HG Semiconductor enters strategic partnership with Golden Concord Group

Article By : ACN Newswire

The collaboration can give a full play to the advantages of both parties in the industry, supply chain, talent, and technology, to achieve positive innovation.

HG Semiconductor Ltd has entered into a strategic cooperation framework agreement with Golden Concord Group Ltd, a company held under a discretionary trust with GCL Technology Holdings Ltd founder, chairman and executive director Zhu Gongshan and his family members as beneficiaries.

Pursuant to the agreement, HG Semiconductor and Golden Concord Group intend to initiate close cooperation in application of gallium nitride (GaN) power chips in the field of new energy, including: (i) Golden Concord Group or its subsidiaries will be involved in equity of the Group or its subsidiaries to establish in-depth cooperation; (ii) the Parties will establish a domestic new energy joint venture (JV) to tap into application of GaN chips in the field of new energy, including but not limited to technologies and equipment on charging/exchanging batteries, energy storage technology and related equipment and distributed solar inverters; (iii) the Group will provide technical support to the JV company and jointly develop application products based on silicon-based power chips and third-generation semiconductors; Golden Concord Group will assist HG Semiconductor and the JV company to enter into the market of new energy industry supply chain based on its leading position and comprehensive layout in the new energy industry.

Golden Concord Group is ultimately held under the Investor Family Trust, while the Investor Family Trust is the shareholder of GCL Technology, GCL New Energy Holdings Ltd, GCL System Integration Technology Co. Ltd, and GCL Energy Technology Co. Ltd. Earlier on, the Group had entered into an investment agreement with Zhu or his wholly-owned entity, pursuant to which the Group can conditionally allot and issue 60 million subscription shares and 60 million warrants.

Subsequent to the Shares and Warrants Subscription, this Strategic Cooperation Framework Agreement again fully demonstrates Zhu’s confidence in the development of HG Semiconductor’s third-generation semiconductor business, and it is believed that the collaboration can give a full play to the advantages of both parties in the industry, supply chain, talent, technology and other aspects, in order to achieve positive innovation, mutual benefits and a double-win outcome.

The management of HG Semiconductor is delighted that the family trust of Zhu has become the Group’s strategic alliance partner. This collaboration will further drive and strengthen the Group’s capabilities of promoting the application of the third-generation semiconductor technology in the new energy sector, and enable HG Semiconductor to gradually grow its business by leveraging the rich experiences as well as the financial and industrial resources of Golden Concord Group, thereby assisting the Group to build up its talents, operations, technology, research and development.

The Group will constantly pursue innovation, striving to form complementary industrial resources with Golden Concord Group while investing resources in the optimization and development of GaN related products. The Group believes that the cooperation will further drive new collaborative initiatives with Zhu, setting new heights in the development of GaN business in the field of new energy.

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