Key Takeaways:
The company makes silicon carbide chips and products including power modules for electric cars and industrial uses
It has reported a string of annual losses, dogged by negative gross margins as a rapid industry-wide expansion has slashed semiconductor prices
China's push to develop a self-sufficient chip industry is morphing into a scramble for investor cash.
As Hong Kong's IPO market perked up this year, companies in China's semiconductor sector have been lining up to seek market listings, including producers of silicon carbide (SiC), a key ingredient for smart chips used in advanced electronics.
The compound has been designated a strategic material in China's industrial ambitions, vital for electric vehicles, energy storage systems and power relays. However, the rush to deliver the conductive material in substrate, wafer or power device form has caused a capacity surge that is squeezing profits and sowing uncertainty about the industry outlook.
Against this challenging backdrop, a producer of SiC devices, BASiC Semiconductor Co. Ltd., is making a second attempt at securing a trading spot on the Hong Kong Stock Exchange, recently submitting a refreshed IPO application.
Several SiC companies have beaten a path to Hong Kong this year, with differing results. SICC (2631.HK; 688234.SH), which produces substrates, achieved a dual listing there and was positively received by investors. Tianyu Semiconductor (2658.HK), focused on silicon carbide epitaxial wafers, made a weak debut last week, while another wafer specialist, Epiworld International, is bidding to join them on the Hong Kong market but has yet to achieve its goal.
BASiC Semiconductor develops and manufactures silicon carbide power devices for use in automotive and industrial electronics. Although its first IPO attempt was unsuccessful, ...
