On the evening of November 26, 2025, National Silicon Industry Group Co., Ltd. (688126.SH), a STAR Market-listed company, announced the completion of its 7.04 billion yuan asset acquisition through share issuance and cash payment, along with associated fundraising. This nearly year-long M&A deal marks a deep integration of 300mm (12-inch) wafer operations by China's leading semiconductor wafer manufacturer, accelerating the expansion of domestic high-end wafer production capacity.
Transaction Structure: Full Control via Shares + Cash According to the announcement, National Silicon Industry acquired 46.74% equity in Xinsheng Jingtou, 49.12% in Xinsheng Jingke, and 48.78% in Xinsheng Jingrui through a combination of share issuance and cash payment. Post-transaction, all three target companies became wholly-owned subsidiaries. Key details: - Total consideration: 7.04 billion yuan, including 6.716 billion yuan paid via shares (issued at 15.01 yuan/share, totaling 447 million new shares) and 324 million yuan in cash. - Target assets: Xinsheng Jingtou serves as a holding platform; Xinsheng Jingke specializes in 300mm wafer cutting, grinding, polishing, and epitaxy, reporting 739 million yuan revenue with 95.22 million yuan net loss in Q1-Q3 2024; Xinsheng Jingrui focuses on 300mm semiconductor wafer crystal growth, with 196 million yuan revenue and 29.97 million yuan net loss during the same period. - Fundraising: Concurrently, the company raised up to 2.105 billion yuan via private placement to no more than 35 specific investors for working capital and cash payment purposes.
Strategic Rationale: Resource Integration to Break Through Technical Barriers The M&A centers on "resource integration and import substitution." As China's wafer industry leader with 300mm and 200mm high-end wafer capabilities, National Silicon Industry aims to achieve three synergies through full ownership: 1. Technology integration: Combining crystal growth, cutting/grinding/polishing, and epitaxy processes to shorten R&D cycles. For example, Xinsheng Jingrui's crystal growth technology can synergize with Xinsheng Jingke's epitaxy process to improve yield rates. 2. Capacity expansion: The targets are key operators for National Silicon's "Phase II 300mm Wafer Project," which will significantly boost output upon completion. 3. Cost optimization: Full ownership enables unified resource allocation to reduce material procurement and production costs. Though targets reported negative gross margins in Q1-Q3 2024, economies of scale are expected to drive improvement.
Industry Impact: Semiconductor M&A Wave Resurges National Silicon's deal reflects a broader trend. Following the 2025 "M&A Six Guidelines," Shanghai-listed companies have disclosed over 1,000 M&A transactions, with major asset restructurings doubling year-on-year.
For National Silicon, this deal represents not just scale expansion but a critical step toward technological self-sufficiency. Amid China's import substitution push, this 7-billion-yuan transaction may set a benchmark for domestic semiconductor materials industry consolidation.
Note: This article incorporates AI-generated content. The views expressed do not constitute investment advice. Market risks apply; investors should exercise caution.
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