Core Viewpoint - Shenghe Jingwei Semiconductor Co., Ltd. has successfully passed the listing review by the Shanghai Stock Exchange for its IPO on the Sci-Tech Innovation Board, focusing on advanced packaging technology in the semiconductor industry [1][4]. Company Overview - Shenghe Jingwei was established as a joint venture between SMIC and JCET, with a focus on chiplet multi-chip integration packaging as its development direction [2]. - The company aims to optimize chip system performance through chiplet multi-chip integration packaging technology, which is recognized as a consensus in the industry as Moore's Law approaches its limits [2]. Market Position and Growth - Shenghe Jingwei plans to raise 4.8 billion yuan for investments in 3D multi-chip integration packaging projects, which will enhance its production capacity in response to the high growth demand in the mainland China's chiplet multi-chip integration packaging sector [3]. - According to Gartner, Shenghe Jingwei is projected to be the 10th largest packaging and testing company globally and the 4th largest domestically by 2024, with a compound annual growth rate (CAGR) of revenue from 2022 to 2024 ranking first among the top ten global companies [3]. - The company is expected to lead in 12-inch bumping capacity and revenue from 12-inch WLCSP and 2.5D packaging in mainland China by 2024 [3]. Customer Concentration - Shenghe Jingwei has a high customer concentration, with the top five customers accounting for 72.83% to 90.87% of total sales revenue from 2022 to the first half of 2025, and the largest customer contributing 40.56% to 74.40% during the same period [1]. - The high concentration is attributed to the dominance of a few leading firms in the downstream market of the advanced packaging industry, particularly in the chiplet multi-chip integration packaging sector [1].

Core Viewpoint - Shenghe Jingwei Semiconductor Co., Ltd. is set to go public on February 24, 2024, aiming to raise 4.8 billion yuan for advanced packaging projects, positioning itself as a significant player in the semiconductor testing and packaging industry [1][2]. Group 1: Company Overview - Shenghe Jingwei is ranked as the 10th largest semiconductor packaging and testing company globally and the 4th largest domestically according to Gartner [1]. - The company was established in 2014 as a joint venture between SMIC and JCET, focusing on bridging the gap in the 12-inch wafer processing segment [1][2]. Group 2: Business Operations - The company specializes in advanced 12-inch wafer processing and has become a key supplier for Qualcomm, marking its entry into the market [2]. - Shenghe Jingwei has achieved significant milestones in 12-inch wafer-level chip packaging (WLCSP), with mass production starting in 2018 [2]. Group 3: Market Position - As of 2024, Shenghe Jingwei holds the largest 12-inch Bumping capacity in mainland China and is the first to provide 14nm advanced process Bumping services [3]. - The company leads the market in 12-inch WLCSP revenue in mainland China with a market share of approximately 31% [4]. Group 4: Financial Performance - The company reported a compound annual growth rate (CAGR) of 69.77% in revenue from 2022 to 2024, with projected revenues of 6.52 billion yuan in 2025, reflecting a year-on-year growth of 38.59% [9]. - Shenghe Jingwei turned a profit in 2023 after previous losses, with net profits of 340 million yuan, 2.14 billion yuan in 2024, and 4.35 billion yuan in the first half of 2025 [9]. Group 5: Research and Development - The company has significantly increased its R&D investments, with expenditures rising from 257 million yuan in 2022 to 506 million yuan in 2024 [10]. - Shenghe Jingwei's R&D encompasses various advanced processes, including CVD, CMP, and TSV, contributing to its competitive edge in the industry [11].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The semiconductor packaging industry is experiencing a price increase due to rising costs in testing and packaging services, with major players like Daymoon and Taiwanese firms initiating price hikes of 5%-20% and close to 30% respectively [5] - The demand for semiconductor packaging is driven by the expansion of data centers and the recovery of orders in industrial control, leading to high operational rates for packaging manufacturers [5] - Domestic companies are accelerating the development of 2.5D packaging technology, with significant advancements and production capabilities being established, marking 2026 as a pivotal year for domestic advanced packaging capacity expansion [5] - Key companies to watch include Changdian Technology, Tongfu Microelectronics, and others that are positioned at the forefront of domestic computing power support [5] Summary by Sections Recent Market Performance - The report notes a recent market performance with fluctuations of -13%, 3%, 19%, 35%, 51%, and 67% in various sectors compared to the CSI 300 index [2] Industry Dynamics - The semiconductor packaging sector is facing structural supply-demand mismatches, compounded by rising prices of essential raw materials like gold, silver, and copper [5] - The 2.5D packaging technology is becoming mainstream, with leading global companies holding over 80% market share, while domestic firms are working to close the technology and capacity gaps [5] Investment Recommendations - The report suggests focusing on key enterprises with advanced packaging capabilities and those in the supporting supply chain, including companies like Changchuan Technology and Jinhai Tong [5]