Monday, 25 September 2017

ZTE receives CNY2.4bn funding in subsidiary

ZTE
Tuesday 24 November 15

ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the mobile internet, announced that its ZTE Microelectronics Technology Company Ltd. subsidiary had agreed to a proposed RMB 2.4 billion (USD 376 million) investment by the National Integrated Circuit Industry Investment Fund Corporation…

ZTE Corporation, a major international provider of telecommunications, enterprise and consumer technology solutions for the mobile internet, announced that its ZTE Microelectronics Technology Company Ltd. subsidiary had agreed to a proposed RMB 2.4 billion (USD 376 million) investment by the National Integrated Circuit Industry Investment Fund Corporation.

Under the agreement, the National Integrated Circuit Industry Investment Fund will acquire 24 percent of the enlarged shareholding of ZTE Microelectronics. The new investment will enhance ZTE Microelectronics’ research and development capabilities, and strengthen its offerings in advanced semiconductor technologies, as well as broadening its marketing and distribution channels in China and international markets.

ZTE Microelectronics focuses on the development of semiconductor technologies for applications including telecommunications, mobile devices, Big Data, cloud computing, Internet of Things and wearables. With more than 2,000 research and development (R&D) employees in offices in China and the United States, ZTE Microelectronics is currently developing products with 28 nanometer technologies, and also possesses R&D capabilities for 16 nanometer and 14 nanometer technologies.

Chipsets developed by ZTE Microelectronics are currently deployed commercially in base stations to support multi-frequency band wireless access, as well as optical networking units (ONUs). In addition, ZTE Microelectronics also develops products used in smartphones and mobile devices shipped in markets including China, Brazil, Indonesia and Russia, supporting long term evolution (LTE) advanced standards and multimode operations.

In 2014, ZTE Microelectronics increased its net profit by 258 percent to RMB 458.6 million, with revenue growing to RMB 3.06 billion.

The National Integrated Circuit Industry Investment Fund, with shareholders including China’s Ministry of Finance, China Development Bank and China Mobile Communications Corporation, has numerous investments in developers of semiconductor technologies, an area of national strategic interest to the Chinese government.


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