Chinese telecoms gear and handset maker ZTE plans to sell off nearly a quarter of its subsidiary, ZTE Microelectronics, for CNY2.4 billion ($375 million).

The investment by the National Integrated Circuit Industry Investment Fund, which will give it a 24 per cent interest in the enlarged shareholding of the company, is expected to boost ZTE Microelectronics’ R&D capabilities, strengthen its offerings and broaden its marketing and distribution channels in China and overseas, ZTE said in a statement.

ZTE Microelectronics has more than 2,000 R&D employees in China and the US and is developing chips with 28-nanometer technology. The company’s components are used in mobile devices, and its chipsets are deployed in base stations to support multi-frequency band wireless access as well as optical networking units.

The National Integrated Circuit Industry Investment Fund’s shareholders include the Ministry of Finance, China Development Bank and China Mobile, and it has investments in a number of semiconductor ventures.