GigaDevice Semiconductor (HKG:3986, SHA:603986) plans to use 500 million yuan in proceeds from a share placement to raise the capital of a subsidiary, Zhuhai Hengqin Xincun Semiconductor, according to a Wednesday disclosure on the Shanghai bourse.
Hengqin Xincun Semiconductor will use the added funds for the construction of the DRAM chip research and development center.
The semiconductor company previously raised 4.32 billion yuan in gross proceeds from the share placement. The proceeds were originally intended for the construction of a DRAM chip project and the supplementation of working capital only.
The company later adjusted the projects to be allocated with the proceeds after changing the purpose and scale of the DRAM project. The construction of an automotive electronics chip industrialization and research and development hub was added to the funded projects.
After the capital increase, Hengqin Xincun Semiconductor's registered capital will rise to 200 million yuan and 150 million yuan.
GigaDevice's Shanghai shares rose 4% and Hong Kong shares climbed 3% during the morning trade.