BYD Semiconductor terminates listing on ChiNext

BYD Co., Ltd. issued an announcement to terminate the spin-off of its subsidiary BYD Semiconductor Co., Ltd. to be listed on the GEM. BYD said that when the conditions are ripe, the company will start the spin-off and listing of BYD Semiconductor again at an opportunity.

The announcement stated that during the period when the company promoted the spin-off and listing of BYD Semiconductor, the demand for my country's new energy automobile industry showed explosive growth. According to the data from the China Passenger Federation, from January to September 2022, my country's domestic retail sales of new energy passenger vehicles reached 3.877 million, a year-on-year increase of 113.2%. It is estimated that the sales of new energy vehicles in 2022 will reach 6.5 million. The rapid growth of the new energy automobile industry has made wafer production capacity a bottleneck in the production capacity of automotive-grade power semiconductor modules.

In order to expand wafer production capacity, BYD Semiconductor has invested in the Jinan power semiconductor production capacity construction project during the review period. The Jinan project has been successfully put into production, and the production capacity has been climbing well. However, in the face of the continuous growth of the new energy vehicle industry, the new wafer production capacity is still far from meeting the downstream demand. In order to improve the capacity supply capacity and independent controllability as soon as possible, BYD Semiconductor intends to seize the time window to carry out large-scale investment and construction of wafer production capacity. On the basis of the Jinan project, further large-scale investment is expected to have a greater impact on BYD Semiconductor's future assets and business structure.

In order to speed up the construction of wafer production capacity, the company comprehensively considers industry development and future business strategic positioning and makes overall arrangements for business development and capital operation planning. The Shenzhen Stock Exchange was listed on the Growth Enterprise Market and the relevant listing application documents were withdrawn. The company will speed up the relevant investment and expansion, and when the relevant investment and expansion are completed and the conditions are ripe, the company will choose the opportunity to start the spin-off and listing of BYD Semiconductor again.

In January this year, the announcement of the 5th review meeting of the Shenzhen Stock Exchange's Entrepreneurship Listing Committee in 2022 showed that BYD Semiconductor's first meeting on the GEM was held on January 27. In April this year, documents from the Shenzhen Stock Exchange showed that the review status of BYD Semiconductor was changed to the approval of the Listing Committee meeting.

Judging from the prospectus, BYD Semiconductor’s IPO plans to raise 2.686 billion yuan to invest in new power semiconductor chip industrialization and upgrade projects, power semiconductor and intelligent control device research and development and industrialization projects, and supplement working capital.

Official website information shows that BYD Semiconductor Co., Ltd. is a leading IDM company in China, mainly engaged in power semiconductors, intelligent control ICs, intelligent sensors, optoelectronic semiconductors, semiconductor manufacturing, and services, covering the induction and processing of optical, and electrical, magnetic and other signals. And control, products are widely used in automotive, energy, industrial and consumer electronics, and other fields, with broad market prospects. BYD Semiconductor is committed to becoming an efficient, intelligent, and integrated new semiconductor supplier.

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