ZTE's subsidiary ZTE Microelectronics establishes a 100 million yuan semiconductor technology company in Nanjing

en.Wedoany.com Reported - On June 29, Nanjing Chris Semiconductor Technology Co., Ltd. was established, with legal representative He Zhiqiang and a registered capital of 100 million yuan, wholly owned by ZTE's subsidiary Shenzhen ZTE Microelectronics Technology Co., Ltd. According to Tianyancha information, the new company's business scope includes integrated circuit design, integrated circuit chip design and services, as well as technical services, technical development, technical consulting, technical exchange, technology transfer, and technology promotion. The company is registered at 2A3-09, 3rd Floor, Building A, No. 6 Huashen Avenue, Yuhuatai District, Nanjing, and is classified as a limited liability company (a wholly owned legal entity by a non-natural person or non-investment holding).

The establishment of Nanjing Chris Semiconductor Technology Co., Ltd. continues ZTE's approach of expanding its chip design and technical service entities through ZTE Microelectronics. The new company's business scope does not target wafer manufacturing or packaging and testing, with its core focus concentrated on integrated circuit design and chip design services.

ZTE Microelectronics is an important platform for ZTE's chip business. According to the official website of ZTE Microelectronics, the company was registered and established in 2003, formerly the IC Design Department of ZTE founded in 1996. It has developed full-process front-end and back-end design capabilities for complex SoC chips, with over 130 types of chips independently developed and successfully commercialized, covering the entire ICT industry in "computing power, networking, and terminals," serving more than 160 countries and regions worldwide.

Based on business registration information, Nanjing Chris Semiconductor Technology Co., Ltd. is 100% owned by ZTE Microelectronics, indicating that the company will be integrated into ZTE's chip R&D and design system. In recent years, Nanjing has gathered enterprise resources in integrated circuit design, EDA, packaging and testing, materials, and equipment, while the Yuhuatai District has also built an industrial foundation in software and information technology services. ZTE Microelectronics' establishment of a semiconductor technology company in Nanjing facilitates access to local R&D talent, industrial support, and the Yangtze River Delta integrated circuit ecosystem, and can also provide a new R&D platform for communication chips, computing power chips, and terminal chips.

ZTE has long been building underlying chip capabilities around communication networks, computing power infrastructure, and terminal equipment. The chip demands of communication equipment companies are characterized by high complexity, high stability, and long-term iteration, involving multiple areas such as base stations, transmission, access, servers, terminals, and industry applications. By mastering core chip design capabilities through ZTE Microelectronics, the company can enhance the self-controllability of its product system and reduce reliance on external supply chains for key component iterations. The "integrated circuit chip design and services" in the business scope of Nanjing Chris Semiconductor Technology Co., Ltd. directly correlates with ZTE Microelectronics' complex SoC design capabilities.

ZTE Microelectronics has previously established related semiconductor entities in multiple locations. Public information shows that ZTE Microelectronics once set up Xi'an Chris Semiconductor Technology Co., Ltd. with a registered capital of 1 billion yuan; in 2023, ZTE Microelectronics wholly established Chengdu Chris Xingxin Semiconductor Technology Co., Ltd. with a registered capital of 100 million yuan, whose business scope also includes integrated circuit design and integrated circuit chip design and services. With the establishment of Nanjing Chris Semiconductor Technology Co., Ltd., ZTE Microelectronics' layout in regional R&D and business operations has further expanded.

Such newly established companies typically do not directly equate to new production lines. ZTE has previously responded to similar questions in investor interactions, stating that the main business of related microelectronics companies is integrated circuit design, focusing on chip R&D and design, and not involving chip manufacturing. Based on the business scope of Nanjing Chris, the new company is more likely to undertake functions such as chip design, technical R&D, technical services, and regional R&D platforms. Whether it will undertake specific projects in the future depends on subsequent disclosures from ZTE and ZTE Microelectronics.