The semiconductor industry welcomes a batch of "cross-industry players"

Our Reporter Wu Jixia

Recently, a wave of investment enthusiasm has swept through the semiconductor (Shenwan Secondary Industry Classification) sector in the A-share market. Among them, the entry of a group of “cross-industry players” has attracted particular attention.

On November 17, Hunan Heshun Petroleum Co., Ltd. issued an announcement on signing an equity acquisition intention agreement and related-party transactions, planning to acquire control of Shanghai Kuaixin Integrated Circuit Design Co., Ltd. through cash purchase and capital increase.

On November 6, Mengtian Home Furnishings Group Co., Ltd. also disclosed that the company is planning to acquire control of Shanghai Chuantu Microelectronics Co., Ltd. through issuing shares and paying cash, and is raising supporting funds.

In response to the cross-industry entry, companies within the semiconductor supply chain are actively strengthening their technology and pursuing vertical integration through capital operations. For example, on November 8, Shenzhen YingTang Intelligent Control Co., Ltd. announced a major asset restructuring plan. The company intends to purchase 100% equity of Guilin Guanglong Integrated Technology Co., Ltd. and 80% equity of Shanghai AoJian Microelectronics Technology Co., Ltd. through issuing shares and cash payments. Additionally, the company plans to issue shares to no more than 35 specific investors to raise supporting funds.

On November 7, Suzhou Suda Weige Technology Group Co., Ltd. announced that it had signed a conditional equity purchase agreement with Changzhou Vipu Semiconductor Equipment Co., Ltd. (hereinafter “Changzhou Vipu”), planning to acquire 51% of Changzhou Vipu’s equity with self-raised or internally raised funds totaling 510 million yuan.

Furthermore, companies such as Chipone Microelectronics (Shanghai) Co., Ltd. and Hunan Guoke Microelectronics Co., Ltd. have also initiated mergers and acquisitions, covering core areas such as semiconductor materials, equipment, and digital chip design, demonstrating a clear trend of industry chain integration.

In this regard, Wu Gaobin, Secretary-General of the New Quality Productivity Committee of the China Civil Association, told Securities Daily that vertical integration within the industry chain can promote structural optimization and improve the overall efficiency and competitiveness of China’s semiconductor industry. The participation of cross-industry enterprises brings additional capital and new entrepreneurial ideas, injecting vitality into the industry. However, there is also a need to be cautious of risks associated with blindly following trends.

The support from capital is not limited to this. A number of excellent domestic semiconductor companies are accelerating their march into the capital markets. Since November, Shenzhen Hengyunchang Vacuum Technology Co., Ltd. and Qiangyi Semiconductor (Suzhou) Co., Ltd. have successfully passed IPO review and submitted registration; Ningbo Jianxin Superconducting Technology Co., Ltd. and Muxi Integrated Circuit (Shanghai) Co., Ltd. have received approval for IPO registration; Yishiw (Hangzhou) Technology Co., Ltd. is also scheduled to have its Sci-Tech Innovation Board IPO review on November 21.

The “investment boom” among listed companies reflects the enormous development potential and strategic value of the semiconductor industry. Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, told Securities Daily that semiconductors are the cornerstone of today’s information technology and electronics industry, widely used in emerging fields such as AI, 5G, IoT, and automotive electronics. With the development of the global economy and technological innovation, the market demand for semiconductors will continue to grow.

According to data from Frost & Sullivan, the global semiconductor market size is projected to reach 43.71 trillion yuan in 2024 and grow to 65.48 trillion yuan by 2029. China’s semiconductor market is expected to grow to 16.02 trillion yuan in 2024 and reach 28.13 trillion yuan by 2029.

Regarding the future development direction of the industry, Li Fumin, Director and Senior Partner of Shandong Longxuan Law Firm, told Securities Daily that “in the future, the specialization within China’s semiconductor industry segments will deepen further, particularly in design, manufacturing, and packaging and testing, with a strengthening of leading effects. Meanwhile, the industry will also show clear downstream application-driven features, with actual demands from scenarios like automotive electronics and IoT pushing companies toward differentiated innovation.”

Yuan Shuai stated that, against this background, semiconductor companies should increase R&D investment to enhance independent innovation capabilities and develop competitive products. They should also strengthen cooperation with upstream and downstream enterprises in the industry chain to achieve resource sharing and complementary advantages, jointly promoting industry development. Additionally, companies need to pay attention to market demand changes, adjust product structures and business layouts in a timely manner, and actively seek funding support and policy incentives to create favorable conditions for their growth.