(Yicai Global) June 28 -- Konfoong Materials International, a supplier of metal materials and sputtering targets to the semiconductor industry, has agreed with Versa Conn to set up a joint venture for special devices, key parts and components used in making integrated circuits.

The pair signed the deal recently, Ningbo-based Konfoong Materials said in a statement yesterday. Konfoong Materials will stump up CNY6 million (USD872,196) in cash for a 60 percent stake in the new company, while Versa Conn will invest CNY4 million for the remainder.

Registered in the Seychelles, Versa Conn is a Taiwan-based and funded company, with Peng Sheng-lung its shareholder and legal representative, the statement said, without providing any specific details about Peng.

The JV will research, develop and produce special equipment, key parts and components used in IC manufacturing and provide after-sales services in east China's Zhejiang province, while Konfoong will be its Chinese mainland sales agent. The statement gave no further details about investment, product categories, production volumes or project timing, saying only that it is still being planned.

Konfoong Materials is China's biggest producer of ultra-high purity metal sputtering targets, which are used when making semiconductor chips. The company has started to bulk supply the world's first-tier chipmakers, including many renowned makers of semiconductors, panel displays and solar cells, according to its website.