HGC Tech is accelerating the construction of its Global Light Source R&D Center "CO-X" with the fresh funding.
HGC Tech (Chinese: 华引芯) has received CNY 200 million (USD 30.52 million) in Series B2 funding round, led by Hongtai Aplus Fund, with continued follow-on investment from its existing shareholder Guozhong Venture Capital.
So far, HGC Tech has completed six rounds of funding for a cumulative hundreds of millions of CNY from investors such as Guozhong Venture Capital, Ttgg Asset and Degui Capital.
The recent round of financing will be used to establish HGC Tech's global light source research center "C O-X", hire global talent steeped in semiconductor light source, and continue the R&D and production of heterogeneous light source components.
Founded in 2017, HGC Tech is an innovative high-tech enterprise focusing on the R&D, packaging and testing of high-end light source chips and optical devices. It has a number of core patented technologies.
The company's light source products are widely used in segments including automobile, backlit display, industry- and medicine-grade lighting, consumer health and high-power lighting, VCSEL/IR sensors, and Lidar devices.
Jin Chuan, Vice President of Investment at Hongtai Aplus Fund, said that HGC will enter the high-end market of semiconductor light source in China with new display Mini LED and vehicle-grade lighting.
By backing HGC Tech, Hongtai Aplus Fund has fulfilled its investment strategy focused on technological manufacturing and transition, said Jin.
Similarly, Ma Ruopeng, an investment partner of Guozhong Venture Capital, pointed out that HGC’s technical solutions and products have been recognized and verified by leading industry players.
This is why Guozhong Venture Capital is optimistic about the future development of HGC Tech and has increased its investment in two consecutive rounds, said Ma.
According to data released by China's National Bureau of Statistics, the country's semiconductor integrated circuit (IC) production will reach 359.4 billion units in 2021, a 33.3% increase year on year.
In addition, during the “Two Sessions,” the annual gathering of China’s top legislature and political advisory body, in 2022, the Chinese government highlighted its importance and pledged support for semiconductor technology.
Sun Leimeng, chairman of HGC Tech, said that in the future, HGC Tech will join hands with peers and upstream and downstream material and equipment manufacturers to break the monopoly of the giants.
The firm will also pave the way for indigenously produced high-end semiconductor light sources to replace imports, so as to spur the transformation and upgrading of China's semiconductor light source industry, said Sun..
The competitors of HGC Tech include Shenzhen MTC (002429) (Chinese: 兆驰半导体), Jade Bird Disply (Chinese: 显耀显示) and Shineon (Chinese: 易美芯光).