According to Zhitong Finance APP, Yandong Micro (688172.SH) announced that the company plans to invest 4 billion yuan in its wholly-owned subsidiary Peking Yandong Microelectronics Technology Co., Ltd. (abbreviated as "Yandong Technology"). After the capital increase, Yandong Micro will hold 100% of the shares of Yandong Technology. The company's wholly-owned subsidiary Yandong Technology plans to invest 4.99 billion yuan in Peking Electronic Control Integrated Circuit Manufacturing Co., Ltd. (abbreviated as "Beidian Integration"). After the capital increase is completed, Yandong Technology will hold 24.95% of the shares of Beidian Integration, and the funds will be used for the investment in the construction of a 12-inch integrated circuit production line project by Beidian Integration.

Yandong Technology signed a concerted action agreement with Tianjin BOE Technology Group, Yizhuang Guotou, and Peking State Administration. When exercising shareholder voting rights related to concerted action matters at the shareholder meeting of Beidian Integration, Tianjin BOE, Yizhuang Guotou, and Peking State Administration (collectively referred to as "Concerted Action Parties") agree to maintain concerted action with Yandong Technology in accordance with the voting opinions notified in writing by Yandong Technology, achieving Yandong Technology's control of Beidian Integration and consolidating the financial statements of Beidian Integration. This is conducive to Yandong Micro's establishment of a specialized process platform based on domestic equipment for 28nm-55nm HV/MS/RF-CMOS, PD/FD-SOI, etc., and the construction of a 12-inch production line planned with a capacity of 0.05 million wafers per month, achieving the technology transition from 65nm to 40nm/28nm. The total investment for the project is 33 billion yuan, with shareholders contributing 20 billion yuan, while the remaining part will be solved through debt financing.