Nexchip Semiconductor Corporation (688249.SH) plans to bring in outside investors to collectively increase the capital of its subsidiary Wanxin Integrated by 9.55 billion yuan to expand its automotive chip product line.

Nexchip Semiconductor Corporation (688249.SH) announced that the company plans to introduce external investors such as Agricultural Bank Financial Asset Investment Co., Ltd. (referred to as "Agricultural Bank Investment") and Gofinance Capital Investment (Beijing) Emerging Industry Equity Investment Fund Partnership Enterprise (Limited Partnership) (referred to as "Gofinance Capital") to jointly increase the capital of its wholly-owned subsidiary Hefei Wanxin Integrated Circuit Co., Ltd. (referred to as "Wanxin Integrated") by a total of 9.55 billion yuan in currency. Among them, Nexchip Semiconductor Corporation plans to contribute 415 million yuan to subscribe for a registered capital of 414.502596 million yuan, while external investors such as Agricultural Bank Investment plan to jointly contribute 540 million yuan to subscribe for a registered capital of 539.3527767 million yuan. In addition to Agricultural Bank Investment and Gofinance Capital, other external investors will negotiate and determine the final investment subject and amount after their internal approval processes and progress are completed. After this capital increase, Wanxin Integrated's registered capital will increase from 50 million and 100,000 yuan to 9588.553836 million yuan. In this capital increase, the company will relinquish a portion of its preemptive rights, and its equity stake in Wanxin Integrated will decrease to 43.7504%. After the capital increase, the company will remain the largest shareholder of Wanxin Integrated, and the directors nominated by the company will account for over half of the board seats of Wanxin Integrated. The company will still have control over Wanxin Integrated and this will not result in any changes to the company's consolidated financial statements scope. Wanxin Integrated was established in December 2022 as a wholly-owned subsidiary of the company and is the main entity for Nexchip Semiconductor Corporation's Phase III project. The total investment of Nexchip Semiconductor Corporation's Phase III project is 21 billion yuan, aiming to build a 12-inch wafer manufacturing production line with a capacity of approximately 50,000 pieces per month. The project will focus on 55-28 nanometer display driver chips, 55-nanometer CMOS image sensor chips, 90-nanometer power management chips, 110-nanometer microcontroller chips, and 28-nanometer logic chips for applications in consumer electronics, automotive electronics, and industrial control markets. This capital increase aligns with the actual operations and future development needs of the company and Wanxin Integrated, enhancing the capital strength of Wanxin Integrated and accelerating the company's expansion of automotive chip special process technology product lines to improve market competitiveness and long-term development plan. The synergy between the company and Wanxin Integrated's production capacities will form an industry aggregation effect, reduce operating costs, and enable the company to quickly adjust production plans in response to market demand, improving adaptability to market changes.