**Packaging and Testing Giant Enters Power Semiconductor Sector**
On September 25, Tianshui Huatian Technology Co.,Ltd., one of the three leading companies in China's semiconductor packaging and testing industry, announced its plan to acquire equity in power semiconductor company Huayi Microelectronics through a combination of share issuance and cash payment. The company's stock has been suspended from trading since September 25, with suspension expected to last no more than 10 trading days.
This acquisition represents another typical "sister company" integration - Huayi Microelectronics is a controlled subsidiary under Huatian Electronics Group, the controlling shareholder of Tianshui Huatian Technology Co.,Ltd. The transaction is not expected to constitute a major asset restructuring, with specific details still under negotiation.
**Why Power Semiconductors Attract Packaging Giants**
The target company, Huayi Microelectronics, specializes in the research, development, production, and sales of semiconductor power devices such as IGBTs and MOSFETs, widely used in electric vehicles and industrial control applications. Its self-developed products focus primarily on 20V-150V medium and low-voltage MOSFETs, divided into two main series: Trench MOSFETs with outstanding surge resistance capabilities, and SGT MOSFETs (Shielded Gate Trench) with high-frequency and high-dynamic characteristics.
The company has over 400 mass-produced products widely applied in electric vehicles, automotive electronics, 5G base stations, power tools, energy storage, and consumer electronics. Its product portfolio covers discrete devices and modules across all power ranges, including diodes, triodes, MOSFETs, super-junction MOSFETs, and IGBTs.
Although Huayi Microelectronics previously failed in its Science and Technology Innovation Board IPO attempt (with review terminated in 2024) and experienced losses in 2022, this strategic move by Tianshui Huatian Technology Co.,Ltd. focuses on longer-term positioning.
Huayi Microelectronics' products can form effective vertical complementarity with Tianshui Huatian Technology Co.,Ltd.'s existing packaging and testing business. While Tianshui Huatian Technology Co.,Ltd. focuses on integrated circuit packaging and testing services, Huayi Microelectronics concentrates on front-end power device design and manufacturing. Combining both businesses creates a comprehensive "one-stop" service offering.
Additionally, Tianshui Huatian Technology Co.,Ltd. has been continuously investing in advanced packaging technologies in recent years. Its 2.5D/3D packaging production lines have completed commissioning, and the company established Nanjing Huatian Advanced, a subsidiary with registered capital of 2 billion yuan, specializing in 2.5D/3D and other advanced packaging technologies. When applied to power semiconductors, such advanced packaging can further enhance chip efficiency and integration levels, meeting high-end demands from AI and autonomous driving applications.
This upstream-downstream "strong alliance" is expected to strengthen Tianshui Huatian Technology Co.,Ltd.'s solution capabilities in high-growth markets such as new energy vehicles and industrial electronics.
**Conclusion**
Driven by artificial intelligence and high-performance computing demands, the packaging and testing industry has shown clear recovery. Benefiting from significant growth in automotive electronics and memory orders in the first half of 2025, Tianshui Huatian Technology Co.,Ltd. achieved revenue of 7.78 billion yuan in the first half, up 15.81% year-over-year, with second-quarter net profit returning to profitability.
However, the power semiconductor sector that Tianshui Huatian Technology Co.,Ltd. is entering faces intense competition, with international giants like Infineon and ON Semiconductor, as well as domestic companies such as Starpower and China Resources Microelectronics. While Huayi Microelectronics' products are already applied in electric vehicle applications, competing further with domestic and international manufacturers, particularly in more demanding automotive-grade chips, requires greater technological accumulation and breakthroughs.
From the broader semiconductor industry perspective, this type of vertical integration appears to be the new normal for various sectors to enhance their "risk resistance" capabilities. Should Tianshui Huatian Technology Co.,Ltd.'s acquisition materialize, it will continue the path of domestic semiconductor companies strengthening full-chain capabilities through mergers and acquisitions. However, whether it can achieve "1+1>2" effects depends on the degree of integration between the two companies.
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