Huaqin Technology Increases Stake in Nexchip to 11% with $3.66 Billion Yuan Investment

Huaqin Technology Makes Major Move on Nexchip, Spending 2.651 Billion Yuan to Acquire Additional 5% Stake

Huaqin Technology recently announced that its wholly-owned subsidiary, Hefei Qinhe, plans to acquire a 5% stake in Nexchip Integrated Technology from Powerchip Venture Capital through a cash agreement transfer. The transfer price is set at 26.41 yuan per share, bringing the total transaction value to approximately 2.651 billion yuan. Upon completion, Huaqin Technology and its subsidiaries will collectively hold 11% of Nexchip's shares, further consolidating its strategic position in the semiconductor supply chain.

Transaction Details: Funded by Internal Capital, Does Not Constitute Major Asset Restructuring

According to the announcement, the transferor is Powerchip Venture Capital, and the transferee is Huaqin Technology's wholly-owned subsidiary Hefei Qinhe. Calculated at 26.41 yuan per share, the total consideration amounts to approximately 2.651 billion yuan, funded entirely by the company's own capital. Huaqin Technology specifically noted that this transaction does not constitute a related-party transaction, nor does it qualify as a major asset restructuring under the Administrative Measures for Major Asset Restructuring of Listed Companies.

Notably, Huaqin Technology had previously held a 6% stake in Nexchip through its subsidiary. After this acquisition, the total shareholding will rise to 11%, demonstrating the company's strong confidence in Nexchip's long-term development value.

Strategic Intent: Deepening Vertical Integration Along the Supply Chain

Huaqin Technology is a globally leading intelligent hardware ODM manufacturer, with its business spanning smartphones, laptops, tablets, servers, and other product categories. Nexchip Integrated Technology, meanwhile, is a major domestic wafer foundry specializing in contract manufacturing of display driver ICs, CIS image sensor chips, and related products.

In its announcement, Huaqin Technology explicitly stated that the transaction aims to "deepen upstream-downstream resource integration and synergy across the supply chain." From an industrial logic perspective, Huaqin Technology, as a terminal hardware manufacturer, has enormous demand for upstream chip manufacturing. By increasing its stake in Nexchip, Huaqin Technology can not only strengthen supply chain stability but also gain greater influence and collaborative advantages in areas such as chip customization and capacity assurance.

Industry Context: Accelerating Semiconductor Supply Chain Integration

The global semiconductor industry is currently undergoing profound transformation, with supply chain security and self-sufficiency emerging as core concerns across the sector. An increasing number of terminal device manufacturers are extending their reach upstream, establishing closer partnerships with chip design and wafer fabrication companies through capital ties.

Huaqin Technology's substantial stake increase is a prime example of this trend. Driven by the AI wave, demand for chips in smart terminals continues to grow, and deeper alignment between terminal manufacturers and chip makers is expected to yield more efficient collaborative innovation and cost optimization.

Outlook: Synergies Expected to Gradually Materialize

With its shareholding rising to 11%, strategic collaboration between Huaqin Technology and Nexchip is expected to deepen further. The two companies are poised to engage in closer cooperation on capacity planning, process customization, and new product development, driving full-chain efficiency improvements from chip manufacturing to end products. For Huaqin Technology, this strategic move will also enhance its overall competitiveness in the global intelligent hardware market.