Geely steps up its presence in auto chips with new joint venture through subsidiary
The global chip shortage has opened up opportunities for Chinese companies, as more and more local companies are stepping up their chip investments.
A wholly-owned subsidiary of Chinese automaker Geely recently set up a semiconductor company with registered capital of RMB 400 million ($62 million) with two other companies, according to data provider Qichacha.
The company, named Guangdong Xinyueneng Semiconductor Co Ltd, has a business scope that includes integrated circuit design, integrated circuit manufacturing, integrated circuit chip and product manufacturing, and integrated circuit chip and product sales.
Geely's subsidiary holds a 40 percent stake in the company, with its two other partners holding the remaining 60 percent.
Prior to this, Geely had already started investing in the semiconductor industry.
Established on May 6, 2021, Suzhou Guangzhiju Optoelectronics Technology Co Ltd is a company focused on integrated circuit chip design and services, and its legal representative is also the CEO of Geely's subsidiary ECARX.
At the end of last year, Wuhan Lotus Technology Co Ltd was established, which also focuses on IC chip design and services. Its legal representative is Feng Qingfeng, the current vice president of Geely and CEO of Lotus Cars, a sports and racing car manufacturer.