Guangzhou CanSemi Technology Inc., known as "Guangzhou's first chip," has made significant progress in its IPO journey. On December 19, the company's application for a ChiNext IPO was accepted by the Shenzhen Stock Exchange, bringing it closer to a mainland listing. As Guangdong's first mass producer of 12-inch wafers, CanSemi's IPO has drawn considerable market attention, with its latest post-investment valuation reaching 25.3 billion yuan in external financing.
According to its prospectus, CanSemi plans to raise 7.5 billion yuan in the IPO, primarily for business expansion. The funds will be allocated as follows: 3.5 billion yuan for its third-phase 12-inch analog IC production line (total project investment: 16.25 billion yuan) to boost capacity; 2.5 billion yuan for R&D in specialized process platforms, including three sub-projects—65nm silicon photonics and co-packaged optics, eNVM-based MCUs, and 22nm computing-in-memory chips; and 1.5 billion yuan for working capital to ease financial pressure from capacity expansion and R&D.
**R&D Investment Strengthens Technological Edge** CanSemi's financial performance reflects industry cycles and its growth stage. From 2022 to H1 2025, key metrics showed cyclical revenue fluctuations, widening losses, focused R&D spending, and stable cash flow—highlighting the operational dynamics of a foundry scaling production and upgrading technology.
Revenue trends mirrored industry cycles: 2022 revenue hit 1.545 billion yuan, but a 32.46% drop followed in 2023 (1.044 billion yuan) due to weak semiconductor demand. Recovery came in 2024 (1.681 billion yuan, up 61.09% YoY), with H1 2025 revenue reaching 1.053 billion yuan. IC foundry accounted for 80.26% of 2024 revenue (1.310 billion yuan), while power device foundry contributed 19.74% (322 million yuan). The company excels in high-voltage display driver chips (ranked third in China for 12-inch wafer output) and capacitive fingerprint sensor chips (globally leading).
Net losses attributable to shareholders deepened from -1.043 billion yuan (2022) to -2.253 billion yuan (2024), with H1 2025 at -1.201 billion yuan. Key loss drivers include heavy asset depreciation (equipment depreciation costs: 1.226 billion yuan in 2022, 1.702 billion yuan in 2024), sustained R&D spending (38.92%-58% of revenue from 2022–2023), and share-based compensation (257 million yuan total).
Despite positive operating cash flow (2022–2024: 690 million yuan, 99 million yuan, 640 million yuan; H1 2025: 66 million yuan), capital expenditure for expansion (13.8 billion yuan from 2022–2024) pushed debt ratios up from 55.44% (2022) to 76.08% (H1 2025), with interest-bearing debt at 78.03% of total liabilities.
R&D investment totaled 1.838 billion yuan over 3.5 years, yielding 681 patents (312 inventions) by mid-2025. Its diversified platforms (MS, HV, CIS, BCD, etc.) cover 180nm–55nm processes, with a 90nm silicon photonics platform entering trial production in 2024. Future 65nm development targets AI and automotive electronics.
**State Backing Anchors Ownership Structure** Launched in 2017 by Guangzhou Yuxin Zhongcheng Equity Investment and Science City Group, CanSemi now has no controlling shareholder. State-backed entities dominate its ownership: top shareholder Yuxin Zhongcheng holds 16.88%, followed by Guangdong Semiconductor Fund (11.29%), Guangzhou Huaying (9.51%), and Science City Group (8.82%). CEO Chen Wei holds 1.69%.
The structure blends municipal (Science City Group), provincial (Guangdong Semiconductor Fund), and national (SDIC Venture Capital) state capital, alongside automotive investors (e.g., SAIC, GAC) and private funds. This aligns with semiconductor industry needs for diversified funding and collaboration.
Guangdong’s IC sector grew 25.8% in 2024, with analog chips and wafer output up 23.7% and 68.9%, respectively. Chen emphasized integrating innovation resources and policy support to overcome tech bottlenecks.
As CanSemi leads, Guangdong’s chip output surged from 36 billion units (2019) to 80 billion (2024), capturing 18% of China’s total and ranking second nationally. The province also leads in IC import/export volume.
Comments