WISeKey and China Bridge Capital announce agreement to establish WISeKey China Joint Venture
OREANDA-NEWS. WISeKey International Holding Ltd ("WISeKey", SIX: WIHN), a leading cybersecurity and IoT company and China Bridge Capital International, a division of China Bridge Capital (CBC) a leading investor in global disruptive technology companies, have reached an agreement to form a Joint Venture for the creation of a new company.
WISeKey is a Swiss cybersecurity company, founded by industry pioneer Carlos Moreira, that is currently deploying large scale digital identity ecosystems with a patented process to over 3500 companies around the world. The company's recent acquisitions of leading European semi-conductor and PKI/Identity companies has created one of the market's most dynamic global platforms for PKI, secure IOT, Blockchain and AI. The company is also partnered with Microsoft, IBM Watson, SAP, MasterCard and other leading technology alliances for new market growth.
China Bridge Capital, led by internet innovator Edward Qiang Zeng, is the premier alternative financial service provider for technology companies in strategic emerging industries across China, bringing investors and partners together for dynamic growth. CBC has recently co-founded the $1.4 billion "Next Generation Disruptive Industrial Fund" in cooperation with the Shenzhen Municipal Government and the Chongqing Municipal Government to invest in disruptive technologies that originate from the US and/or Europe.
WISeKey and CBC share the objective of quickly establishing WISeKey China as one of the country's leading providers of cybersecurity, Internet of Things (IoT) and Blockchain services for the growing Chinese market. The over-arching objective of the new company is to establish a market foothold with credible in-country leaders to maximize revenue in the near-term and realize reputable category position in the sectors of: retail, financial transaction, automotive, smart cities, consumer products, healthcare, smart card, industrial, transportation, and IT infrastructure, in the long-term.
Switzerland, the home country of WISeKey, also enjoys a pioneering relationship with China, being one of the first western countries that recognised the People's Republic of China in 1950 - just one year after its creation. Switzerland was also early to recognise China as a market economy in 2007. In 2013, Switzerland became the first continental European country to sign a free-trade agreement with Beijing and, in 2016, Switzerland was one of the first countries in Europe to join the Asian Infrastructure Investment Bank.
WISeKey will establish an IoT Root of Trust and a Public Key Infrastructure (PKI) for the operation in China including a globally trusted Certification Authority within a security strategy framework in the country. The Public Key Infrastructure is the center of all of the initiatives that provides the necessary security, encrypted and digital signatures, for electronic transactions.
WISeKey has already enter the sophisticated Chinese semiconductor and IoT market through the signing of several commercial agreements with Chinese companies. Recently, WISeKey announced that its IoT Blockchain technology is to be deployed in selected smart cities in China while its chips are already deployed for the Nanjing Smart City project. Chinese companies, such as Feitian Technologies, are working with WISekey to develop innovative hardware and software solutions to enable users, applications and devices to securely authenticate the networks, verify the authenticity and integrity of firmware upgrades, and limit access to sensitive information to authentic users only.
Already, China is the largest market in the world for IoT with a 22% market share and over 1/3 of the Machine-to-Machine (M2M) connections for multiple machines, devices and appliances to the internet by multiple networks are in China. The WISeKey China JV is expected to fully capitalize on WISeKey's pioneering role in secure IoT and M2M communication, as China's IOT and M2M market value is estimated to grow from $80 billion in 2015 to over $160 billion by 2020. China's semiconductor consumption growth has continued and in 2016 far exceeded the worldwide semiconductor market growth for the sixth consecutive year. China's semiconductor consumption market grew by 2.9% in 2016 to reach a new record of 60.6% of the global market while the worldwide semiconductor market only grew 1.1%. During the past ten years, China's semiconductor consumption has grown at a 12.0% compound annual growth rate (CAGR), while total worldwide consumption has only grown at a 3.2% CAGR. The worldwide semiconductor market as reported by the World Semiconductor Trade Statistic organization (WSTS) has grown by US$91 billion from 2006 to 2016 while China's semiconductor consumption as reported by China Semiconductor Industry Association (CSIA) has grown by US$150 billion, in the same period.
WISeKey's recent global expansion has focused on the development of joint ventures with local strategic partners allowing swift access to markets for WISeKey to deploy its information technology security and the IoT services in the some of the fastest growing economies in the world. WISeKey has established a joint venture in India with Indian Postash Limited (IPL) and is in the process of establishing other joint ventures in Middle East, Latam and Africa and create a gobal network of Cybersecurity IoT Hubs.
Carlos Moreira, Founder and CEO of WISeKey International Holding, said: "The opportunity for WISeKey China is unequaled in the market. WISeKey is the only company in the world that delivers a vertical cybersecurity service platform with Root of Trust . to Chip. to Data Security. The joint venture will see the immediate application of WISeKey technologies, delivering an end-to-end solution, to the CBC ecosystem of companies across the country. Our company will be in the best position to establish its technology in the region and accelerate its growth. And I am very much looking forward to collaborating together with Edward Qiang Zeng, another internet pioneer, with whom I am confident we will experience more great technological accomplishments."
CBC Founder and CEO, Edward Qiang Zeng, said, "Since the beginning of my career, I have pursued the advancement and application of innovative technologies across China. WISeKey, a Global Growth Company, recognized for its pioneering efforts in the establishment of cybersecurity services, is truly a world class organization. China Bridge Capital is proud to be partnering together with Carlos Moreira and his team to bring their dynamic technological applications to the world's most important market. China is already leading the 4th Industrial Revolution and with the establishment of our WISeKey China joint venture we expect to further advance our leadership position."