The share price of Hana Microelectronics Public Company Limited (SET: HANA) made a sharp drop at the opening bell on Tuesday as the market continued to assess the impact from Tesla announcing a reduction of SiC usage, which could decimate demand of global SiC products, while HANA just recently launched its new SiC factory last year.
HANA was on a three-day losing streak earlier this morning, following a combine of 8.78% in the previous two sessions. The share price fell as much as 6.42% to THB 51.00 per share in the morning session on Tuesday. However, the price bounced back to trade between positive and negative territory afterward. As of 11:21 BKK time, HANA was up 0.46% at THB 54.75 per share.
The negative sentiment came late last week after world’s leading EV producer Tesla Inc. 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.
Still, 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 last week that it had a slightly negative view to HANA’s expansion plan for mass Sic MOSFETs production that should start in 2H23.
