An in-depth back story of a troubled China SiC substrate supplier. Quite long so just posted bullet points on top of story.
laoyaoba.com
1. Roshow has a history of failed mergers and acquisitions in the past, almost all of which are classified as bad debts. The company's main business has poor hematopoietic capabilities. At this stage, most of the funds raised from additional issuance are used for industrial park construction, which is expected to be difficult to support the company's continuous R&D expenditure on 8-inch SiC substrates.
Hefei Roshow’s SiC production capacity is progressing slowly, and the expected production capacity of 100,000 pieces in 2021 has been delayed. Currently, the production capacity is 6,000 pieces/month. It is expected to release 10,000 pieces/month of production capacity in April next year, which is in line with the company’s plan to achieve 20 pieces by the end of 2023. The production capacity planning of 10,000 pieces/month varies greatly.
2. Deeply relying on Dr. Chen Zhizhan's team, the company's management has almost no industry precipitation in the third-generation semiconductor industry. If there is a disagreement in principle, the company's bet on SiC's industrial development path may encounter a devastating blow.
3. The company currently has 280 crystal growth furnaces in place. As of the end of June, 224 have completed the preliminary commissioning work, and the overall yield rate is 50%. The second and third phases of the industrial park have not yet started construction. There is 1 year. |
