Splurging 160 Million: Why Did AMEC Choose This "Hidden Gem"?

Listing | Zhongfang Network

Review | Li Xiaoyan

On the evening of March 22, SMIC Microelectronics announced that it plans to invest 160 million yuan of its own funds to increase its capital in Zhuhai Boya Technology Co., Ltd., subscribing to 12.5 million yuan of its new registered capital. After the transaction is completed, SMIC Microelectronics will hold a 20% stake in Zhuhai Boya, becoming a shareholder. Against the backdrop of a global semiconductor market rebound and accelerated domestic substitution, this capital increase is not only a key step for SMIC Microelectronics to improve its “MCU+ Strategy” but also reflects the domestic chip companies’ strategic layout to achieve high-quality development through industry chain collaboration.

Looking back at this investment, SMIC Microelectronics’ strategic considerations and business synergy needs are clear. As a chip design company centered on MCUs (Microcontroller Units), memory chips have become a core area of its “MCU+ Strategy.” Earlier this year, SMIC Microelectronics released its first SPI NOR Flash, officially entering the storage product market. This capital increase in Zhuhai Boya is a further enhancement of this layout. By leveraging the target company’s technological and product accumulation, SMIC Microelectronics aims to quickly address R&D and mass production shortfalls in the storage chip field, forming a “MCU+Storage” synergy effect and improving the competitiveness of integrated smart control solutions.

From an outlook perspective, this investment is expected to achieve a win-win situation for both parties. SMIC Microelectronics stated that the storage chip market will continue to recover in 2026. Currently, Zhuhai Boya has shown a significant increase in revenue and a rapid rise in gross profit margin. The operational funds provided by this capital increase will help Zhuhai Boya enter a period of rapid growth and potentially turn losses into profits. For SMIC Microelectronics, relying on Zhuhai Boya’s technical accumulation in NOR Flash, it can further enrich its storage product portfolio, expand downstream applications such as consumer electronics, industrial control, and automotive electronics, and reduce R&D and market expansion costs through synergy effects, injecting new momentum into revenue growth. Additionally, this investment is made with its own funds and will not significantly impact SMIC Microelectronics’ financial condition or operating results, demonstrating the company’s prudent investment strategy.

Supporting SMIC Microelectronics’ bold layout is its impressive operational performance. According to the 2025 annual report, the company achieved a total revenue of 1.122 billion yuan, a year-on-year increase of 23.09%; net profit attributable to shareholders was 284 million yuan, a surge of 107.68% year-on-year, achieving double-digit growth in both revenue and profit. The performance growth is mainly due to two factors: first, the rapid increase in shipments of automotive-grade and industrial control chips, with automotive-grade chip shipments increasing by about 100% year-on-year; second, continuous product structure optimization, with 32-bit MCU sales accounting for approximately 36%, up from about 32%, and overall gross margin rising from around 30% last year to 34%. As of the end of 2025, SMIC Microelectronics’ total assets were 3.68 billion yuan, with shareholders’ equity of 3.178 billion yuan, with sufficient cash on hand, demonstrating strong financial capacity for external investments.

In terms of capacity, SMIC Microelectronics announced in January this year a price increase for MCU and NOR Flash products, ranging from 15% to 50%, mainly due to tight upstream wafer capacity and extended foundry lead times. The company stated that some product lines are currently in short supply, with customers waiting for delivery, while overall downstream demand is growing.

From the market competition landscape, the NOR Flash industry is highly concentrated. In the automotive NOR Flash sector, the top five global manufacturers—Infineon, Winbond Electronics, Micron Technology, Winbond Electronics, and GigaDevice—hold about 84% of the market share. Take GigaDevice, a leading industry player, as an example: it has been deeply engaged in the NOR Flash field for many years, and in 2025, it ranked among the top in the global NOR Flash market. Compared to this, Zhuhai Boya, which is being increased in capital, although currently under pressure in performance, has distinct technological and product advantages and is an important support for SMIC Microelectronics’ storage layout.

Founded in 2014, Zhuhai Boya was established with the participation of overseas returnee doctors. It specializes in R&D and design of storage chips such as NOR Flash. Its founder and actual controller, DI LI, is a veteran flash memory technology expert who previously worked at Micron and FSI Semiconductor, with extensive industry experience. The core technical team also has over 10 years of experience in flash memory chip design, mass production, and promotion, with a strong technical foundation.

From an industry perspective, the cooperation between SMIC Microelectronics and Zhuhai Boya aligns with the development trends and pathways of the semiconductor industry. Currently, the semiconductor industry is entering a new cycle of development. On one hand, explosive growth in AI computing power, a rebound in storage chip markets, and ongoing automotive electronics upgrades are driving strong industry growth. The World Semiconductor Trade Statistics (WSTS) predicts that by 2026, the global semiconductor market will grow by 26.3%, reaching $975 billion, with storage chips as a core growth driver. Tight capacity will persist, creating development opportunities for related companies. On the other hand, driven by geopolitical factors and domestic substitution, industry mergers and acquisitions are accelerating.

At present, China’s semiconductor industry is transitioning from “single-point breakthroughs” to “ecosystem integration.” For SMIC Microelectronics, this investment is not only an extension of its industry layout but also a crucial move in its transformation from an MCU manufacturer to a provider of comprehensive smart control solutions. As SMIC Microelectronics Vice President Yu Feng stated, “In the semiconductor industry, besides AI, the next major development cycle is storage.” With Zhuhai Boya’s continued advancement in high-end product development and the cyclical recovery of the storage chip market, the synergistic effects of this investment are expected to gradually emerge in the future.