HG Semiconductor Enters into Cooperation Framework Agreement with China Titans Energy

HG Semiconductor Limited (“HG Semiconductor”, together with its subsidiaries, “the Group”; stock code: 6908.HK) is pleased to announce that the Group entered into a cooperation framework agreement (“Cooperation Framework Agreement”) with China Titans Energy Technology Group Co., Limited (“China Titans Energy”; Stock Code: 2188.HK) on 31 May 2022, to commence three-year strategic cooperation.

China Titans Energy focuses on the development of power electronics, aiming to use the advanced technology of power electronics and automation control to address the needs of power transformation, supervision, controlling, optimisation, energy-saving and new energy utilization. Pursuant to the Cooperation Framework Agreement, the Group and China Titans Energy intend to cooperate on fast charging pile technology promotion and product sales in Mainland China and Hong Kong, to promote complementarity between the strength of both parties in their respective business areas:

i) China Titans Energy will provide support for the Group to build advanced fast charging pile products, run fast charging pile services in Hong Kong and jointly launch fast-charging system solutions. Both parties will leverage the unique advantage of the Group in being in cooperation with a statutory body in Hong Kong, to jointly promote the development of the Hong Kong smart city and provide upgrades to the electric vehicles and charging facilities in Hong Kong, so as to achieve the international standard of 400 kilowatts direct current charging, data on the cloud, safety monitoring etc for smart management. The new energy fast charging solution is expected to become a pioneer solution in Hong Kong and will help to create a new local business model and investment opportunities, such as constructing a vehicle-to-grid (V2G) energy network, distributed energy storage and grid-level direct current electrical substation;

ii) both parties will cooperate in the research and development of the new generation fast charging piles using the third-generation semiconductor technology provided by the Group; and

iii) HG Semiconductor will engage China Titans Energy for the manufacture of, and supply the Group’s customers in Mainland China and Hong Kong with, the new generation fast charging piles under the brand of the Group.

The “New-Energy Vehicle Industry Development Plan for 2021-2035” under the Fourteen Five-Year Plan of China has deployed five strategic tasks, including i) improving technological innovation capability, ii) constructing a new industrial ecology, iii) promoting industrial integration development, iv) improving the infrastructure system, and v) deepening open cooperation; at the same time the development plan explicitly pointed out the necessity of establishing a technological innovation system with enterprises as the main body, strengthening the infrastructure such as charging and replacing, while the battery management system and batteries are also recognized as one of the key development technologies. Meanwhile, the Hong Kong government also announced the roadmap for the popularization of electric vehicles, aiming to achieve zero emissions for all vehicles by 2050, so that Hong Kong can move towards the vision of zero carbon emissions, clean air and a smart city in an orderly manner. In recent years, the Hong Kong government has been actively promoting “re-industrialisation” and the development of advanced manufacturing industries based on new technologies and intelligent production, which has injected a steady stream of impetus into the development of the third-generation GaN business in the city.

The management of the Group is delighted to have China Titans Energy as its strategic partner to advance the re-industrialisation of Hong Kong’s next-generation semiconductor industry and the development and construction of smart cities in Hong Kong. The Group has obtained six fast-charging battery system patents in 2021 for charging stations, charging conversion systems, charging modules and fast-charging equipment for electric vehicle charging stations. The Cooperation marks the gradual progress of HG Semiconductor towards the goal of harvesting, providing the Group with the opportunity to commercialize its fast-charging battery products under its own brand in Mainland China and Hong Kong, and accelerating the pace of achieving production capacity. With the growing popularity of electric vehicles in Mainland China and Hong Kong, there is a promising business prospect for the development and commercialization of next-generation charging piles in both places. The Group will strive to explore opportunities of establishing a business presence in Hong Kong for fast charging battery solutions and is confident that it will pioneer revolutions and drive new trends within the industry.

About HG Semiconductor Limited
HG Semiconductor Limited (6908.HK) is principally engaged in the semiconductor product business in China, including the design, development, manufacturing, subcontracting services and sales of light-emitting diode (“LED”) beads, new generation of semiconductor gallium nitride (“GaN”) chips, GaN components and related application products, as well as fast charging products. Leveraging its industry expertise in LED manufacturing, the Group is dedicated to accelerating its research and development and expansion in the application of GaN related products, with an aim to become a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips, as well as providing total solutions with higher efficiency and competitive system cost.

For more details, please visit www.hg-semiconductor.com






Topic: Press release summary

Improved Semiconductor Supply Drives Significant Year-over-Year Market Share Gains for GM in Key Truck Segments

More than 40% of U.S. retail customers in the full-size pickup market bought Chevrolet and GMC trucks during the first quarter, while full-size SUV retail share approached 70%

DETROIT – WEBWIRE



General Motors Co. (NYSE: GM) sold 512,846 vehicles in the United States in the first quarter of 2022, with improved semiconductor supplies supporting higher production and market share in key truck segments.


“Our ability to meet pent-up demand improved dramatically thanks to a tremendous effort by our supply chain and manufacturing teams to keep our plants operating at close to normal levels,” said Steve Carlisle, executive vice president and president, GM North America. “Supply chain disruptions are not fully behind us, but we expect to continue outperforming 2021 production levels, especially in the second half of the year.”


According to GM Chief Economist Elaine Buckberg, industry light vehicle volumes will grow this year and top 2021 levels, thanks to a strong labor market, higher vehicle production and pent-up demand.


“Ordinarily, a U.S. economy this strong would translate into light vehicle sales in the 17-million range,” she said. “Improvements in the supply chain should lift auto sales as the year progresses, despite headwinds from higher inflation and fuel prices.”


Production, Deliveries and Inventory Highlights


GM estimates total light vehicle SAAR for the first quarter was 14.1 million, down from 16.8 million a year ago, due to lower inventory and production levels. GM deliveries in the first quarter were down 20% from a year ago, but they were up 16% from the fourth quarter.


GM’s production in North America has increased sequentially each quarter since the end of September 2021, and the company ended the first quarter with 273,760 vehicles in dealer inventory, including in-transit units, which are rising. Inventories were 128,757 units at the end of the third quarter of 2021, and 199,662 at the end of the fourth quarter. GM expects inventory to remain relatively low throughout the year due to high demand.


GM Extends its Truck Leadership


GM’s performance, along with a more stable operating environment, has already translated into market share gains for GM in key truck segments:

  • The combined retail market share of the Chevrolet Silverado HD and GMC Sierra HD pickups was a segment-leading 41.5% during the first quarter, according to J.D. Power PIN – up more than 10 percentage points from a year ago and GM’s strongest quarter in HD retail market share in over a decade.
  • The Chevrolet Silverado 1500 and GMC Sierra 1500 also led their segment during the quarter, with combined retail market share of nearly 42%, up 2.6 points year over year, according to J.D. Power PIN.
  • The combined retail market share of the Chevrolet Tahoe, Chevrolet Suburban and GMC Yukon and Yukon XL reached 69% during the first quarter, up 5 points year over year.  GM’s sales in the segment were up 10%.
  • The Cadillac Escalade had its best first quarter since 2007, with a 7% sales increase.


In another sign of robust economic growth, commercial customers have been upgrading and expanding their fleets. GM delivered its best commercial sales quarter in nearly three years with sales velocity at the end of the quarter reaching a 15-year high. In the commercial market, sales of full-size pickups were up 5%, compact SUVs up 131% and mid-size pickups up 23%.


Total first-quarter deliveries of the Chevrolet Low Cab Forward were up 48% compared to a year ago. The Chevrolet Silverado medium duty line, which is a popular choice for upfitters, was up 23%.


Fleet sales, which were 24% of GM total sales in the first quarter, grew 10% year over year, with commercial and government deliveries up 14% and 18%, respectively. Chevrolet Tahoe sales to government customers increased 243%.


Electric Vehicle Production Ramps Up


The first quarter saw GM reach several milestones as the company scales EV capacity in North America to more than 1 million units by the end of 2025.

  • GMC’s launch of the HUMMER EV is going according to plan, with early production focused on satisfying orders of the launch edition.
  • Production of the Chevrolet Bolt EV and Bolt EUV will resume on April 4. Chevrolet dealers continue to repair customer vehicles and recently resumed deliveries of some completed Bolt EV and Bolt EUVs in inventory.
  • Production of the Cadillac LYRIQ began on March 21, nine months ahead of the company’s original target. Cadillac will begin taking orders for future editions on May 19.


General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.

HG Semiconductor Announces Establishment of Global Strategic Advisory Committee

HG Semiconductor Limited (“HG Semiconductor”, together with its subsidiaries, “the Group”, Stock Code: 6908.HK) is pleased to announce its establishment of its Global Strategic Advisory Committee with an aim to strengthen the Group’s business operations. The Advisory Committee initially consists of three members – Mr. Sonny Wu (“Mr. Wu”) was appointed as chairman of the Global Strategic Advisory Committee, while Mr. Kenneth James Bradley (“Mr. Bradley”) and Mr. Tang Yin Man (“Mr. Tang”) were appointed as members of the committee. The committee will report and advise the management of the Group with sound strategic and tactical advice on issues that the Group may face from time to time, including but not limited to matters relating to the gallium nitride (“GaN”) and semiconductor industry, including factory localisation in Hong Kong, China and global supply chain programmes.

Mr. Sonny Wu, chairman of the Global Strategic Advisory Committee, is currently the Chairman of GoldenSand Capital Ltd with a special investment focus in the realms of semiconductors, new materials and new energy, including Silevo Solar (acquired by Tesla/SolarCity in 2014), SEEO, Inc solid-state battery (the world’s first solid-state battery company, acquired by Robert Bosch GmbH in 2013) and Advanced Lithium Electrochemistry (Cayman) Co. Ltd. (world’s leading supplier of high-end lithium iron phosphate battery cathode materials, and its cumulative shipments of high-end products ranking first in the world) etc. Mr. Wu led the development of the first batch of semiconductor factory in China in 1993 and worked together with Mr. Bradley to localise the first BiCMOS manufacturing line in China, which has become what is known today the factory for GTA Semiconductors (formerly known as Shanghai Advanced Semiconductors). He has made contributions in technology and industrial investments in the past 20 years and has extensive management and notable investment experience in the field of semiconductor, as well as solar technology, new energy solution, battery and fast charging solution. He studied at the University of British Columbia, Canada and University of California, Berkeley and Massachusetts Institute of Technology (“MIT”). He served as the Sloan Fellows’ Board of Governors at MIT for 5 years.

Mr. Kenneth James Bradley, one of the members of the Global Strategic Advisory Committee, is currently the founder, chief executive officer and chairman of Lytica Inc., an electronics component supply chain analytics and risk intelligence company. Mr. Bradley has over 40 years of experience in the electronics industry and was formerly the chief executive officer of Coresim Inc, a leader in advanced design analysis and redesign services. Mr. Tang Yin Man, another committee member, possesses extensive experience in strategic investment and portfolio management worldwide and has worked on technology investment in new materials and also EV space. He also worked in numerous leading investment management companies in Europe and Asia for over 22 years.

The management of the Group would like to express their warmest welcome to Mr. Wu, Mr. Bradley and Mr. Tang for joining the Global Strategic Advisory Committee, sharing their valuable insights in the Group’s third-generation semiconductor business, future strategic investment and development. With their extensive experience in the semiconductor industry, the three committee members will lead HG Semiconductor to design and produce leading-edge semiconductor products in the long run in future, enabling the Group to stand out in the highly competitive market. The management believes that, with the support from the members of the Global Strategic Advisory Committee, the Group is capable of building a world-class third-generation semiconductor industry chain platform leveraging its accumulated experience and competitive edge in the semiconductor industry, striving to further enhance its business performance and create long-term value for shareholders.

About HG Semiconductor Limited
HG Semiconductor Limited (6908.HK) is principally engaged in semiconductor product business in China, including the design, development, manufacturing, subcontracting services and sales of light-emitting diode (“LED”) beads and a new generation of semiconductor gallium nitride (“GaN”). The Group is committed to accelerating its research and development and expansion in the application of GaN related products, with an aim to become a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips, as well as providing total solutions with higher efficiency and competitive system cost.

For more details, please visit www.hg-semiconductor.com






Topic: Press release summary

HG Semiconductor Completed Placing of 14,346,000 Shares

HG Semiconductor Limited (“HG Semiconductor”, together with its subsidiaries, “the Group”, Stock Code: 6908.HK) is pleased to announce that the Group fulfilled and completed the placing agreement took place on 1 December 2021. An aggregate of 14,346,000 placing shares, representing approximately 2.55% of the issued share capital of the Group, have been successfully placed to not less than six placees at the placing price of HK$6.20 per placing share.

The net proceeds from the placing, after deduction of the professional fee and other related expenses, amounted to approximately HK$86.2 million. The Group intends to apply approximately HK$64.3 million for strengthening its research and development (“R&D”) capabilities of LED, Mini LED, fast charging, gallium nitride (“GaN”) devices and related semiconductor products. Such amount of net proceeds will be used for the set-up of R&D centres, recruitment of R&D professionals, as well as procurement of equipment and materials with an aim to develop and capture patent and technology. Meanwhile, approximately HK$21.9 million will be used for providing general working capital and improving the financial position of the Group.

Leveraging its industrial expertise on semiconductor manufacturing, HG Semiconductor has been expanding its business to various kinds of semiconductors including GaN related products. In view of its long-term strategy in further developing its business in the GaN semiconductor industry, HG Semiconductor is pleased to announce that it is setting up a new factory in the Xuzhou Economic and Technological Development Zone, which comprises 7,000 square metres of ultra clean chambers and 850 square metres of office area (“Xuzhou Factory”). It is contemplated that a production line for manufacturing electronic products including GaN related products will be installed in the factory, the facilities of which will be further upgraded to full automation in the future.

The management of the Group is also delighted to introduce the experienced and professional core members of its Technology and Manufacturing team. Among them, Dr. CHEN Zhen (“Dr. CHEN”), the core expert in the GaN semiconductor business and the General Manager of the Xuzhou Factory, has over 20 years of experience in R&D, production and management in the field of GaN-based optoelectronics devices. He has mastered the core technologies of GaN electronic devices and full-band solid-state light-emitting devices as well as proprietary technology of 8-inch silicon-based GaN epitaxial growth. Dr. CHEN has applied for more than 30 domestic and foreign patents, and served as a reviewer for more than 10 international journals. Moreover, Mr. LU Juilin (“Mr. LU”), the Operation Deputy General Manager of the Xuzhou Factory, has over 30 years of experience in semiconductor industry and foundry technology and management, with experience in managing 8 to 12-inch fab management and technical experience and 55nm to 0.5um chip manufacturing process factory management experience. He is also experienced in building new factories and he worked as the Factory Manager of Semiconductor Manufacturing International Corporation (“SMIC”; stock code: 0981.HK) and Hua Hong Semiconductor Limited (“HHS”; stock code: 1347.HK).

Dr. CHANG Ru Gin (“Dr. CHANG”), known as the “Father of the Chinese Semiconductor”, is the Senior Consultant of the Group. He is also the founder and the former CEO of SMIC. Dr. CHANG is one of the leading figures of the semiconductor industry and an industry leader of the PRC semiconductor market. Dr. Thomas HU (“Dr. HU”), the Research Deputy General Manager of the Xuzhou Factory, has more than 20 years of work experience in GaN device design and fabrication in the world’s leading company, and was the key member in GaN HEMT device design and fabrication. Dr. HU is experienced in semiconductor process control, fab operation and management and is in charge of new process recipe development, process optimisation, new product development, product quality control and yield improvement for GaN HEMT devices and products. It is expected that the core members of the Technology and Manufacturing team will substantially enhance the R&D capabilities of the Group, which will be beneficial to the development of the Group’s business as a whole.

Mr. ZHAO Yiwen, Chairman and Executive Director of HG Semiconductor said, “The Group is excited to announce multiple positive news, in particular, the establishment of our new Xuzhou Factory which sets a new milestone in our development. The strategic investments of the Group in VisIC Technologies and GaN Systems announced earlier on also represent our commitment venturing into the third-generation semiconductor industry, further enhancing our third-generation semiconductor design and manufacturing capabilities. With new appointments of experienced and professional core members of the Technology and Manufacturing team, we strongly believe that the team, who are all world-class seasoned professional in the semiconductor industry, can capitalise on their factory management, project management and technical experience to design and produce leading-edge semiconductor products, thus enabling us to stand out in the highly competitive market. Leveraging our competitive edge in the GaN semiconductor industry, the Group will capture every market opportunity, with an aim of achieving our long-term business goal to become a leading GaN semiconductor company.”

About HG Semiconductor Limited
HG Semiconductor Limited (6908.HK) is principally engaged in semiconductor product business in China, including the design, development, manufacturing, subcontracting services and sales of light-emitting diode (“LED”) beads and a new generation of semiconductor gallium nitride (“GaN”). The Group is committed to accelerating its research and development and expansion in the application of GaN related products, with an aim to become a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips, as well as providing total solutions with higher efficiency and competitive system cost.

For more details, please visit www.hg-semiconductor.com






Topic: Press release summary

HG Semiconductor Announces its Strategic Investment in GaN Systems Inc.

HG Semiconductor Limited (“HG Semiconductor”, together with its subsidiaries, “the Group”, Stock Code: 6908.HK) is pleased to announce that FastSemi Holding Limited, a wholly-owned subsidiary of the Group, has invested in GaN Systems Inc. (“GaN Systems”), a leader in gallium nitride (“GaN”) technology, and agreed to invest by subscribing for the series F-2 convertible preference shares in GaN Systems as a strategic investor.

Incorporated in Canada, GaN Systems is principally engaged in developing a broad range of GaN related products including high current GaN power semiconductors. With in-depth knowledge in GaN technology, the management team of GaN Systems combines decades of experience in developing GaN products. As a GaN power transistor company, GaN Systems currently ships to automotive, consumer, industrial, and data centre customers globally, and global companies rely on their transistors to reduce levels of carbon dioxide emissions and increase the utility and energy efficiency of their power systems. GaN Systems anticipates a capital funding round to accelerate innovation and adoption of GaN technology across its automotive, consumer, industrial, and enterprise markets. This strategic investment is also joined by BMW i Ventures, a top-tier car manufacturer and existing investor of GaN Systems, along with Fidelity, Vitesco Technologies and others. Subsequent to this investment, HG Semiconductor will be able to nominate an independent board observer from Canada to be on the board of GaN Systems.

Leveraging its industrial expertise on semiconductors manufacturing, HG Semiconductor has been expanding its business to various kinds of semiconductors including GaN related products. To further develop and deepen its presence in GaN semiconductor sector, the Group seeks to capitalise on the extensive experience, resources and expertise of GaN Systems, thereby developing its GaN semiconductor business to achieve the business goal of becoming a leading and innovative player in the sector.

Mr. ZHAO Yi Wen, Chairman and Executive Director of HG Semiconductor said, “The Group expects this strategic investment will lay a solid foundation for its future development and prospects in its GaN semiconductor business. Upon completion of the investment, we expect both the Group and GaN Systems may have the opportunity to pool our respective advantages to each other, creating synergistic effects. In particular, GaN Systems can provide dedicated technical support (from Ottawa, California and Taiwan) to the Group for process definition and qualification of GaN device manufacturing to achieve best-in-class yield targets and targeted qualifications. Such technical support may include elements of the developed process that are proprietary to GaN Systems only, and alignment on intellectual property strategy for resulting process know how. The Group will also be able to obtain technical support for reference design in internet data centre (IDC) power systems, electric vehicle (EV), and solar inverter applications from GaN Systems on most favoured nation terms. Furthermore, GaN Systems also proposes to qualify the subsidiary of the Group as a foundry partner to GaN Systems and enter into a licence agreement whereby the Group may use certain GaN technology of GaN Systems for manufacturing its semiconductors components. With our strategic blueprint in place, we strive to further enhance our business performance in order to create long-term value for our shareholders.”

About HG Semiconductor Limited
HG Semiconductor Limited (6908.HK) is principally engaged in semiconductor product business in China, including the design, development, manufacturing, subcontracting services and sales of light-emitting diode (“LED”) beads, LED lighting products, fast charging products and a new generation of semiconductor gallium nitride (“GaN”) related products. Leveraging its industry expertise on LED manufacturing, the Group is committed to accelerating its research and development and expansion in the application of GaN related products, with an aim to become a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips. The Group strategically holds 21.86% stake in VisIC Technologies Limited, leveraging respective advantages to jointly develop GaN related chips and products.

For more details, please visit http://www.lighting-hg.com/en.

About GaN Systems Inc.
GaN Systems, headquartered in Ottawa (Canada), is the leader in Gallium Nitride (GaN) based power management devices, and delivers its products to automotive industries, Internet Data Centers (IDC) and renewable energy.

For more details, please visit https://gansystems.com.


Topic: Press release summary