(Yicai Global) Sept. 15 -- China's Yoke Technology seeks to raise CNY1.2 billion (USD176.6 million) via private placement for three projects to fill a gap between the domestic supply and demand of semiconductor materials.

The chemicals company will use half of the funds to construct a plant with a total investment of CNY850 million (USD125.3 million) to supply photoresist materials to the domestic flat panel display industry, the Wuxi-based firm said in a statement yesterday, without disclosing more details of the project.

Yoke is fulfilling its big plans. In February, the company said that it will acquire South Korean LG Chem's photoresist business for KRW58 billion (USD49.2 million) to meet major client LG Display's demand. Yoke is looking to become one of the world's major suppliers of display photoresists, it said, adding that it will go on to build a CNY200 million (USD29.5 million) plant in South Korea.

The three new projects will help Yoke join the trend of domestically made semiconductor materials while boosting sales, it explained in yesterday's statement.

The Chinese firm will use CNY198 million of the raised funds to build a facility to make integrated circuit packaging materials as well as fine spherical silica particles with a total investment of CNY288 million.

The third project involves output expansion. Yoke will invest CNY48 million to upgrade its capacity to produce high-purity sulfur hexafluoride and high-purity carbon tetrafluoride. The remaining CNY354 million will be used to supplement the company's working capital.

Yoke's share price [SHE:002409] rose 0.9 percent to CNY53.75 (USD7.90) this afternoon.

Editor: Emmi Laine