Oriza Hua, the integrated circuit (IC) industry investment platform of state-owned Oriza Holding, has held the first close of its debut merger and acquisition (M&A) fund at 1.2 billion yuan ($163.7 million).
Oriza Hua has so far roped in its parent Oriza Holding; state-owned Anhui Provincial Emerging Industry Investment; as well as several listed Chinese firms, including electronic design automation Empyrean Technology, analog and mixed-signal IC design firm Bright Power Semiconductor, and IC product maker Guangzhou Anyka Microelectronics among its list of cornerstone investors, the firm told local news outlet Pedaily.
The maiden M&A fund is expected to hit the final close in Q2, with a final target size of at least 2 billion yuan ($272.8 million), per the report.
The fund expects to tap into foreign businesses’ divestiture of China-based semiconductor-related assets, besides targeting horizontal and vertical integration opportunities within the semiconductor sector, or even cross-sectoral M&As.
Oriza Hua also aims to hit the first close of its private equity and venture capital funds in the first quarter this year. The two new funds will be sized at around 1-2 billion yuan ($136-273 million).
Set up in 2014, Oriza Hua targets opportunities across the whole IC industry supply chain, with an accumulated asset under management of over 10 billion yuan ($1.4 billion). The firm has since invested in over 200 semiconductor and other hard tech companies, with 49 being publicly listed.
