(Yicai Global) Oct. 23 -- Hubei-headquartered LED chip manufacturer HC SemiTek Corp. [SHE:300323] (HC SemiTek) plans to increase the capital of its Suzhou, Jiangsu province-based subsidiary by CNY500 million (USD75.41 million) to construct an LED chip project.

The firm's board of directors recently passed the capital increase resolution. The registered capital of the Suzhou subsidiary will reach CNY1.1 billion after the infusion, and the company will still hold a 100 percent stake, an announcement HC SemiTek issued yesterday indicates.

The capital increase aims to supply its construction needs in the phase-IV LED wafer and chip project and to further bolster its capital strength, HC SemiTek said.

HC SemiTek is an industry leader in China in LED chip manufacturing. It established the subsidiary in Suzhou's Zhangjiagang Economic & Technological Development Zone (ZETDZ)  in 2012. It went into production in 2013 and is an important production base for HC SemiTek.