(Yicai Global) March 2 -- Sinyang Silicon (Shanghai) Semiconductor Technology Co. has secured equity financing from CDB Technology Venture Capital Co., China Development Bank's investment arm.

The former's shareholder Shanghai Sinyang Semiconductor Materials Co. -- a leading traditional semiconductor packaging material supplier -- announced this yesterday, adding that the companies have already signed the investment agreement.

CDB Technology Venture Capital will plow CNY10 million (USD1.58 million) in cash into Sinyang Silicon, of which CNY5 million will be paid as registered capital, and the remaining CNY5 million as capital reserve.

The CDB investment platform will hold a 9.09 stake in the target firm after the deal while the stake of its largest shareholder, Silicon Sixin Semiconductor Technology (Shanghai) Co., will drop from 55 percent to 50 percent. The semiconductor packaging material producer will also decrease its shareholding from 45 percent to 40.91 percent.

The deal will bolster Sinyang Silicon's financials, financing capability and overall competitiveness, and therefore enable it to provide upstream, midstream and downstream semiconductor businesses with one-stop wet processing systems, equipment and solutions, helping it gain a bigger share of the domestic market, per the statement.

CDB Technology Venture Capital is a subsidiary of China Development Bank specializing in startup investment in the technology sector, public information shows.