Beijing YanDong MicroElectronic (688172.SH) plans to invest 20 billion yuan in the construction of a 12-inch integrated circuit production line in cooperation with Yizhuang Guotou.

Beijing YanDong MicroElectronic (688172.SH) announced that the company plans to increase the capital of its wholly-owned subsidiary, Beijing YanDong MicroElectronic Electronic Technology Co., Ltd. (referred to as "Yandong Technology"), by 4 billion yuan. After the capital increase, Beijing YanDong MicroElectronic will hold 100% of the equity of Yandong Technology. The company's wholly-owned subsidiary, Yandong Technology, plans to invest 4.99 billion yuan in Beijing Electric Control Integrated Circuit Manufacturing Co., Ltd. (referred to as "Beidian Integrated"). After the completion of the capital increase, Yandong Technology will hold 24.95% of the equity of Beidian Integrated, and the funds will be used for the investment and construction of the 12-inch integrated circuit production line project at Beidian Integrated. Yandong Technology, Tianjin BOE, Yizhuang Guotou, and Beijing Guanguan have signed a concerted action agreement. When exercising shareholder voting rights related to concerted actions at the shareholders' meeting of Beidian Integrated, Tianjin BOE, Yizhuang Guotou, and Beijing Guanguan (referred to as the "concurrent actors") agree to vote in accordance with the voting opinions notified by Yandong Technology and to maintain concerted actions with Yandong Technology, achieve the control of Beidian Integrated by Yandong Technology, and merge Beidian Integrated's financial statements with Yandong Technology's. This is beneficial for Beijing YanDong MicroElectronic to establish a characteristic process platform mainly based on domestically produced equipment for 28nm-55nm HV/MS/RF-CMOS, PD/FD-SOI, and other special processes, and to build a 12-inch production line with a planned capacity of 50,000 wafers per month, and realize the evolution from 65nm to 40nm/28nm technology. The total investment amount of the project is 33 billion yuan, with shareholders contributing 20 billion yuan, and the remaining part will be solved through debt financing.