China's Tian Yu Semiconductor Energy notches over $176m as it preps for IPO

China's Tian Yu Semiconductor Energy notches over $176m as it preps for IPO

Dongguan. Image from Unsplash by EvoMao.

Tian Yu Semiconductor Energy, which manufactures silicon carbide epitaxial wafer, a key ingredient in high-power devices, has notched 1.2 billion yuan ($176.7 million) in a funding round to expand its production capacity. 

China-Belgium Direct Equity Investment Fund, a fund set up by the Chinese and Belgian governments that aims to support the development of pre-IPO tech firms via equity investment; Technology Financial Group, an investment vehicle of the Guangdong provincial government; and Shenzhen-listed copper foils maker Guangdong Jia Yuan Technology are among the slew of state-affiliated investors that joined the round.

China Merchants Capital and Qianchuang Capital have also participated in the round.  

The news comes two weeks after CITIC Securities disclosed on January 19 that it had been appointed as the sponsor for Tian Yu’s IPO preparation process. It will be tutoring the firm regarding corporate governance and compliance, before moving to preparing and submitting related documents to the China Securities Regulatory Commission (CSRC).  

Normally, after CSRC finishes reviewing the application documents, the firm will move on to the initial public offering, according to Hong Kong-based law firm Charltons.  

Currently, Dongguan-based Tian Yu is set to wrap up the tutoring before May 2023, according to the disclosure published by CITIC Securities. 

Founded in 2009, Tian Yu counts major EV giants, including BYD, and SAIC Motor, as well as ​​China’s CATL, the world’s largest battery maker, among its backers. 

As the world’s largest emitter of carbon-dioxide, China has set a target to become carbon neutral before 2060. The move has prompted companies across the renewable energy, waste recycling, energy management, and even the semiconductor sectors to jump on the cleantech bandwagon.

Silicon carbide, known as SiC, which offers better energy efficiency compared with silicon, is crucial when it comes to lowering carbon emissions. 

Edited by: Joymitra Rai

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