Due to the recovery in the semiconductor chip industry, several listed companies have recently announced plans to acquire equity in semiconductor-related companies, attracting market attention. This includes both acquisitions within the same industry and cross-industry acquisitions.
Overall Performance Recovery
From the semi-annual reports of listed companies in the semiconductor chip industry, the overall performance has been impressive due to factors such as the rebound in order volume.
According to Wind data, in the first half of 2025, the overall operating revenue of the Shenwan semiconductor industry increased by 15.54% year-on-year, and the net profit attributable to shareholders of listed companies increased by 32.41% year-on-year. Among them, sub-sectors such as analog chip design, discrete devices, integrated circuit manufacturing, and digital chip design performed even better.
Further analysis reveals that out of 165 listed companies in the Shenwan semiconductor industry, 120 reported profits during the reporting period, and 100 companies saw year-on-year growth in net profit attributable to shareholders.
In terms of net profit figures, 57 listed companies achieved net profits attributable to shareholders exceeding 100 million yuan in the first half of the year, with 25 exceeding 300 million yuan. Six companies, including Northern Huachuang, SMIC, OmniVision Technologies, Haiguang Information, Lattice Semiconductor, and Cambricon Technologies, exceeded 1 billion yuan.
In the first half of the year, SMIC achieved operating revenue of 32.348 billion yuan, a year-on-year increase of 23.1%; net profit attributable to shareholders was 2.301 billion yuan, a year-on-year increase of 39.8%.
In terms of net profit growth, excluding the impact of turning losses into profits, companies such as Zhenlei Technology, Shenkong Co., Weicai Technology, Liandong Technology, and Yuanjie Technology had the highest net profit growth rates.
In the first half of 2025, Zhenlei Technology achieved operating revenue of 205 million yuan, a year-on-year increase of 73.64%; net profit attributable to shareholders was approximately 62.3197 million yuan, a year-on-year increase of 1006.99%. In the first half of 2025, facing the recovery of downstream industries and sustained demand, the company continued to consolidate its advantages and market presence in special fields such as data chains, electronic countermeasures, wireless communication terminals, next-generation radio stations, and phased array communications. With solid technical foundations, a good industry reputation, and high-quality customer service, the company saw a significant year-on-year increase in orders and projects on hand. At the same time, the company seized opportunities in strategic emerging industries such as commercial aerospace, low-altitude economy, and deep-sea technology, relying on advanced research layouts and technical barriers to align closely with customer needs, receiving positive feedback and high recognition, leading to substantial growth in operating revenue and net profit.
Leading Companies’ Mergers and Acquisitions
Recently, several leading listed semiconductor companies announced acquisitions of related assets in the industry chain.
On August 31, Huahong announced a restructuring plan, proposing to acquire 97.4988% equity of Huali Micro from four shareholders, including Huahong Group, Shanghai Integrated Circuit Industry Investment Fund Co., Ltd., National Integrated Circuit Industry Investment Fund Phase II Co., Ltd., and Shanghai Guotou Xian Dao Integrated Circuit Private Investment Fund Partnership (Limited Partnership), through the issuance of shares and cash payment. The issuance price is set at 43.34 yuan per share, not less than 80% of the average trading price of the company’s stock over the 120 trading days prior to the pricing benchmark date. The raised funds are intended to supplement working capital, repay debts, pay cash consideration, and support project construction of the target company, with the proportion for working capital and debt repayment not exceeding 25% of the transaction price of the purchased assets or 50% of the total raised funds.
According to Huahong’s announcement, prior to this transaction, Huahong was a global leader in specialty process wafer foundry services and the wafer foundry company with the most comprehensive coverage of specialty process platforms in the industry, mainly engaged in customizable semiconductor wafer foundry services based on various process nodes and technologies. Huali Micro mainly provides 12-inch integrated circuit wafer foundry services, offering complete technical solutions for terminal application fields such as communications and consumer electronics. After the completion of this transaction, Huali Micro will become a subsidiary within Huahong’s consolidation scope, and Huahong’s total assets, net assets, revenue, and net profit are expected to further increase, enhancing the company’s sustainability.
On the evening of August 29, SMIC announced that it is planning to acquire minority equity in its controlling subsidiary, SMIC North Integrated Circuit Manufacturing (Beijing) Co., Ltd., by issuing ordinary shares (A shares). The target assets for this transaction are the 49% equity held by the counterparties. The preliminary identified counterparties include National Integrated Circuit Industry Investment Fund Co., Ltd., Beijing Integrated Circuit Manufacturing and Equipment Equity Investment Center (Limited Partnership), Beijing E-Town International Investment and Development Co., Ltd., Zhongguancun Development Group Co., Ltd., and Beijing Industrial Development Investment Management Co., Ltd., with the final counterparties to be confirmed based on the restructuring plan or report.
On the evening of August 28, Chipone announced that it is planning to acquire equity in Xinchip Semiconductor Technology (Shanghai) Co., Ltd. through the issuance of shares and cash payment, and raise supporting funds. The company currently holds 2.99% equity in Xinchip and aims to acquire all or controlling equity through this transaction. Xinchip’s legal representative is Hu Zhenbo, and its registered capital is 5.0116 million yuan, mainly engaged in semiconductor technology and integrated circuit design.
External Capital Competing to Enter the Market
In addition to listed semiconductor companies acquiring industry chain companies, some other listed companies are also making cross-industry acquisitions due to their optimism about the semiconductor industry’s development.
Recently, Kaipu Cloud announced that it plans to acquire 70% equity of Nanning Taike Semiconductor Co., Ltd. held by Shenzhen Jintaike Semiconductor Co., Ltd. through cash payment, and acquire 30% equity held by Shenzhen Jintaike through share issuance while raising supporting funds. The trading partner, Shenzhen Jintaike, will transfer its operational assets of storage products to Nanning Taike.
According to Kaipu Cloud’s announcement, its main business includes software development and hardware sales, with related products including AI large models and computing power, AI content security, digital intelligence sources, and smart governance. Nanning Taike mainly engages in the research, development, production, and sales of memory devices. After the completion of this transaction, Nanning Taike will become a controlling subsidiary of the listed company, and while retaining the original business of the listed company, the company will add storage product-related business, thereby further enhancing its overall competitiveness and market influence, injecting new momentum into the long-term stable development of the listed company.
For example, Tongye Technology recently announced that it plans to acquire 100% equity of Beijing Silin Semiconductor Technology Co., Ltd. through cash payment. If this transaction is successfully implemented, Silin will become a wholly-owned subsidiary of the company.
Tongye Technology mentioned in its announcement that Silin’s main business is grid communication chips and modules, with major clients including the State Grid and other large state-owned enterprises. The company can leverage its advantages in the rail transit market to apply high-speed power line communication chip technology in rail transit grid systems, greatly expanding its market. Silin’s network communication technology from chip to application will further enhance the company’s current technological advantages in smart network control system products, thereby improving the core competitiveness of its products. The successful completion of this transaction can effectively promote the company’s strategic layout, establish new growth poles for business development, and ensure shareholder interests.
(Source: China Securities Journal)
