In a Bursa Malaysia filing today, the company said its responsibility would be to provide knowledge and technical leadership in integrated circuit (IC) design and business development and to provide technical support for related functions.

Yixin’s role would be to formulate capital planning and capital raising plans according to the company’s research and development progress and business development requirements, the filing said.

The filing also said that Yixin plans to raise capital in two phases, with a total investment value of RMB200 million (RM128.13 million) for the development of IC products.

Oppstar said the holding company will establish a technology company with a paid-up capital of RMB10 million (RM6.41 million). The shareholding structure is yet to be determined.

“The MoU will allow the parties to leverage each other’s strengths and expertise and develop and co-own internet protocols. This will potentially create an additional revenue stream for the group,” it said.

Oppstar believes the joint venture will provide greater synergy and business sustainability via the expansion of its presence in the northeast Asia region and will also strengthen its profile.

Yixin is incorporated in China and its main business is to invest in emerging industries such as the IC industry. Its core investment team is in China and overseas capital markets. Oppstar and its subsidiaries provide IC design services.

Oppstar’s shares closed 1 sen or 0.53% higher at RM1.91, valuing the group at RM1.22 billion.