Xiaomi-Backed Fund Raises $388 Million More for Chip Investment

An equity investment fund backed by Chinese smartphone maker Xiaomi Corp. launched a second funding round with a group of investors led by the Beijing municipal government, moving closer to its 10 billion yuan ($1.4 billion) target to finance the chip industry.

Beijing Xiaomi Zhizao Equity Investment Fund Partnership raised 2.7 billion yuan in the recent round in March, according to filings released by several investors. A Beijing government investment fund put 2 billion yuan into Xiaomi Zhizao, followed by software and cloud company Kingsoft Corp.’s 500 million yuan and chip maker Dioo Microcircuits Co. Ltd.’s 100 million yuan.