Accelerating the domestic substitution of high-end electronic pastes, a "little giant" enterprise specialized in niche areas secures nearly 100 million yuan in Series C financing | Exclusive from 36Kr
Text | Lin Qingqing
Editor | Yuan Silai
36Kr learned that "Overseas Huasheng", a high - end micron/nanometer electronic paste supplier, recently completed nearly 100 million yuan in Series C financing. The round was co - led by Nuotie Capital and GCL System Integration Technology Co., Ltd., with Yiwei Capital serving as the exclusive financial advisor. The funds from this round will be used to deepen the R & D of high - end pastes such as MLCC (Multi - layer Ceramic Capacitors), expand production capacity, and explore the Southeast Asian market.
As a key basic material for electronic components, the performance of electronic paste directly affects the precision and reliability of the conductive path of the device. Taking MLCC as an example, its manufacturing requires alternating stacking of thousands of layers of ceramic dielectric and metal electrodes in a single capacitor. The sintering shrinkage rate of nickel paste and the ceramic dielectric error must be strictly controlled within 0.2%, and the particle size of metal particles must be precisely distributed in the 100 - 400 nanometer range. MLCC consists of three parts: ceramic dielectric, metal internal electrode, and metal external electrode. The ceramic dielectric uses high - dielectric - constant materials, the metal internal electrode is mainly made of materials such as nickel and copper, and the metal external electrode mostly uses materials such as silver and copper.
The "2025 White Paper on China's Electronic Paste Industry" by the China Electronic Components Industry Association shows that China consumes 60% of the world's electronic paste. The market scale reached 42 billion yuan in 2024 and is expected to exceed 50 billion yuan in 2025, with an annual compound growth rate of over 18%. However, in the high - end MLCC field, due to the extremely high requirements for technical R & D and production processes of the core main material electronic paste required for production, enterprises from Japan, South Korea, etc. still monopolize more than 90% of the market share, and the domestic production rate is less than 5%, leaving a huge space for import substitution.
Founded in 2016, "Overseas Huasheng" focuses on the R & D, production, and sales of high - precision, micron/nanometer electronic paste. Gao Jun, the chairman of "Overseas Huasheng", told 36Kr that the company entered the market with MLCC nickel paste as the entry point in its early days and is the formulator of the domestic standard for base - metal conductive paste for chip ceramic capacitors. After years of development, it has become a leading high - end electronic paste supplier in China. Its product line has expanded from MLCC nickel paste to multiple fields such as silver paste for ceramic dielectric filters, semiconductor packaging paste, and photovoltaic silver paste, covering key industries such as electronic components, semiconductor packaging, and high - end ceramic substrates.
36Kr learned that "Overseas Huasheng" spent five years breaking through three major technical bottlenecks: powder classification, nano - coating, and process matching, and mastered the internationally leading core technology for preparing high - precision micron/nanometer metal (nickel, silver, copper, gold, palladium, alloy) electronic paste. Its self - developed powder classification equipment can control the standard deviation of nickel powder particle size within 5%, and the sintering temperature range is two - thirds narrower than that of imported products. Currently, the company's MLCC nickel paste has passed the IATF 16949 automotive quality system certification and has become the main supplier of roll - printing paste for leading domestic MLCC manufacturers.
The market substitution process is accelerating. Gao Jun revealed to 36Kr that the price of imported paste is usually 2 - 3 times that of domestic paste, and there is a risk of supply interruption. In addition to the MLCC field, the product line of "Overseas Huasheng" has extended to other fields such as other electronic components, semiconductor packaging, and high - end ceramic substrates.
"High - end paste requires more than ten years of technological precipitation. Domestic production is essentially a reconstruction of the survival ability of the industrial chain," Gao Jun believes. After this round of financing, the company plans to further expand its production scale, improve its automated and intelligent manufacturing capabilities, and aims for a total production capacity of 1000 tons in 2025.
In terms of the team background, the core members of the company include technical experts from leading companies in the industry in Japan, South Korea, Europe, and the United States. The R & D team accounts for about one - third of the company and has many overseas experts.
Views from Investors
Gu Lei of Nuotie Capital said: "At a critical time when the global electronics industry is being reconfigured, high - end electronic paste, as the underlying material supporting strategic fields such as electronic components and semiconductors, its domestic production process is directly related to the security of the industrial chain and the core competitiveness of industrial upgrading. Currently, China's high - end electronic paste is overly dependent on imports, and key technologies are restricted by others. Technological iteration and capacity expansion are urgent. The 'Overseas Huasheng' team completed the full - chain verification from technological breakthrough to industrialization in seven years and has become a leading core supplier of high - end electronic paste in China. It has achieved large - scale shipments to many leading companies in the industry, with high customer satisfaction, greatly accelerating the substitution process of domestic electronic paste.
As a market - oriented fund manager under the Anhui Investment Group, Nuotie Capital has always been concerned about the long - term value creation in the hard - tech field and the development of Anhui's leading industries. This investment in Huaibei will effectively boost the development of Anhui's new materials and new energy industries. We are optimistic about the technological barrier established by Huasheng in the MLCC paste field and more recognize its strategic layout of extending to fields such as filters and semiconductor packaging. Co - leading this round of financing with GCL System Integration Technology Co., Ltd. will not only provide financial support for the enterprise but also rely on GCL's industrial resources in the new energy field to help Huasheng explore new business tracks. We look forward to joining hands with Huasheng to jointly build a value closed - loop from material innovation to industrial collaboration and create a Chinese benchmark in the global high - end electronic materials market."
GCL System Integration Technology Co., Ltd. said: "In the double waves of global energy transformation and electronics industry upgrading, high - end electronic paste is not only the key fulcrum for technological breakthroughs in core electronic components but also the core variable for the iterative upgrading of the photovoltaic new energy industry. As an industrial practitioner in the new energy field, we deeply understand that technological innovation at the material end will directly determine the competitiveness of end - products.
GCL System Integration Technology Co., Ltd. has always focused on building a closed - loop new energy industrial ecosystem. This strategic investment in 'Overseas Huasheng' is based on the dual recognition of its technological strength and industrial value: in the MLCC field, the enterprise has achieved large - scale shipments of high - end electronic paste, realizing large - scale domestic substitution of high - end electronic paste for the first time; in the photovoltaic materials track, Huasheng effectively improves the efficiency of photovoltaic cells through its fully self - developed general paste technology platform and makes technological preparations for the development of materials for future new photovoltaic technology routes.
As a strategic shareholder, we will give full play to our resource advantages in photovoltaic manufacturing, integrated energy system integration, and global market channels to help Huasheng accelerate the industrialization process of new products in the new energy industry and jointly explore important international regional markets such as Europe, the Middle East, and Latin America. We look forward to joining hands with Huasheng to promote the new energy technological revolution through material - end innovation, build a more resilient supply chain system, and contribute Chinese strength to the global clean energy transformation."