(Yicai Global) Aug. 10 -- Chinese electrical device maker Roshow Technology rallied today on its plan to spend CNY10 billion (USD1.4 billion) to build another advanced semiconductor materials plant in eastern China even before finishing its first one.

Roshow's stock price [SHE:002617] climbed by the daily limit of 10 percent to CNY6.69 (96 US cents) this morning, the highest since February.

The tech company will join hands with the administration of Hefei's Changfeng county to construct an industrial park for silicon carbide, a third-generation chip material, the Zhejiang province-based firm said in a statement yesterday, without disclosing the shareholding ratio.

Founded in 2003, Roshow used to mainly make magnet wire products and it has only recently started exploring SiC which has made its way into new energy vehicles, such as Teslas, due to its lowering effect on energy consumption.

In April, Roshow said that it is looking to issue shares via private placement to raise no more than CNY1 billion, most of which should go to its first SiC manufacturing project in Zhejiang province. The production base, which started construction last month, is expected to produce 88,000 pieces of SiC each year.

Besides funding, Changfeng will provide the company with land and policy support for its latest project, the statement added.

Anhui province's Hefei is becoming a major hub for NEV technologies as Nio said in February that it will build its Chinese headquarters in the city after securing CNY7 billion in investment, led by the municipal government.

Editor: Emmi Laine