Yunnan Germanium expands with new gallium arsenide wafer production subsidiary

Yunnan Lincang Xinyuan Germanium Industry announced the establishment of a new subsidiary, Hubei Xinyao Semiconductor Materials Technology Co., Ltd., to undertake a high-quality gallium arsenide wafer construction project. The new company, with a registered capital of 50 million yuan, will be jointly funded by Yunnan Xinyao Semiconductor Materials Co., Ltd. (a subsidiary of Yunnan Germanium) contributing 45 million yuan, and natural person Liu Guangzheng contributing 5 million yuan. Yunnan Xinyao’s contribution includes 12.594 million yuan in monetary capital and existing gallium arsenide production line equipment valued at 32.406 million yuan.

The project, located in Huanggang High-tech Industrial Development Zone, Hubei Province, will involve constructing new facilities and relocating existing production lines. It aims to establish an annual production capacity of 700,000 pieces of 6-inch high-quality gallium arsenide wafers and 30,000 sets of semiconductor-grade 4-6 inch quartz tubes.

With an estimated total investment of 272.3 million yuan, including 253.18 million yuan for fixed assets and 19.12 million yuan for working capital, the project has a projected construction period of 18 months. Financial analysis indicates an internal rate of return of 22.56% and an investment payback period of 5.76 years (including construction).