Huafeng Measurement and Control: Semiconductor Backend Testing Equipment, From Analog to SoC

D20250918-Huaxi Securities-Semiconductor Backend Testing Equipment Industry AI Industry Trends Emphasizing Local Testing Equipment Investment Opportunities.pdf20250623-Shenwan Hongyuan-Huafeng Measurement and Control-688200-Semiconductor ATE Leading from Analog to SoC from China to the World.pdfK(The following K section is AI-assisted generation and can be skipped)

1. Huafeng Measurement and Control Basics

1. Basic Technology Layer

• Automated Test Equipment (ATE) Definition: Specialized equipment throughout the semiconductor industry chain’s backend, used for performing electrical performance tests at the wafer level (CP) and finished product level (FT). It controls the input/output of test signals through automated programs and determines whether the chip’s functions and parameters meet standards.

• V/I Source (Voltage/Current Source) Definition: The core hardware unit of the testing system, capable of accurately generating and measuring microvolt/microampere level electrical signals. It is a decisive technology for the accuracy of analog chip testing and directly affects the accuracy of yield judgment.

• CROSS Technology Definition: A cross-platform testing architecture independently developed by Huafeng Measurement and Control, allowing a single test platform (STS8200) to be compatible with various chip tests including analog, mixed-signal, and discrete devices, achieving “one machine for multiple uses” and parallel multi-station testing, thereby reducing customer testing costs.

2. Core Technology Layer

• Wide Bandgap Semiconductor Testing Technology Definition: A dynamic/static parameter testing solution developed for the special physical characteristics of third-generation compound semiconductors such as Gallium Nitride (GaN) and Silicon Carbide (SiC) (high breakdown voltage, high switching frequency), covering the entire chain from wafer level to power modules.

• Intelligent Power Module (IPM) Testing Technology Definition: Module-level testing capability integrating driver circuits and power devices (IGBT/MOSFET), supporting multi-chip synchronous testing under high voltage and high current, applicable in scenarios such as new energy vehicles and photovoltaic inverters.

• Distributed Multi-Station Parallel Control System Definition: The new generation software architecture adopted by STS8600, which decomposes testing tasks into multiple independent control units for synchronous execution, achieving exponential expansion of test channels and frequencies to meet the high parallel testing needs of large-scale SoC chips.

• Self-Developed ASIC Chip Technology Definition: A dedicated integrated circuit main control chip R&D project initiated by the company to break through the bottleneck of high-end SoC testing, aiming to replace general-purpose chips, achieve higher testing accuracy, lower latency, and stronger parallel processing capabilities, serving as the core hardware foundation for the performance leap of STS8600.

3. Product Platform Layer

• STS8200 Platform Definition: The main model launched in 2014, focusing on testing analog and power semiconductors, with over 7,500 units installed globally and a domestic market share of 60%-70%. It can cover all categories of testing by replacing modules, including power management, signal chains, and GaN discrete devices.

• STS8300 Platform Definition: A mid-to-high-end platform aimed at high pin count, high-performance power management chips and mixed-signal SoCs, featuring “All in one” integration. The shipment volume in 2024 is expected to grow significantly year-on-year, becoming a core driver of performance.

• STS8600 Platform Definition: The new generation SoC testing system launched in 2023, featuring more test channels (supporting 1.6T high-speed testing), higher testing frequency, and a water cooling system, specifically designed for AI chips, CPUs/GPUs, and other large-scale digital chips, currently in the customer validation stage.

4. Application Field Layer

• Wafer Testing (CP Testing) Definition: Electrical testing conducted after wafer manufacturing and before cutting and packaging, using a probe station and testing machine to screen out defective bare chips, which is a key link in cost reduction and efficiency improvement. Huafeng Measurement and Control equipment supports 6/8/12-inch wafers.

• SoC Testing Definition: System-level chip testing for integrated CPU, GPU, AI accelerators, and other complex modules, requiring the processing of massive test vectors (depth exceeding 64Mbit), with testing complexity more than ten times that of analog chips.

5. Market and Ecosystem Layer

• Domestic Substitution Definition: An 85% domestic substitution rate has been achieved in the analog testing field, with Huafeng Measurement and Control holding over 50% market share; however, in the SoC testing equipment market, the domestic substitution rate is only 4%-10%, dominated by Advantest V93000 (with 6,000 units installed globally) and Teradyne, which is the breakthrough direction for STS8600.

• Global Installed Base Definition: A core indicator measuring equipment reliability and customer recognition. By the end of 2024, Huafeng Measurement and Control is expected to have installed over 8,000 units, covering leading domestic and international customers such as SMIC, STMicroelectronics, Huawei, and Tongfu Microelectronics.

2. Logical Relationship Chain

1. Technological Foundation: The V/I source provides the basis for testing accuracy, CROSS technology solves platform compatibility, and wide bandgap technology addresses emerging devices, all three supporting product performance.

2. Product Iteration: STS8200 achieves “one machine with multiple capabilities” through CROSS technology, establishing market position; STS8300 scales in the high-performance analog field; STS8600 needs to be equipped with self-developed ASIC chips to break through digital testing barriers, forming a “sell one generation, develop one generation” pattern.

3. Application Layering: Mature products cover analog/power testing (market size approximately $5 billion), with domestic substitution completed; new products tackle SoC testing (market size approximately $4.1 billion), with a domestic substitution rate of only 4%, representing an untapped incremental market.

4. Ecosystem Closed Loop: Increased installed base → customer data accumulation → algorithm optimization → testing efficiency improvement → attracting more customers, forming a “installed base-data-technology” positive flywheel, which is key to Advantest V93000’s success and is the path Huafeng Measurement and Control needs to replicate.

5. Strategic Bottleneck: The validation progress of STS8600 determines whether the logical chain can extend from “analog red sea” to “SoC blue ocean”. The self-developed ASIC chip it carries is the only key to breaking the blockade of overseas main control chip supply chains.

(The above K section is AI-assisted generation and can be skipped)I

Semiconductor testing equipment can be divided into two categories based on application scenarios: frontend detection equipment used in wafer manufacturing and backend testing equipment used after packaging. In the backend testing field, Advantest and Teradyne have long dominated the global market. Among them, system-on-chip (SoC) testing, as a technological high ground, integrates the composite testing capabilities of digital and analog signals and contributes the richest profit pool—currently, Advantest’s V93000 platform nearly monopolizes this high-end market.

In the domestic camp, Huafeng Measurement and Control and Changchuan Technology form a duopoly. In past competition, Changchuan Technology adopted a platform strategy, with a product line spanning multiple categories such as testing machines, sorting machines, and probe stations, excelling in scale but under pressure on profitability; Huafeng Measurement and Control, on the other hand, has focused on the niche field of testing machines, achieving higher profit margins and product premiums through technological focus.

In recent years, both parties have coincidentally shifted their strategic focus to the R&D of SoC testing machines. A breakthrough in this track will not only reshape the domestic competitive landscape but is also expected to initiate a process of catching up with international giants. Currently, Changchuan Technology’s D9000 series testing machines have already achieved mass production and sales, but there are still gaps in core indicators such as testing speed and vector depth compared to international mainstream products; meanwhile, Huafeng Measurement and Control is fully developing the STS8600 platform to compete with Advantest’s V93000. This product is expected to enter customer validation by the end of 2024, with market expectations for the first batch of orders in the fourth quarter of 2025 and to form scaled revenue by 2026. In terms of technical architecture, STS8600 adopts distributed parallel control and self-developed ASIC chips, representing a leap forward, but its validation cycle is longer and commercial uncertainty is higher—if progress does not meet expectations, it will significantly impact Huafeng’s “big single product, high gross profit” business model.

In summary, 2025-2026 has become a critical window period for determining the victory or defeat of the two companies. Given that the validation of SoC testing machines involves complex technical details and commercial secrets, ordinary people cannot know the truth. We can only rely on industry common sense (such as technological generational differences, customer ecosystem barriers) and the capital consensus reflected by K-lines as decision-making basis.

C

1. The industry is developing rapidly, and the domestic penetration rate is low, so there is significant growth potential;

2. Currently, the domestic dual leaders and international giants still have generational differences in products, and the focus of competition is still on developing high value-added new products, not yet at the stage of price competition;

3. Huafeng Measurement and Control has a gross margin of 74.30%, revenue growth of 51.21% year-on-year, and net profit growth of 81.57%, with consensus expectations of 44.88% in 2025, 26.26% in 2026, and 24.98% in 2027. The current non-deducted PE is 49 times;

Changchuan Technology has a gross margin of 54%, revenue growth of 49.05% year-on-year, and net profit growth of 142.14%, with consensus expectations of 106.79% in 2025, 34.31% in 2026, and 24.74% in 2027. The current non-deducted PE is 56 times.

4. Catalysts: Official signing of new products and various news related to semiconductors.

Mark:

688200 $ Close == 166.97 @ 2025/11/27