BYD invests in TYSiC
TYSiC has been China’s first company in the silicon carbide semiconductor material supply chain to obtain automotive industry quality certification
BYD buys six African lithium mines
BYD invests in Chinese semiconductor manufacturers
According to reports from the IT Times, the Chinese electric car manufacturer and Tesla competitor BYD is now one of the investors in the semiconductor manufacturer TYSiC, which also comes from China. However, nothing more precise is known about the purchase price of the shares and the exact participation in TYSiC.
In addition, BYD is currently working on the pending IPO of its subsidiary and semiconductor unit BYD Semiconductor on the Shenzhen Stock Exchange (SZSE), which has recently experienced increased delays. Overall, the IPO should bring the company 2.68 billion US dollars, which should be used to finance further growth.
The Chinese automaker’s plan to enter the semiconductor market coincides with the ever-increasing demand for semiconductors. According to Statista, in the last ten years alone, sales in the global semiconductor industry have increased from around 299 billion US dollars (2011) to around 555 billion US dollars (2021). In addition, the automotive industry has been faced with the problem of a semiconductor shortage for some time. Although the availability of chips is improving again, according to an AlixPartners study, the supply bottlenecks are likely to slow down the automotive industry until 2024.
About TYSiC
The semiconductor manufacturer, of which BYD now counts itself an investor, was founded in 2009 and is now China’s first private company engaged in the marketing, R&D and manufacture of epitaxial silicon carbide (SiC) wafers. It is also China’s first company in the silicon carbide semiconductor material supply chain to obtain the quality certification for automotive industry (IATF 16949). In 2010, the company established the Silicon Carbide Institute together with the Institute of Semiconductors of the Chinese Academy of Sciences. According to the company, some of the greatest talents in this field come together here.
Lithium mines in Africa
However, the stake in the semiconductor manufacturer is not BYD’s only investment in recent weeks. As Yicai Global also reports, citing The Paper, BYD has also acquired six African lithium mines in order to be supplied with the important raw material for EV batteries for ten years. However, this purchase should only be the beginning. Accordingly, the Chinese company intends to buy all lithium mines there. This information should be traced back to a person familiar with the matter. However, more detailed information such as the location of the mines or the selling price was not given.
The six mines are said to have a total of 25 million tons of lithium oxide deposits, which corresponds to around one million tons of lithium carbonate. The first deliveries from the mines are scheduled to begin as early as July, and in the next quarter the lithium extracted there will finally be used to manufacture BYD’s new blade batteries. Here, too, the Chinese electric car manufacturer is reacting to rising prices and limited production capacities. In the long term, BYD could make itself less dependent on rising prices by purchasing lithium mines.
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