A major development in the semiconductor sector! On the evening of December 18, Advanced Micro-Fabrication Equipment Inc. (AMEC), a leading semiconductor equipment manufacturer, announced plans to acquire a controlling stake in Hangzhou Zhonggui Electronics Technology Co., Ltd. Trading of AMEC shares will be suspended starting from December 19.
Hangzhou Zhonggui specializes in the R&D, production, and sales of high-end chemical mechanical planarization (CMP) equipment, with its flagship product being 12-inch CMP systems. AMEC stated that this acquisition will create significant strategic synergies between the two companies.
Since September 24 last year, AMEC's stock price has surged over 130%, with its current market capitalization reaching ¥170.8 billion.
In its Shanghai Stock Exchange filing, AMEC revealed the transaction involves issuing shares to acquire Zhonggui's controlling stake while raising supporting funds. The deal remains in preliminary stages, with auditing and valuation work ongoing. Preliminary assessments indicate the transaction won't constitute a major asset restructuring. To prevent market volatility, trading suspension will last up to 10 business days.
Zhonggui provides complete CMP equipment solutions, complementing AMEC's core products of plasma etching and thin film deposition equipment (dry process systems). CMP represents crucial wet process technology in semiconductor manufacturing, alongside etching and deposition as fundamental processes beyond lithography.
AMEC emphasized this move as strategic for building a world-class semiconductor equipment platform, marking a key step toward becoming a "groupized" and "platform-based" enterprise. The acquisition aligns with AMEC's dual-track growth strategy combining organic development and external expansion.
Financial reports show AMEC achieved ¥8.063 billion revenue in Q1-Q3 2025, up 46.4% YoY, with etching equipment contributing ¥6.101 billion (38.26% growth) and thin film equipment soaring 1332.69% to ¥403 million. Net profit attributable to shareholders grew 32.66% to ¥1.211 billion.
Industry analysts note semiconductor sector recovery signs. Great Wall Securities reported Q3 2025 revenue for SW semiconductor companies reached ¥178.172 billion (+12.1% YoY), setting a quarterly record, with net profits jumping 75% YoY to ¥19.972 billion. Demand recovery in consumer electronics and AI applications drove the growth.
Guojin Securities highlighted strengthened logic for domestic semiconductor equipment autonomy amid international export controls, accelerating localization across the supply chain. Galaxy Securities pointed to SMIC's record-breaking monthly wafer capacity exceeding 1 million units in Q3 2025, with utilization rates reaching 95.8%, signaling robust industry demand.
SEMI's year-end forecast projects global semiconductor equipment sales hitting $133 billion in 2025 (13.7% growth), potentially rising to $145 billion and $156 billion in 2026-2027, fueled by AI-driven investments in advanced logic, memory, and packaging technologies.
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