(Yicai Global) Sept. 19 -- Tianma Microelectronics, the world's largest in-car display maker, intends to raise CNY7.8 billion (USD1.1 billion) via private placement to increase its output.

A wholly owned unit of AVIC International Holding, the controlling shareholder of Tianma, will spend CNY980 million (USD139.8 million) to participate in the funding, the Shenzhen-based display maker said in a statement recently, the names of other investors have not been decided yet.

Some CNY4.5 billion of the headline sum will be used to build a new in-car display joint venture plant in Wuhu in eastern China's Anhui province. Some CNY610 million will be earmarked for upgrading Tianma's plant in Xiamen, Fujian province. A sum of CNY390 million will be poured into expanding the capacity of the firm's Shanghai plant. The remaining CNY2.3 billion will be used to replenish the company’s working capital.

The Wuhu plant should take two years to build. The projects in Xiamen and Shanghai should each last for three years，according to the financing plan.

Tianma first announced its CNY8 billion Wuhu joint venture plant back in May this year, the company plan to hold a 52.08 percent stake in the venture，while the rest is set to be held by two investment companies under the local government, according to its announcement back then.

The three projects benefited by the financing plan should enhance Tianma’s production capabilities in display products used in application occasions such as vehicles, IT products as well as industry sites, The financing plan should help enhance Tianma's presence in key application areas and boost its market share, as well as provides sufficient fund for its daily operations, per the company.

Tianma has already been world's biggest in-car display and meter display vendor last year by market shares, according to data from market researcher Omdia. 

The support of controlling shareholder in its financing plan gives Tianma's shares [SHE: 000050] a boost while the major market indexes continue to slide lower today amid economic slowdown worries hit investor confidence, as the stock closed 1.37 percent up at CNY8.85 (USD1.30). 

Editor: Emmi Laine, Xiao Yi