1. Project Overview
This project is an expansion project for embedded storage chips.Chengbang Ecological Environment Co., Ltd. plans to introduce advanced packaging and testing automation equipment and supporting systems, focusing on expanding the production capacity ofLPDDR, EMMC, and SD NAND embedded memory. By optimizing the packaging and testing processes, the company aims to continuously improve product yield, consistency, and production efficiency.
The project products can be widely used insmart wearables, tablets, smart TVs, set-top boxes, and smartphones and other diverse smart terminal fields, aiming to quickly respond to the growing market and customer demand for embedded memory, strengthen the company’s core competitiveness and market share in the semiconductor storage field, and further enhance overall profitability to support the achievement of the company’s strategic goals.
2. Background of Project Implementation
The company’s ecological environment construction business has encountered bottlenecks in development due to domestic and international macroeconomic and industry environments. The company is actively exploring entry into new productive forces related fields and implementing a business transformation and upgrading strategy. In October 2024, the company completed the capital increase and control of Chip Storage Technology, entering the semiconductor storage field.
The company adheres to the mission of “Beautifying the ecological environment, creating a true core for the future” and is committed to becoming a respected green ecological technology enterprise. The company’s 2025 business plan focuses on the dual main business development strategy of “ecological environment construction + semiconductor storage,” with a moderate contraction of the ecological environment construction business, while the semiconductor storage business is positioned as an innovative breakthrough business and is appropriately expanded to quickly become the company’s core business, enhancing the overall core competitiveness of the company.
In 2024, the company achieved operating revenue of 347.8938 million yuan, of which the ecological environment business revenue was 237.3048 million yuan, and the semiconductor storage business revenue included in the consolidated financial statements was 110.5891 million yuan. Chip Storage Technology achieved semiconductor storage business revenue of over 300 million yuan for the year. Based on the rapid growth trend of the semiconductor storage industry and the company’s strategy and business plan, it is expected that in 2025, the company’s semiconductor storage business revenue will significantly exceed that of the ecological environment business, becoming the core business of the company. Therefore, this issuance mainly revolves around the company’s semiconductor storage business.
(1) The semiconductor storage industry development is strongly supported by national industrial policies
The semiconductor industry is the strategic cornerstone of national technological self-reliance and industrial chain security, listed as a primary development area in “Made in China 2025.” As an important branch of the semiconductor industry, semiconductor storage is strongly supported by national policies. In recent years, China has included storage chips in national strategic documents such as the “Guidelines for National Data Infrastructure Construction,” “14th Five-Year Plan for National Informatization,” “14th Five-Year Plan for Information and Communication Industry Development,” “14th Five-Year Plan for Software and Information Technology Service Industry Development,” and “Policies to Promote High-Quality Development of Integrated Circuit Industry and Software Industry in the New Era,” establishing a comprehensive support system covering tax incentives, R&D subsidies, industrial investment, and talent subsidies, providing clear strategic guidance for the development of the semiconductor storage industry.
(2) The semiconductor storage market is experiencing high growth, with significant industry market space
Among the many tracks in the semiconductor industry, storage is the most significantly growing sub-industry. According to data from the World Semiconductor Trade Statistics (WSTS), the overall scale of the global semiconductor industry will reach $627.6 billion in 2024, a 19.1% increase from 2023. The storage market is expected to achieve over 81% year-on-year growth, reaching $167 billion, accounting for 26.61% of the entire semiconductor market scale, making it a core branch of the semiconductor industry. It is expected that the global semiconductor market will continue to grow in 2025, with the market size reaching $697.1 billion, a year-on-year increase of 11.1%. According to a report released by the globally renowned market research firm Yole, the storage market space is expected to grow to $263 billion by 2027.
3. Objectives of Project Implementation
(1) Expand semiconductor storage business capacity to enhance operational performance in line with the company’s development strategy
The company’s development strategy and 2025 business plan clearly identify the semiconductor storage business as an innovative breakthrough business for moderate expansion. This issuance is necessary for the company’s development strategy, to purchase advanced equipment, build new production lines, expand semiconductor storage business capacity, and enhance the scale and operational performance of the storage business.
(2) Improve the company’s product matrix
The company’s existing semiconductor storage products mainly include mobile storage (including TFCARD, USB modules, etc.), solid-state drives (including SATA SSD, PCIe SSD, PSSD), and a small number of embedded storage products. Through the implementation of this fundraising project, the company aims to enhance the business capabilities and scale of embedded storage products (including LPDDR, EMMC, SD NAND, etc.).
The company will introduce imported die bonding machines, high-precision molding machines, AOI ball placement automatic inspection machines, AOI wire bonding automatic inspection machines, ultrasonic scanning machines, and automated testing systems to strengthen packaging and testing technology R&D, achieve leaps in manufacturing precision and breakthroughs in product consistency, and overcome technical bottlenecks for smart wearable devices, smartphones, and other terminal scenarios, meeting downstream customers’ cutting-edge demands for high-performance semiconductor storage products. After the implementation of this fundraising project, the company will be capable of providing high-reliability embedded storage solutions for leading downstream customers, enhancing market share through strengthened strategic collaboration, and ultimately achieving an upgrade of the product matrix for all-scenario solutions.
4. Necessity of Project Implementation
(1) Meet the growing demand of the downstream market and actively promote the process of domestic substitution
The project products, embedded storage, typically refer to semiconductor storage devices that are fixedly embedded within the main system of electronic products and have embedded interfaces, applied in fields such as smart glasses, tablets, automotive electronics, smartphones, and smartwatches. With the explosive growth of data volume, the popularity of smart terminal devices, and the promotion of emerging technologies, the embedded storage market will continue to grow. According to Verified Market Reports, the embedded storage chip market size is projected to be $10.5 billion in 2024, expected to reach $25.3 billion by 2033, with a compound annual growth rate of 10.5% from 2026 to 2033.
Despite the vast market space, the current domestic production rate of core storage components remains low. Under the strong support and guidance of national industrial policies, the process of semiconductor domestic substitution is accelerating. The company closely aligns with the national strategic goal of achieving self-controllable semiconductor industry and actively lays out opportunities for domestic substitution, expanding embedded storage capacity.
At the same time, the downstream applications’ urgent demand for high-performance, high-reliability embedded storage solutions creates a strategic window for the company to enter high-end customer supply chains, enhance brand value, and increase market share. The implementation of this project will strongly support the localization strategy, effectively meet market demand, and further consolidate and enhance the company’s comprehensive competitiveness in the semiconductor storage field.
(2) Align with the market expansion trend driven by AI, supporting the company’s sustainable growth
With the rapid development of artificial intelligence technology, especially the continuous optimization of deep learning algorithms and significant improvements in computing hardware performance, AI technology is expanding from large-scale cloud applications to terminal devices, promoting the widespread implementation of intelligent applications at the edge. The lightweight of large models, optimization of inference frameworks, and maturity of dedicated AI chips have significantly lowered the threshold for local processing of complex AI tasks, making real-time performance, security, and low latency the core advantages of edge AI, endowing various terminals with perception, decision-making, and interaction capabilities, and significantly increasing the penetration rate of AI edge devices.
According to IDC predictions, the number of GenAI smartphones is expected to grow from 230 million units in 2024 to 912 million units by 2028, with a compound growth rate of 78.4%; global smart glasses shipments are expected to reach 12.05 million units in 2025, a year-on-year increase of 18.3%.
The popularity of AI technology has driven explosive growth in data volume, especially with the widespread adoption of generative AI applications, leading to continuous expansion of data scale and diversification of data types, covering structured data (such as databases), unstructured data (such as text, images, videos), and streaming data (such as real-time data streams).
This data characteristic places higher demands on storage systems’ capacity, performance, and management capabilities, such as requiring higher storage density, faster access speeds, and more efficient management mechanisms. The enhancement of data processing capabilities by AI technology simultaneously drives the continuous growth of storage, management, and usage demands. The company is closely following the storage expansion wave driven by AI, adding high-performance embedded storage products to provide core storage support for AI terminals, edge computing, and other devices, establishing a new engine for business growth and achieving technological upgrades and market expansion.
(3) Introduce advanced production equipment to achieve the expansion of the company’s product matrix
Currently, the embedded storage market is entering an explosive growth cycle, driven by the increased penetration of AIoT devices, the popularity of smart wearables, and the upgrade of automotive electronics, leading to a surge in demand for high-performance, high-reliability storage chips. The company has anchored its strategic vision on industry development opportunities, accelerating the upgrade from mobile storage to high-value-added embedded storage products, and has initially completed the customer ecosystem layout. However, the existing production equipment is no longer compatible with the higher precision standards for die bonding, wire bonding, and wide-temperature testing of embedded storage key production technologies.
This project will introduce imported fully automatic die bonding machines, fully automatic wire bonding machines, high-precision molding machines, high-precision cutting machines, AOI ball placement automatic inspection machines, AOI wire bonding automatic inspection machines, ultrasonic scanning machines, and automated testing systems to achieve leaps in manufacturing precision and breakthroughs in product consistency, overcoming technical bottlenecks for smart wearable devices, smartphones, and other terminal scenarios, providing core support for strategic upgrades.
By introducing intelligent production equipment, the company will enhance packaging and testing technology to meet the cutting-edge demands of downstream manufacturers and other customers for high-performance embedded storage devices. After the project is completed, the company will be capable of providing high-reliability embedded storage solutions for leading downstream customers, expanding the company’s product matrix, and further enhancing market share through strengthened strategic collaboration.
5. Feasibility of Project Implementation
(1) National support policies ensure the smooth implementation of the project
The semiconductor industry is the strategic cornerstone of national technological self-reliance and industrial chain security, and its technological autonomy and supply stability directly relate to the security of digital economic infrastructure and the competitiveness of high-end manufacturing, being listed as a primary development area in “Made in China 2025.” As an important branch of the semiconductor industry, semiconductor storage is strongly supported by national policies.
In October 2023, six departments, including the Ministry of Industry and Information Technology, issued the “Action Plan for the High-Quality Development of Computing Power Infrastructure,” proposing to accelerate the research and application of storage technology, focusing on technologies such as all-flash storage, blue light storage, high-density hardware, data reduction, coding algorithms, and chip offloading, to promote the innovative development of advanced storage. They encourage the deployment and application of advanced storage technologies to achieve the upgrade of storage to flash memory, enhancing China’s competitiveness in all-flash technology.
In January 2024, the Ministry of Industry and Information Technology and seven other departments issued the “Implementation Opinions on Promoting Innovation and Development of Future Industries,” proposing to promote the upgrade of advanced basic materials such as non-ferrous metals, chemicals, and inorganic non-metals, develop key strategic materials such as high-performance carbon fiber and advanced semiconductors, and accelerate the innovative application of frontier new materials. In May 2024, the Ministry of Industry and Information Technology and three other departments released the “Action Plan for the Construction of Information Standards (2024-2027),” proposing to increase efforts in tackling key technology standards in integrated circuits, new storage chips, and promote the development of application standards for AI chips, automotive chips, and consumer electronics chips. In May 2025, the Ministry of Industry and Information Technology and three other departments issued the “Implementation Plan for the Digital Transformation of the Electronic Information Manufacturing Industry,” proposing to develop and promote computing processors, high-performance chips, new storage devices, edge computing devices, and high-performance computers in areas such as computing power, algorithms, and data.
(2) Mature production experience and solid technical accumulation provide strong support for project implementation
The company’s core team has been deeply involved in the storage field for over ten years. Relying on its deep technical accumulation and production experience in the semiconductor storage field, the company has established a complete production system and R&D platform, possessing mature capabilities in the entire packaging and testing process and high-efficiency production management mechanisms, providing solid guarantees for the large-scale production of embedded storage products. In product development, the company continuously promotes technological breakthroughs and process optimizations, achieving continuous optimization of performance and cost through yield improvement and process enhancement. Currently, the company has completed production verification for some SD NAND and LPDDR products and has received customer orders.
In terms of R&D, the company continues to invest resources in semiconductor storage technology research, covering key technology areas such as embedded storage interfaces, low-power design, and high-density packaging, possessing independent and controllable R&D capabilities. The company will continuously promote technological breakthroughs through joint laboratories established with well-known domestic universities, providing continuous momentum for the performance enhancement and market competitiveness of embedded storage products.
The company’s mature production system, solid technical accumulation, and continuous R&D investment provide a solid foundation for the smooth implementation of the fundraising project.
(3) Existing customer resources and industry chain collaboration lay the foundation for capacity digestion
Since its establishment, Chip Storage Technology has focused on the R&D, production, and sales of storage products, which are widely used in consumer electronics, industrial control equipment, household appliances, automotive electronics, smart home, Internet of Things, servers, and data centers, accumulating a stable cooperative customer base among industry leaders. After the project is completed, it can rely on existing customer industry chain resources for order migration and demand expansion, achieving rapid capacity digestion.
At the same time, based on the certain trend of accelerating domestic substitution in the storage industry chain, the strategic collaboration with downstream terminal manufacturers will continue to deepen. On one hand, enterprises with production capacity will have priority for sample delivery to downstream customers, and leveraging the ecological resources in the electronic information industry, the company can prioritize entry into the supplier selection list of leading enterprises, leveraging small-batch trial production to drive large-scale orders; on the other hand, the supply chain brought by large-scale production will enhance the company’s bargaining power, allowing for more precise and efficient fulfillment of customer requirements in terms of quality, price, and stringent certification systems, compressing raw material procurement costs and customer certification cycles.
In the future, as the localization policies deepen and the company’s rapid response advantages become apparent, the customer order conversion rate will enter a continuous upward channel.
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