The semiconductor industry is the cornerstone of modern information society, characterized by a highly complex supply chain with clear specialization, covering the complete chain from raw materials to end applications. The semiconductor supply chain, from upstream (materials and equipment), midstream (design, manufacturing, packaging, and testing) to downstream (applications and terminals), relies on continuous technological innovation. Overcoming the “bottleneck” challenges in key areas, building a self-controllable industrial chain ecosystem, and securing a place in global competition require the entire industry to unite and tackle these hard problems with perseverance.
From upstream material purification and equipment development to midstream chip design and wafer manufacturing, and downstream packaging testing and terminal applications, the technological barriers at each stage need innovation to break through.
In recent years, with the explosion of emerging technologies such as artificial intelligence (AI), 5G communication, and autonomous driving, the global semiconductor industry has entered a new growth cycle.At the same time, geopolitical factors have accelerated the trend of supply chain localization, providing significant development opportunities for China’s semiconductor industry under the dual logic of “domestic substitution” and “AI-driven”.
Domestic computing power and self-control are the long-term core strategic lines of the semiconductor industry.
Against the backdrop of fluctuating situations regarding AI computing power chips between China and the U.S., domestic large model manufacturers and internet companies are expected to continue to expand the procurement and application ratio of domestic chips in the future.
From an industrial ecosystem perspective, the chip segment forms a close collaborative development pattern with the related systems of equipment and materials in the supply chain.
In the context of domestic large manufacturers expanding advanced processes, advanced capacity is expected to further drive the demand for equipment and materials.
Equipment is the cornerstone of high barrier upstream in the semiconductor supply chain and the front-end track, and its technological development directly determines the process capability and yield level of chip manufacturing.
Last Thursday, DeepSeek ignited the entire electronics/semiconductor sector on Friday by stating in the comment section that “UE8M0 FP8 is designed for the upcoming next-generation domestic chip.”
On Friday, the market value of the semiconductor chip sector in A-shares reached 11.54 trillion yuan, continuing to set a historical high, surpassing the banking industry and ranking first.
This article outlines ten underrated companies in the semiconductor chip industry for your research and reference.
10th: Silan Microelectronics
Subfield: Third-generation semiconductors and integrated circuits.
Price-to-book ratio: 3.97
Highlights in the semiconductor field: One of the largest integrated circuit chip design and manufacturing (IDM) companies in China, establishing a complete IDM model that integrates the entire industry chain of “chip design, chip manufacturing, and chip packaging.” The technology and products cover various fields such as green power chip technology and MEMS sensor technology, maintaining a leading position in multiple technical areas with a top-notch design and R&D team and a national-level postdoctoral research workstation.
9th: PureTech
Subfield: Semiconductor process equipment and process support equipment.
Price-to-book ratio: 2.20
Highlights in the semiconductor field: A mainstream supplier in the domestic semiconductor equipment and high-purity process system field, with core businesses covering semiconductor process equipment, high-purity process system integration, and support equipment, mastering core technologies such as wet cleaning and high-purity fluid control. Its self-developed 14nm wet cleaning equipment has been validated on the SMIC production line, with clients including SMIC and Huahong, among other leading domestic integrated circuit manufacturers.
8th: Zhongying Electronics
Subfield: Chip design and R&D.
Price-to-book ratio: 5.18
Highlights in the semiconductor field: One of the earliest chip design companies in China, with industrial control MCUs and lithium battery management chips occupying an important market position. The company’s products include industrial-grade and automotive-grade MCUs, lithium battery management chips, and AMOLED display driver chips. After being taken over by the Shanghai state-owned assets platform, it is expected to achieve breakthroughs in high-end fields such as automotive-grade MCUs and AMOLED display drivers, benefiting from the trend of intelligentization in new energy vehicles.
7th: Blue Arrow Electronics
Subfield: Semiconductor packaging and testing.
Price-to-book ratio: 3.54
Highlights in the semiconductor field: Specializing in semiconductor packaging and testing, it is a national high-tech enterprise, mastering SIP system-level packaging and 12-inch wafer full-process packaging and testing capabilities, achieving automated production with an annual capacity exceeding 15 billion semiconductor devices, with products indirectly used in the Huawei supply chain and layout in GaN and other third-generation semiconductor packaging technologies.
6th: Geke Micro
Subfield: Semiconductors and integrated circuits.
Price-to-book ratio: 5.80
Highlights in the semiconductor field: Adopting a Fab-Lite business model, it is a champion in the CMOS image sensor manufacturing industry. It provides a rich array of mobile image sensor products, covering from 80,000 pixels to 50 million pixels, based on self-developed FSI, BSI technologies, and a 12-inch specialty process Fab platform, also independently developing COM packaging and OIS packaging solutions, providing customers with high-performance module overall solutions.
5th: Xidi Micro
Subfield: Integrated circuits and chips.
Price-to-book ratio: 4.55
Highlights in the semiconductor field: A leading domestic analog chip manufacturer, recognized as a national specialized and innovative “little giant” enterprise, focusing on the development of analog and power management integrated circuits. Its products focus on AI and automotive fields, launching intelligent automotive high-side switch chips, AI power management chips, and server E-fuses solutions, establishing a matrix of analog chip solutions with diversified scenarios and differentiated competitive advantages.
4th: Dagang Co., Ltd.
Subfield: Integrated circuits.
Price-to-book ratio: 2.63
Highlights in the semiconductor field: Its subsidiary Suzhou Keyang is the core platform for its semiconductor business, one of the few companies mastering wafer-level chip packaging technology, mastering advanced packaging core technologies such as TSV, microbumping, and RDL, mainly applied in the packaging of CIS chips and filter chips.
3rd: Hangyu Micro
Subfield: Embedded SoC/SiP chips/modules.
Price-to-book ratio: 5.86
Highlights in the semiconductor field: It has built Asia’s first “SIP three-dimensional packaging module/system digital production line” that meets aerospace standards, and has taken the lead in launching aerospace core processor technology products based on the SPARC V8 architecture. Its self-developed Yulong 810A chip features a heterogeneous multi-core architecture, using FD-SOI production technology, with high performance, high reliability, and low power consumption, aimed at aerospace, intelligent manufacturing, and other application scenarios.
2nd: Youyan Silicon
Subfield: Semiconductor silicon materials.
Price-to-book ratio: 3.62
Highlights in the semiconductor field: One of the earliest units to conduct research and industrialization of zone-melt silicon single crystal materials, it is a leading enterprise in semiconductor silicon materials. It was the first in China to achieve the industrialization of 6-inch and 8-inch silicon wafers and has broken through key technologies for 12-inch silicon wafers, with mass production capabilities, being one of the only two manufacturers in China mastering 8-inch zone-melt single crystal-related technologies, with product technical indicators reaching international advanced levels.
1st: Huatian Technology
Subfield: Integrated circuit packaging and testing.
Price-to-book ratio: 2.14
Highlights in the semiconductor field: One of the top three integrated circuit packaging and testing companies in China, its main business covers the packaging and testing of semiconductor integrated circuits, MEMS sensors, and semiconductor components, with products widely used in computers, network communications, consumer electronics, and the Internet of Things, possessing scale advantages and rich packaging and testing experience.
Conclusion:
The semiconductor supply chain is a highly globalized, capital-intensive, and technology-intensive ecosystem, where the absence of any link may lead to “bottlenecks.” Currently, the world is experiencing threefold challenges of supply chain restructuring, technological paradigm shifts, and geopolitical games. For China, breaking through the four major bottlenecks of EDA, lithography machines, high-end materials, and advanced processes, and building a self-controllable semiconductor industrial system is key to achieving technological self-reliance and strength.
The semiconductor industry is not only a technological battle but also a national strategic asset.
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Author’s statement: This article is compiled based on publicly available information for analysis purposes only,and does not constitute any investment advice, guidance, or commitment. It is for academic discussion only, please read with caution. If there are omissions or errors, please refer to the latest information.