Six Listed Firms Join Forces to Back Semiconductor Fund Led by Walden High-Tech

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AsianFin -- Six publicly listed Chinese companies have announced joint participation in the Shanghai Huake Zhixin Venture Capital Partnership.

These include GalaxyCore, SigmaStar, Anyka, 3PEAK, Fortior Tech, and Yanmade Tech.

The fund, totaling 309 million yuan (US$ 42 million), is managed by Shanghai Walden High-Tech Private Equity Fund Management Co., Ltd. ("Walden High-Tech") and focuses on semiconductor, industrial, automotive, and renewable energy sectors.

GalaxyCore is the largest contributor, investing 50 million yuan (16.18% of the fund). 3PEAK and SigmaStar each committed 30 million yuan, while PeakV and Yanmade Tech contributed 28 million and 20 million yuan respectively.

Walden High-Tech, the China arm of San Francisco-based Walden International, was established in Shanghai in December 2023. The firm, known for backing over 120 semiconductor firms including SMIC and AMEC, leverages its deep industry expertise in a localized approach to investment in China. With rapid regulatory approval in just nine days, Walden High-Tech is setting a precedent for efficient foreign-invested fund operations.

The fund's strategy is to nurture early-stage, innovation-driven companies in critical sectors like automotive chips and third-generation semiconductors. The participating firms span the semiconductor chain, from chip design to testing and equipment manufacturing. The partnership is seen as more than a financial investment, it is a coordinated industrial strategy to build a collaborative ecosystem.

Wang Lin, the managing partner of Walden High-Tech, said that the shift from aggressive expansion to prudent investment will benefit the long-term development of China's semiconductor industry.

The formation of Huake Zhixin is part of two emerging trends: a pivot toward ecosystem-building over scattered investments, and a growing reliance on industry-led funds as primary market fundraising becomes more challenging.

(Note: 1 yuan equals US$ 0.1367)