HG Semiconductor Enters into Cooperation Framework Agreement with China Titans Energy
HONG KONG, Jun 2, 2022 – (ACN Newswire via SEAPRWire.com) – HG Semiconductor Limited (“HG Semiconductor”, together with its subsidiaries, “the Group”; stock code: 6908.HK) is pleased to announce that the Group entered into a cooperation framework agreement (“Cooperation Framework Agreement”) with China Titans Energy Technology Group Co., Limited (“China Titans Energy”; Stock Code: 2188.HK) on 31 May 2022, to commence a three-year strategic cooperation.
China Titans Energy focuses on the development of power electronics, aiming to use advanced technology of power electronics and automation control to address the needs of power transformation, supervision, controlling, optimisation, energy saving and new energy utilization. Pursuant to the Cooperation Framework Agreement, the Group and China Titans Energy intend to cooperate on fast charging pile technology promotion and product sales in Mainland China and Hong Kong, to promote complementarity between the strength of both parties in their respective business areas:
i) China Titans Energy will provide support for the Group to build advanced fast charging pile products, run fast charging pile services in Hong Kong and jointly launch fast charging system solutions. Both parties will leverage on the unique advantage of the Group in being in cooperation with a statutory body in Hong Kong, to jointly promote the development of the Hong Kong smart city and provide upgrade to the electric vehicles and charging facilities in Hong Kong, so as to achieve the international standard of 400 kilowatts direct current charging, data on cloud, safety monitoring etc for smart management. The new energy fast charging solution is expected to become a pioneer solution in Hong Kong and will help to create new local business model and investment opportunities, such as constructing vehicle-to-grid (V2G) energy network, distributed energy storage and grid-level direct current electrical substation;
ii) both parties will cooperate in research and development of the new generation fast charging piles using the third-generation semiconductor technology provided by the Group; and
iii) HG Semiconductor will engage China Titans Energy for the manufacture of, and supply the Group’s customers in Mainland China and Hong Kong with, the new generation fast charging piles under the brand of the Group.
The “New-Energy Vehicle Industry Development Plan for 2021-2035” under the Fourteen Five-Year Plan of China has deployed five strategic tasks, including i) improving technological innovation capability, ii) constructing a new industrial ecology, iii) promoting industrial integration development, iv) improving the infrastructure system, and v) deepening open cooperation; at the same time the development plan explicitly pointed out the necessity of establishing a technological innovation system with enterprises as the main body, strengthening the infrastructure such as charging and replacing, while the battery management system and batteries are also recognized as one of the key development technologies. Meanwhile, the Hong Kong government also announced the roadmap for the popularization of electric vehicles, aiming to achieve zero emissions for all vehicles by 2050, so that Hong Kong can move towards the vision of zero carbon emissions, clean air and smart city in an orderly manner. In recent years, Hong Kong government has been actively promoting “re-industrialisation” and the development of advanced manufacturing industries based on new technologies and intelligent production, which has injected a steady stream of impetus into the development of the third-generation GaN business in the city.
The management of the Group is delighted to have China Titans Energy as its strategic partner to advance the re-industrialisation of Hong Kong’s next generation semiconductor industry and the development and construction of smart cities in Hong Kong. The Group has obtained six fast-charging battery system patents in 2021 for charging stations, charging conversion systems, charging modules and fast-charging equipment for electric vehicle charging stations. The Cooperation marks the gradual progress of HG Semiconductor towards the goal of harvesting, providing the Group with the opportunity to commercialize its fast charging battery products under its own brand in Mainland China and Hong Kong, and accelerating the pace of achieving production capacity. With the growing popularity of electric vehicles in Mainland China and Hong Kong, there is a promising business prospect for the development and commercialization of next-generation charging piles in both places. The Group will strive to explore opportunities of establishing a business presence in Hong Kong for fast charging battery solutions and is confident that it will pioneer revolutions and drive new trends within the industry.
About HG Semiconductor Limited
HG Semiconductor Limited (6908.HK) is principally engaged in semiconductor product business in China, including the design, development, manufacturing, subcontracting services and sales of light-emitting diode (“LED”) beads, new generation of semiconductor gallium nitride (“GaN”) chips, GaN components and related application products, as well as fast charging products. Leveraging its industry expertise in LED manufacturing, the Group is dedicated to accelerating its research and development and expansion in the application of GaN related products, with an aim to become a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips, as well as providing total solutions with higher efficiency and competitive system cost.
For more details, please visit www.hg-semiconductor.com
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