①Fabless semiconductor design company Amlogic Holdings recently proposed to acquire 100% of the equity in Xinmai Microelectronics for RMB 316 million in cash; ②On September 20, the company’s official WeChat public account further elaborated on the strategic significance of this acquisition.
Cailian Press, September 21 (reporter Zhang Xiaoyu) Fabless semiconductor design company Amlogic Holdings (688099.SH) has taken new actions: it plans to acquire 100% of the equity in Xinmai Microelectronics (Jiaxing) Co., Ltd. (hereinafter referred to as "Xinmai Microelectronics") for RMB 316 million in cash. On September 20, the company's official WeChat public account further elaborated on the strategic significance of this acquisition.
The company stated that Xinmai Microelectronics, as an emerging innovative wireless communication technology enterprise, has products widely used in the Internet of Things (IoT), vehicle networking, and smart terminals. This acquisition will accelerate Amlogic’s advancement in next-generation wireless communication technologies and further consolidate its strategic position in the AIoT field.
Notably, after the completion of this transaction, Xinmai Microelectronics will become a wholly-owned subsidiary of the company and will be included in the consolidated financial statements. The team of Xinmai Microelectronics will also join Amlogic Holdings to continue technological development.
According to previous announcements, the company intends to acquire 100% of the equity in Xinmai Microelectronics through cash payments, with a total acquisition price of RMB 316 million. Regarding specific valuation and pricing, this transaction is based on the valuation of Xinmai Microelectronics at RMB 430 million, calculated by multiplying the financing unit price stipulated in the 'Capital Increase Agreement of Xinmai Microelectronics (Zhuhai) Co., Ltd.' signed on September 27, 2024, by the paid-in registered capital of the company. A certain discount was granted based on market-oriented transaction principles. After friendly negotiations, the total transaction price corresponding to 100% of the equity in the target company was determined to be RMB 316 million.
Public data shows that Xinmai Microelectronics was established in August 2021. It has a core team in the field of wireless communications and a fully organized research and development team. It has accumulated technical expertise and offers complete product and solution portfolios in the fields of IoT, vehicle networking, and mobile smart terminals. In these areas, six chip models have completed tape-outs, and one chip product has already generated revenue from clients in IoT modules, smart student cards, and mobile smart terminal applications.
Amlogic Holdings stated in its announcement that through this transaction, deep synergy and complementarity of both parties’ technological capabilities will be achieved. After integrating the technical assets and research and development team of the target company, the company will build a multi-dimensional communication technology stack and product matrix covering 'cellular communication + optical communication + Wi-Fi'. Ultimately, this will result in a unique and competitive pan-AIoT solution supported by 'endpoint intelligence + computing power + communication' as the backbone and integrated hardware and software, catering to various scenarios. It will also meet the communication needs of high mobility, large bandwidth, and multiple connections under the context of high intelligence, high data volumes, and high computing power in the automotive electronics sector.
While reviewing the materials, reporters from Cailian Press noticed that although the target company, Xinmai Microelectronics, has only been established for four years, its team background stands out. Besides the core leadership having profound expertise in the semiconductor wireless communication sector, with over 20 years of experience in industry solutions development and large-scale product commercialization, the team also includes recipients of the First Prize of the National Science and Technology Progress Award.
From this perspective, Amlogic Holdings may not merely be acquiring a company but a team and a set of technological achievements. Through this strategic acquisition, it aims to fill the gap in cellular communication technologies and obtain core capabilities in the wireless chip domain, which typically require years of heavy investment to establish, via a cash transaction.
Reporters also noted that during its own financing process, Xinmai Microelectronics has attracted several investment institutions with remarkable track records in the semiconductor sector.
According to Tianyancha, before its acquisition, Xinmai Micro had completed five rounds of financing within four years of its establishment. The most recent round, disclosed in November 2024, was an A+ funding round led by Jiaxing Economic Development Zone Huachen Innovation Equity Investment Fund Partnership (Limited Partnership), with Huachen Chuangxin Venture Capital as the associated institution.
The list of previously associated investment institutions also includes Walden International, Yunhao Capital, Ruixia Investment, Legend Capital, and Star Capital, among which are several 'evergreen' players in the semiconductor investment field. For instance, Walden International, with over 30 years of investment history, has invested in companies such as SMIC (688981.SH), Gigadevice (603986.SH), and AMEC (688012.SH), each with a market value exceeding tens of billions.
In fact, since 2025, mergers and acquisitions in the semiconductor sector have become increasingly frequent, with many companies seeking to fill technological gaps through acquisitions. The expansion of application scenarios is also accelerating into fields such as automotive electronics and industrial control. As acquisition cases progress, this positioning battle centered on 'talent' and 'technology' is only just beginning to accelerate.
