In recent years, driven by several national policies, China’s sensor industry has achieved rapid growth. In 2023, the market size of the entire industry reached 364.47 billion yuan, and it is expected to rise to 554.72 billion yuan by 2026. However, in this promising sector, increasingly fierce market competition is accelerating industry consolidation, and some companies are even facing sudden operational crises.
On September 9, the National Enterprise Bankruptcy Reorganization Case Information Network showed that the People’s Court of Luojiang District, Quanzhou City, Fujian Province, has officially accepted the bankruptcy liquidation case of Xirenma Joint Measurement and Control (Quanzhou) Technology Co., Ltd. (hereinafter referred to as “Xirenma”). Once a rising star in the sensor and chip field, the company had received multiple rounds of financing and laid out major projects in various locations, but now it is heading towards bankruptcy, and its sudden turn of development has attracted significant attention from the industry.
▍Highlight Moment: Capital Favor and Technological Accumulation
Xirenma was established in March 2017. Although it has a history of less than ten years, it showed strong development momentum in its early stages. The company adopted the IDM (Integrated Device Manufacturer) model, focusing on the research and development and manufacturing of high-end MEMS sensors and chips. It has a 6,000 square meter ultra-clean workshop and advanced micro-nano processing laboratory, and possesses an 8-inch compatible 6-inch MEMS smart sensor chip production line, accumulating deep expertise in advanced materials, MEMS chips, ASIC chips, and sensor-related technologies. In 2021, it was selected as one of the “Top Ten MEMS Companies in China’s Semiconductor Industry.”
The founder, Dr. Nie Yongzhong, is regarded as a representative of the “technical faction” in the industry. He obtained a Ph.D. in Testing Measurement Technology and Instruments from Xiamen University and a Ph.D. from Tsinghua University’s School of Integrated Circuits, and holds a senior engineer title at the professor level. In the field of sensors and chips, he and his team have obtained more than 220 patents, including nearly 70 international invention patents.
Before starting his own business, Nie Yongzhong had an impressive career. He served as the global technology leader for MEGGITT Ltd., the world’s largest aviation sensor company, overseeing the development of sensors for Boeing 787 and Airbus A380 Trent900/1000 engines, and participated in the design of various key aviation sensors in China. Additionally, he is the pioneer of microwave blade tip gap measurement theory and calibration methods and has also served as the global R&D leader for Honeywell Sensors.
In the capital market, Xirenma has always been favored. From 2019 to 2024, the company completed a total of 12 rounds of financing, attracting many well-known investment institutions such as Langrun Fund, Jinfeng Investment, Xindin Capital, Huoyan Investment, Yongchangsheng Investment, Jingcheng Capital, Simai Industrial Finance, Meilan Lake Investment, China-Belgium Fund, Bojiang Capital, Changrong Capital, Lianhua Science and Technology Innovation, Ruiling Capital, and Shanghai International Asset Management.
With the dual push of funds and technology, Xirenma embarked on rapid expansion. In November 2022, the company signed a project with Shanghai Jinshan District with a total investment of 3.65 billion yuan, planning to build an 8-inch chip production line with an annual output of 600,000 pieces, as well as a third-generation compound semiconductor epitaxy and chip production line compatible with 6-inch and 4-inch. In February 2023, Xirenma signed another agreement in Shanghai Jiading; in November of the same year, it reached a strategic cooperation with the People’s Government of Anting Town, Jiading District, planning to invest 3.6 billion yuan to build an 8-inch sensor and digital electronic chip mass production line factory, expected to be completed by the end of 2025, with an annual output value of no less than 1.5 billion yuan after reaching production capacity.
▍Sudden Turn: From Industry Star to Bankruptcy Liquidation
Xirenma is headquartered in Quanzhou, Fujian, and once fully mastered key links in chip design, manufacturing, and packaging testing, capable of independently supplying chip products and providing module and system solutions. The company has obtained nearly 500 patents and once performed remarkably in the industry.
However, unexpectedly, this highly anticipated company ultimately headed towards bankruptcy liquidation in September 2025.
According to the court announcement, the Quanzhou Intermediate People’s Court ruled on September 1, 2025, to accept the bankruptcy liquidation application filed by the Quanzhou Industrial Equity Investment Fund Co., Ltd. against Xirenma, and designated the Luojiang District People’s Court to hear the case. The court officially filed the case on September 3 and appointed Quanzhou Zhonghe Limited Liability Accounting Firm as the bankruptcy administrator.
Interestingly, the Quanzhou Industrial Equity Investment Fund Co., Ltd., which applied for Xirenma’s bankruptcy, is its third-largest shareholder, holding 6.0862% of the shares.
Information from Qichacha further reflects Xirenma’s operational difficulties: the company has been listed as a dishonest executor and is subject to restrictions on high consumption, involved in 299 judicial cases, of which more than 83% of the cases have Xirenma as the defendant, covering various types of disputes including contracts, labor disputes, and technical services.
Meanwhile, the previously highly anticipated Shanghai Jiading chip project, with a total investment of 3.6 billion yuan, has now completely stalled, ringing alarm bells for the current excessive expansion in the sensor and chip industry alongside the company’s bankruptcy.