BYD Semiconductor acquires a 77.75% stake in ENERGEN for RMB 5 billion (USD 774.8 million)
🟩 China Automotive Semiconductor BYD Semiconductor Acquires Power Semiconductor Company
BYD Semiconductor is a semiconductor company that was spun off from Chinese EV giant BYD. It is one of China’s largest automotive semiconductor companies dealing with power semiconductors and microcontrollers for the EV market.
BYD Semiconductor has acquired ENERGEN of Jinan, Shandong Province, a Chinese power semiconductor company. The company was established in November 2018 as an important project supported by Shandong Province and Jinan City. Handling 100,000 wafers per month, it is planned to become the largest power semiconductor production plant in China. However, to date, the manufacture of semiconductors has not begun.
🟩 Why buy a factory that’s not operating?
ENERGEN was established in 2018 as a joint venture between Honghai Precision Industry of Taiwan and Jinan City. One of the reasons why we are unable to manufacture power semiconductors is that we cannot obtain permission for manufacturing facilities imported from overseas because of the relationship between Taiwanese companies. Therefore, the Chinese government wants to make its partners companies in China.
Worsening semiconductor shortage
In addition, the recent shortage of semiconductors has a large impact on the automotive industry. Rather than building a new factory, they want to utilize a wafer factory that is ready for production. Since power semiconductors are not advanced chips regulated by the United States, it is expected that permission to import equipment will be granted.
In order to address the semiconductor shortage in automobiles, BYD Semiconductor acquired a power semiconductor company
China, like Energen, has semiconductor manufacturing projects that have fallen short. There will be more projects by other companies in China, such as BYD Semiconductor.