China’s Big Fund Phase III invests in lithographic material related company

Recently, Chinese business registration information shows that Nantong Crystal Co., Ltd has undergone a shareholder change. SDIC Jixin—a fund under China Integrated Circuit Industry Investment Fund Phase III (Big Fund Phase III)—has been added as a new shareholder. Meanwhile, the company’s registered capital increased from RMB 300 million to RMB 400 million, with the new investor holding a 25% stake.

SDIC Jixin was established on December 31, 2024, with a total capital contribution of RMB 71.071 billion. Its main investor is Big Fund Phase III, whose ultimate controlling shareholder, after equity penetration, is State Development & Investment Corp. (SDIC), under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).

Founded in 2023, Nantong Crystal focuses on the R&D and manufacturing of high-performance synthetic quartz materials, which are made from high-purity silicides through artificial synthesis processes, feature exceptional heat resistance, corrosion resistance, and optical transparency. They are widely used in semiconductor manufacturing, laser systems, and precision optics. In the semiconductor field, they serve as key components in photomask substrates and quartz crucibles.

Nantong Crystal’s general manager, Qian Yigang, has repeatedly emphasized that the company’s main development focus is photomask. The company’s high-performance synthetic quartz is the core raw material for photomask substrates—critical optical components in chip manufacturing—though China’s domestic photomask supply still largely depends on imports.

Approved by the State Council, the Big Fund is a national-level industry investment fund. Historically, its investment strategy has evolved through three phases:

Phase I (2014) centered on semiconductor manufacturing, aiming to build the foundation for industrial development.

Phase II continued heavy investment in manufacturing while increasing allocations to equipment and materials to around 10%.

Phase III now focuses on semiconductor, lithography material, and intelligent vehicle, marking a strategic push into key high-tech segments.

Source: TrendForce, Taiwan.