Core Summary
Gartlan Microelectronics is a company that specializes in manufacturing automotive-grade millimeter-wave radar chips. It has recently applied for an IPO on the STAR Market, aiming to raise 3.489 billion yuan to fund the development of new chips and the construction of a technology center. The company began as a doctoral project at Berkeley Lab and used innovative CMOS technology to break the monopoly held by international giants such as Texas Instruments in the millimeter-wave radar chip market. While it holds the second-largest market share domestically, its global market share is only 4%. However, Gartlan faces three major challenges: it has been losing over 900 million yuan for more than three and a half years (mainly due to research and development expenses); its customer base and supply chain are highly concentrated (the top five customers account for 99% of its revenue, and overseas purchases account for over 50%); and the industry competition is fierce (with giants holding monopolies, long certification cycles for automotive-grade products, and ongoing price wars). This IPO is not the end point for Gartlan; rather, it marks a new beginning to prove its ability to generate profits and maintain technological leadership.
Detailed Analysis
From Berkeley Doctor to Domestic Game-Changer: Breaking the Monopoly with CMOS Technology
In 2014, Dr. Chen Jiashu returned to China to start a business. At that time, the automotive millimeter-wave radar chip market was completely dominated by foreign giants like Texas Instruments and Infineon, with almost no domestic presence—these companies set prices arbitrarily and could refuse to supply. Instead of following the traditional approach (using gallium arsenide/germanium-silicon technology, which was costly and had low integration), Chen Jiashu bet on CMOS technology, which offers lower costs and the potential to integrate more functions into a single chip, although many doubted its suitability for automotive-grade applications due to concerns about high-frequency performance.
His gamble paid off: in 2015, he developed the world's first fully integrated 77GHz radar chip, and by 2017, he began mass-producing automotive-grade products. In 2019, he further reduced the complexity of module design by integrating the antenna directly into the chip package. Today, Gartlan holds a 31.1% domestic market share (second only to Texas Instruments) and has sold over 30 million chips, with customers including BYD, NIO, and Volvo. This achievement represents a significant breakthrough in a field dominated by foreign companies.
Behind the Bright Revenue Figures: Three and a Half Years of Losses, Relying on Financing
Gartlan's revenue has grown rapidly, from 200 million yuan in 2023 to 630 million yuan in 2025, tripling in just three years. However, the profits are not enough to cover its expenses: from 2023 to the first quarter of 2026, it lost over 900 million yuan, with research and development costs exceeding revenue (1.5 yuan spent on R&D for every 1 yuan in sales).
Where did all the money go? It was invested in technology: the development cycle for automotive-grade chips is long (several years from design to mass production), and constant upgrades are required (for example, transitioning from traditional radar to 4D high-resolution systems). With negative cash flows, Gartlan has relied on financing to survive. It recently raised 1.2 billion yuan in March 2026 and is eager to go public within five months, as secondary market financing is a matter of survival, not a luxury it can afford to delay.
Concentrated Customers and Supply Chain: Significant Risks
- High Customer Concentration: The top five customers account for 99% of Gartlan's revenue, with the largest customer (a major automaker) accounting for over 50% in 2025. This means that a change in this customer's supplier could significantly impact Gartlan's earnings.
- Dependence on Overseas Suppliers: As a fabless company (designing without manufacturing), Gartlan relies on foreign companies for wafer fabrication, packaging and testing services, and EDA software. Overseas purchases account for over 50% of its needs, with the top five suppliers accounting for 80% in the first quarter of 2026. Increased trade tensions could lead to supply disruptions or price increases, posing a threat to production, despite Gartlan's efforts to diversify its supply chain.
The Fierce Reality of the Industry
Gartlan's challenges reflect those faced by the entire domestic chip industry:
- Giants' Monopolies: Companies like Texas Instruments and Infineon hold a significant share of the global millimeter-wave radar chip market, with decades of technical expertise and patent barriers. Gartlan's 4% market share highlights the vast gap between it and these leaders.
- Slow Automotive Certification Processes: The certification process for automotive-grade chips involves extensive testing by car manufacturers (high temperatures, vibrations, durability, etc.), taking 3 to 5 years. The investment in research and development today may not yield results until 2030—can the capital market wait that long?
- Price Wars: With more domestic players entering the market, especially as 4D radar becomes a focus, prices are declining. Gartlan's 4D products are still in development, and it remains uncertain whether they can keep up with the competition.
Going Public is Not the End: Proving Profitability and Leadership
The funds raised from the IPO will be used for three main areas: high-performance millimeter-wave radar chips, ultra-wideband chips (for automotive digital keys, child detection), and a cutting-edge technology center. Gartlan aims to expand beyond single radar chips to integrate communication and sensing technologies, as well as apply radar in smart homes and security applications (a second growth area).
However, going public on the STAR Market is just the beginning. The real test lies ahead: proving its ability to generate profits, maintain technological leadership, and ensure a stable supply chain. For automotive-grade chip companies, success after going public depends on long-term performance in a competitive market.
Conclusion
Gartlan represents the promise of domestic chip innovation, having broken industry monopolies with its technology. However, it also faces common challenges such as high R&D costs, concentrated customer bases, and supply chain risks. This IPO is not only a source of funding but also an opportunity to demonstrate its potential to become a sustainable, profitable player in the market. Gartlan's story serves as both a symbol of hope and a reflection of the challenges faced by the domestic chip industry.