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In November 2018, the Shanghai Stock Exchange established the Science and Technology Innovation Board (STAR Market); in July 2019, the STAR Market officially opened, with the first 25 companies ringing the bell for their IPOs. At the inception of the STAR Market, it coincided with a time of geopolitical turbulence, and the state assigned significant political missions to the STAR Market. The series of institutional documents regarding the STAR Market also express a high-level positioning: facing the world’s technological frontier, the main economic battlefield, and major national needs. As of now, nearly 600 companies have been listed on the STAR Market. Among these nearly 600 enterprises, we will systematically review the semiconductor listed companies. Today, we will look at this company: Longxin Co., Ltd. (688486).
1. Who is Longxin Co., Ltd.?
High-speed mixed-signal chips serve as a critical bridge connecting the digital world and the physical world, playing a vital role in numerous new-generation information technology industries such as high-definition display, high-speed data transmission, automotive electronics, and artificial intelligence. Their performance directly impacts the experience and efficiency of end applications.
Longxin Semiconductor (Hefei) Co., Ltd. (stock abbreviation: Longxin Co., Ltd., stock code: 688486) is a high-tech enterprise focused on the research, design, and sales of high-speed mixed-signal chips. Its core business focuses on providing customers with high-performance high-speed mixed-signal chips and related technical support. The main product lines include high-definition video bridge and processing chips and high-speed signal transmission chips. The company has achieved technological breakthroughs in HDMI, DP/eDP, and other high-definition video protocol conversion fields through its “ClearEdge” technology platform, becoming one of the few suppliers in China capable of providing 4K/8K ultra-high-definition solutions.
2. Development History of Longxin Co., Ltd.
1. Startup and Technology Accumulation Period (from establishment to pre-IPO)
In 2006, founder FENG CHEN returned to China with overseas technical experience and established the company in the Hefei Economic Development Zone with a registered capital of $5.5 million. Subsequently, the company focused on six core technology directions: high-speed mixed-signal circuit and chip integration technology, high-speed data transmission chip transceiver circuit technology, high-speed interface transmission protocol processing technology, high-bandwidth digital content protection technology, high-definition video and audio processing technology, and high-speed mixed-signal chip mass production testing technology. Through continuous exploration and practice, the company gradually built the prototype of its product lines for high-definition video bridge and processing chips and high-speed signal transmission chips, laying a solid technical foundation for future market expansion.
2. Capital Empowerment Period (from STAR Market listing to present)
In February 2023, Longxin Co., Ltd. successfully landed on the STAR Market, marking a new strategic phase in the company’s development. The funds raised from the IPO provided strong support for the company’s technological iteration and capacity expansion, mainly directed towards three major projects: the development and industrialization of high-definition video bridge and processing chips, the development and industrialization of high-speed signal transmission chips, and the upgrade of the R&D center. The company continues to focus on cutting-edge technologies, consolidating existing product advantages while increasing product R&D and promotion efforts in emerging fields such as automotive electronics, ultra-high-definition display (4K/8K), high-performance computing, and next-generation communications. The internationalization strategy is also an important part of the company’s development, with plans to establish a global R&D center and customer service network, and accelerate the full operation of its Singapore subsidiary. To ensure the stability of the supply chain and match the rapidly growing scale demand, the company added a domestic wafer foundry in 2024, further enhancing the resilience of its supply chain.
3. Business and Products of Longxin Co., Ltd.
The core business of Longxin Co., Ltd. is to provide high-speed, efficient, and reliable signal connection and processing solutions for the increasingly complex digital world. Its products mainly serve two application scenarios: high-definition video and high-speed data transmission.
1. Composition of Main Business
(1) High-definition video bridge and processing chips: These chips are primarily used to achieve conversion between different video interfaces, signal relaying and enhancement, video signal distribution and matrix switching, video format conversion, and image processing. Longxin Co., Ltd.’s products support mainstream interface standards such as HDMI, DisplayPort, and MIPI, and fully support the processing of 4K and even 8K ultra-high-definition video signals, widely used in PCs, laptops, monitors, televisions, VR/AR devices, and security monitoring.
(2) High-speed signal transmission chips: These chips focus on solving the integrity issues of high-speed data signals during transmission, providing signal conditioning (such as equalization, driver enhancement), signal relaying (Repeater/Retimer), and multiplexing/demultiplexing functions. The products are widely used in data centers, servers, PCs and peripherals, security monitoring, industrial control, and next-generation communication devices, ensuring stable and reliable data transmission over high-speed links.
2. Product Matrix and Features
After years of R&D accumulation, Longxin Co., Ltd. has successfully developed over 140 different models of chip products, forming a relatively complete product matrix that can meet the needs of different application scenarios. Its products are characterized by high performance, high bandwidth, and low power consumption.
Key products and technologies include: (1) Breakthroughs in automotive chips: The company places great importance on the enormous potential of the automotive electronics market, with 9 chips having passed the stringent AEC-Q100 automotive-grade certification and successfully entering the supply chains of several well-known domestic and international automotive manufacturers for mass production, applied in key areas such as in-vehicle infotainment systems and advanced driver-assistance systems. (2) Leading ultra-high-definition video technology: The products fully support 4K/8K ultra-high-definition resolution, meeting the pursuit of extreme picture quality in consumer electronics and professional display fields.
3. Main Application Fields and Customers
The products of Longxin Co., Ltd. are widely penetrated in several important fields of the national economy, mainly including: consumer electronics, automotive electronics, security monitoring, industrial control, data centers and servers, and next-generation communications.
4. How does Longxin Co., Ltd. perform on the STAR Market?
1. Market Position: Leader in Niche Field
According to CINNO Research statistics, in 2020, the company held a 4.2% share of the global high-definition video bridge chip market, ranking sixth overall and first among companies in mainland China. In the mainland China high-definition video bridge chip market, the company’s share is 6.2%, ranking fifth.
At the same time, according to CINNO Research statistics, in 2020, the company held a 0.9% share of the global high-speed signal transmission chip market, ranking eighth overall and second among companies in mainland China, only behind Silicon Valley Analog. In the mainland China high-speed signal transmission chip market, the company’s share is 3.3%, ranking sixth, also only behind Silicon Valley Analog.
2. Technical Strength
Longxin Co., Ltd. has mastered six core technologies, forming its technical barrier: (1) High-speed mixed-signal circuit and chip integration technology: Involves high-speed, high-precision analog circuit design and the collaborative processing of mixed-signal. (2) High-speed data transmission chip transceiver circuit technology: Includes design capabilities for key IPs such as SerDes (Serializer/Deserializer). (3) High-speed interface transmission protocol processing technology: Deep understanding and implementation capabilities for mainstream interface protocols such as HDMI, DisplayPort, MIPI, USB, and PCIe. (4) High-bandwidth digital content protection technology: Such as HDCP, ensuring the secure transmission of high-definition content. (5) High-definition video and audio processing technology: Includes algorithms and circuit implementations for image scaling, color space conversion, audio decoding, etc. (6) High-speed mixed-signal chip mass production testing technology: Ensures product quality and reliability during large-scale production.
Meanwhile, the company continues to invest heavily in R&D. The R&D investment amount for 2024 is 99.9686 million yuan, an increase of 34.14% compared to the same period last year. The proportion of R&D investment to operating income has remained at a high level over the past three years (2022-2024), at 22.99%, 23.06%, and 21.45%, respectively.
5. Conclusion and Outlook
The products and technologies of Longxin Co., Ltd. have driven the technological upgrade and localization process in related application fields such as high-definition video, high-speed data transmission, and automotive electronics. Supported by national strategies and broad market demand, the company demonstrates good growth potential and technical strength. However, the road ahead remains full of challenges; continuous technological innovation, keen market insight, efficient operational management, and robust risk control will be indispensable cornerstones for Longxin Co., Ltd. to maintain stability and ultimately grow into a global leader in high-speed mixed-signal chip solutions.
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