“Qinghai Lihao” Semiconductor completed 2.2 billion B round of financing

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Chuangyebang was informed that on September 27, Qinghai Lihao Semiconductor Materials Co., Ltd. (hereinafter referred to as “Qinghai Lihao”) officially announced the completion of 2.2 billion yuan in Series B financing. Three Gorges Group’s Changjiang Securities Innovation Investment, Ocean Pine Capital, Yunhui Capital, China-Belgium Direct Equity Investment Fund, Sino-US Green Fund, Zhejiang Minsheng Investment, etc. participated in the investment, and old shareholders IDG Capital, Chint, Jinyu Bogor, etc. all made additional investments, and Light Source Capital acted as the exclusive financial advisor. This round of funds will be used for the company’s 200,000-ton high-purity crystalline silicon phase II project construction and technology research and development, helping the company to move towards the industry’s first echelon.

Previously, Qinghai Lihao has completed the A round of financing in December 2021. The investors include leading industrial capital parties such as Chint and Jingsheng Electromechanical and well-known financial investment institutions such as IDG Capital and Jinyu Bogor.

In April 2021, based on the judgment of the long-term high prosperity of the photovoltaic industry, the mismatch of production capacity in the silicon material link, the long-term barriers of the silicon material industry, and the shortage of supply and demand, Qinghai Lihao was officially established and settled in Xining, with the goal of building 200,000 tons within 3 years. + capacity scale. As a large-scale private technology enterprise engaged in the R&D, production and sales of high-purity crystalline silicon and other semiconductor materials, Qinghai Lihao has quickly become a unicorn in the industry within a year and a half of its establishment, becoming a benchmark for the new generation of high-purity crystalline silicon industry.

The company’s first-phase project officially started construction in August 2021. After overcoming the adverse effects of winter construction in the north and the diversion of the main line of the West-East Gas Pipeline, the first-phase project was completed on July 30 this year, two months ahead of schedule. Set a record for the fastest construction in the north in the industry. On August 14 this year, the power switch of the 330 substation was officially completed and mass production was started. On August 22, the company’s first batch of genuine silicon material was officially released, which also set a record for the shortest time for the production of genuine silicon material in the industry.

In photovoltaics, a key track that supports the realization of dual carbon, silicon materials are the link in the industry chain with the highest technical and financial barriers, rigid production capacity, and the longest production expansion/climbing cycle. The link with the most investment value will usher in huge opportunities in the future.

From the perspective of demand, countries around the world have generally formulated renewable energy transformation plans, and there is room for high growth in terminal demand. According to my country’s dual-carbon strategic goal, the total installed capacity of photovoltaics in China is expected to reach more than 1,200GW in 2030. In the future, the substantial increase in the total scale of global photovoltaic installations will bring greater demand for raw material high-purity crystalline silicon.

However, from the perspective of supply, high-purity crystalline silicon, as the upstream of the photovoltaic industry chain, has many factors in the manufacturing process due to large capital investment, longer construction period than other parts of the photovoltaic industry chain, high site selection requirements, and high process barriers. The development speed is slower than the growth rate of photovoltaic installed capacity demand, and the staged capacity mismatch between supply and demand has become a bottleneck restricting the development of the industry.

The establishment of Qinghai Lihao is to help solve this bottleneck. In this context, Qinghai Lihao has a clear production capacity plan, and the output is climbing rapidly. It is expected to achieve a production capacity of over 200,000 tons in the third phase, making up for the national capacity gap of high-purity crystalline silicon.

IDG Capital said: The reason why it invested in Qinghai Lihao only half a year after its establishment is because the silicon material industry itself has high technical content, strong chemical properties, large capital investment, long production expansion period, strict requirements on site selection and resource endowment, etc. It is an indispensable upstream link in the photovoltaic industry chain.

The Qinghai Lihao team has the industry’s leading technical management team and mass production experience, and has strong development potential, which can quickly fill the capacity gap caused by the mismatch between supply and demand. Since the first investment of IDG Capital at the end of 2021, the Lihao team has also demonstrated amazing execution and landing capabilities, and completed the production target ahead of schedule. With this additional investment, we hope to provide funds for the company to accelerate its entry into the first echelon of the silicon material industry together with the new shareholders. Support and empowerment with more resources.

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