As of the close on September 23, Zhongwei Semiconductor (688380.SH) traded at 33.88 yuan per share with a market capitalization of 13.564 billion yuan.

Zhongwei Semiconductor is a leading intelligent control solutions provider in China, specializing in integrated circuit chip design and delivery, with microcontrollers (MCUs) as the core of its product portfolio. Leveraging deep professional expertise and innovation-driven R&D, the company provides high-performance, energy-efficient, and cost-effective intelligent control solutions for a wide range of application scenarios. According to Frost & Sullivan research, the company is among the first domestic enterprises to independently develop and design MCUs. The company's first-mover advantage and continuous innovation have enabled it to maintain industry leadership. Based on 2024 shipment volumes, the company ranks first among MCU companies in China, while ranking third by revenue.

With MCU design and development capabilities at its core, the company's product portfolio extends to various system-on-chip (SoC) solutions, application-specific integrated circuits (ASICs), and other offerings, providing customers with comprehensive one-stop solutions including chips and underlying algorithms required for intelligent control, empowering diverse application scenarios including consumer electronics, smart home appliances, industrial control, and automotive electronics.

During the track record period, the company's revenue primarily came from the provision of MCU, SoC, and ASIC solutions, as well as sales of other related products.

Zhongwei Semiconductor has cultivated deep expertise across multiple application fields, establishing core competitiveness in both consumer and high-end segments. In the consumer sector, the company's MCU chip products hold market-leading positions in China's consumer electronics and smart home appliance sectors. According to Frost & Sullivan data, based on 2024 revenue, the company ranks first in China's smart home appliance MCU chip market and second in the consumer electronics MCU chip market. Building on its consumer foundation, the company has successfully broken through high-end MCU chip application barriers, successfully entering two key high-growth segments: industrial control and automotive electronics. The industrial control sector focuses on brushless DC motors (BLDC), while the automotive electronics sector continues developing advanced M4 and RISC-V architecture automotive-grade products, which are widely-used microcontroller platforms renowned for their high computing power, energy efficiency, and scalability.

Through deep understanding of domestic customer needs, extensive technical reserves, long-accumulated market channel resources, and stable business foundations, the company has built a solid customer base including numerous well-known enterprises. During the track record period, the company served over 1,000 customers, including industry-leading enterprises, renowned consumer brands, and famous automotive manufacturers, establishing a solid foundation for future growth and market expansion.

Leveraging deep technical accumulation and forward-looking business insights, the company has successfully achieved product deployment in specialized fields including artificial intelligence (AI), data centers, and robotics. Currently, the development of frontier technologies such as artificial intelligence and robotics has become the core trend and important breakthrough point driving MCU industry progress. Going forward, the company will continue through sustained R&D investment to actively promote rapid penetration of MCU products in these frontier fields.

Based on decades of chip design and development experience, the company adopts a scenario-driven, demand-defined strategy for intelligent control solutions. Leveraging the company's end-to-end technical capabilities from chip architecture to peripheral circuit integration, the company transforms diverse customer needs into scalable, high-performance, and highly reliable mass-production solutions.

Zhongwei Semiconductor focuses on internal R&D of core technologies while selectively introducing mature licensed IP to strengthen technical capabilities and overall product performance. As of the latest practicable date, the company has developed approximately 17 key manufacturing technologies for semiconductor products, thereby enhancing product reliability, energy efficiency, and cost-effectiveness.

The company has established a strong R&D team. As of June 30, 2025, the R&D team comprised 211 experienced technical professionals, accounting for 49.1% of total employees. Most R&D personnel are senior semiconductor engineers with deep expertise in technology and material innovation.

During the track record period, the company achieved annual shipments exceeding 2.4 billion units, serving over 1,000 customers across various application scenarios. This scale demonstrates the maturity of the company's solution services and the trust established among major customers. Zhongwei Semiconductor's mature delivery capabilities, strong customer retention rates, and integration across various operational segments and partnership areas provide a solid foundation for continued expansion. Customer retention rates for 2022, 2023, 2024, and the six months ended June 30, 2025, were maintained at 66.0%, 64.6%, 73.2%, and 83.2%, respectively.

Financially, Zhongwei Semiconductor's revenue increased from 637 million yuan in 2022 by 12.1% year-over-year to 714 million yuan in 2023, and further rose to 912 million yuan in 2024, representing a 27.8% increase. Revenue continued to grow from 429 million yuan for the six months ended June 30, 2024, by 17.6% to 504 million yuan for the same period in 2025.

In terms of profitability, the company achieved net profit of 137 million yuan in 2024, representing a CAGR of 51.9% from 2022 to 2024. Net profit further increased from 43 million yuan for the six months ended June 30, 2024, to 86.5 million yuan for the same period in 2025.

Under accelerating global digitization and automation, MCUs, as core components of embedded intelligent control systems, will fully benefit from increased downstream demand. According to Frost & Sullivan data, the global MCU market reached 140.3 billion yuan in 2024 and is expected to grow to 210.8 billion yuan by 2029, with a CAGR of 8.5%.

China is the world's most dynamic MCU application market, combining scale growth with innovation momentum. China's MCU market reached 56.8 billion yuan in 2024 and is expected to grow to 96.9 billion yuan by 2029, with a CAGR of 11.3% from 2024 to 2029. Growth momentum primarily comes from consumer electronics, smart home appliances, industrial control, automotive electronics, and emerging fields such as AI computing and robotics.

China's consumer electronics MCU market reached 14.5 billion yuan in 2024 and is expected to climb to 19.9 billion yuan by 2029, with a CAGR of 6.5%. In industrial control, the market size reached 10.7 billion yuan in 2024 and is expected to grow to 19.3 billion yuan by 2029, with a CAGR of 12.4% from 2024 to 2029.

China's smart home appliance MCU market is expected to grow from 4.5 billion yuan in 2024 to 7.8 billion yuan in 2029, with a CAGR of 11.3%. China's automotive-grade electronic MCU market is expected to grow at a relatively fast CAGR of 15.5%, from 16.5 billion yuan in 2024 to 34.0 billion yuan in 2029.

In artificial intelligence and robotics fields, China's MCU market is also expected to double during the same period.

With over twenty years of industry experience, Zhongwei Semiconductor has established a broad customer base and solid partner network covering manufacturing and OSAT fields. Leveraging the company's core technical advantages, including modular chip design and development platforms, reusable IP libraries, and strategic investments in frontier technology fields, the company is well-positioned to capture global opportunities and accelerate expansion into high-growth areas.

The proceeds from Zhongwei Semiconductor's Hong Kong IPO are intended for the following purposes: enhancing the company's R&D capabilities and strengthening technology development platforms; strategic investments and acquisitions; establishing the company's global operations and R&D center in Hong Kong; working capital and general corporate purposes.