Semitronix Turns First-Half Profit, Reveals USD188 Mln Investment in Chip Services Projects
Tang Shihua
DATE:  Aug 30 2022
/ SOURCE:  Yicai
Semitronix Turns First-Half Profit, Reveals USD188 Mln Investment in Chip Services Projects Semitronix Turns First-Half Profit, Reveals USD188 Mln Investment in Chip Services Projects

(Yicai Global) Aug. 30 -- Chinese semiconductor industry services provider Semitronix said it returned to profit in the first half of the year and plans to invest CNY1.3 billion (USD188 million) in two integrated circuit services projects.

Net profit was CNY575,300 (USD83,200) in the six months ended June 30, versus a CNY6.4 million (USD925,100) loss a year ago, according to the Hangzhou-based firm’s earnings report published yesterday. Operating income jumped 72 percent to CNY77.7 million due to soaring demand. Net cash flow from operations was CNY71.5 million, a 685 percent increase.

Semitronix also said it will invest CNY1 billion to build a chip design software development and testing base in Shanghai’s free trade zone to provide IC manufacturers with one-stop solutions for chip electronic design automation or EDA software for chip design, as well as chip performance testing equipment and services to help wafer makers improve production yield and product reliability.

The remaining CNY300 million (USD43.4 million) will be spent in Changsha in central China to focus on the IC EDA software business, while also setting up an R&D center for both EDA and semiconductor big data software, as well as a regional headquarters there.

But the two announcements did little for the company’s closing stock price today. Semitronix [SHE: 301095] ended 0.5 percent higher at CNY92.44 (USD13.37), after earlier gaining as much as 4.4 percent.

The company went public on the Shenzhen Stock Exchange’s Nasdaq-like ChiNext board on Aug. 5, with an issue price of CNY58. After soaring up to 172 percent on the first trading day, the shares have fallen back.

Semitronix did not release a construction schedule for the two projects but said annual revenue from the Shanghai base is expected to exceed CNY200 million, with a tax payment of no less than CNY16 million (USD2.3 million) in the first five years after completion. Tax payments by the Changsha base may increase year by year to CNY8.4 million in 2026.

The new Shanghai factory should focus its business on services for chipmakers that supply new energy and auto electronics sectors, Semitronix added, without saying what kinds of clients its Changsha factory would cater for.

Semitronix has four major businesses: EDA software tool licensing and technology development; supply of chip performance test equipment and accessories; and chip testing services. Its customers include well-known IC designers and makers and integrated design and manufacturers.

Editor: Futura Costaglione

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