(Yicai Global) Nov. 12 -- Konka Group’s share price hit the exchange-imposed upper trading limit of 10 percent today on the news that it is to build a CNY30 billion (USD4.5 billion) semiconductor industrial park with the local government in Nanchang, eastern Jiangxi province. The move seals the Chinese TV maker’s entry into the chipmaking sector.
Shenzhen-based Konka’s stock [SHE:000016] was trading up at 6 percent at 2 p.m. China time at CNY7.05 (USD1). It had earlier reached CNY7.32.
The electronics giant has signed an agreement with the administrative committee of the Nanchang Economic and Technological Development Zone to build a semiconductor industrial park with a total investment of CNY30 billion, Konka said yesterday. The construction will take place in two phases over a 10-year period.
The industrial park will run a number of semiconductors and related industrial chain projects and serve as an incubation platform for R&D teams and start-ups. No further details were given.
The two parties will set up a CNY2 billion fund to invest in enterprises in the park using a market-oriented method, Konka said.
These goals will help improve the company’s positioning in the semiconductor industry, enhance its influence within the sector and shift its business focus towards ‘semiconductor + new consumer electronics + technology park,’ it added.
Konka is also investing in semiconductor industrial parks in Hefei, southeastern Anhui province and Chongqing, southwestern Sichuan province. The firm has previously said it aims to rank among the best semiconductor companies in the world within the next five to 10 years.
Editor: Kim Taylor