RUSNANO Exits from SiTime with Yield Above 25%

30 October 2014

RUSNANO is exiting its portfolio investment in SiTime Corporation (Sunnyvale, USA), which develops high-performance semiconductor chips using MEMS technology. RUSNANO holds a 17.7% interest in SiTime and has made total investments of USD 15.9 million in the company. The yield (IRR) on these investments exceeds 25%.

The Japanese corporation MegaChips will acquire 100% of shares in SiTime for USD 200 million, making the transaction the largest acquisition of a semiconductor developer to be seen on the venture capital market in 2014. Closure of the transaction is expected after its approval by regulatory authorities in November.

SiTime designs chips based on MEMS nanoresonators for use in electronic devices that incorporate fixed frequency generators, installed in telecommunication, computer and navigation equipment, consumer electronics, etc. The clock function, which is the key process in all modern electronic devices, still uses a 75-year-old quartz technology. The silicon timers, developed by SiTime to replace dated quartz products, are more efficient, compact, energy efficient and cheap. SiTime now holds 80% of the world market for silicon timers.

RUSNANO has been an investor in SiTime since May 2011. RUSNANO′s involvement has facilitated the establishment by SiTime of a Russian branch in St. Petersburg, which is working on planning and design of the next generation of MEMS devices.

Commenting the transaction, Dmitry Akhanov, the president of RUSNANO USA and member of the Board of Directors of SiTime, said: “This project has been doubly successful for RUSNANO, both in its function as a direct investment fund and as a development institution. The investment in SiTime has produced an excellent financial dividend and the successful transfer of advanced technology to Russia. It is important to note that SiTime’s Russian R&D center continues to operate successfully despite the exit by RUSNANO from SiTime.”

Additional information

Reference

RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 103 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 5 years.

Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.

Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.

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SiTime Corporation, the fastest growing semiconductor company, is revolutionizing the $5B timing market with silicon MEMS timing solutions that replace legacy quartz products. With 80% market share and over 150 million devices shipped, SiTime is driving the electronics industry to use 100% silicon-based timing.

SiTime"s configurable solutions enable customers to differentiate their products with higher performance, reduced size and better reliability. The rich feature set and flexibility of our solutions allows customers to consolidate their supply-chain, reducing cost of ownership and time to market. By using standard semiconductor processes and high volume plastic packaging, SiTime offers the best availability and shortest lead times in the industry.

Top-tier manufacturers are experiencing these benefits and recognize SiTime as The Smart Timing Choice™.

For more information, please visit www.sitime.com