Xiaomi CEO to help revive Chinese chipmaking industry hit by US sanctions
The capital of the fund he founded is 10 billion yuan ($1.45 billion)
Xiaomi and Kingsoft, headed by renowned Chinese businessman Lei Jun, have invested in a new fund with a capital of $1.45 billion, The Wall Street Journal reports. The initiative is aimed at supporting the Chinese semiconductor industry, which has been affected by US sanctions.
Lei Jun is the founder and chairman of Xiaomi, which is one of the largest smartphone manufacturers in China and the third largest smartphone manufacturer in the world after Apple and Samsung. He is also the co-founder, largest shareholder, and chairman of the board of directors of Kingsoft, a provider of gaming, office, and cloud software.
The new fund, whose name has not been specified, will specialize in investments in semiconductor products and related technologies, according to an official announcement from the Hong Kong Stock Exchange. Mr. Lei is the chairman of the investment decision-making committee of the organization.
The fund's capital is 10 billion yuan ($1.45 billion), of which Xiaomi has invested a third, and another 500 million yuan ($72.3 million) – Kingsoft.
Other investors include organizations backed by the Tianjin and Beijing governments.
The fund said that the investments "will be in line with the national trends of innovative development and industrial transformation."
The investment targets will be semiconductor-related technology companies specializing in artificial intelligence, new materials, smart manufacturing, display technologies, and automotive electronics. Xiaomi is also investing in Chinese technology startups, including chipmakers, through its Xiaomi Ventures division.
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