VeriSilicon(SH:688521) Hua Xia Shi Bao·2025-09-03 07:17Core Viewpoint - Chip manufacturer Chip Origin Co., Ltd. (688521.SH) is planning to acquire a stake in Chip Lai Zhi Rong Semiconductor Technology (Shanghai) Co., Ltd. to transform into a leader in AI ASICs, amidst a wave of mergers and acquisitions in the A-share market [2][6]. Group 1: Acquisition Details - Chip Origin announced plans to purchase equity in Chip Lai Zhi Rong through a combination of issuing shares and cash, while also raising supporting funds [2]. - The acquisition is still in the planning stage, and the specific transaction details, including valuation, are yet to be determined [2][3]. - Chip Origin currently holds a 2.99% stake in Chip Lai Zhi Rong and aims to acquire full or controlling ownership [5]. Group 2: Financial Performance - In the first half of 2025, Chip Origin reported a net loss of 320 million yuan, which is an increase compared to the same period last year [3][11]. - Despite the losses, the company's stock price has surged over six times since September 2022, from a low of 24.45 yuan per share to a peak of 174.98 yuan before the trading halt [3]. - The company’s IP licensing revenue for the first half of 2025 was 281 million yuan, marking an 8.2% year-on-year increase [11]. Group 3: Market Position and Strategy - Chip Lai Zhi Rong, founded by Hu Zhenbo, is a pioneer in RISC-V architecture and has developed several CPU IP product lines, with over 300 domestic and international clients [4][5]. - Chip Origin is a key player in promoting the RISC-V ecosystem in China, having established the China RISC-V Industry Alliance with 204 member units as of June 2025 [5]. - The acquisition is expected to enhance Chip Origin's full-stack IP capabilities, particularly in AI and IoT applications, which are projected to grow significantly [6][12]. Group 4: Industry Trends - The RISC-V architecture is gaining traction as a foundation for AI chips, with market penetration expected to rise from 5.9% in 2024 to 25.7% by 2031 [7]. - The demand for RISC-V based SoC chips is projected to exceed 20 billion units by 2031, with significant market shares in consumer electronics, computing, and automotive sectors [7]. - Chip Origin's ASIC business has seen a substantial increase in new orders, with design business new orders exceeding 700 million yuan in Q2 2025, reflecting a growth of over 700% quarter-on-quarter [10].