On October 16, FJAS Electronic Materials Technology Group, a leading manufacturer of high-end sputtering targets in China, issued an announcement stating that it had received the "Approval of Approval for FJAS to Issue Shares to Specific Objects for Registration" issued by the China Securities Regulatory Commission. According to the announcement, the total amount of funds raised by FJAS (including issuance costs) does not exceed RMB 530 million, and the issuance target does not exceed 35. The price of this issuance shall not be less than 80% of the average price of the company's stock trading on the 20 trading days before the first day of the issuance period.
Regarding the investment direction of the raised funds, FJAS stated that the net raised funds after deducting the issuance costs will be used for the flat-panel display sputtering target construction project, the ultra-high-definition display copper target industrialization construction project, the aluminum scandium target and the molybdenum target. R&D and construction projects and supplementary working capital.
FJAS said that after the completion of the flat panel display sputtering target construction project, it will have an annual production capacity of 800 tons of molybdenum targets, 350 tons of aluminum targets and 50 tons of silicon targets.
For the purpose of this issuance, FJAS stated that after years of technology accumulation and development, the company has become one of China's leading companies in the field of flat panel display targets. The capital investment in the "Flat Panel Display Sputtering Target Construction Project" and "Ultra HD Display Copper Target Industrialization Construction Project" aims to expand the scale of products, further mass-produce products in advantageous areas, improve market competitiveness, and consolidate rank in the field.
Semiconductors are one of the important downstream applications of sputtering targets. The downstream applications of the company's existing products are mainly concentrated in the field of flat panel displays and optical components. As China continues to advance the 5G industry, the company regards the 5G communication chip industry as the future One of the important directions of business development, increasing the business layout in this field is a necessary measure for the company to enhance its competitiveness. As 5G needs to support new frequency bands and communication standards, including baseband chips, radio frequency chips and other communication chips need to be upgraded, therefore, the company expands the industry layout of the downstream semiconductor applications, and increases the research and development of aluminum-scandium targets and molybdenum targets Designed to meet the high-performance demand for coating materials for communication chips in the 5G high-frequency era.
Founded in 1998, FJAS is a high-tech enterprise in China, mainly engaged in the R&D, production and sales of PVD coating materials such as sputtering targets and evaporation materials. PVD coating materials are one of the key raw materials for flat panel displays, semiconductors, solar cells and optical components, and they belong to the strategic emerging industries that are strongly encouraged and supported by the state.
At present, FJAS has established good cooperative relations with many well-known companies such as BOE, Innolux, Lens Technology, Bourne Optics, Crystal Optoelectronics and so on.
Sputtering target material is currently the most widely used PVD coating material, and it is also a core key material for semiconductors and display panels. China’s domestic demand accounts for more than 30%, while the market scale of Chinese target companies accounts for less than 2% of the global market. The necessity of domestic substitution is obvious, and domestic PVD coating material manufacturers have a broad market in the future. In recent years, the country has continuously supported the development and application of upstream key raw materials including PVD coating materials from a strategic height.