On the morning of August 8, the construction commencement activity of SiC wafer Phase II production expansion project of Jiangsu TanKeBlue Semiconductor Co., Ltd. (hereinafter referred to as “Jiangsu TanKeBlue”), a wholly-owned subsidiary of our company, was successfully held. Phase II project of Jiangsu TanKeBlue will increase a capacity of 160,000 pieces. It is planned that the construction will be completed in June next year, and the project will be completed and put into operation in August of the same year. At that time, the total capacity of Jiangsu TanKeBlue will reach 230,000 pieces.

The construction commencement activity received strong support from Xuzhou Municipal Committee of the CPC, Xuzhou Municipal People’s Government and the Management Committee of the Economic Development Zone. Wang Jianfeng, Deputy Secretary of Xuzhou Municipal Committee of the CPC and mayor of Xuzhou, announced the construction commencement of the project on site. Zhang Ke, a member of the Standing Committee of Xuzhou Municipal Committee of the CPC and Secretary of the Party Working Committee of the Economic Development Zone, delivered a speech for the construction commencement activity. Zang Xiaopeng, Deputy Secretary of the Party Working Committee and Director of the Management Committee of Xuzhou Economic Development Zone, presided over the construction commencement activity of the project. Yang Jian, General Manager of Beijing TanKeBlue Semiconductor Co., Ltd. (hereinafter referred to as “Beijing TanKeBlue”), introduced the project situation.

Standing Committee Member Zhang Ke stated in his speech that the construction commencement of SiC wafer Phase II production expansion project of Jiangsu TanKeBlue was not only an important measure for TanKeBlue to continue to deepen its work in Xuzhou and gather strength to become   bigger and stronger, but also a vivid practice that Xuzhou Economic Development Zone adhered to attracting large and strong enterprises and promote high-quality development of the semiconductor industry. In 2018, Beijing TanKeBlue laid out the SiC wafer project “breaking the foreign monopoly” in the Economic Development Zone, opening a new world for the development of the third-generation semiconductor industry in Xuzhou. Over the past five years, under the strong leadership of the Municipal Committee of the CPC and Government, we have adhered to the principle of providing heart-to-heart services and empowerment-based services. Both parties have established a deep friendship and a high degree of trust.

Standing Committee Member Zhang Ke required that people in the Economic Development Zone shall further strengthen the concept of “treating entrepreneurs as their own families and affairs of enterprises as their own affairs”, scientifically plan and organize, and go all out for promoting the construction of Phase II project to ensure the smooth completion of the project as scheduled while strictly adhering to the bottom line of quality and safety. In addition, Xuzhou Economic Development Zone expected that TanKeBlue to continue to take root in the Economic Development Zone, invest in the Economic Development Zone, and speed up the layout of Phase III 1 million epitaxial wafers project to add new strong momentum into Xuzhou’s building of a complete third-generation semiconductor SiC industry chain.

General Manager Yang Jian said that for a long time, Xuzhou City and Xuzhou Economic Development Zone had adhered to the concept of pro-business, loving business, prospering business and strengthening business. They had managed to solve what businesses urgently wanted to solve, thought what businesses thought and helped enterprises overcome their difficulties, which had strengthened the confidence and determination of TanKeBlue to continue its investment. The commencement of Phase II production expansion project lays a strong foundation for TanKeBlue to further consolidate its position in the SiC market. TanKeBlue will focus on the SiC substrate material industry and help Xuzhou build a complete third-generation semiconductor SiC industry chain and become a high-quality development center for third-generation semiconductor technology in Jiangsu Province and even the whole country.