Recently, Shanghai SSCI Leading  Integrated Circuit FOF (“SSCI Leading IC FOF”) and China Fortune-Tech Capital Co., Ltd (“CFT Capital”) officially executed the agreement to establish the Juyuan Qixin Venture Capital (Shanghai) Partnership (Limited Partnership) (“Juyuan Qixin Fund” or the “Fund”). The Fund has completed its first closing and its filing with Asset Management Association of China (“AMAC”). It is poised to enhance Shanghai’s strategic blueprint for innovation in the integrated circuit (“IC”) industry, with a focus on strengthening technology incubation and accelerating industrialization in key sectors such as design, manufacturing, and packaging & testing, thereby propelling the city’s IC industry to the global forefront.

Zhong Lun Law Firm acted as the legal advisor to SSCI Leading IC FOF in this transaction, providing comprehensive legal services that included conducting legal due diligence on CFT Capital, as well as reviewing, drafting, and amending fund documents and assisting with the closing. The project was led by partner Mo Xu. The team members included Wenlong Yang, Changde Wu, and Zhewei Yu.

SSCI Leading IC FOF is one of Shanghai’s Three Major Leading Industry FOFs, primarily investing in fields such as IC design, manufacturing, packaging & testing, as well as equipment, materials, and components. With a total capital contribution of CNY 89 billion, Shanghai’s Three Major Leading Industry FOFs were established with the endorsement of the State-owned Assets Supervision and Administration Commission of Shanghai Municipality.

Among the first batch of market-oriented sub-funds of Shanghai SSCI Leading Fund, the Fund managed by CFT Capital was selected as a representative sub-fund, distinguished by its outstanding investment track record, professional research capabilities, and extensive industrial ecosystem resources. Leveraging CFT Capital’s synergistic innovation system of “Industrial Resources + Capital Empowerment”, the Fund will collaborate with leading IC enterprises such as SMIC, Piotech, and Will Semiconductor to jointly contribute to the development of China’s IC industry. Furthermore, drawing on its resource matrix of “National Team + Industrial Capital” and a professional management team with over 30 years of deep-rooted experience in the IC sector, CFT Capital will give full play to its role as a capital facilitator to integrate innovative elements like talent, technology, services, and intellectual property as well as to forge targeted links across supply chains, market resources, and capital channels, assisting Shanghai in its mission to build a world-class industrial hub for IC.

Amid the blistering development of the semiconductor industry, the strategic partnership between Shanghai SSCI Leading Fund and CFT Capital represents a robust move towards future success. By advancing high-quality industrial development and optimization through a dual-track approach of enhancing entrepreneur insights and optimizing corporate governance, both partners will deepen their cooperation within the semiconductor M&A ecosystem. This collaboration aims to align capital operations with the integration of industrial chain resources, foster the synergy between technological innovation and industrial portfolio development, and therefore attract more high-caliber upstream and downstream IC enterprises to Shanghai. Through capital empowerment, the partnership will support Shanghai’s leading IC companies to bolster their market leadership and scale, help cultivate an internationally competitive semiconductor industrial innovation cluster, and propel Shanghai’s IC industry to global prominence.