1.65 Billion RMB: Sichuan Power Semiconductor Enterprise to Be Acquired

According to a report from TechSemi on August 6, last night, Suzhou KaiweiTe Semiconductor Co., Ltd. (referred to as "KaiweiTe"), a listed A-share power semiconductor enterprise based in Jiangsu, released an announcement, stating that it plans to acquire 100% equity of Chengdu-based power semiconductor enterprise Jingyi Semiconductor Co., Ltd. (referred to as "Jingyi Semiconductor") at a price of 1.65 billion yuan, and issue shares to no more than 35 specific investors to raise supporting funds.

After the completion of this transaction, Jingyi Semiconductor will become a wholly-owned subsidiary of KaiweiTe.

KaiweiTe expects the amount of supporting funds to be raised to be approximately 901 million yuan, which does not exceed 100% of the transaction price of the assets purchased by issuing shares in this transaction, and the number of shares to be issued shall not exceed 30% of the total share capital of KaiweiTe after the completion of the purchase of assets by issuing shares this time.

Jingyi Semiconductor is one of the main customers of KaiweiTe. This "snake swallows elephant" style acquisition of Jingyi Semiconductor by KaiweiTe constitutes a major asset restructuring.

According to the performance data of both parties in 2025, the higher value between the total assets and the transaction amount of KaiweiTe is about 936 million yuan, and the operating revenue is about 255 million yuan; the higher value between the total assets and the transaction amount of Jingyi Semiconductor is 1.65 billion yuan, and the operating revenue is about 350 million yuan, which are 176.34% and 137.38% of that of KaiweiTe respectively, both higher than those of KaiweiTe.

According to the publicly released plan of KaiweiTe, KaiweiTe achieved profitability in 2023, with a net profit attributable to shareholders of the parent company of 17.795 million yuan; the enterprise recorded losses in both 2024 and 2025, with the net profit attributable to shareholders of the parent company being -97.1893 million yuan and -90.7826 million yuan respectively; in the first quarter of 2026, this figure was -18.0153 million yuan, still in a loss state.

From 2024 to 2025 and January to February 2026, the net profit of Jingyi Semiconductor attributable to owners of the parent company (excluding share-based payment) was 66.6906 million yuan, 89.6814 million yuan and 25.8512 million yuan respectively, with stronger profitability than KaiweiTe.

Assuming the acquisition is completed, the net profit of KaiweiTe attributable to owners of the parent company in 2025 and January to February 2026 will be 20.9468 million yuan and 18.8593 million yuan respectively, and the profitability will be greatly improved.

The performance commitment of both parties to this acquisition is that the customized mass production chip business of Jingyi Semiconductor will achieve cumulative net profit of no less than 255 million yuan in 2026 and 2027; the revenue of the self-developed chip business in 2026, 2027 and 2028 will be no less than 335 million yuan, 452 million yuan and 566 million yuan respectively, and the cumulative revenue in three years will be no less than 1.353 billion yuan.

As of February 28, 2026, the total share capital of KaiweiTe is 73,684,211 shares. For this transaction, KaiweiTe will add 27,736,570 new shares to pay the share consideration to Jingyi Semiconductor.

The share payment consideration of KaiweiTe in this transaction is about 901 million yuan, and the cash payment consideration is about 749 million yuan. Among them, Yi Kun, the actual controller and chairman of Jingyi Semiconductor, as well as Jingge Gongzhi, Jingge Gongchuang and other performance commitment parties, will receive a total consideration of about 998 million yuan in this transaction, of which the share payment consideration is about 659 million yuan and the cash payment consideration is about 339 million yuan.

Among the share consideration obtained by the performance commitment parties, the part corresponding to the customized mass production chip business (i.e. 296 million yuan of share consideration) is planned to be issued in two phases; the remaining share consideration of about 363 million yuan is planned to be paid in one lump sum after the delivery of this transaction.

After the completion of this transaction (without considering the raising of supporting funds), Yi Kun and the employee stock ownership platforms of Jingyi Semiconductor (referring to Yi Kun, Jingge Gongzhi, Jingge Gongchuang, Jingge Gongying, Jingge Dingfeng, and Jingge Weilai) will hold 13.28% of the shares of KaiweiTe; after the completion of the purchase of assets by issuing shares and paying cash, the proportion of KaiweiTe shares controlled by Yi Kun will exceed 5%.

KaiweiTe was founded in 2015. Its founders are Ding Guohua, chairman and alumnus of Xi'an Jiaotong University, and Luo Yin, general manager and alumnus of Southeast University. Both of them graduated from Southeast University with master's degrees.

The company is mainly engaged in the R&D, production and sales of intelligent power semiconductor devices and power integrated chips. It was listed on the STAR Market of the Shanghai Stock Exchange on August 18, 2023, and is a national-level specialized, refined, differential and innovative "Little Giant" enterprise. Its products include Power Device, power management, power driver, amplifier, power switch, isolation device, logic device and other products.

KaiweiTe's products are applied in consumer electronics, industrial control and high-reliability fields, and now it has nearly 800 products including intelligent power ICs, Si-based and SiC power devices.

The day after KaiweiTe announced the acquisition of Jingyi Semiconductor, its A-share stock price hit the daily limit at the opening. As of the A-share market close today, KaiweiTe's stock price rose by 20% to 77.82 yuan per share, with a total market value of 5.734 billion yuan.

A-share stock price of KaiweiTe (Source: Tencent Stock Selection)

Jingyi Semiconductor was founded in January 2019. It is a fabless power semiconductor enterprise and also a national key specialized, refined, differential and innovative "Little Giant" enterprise.

The company is mainly engaged in the R&D, design and sales of single-chip power ICs, multi-chip hybrid packaged power modules, and system-level power conversion modules. It has two major categories of power products: motor drive and power management, specifically covering four product lines: intelligent power modules (IPM), micro motor drive ICs, high-performance computing power management, industrial and consumer power management. Its products are applied in white goods, industry, smart meters, optical modules, solid-state drives (SSD), security, communication, high-performance computing and other market fields.

At the same time, Jingyi Semiconductor purchases power devices from KaiweiTe, and packages them together with self-developed power control ICs into intelligent power module IPM products. The related products have been supplied to leading domestic home appliance enterprises such as Midea, Xiaomi, Gree, TCL, Hisense-Hitachi, and have achieved mass production successfully, with more than 500 cumulative mass production cooperative customers.

Jingyi Semiconductor has been continuously deploying around the half-bridge IPM for air conditioner fans, and was the earliest to realize product introduction and large-scale shipment in the field of half-bridge IPM for white goods. Calculation data from Frost & Sullivan shows that in 2025, Jingyi Semiconductor's products accounted for 53.5% of the domestic market share of IPM half-bridge modules.

According to another calculation by Frost & Sullivan, in 2025, Jingyi Semiconductor ranked among the top 5 domestic local manufacturers in terms of shipment volume in the domestic DC-DC market. Among them, in the field of smart meters, Jingyi Semiconductor's DC-DC chips with ultra-low ripple, high anti-interference and high-efficiency step-down occupy a leading position in the industry in terms of market share, serving core end customers such as State Grid and China Southern Power Grid.

In the field of security, Jingyi Semiconductor provides customers with solutions with extremely simplified peripheral devices and optimized costs, and has successfully supplied to leading security enterprises such as Hikvision and Dahua Technology; in the field of optical modules, the company is one of the few domestic chip suppliers that can achieve mass production of multi-category chips and provide relatively comprehensive power management solutions, and has top customers such as HGTECH, Accelink, and Linkcom Technologies.

Conclusion: M&A restores profitability and expands power semiconductor product layout

KaiweiTe has suffered losses for two consecutive years. This acquisition and merger of Jingyi Semiconductor can further improve the current phased loss situation of KaiweiTe.

The two enterprises have high business fit. After the completion of this transaction, KaiweiTe can carry out integration with Jingyi Semiconductor in product layout, technology R&D, customer channels, internal management and other aspects. KaiweiTe can supplement the product matrix of power semiconductors, enhance the level of technology R&D at the same time, and expand greater market space for domestic power semiconductors.

This article is from the WeChat official account "TechSemi", author: Liu Yu, editor: Chen Junda, published with authorization from 36Kr.