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 investment fund. This strategic move is designed to streamline operations as YMTC prepares for a significant domestic stock market listing.
According to a regulatory filing, YMTC plans to divest its 39% stake in the foundry unit to Wuhan Optics Valley Semiconductor Industry Investment Co., a local state-owned entity. This transaction will reduce YMTC's ownership from its current 68.2% to 29.2%, while the state-backed buyer, along with its associated parties, will manage a combined 47.9% stake, thereby gaining control.
The move signals a consolidation of state influence in key technology sectors within China, as the country aims to bolster its domestic semiconductor capabilities.
