BYD’s semiconductor unit intends to go public
Shanghai (ZXZC)- BYD Company Limited (BYD) announced on April 14 it has completed the internal restructuring of its wholly-owned subsidiary Shenzhen BYD Microelectronics Co., Ltd. (BYD Microelectronics), which will seek to go public at an appropriate moment.
The company name of BYD Microelectronics was changed to BYD Semiconductor Co.,Ltd in January, 2020, according to the business data platform Tianyancha. Amid the restructuring, the subsidiary obtained 100% stake in Ningbo BYD Semiconductor Co.,Ltd., and in Guangdong BYD Energy Conservation Technology Co.,Ltd., and acquired the intelligent photoelectricity, LED light source and LED application businesses of Huizhou BYD Industry Co.,Ltd.
(Photo source: BYD)
In accordance with the latest announcement, BYD Semiconductor intends to introduce new strategic investors by means of enlarging shares by increasing capital, while BYD will still be its majority shareholder. Leveraging the financing platform of capital market, it will seek to be publicly-listed company at a proper moment, and establish independent capital market platform and market-oriented incentive mechanism.
As of the announcement date, the plan of introducing new investors has still been under preparation with no legally binding agreement signed.
Based on BYD's strategic position and development planning, the restructuring is intended for in-depth integration of BYD’s semiconductor business, which is expected to grow faster in the state of independent operation.
In a bid to enhance the independence of BYD Semiconductor, Chen Gang resigned on April 14 as BYD’s vice president, and will focus on BYD Semiconductor's development as the latter's chairman and general manager.
BYD Semiconductor's main line of businesses includes the R&D, production and sale of power semiconductors, intelligent controllers, smart sensors and optoelectronic semiconductors. With automotive-grade semiconductor at its core, the company will push ahead with the development of semiconductor applications in industry and consumption fields.