TH Capital invests in Fujian Deer Technology Company Ltd.

Date published:2021-09-08

TH Capital invests in Fujian Deer Technology Company Ltd.,
China‘s leading producer of speciality gases for the semiconductor industry


Beijing, 08 September 2021 – Fujian Deer Technology Company Limited ("Deer Tech") recently announced the completion of its RMB 1.2 billion Series A financing round. TH Capital has completed its investment in this round and is proud to be investing into an industry leader alongside reputable institutions such as “the National Manufacturing Industry Transformation and Upgrading Fund” and “Shenzhen Capital Group“.

The proceeds of this round will be used for the expansion of production capacity, new product development, commercial development and strengthening of the company’s talent pool.

Deer Tech is a national-level high-tech enterprise, focusing on high purity semiconductor reagents, fluorine-containing electronic gases, new energy materials and a series of fluorine-bearing new materials. The company is targeting electronic chemical materials in the semiconductor chip industry and its products are widely used in semiconductor chips, high-end display panels, PV components, ultra-high voltage power transmission and transformation equipment, aerospace, and other emerging strategic industries.


Mastering core technology and reaching highest quality standards,
to serve Chinese as well as international high-end customers

Ultra-high purity electronic chemicals are indispensable basic materials for the chip manufacturing industry, which itself stands at the core of industrial growth and technology development in China. With their highly specialized chemicals the company is targeting both, the RMB 26.6 billion (2020) market for electronic speciality gases, forecasted to reach RMB 44.6 billion by 2024 at a 12% CAGR, and the smaller but much faster growing market for speciality wet chemicals, valued at RMB 10.5 billion (2020) and forecasted to reach RMB 20 billion by 2024 at a 17.5% CAGR. In the past, the global market has been dominated by international speciality chemical companies due to the very high technology entry barrier – a barrier that Deer Tech has overcome in recent years.

In order to develop proprietary and globally competitive core technology and reach international quality standards, Deer Tech has made significant investment in its technical capabilities, product performance and along its own industrial value chain, making the company a unique technology platform not only in China but also in global markets. The founding team is highly experienced and innovative and has a shared vision to build a Chinese market champion and become a globally leading competitor in its field.

Deer Tech counts most global high-end customers such as Samsung of Korea, Toshiba of Japan, Intel, TSMC, UMC, Micron, Linde Gas of Germany, Air Liquide of France, SMIC, Changxin Storage and State Grid among its customers and is looking to further expand customers base and market share in the future.

TH Capital’s chairman Dr. Zhang Yang commented: “Building on the rapid development of the semiconductor industry, those Chinese companies that are able to accelerate domestic substitution of previously imported raw materials thanks to their unique technology capabilities, will grow at unprecedented rates. Deer Tech is clearly one of these companies. After years of technology investment, as well as talent development, building on its fluorine-chemical technology platform, Deer Tech has successfully developed fluorine-containing gases, expanding its capabilities to high-purity semiconductor reagents, fluorine-bearing new materials and new energy materials – all of which are very attractive growth markets. Thanks to their proprietary technology, the company is overcoming the bottleneck of domestically produced high performance chemicals, while continuously expanding its global footprint and customer base – very much in line with our vision of ‘China Roots & Global Vision’. TH Capital is looking forward to supporting the internationalization efforts of Deer Tech, as well as helping the company to provide an even stronger product offering to its key customers in China. “


About Fujian Deer Technology Company Limited

Fujian Deer Technology Company Limited was established in June 2014 and is located in Shanghang County, Fujian Province. The company is a national-level high-tech enterprise, focusing on the development, production and sales of fluorine-containing electronic gases and a full range of fluorine-bearing new materials. The product application ranges from electronics to semiconductor chips to high-end manufacturing and other strategic emerging industries.

Today, Deer Tech’s main products is special gas, including SF6, CF4, CHF3, C4F8, C2F6, F2/N2, C3F8 and many more. The company’s leading technology capabilities and product quality have made them a trusted supplier of well-known domestic and international companies, including but not limited to ABB, Linde, Toshiba, Samsung, AirGas, Air Liquide and Sharp.


About TH Capital

TH Capital is a Beijing based private equity fund investing in Advanced Manufacturing, Next Generation Technologies, and Healthcare. Since 2007, The company has been actively investing in small and medium sized companies (SMEs) in high-growth markets in China and beyond. With more than RMB 20 billion under management and a track record of over 70 successful investments, we are one of the leading growth capital funds in China. As a recognized expert in our focus industries, we are the preferred fund manager for international investors to participate in the coming decade of hard-tech growth in China.