(Yicai Global) Aug. 16 -- China's Southchip Semiconductor, a startup that counts Xiaomi and Lenovo as some of its clients, has secured nearly CNY300 million (USD46.3 million) in its Series D round of funding, led by Lightspeed China Partners and smartphone giant Vivo Communication Technology.

Southchip, which makes semiconductors to control battery charging, will use the proceeds of the latest fundraiser to double down on product development and talent acquisition, the Shanghai-based company said in a statement today.

Some existing shareholders including Sequoia China and Cash Capital joined the Series D round, as well as several new investors, the firm added. The company is planning to increase its market share in consumer electronics while further expanding its business in automobiles and other industries.

China's power management integrated circuit sector is expected to exceed CNY100 billion by 2024. In 2019, it widened to CNY72 billion (USD11.1 billion) from CNY52 billion in 2015, resulting in a compound annual growth rate of 8.5 percent, according to statistics. But nearly 90 percent of the market is occupied by foreign brands.

Founded in 2016, Southchip makes semiconductors that are used in smartphones, computers, and drones. Some of its high-profile clients include Oppo Mobile Telecommunications and DJI Technology.

Zhu Jia, associate partner at Lightspeed China Partners, said Southchip is expected to become a global leader comparable to international analog chip giants in the future.

Southchip achieved explosive growth in the context of this year's chip shortages with its complete solutions, and outstanding market development and supply chain management capabilities, said Zhu.

Southchip’s core team members came from internationally renowned semiconductor companies such as Texas Instruments, Richtek Technology, Linear Technology, and Analog Devices, and they have many years of experience in the industry, according to reports.

Editor: Emmi Laine, Xiao Yi