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Buffett-Backed Electric-Car Giant BYD Halts Spinoff of Chip Unit

Chinese electric-car giant BYD Co. 1211 -1.79%decrease; red down pointing triangle said it is pausing the planned spinoff of its chip subsidiary, opting to focus on boosting the unit’s automotive-semiconductor output to meet rising demand for electric vehicles.

Warren Buffett-backed BYD said in a filing on Tuesday that it is shelving the spinoff of BYD Semiconductor and the company’s listing on the Shenzhen Stock Exchange until an unspecified date. It said it instead plans to accelerate investments in expanding its chip-making capacity, building on a recent investment in a chip factory in Jinan, in eastern China.

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