Founded less than six years ago, Chipways Semiconductor is racing to go public in Hong Kong.

Author | Huang Yu Riding the wave of the AI era, less than six years after its founding, a semiconductor packaging and testing technology solution provider has launched a sprint towards the Hong Kong Stock Exchange. On May 8, Jiangsu Xinde Semiconductor Technology Co., Ltd. (hereinafter referred to as "Xinde Semiconductor") submitted its listing application to the Hong Kong Stock Exchange. This Nanjing-based company positions itself as one of the few advanced packaging product providers in China’s general semiconductor OSAT (Outsourced Semiconductor Assembly and Testing) market to have rapidly integrated QFN, BGA, LGA, WLP, and 2.5D/3D technological capabilities. According to Frost & Sullivan data, based on revenue from advanced semiconductor packaging and testing in 2024, Xinde Semiconductor ranks seventh among China's general OSAT companies, with a market share of about 0.6%. There is still a considerable gap from the top three, with JCET Group holding a market share of 26.7%. Xinde Semiconductor is not the first semiconductor packaging company to sprint towards a Hong Kong listing. Driven by the dual forces of domestic substitution and demand for AI computing power, the capitalization race in this sector is accelerating. The capital market is very favorable towards companies in this track. Among the top eight companies, only Xinde Semiconductor and one other have yet to be listed. A Hong Kong securities broker told WallstreetCN that Xinde Semiconductor’s timing for submitting its application is clear in intent: to use IPO fundraising to address the capital gap for capacity expansion and deepening R&D, while securing a position during the explosive growth period of the advanced packaging market. Frost & Sullivan data shows that the global advanced packaging market size grew from 214.1 billion yuan in 2020 to 312.4 billion yuan in 2024, and is expected to reach 524.4 billion yuan by 2029. Meanwhile, advanced packaging is expected to surpass traditional packaging for the first time in 2025, accounting for over 50% of the overall packaging market. According to the prospectus, Xinde Semiconductor completed several rounds of financing in the years after its founding. So far, by virtue of a joint action agreement, Zhang Guodong, Pan Mingdong, Liu Yi, Ning Taixin, and Ning Puxin together comprise the largest shareholder group, holding a total of 24.95% of the company. Zhang Guodong is the founder and chairman of Xinde Semiconductor, currently holding 5.38% of the company’s shares. It took Xinde only six years from its founding to submitting the application. This pace is uncommon in the semiconductor packaging industry—a typically asset-heavy and long-cycle sector. Xinde Semiconductor's performance has grown rapidly in recent years. According to the prospectus, from 2023 to 2025, Xinde Semiconductor’s revenue increased from 509 million yuan to 1.012 billion yuan, with a compound annual growth rate of 41%. In 2025, its Nanjing production base’s designed capacity is about 6.41 billion units, actual output is 5.416 billion units, and capacity utilization rate is 84.5%. According to Xinde Semiconductor’s plan, by 2028, the total designed capacity of its Nanjing and Yangzhou production bases will reach about 9.46 billion units. However, high growth comes with continued losses. From 2023 to 2025, Xinde Semiconductor’s losses were roughly 359 million yuan, 377 million yuan, and about 480 million yuan respectively. Reportedly, the IPO proceeds will mainly be used for building production bases, new production lines, enhancing R&D abilities in advanced packaging technologies, improving commercialization capabilities, and expanding client collaboration ecosystems. After submitting its application, Xinde Semiconductor will need to answer the capital market’s question: During the boom of domestic substitution, can it find enough space for survival between the scale advantages of leading enterprises and the flexibility of entrepreneurial companies? Meanwhile, the Hong Kong stock market’s valuation logic for semiconductor industry chain companies is shifting from “story” to “profit.” Whether Xinde Semiconductor’s 41% revenue growth and continued losses can secure an ideal IPO pricing remains an unresolved suspense. Risk Warning and Disclaimer The market involves risk; investment requires caution. This article does not constitute personal investment advice and does not take into account individual users' specific investment goals, financial circumstances, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their particular situation. Investments made accordingly are at your own risk.