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China's Biggest Automotive Chip Maker IPO Efforts Suspended by Government Crackdown

BYD Semiconductor Silicon Wafer
(Image credit: BYD Semiconductor (via China Daily))

Chinese electric vehicle (EV) maker BYD has a semiconductor division named BYD Semiconductor, which had plans to go public on the Shenzen Stock Exchange. Originally filled for initial public offering (IPO), BYD Semiconductor wanted to start trading publicly as soon as possible, however, IPO efforts were stopped by the government crackdown on business.

According to the latest report from BBC News, the Chinese firm BYD Semiconductor is looking to go public on the Shenzen Stock Exchange, however, due to some issues with the law firm preparing BYD Semiconductor to enter the public trading scene, a regulatory investigation is being conducted.

Beijing Tian Yuan Law Firm, one of China's biggest legal services firms, has recently been under investigation by the government for its practices by China's Security Regulatory Commission. There are no details as to why the investigation is happening, other than the fact that it exists, thus stopping BYD Semiconductor from making any moves into the public trading sector.

BYD Semiconductor is China's largest supplier of microcontrollers and various other chips for the EV market. With the current chip shortages present across the whole industry, semiconductor firms are subject to a lot of attention from clients, and even governing bodies to oversee their operations.

As Chinese authorities tighten the industry with more regulations, it is a question if BYD Semiconductor goes public any time soon. It could take many additional months for legal disputes to end, and the Chinese government could require additional paperwork for the legal services firm to provide so BYD Semiconductor manages to file for public trading. If the company enters the public sector, it could raise additional funds to further develop its chip-making business, easing off the current scarcity of semiconductors.