HANA Plunges Sharply as World’s Leading EV Producer Plans to Cut 75% of SiC Usage

The share price of Hana Microelectronics Public Company Limited (SET: HANA) plunged over 9% in the morning session amid concerns of its lower sales revenue after world’s leading EV producer Tesla Inc. announced a reduction of SiC on its vehicles.

At investor day on Wednesday, Tesla announced that the company’s new drivetrain platform will use 75% less silicon carbide (SiC) in an attempt to lower manufacturing costs by 50% for its next-generation vehicle platform.

The share price of HANA dropped 9.2% on Friday from THB57.00 to THB51.75 per share as investors were quick to withdraw from the securities in fear of the downtrend of its Sic business.

However, the SiC business only accounts for 1% of HANA’s revenue. The company is in its second expansion phase for the factory in South Korea.

Tisco Securities noted that it had a slightly negative view to HANA’s expansion plan for mass Sic MOSFETs production that should start in 2H23.

World’s leading SiC producers also saw their share price dropping. STM -3%, IFX -2% ,WOLF -7%, ROHM and ON -2%. All together it has more than 90% of global market share.