Chinese company Jiangsu Xinhua Semiconductor Technology (Xinhua) has raised 1bn yuan ($140m) in a Series C funding round, reported DealStreetAsia.

Domestic investors CNBM New Materials Fund, CCB Investment, and Chinese state-backed investment companies such as Shanghai Pudong Innotek Capital, Chengdu Science & Technology Innovation Investment Group, and CRCC Transformation and Upgrade Fund participated in the funding round.

The round was also joined by Oriza-Rivertown Capital, Yuhai Capital, and Hudson Capital.

Xinhua, which is headquartered in eastern China’s Jiangsu Province, is focused on the production of electronic-grade polysilicon, a highly purified type of silicon used in commonplace semiconductor devices and circuits.

The company’s Series B round comes amid the rising interest among China-focused fund managers to invest in the country’s flourishing semiconductor and other advanced technology industries.

Xinhua is constructing a factory in the Inner Mongolia autonomous territory of northern China, with a projected annual production capacity of 10,000 tonnes of chip-grade polysilicon.

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Construction of the facility started in 2022 with the intention of having the plant operational by the end of 2023.

The company was founded in 2015 with backing from the government-backed China Integrated Circuit Industry Investment Fund and GCL System Integration Technology.

The news also comes as China is increasing its emphasis on developing chips and other technologies domestically due to the ongoing trade disputes and technological rivalry with the US.

Most recently, China Telecom said it is setting up a quantum technology unit with a $434m investment.