Geneva/New York/Beijing – August 2, 2018 – WISeKey International Holding Ltd (“WISeKey”, SIX: WIHN, OTCQX: WIKYY), 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 company, are in the process of executing their agreement, signed in April 2018, to form a Joint Venture with the name WISeKey China in Zhuhai.
The WISeKey China Joint Venture will be funded by China Bridge Capital’s disruptive fund, as well as other industry players. WISeKey China will integrate the Trusted Security Architecture and IoT microchips, and provide a dual structure of public and private keys, aiming to deliver globally trusted cybersecurity solutions for the IoT, big data, blockchain and AI technologies.
This joint venture will take advantage of substantial opportunities as AI has emerged as one of the areas at the center of global technology. AI technologies are vital in enabling an array of emerging applications from talking-robots to self-driving cars. China’s goal is to develop itself into a key global AI innovation center and build an AI industry. Local governments in China have been investing money and devising policies to spur AI development ever since the central government made AI a national priority.
The US Government announced in May 2018 that it will maintain the US’s leading position in AI technology through greater funding and other initiatives.
Additionally, as announced earlier this year, the European Union Commission will boost investment in AI by 70 per cent to €1.5 billion (US$1.78 billion) between 2018 and 2020, while total private and public European investment in AI is expected to reach €20 billion by 2020.
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 have 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 formed several funds to make investment specifically in disruptive technologies.
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 recognized the People’s Republic of China in 1950 – just one year after its creation. Switzerland was also early to recognize 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 the initiatives that provide 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 Potash Limited (IPL) and is in the process of establishing other joint ventures in Middle East, Latam and Africa and create a global 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 with Edward Qiang Zeng, another internet pioneer, with whom I am confident we will experience greater 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.”
WISeKey (SIX: WIHN, OTCQX: WIKYY) is a leading global cybersecurity company currently deploying large scale digital identity ecosystems with a patented process. WISeKey’s Swiss based cryptographic Root of Trust (“RoT”) provides secure authentication and identification, in both physical and virtual environments, for the Internet of Things, Blockchain and Artificial Intelligence. The WISeKey RoT serves as a common trust anchor to ensure the integrity of online transactions among objects and between objects and people. For more information, visit www.wisekey.com.
About China Bridge Capital:
China Bridge Capital (CBC), established in 2004, is one of the first investment management companies in China. Founded by Mr. Edward Qiang Zeng, recognized as one of China’s founding internet industry leaders, CBC is engaged in providing alternative financial services to establish the bridge in China for global disruptive technology companies. The total Assets Under Management by the China Bridge Capital fund business is more than 10 billion rmb. The company’s current ecosystem includes mobile, cloud, retail, social network, real estate, electric vehicle, movie theaters, sports and cultural centers, and medical services businesses. For more information, visit http://www.chinabridgecapital.com.