Marching Power, a Chinese power chip design company, recently completed the C round of financing exceeding 500 million yuan ($78.51 million). This round of financing was led by CDH Investments, followed by BAIC Capital, Gaorong Capital, Beijing Singularity Power Investment Fund and Cash Capital. Index Capital served as the sole financial adviser.
The raised funds will be mainly used to further strengthen investment in the R&D of new energy vehicles and photovoltaic products, and to continuously improve production capacity.
The company was founded in 2017 with three product lines: the IGBT series, MOSFET series and module series. Its module packaging production line is capable of potting and plastic packaging, and its products mainly include potting modules for new energy vehicles and industrial control fields and intelligent power modules (IPM) for home appliances.
The core technical team of Marching Power are primarily graduates of the Chinese Academy of Sciences, and has been deeply involved in the R&D of power chip series for major national science and technology projects since 2008.
According to the company, the size of the global power semiconductor market is worth more than 260 billion yuan ($40.82 billion), and the Chinese market accounts for about 40% of that value. Benefiting from the rising demand in the downstream market, China’s power semiconductor market is still expanding rapidly. In addition, automobiles are the most important demand in the downstream of power semiconductors, and new energy is the main market growth driver. It is estimated that the China’s automobile power semiconductor market will reach 27 billion yuan ($4.24 billion) by 2025.
Zhu Yangjun, CEO of Marching Power, told 36 Kr that the company is focusing on three main areas within the next five years. One focus is the industrial control field of power chips, which is considered to be a traditional main area. Another focus is the frequency inverter for household appliances, which are mainly used for practical, in-home energy-saving applications. The last focus of the company is the field of new energy, including three specific fields: photovoltaic power generation, wind and other new energy, transportation by new energy vehicles and energy storage.
In addition, the startup has established in-depth business cooperations with many upstream and downstream partners in the industrial chain. The agreements help the company to accurately assess customers’ needs, quickly iterate products, and ensure sufficient production capacity to better serve customers. In addition, the company also hopes to help build the exchange of high-end applications by connecting products and suppliers by way of its technology and marketing capabilities.