Jin Yu, a New Brick for the Chinese Semiconductor Stronghold

Author: Ivan Platonov Jan 12, 2020 05:10 PM (GMT+8)

The Shenzhen-based firm grabbed over CNY 100 million (USD 14.45 million) from Harvest Capital on January 10.

Jin Yu Shenzhen factory. Image credit: Jin Yu Semiconductor

Chinese chipmaking startups rarely disclose much private equity funding data. However, some of them, following the country's recent strategy in the financial sphere, have decided to embark upon the path of openness. For Jin Yu Semiconductor (金誉半导体), which has the likes of NXP Semiconductors (NXPI:NASDAQ) on its partner list, this sort of 'confidentiality,' apparently, is not a problem. Led by Harvest Capital (丰年资本), the firm’s Series A has brought it at least CNY 100 million (USD 14.45 million) this time.

Founded in 2011, Jin Yu possesses a 10,000-square-meter factory, producing semiconductor discrete components (or discrete devices), including MOS (Metal-Oxide-Semiconductor) tubes and universal integrated circuits. It also provides testing and packaging services.

The aforementioned are fundamental elements of microelectronic products, widely used across various industry verticals, including consumer electronics, automotive, instruments and tools, automatic control and industrial testing, computing and peripheral equipment, as well as the omnipresent Information and Communications Technology (ICT) sector.

In China, the discrete power devices industry has been growing at a CAGR higher than 10% over the recent years, jumping from nearly CNY 139 billion (USD 20.09 billion) in 2011 to over CNY 267 billion (USD 38.59 billion) in 2018.

The global market is on the upswing as well. According to Statista, it is projected to reach USD 24.87 billion by 2020, spurred by a handful of powerful concepts like the Internet of Things, which is about to be reinforced by the upcoming fifth generation of wireless technology. 

Harvest Capital has recently been active, seeking investment opportunities across various tech-driven industry verticals. Last month, the wealth manager poured hundreds of millions of yuan into database startup Dameng (达梦数据库), adding the software firm to its portfolio. A few weeks before that, it also invested in Jiahong (佳宏新材), a new materials company that was delisted from the Chinese over-the-counter system, National Equities Exchange and Quotations (NEEQ), in August 2019.