Chip Things (WeChat Official Account: aichip001)

Author | ZeR0

Editor | Mo Ying

Chip Things reported on July 10 that China's third-largest wafer foundry and the largest wafer foundry in Anhui, NEXCHIP, has officially listed on the Hong Kong Stock Exchange.

Its issue price is HKD 32.30 per share (approximately RMB 28.00), and the opening price rose by 11.46% to HKD 36.00 per share (approximately RMB 31.21). As of 09:35, its stock price had risen by as much as 13.93% to HKD 36.80 per share (approximately RMB 31.90), with a total market capitalization exceeding HKD 81.7 billion (approximately RMB 70.8 billion).

Beijing Jichuang's Hefei Jichuang Hong Kong and Jichuang Hong Kong, STMicroelectronics's Smart Sensory Microelectronics Technology Hong Kong, Chery Automobile's Chery Automobile Hong Kong, and GoerTek's Hong Kong GoerTek are all cornerstone investors in NEXCHIP.

NEXCHIP was established in May 2015 and is a 12-inch pure wafer foundry company, providing foundry services covering 150nm to 40nm technology nodes.

Its wafer foundry services focus on key specific application integrated circuit product categories, including Display Driver ICs (DDIC), Complementary Metal-Oxide-Semiconductor Image Sensors (CIS), Power Management Integrated Circuits (PMIC), Logic Integrated Circuits (Logic IC), Microcontrollers (MCU).

As of June 22, 2026, NEXCHIP has begun trial production of 28nm logic chips and plans to further extend its process capabilities to 22nm, with DDIC reaching 40nm, CIS reaching 55nm, and PMIC and MCU reaching 110nm.

According to Frost & Sullivan's data, from 2020 to 2025, the capacity and revenue growth rate of NEXCHIP among the world's top ten foundries will be the highest in the world; by 2025, based on revenue, NEXCHIP will be the ninth largest in the world and the third largest in mainland China foundry.

By 2025, based on DDIC foundry revenue, NEXCHIP will be the largest DDIC foundry in the world, with a market share of 23.3%.

NEXCHIP was listed on the Sci-Tech Innovation Board of the Shanghai Stock Exchange in May 2023. As of the close on July 9, its total market capitalization was 130.9 billion yuan.

1. Last year's revenue exceeded 10.3 billion yuan, with a net profit of 466 million yuan

In 2023, 2024, and 2025, NEXCHIP's revenues were 7.183 billion yuan, 9.120 billion yuan, and 10.388 billion yuan, with net profits of 119 million yuan, 482 million yuan, and 466 million yuan, and R&D expenses of 1.058 billion yuan, 1.284 billion yuan, and 1.453 billion yuan, with gross profit margins of 20.3%, 25.2%, and 22.7%, respectively.

▲ Changes in NEXCHIP's revenue, annual profit, and R&D expenditure from 2023 to 2025 (chart by Xindongxi)

The 90nm technology node is its main source of revenue, but its revenue share has been declining year by year over the past three years

According to business lines, the company's revenue mainly comes from providing foundry services for DDIC used in displays for consumer electronics such as televisions, smartphones, and tablets.

In 2025, revenue from mainland China accounted for 61.4% of NEXCHIP's total revenue.

Its consolidated balance sheet is as follows:

Cash flow is as follows:

As of the end of 2025, NEXCHIP had 1,976 R&D personnel, accounting for approximately 34.6% of the total employees; it held 1,374 patents, including 1,057 invention patents, and had 354 patent applications, including 237 invention patent applications in China and other jurisdictions.

II. Annual shipments exceed 1.66 million 12-inch wafers, with the top five customers contributing over half of the revenue

NEXCHIP operates a large-scale integrated production base focused on 12-inch wafer foundry in Hefei City, Anhui Province, concentrating its production facilities within a single manufacturing park.

As of December 31, 2025, the total construction area of its production base is approximately 387,000 square meters, with an average monthly output of 139,000 12-inch wafers in 2025.

In 2023, 2024, and 2025, the total shipment volume of NEXCHIP wafers is expected to be 935,900, 1,366,600, and 1,668,000 12-inch wafers, respectively.

In 2023, 2024, and 2025, the revenue from the top five customers accounts for 64.2%, 62.2%, and 57.9% of NEXCHIP's total revenue, respectively.

During the same period, the procurement amount from its top five suppliers accounts for 39.9%, 34.9%, and 35.1% of the total procurement amount, respectively.

3. Co-General Manager Previously Worked at TSMC

As of June 22, 2026, Hefei Construction Investment controls approximately 39.71% of the total issued share capital of NEXCHIP, including a direct ownership of 23.34% and an indirect ownership of 16.37% through Hefei Chip Screen. The general partner of Hefei Chip Screen is Jianzheng Capital, which is controlled by Hefei Construction Investment.

The simplified company structure following the completion of the global offering is as follows:

Cai Guozhi joined NEXCHIP in April 2020 and serves as Chairman and Executive Director. He is 72 years old and has over 30 years of experience in the semiconductor industry.

He graduated with a bachelor's degree in Computer and Control Engineering from National Yang Ming Chiao Tung University in Taiwan (formerly known as National Chiao Tung University). He joined Powerchip Venture Capital in January 1995, served as Chairman of Powerchip Manufacturing from April to September 2008, and was Vice Chairman of Powerchip Manufacturing from September 2018 to April 2019, and served as International Strategy Director of Powerchip Manufacturing from May 2019 to April 2020.

Qiu Xianhuan is 56 years old this year and holds both bachelor's and master's degrees from National Cheng Kung University in Taiwan. He has nearly 30 years of experience in the semiconductor industry and joined NEXCHIP in June 2016. Since then, he has served as Plant Manager of A1 Plant, Assistant Manager, Vice President of Operations, and Senior Vice President. He has been Co-General Manager of NEXCHIP since September 2025.

Dr. Zheng Zhicheng is 57 years old this year and holds a Ph.D. in Materials Science and Engineering from Sun Yat-sen University. He has over 20 years of experience in the semiconductor industry and served as Senior Department Manager at TSMC from November 2002 to April 2019. He joined NEXCHIP in July 2021 and has served as Senior Director of the Advanced Technology Development Center and Senior Vice President of R&D. He has been Co-General Manager of NEXCHIP since September 2025

Conclusion: The Three Major Domestic Foundries Are Moving Towards "A+H"

Against the backdrop of increasing instability in the global supply chain, the self-sufficiency rate of the chip industry in mainland China is gradually improving.

On one hand, the wafer foundry demand from some chip design companies is shifting towards mainland enterprises, promoting the rapid development of the wafer foundry industry in mainland China.

On the other hand, the improvement of the wafer foundry industry chain in mainland China provides the material and technical foundation for wafer foundry companies to undertake the foundry demand for advanced process chips. The domestic raw materials, production equipment, packaging and testing industries, and other semiconductor industry chains are also continuously achieving localization, becoming the driving force for the development of the wafer foundry industry in mainland China.

Following SMIC and Hua Hong Semiconductor, the third-ranked Jinghe Integrated Circuit has also embarked on the path of dual listing "A+H".

Stimulated by the demand for domestic substitution, Jinghe Integrated Circuit plans to use the newly raised funds for research and development and optimization of the new generation 22nm technology platform, as well as AI-based intelligent research and development and production planning, laying the foundation for its development in the incremental market