In January 2016, the Committee on Foreign Investment in the United States (CFIUS) rejected the acquisition of Lumileds, a manufacturer of LED and automotive lighting components under Philips, by a Chinese consortium, Go Scale Capital, on the grounds of national security. Go Scale Capital is a renowned investment fund initiated by GSR Ventures and Oaktree Investment Partners, with Sonny Wu as its chairman. In the Lumileds acquisition, Go Scale Capital defeated a consortium composed of KKR in the United States and CVC Capital, a European private equity fund, and got approval by Royal Philips of the Netherlands. However, it fell short for the disapproval of CFIUS. The so-called free trade in the United States is indeed a surprise.
Wu commented that the two parties had worked in a sincere and active way, but he still regretted the failure to reach a cooperation. He founded GSR Ventures in 2004 and is now the chairman of GoldenSand Capital, focusing on professional investments in semiconductors, new materials and new energy. With his many years of professional and profound experiences in semiconductor both academically and industrially, Wu has invested in several leading global semiconductor companies, including Silevo Solar, which was acquired by SolarCity/Tesla in 2014; the world's first solid-state battery company–SEEO, acquired by the German company Bosch in 2013; Asia's largest lithium iron phosphate material company–Aleees Likai Electric Power. He also continues advancing semiconductor technology in China, narrowing China's technology gap in this field. LatticePower, which he invested and serves as the chairman of the board, won the top prize of the 2015 National Technology Innovation Award in recognition of its innovative GaN-on-silicon technology and invention.
As a giant in the semiconductor industry, Wu and his GoldenSand Capital have been rather quiet in the market in recent years after the failed acquisition in 2016 and the challenge of separation in 2020. Finally on January 10, 2022, six years after the failure, HG Semiconductor (6908.HK) announced Sonny Wu as the chairman of its Global Strategic Advisory Committee.
On October 8, 2021, 6908.HK officially changed the company name to HG Semiconductor Limited, which was a statement of strategic transformation, with a new focus on the research of third-generation semiconductor new materials mainly based on gallium nitride (GaN). On August 24, 2021, Hg Semiconductor (6908.HK) and its wholly-owned subsidiary completed the investment in Israel's VisIC Technologies Limited (VisIC). On November 25 the same year, HG Semiconductor (6908.HK) announced its wholly-owned subsidiary FastSemi Holding Limited's investment in GaN Systems Inc. Both are leading GaN chip design companies: VisIC has worked on GaN products for decades, and has applied for several key patents related to GaN technology, which can be widely applied in power conversion, fast charging products and power components; GaN System is engaged in the development of various GaN products, including high-current GaN power semiconductors, currently used by automotive, consumer, industrial and data center customers worldwide.
This new move signals Wu's strategy of industrial integration as a player in the GaN field. Compared with traditional SiC materials, the third-generation semiconductor power devices made of GaN materials have higher power output density and higher energy conversion efficiency, helping create smaller and lighter systems, effectively reducing the size and weight of power electronics, and thus greatly saving production costs. High voltage was the only bottleneck to be cracked.
The original listed company statement has shown, however, that "In view of the fact that the target company is in a leading position in high-voltage equipment for fast charging applications, and it has a leading position in the qualification of the German electric vehicle supply chain, and the Group has a GaN solution factory in China, the Group will benefit from its early entry into the Chinese electric vehicle market, becoming a major viable supply chain provider for third-generation semiconductor GaN solutions to major EV companies, including existing state-owned auto companies and emerging new EV companies."
Will HG Semiconductor (6908.HK) start a complete revolution in the semiconductor industry under Wu's lead? Only time will tell.