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On November 12th, the IPO of Qiangyi Semiconductor (Suzhou) Co., Ltd. (hereinafter referred to as "Qiangyi Semiconductor" or "Qiangyi Stock"), a leading domestic MEMS probe card manufacturer, successfully passed the review of the Listing Review Committee of the Shanghai Stock Exchange at the Science and Technology Innovation Board. The Listing Committee stated that Qiangyi Semiconductor meets the issuance conditions, listing conditions, and information disclosure requirements.
As the only domestic manufacturer to enter the top ten of the global semiconductor probe card industry in recent years, Qiangyi Semiconductor has comprehensively covered core participants in various industries such as domestic chip design manufacturers, wafer foundries, and packaging and testing manufacturers, breaking the monopoly of foreign manufacturers in the MEMS probe card field. Qiangyi Semiconductor plans to raise funds through this listing to enhance its research and development capabilities and MEMS probe card production capacity, synchronizing with the improvement of China's semiconductor manufacturing capabilities and ensuring the supply security of China's semiconductor products.
1. Breaking the foreign monopoly, ranking sixth in the global semiconductor probe card market
According to the prospectus, Qiangyi Semiconductor is a high-tech enterprise specializing in serving semiconductor design and manufacturing, focusing on the research, development, design, production, and sales of probe cards, the core hardware for wafer testing.
The probe card is a "consumable" hardware used in the wafer testing phase of the semiconductor production process. It serves as a necessary medium between the wafer testing equipment and the wafer under test, enabling signal connection between the chip and the testing equipment. It is a fundamental supporting component in the semiconductor industry. As an important node between wafer manufacturing and chip packaging, wafer testing can detect chip manufacturing defects and perform functional testing during the construction of semiconductor products. It has significant guiding implications for chip design, directly affecting chip yield and manufacturing costs. It is an indispensable part of chip design and manufacturing, and holds great importance in the semiconductor industry chain.
Based on publicly available information collected and organized, the market size of the semiconductor probe card industry globally and in China in 2024 was USD 2.651 billion and USD 357 million respectively, indicating a relatively small overall scale.
From the perspective of market structure, the top ten manufacturers in the probe card industry have been overseas companies for many years, collectively accounting for more than 80% of the global market share. China's semiconductor industry started relatively late overall, and there is still varying degrees of import dependence in chip design and wafer manufacturing, which in turn leads to a certain lag in the development of China's domestic probe card industry, with a significant self-sufficiency gap for domestic manufacturers. Especially against the backdrop of China's continuously improving semiconductor manufacturing capabilities and the still significant uncertainty in the international situation, the self-control and supply security of probe cards are of great necessity.
Based on whether MEMS technology is used in the manufacturing of probes, probe card products can be categorized into MEMS probe cards and non-MEMS probe cards.
According to the prospectus, in the field of MEMS probe cards, Qiangyi Semiconductor has mastered core technologies in MEMS probe manufacturing, MEMS probe testing, deep processing of space transfer substrates, probe card structure and assembly, and possesses professional technical capabilities in probe card design and assembly, PCB design for probe cards, design and deep processing of space transfer substrates, and design and manufacturing of MEMS probes. It also provides services such as repair and maintenance of probe cards. In the field of non-MEMS probe cards, Qiangyi Semiconductor has mastered core technologies in the assembly of vertical probe cards and cantilever probe cards, possesses professional technical capabilities in probe card design and assembly, PCB design for probe cards, design and deep processing of space transfer substrates, and provides services such as repair and maintenance of probe cards. In addition, Qiangyi Semiconductor also sells wafer test boards, chip test boards, and functional boards externally.
After years of development, Qiangyi Semiconductor has gradually improved its production system and successively established laboratories and factories equipped with advanced research and development equipment and production equipment. It boasts a complete production line from MEMS probe manufacturing to MEMS probe card manufacturing. Currently, it has three 8-inch MEMS production lines and one 12-inch MEMS production line, initially achieving self-reliance and controllability of the core components of the company's probe cards.
As a domestic manufacturer with leading market position in China, possessing independent MEMS probe manufacturing technology and capable of mass producing MEMS probe cards, Qiangyi Semiconductor has broken the monopoly of foreign manufacturers in the field of MEMS probe cards, making significant contributions to enhancing the security and self-controllability of core hardware probe cards required in China's semiconductor wafer testing field.
Based on publicly available information and data from Yole, the combined market share of the top ten probe card manufacturers has exceeded 80% in recent years. Among them, the top five manufacturers, whose ranking has remained unchanged, account for approximately 70% of the market, forming the first tier. Within the top five, FormFactor, Technoprobe, and MJC consistently rank in the top three, maintaining a market share of over 10% annually and possessing a relative competitive advantage. JEM and Wangxi Technology's market share fluctuates slightly between 4% and 8%. The ranking of the sixth to tenth manufacturers, which belong to the second tier, has undergone some changes. Notably, Qiangyi Semiconductor ranked ninth and sixth in the global semiconductor probe card industry in 2023 and 2024, respectively, making it the only domestic enterprise to rank among the top ten in the global semiconductor probe card industry in recent years.
Relying on in-depth understanding of customer needs, solid technical expertise, extensive delivery experience, and reliable large-scale production capabilities, Qiangyi Semiconductor's products and services have gained recognition from customers. During the reporting period, the total number of individual customers of Qiangyi Semiconductor exceeded 400, comprehensively covering core participants in various industries such as domestic chip design manufacturers, wafer foundry manufacturers, and packaging and testing manufacturers.
The company's typical customers include chip design manufacturers such as Company B, Spreadtrum Communications, ZTE Microelectronics, Provenance Technology, Fudan Microelectronics, GigaDevice, Unigroup, JCET, Unigroup Microelectronics, China Electronics Huada, Unigroup Qingteng, Company C, Aojie Technology, Zhongxing Microelectronics, Zhixin Microelectronics, Loongson Technology, Zhuosheng Microelectronics, Anrui Microelectronics, Ruixin Microelectronics, Xinqing Technology, Howell Group, Qingwei Intelligence, Aixin Yuanzhi, Mole Threads, Amlogic, Horizon Robotics, Hengxuan Technology, Aoke Optoelectronics, Awinic Electronics, Bit Microelectronics, Gaoyun Semiconductor, and Juxin Technology, as well as wafer foundries such as Huahong Group and SMIC Ningbo, and packaging and testing manufacturers such as Shenghe Jingwei, Siliconware Precision Industries, Quliang Electronics, Hangzhou Xinyun, Weice Technology, Quean Technology, Siliconplus Semiconductor, Changjiang Technology, Liyang Chip, Qizhong Technology, and Jinglong Technology.
II. Revenue continues to grow rapidly, with the potential to exceed 1 billion yuan by 2025
In 2022, 2023, 2024, and the first half of 2025 (hereinafter referred to as the "reporting period"), Qiangyi Semiconductor's operating revenue was RMB 254.1571 million, RMB 354.4391 million, RMB 641.3604 million, and RMB 374.4021 million respectively, maintaining sustained and rapid growth. The compound growth rate from 2022 to 2024 was 58.85%.
Qiangyi Semiconductor stated that from a product perspective, the company's revenue growth mainly came from the increase in sales revenue of 2D MEMS probe cards; from a customer perspective, the company's revenue growth mainly came from its largest customer, Company B, and the manufacturers providing wafer testing services for it; from an industry perspective, 2.5D MEMS probe cards, which are mainly used in the storage field, are an important revenue growth point for the company in the future.
Currently, the company's primary product is MEMS probe cards. During the reporting period, the revenue from this business segment accounted for 60.82%, 73.40%, 80.85%, and 87.74% of the total main business revenue, showing a rapid upward trend. With the mass production of the company's 2D MEMS probe cards and thin-film probe cards, as well as the validation of 2.5D MEMS probe cards, the company's MEMS probe card business experienced rapid growth during the reporting period. The sales revenue reached RMB 135.9982 million, RMB 234.7451 million, RMB 509.8474 million, and RMB 325.7596 million, respectively. The compound annual growth rate from 2022 to 2024 reached 93.62%.
During the reporting period, influenced by factors such as the accelerated domestic substitution process of probe cards and the increased revenue proportion of MEMS probe cards with higher gross profit margins, the company's gross profit margins were 40.78%, 46.39%, 61.66%, and 68.99% respectively. The net profits attributable to shareholders of the parent company were RMB 15.6224 million, RMB 18.6577 million, RMB 233.097 million, and RMB 137.8843 million respectively. After deducting non-recurring gains and losses, the net profits attributable to shareholders of the parent company were RMB 13.8407 million, RMB 14.3928 million, RMB 227.0492 million, and RMB 136.6903 million respectively, all showing a good growth trend.
Qiangyi Semiconductor explained that the semiconductor industry was in a downturn in 2023, leading to a decline in the global probe card market size. However, with the recovery of the global semiconductor industry and the rapid development of China's semiconductor industry, both the global and Chinese semiconductor probe card market sizes experienced rapid growth in 2024, which had a positive impact on the company's gross profit margin and operating performance.
In addition, in the prospectus, Qiangyi Semiconductor also disclosed its performance data for the first nine months of 2025, as well as its forecast data for the whole year of 2025.
Qiangyi Semiconductor's operating revenue for the period from January to September 2025 amounted to RMB 647.0797 million, representing a year-on-year increase of 65.88%. After deducting non-recurring profit and loss, the net profit attributable to shareholders of the parent company stood at RMB 248.2895 million, marking a year-on-year growth of 100.13%. This was primarily due to the robust business development momentum of the company's major customers, as the company consistently met their needs, leading to sustained rapid growth in its operational scale. Meanwhile, the gross profit margin remained at a high level, further enhancing the company's profitability.
Qiangyi Semiconductor expects to achieve operating revenue of approximately RMB 950 million to RMB 1.05 billion in 2025, representing a year-on-year increase of approximately 48.12% to 63.71%. It is expected that the net profit attributable to the owners of the parent company, before and after deducting non-recurring gains and losses, will increase by approximately 52.30%-80.18% and 54.15%-82.78% year-on-year, with the main reasons for the changes being consistent with those observed from January to September 2025.
III. Heavy reliance on the largest customer, "Company B"
During the reporting period, the proportion of sales revenue from the top five customers to the company's total operating revenue was 62.28%, 75.91%, 81.31%, and 82.84%, respectively, indicating a high degree of concentration. At the same time, some packaging and testing manufacturers or wafer foundries among the company's customers provide wafer testing services to Company B while purchasing probe cards and related products from the company. Taking the aforementioned situation into account, the company's revenue from Company B and known chip testing services provided by it was RMB 127.8177 million, RMB 239.1510 million, RMB 524.8755 million, and RMB 310.1181 million, respectively, accounting for 50.29%, 67.47%, 81.84%, and 82.83% of the company's total operating revenue. The company has a significant dependence on Company B.
Qiangyi Semiconductor explained that during the reporting period, Company B was its largest customer, mainly purchasing probe card-related products and services from the company. Since the company began selling directly to Company B in 2021, the scale of transactions between the two parties has grown rapidly. This is mainly due to the company's proprietary MEMS probe manufacturing technology and its ability to mass produce and sell MEMS probe cards. The successive launches of 2D MEMS probe cards and thin-film probe cards have effectively met Company B's wafer testing needs.
Qiangyi Semiconductor emphasizes: "Currently, Company B maintains a stable industry position and has good payment collection, with no significant uncertainty risks. ”
4. Who exactly is Company B?
Although Qiangyi Semiconductor did not disclose the identity of Company B, it revealed in its prospectus that Company B is a globally leading chip design manufacturer (a company controlled by Company A). Its main business includes chips and solutions in multiple fields. The overall performance of its products can reach the international first-class to leading level, and it has achieved large-scale shipments. Its products and services are spread across multiple countries and regions worldwide, representing the leading level of domestic chip design enterprises.
In addition, in terms of cooperation duration, the business cooperation with Company B was established in 2019. The packaging and testing manufacturer purchased probe cards from the company when providing wafer testing services to Company B. In 2021, the company entered Company B's supplier system, and Company B began to purchase directly from the company.
In the prospectus, Company B is also identified as an affiliated enterprise. During the reporting period, the revenue realized by Qiangyi Shares from directly selling products to affiliated Company B was 96 million yuan, 134 million yuan, 224 million yuan, and 96 million yuan, respectively, accounting for 37.58%, 37.92%, 34.93%, and 25.53% of operating income. If other purchases from Qiangyi Semiconductor are included, the actual revenue contribution from enterprises providing chip testing services to Company B is 50.29%, 67.47%, 81.84%, and 82.83%, respectively. This also means that companies such as ASE and Shenghe Jingwei are customers of Company B.
It is worth noting that in June 2021, Hubble Technology, a wholly-owned investment company under Huawei, acquired a stake in Qiangyi Semiconductor through capital increase and the acquisition of existing shares, with a total investment of approximately 6.219 million yuan, representing a 7.4% shareholding. Subsequently, after subsequent financing dilutions by Qiangyi Semiconductor, Hubble Technology currently still holds a 6.4% equity stake in Qiangyi Semiconductor.
According to some media reports, after the investment by Hubble Technology, a recruitment profile posted by the Harbin University of Science and Technology platform at the end of 2022, which introduced the company Qiangyi Semiconductor, revealed that in June 2021, "Huawei Hubble" entered Qiangyi as a strategic investment partner and became a significant shareholder. Huawei and Qiangyi Semiconductor have established a long-term and stable business partnership.
Based on the information mentioned above, "Company B" is likely to be "HiSilicon Semiconductor", while "Company A" is likely to be Huawei.
In previous inquiries, the Shanghai Stock Exchange had requested Qiangyi Semiconductor to clarify the fairness of its related-party sales with Company B, whether there was any profit transfer behavior, whether the business acquisition method affected its independence, and whether it had the ability to independently acquire business from the market.
In response, Qiangyi Semiconductor emphasized that during the reporting period, the prices of products or services purchased by Company B from it were basically on par with the prices of similar products or services purchased from other suppliers. From the comparison of the sales prices of Qiangyi Semiconductor's probe cards, it can be seen that the overall unit price of probes for Company B and other customers is at the same level, and is also in line with the available data of companies in the same industry. Therefore, during the reporting period, the transaction prices between Company B and Qiangyi Semiconductor were fair and reasonable, and there was no situation of benefit transfer to Qiangyi Semiconductor. At the same time, the company established business contacts and cooperative relationships with Company B at an earlier time, and Company B performed competitive negotiation procedures when purchasing the company's probe cards (including maintenance) and PCB products. Therefore, the way the company obtains business does not affect its independence.
