China Resources Microelectronics plans to establish a joint venture with the National Big Fund Phase II and others

On June 7, China Resources Microelectronics issued an announcement on overseas investment and related transactions.

According to the disclosure, in order to achieve the company's strategic goals and make a prudent decision based on long-term interests, by optimizing the industrial layout and moderately expanding the scale of power semiconductor production capacity, enhancing the company's market competitive advantage, further enhancing the core competitiveness of the company's products, thereby enhancing the company's sustainable development capabilities, and further establishing the company's leading position in the domestic power semiconductor field, China Resources Microelectronics Holdings Co., Ltd. (hereinafter referred to as "China Resources Holdings"), a wholly-owned subsidiary of China Resources Microelectronics, plans to sign the "Investment Agreement of Runxi Microelectronics (Chongqing) Co., Ltd." (hereinafter referred to as "this Agreement") with the National Integrated Circuit Industry Investment Fund II Co., Ltd. (hereinafter referred to as "Big Fund II") and Chongqing Xiyong Microelectronics Industrial Park Development Co., Ltd. (hereinafter referred to as "Chongqing Xiyong"), and initiate the establishment of Runxi Microelectronics (Chongqing) Co., Ltd. (tentative name) (hereinafter referred to as "Project Company"), with a registered capital of RMB 5 billion. The project company will invest in the construction of a 12-inch power semiconductor wafer production line project, with a planned investment of RMB 7.55 billion. Among them, China Resources Holdings will invest RMB 950 million in its own funds, which will account for 19% of the registered capital of the project company after the investment is completed.

After the completion of the 12-inch power semiconductor wafer production line project, it is expected to have a monthly production capacity of 30,000 12-inch mid-to-high-end power semiconductor wafers, and will also build supporting 12-inch epitaxial and thin-film process capabilities.

Huarun Microelectronics stated that this outbound investment and related-party transaction is a prudent decision made by the company to achieve its strategic goals and based on long-term interests. By optimizing the industrial layout and appropriately expanding the scale of power semiconductor production capacity, the company's market competitive advantage will be enhanced, and the core competitiveness of the company's products will be further enhanced, thereby enhancing the company's sustainable development capabilities and further establishing the company's leading position in the domestic power semiconductor field. This outbound investment and related-party transaction will not have a significant impact on the company's financial status and operating conditions in the short term, nor will it damage the interests of the listed company and all shareholders, especially small and medium-sized shareholders.