3 December 2021
HG completes share placement to boost R&D
Hong Kong-based HG Semiconductor Ltd has completed a placing of 14,346,000 shares (about 2.55% of its issued share capital) to not less than six placees at a price of HK$6.20 per share.
After deduction of the professional fee and other related expenses, net proceeds amounted to about HK$86.2m. The group intends to apply about HK$64.3m for strengthening its R&D capabilities in LEDs, mini-LEDs, fast charging products, and gallium nitride (GaN) devices and related semiconductor products. Net proceeds will also be used for the set-up of R&D centers, recruitment of R&D professionals, as well as the procurement of equipment and materials with the aim of developing and acquiring patents and technology. Meanwhile, the remaining HK$21.9m will be used to provide general working capital and improve the financial position of the group.
HG says that, leveraging its industrial expertise in semiconductor manufacturing, it has been expanding its business to various kinds of semiconductors including GaN-related products. In view of its long-term strategy to further develop its business in the GaN sector, HG says that it is setting up a new factory in the Xuzhou Economic and Technological Development Zone, comprising 7000m2 of cleanroom space and 850m2 of office area. A production line for manufacturing electronic products including GaN-related products will be installed in the Xuzhou Factory, the facilities of which will be further upgraded to full automation in the future.
The firm’s management has added core members to its Technology and Manufacturing team. Among them, Xuzhou Factory general manager Dr Chen Zhen has over 20 years of experience in R&D, production and management in GaN-based optoelectronics devices, including full-band solid-state light-emitting devices as well as proprietary technology for 8-inch silicon-based GaN epitaxial growth. Chen has applied for more than 30 domestic and foreign patents, and served as a reviewer for more than 10 international journals.
Moreover, Xuzhou Factory operation deputy general manager Lu Juilin has over 30 years of experience in semiconductor industry and foundry technology and management, with experience in managing 8-inch to 12-inch fab management and 55nm to 0.5μm chip manufacturing process factory management experience. He is also experienced in building new factories and worked as factory manager for Semiconductor Manufacturing International Corp (SMIC) and Hua Hong Semiconductor Ltd (HHS).
Senior consultant Dr Chang Ru Gin is the founder and former CEO of SMIC. Xuzhou Factory research deputy general manager Dr Thomas Hu has more than 20 years of experience in GaN device design and fabrication, in particular GaN high-electron-mobility transistors (HEMTs). Hu is experienced in semiconductor process control, fab operation and management and is in charge of new process recipe development, process optimization, 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 enhance the R&D capabilities of the group.
“The strategic investments of the group in VisIC Technologies and GaN Systems [fabless developers of GaN-based power conversion devices based in Israel and Canada, respectively] announced earlier on [in August and November, respectively] also represent our commitment venturing into the third-generation semiconductor industry, further enhancing our third-generation semiconductor design and manufacturing capabilities,” says HG’s chairman & executive director Zhao Yiwen. “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 capitalize on their factory management, project management and technical experience to design and produce leading-edge semiconductor products,” he adds.