Verisilicon Microelectronics (Shanghai) Co., Ltd. (688521) announced the termination of its planned acquisition of RISC-V firm Nuclei Technology while reaffirming its commitment to expanding its RISC-V ecosystem.
On December 18, Verisilicon held a briefing to clarify the termination of its restructuring plan. Company executives emphasized that despite calling off the deal, Verisilicon will continue strengthening its RISC-V business and maintain collaboration with Nuclei Technology. They also provided updates on its custom chip services for autonomous driving.
**Continued Focus on RISC-V Expansion** Originally, Verisilicon intended to acquire approximately 97% of Nuclei Technology’s equity through a combination of stock issuance and cash payment, alongside raising supporting funds. Nuclei Technology is a leader in China’s RISC-V IP sector, offering a full range of RISC-V CPU IP solutions and automotive-grade IP products, with over 300 global licensees. The acquisition aimed to bolster Verisilicon’s IP portfolio and RISC-V capabilities.
However, on December 12, Verisilicon terminated the deal, citing misalignment between Nuclei Technology’s core demands and market conditions, regulatory requirements, and shareholder interests. The target company’s management also requested termination.
During the briefing, Verisilicon addressed concerns about the impact on its RISC-V ecosystem and outlined progress in smart driving and custom chip development. Executives confirmed that Verisilicon remains committed to RISC-V expansion, deepening ties with Nuclei Technology as a shareholder while broadening partnerships with other RISC-V IP suppliers to accelerate China’s RISC-V ecosystem.
**Expanding Automotive-Grade Custom Chips** With AI advancements, ASIC chips—known for their customization, high computing density, and low power consumption—are gaining traction. Verisilicon highlighted its advanced chip design capabilities, extensive IP library, and software/system platform expertise, serving global giants like Samsung, Google, Amazon, Microsoft, Baidu, Tencent, and Alibaba.
In edge computing, Verisilicon is targeting smart vehicles and AR/VR markets, providing 5nm automotive-grade autonomous driving chip solutions for a leading EV maker and developing Chiplet platforms for smart mobility. Its NPU IP has powered nearly 200 million AI chips worldwide, with 91 clients adopting it across 140+ AI chips. The company also offers full-stack AR glasses chip solutions for a top-tier internet firm and collaborates with multiple AR/VR leaders.
In Q1-Q3 2025, revenue from system manufacturers, internet firms, cloud providers, and automakers accounted for 40.36% of total sales. AI-driven demand fueled a 145.8% YoY surge in Q3 new orders to ¥1.593 billion, with AI computing-related contracts making up ~65%.
**Progress on Pixelworks China Acquisition** While the Nuclei deal fell through, Verisilicon is advancing its acquisition of Pixelworks China (now rebranded as "Zhudian Semiconductor"), a mobile visual processing and video transcoding chip designer. The move aims to enhance Verisilicon’s edge AI ASIC competitiveness. Pixelworks China, formerly a subsidiary of Nasdaq-listed Pixelworks, had a pre-investment valuation of ~$500 million in 2022 and attempted an IPO in 2023.
Verisilicon executives disclosed plans to invest in a special purpose vehicle, Tiansui Xinyuan, alongside partners including China Integrated Circuit Industry Investment Fund Phase III, to acquire Zhudian Semiconductor’s controlling stake. On December 12, Verisilicon and investors signed agreements to increase Tiansui Xinyuan’s registered capital to ¥950 million, with Verisilicon holding 40% as the largest shareholder and gaining board control.
Verisilicon Chairman Dai Weimin noted that semiconductor M&A often stalls over valuation gaps. He proposed tiered pricing for different funding rounds, allowing later investors to exit with principal or interest while early backers and founders adjust expectations. He also recommended performance-based earnouts and staggered payments to bridge valuation disputes.
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