Key facts
- YMTC is transferring control of its foundry unit, Wuhan Xinxin Semiconductor Manufacturing Co. Ltd., to a state-backed fund.
- The Chinese memory chipmaker will sell its 39% stake in the foundry unit.
- The buyer is Wuhan Optics Valley Semiconductor Industry Investment Co., a local state-owned investment platform.
- This transaction will reduce YMTC's holding from 68.2% to 47.9%.
Chinese memory chipmaker Yangtze Memory Technologies Co. (YMTC) is set to cede control of its foundry unit, Wuhan Xinxin Semiconductor Manufacturing Co. Ltd., to a state-backed fund. This strategic move is intended to streamline operations as YMTC prepares for a significant domestic listing.
According to a regulatory filing, YMTC plans to divest its 39% stake in Wuhan Xinxin Semiconductor Manufacturing Co. Ltd. to Wuhan Optics Valley Semiconductor Industry Investment Co., a local state-owned investment platform. This transaction will reduce YMTC's ownership from its current 68.2% and place control of the foundry unit with the state-backed buyer, which will manage a 47.9% stake alongside its associated parties.