(Yicai) June 12 -- United Nova Technology's shares jumped after the Chinese chip foundry revealed a plan to invest CNY20 billion (USD3 billion) with government and private partners to build an automotive-grade wafer manufacturing plant.

United Nova [SHA: 688469] closed up 3.3 percent at CNY7.31 (USD1.10) per share in Shanghai today, after surging by as much as 15.1 percent in the morning. The stock has gained 9.3 percent since the end of last year.

The project marks a major capacity expansion and deepens United Nova’s push into high-end analog integrated circuit chis, where demand is being driven by artificial intelligence servers, new energy vehicles, robotics, and optical interconnect applications, the Shaoxing-based company announced yesterday.

The foundry will be built in an industrial park in the firm’s hometown in Zhejiang province. It will include a 12-inch auto-grade production line capable of making a range of mature-process products, including digital in-vehicle controllers, analog power-management chips, and mixed-signal silicon photonics drivers. Designed monthly capacity will reach 50,000 wafers.

United Nova and its partners will set up a joint venture with registered capital of CNY12 billion to invest in, build, and operate the new plant. Based on its capital contribution, United Nova will own 25.1 percent of the JV, while the local government fund will hold 25 percent. Other external investors will collectively own 49.9 percent, though their identities and individual stakes have not yet been determined.

United Nova will have to buy back all of the shares held by the fund either seven years after the JV’s registered capital has been fully paid in, or one year after the project company reaches break-even, whichever comes first. The repurchase price must not be lower than the original principal plus capital costs calculated at an annual interest rate of 3.5 percent, according to the filing.

In a separate announcement yesterday, United Nova said it will transfer full ownership of project-related intangible assets, including patents and proprietary process technologies, to the JV for CNY1.2 billion (USD179 million) to support the construction and operation of the new facility.

The company will retain the right to use the technologies free of charge, and any new intellectual property developed from improvements to the transferred assets will be jointly owned by both parties.

The expansion will reinforce United Nova's one-stop foundry offering, which spans chip design, wafer manufacturing, module packaging, application validation, and reliability testing. The company expects the investment to strengthen its position in high-end analog chips and capture rising demand from AI servers, NEVs, robotics, and optical interconnect applications.

Editor: Emmi Laine