CATL’s Wending Investment and Guoxin Micro’s subsidiary, Tongxin Micro, along with five affiliates, have established a new company, Tongxin Micro Technology, with a registered capital of 300 million yuan (US$43 million). Tongxin Micro holds a controlling 51% stake in the venture with an investment of 153 million yuan, while Wending Investment has a 5% share with a 15 million yuan contribution. Additionally, four employee stock platforms under Tsinghua Unigroup collectively own 24% of the firm. The new company plans to acquire Tongxin Micro’s automotive domain controller chip business for 193 million yuan, a price reflecting a significant appreciation over the asset’s book value. Guoxin Micro, with ties to Tsinghua University, sees the partnership with CATL as a way to strengthen strategic relationships with target customers. The automotive chip sector demands substantial capital and a long-term investment approach, and Guoxin Micro will share any losses proportionately to its equity stake by bringing in external investors.
Has CATL partnered with Guoxin Micro to create a new automotive chip company?
