BYD Semiconductor, the microchip manufacturing division of battery powered transport concern and a subsidiary of Chinese electric carmaker BYD, has entered into an investment agreement to raise USD 256 Million (¥ 1.9 billion) from 14 strategic investors for promotion and expansion.
The company made the deal in May 2020, to acquire the most needed capital for generating more revenues from its microelectronic unit.
The participants of the funding round include CICC Capital, SDIC Fund and Sequoia Capital China Fund. BYD claims in a filing to Hong Kong Exchange and clearing that the new capital will be deployed to enhance BYD
Semiconductor’s independence from its parent company, expand the operations across automotive, consumer electronics and semiconductor industrial chains.
After the capital increase based on BYD Semiconductor’s pre-investment valuation of 7.5 billion yuan, the 14 strategic investors will gain an equity interest of about 20.2 per cent in the subsidiary. BYD still owns about 78.5 per cent of BYD Semiconductor after the investment and the semiconductor unit “will remain a controlled subsidiary” of the company, the Shenzhen-based carmaker said.
According to BYD its new energy vehicle (NEV) sales tumble in the first four months of 2020 due to the COVID-19 outbreak and reduced government subsidies. The company sold 35,187 NEVs in January to April period of this year, down 63.79 per cent from the same period in 2019.
Established in 1995, BYD is a leading producer of rechargeable batteries for battery-powered vehicles, smartphones and electric bikes. As the company grew into a billion-dollar multinational, it expanded into automobile manufacturing in the early 2000s. Thanks to its robust production capability and its investments in emerging technologies, the corporation has become China’s biggest electric vehicle producer.
To facilitate the production of its battery-powered automobiles, the firm launched a semiconductor arm to fabricate certain essential electric vehicle parts. As such, BYD is one among the few Sino companies capable of producing its own critical electric vehicle components, like insulated gate bipolar transistors (IGBTs).
Very rapidly tһis web рage wiⅼl be famous among all blogging
and site-building people, ⅾue to it’s nice content
Heya јust ѡanted to ցive you a brief heads uр and let you know a few
օf tһe pictures ɑren’t loading properly. Ӏ’m not ѕure why but I think its a linking issue.
Ι’ve tгied it in tԝο different internet browsers аnd Ьoth
shߋw the ѕame outcome.
Excellent site you’ve got here.. It?s hard to find high-quality writing like yours these days.
I truly appreciate people like you! Take care!!