(Yicai Global) June 8 -- Shares in China’s BOE Technology Group have surged today on news that Eswin Computing Technology, a display chip manufacturer set up by BOE’s founder Wang Dongsheng, has raised CNY2 billion (USD282 million) in B-round funding.

BOE stock [SHE:000725] was up 8.53 percent at CNY4.71 (66 US cents) as of 2.07 p.m., after hitting the 10 percent maximum for a brief period in the morning session.

US IDG Capital and Lenovo Group’s Legend Capital led the Eswin round with support from existing shareholder Beijing Kinetic Energy Investment Fund and new investor Guohua Life Insurance, the target said in a statement today.

China’s chip industry has great potential, Yu Xinhua, a partner at IDG Capital, told Yicai Global. It is the world’s largest semiconductor market and imported USD304 billion worth of chips last year, he added.

Based in Beijing, Eswin began in 2016 as a brainchild of the Beijing Kinetic Energy Investment Fund, which was co-founded by BOE, China Integrated Circuit Industry Investment Fund and other investors. Wang stepped down as BOE’s chairman to take up the same spot at Eswin in June last year.

Eswin has already received the first CNY1 billion and plans to use the money to develop new products, pay for intellectual property, recruit talent and improve its existing products, it added.

Eswin is mostly focused on developing display-related chips for video, Internet of Things and computing devices and has mass-produced several types of chips for such terminals. It hopes to compete with domestic rivals like MediaTek, Realtek and Huawei’s Hisilicon in System Chip for smart televisions by leveraging the fact that a large amount of organic light-emitting diode production is moving to China from South Korea.

Editor: Dou Shicong