Fudan University's semiconductor "little giant" has had its IPO application approved, aiming to raise 1.2 billion yuan; products will be manufactured on SMIC's production lines.

Summary of Key Points

Shanghai Yinguang is a semiconductor precision motion platform manufacturer founded in 2019, which specializes in producing high-precision moving components for semiconductor equipment. Its recent IPO application on the STAR Market has been accepted. The company is recognized as a national-level "little giant" specializing in niche and advanced technologies, with capabilities comparable to international leaders such as ETEL from Switzerland. Its customers include leading equipment manufacturers like Shanghai Microelectronics and North China Huachuang, as well as wafer fabrication companies like SMIC and ChangXin Memory. Over the past three years, its revenue has grown by 330% from 76 million yuan to 325 million yuan, although it has not yet turned a profit. The company plans to raise 1.2 billion yuan to expand production capacity, invest in research and development (R&D), and improve its working capital.

I. Technical Strength: A Domestic "Precision Movement Expert" Competing with International Giants

Precision motion platforms are essential components for semiconductor equipment, enabling precise positioning of wafers during chip measurement and accurate assembly during advanced packaging processes. Shanghai Yinguang's core technologies highlight two key areas:

1. Comparable to International Standards: Its 300FD motion platform matches the performance of ETEL from Switzerland in terms of positioning accuracy and repeat positioning precision, with even better Z-axis accuracy. This means that domestic equipment no longer needs to rely on imported components.

2. Leveraging Top Clients: The company has a long-term partnership with leading domestic semiconductor equipment manufacturers such as Shanghai Jingce, Tuojing Technology, and Shanghai Microelectronics, and its products are used in advanced manufacturing lines at companies like SMIC and ChangXin Memory. This indicates that its technology has met the highest industry standards.

In addition, Shanghai Yinguang develops its own core components (such as piezoelectric motors and electrostatic suction cups), which is crucial for achieving self-sufficiency in the domestic semiconductor industry and avoiding dependency on foreign suppliers.

II. Financial Performance: Rapid Revenue Growth but Still in a Loss-making Phase

Although the company's business is expanding rapidly, it is still in a loss-making stage:

• Revenue Explosion: Revenue increased significantly from 76 million yuan in 2023 to 168 million yuan in 2024 and then to 325 million yuan in 2025, with a tripling in just two years. The majority of this growth comes from its precision motion platforms, which account for 70%-86% of total revenue, particularly the measurement platforms, which contribute more than half of the total.
• Continuing Losses: Net profits have been negative over the past three years (-48 million yuan, -29 million yuan, and -6 million yuan), but the losses are decreasing. This is due to high R&D expenses (about 50 million yuan annually) and the time required for products to transition from research to mass production, before the scale economy takes effect.
• Gross Margin Improvement: The gross margin has risen from 22.97% to 34.53% due to reduced costs associated with mass production and increased sales of high-profit core components. However, it is still slightly lower compared to industry peers, but the gap is narrowing.

III. Customers and Supply Chain: Strong Relationships with Leading Enterprises

• Diversified Customer Base: The top five customers account for 70%-80% of revenue, with Shanghai Jingce being the largest customer (contributing 23%-46%). There is no single customer accounting for more than 50%, reducing financial risk. These clients are all industry leaders, ensuring stable orders.
• Robust Supply Chain: The top five suppliers account for about 30% of procurement costs, and the company has a stake in two of them, indicating a secure supply chain that ensures the availability of raw materials.

IV. Ownership and Team: Experienced Founders with Strong Control

• Control Structure: Wu Liwei (Chairman) and Yang Xiaofeng (Chief Scientist) collectively hold 56.59% of the voting rights. Both have extensive industry experience:
• Wu Liwei previously led the precision motion department at Shanghai Microelectronics, a leading domestic lithography equipment manufacturer, possessing both technical expertise and industry knowledge.
• Yang Xiaofeng worked for 13 years at Nikon in Japan, a renowned semiconductor equipment company, and later became a professor at Fudan University, bringing deep technical expertise to the company.
• R&D Team: The R&D team accounts for 26.78% of the workforce, and the company holds 283 patents (155 invention patents), demonstrating its commitment to innovation.

V. Fundraising and Future Prospects: Expanding Capacity and Investing in R&D

• Use of Raised Funds: The 1.2 billion yuan will be used for various purposes:
• 600 million yuan to build a headquarters and expand production capacity to handle increased orders.
• 300 million yuan for R&D to develop more advanced precision motion platforms.
• 300 million yuan to improve working capital and reduce operational pressures.
• Future Opportunities: The demand for HBM (high-bandwidth memory) driven by AI will create more opportunities for advanced packaging equipment that requires precision motion platforms. Domestic wafer fabrication companies also need these components. With its existing mass production capabilities, Shanghai Yinguang can benefit from the growing market for domestic alternatives.
• Challenges: The company still needs to catch up with international technology (e.g., developing platforms for more advanced manufacturing processes) and achieve profitability as soon as possible. It also needs to expand into overseas markets, where current revenue is only in the millions of yuan.

Conclusion

Shanghai Yinguang is a promising company in the domestic semiconductor precision motion platform sector, with strong technical capabilities, a high-quality customer base, and rapid growth. However, it still needs time to turn a profit and break into the higher-end market. If its IPO is successful, it will have access to additional funds to expand production capacity and further develop its technology. Given the trend towards domestic substitution in the semiconductor industry, Shanghai Yinguang holds significant potential for future success.