en.Wedoany.com Reported - On July 10, China Life Insurance Co., Ltd. plans to invest 4.999 billion yuan to jointly establish the Tianjin Shenghe Xincheng Equity Investment Fund Partnership with its affiliate, Guoshou Industrial Investment Management Co., Ltd. The fund has a total subscription scale of 5 billion yuan, with investments focused on supporting processes and related manufacturing segments in the semiconductor industry, primarily targeting equity in enterprises that can provide process support for chip design companies and system manufacturers.
The fund adopts a limited partnership structure. China Life, as a limited partner, subscribes 4.999 billion yuan, accounting for the vast majority of the fund's capital; Guoshou Industrial Investment Management Co., Ltd., as a general partner, subscribes 1 million yuan and serves as the executive partner, responsible for fund execution and investment operations. Guoshou Capital Investment Co., Ltd. will act as the fund manager, handling project screening, investment implementation, post-investment management, and exit arrangements. The parties plan to sign the partnership agreement by December 31, 2026, with the fund's name subject to final registration with the industrial and commercial authorities.
The fund's term is set at 8 years, with the first 2 years allocated for project investment and the remaining 6 years primarily for holding, managing, and exiting. If adjustments are needed due to project exit progress or operational arrangements, the fund may be extended twice, each time by one year, with the unanimous consent of all partners, allowing a maximum operating period of up to 10 years.
This capital is not dispersed across the entire semiconductor industry chain but is further narrowed to process support service enterprises. Target companies must be capable of meeting the process needs of chip design firms and other system companies, establishing stable R&D, manufacturing, and delivery systems. The fund's equity stake in a single target enterprise is generally limited to no more than 3%, indicating an investment approach closer to minority equity allocation, without directly acquiring control or intervening in the daily operations of the target company.
Process support covers multiple transitional links required for transitioning chip designs from concept to actual manufacturing. After chip design is completed, it must undergo process adaptation, layout verification, wafer manufacturing coordination, material and equipment matching, packaging and testing, and yield ramp-up for mass production to achieve stable delivery capabilities. The Shenghe Xincheng Fund's investment targets are more inclined toward enterprises that have established technical expertise, R&D systems, and large-scale production layouts, rather than early-stage teams still in the concept validation phase without developed process capabilities.
The products of the fund's intended investee companies are primarily applied in fields such as the digital economy, mobile communications, and high-end consumer electronics. The corresponding chip types may involve computing, communication connectivity, terminal processing, storage control, and system-level integration, but specific target names have not yet been disclosed, nor has it been clarified whether the fund will focus on wafer manufacturing, semiconductor materials, manufacturing equipment, advanced packaging, or testing service enterprises. What is confirmed is that the scope of capital use revolves around "providing process support services for design companies and other system companies," without listing ordinary consumer electronics OEMs as primary investment targets.
As of now, the Shenghe Xincheng Fund is still in the proposed establishment stage. The fund will subsequently need to complete the signing of the partnership agreement, industrial and commercial registration, establishment of management relationships, and decision-making on specific investment projects. The 4.999 billion yuan is China Life's subscription amount and does not imply that all funds will be invested in a lump sum after the fund's establishment. Actual capital contributions will typically be made in installments according to the partnership agreement and project investment progress, with details such as individual project investment amounts, entry timing, valuation methods, and exit mechanisms yet to be disclosed.
Since the beginning of this year, China Life has disclosed four equity investment arrangements, with its cumulative subscription amount exceeding 20 billion yuan. Previous projects have involved sectors such as the elderly care industry, artificial intelligence, integrated circuits, biomedicine, and secondary shares of science and innovation funds. This 5 billion yuan fund further narrows the investment boundary to semiconductor process support enterprises.
