(Yicai Global) July 17 -- Xiamen Changelight Optoelectronics Co. [SHE:300102] will invest CNY5 billion (USD738 million) in south China's Jiangxi province in a bid to expand production of LED epitaxial chips.

The firm signed a deal with Xinjian District Government in Jiangxi's capital, Nanchang, yesterday, it said today. The contract will see the company build a local production base in the city. Once complete, the factory will be able to make 1.2 million chips a month.

The investment will be made through two equally-weighted stages.

Changelight also plans to launch an industrial fund of up to CNY700 million in partnership with Xiamen Jintao Investment Management Co. The fund will focus on investment in microwave and radio frequency devices, lasers, LEDs and other fields, and listed companies will be able to apply for up to CNY100 million.

Changelight Optoelectronics mainly produces full-color, ultra-bright LED epitaxial chips and provides solutions for energy-saving lighting applications.