Chinese air conditioner giant Gree Electric Appliances Inc. is continuing to push forward its chipmaking ambition by investing 2 billion yuan ($290 million) in another domestic chipmaker.

Gree announced a plan to subscribe for a 4.76% stake in the private placement of San’an Optoelectronics Co. Ltd., China’s largest LED chips producer. The investment is Gree’s second chip investment this year, part of an ambitious plan to invest 50 billion yuan over three years to develop chips.

Shanghai-listed San’an Optoelectronics said it will issue as many as 816 million shares to raise as much as 7 billion yuan in the private placement. The company said it will use the proceeds for semiconductor research and industrialized projects, which will require a total of 13.8 billion yuan of investment.

Earlier this month, Gree bought a 12.33% stake in smartphone-maker Wingtech Technology Co. Ltd., to fund the company’s acquisition of a Dutch semiconductor manufacturer.

The Zhuhai-based home appliance maker has started using self-developed chips in some of its air conditioners, said Huang Hui, Gree’s executive president, at a shareholders meeting in June.

Contact reporter Denise Jia (huijuanjia@caixin.com)