[News] China’s Third-Generation Semiconductor Companies Rush Overseas

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Following the acceptance of the IPO application by Tianyu Semiconductor on the main board of the Hong Kong Stock Exchange (HKEX) on December 23, 2024, two other Chinese third-generation semiconductor companies, Innoscience and SICC, have also made moves towards listing on the Hong Kong market. Among them, Innoscience has already successfully gone public on the HKEX.

Innoscience’s HKEX Listing

On December 30, 2024, gallium nitride (GaN) power semiconductor manufacturer Innoscience officially listed on the main board of the HKEX.

Innoscience issued 45.364 million H-shares globally at an offering price of HKD 30.86 per share, raising approximately HKD 1.4 billion, with net proceeds of HKD 1.302 billion. According to its plans, the funds will primarily be used to expand 8-inch GaN wafer production capacity, enhance R&D and product portfolio, and grow its global GaN product distribution network.

Innoscience’s announcement of final offering prices and allotment results revealed the participation of four cornerstone investors, including STMicroelectronics, Jiangsu SOE Mixed Ownership Reform Fund, Dongfang Innovation Capital, and Suzhou High-End Equipment Fund, who collectively subscribed for USD 100 million worth of shares.

Innoscience has established China’s first complete 8-inch silicon-based GaN wafer and power device mass production line in Zhuhai. Additionally, its Suzhou factory, operational since October 2021, is the world’s largest 8-inch silicon-based GaN wafer manufacturing facility.

The company disclosed that in 2023, Innoscience ranked first globally among GaN power semiconductor companies in market share, accounting for 42.4% based on GaN discrete device shipment volumes. As of Q3 2024, Innoscience’s cumulative GaN shipments surpassed 1 billion units.

SICC Targets Dual Listing (A+H Shares)

On December 27, 2024, silicon carbide (SiC) substrate manufacturer SICC announced its intention to issue shares overseas (H-shares) and list on the HKEX to accelerate its internationalization strategy and overseas business layout.

SICC aims to enhance its offshore financing capabilities, increase its capital strength, and improve overall competitiveness. The company currently operates production facilities in Jinan and Jining, Shandong, with its Shanghai Lingang Smart Factory serving as the main production base for conductive SiC substrates.

SICC has achieved mass production of 8-inch conductive substrates, 6-inch conductive substrates, 6-inch semi-insulating substrates, and 4-inch semi-insulating substrates. Its conductive SiC substrate products have already been adopted by international industry leaders such as Infineon and Bosch in power electronics and automotive electronics applications.

Accelerating the Overseas Expansion of Third-Generation Semiconductor Companies

In recent years, driven by demand from consumer electronics and the rise of industries such as new energy vehicles (NEVs), data centers, photovoltaics, wind power, and industrial control, third-generation semiconductor companies focusing on materials like SiC and GaN have developed rapidly.

According to global market research firm TrendForce, the global GaN power device market reached USD 271 million in 2023 and is expected to grow to USD 4.376 billion by 2030, with a CAGR of 49%. Meanwhile, SiC continues to see accelerated adoption in applications requiring high power density and efficiency, such as automotive and renewable energy. The global SiC power device market is projected to reach USD 9.17 billion by 2028.

With substantial market opportunities and supportive national policies, Chinese semiconductor companies are entering a phase of rapid growth and have begun making a mark on the international stage.

The recent HKEX applications by SICC, Innoscience, and Tianyu Semiconductor signal their intent to accelerate global expansion, boost technology R&D and production capacity, and further internationalize while broadening financing channels and enhancing market competitiveness.

 

(Photo credit: Innoscience)