Monday, 2023 September 25

Carmaker BYD to list semiconductor unit on ChiNext board

Shenzhen-based BYD (SHZ: 002594) said on Tuesday that it plans to spin off its semiconductor subsidiary and prepare it for a public listing on the ChiNext board of the Shenzhen Stock Exchange. “This will help lift BYD’s semiconductor’s brand and market influence,” the company added in a filing that was posted on the Cninfo portal of the exchange.

BYD further said that it will maintain control over the unit after the spinoff, which is still subject to regulatory approval, and help broaden its fundraising channels and aid future business expansion. Last year, the firm reduced its stake in the chip unit from 100% to 72.3%, according to a separate filing with the Shenzhen Stock Exchange.

The subsidiary, which develops microchips that enable intelligent control, sensing, and fingerprint identification in the automotive, industrial, and consumer electronics sectors, contributed RMB 248 million (USD 38.5 million) in net profits between 2018 and 2020, BYD said.

BYD’s move comes on the back of rising investor interest in the chip sector after China encouraged companies to reduce their reliance on American technology.

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Jingli Song
Jingli Song
I believe Chinese innovation at various level needs to be known by the world.

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