Paragon Enters Silicon Carbide Field, Acquires Majority Stake in JingCheng Materials to Pave the Way for Transformation

[CMoney News / Reporter Wang Yi-Hung] Paragon (3518) announced its entry into the silicon carbide (SiC) field by acquiring a majority stake in JingCheng Materials, while also placing 16,000 privately offered shares to be subscribed by the JingCheng team to deepen the partnership. Paragon stated that the acquisition is intended to pave the way for future diversification and transformation. The company also released its semi-annual report, with first-half EPS of NT$0.01; in Q2, it posted a net loss of NT$5.813 million and a loss per share of NT$0.07.

Paragon noted that JingCheng Materials is a specialist supplier of SiC technology and materials. Though a young company, its team has worked in the compound-semiconductor industry for many years and is well versed in various semiconductor and single-crystal growth technologies as well as wafer processing.

SiC features high voltage and high-frequency capability, operates stably at high temperatures with lower power consumption, excellent heat dissipation, and a smaller footprint. With advantages in key parameters such as dielectric constant, thermal conductivity, and maximum operating temperature, it is well suited for power-semiconductor devices used in EVs, 5G communications, and solar energy—applications that must withstand extreme operating environments.

The SiC industry is closely tied to defense and aerospace. Export controls by leading nations have long produced a market oligopoly, making the technology hard to obtain. Although Taiwan is a semiconductor powerhouse, its SiC crystal development is still in its early stages. Meanwhile, the global SiC device market is growing at 60–70% annually with strong prospects, attracting Paragon to enter the field.

Paragon said the JingCheng acquisition lays the groundwork for future diversification and transformation, and hopes to enhance Taiwan’s international competitiveness in wide-bandgap power semiconductors, becoming a stable supply source of key materials amid global power competition.

In addition, Paragon swung to a loss last quarter on the impact of China’s lockdowns and notebook-industry inventory adjustments, with first-half EPS narrowing to NT$0.01. To navigate notebook market uncertainty, the company will tightly control costs; it recently announced the disposal of its plant operated by Zhejiang Junsheng Optoelectronics in the Sunshine Industrial Park, Dipu Town, Anji County, Huzhou City, to generate non-operating income and lower operating costs.