According to Zhitong Finance App, Tianyu Semiconductor (02658) announced that on November 6, 2026, the company signed a share transfer agreement with Mr. Shen Xinfang. According to this, the company conditionally agreed to the acquisition, and the seller conditionally agreed to sell the target company's 16.271,000 A shares, accounting for about 7% of its total issued share capital. The total cash cost was RMB 400.1 million, equivalent to sales of RMB 24.59 per share.
The costs will be paid from the Group's internal capital and net proceeds from some global sales. The acquisition is aimed at strengthening long-term cooperation between the Group and the target group in the silicon carbide business, including supply chain coordination and joint research and development related to large diameter silicon carbide materials.
The target company, Zhejiang Tony Electronics Co., Ltd., is a limited company established in China. Its A shares are listed on the Shanghai Stock Exchange (stock code: 603595). Its business covers metal-based materials and composites as well as third-generation semiconductor materials (including silicon carbide substrates), as well as products for consumer electronics, photovoltaics and medical applications. Its semiconductor subsidiary develops and manufactures silicon carbide substrates, including 6 inch and 8 inch conductive substrates.
The directors believe that the acquisition will provide a foundation for closer strategic cooperation between the Group and the target group and bring the following potential benefits under the commercial arrangement agreed between the two parties: (i) Strengthening the silicon carbide supply chain. Combining the Group's expertise in silicon carbide epitaxial with the target group's capabilities in crystal growth and substrate processing, coordination between substrate production and epitaxial growth can be strengthened. The cooperation is expected to support the reliable supply of 6 inch and 8 inch conductive substrates, improve quality consistency and production yield, and reduce procurement costs and supply risks. (ii) Accelerate R&D. Joint development of crystal growth, substrate processing, and epitaxial extension can improve material quality and accelerate the development of larger diameter (including 8 inches and above) silicon carbide materials for high-pressure and automotive-grade applications. Closer technical coordination can also shorten the sample delivery and customer certification cycle for products such as electric vehicles, artificial intelligence data centers, energy storage and power grids.
(iii) Expanding customer and product opportunities. The two sides serve complementary downstream markets, particularly electric vehicles, artificial intelligence data centers, photovoltaics and energy storage. Cooperation involving silicon carbide power semiconductor materials and the target group's broader electronic materials capabilities can support a more comprehensive product supply, strengthen customer relationships, and generate additional business opportunities in such applications. (iv) Sharing technical and operational expertise. Cooperation between the materials engineering, epitaxial process and quality management teams of the two parties can support quality traceability from crystal growth to epitaxial extension, improve clean room management and reliability testing, and share testing and analysis facilities, thereby improving operational efficiency and reducing repeated testing and certification expenses.