On August 7, Zhenbao Technology made an announcement revealing that its wholly-owned subsidiary, Wuhan Zhenbao, is set to invest a substantial 520 million yuan in the creation of a cutting-edge R&D and production base dedicated to semiconductor components. Out of this total investment, 250 million yuan will be allocated from over-allotted funds, and the entire construction process is projected to span three years. This ambitious project will concentrate on the research, development, and manufacturing of pivotal components, including silicon carbide, high-purity silicon, and aluminum nitride ceramics. The overarching goal is to bolster the local supply chain's capacity for high-precision components, address existing capacity constraints, and adequately respond to the escalating customer demand for expanded production capabilities.