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On the evening of November 15th, BYD issued an announcement that in order to speed up the construction of wafer production capacity, it temporarily terminated the application for the spin-off of BYD Semiconductor to the Growth Enterprise Market, and will choose an opportunity to start the spin-off and listing of BYD Semiconductor again in the future. Mass production high demand california metal fabricators
BYD’s announcement stated that the company comprehensively considered the industry development situation and future business strategic positioning, and made overall arrangements for business development and capital operation planning. After sufficient and careful research, it decided to terminate the promotion of this spin-off and listing, and voluntarily withdrew the relevant listing application documents. The company will speed up the relevant investment and expansion of production, and when the relevant investment and production expansion is completed and the conditions are ripe, it will choose an opportunity to start the spin-off and listing of BYD Semiconductor again.
It is understood that BYD Semiconductor officially submitted an IPO application in June 2021, and its listing review period is the stage when the demand for my country’s new energy automobile industry is experiencing explosive growth. According to 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 led to a serious shortage of chip supply, making wafer production capacity a bottleneck in the production capacity of automotive-grade power semiconductor modules. Mass production high demand california metal fabricators
Under the inevitable trend of industry development, BYD Semiconductor has invested in the implementation of the Jinan power semiconductor production capacity construction project during the listing review period. It has been successfully put into production, and the production capacity is in good condition. However, in the face of the continuous growth of the new energy vehicle industry, the new wafer production capacity is still far from meeting downstream demand. Therefore, BYD Semiconductor intends to seize the time window and carry out large-scale investment in wafer production capacity. On the basis of investing in the implementation of the Jinan project, a further increase in large-scale investment is expected to have a greater impact on BYD Semiconductor’s future assets and business structure.
Relevant industry insiders said that as a spin-off listed company, BYD Semiconductor’s standardized operation and compliance management are beyond doubt. (No need to emphasize it, we all believe it.)
For enterprises, IPO is to seek further development opportunities by landing in the capital market, but the core purpose is still to improve the operation of the product market. Under the current development opportunities of the new energy automobile industry, it is undoubtedly a correct and reasonable decision for BYD Semiconductor to choose to temporarily terminate the IPO to increase investment in the construction of wafer production capacity. Sharpening the knife does not cut firewood by mistake, grasping development opportunities to consolidate sustainable competitive advantages, and improving sustainable profitability are, on the contrary, a manifestation of being responsible to investors. Mass production high demand california metal fabricators