Chinese chip-equipment giant NAURA Technology reportedly plans to acquire a 9.5% stake in local lithography equipment maker Kingsemi for 1.69 billion yuan ($232.8 billion).
The strategic consideration of NAURA to acquire Xinyuan Micro
Although NAURA is already the largest semiconductor equipment company in China, occupying a certain market share in the fields of etching, thin film deposition, cleaning/epitaxy, etching, there are shortcomings in gluing and developing equipment. As the only enterprise in China that produces front-end gluing and developing equipment, Kingsemi just makes up for the vacancy of NAURA in this key link. Through the acquisition, NAURA can improve its product line, achieve full coverage from multiple key links of chip manufacturing to gluing and development, create a more complete semiconductor equipment business map, and improve its service capabilities and market competitiveness in the overall chip manufacturing process.
Technology convergence and synergy
The accumulation of gluing and developing technology of Kingsemi complements the advanced technology of NAURA in other equipment fields. For example, the precise treatment of the microstructure of the chip in etching technology and the precise coating and development of photoresist in the process of micro-coating and development of Kingsemi can achieve a more efficient connection in the upstream and downstream processes of chip manufacturing. This technology convergence will help improve the overall accuracy and efficiency of chip manufacturing, reduce production costs, and provide a broader space for further technological innovation, driving enterprises to a higher level in the field of semiconductor equipment technology.
Industrial integration responds to external pressures
In the current context of the continuous pressure on China's semiconductor industry by the United States, the accelerated integration of the domestic semiconductor industry has become an inevitable trend. NAURA acquires Kingsemi, which is an important measure to optimize the allocation of domestic industrial resources. By integrating the resources of the two companies, including technology, talents, market channels, etc., the overall competitiveness and anti-risk ability of China's semiconductor equipment industry in the global market can be enhanced. Under the conditions of external constraints, we should concentrate on breaking through the bottlenecks of key technologies, realize the localization and substitution of semiconductor equipment, reduce dependence on foreign technologies and equipment, and ensure the stability and security of the domestic semiconductor industry supply chain.
Figure: Domestic chip equipment giant NAURA has taken a stake in Kingsemi
NAURA is among the world's top ten semiconductor equipment manufacturers
Solid market share in core areas
NAURA has a market share of 30%, 25% and more than 2% respectively in core areas such as etching, thin film deposition, and cleaning/epitaxy. These areas are key links in the chip manufacturing process, and its stable market share not only reflects NAURA's advantages in technology and product quality, but also reflects its position in the global semiconductor equipment market. For example, in the field of etching, NAURA equipment can meet the requirements of different chip manufacturing processes for etching accuracy and efficiency, and has won the trust of many chip manufacturing enterprises, thus occupying a place in the market competition.
Strong revenue growth
From the perspective of revenue data, NAURA expects revenue in 2024 to be 27.6 billion - 31.78 billion yuan (about 4.4 billion US dollars), a year-on-year increase of 25.00% - 43.93%. This strong growth trend indicates that its products and services have a high demand and recognition in the market. With the continuous development of the global semiconductor industry, especially the rising demand for domestic equipment in China's domestic semiconductor industry, NAURA has achieved rapid revenue growth by virtue of its own technical strength and market expansion capabilities. This good financial performance provides solid financial support for its further R&D investment, market expansion and industrial integration, helping it gain a firm foothold among the world's top 10 semiconductor equipment manufacturers.
Technological innovation and continuous investment
NAURA has always adhered to technological innovation and continuously increased investment in research and development. Driven by the demand for advanced chip manufacturing processes, enterprises are actively exploring new equipment technologies and solutions. For example, a series of technological breakthroughs have been made in the precision control of equipment, the improvement of production efficiency, and energy conservation and environmental protection. The continuous technological innovation enables NAURA to keep up with or even lead the market demand and meet the continuously upgrading production requirements of chip manufacturing enterprises, so as to stand out in the global semiconductor equipment market competition, successfully rank among the world's top ten semiconductor equipment manufacturers, and win an international reputation for China's semiconductor industry.
NAURA acquires Kingsemi Micro as an important strategic measure to improve its industrial layout, enhance its technical strength and respond to external challenges, and its ranking among the world's top ten semiconductor equipment manufacturers is the result of its efforts in technological innovation, market expansion and industrial cultivation over the years.
