As the curtain closes on 2024, a significant acquisition has emerged in the A-share chip sector, marking an important event in the technology landscape of ChinaOn December 31st, the company known as Liyang Chip, which has gained recognition as the "first stock of chip testing" listed on the STAR Market, announced its intention to acquire 100% of the equity of Guoxin Micro, a notable player in the sector.

According to a spokesperson from Liyang Chip's investor relations department, the company currently lacks a presence in the specialized chip application domain, particularly within laboratories and related qualificationsThe testing processes and applications of integrated circuit chips differ significantly from that of mainstream consumer electronics chipsSuch applications are contingent upon the specific requirements and setups of the end customers involved.

Guoxin Micro, based in Chongqing, features an independent laboratory and an analysis verification platform

This positions it as a capable provider of identification, inspection, screening tests, and failure analysis for specialized components, chips, and modulesFurthermore, Guoxin Micro is reputed for its extensive development experience in analog circuits, mixed circuits, and power semiconductor devices, boasting a leading domestic position especially regarding the testing technology for RF and millimeter-wave chips.

The internal communications from Liyang Chip's management highlight that the testing workflow for specialized chips involves unique methodologies that differ across various dimensionsIn standard protocols, integrated circuit testing generally comprises four primary modules: digital chips, analog chips, mixed-signal chips, and chip evaluations.

Founded in 2019, Guoxin Micro stands as an independent third-party provider of integrated circuit testing technology solutions

It offers a comprehensive suite of services, including wafer testing, finished product testing, and module testingRecognized as a high-tech enterprise within the Chongqing area, it has also been classified as a "specialized and innovative" small to medium-sized enterprise.

In terms of scale, Liyang Chip significantly overshadows Guoxin MicroIt has established four integrated circuit testing technology service bases and an additional facility focused on wafer thinning, polishing, laser grooving, and laser cutting, leveraging its geographical advantages near major client basesAs of the first three quarters of 2024, Liyang Chip reported revenue of 360 million yuan.

Remarkably, Guoxin Micro's general manager, Li Ruilin, provided a revenue overview at the beginning of 2024, stating that the company achieved sales figures of 25 million yuan, 45 million yuan, and 80 million yuan respectively in 2021, 2022, and 2023, with expectations to reach 150 million yuan in sales by the end of 2024.

According to the latest disclosures, Guoxin Micro holds three invention patents and 22 software copyrights

Additionally, there are ongoing applications for one invention patent and eight software copyrightsBy mid-2024, Liyang Chip's total number of invention patents had accumulated to 106.

Liyang Chip's acquisition announcement emphasizes the laboratory verification capabilities and relevant qualifications that Guoxin Micro possesses in the specialized chip arenaIf this acquisition successfully materializes, it is anticipated to synergistically enhance Liyang Chip’s existing core business, thus filling a notable gap in the field of integrated circuit testing for specialized chips.

The depth of Liyang Chip's strategic planning reflects the significance and positive implications of this acquisition within the increasingly competitive integrated circuit sectorBy continuously focusing on its testing core business, this potential acquisition serves as a robust reinforcement of its strategic framework.

Technologically speaking, both firms carry distinct advantages

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This merger aims to create a deeper integration of their technologies, facilitating the construction of a more comprehensive technical frameworkSuch advancements would provide Liyang Chip with more innovative and competitive technological support in integrated circuit testing services.

Market dynamics also play a crucial role in the acquisition's potential benefitsGuoxin Micro may possess stable and substantial market shares in certain niche segments or specific regions, along with exclusive client resources and sales channelsBy harnessing these resources, Liyang Chip is positioned to broaden its market coverage, enhance its influence, and uncover further business opportunities within the vast integrated circuit testing services market.

From a qualification standpoint, different companies typically hold varying licenses, which bear significant value in the industryThese qualifications provide essential legitimacy and open up additional growth opportunities

The combination of capabilities and resources will allow Liyang Chip to navigate diverse business needs and requirements with greater ease, enhancing its authority and influence in the industry.

With such thorough resource integration, Liyang Chip is set to deepen its presence in the integrated circuit testing service domainThis will allow for a more complete optimization of its operational workflow, a diversified range of service offerings, and heightened professional competencies, ultimately elevating its competitive stance in an aggressive market setting and laying a solid foundation for sustained and stable future growthThis strategic decision aligns with the company's long-term development trajectory and underscores its responses to industry trends and its internal growth requisites.

Nevertheless, Liyang Chip approaches this acquisition with caution, proactively advising the market about potential risks