On March 19, 2021, Roshow Technology disclosed the “Announcement on Signing the Equity Transfer Agreement of a Wholly-owned Subsidiary and Related Transactions”, stating that it intends to transfer its wholly-owned subsidiary Zhejiang Lutong Electromechanical Co., Ltd. (hereinafter referred to as “Lutong Electromechanical”). 100% equity, and then Roshow Technology received a letter of concern from the Shenzhen Stock Exchange. In this regard, Roshow Technology gave an official reply on March 24.
Roshow Technology pointed out that the main business of Lutong Electromechanical is the research and development, manufacturing and sales of motors, which does not fit well with the company’s future industrial planning. The sale of 100% equity of Lutong Electromechanical aims to optimize the company’s industrial structure and reduce the company Capital investment in non-main business allows the company to better focus on the silicon carbide business.
According to the strategic plan, Roshow Technology will actively invest in the strategic emerging industries of silicon carbide in the future, and plans to build the company into a third-generation semiconductor substrate company focusing on silicon carbide. Li Chentao, secretary of the board of Roshow Technology, also said in an interview with a reporter from “Securities Daily” that the silicon carbide business is a strategic emerging industry that the company actively invests in. “Lutong Electromechanical is mainly engaged in the manufacture and sales of motors. In order to further focus on the silicon carbide business, the company plans to sell 100% of the equity of Lutong Electromechanical.”
In fact, in recent years, Roshow Technology is focusing on the layout of the silicon carbide field.
At the end of 2019, Roshow Technology also signed a strategic cooperation agreement with Sinosteel and Guohong Zhongyu. The three parties agreed to work together to develop 4-inch, 6-inch, 8-inch and even larger products suitable for Sinosteel’s technological requirements. Size-level silicon carbide crystal growth equipment; jointly build a silicon carbide substrate wafer processing center.
In 2020, Roshow announced plans to invest 1 billion yuan and 10 billion yuan to increase the silicon carbide business.
On April 12, 2020, Roshow Technology issued a non-public offering plan, saying that the total amount of funds to be raised should not exceed 1 billion yuan to invest in the production of silicon carbide crystal materials and R&D centers.
Among them, the new silicon carbide substrate wafer industrialization project with a total investment of 695 million yuan has officially started on July 30, 2020. The project plans to produce silicon carbide substrates and other products. The project products have large size, wider band gap, higher breakdown electric field, higher thermal conductivity, higher electron saturation and higher radiation resistance ability.
On August 9, 2020, Roshow Technology announced that it will jointly invest in the construction of a third-generation power semiconductor (silicon carbide) industrial park with Hefei Changfeng County People’s Government in Changfeng County, Hefei, including but not limited to silicon carbide and other second-generation power semiconductors. R&D and industrialization projects of third-generation semiconductors, including R&D and production of silicon carbide crystal growth, substrate fabrication, and epitaxial growth. At present, the project has officially started in November 2020.
According to the performance forecast, in 2020, Roshow Technology will increase investment in technological transformation and research and development of silicon carbide semiconductor materials, and the annual growth of research and development expenses will be more than 100%, which is expected to exceed 60 million. At present, Roshow has made breakthroughs in a number of key technologies in silicon carbide crystal growth furnaces and crystal growth links, and has achieved trial production of 6-inch silicon carbide substrates. In addition, the silicon carbide crystal growth furnace independently developed by Roshow has been sold, and downstream customers have been put into production.
Roshow Technology said that in 2021, the company will continue to focus on the silicon carbide industry, continue to increase investment in research and development of silicon carbide, accelerate the construction of the company’s semiconductor material production capacity, and strive to build the company into a third-generation semiconductor focusing on silicon carbide. Substrate Company.