(Yicai Global) April 21 -- Chinese semiconductor device maker Yangjie Electronic, which went public in Switzerland earlier this week, will invest CNY1 billion (USD145 million) to build a silicon carbide wafer factory as demand for the third-generation semiconductor material soars in the new energy vehicle and photovoltaic sectors.

The facility, which will be located at the company’s headquarters in Yangzhou, eastern Jiangsu province, will have a monthly capacity of 5,000 six-inch wafers, Yangjie Electronic said yesterday. No further details, such a construction timetable, were given.

Silicon carbide wafers have the potential to replace commonly used silicon wafers due to their better thermal conductivity, durability and reliability, the firm said.

The investment will help the company exert more influence in the silicon carbide industry and help localize the production of silicon-based devices in the automobile, IT and consumer electronics sectors, it said.

Yangjie Electronic raised USD215 million earlier this week through the issuance of global depositary receipts on the Six Swiss Exchange. The funds will be used to promote chip research and development overseas, the manufacturing of automotive-grade devices and market expansion, it said in October last year.

Unmoved by the news, Yangjie Electronic’s share price [SHE:300373] closed down 5.4 percent at CNY47.95 (USD7) today.

Editor: Kim Taylor