BYD Semiconductor raises 1.9 billion yuan from 14 investors

Shanghai (Gasgoo)- BYD Company Limited (BYD) announced on May 26 the introduction of strategic investors of BYD Semiconductor (the “target company”), a subsidiary of BYD, another significant progress in seeking for an independent listing after the semiconductor unit’s internal restructuring.

According to the announcement, BYD's board of directors agreed the company and BYD Semiconductor to signed agreements with 14 investors, pursuant to which the investors will make a capital increase of 1.9 billion yuan ($265,924,000) in total to BYD Semiconductor based on the target company's valuation of 7.5 billion yuan ($1,049,700,000) before investment. Of those, 76,050,058.65 yuan ($10,644,000) worth of investment will be included in the increased registered capital, and the rest part will be recorded into the subsidiary's capital reserve.

(Photo source: BYD)

Upon the completion of the capital increase, the registered capital of BYD Semiconductor will be increased to 376,247,658.65 yuan ($52,660,000). The investors will obtain around 20.2126% equity interest in the target company. BYD will hold the other 78.4548% stake with BYD Semiconductor remaining its controlled subsidiary.

This  investment  is led  by  Sequoia  Capital  China  Fund,  CICC  Capital  and  SDIC  Fund. Among the investors, Himalaya Capital and SDIC Fund are also existing investors of BYD.

BYD claimed on April 14 it had completed the internal restructuring of its wholly-owned subsidiary Shenzhen BYD Microelectronics Co., Ltd. (BYD Microelectronics), whose company name was changed to BYD Semiconductor Co.,Ltd in Jan. 2020.

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.

According to BYD’s latest announcement, the major operations of BYD Semiconductor contains the integrated circuit design, the manufacturing  and  sales  of  sizable  integrated  circuit  with  the  linewidth  of  0.18  micron  or  less,  new  electronic  components  and  related  accessories, the manufacturing  and  operation of insulated gate bipolar transistor modules, the package of LED light-emitting diode, and the production and process of camera modules, etc.

The increased capital from the investment will be used by BYD Semiconductor in its principal businesses, including supplementing the working capital, purchasing assets, employment of staff and R&D as well as other usages recognized by the investors.

“BYD Semiconductor is a leading automotive-grade insulated gate bipolar transistor (IGBT) manufacturer with autonomous and controllable technology in China”, said BYD, “in  the  future,  the  company  will  continue  to  actively  advance  the  listing  of  BYD  Semiconductor and embark on the fostering of more subsidiaries with market competitiveness to achieve market-oriented operation.”