings Co., Ltd. ("Japan Magnetic Holdings"), with nearly 20 years of experience in silicon wafer manufacturing. It is mainly engaged in the research and development and production of high-quality semiconductor silicon wafer materials for integrated circuits. It has 3 8-inch and 2 12-inch semiconductor silicon wafer production lines. Among them, the 8-inch production line is currently the largest and most technologically mature production line in China, and the 12-inch production line is the first production line in my country with core technology that can truly achieve mass production.

In terms of production capacity, Zhongxin Wafer has currently formed an integrated monocrystalline silicon wafer manufacturing industry structure with three factories in Hangzhou, Shanghai and Yinchuan. The production capacity of 6-inch and 8-inch semiconductor silicon wafers exceeds 400,000 pieces/month, and the production capacity of 12-inch semiconductor silicon wafers is planned to be expanded to more than 200,000 pieces/month.

As a local wafer manufacturing company, Zhongxin Wafer has a complete single crystal silicon substrate material preparation process and production line and rich experience in mass production. Its core technical team mainly consists of overseas engineers and technicians with rich experience. In addition, with the support of single crystal pulling equipment and quartz crucible consumables of Japan Magnetic Holdings Group, it has inherent technical and basic advantages.

On November 5, He Xianhan, President of Japan Magnetics Holdings and Chairman of Zhongxin Wafer, said at the project celebration banquet: "In June this year, we hit it off with Linxin Investment. With everyone's efforts, we completed the project mixed ownership reform and expansion and capital increase more than two months ahead of schedule. Here, I would like to express my sincere gratitude to Linxin Investment."

When talking about the development of the semiconductor industry, He Xianhan also pointed out that to do manufacturing, you must be down-to-earth, not afraid of hard work, and do what you should do day after day. In addition, professional things should be handed over to professional teams. Zhongxin Wafer will do a good job in the research and development and production of silicon wafers, and Linxin Investment will be responsible for the capital market operations such as project mixed ownership reform and expansion and capital increase, which will be conducive to the healthy growth of the project.

Li Yajun, Chairman of Linxin Investment, pointed out that as a well-known integrated circuit industry investment platform in China, Linxin Investment has been committed to promoting the healthy and sustainable development of the upstream and downstream of the semiconductor industry chain; the Zhongxin Wafer Project is another milestone M&A project of the Linxin Investment team after Lanqi Technology, and is an important part of Linxin Investment's layout of the upstream of the semiconductor industry chain. Linxin Investment will give full play to its own industrial background advantages to help Zhongxin Wafer become a leading semiconductor silicon wafer company. At the same time, Linxin Investment and Yamato Group will have many win-win cooperation points in the future. The Zhongxin Wafer Project has made a good start. I believe that the cooperation on other projects between the two sides in the future will be more unstoppable and successful.

About Japan Magnetics Holdings

Japan Magnetics Holdings is a Japanese JASDAQ listed company established in 1980. The group's businesses include semiconductor manufacturing materials, equipment, precision components, advanced magnetic fluid materials, thermoelectric temperature control modules, power chip ceramic substrates, photovoltaic related materials and other products. In addition to being used in the field of semiconductor manufacturing, the products are also widely used in automotive electronics, biomedicine, communications and electric power energy industries. Japan Magnetics Holdings Group has businesses all over the world and entered my country in 1992, investing in and building factories in Shanghai, Hangzhou, Yinchuan and other places. Currently, the group's main businesses and assets are in my country, among which Zhongxin Wafer is one of its subsidiaries that produces wafers in my country. 

About Linxin Investment

Linxin Investment was established in Shanghai Lingang in May 2015. It is one of the earliest investment institutions in China to carry out overseas mergers and acquisitions in the field of integrated circuits, with an asset management scale of over 20 billion yuan. Its investment team has successively initiated and led the most famous domestic merger and acquisition projects such as Montage Technology and OmniVision Technologies. The key investments in Montage Technology (688008) and AMEC (688012) became the first batch of integrated circuit companies listed on the Science and Technology Innovation Board in July 2019, and both exceeded 100 billion market value. Linxin Investment was awarded the top 50 private equity investment institutions in China in 2019 and 2020 by Zero2IPO, and the top 10 investment institutions in the semiconductor field in China in 2019 and 2020 by Zero2IPO. It ranked in the top 10 investment returns of ChinaVenture Private Equity Fund in 2019, and has become a top investment institution in the field of semiconductor investment in China.