Core Viewpoint - The semiconductor industry is shifting towards third-generation semiconductors, particularly silicon carbide (SiC), which is being widely adopted in high-voltage and high-current applications such as electric vehicles and renewable energy systems [1][2]. Group 1: Industry Trends - The market for third-generation semiconductor materials is experiencing significant growth, driven by the superior properties of SiC, including high breakdown electric field strength, high thermal conductivity, and wide bandgap [1]. - The global market for SiC discrete devices is expected to grow at a compound annual growth rate (CAGR) of 32.2% from 2020 to 2024, with sales revenue projected to increase from 1.6 billion to 5 billion [6]. - The Chinese market for SiC discrete devices is anticipated to grow at a CAGR of 65.4% from 2020 to 2024, with sales revenue expected to rise from 0.3 billion to 1.9 billion, contributing 38.4% to the global market by 2024 [6]. Group 2: Company Overview - Shenzhen Basic Semiconductor Co., Ltd., a leading Chinese company in the SiC chip sector, has submitted its listing application to the Hong Kong Stock Exchange, backed by major securities firms [2][3]. - Established in 2016 by a team of PhDs from Tsinghua University and the University of Cambridge, the company focuses on the research, development, manufacturing, and sales of SiC power devices [2]. - Basic Semiconductor is the only domestic company that integrates SiC chip design, wafer manufacturing, module packaging, and gate driver design and testing capabilities, achieving mass production across all segments [2]. Group 3: Financial Performance - Basic Semiconductor reported revenues of approximately 0.117 billion, 0.221 billion, and 0.299 billion from 2022 to 2024, showing significant year-on-year growth [5]. - The company incurred losses of approximately 0.242 billion, 0.342 billion, and 0.237 billion during the same period, totaling a cumulative loss of 0.821 billion [5]. - Research and development expenses increased from 0.059 billion in 2022 to 0.091 billion in 2024, reflecting the company's commitment to innovation despite ongoing losses [5]. Group 4: Market Position and Challenges - Basic Semiconductor ranks seventh globally and sixth in China in the SiC power module market by revenue as of 2024, positioning itself as a significant player in the domestic third-generation semiconductor sector [4]. - The company faces challenges due to the capital-intensive nature of the semiconductor industry, with rising financing costs and long return cycles impacting cash flow [11]. - Despite the high volatility and long cycles associated with the industry, Basic Semiconductor's potential for long-term growth remains strong, particularly if it successfully capitalizes on technological advancements [11].

Core Viewpoint - Basic Semiconductor has officially submitted its listing application to the Hong Kong Stock Exchange, positioning itself as a leading player in China's third-generation semiconductor power device industry, focusing on the research, manufacturing, and sales of silicon carbide power devices [2] Company Overview - Basic Semiconductor is the only company in China that integrates silicon carbide chip design, wafer manufacturing, module packaging, and gate driver design and testing capabilities [2] - The company has established a comprehensive product portfolio, including silicon carbide discrete devices, automotive-grade and industrial-grade silicon carbide power modules, and power semiconductor gate drivers [2][5] Market Position - According to Frost & Sullivan, Basic Semiconductor ranks seventh globally and sixth in China in the silicon carbide power module market by revenue for 2024, and third among Chinese companies [2] - The company has achieved significant sales growth, with revenue increasing from RMB 116.9 million in 2022 to RMB 220.6 million in 2023, and projected to reach RMB 299 million in 2024 [7] Product Applications - Basic Semiconductor's solutions serve various industries, including electric vehicles, renewable energy systems, energy storage systems, industrial control, data centers, and rail transportation [2] - The company has delivered over 90,000 units of its products for electric vehicle applications as of December 31, 2024, with sales of silicon carbide power modules increasing from over 500 units in 2022 to over 30,000 units in 2023, and further to over 61,000 units in 2024 [7] Technological Advancements - Basic Semiconductor holds 163 patents and has submitted 122 patent applications, with core product performance reaching international benchmark levels [5] - The company has established a research and development center in collaboration with Tsinghua University and has been recognized as a collaborative innovation center for third-generation semiconductors [5] Business Model - Basic Semiconductor operates under an IDM (Integrated Device Manufacturer) model, covering the entire value chain from silicon carbide chip design to wafer production and module packaging, with all processes achieving mass production [6] - The company plans to expand its packaging capacity in Shenzhen and Zhongshan, aiming to achieve significant supply chain and cost advantages [6]

Core Viewpoint - Shenzhen Basic Semiconductor Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, aiming to capitalize on its position in the silicon carbide power module market, where it ranks seventh globally and sixth in China based on projected 2024 revenue [1][4]. Company Overview - Basic Semiconductor is a leading enterprise in China's third-generation semiconductor power device industry, focusing on the research, manufacturing, and sales of silicon carbide power devices [4]. - The company is the only one in China that integrates silicon carbide chip design, wafer manufacturing, module packaging, and gate driver design and testing capabilities [4][5]. - Basic Semiconductor is among the first in China to mass-produce and deliver silicon carbide solutions for electric vehicles, which is the largest end-use market for silicon carbide semiconductors [4]. Product and Market Position - The company has established a comprehensive product portfolio, including silicon carbide discrete devices, automotive-grade and industrial-grade silicon carbide power modules, and power semiconductor gate drivers [4]. - Basic Semiconductor serves various industries, including electric vehicles, renewable energy systems, energy storage systems, industrial control, data centers, and rail transportation [4]. - The company has built high entry barriers and long-term partnerships with customers, achieving design-in with over 50 models from more than 10 automotive manufacturers [4]. Financial Performance - Basic Semiconductor's revenue for the fiscal years 2022, 2023, and 2024 was approximately RMB 117 million, RMB 221 million, and RMB 299 million, respectively [6][9]. - The company reported losses of approximately RMB 242 million, RMB 342 million, and RMB 237 million for the same periods [6][9]. - The sales volume of silicon carbide power modules increased significantly from over 500 units in 2022 to over 30,000 units in 2023, and is projected to exceed 61,000 units in 2024 [6]. Market Growth - The global silicon carbide power device market is expected to grow from RMB 4.5 billion in 2020 to RMB 22.7 billion in 2024, with a compound annual growth rate (CAGR) of 49.8% [6]. - The penetration rate of silicon carbide in the global power device market is projected to rise from 1.4% in 2020 to 6.5% in 2024, and further to 20.1% by 2029 [6].