KUALA LUMPUR (Oct 19): Semiconductor equipment solutions provider Mi Technovation Bhd is investing US$30 million (RM142.86 million) into a research, development and manufacturing facility for power modules and devices in Xiaoshan, Hangzhou City, China.

In a filing with Bursa Malaysia on Thursday, Mi Technovation said its wholly owned subsidiary Mi Semiconductor Pte Ltd (MiSE Singapore) has entered into an investment agreement with Xiaoshan Economic and Technological Development Zone Administration Committee for the purpose of the investment.

Mi Technovation said the proposed investment represents a strategic business collaboration between MiSE Singapore and the intellectual groups of Xi’an and Hangzhou Cities, adding that the collaboration will enable its Semiconductor Solution Business Unit to be involved in the China domestic ecosystem, namely the semiconductor wide bandgap renewal energy segment.

"The board foresees that the global wide bandgap semiconductor market is expected to witness unprecedented growth for the next 10 years as the industries look for energy-efficient and high-performance electronics," it added.

It was noted that the committed investment in Xiaoshan, Hangzhou City will be for 10 years, with an investment incentive period of five years commencing on Jan 1, 2024.

Barring any unforeseen circumstances, the first production line from the proposed investment is expected to be completed and commence operation by the end of 2024 as planned.

At the time of writing, Mi Technovation shares were trading down one sen or 0.58% at RM1.72 apiece with a market capitalisation of RM1.56 billion.