Chinese memory chipmaker YMTC is transferring control of its foundry unit, Wuhan Xinxin Semiconductor Manufacturing Co. Ltd., to a state-backed investment platform. This move is part of YMTC's strategy to streamline operations before a planned domestic listing.
This restructuring is a key step for YMTC as it aims for a major domestic IPO, potentially signaling a shift in control of critical semiconductor manufacturing assets within China's state-backed industrial strategy.
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.
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