Guangzhou-based semiconductor company pushes for IPO, as a peer of SMIC
Amid the wave of domestic substitution, another semiconductor company is seeking to go public.
According to Gelonghui, on June 15, Yuexin Semiconductor Technology Co., Ltd. (hereinafter referred to as "Yuexin Semiconductor") has passed the review and plans to list on the ChiNext of the Shenzhen Stock Exchange. GF Securities is the sponsor.
Yuexin Semiconductor is committed to providing 12-inch wafer foundry services and specialty process solutions for domestic and overseas chip design companies. In 2025, its revenue was nearly 2.6 billion yuan, but it was still in a loss state, and there is a significant gap in business scale and technical level compared with leading peers such as TSMC and SMIC.
Guangzhou Semiconductor Company Seeks to Go Public, Aims to Raise 7.5 Billion Yuan
Yuexin Semiconductor is registered in Huangpu District, Guangzhou. Its predecessor, Yuexin Co., Ltd., was established in 2017, jointly funded by Yuxin Zhongcheng and Science City Group, and was transformed into a joint-stock company in 2023. Its equity structure is relatively dispersed, with no controlling shareholder or actual controller.
Before this issuance, shareholders of Yuexin Semiconductor holding more than 5% of the shares include Yuxin Zhongcheng, Guangdong Semiconductor Fund, Guangzhou Huaying, Science City Group, and SDIC Venture Capital Fund, with shareholding ratios of 16.88%, 11.29%, 9.51%, 8.82%, and 7.05% respectively.
At the end of 2025, the company had a total of 1,943 employees. Among them, production personnel accounted for as high as 66.86%, while R & D, management, and sales personnel accounted for 17.65%, 12.35%, and 3.14% respectively.
In terms of management, Chen Jin, the chairman of Yuexin Semiconductor, was born in 1971 and holds a master's degree. He has served as a director and president of Guangzhou Zhiguang Electric Co., Ltd., the chairman and president of Guangzhou Jinpeng Group Co., Ltd., the deputy general manager of Guangzhou Kaide Holdings Co., Ltd., the chairman of Guangzhou Development Zone Construction Venture Capital Co., Ltd., and also served as the chairman of Guangzhou Yuexin Semiconductor Technology Co., Ltd.
CHEN, WEI TONY, the general manager, was born in 1959 and holds a master's degree. He has served as the vice president of sales and customer support of Shanghai Huahong Grace Semiconductor Manufacturing Corporation, the chief representative and general manager of the China branch of Chartered Semiconductor Manufacturing Ltd., and also served as the general manager of Guangzhou Yuexin Semiconductor Technology Co., Ltd.
In this IPO, Yuexin Semiconductor plans to raise 7.5 billion yuan for the 12-inch integrated circuit analog specialty process production line project (Phase III project), specialty process technology platform R & D project, R & D project of silicon photonics process and optoelectronic co-packaging key technologies based on 65nm logic, R & D project of key technologies for MCU based on the eNVM process platform, R & D project of in-memory computing chips based on 22nm logic and RRAM memory device process technology, and to supplement working capital.
Projects funded by the raised capital. The picture is from the prospectus.
Over 70% of Revenue Comes from Integrated Circuit Foundry Business, with High Customer Concentration
The upstream of the semiconductor industry chain includes EDA, IP, integrated circuit raw materials, and integrated circuit equipment.
The midstream is the semiconductor manufacturing industry, covering three major links: chip design, wafer manufacturing, and packaging and testing.
The downstream application scenarios include consumer electronics, industrial control, data centers, communication equipment, aerospace, automotive electronics, artificial intelligence, computers, etc.
The picture is from the prospectus.
Yuexin Semiconductor focuses on the semiconductor manufacturing segment, mainly providing 12-inch specialty process wafer foundry services for products such as integrated circuits and power devices, serving chip design companies and end customers.
Specifically, in 2023, 2024, and 2025 (hereinafter referred to as the "reporting period"), more than 70% of Yuexin Semiconductor's revenue came from the integrated circuit foundry business, and the revenue from power device foundry accounted for about 20%.
In the field of integrated circuit manufacturing, Yuexin Semiconductor has formed process technology platforms such as MS (mixed signal), HV (high-voltage display driver), CIS (CMOS image sensor), eNVM (embedded non-volatile memory), BCD (Bipolar-CMOS-DMOS), and SiPho (silicon photonics). The integrated circuit process technology nodes cover 180nm - 55nm.
In the field of power devices, the company has MOSFET (metal-oxide-semiconductor field-effect transistor) and IGBT (insulated gate bipolar transistor) process technology platforms.
In terms of application fields, during the reporting period, about 80% of the company's revenue came from the consumer electronics field. The revenue from the industrial control field also increased, and there was also a small amount of revenue from fields such as automotive electronics.
Classification of the company's main business revenue by application field. The picture is from the prospectus.
Currently, Yuexin Semiconductor has two 12-inch wafer fabs with a planned total production capacity of 80,000 wafers per month. As of the end of 2025, the production capacity has reached 63,300 wafers per month. The company has started the construction of a third factory, and after completion, the total production capacity will reach 120,000 wafers per month.
Yuexin Semiconductor's main customers are well-known domestic and overseas chip design companies. The customer product categories cover fingerprint recognition chips, high-voltage display driver chips, image sensors, power management chips, power devices, etc. As of the end of 2025, the company has developed more than 200 customers in total.
During the reporting period, the proportion of the total sales revenue of Yuexin Semiconductor to the top five customers in the current main business revenue was 53.90%, 60.34%, and 62.68% respectively, indicating a risk of high customer concentration.
Not Yet Profitable, Technical Level Lags Behind TSMC and SMIC
With the development of application fields such as artificial intelligence, the Internet of Things, automotive electronics, and consumer electronics, the semiconductor industry has also developed rapidly. Among them, wafer foundry enterprises such as Yuexin Semiconductor are specifically responsible for wafer manufacturing, providing wafer foundry services for chip design companies.
In 2024, the global wafer foundry industry recovered, and the market size reached $141 billion. It is expected that the global wafer foundry market size will reach $249 billion in 2029.
According to statistics from institutions such as SEMI, the market size of China's wafer foundry industry in 2024 was $14.3 billion, and it is expected to reach $26.6 billion in 2029, with an expected average compound growth rate of 13.22% from 2024 to 2029.
The picture is from the prospectus.
China has the most extensive application scenarios and market demand for analog chips and is the world's largest consumer market for analog chips. However, the self-sufficiency rate of analog chips is still relatively low. According to statistics from Zhiyan Consulting, the self-sufficiency rate of analog chips in China was about 16% in 2024, leaving a vast space for domestic substitution.
Amid the growth of the domestic wafer foundry industry and the wave of domestic substitution, in recent years, Yuexin Semiconductor's revenue has shown an upward trend, but it is still in a loss state, and the loss amount has increased.
In 2023, 2024, and 2025, Yuexin Semiconductor's operating revenues were approximately 1.044 billion yuan, 1.681 billion yuan, and 2.582 billion yuan respectively, and the corresponding net profits were approximately -1.917 billion yuan, -2.327 billion yuan, and -2.49 billion yuan respectively, with a cumulative loss of more than 6.7 billion yuan in three years.
Upon review, from January to March 2026, the company's operating revenue was approximately 805 million yuan, a year-on-year increase of 71.95%; the net profit was approximately -632 million yuan, and the loss increased year-on-year. The company expects to turn a profit as early as 2029.
The wafer manufacturing industry in which Yuexin Semiconductor operates has the characteristics of heavy assets and high technology intensity, and R & D expenditure is an important expense for the company. During each period of the reporting period, the company's R & D expenses were approximately 605 million yuan, 446 million yuan, and 422 million yuan respectively, accounting for 58%, 26.5%, and 16.36% of the operating revenue respectively.
It is worth noting that the wafer foundry industry has a high technical threshold and a long technology R & D and verification cycle. Especially in the development process of new process nodes such as 40nm, 28nm, and 22nm, there may be risks such as difficulties in breaking through key technologies and R & D progress falling short of expectations. There is also uncertainty in the process technology development and product verification cycle in fields such as automotive electronics, industrial control, and artificial intelligence.
Currently, there is still a significant gap between Yuexin Semiconductor's business scale and technical level and those of leading peers such as TSMC, United Microelectronics Corporation, GlobalFoundries, and SMIC.
According to statistics from Chip Insights, in 2025, the top five in the global dedicated wafer foundry industry in terms of market share were TSMC (74.25%), SMIC (5.92%), United Microelectronics Corporation (4.54%), GlobalFoundries (4.21%), and Huahong Group (2.86%), and the market concentration of the top five companies in the industry reached 91.78%.
In terms of technical level, Yuexin Semiconductor focuses on the specialty process 12-inch wafer foundry business and has the manufacturing capabilities for products such as analog chips, power devices, and silicon photonics chips. The process nodes cover 180nm - 55nm and will be further extended to 40nm and 22nm in the future.
Leading peers such as TSMC, United Microelectronics Corporation, GlobalFoundries, and SMIC have reached process nodes such as 14nm, 12nm, and 3nm.
The pictures are from Yuexin Semiconductor's prospectus.
During the reporting period, the gross profit margins of Yuexin Semiconductor's main business were -114.9%, -71%, and -58.24% respectively, significantly lower than those of peers such as SMIC, Huahong Grace Semiconductor Manufacturing Corporation, and Jinghe Integrated Circuit Co., Ltd., mainly due to differences in the production line commissioning stages, types of foundry products, and product composition.
Comparison of the company's main business gross profit margin with comparable listed companies. The picture is from the prospectus.
Among peer companies, SMIC and Huahong Grace Semiconductor Manufacturing Corporation have been established for more than 20 years and both have more than three mature mass-production lines. Their mature production lines were built earlier and have passed the main depreciation and amortization periods.
Yandong Microelectronics is also an enterprise with a relatively long establishment time. However, since its 12-inch production line with a large investment scale is still in the production capacity ramp-up stage, the unit cost is relatively high. The first production line of Xinlian Integrated Circuit Co., Ltd. and Jinghe Integrated Circuit Co., Ltd. reached full production earlier than that of Yuexin Semiconductor. In recent years, their production and sales scales have remained at a relatively high level, and their gross profit margins are relatively high.
This article is from the WeChat official account "Gelonghui New Stocks", author: Fa Ge Talks about New Stocks. It is published by 36Kr with authorization.