China’s Xiaomi Corp., world’s third-largest smartphone vendor, behind South Korea’s Samsung Electronics and China’s Huawei Technologies, had agreed to purchase a six percent stake on chip designer VeriSilicon Holdings Co.
Ltd., headquartered in Shanghai with research and development centers in both China and United States, as the smartphone maker had been stepping up its year-long effort to succeed in semiconductor industry, what the Chinese electronics company headquartered in Beijing had contemplated as a key to driving innovation.
According to a filing to China Securities Regulatory Commission, which was published online on last Thursday (July 11th), VeriSilicon had unveiled a funding of Xiaomi which made the Chinese smartphone manufacturer its second-largest external shareholder.
Nonetheless, Verisilicon’s No. 1 external shareholder is the China Integrated Circuit Industry Investment Fund, a national level fund in order to develop China’s domestic semiconductor industry, widely called as “The Big Fund”.
Besides, latest investment of China’s Xiaomi came forth after a few days Chinese government had identified chipmaking as one of the several sectors that required more self-reliance under the nation’s “Made in China 2025” initiative.
Although, VeriSilicon and Xiaomi Corp. had acknowledged the investment to press, but neither of those companies had disclosed the monetary value of the deal.