BYD has been making frequent moves recently.

First, BYD signed an agreement with Huawei HiSilicon. BYD will purchase Huawei Kirin 710A chips to create digital car cockpits.

In addition, BYD Semiconductor's introduction of strategic investors has aroused renewed attention in the industry to domestic chips, because there are many star-studded Chinese corporate names on BYD Semiconductor's investment list, such as Xiaomi and Lenovo.

Behind this, it can be seen that Chinese companies are supporting each other and jointly rescuing themselves under the banner of technological blockade in the United States. At the same time, domestic substitution of "Chinese chips" has become urgent.

BYD Semiconductor's actions at this time are of great significance.

In fact, as early as April this year, BYD Co., Ltd. issued an announcement that its subsidiary "BYD Microelectronics" had officially changed its name to "BYD Semiconductor" through internal reorganization and planned to go public.

The company will deeply integrate BYD's semiconductor business, and at the same time plans to introduce strategic investors through capital increase and share expansion, diversify the shareholder structure, and actively seek to be independently listed at the appropriate time.

"The open strategy adopted by BYD is not only for traditional car companies, but also for overseas brands and new domestic car brands. Whether it is batteries, motors, electronic controls or IGBTs, as long as there is demand, we welcome cooperation." BYD President

Li Wei, director of the office, said.

This statement seems to be BYD's business statement, but in fact, a new round of investment boom in China's "core" is starting in China's unique way and speed in the current and complex technological blockade environment.

, It was the internal and external environment that jointly caused this decision.

01 Breaking the barriers to foreign investment, China’s “chips” are in urgent need of independent domestic production. History is a reincarnation field.

Hundreds of years ago, that is, after the American Revolution, the United States made every effort to develop its own industrial system. However, the former big brother, the United Kingdom, imposed a comprehensive technological blockade on it, classifying steam engines and spinning jenny machines as "high-tech products" and strictly prohibiting their use.

Exporting to the United States is an attempt to allow the United States to continue to provide itself with raw materials honestly.

Nowadays, the United States, which has become stronger in high technology, is waging a trade war, which is blocking high-end technologies from some Chinese companies. Therefore, domestic substitution of technology has become particularly urgent.

This is also on the long list of strategic investors introduced by BYD Semiconductor. In the Series A financing, BYD Semiconductor introduced investment institutions such as Sequoia Capital China Fund, CICC Capital and SDIC Innovation.

The A+ round of financing is mainly from industrial investors, including South Korea's SK Group, Xiaomi Group, CMB International, Lenovo Group, CITIC Industrial Fund, ARM, SMIC, SAIC Industrial Investment, BAIC Industrial Investment, Shenzhen Huaqiang, and Blue Ocean Huateng

, INVT, etc.

BYD Semiconductor has gradually completed internal reorganization, equity incentives, and the introduction of strategic investors, and will accelerate the pace of IPO next.

CICC predicts that BYD Semiconductor will have a market value of 30 billion after its split and listing.

CICC Capital once pointed out in a report that driven by the Science and Technology Innovation Board and the trend of semiconductor localization, China's semiconductor industry has grown into an investment track with a scale of over 1 trillion yuan. With the development of the new energy vehicle market,

The demand for IGBT will see explosive growth.

In just two months, BYD Semiconductor has raised nearly 2.7 billion yuan in total financing.

Regarding the capital market's bets on the IGBT semiconductor market, you can find that it reflects the capital market's optimism about the prospects of the semiconductor market and its confidence in BYD's technology, especially for domestic substitution of technology, which is both a business sense and a sense of family and country.

02 The next unicorn is already on the road. In the Chinese market alone, the scale of new energy vehicles will have 5 million electric vehicles on the road in 2025, which will also bring huge output value to IGBT. According to relevant report analysis, 2018-2025

During the year, the total IGBT market size driven by China's new energy vehicles and related industries exceeded 120 billion yuan.

China has ranked first in the world's production and sales of new energy vehicles for four consecutive years. New energy vehicles have developed rapidly with the support of the right time and place, especially China and Europe, which are the two regions with the most supportive new energy industry policies in the world. This often drives

Behind the growth of many suppliers, power semiconductors are one of them. In terms of batteries, CATL has grown into a unicorn company in a short period of time.

Compared with traditional fuel vehicles and weak hybrid vehicles, electric vehicles lack engines and start-stop systems, but have more batteries, motors, electronic control core components, on-board DCDC, electric air-conditioning drives, on-board chargers (OBC) and other power

electronic devices.

IGBT (InsulatedGateBipolar?Transistor), the full name of "Insulated Gate Bipolar Transistor", is the core component of electronic control, accounting for about one-third of its cost.

Power battery cells are also called the "double core" of electric vehicles. They are a key technology that affects the performance of electric vehicles, and their cost accounts for about 5% of the total vehicle cost.

(Some articles also believe that it accounts for as much as 7%-10% of the cost of new energy vehicles), second only to batteries.

The current status quo is that my country's IGBT chips and modules are heavily dependent on imports. Currently among the top ten, Du Fangci, a consultant to the China Association of Automobile Manufacturers, said in an interview that the import rate exceeds 90%.