On the evening of September 1, 2025, Chengdu Huawi (688709.SH) announced that the company has successfully released its 4-channel 12-bit 40G high-speed high-precision RF direct sampling ADC (Analog-to-Digital Converter). This breakthrough aligns with the recent intensive merger and acquisition activities in the domestic semiconductor industry, marking that China’s semiconductor industry is accelerating its entry into high-end fields driven by both technological innovation and capital integration.
Technological breakthroughs achieve a shift from “following” to “running alongside”
The HWD12B40GA4 ADC chip released by Chengdu Huawi is a 4-channel, 12-bit resolution, 40GSPS (giga-samples per second) multi-channel high-speed high-precision RF direct sampling ADC, representing the highest level in the domestic field. This chip has achieved significant breakthroughs in several key indicators: it supports a configurable sampling rate of 24~40GSPS in 4-channel mode and 48~80GSPS in dual-channel mode; it has an input analog bandwidth of up to 19GHz, a noise spectral density as low as -152dBFs/Hz, and a spurious-free dynamic range exceeding 54dB at an input frequency of 18GHz (within the Ku band).
Importantly, this chip is designed entirely with independent forward design and possesses complete independent intellectual property rights, breaking through key technologies such as multi-channel RF direct sampling ADC architecture design, high-linearity dynamic amplifiers, and low-jitter clocks. Related innovative technologies have applied for multiple domestic and international invention patents. Even more noteworthy is that all wafer fabrication and packaging processes are completed by domestic manufacturers, achieving complete control over production and supply, which is of great significance for ensuring the security of the industrial chain.
A representative from the securities department of Chengdu Huawi stated in an interview that the company has compared this chip with similar products from ADI (Analog Devices, Inc.) and Texas Instruments, saying, “This chip currently has the highest specifications.” This statement marks a leap for China in the high-end ADC chip field from following to running alongside, with some indicators even reaching a leading level.
As a “bridge” connecting analog and digital signals, ADC chips are core components in fields such as radar, communications, and measurement, and their performance directly determines the overall level of electronic systems. For a long time, high-end ADC chips have been a shortcoming of China’s semiconductor industry, heavily reliant on imports. The successful development of this chip by Chengdu Huawi fills the gap of similar products domestically and internationally, reaching an internationally leading technological level, which will strongly promote the independent and controllable development of related fields in China.
Mergers and acquisitions create industrial synergy effects
While technological breakthroughs are occurring, mergers and acquisitions in the Chinese semiconductor industry are also in full swing. Around September 2, several domestic chip companies announced significant merger transactions, sparking a wave of industrial consolidation.
Jiehuate announced that the company intends to jointly purchase a portion of the equity of New Port Coast (Beijing) Technology Co., Ltd. with Xiamen Jianda Xinjie Investment Partnership and Xiamen Huijie Jiaying Enterprise Management Partnership, with a total transfer price of 418 million yuan. Upon completion of the transaction, Jiehuate will directly and indirectly hold a total of 35.3677% equity in New Port Coast. New Port Coast is one of the few clock chip design companies globally with core competitiveness and complete independent intellectual property rights, with products already in mass production for leading industry clients, covering applications in communication infrastructure such as communication base stations, data centers, servers, and laptops.
Earlier, Xingchen Technology announced that it would acquire 53.3087% equity in Shanghai Furui Kun Microelectronics Co., Ltd. for approximately 210 million yuan in cash, making Furui Kun a controlling subsidiary of the company after the transaction is completed. Furui Kun is a high-tech enterprise focused on the design, research, and sales of Bluetooth chips, recognized as a national-level specialized and innovative “little giant” enterprise in 2024, with 24 authorized invention patents and 74 integrated circuit layout designs. Its products cover various application scenarios in consumer, industrial, and automotive-grade categories, with multiple products passing AEC-Q100 automotive certification, PSA Certified safety certification, and ISO26262 functional safety management system certification.
Xingchen Technology stated that by acquiring control of Furui Kun, the company can further strengthen its capabilities in connectivity, audio, and low power based on its existing five core IPs, endowing its main chip platform with integrated competitiveness of “perception + computation + connectivity” to create an industry-leading complete SoC self-developed IP platform. This acquisition is essentially a strategic complement between “intelligent computing” and “reliable connectivity,” through chip-level synergy, software stack integration, and scenario-based solution innovation, both parties will jointly build a more balanced competitive edge in performance, power consumption, and cost for edge AI SoC chips.
In the manufacturing sector, industry consolidation is also accelerating. On the evening of August 31, Huahong Company announced that it intends to acquire 97.4988% equity of Shanghai Huali Microelectronics Co., Ltd. held by its controlling shareholder Huahong Group and four other trading parties through the issuance of shares and cash payment. The announcement stated that the listed company and the target company have synergistic effects in process technology platforms, customer resources, supply chain management, technology, and production capacity, and this transaction will enhance the asset quality of the listed company and increase its profits.
SMIC also recently announced that the company intends to purchase 49% minority equity of SMIC North through the issuance of ordinary shares (A shares) in RMB. SMIC North focuses on 12-inch wafer manufacturing, with a process range covering 65nm to 28nm, and has two 300mm production lines with a monthly capacity of 35,000 wafers each. Minsheng Electronics analysis believes that after acquiring the remaining 49% equity, SMIC’s shareholding ratio will rise to 100%, significantly enhancing its net profit attributable to shareholders while meeting the exit needs of shareholders such as the National Integrated Circuit Industry Investment Fund Phase I.
Industrial upgrade towards high-quality development
The dual drive of technological breakthroughs and capital integration is reshaping the competitive landscape of China’s semiconductor industry, pushing the industry towards a high-quality development stage. This round of industrial upgrade presents three distinct characteristics:
First, technological innovation is shifting from isolated breakthroughs to system capability enhancement. The breakthrough of Chengdu Huawi’s ADC chip is not an isolated event but a continuous innovation based on the company’s existing multi-channel high-speed high-precision ADC technology. Similarly, Xingchen Technology’s acquisition is also aimed at building an integrated system capability of “perception + computation + connectivity,” which is strategically more significant than breakthroughs in individual products.
Second, industrial integration is shifting from scale expansion to ecosystem building. From recent merger cases, domestic semiconductor companies’ mergers no longer pursue simple scale expansion but focus more on industrial chain synergy and ecosystem building. Jiehuate’s acquisition of New Port Coast aims to improve product mix and enhance competitiveness in the signal chain chip field; Xingchen Technology’s acquisition of Furui Kun aims to achieve a strategic shift from chip supplier to intelligent IoT solution provider; the mergers of Huahong and SMIC aim to enhance capacity synergy and technological innovation capabilities.
Third, the development model is shifting from policy-driven to market-driven. Although policy support remains important, the current development of China’s semiconductor industry increasingly relies on market forces. Furui Kun is required to achieve a cumulative net profit of no less than 100 million yuan from 2026 to 2028, and this performance commitment mechanism will force companies to enhance their market competitiveness. Chengdu Huawi’s chips have been sampled to some customers and have received intention orders, indicating market recognition of domestic high-end chips.
Looking ahead, the development prospects of China’s semiconductor industry are broad, but challenges remain. Chengdu Huawi also emphasized in its announcement that the released chip is still in the early stage of market introduction and has not yet achieved large-scale sales, with risks such as market demand uncertainty and customer validation failures. In terms of mergers and acquisitions, how to achieve effective integration of technology, talent, and market, avoiding simple capital stacking, is also a challenge that enterprises need to face.
However, with the continuous improvement of technological innovation capabilities and the gradual perfection of the industrial ecosystem, China’s semiconductor industry is ushering in a historic development opportunity. Under the dual influence of national strategic support and market demand, Chinese semiconductor companies are expected to achieve more breakthroughs in the high-end chip field, contributing Chinese wisdom and solutions to the global semiconductor industry development.