At an industrial summit held in Shanghai on April 15, China-based automaker SAIC Motor Corp. announced a CNY6 billion fund dedicated to automotive semiconductor ecosystem, focusing on six sectors of automotive ICs. In addition, the fund will partner with Shanghai Industrial Technology Research Institute (SITRI) to found an automotive semiconductor engineering center.
In the first quarter of 2023, more than six automotive industrial funds have been set up in several Chinese provinces, according to Chinese semiconductor media Ijiwei, with funding size mostly in the range of several billions.
An official from Hengxu Capital, a PE fund under SAIC, noted that the downstream of the global semiconductor industry is generally in the doldrums, and it is expected that overcapacity will be a challenge in the next 1 to 3 years, according to Ijiwei. Amidst the downturn, the official believes that the automotive segment will be one of the few bright spots for the semiconductor industry in the next few years, indicating that Chinese auto industry will be driven by the three major trends of electrification, smartification and the pursuit of autonomy.
The CNY6 billion fund will focus on semiconductor applications in six sectors, including power switch, power management, battery management, smart cockpit, connectivity and sensing.
As of 2022, China remained the biggest EV market in the world, accounting for 64.4% of the global EV market, said DIGITIMES Research. Despite a pandemic-induced slowdown in 2019, Chinese EV market has seen dramatic annual growth since 2020 as a result of subsidies, with an annual growth rate of 158% between 2020-21 and 79% between 2021-22, according to DIGITIMES Research.
