Core Viewpoint - Chip Origin Co., Ltd. has disclosed two significant merger and acquisition developments, including the termination of the acquisition of 97% equity in Xinlai Zhihong and the initiation of a new acquisition of control over Zhudian Semiconductor [1][3]. Group 1: Termination of Acquisition - The termination of the acquisition of Xinlai Zhihong was due to discrepancies between the core demands of the target company's management and the market environment, policy requirements, and the interests of the company and all shareholders [1][3]. - Chip Origin emphasized that this termination will not adversely affect the company's normal business operations and will not harm the interests of shareholders, particularly minority shareholders [1][3]. Group 2: New Acquisition of Zhudian Semiconductor - Chip Origin has signed agreements with five co-investors, including Huaxin Dingxin and Guotou Xiandao, to proceed with the acquisition of Zhudian Semiconductor, which is a wholly-owned subsidiary of Nasdaq-listed Pixelworks [1][4]. - Upon completion of this transaction, Chip Origin will become the sole largest shareholder of the acquisition entity, Tiansui Xinyuan, and Zhudian Semiconductor will be included in Chip Origin's consolidated financial statements [1][4]. Group 3: Impact of the Acquisition - The acquisition is expected to strengthen the company's technological advantages in the visual processing field and enhance its competitiveness in the edge AI ASIC market [2][4]. - Zhudian Semiconductor is recognized as a leading manufacturer of 3LCD projector SOCs, with its mobile visual processing chips achieving over 80% market share among mainstream mobile manufacturers [2][4]. - Despite its technological advancements, Zhudian Semiconductor has not yet achieved profitability, with projected revenues of 363 million yuan and 286 million yuan for 2024 and the first half of 2025, respectively, alongside net losses of 121 million yuan and 64.06 million yuan [2][4]. Group 4: Industry Context - The semiconductor industry is undergoing deep integration, with Chip Origin leveraging technological acquisitions to penetrate the visual processing market [5]. - The ongoing acquisition process may provide a new paradigm for the restructuring of the global semiconductor industry chain through vertical integration exploration within China's semiconductor sector [5].