Core Viewpoint - The article discusses the financial performance and strategic developments of Huada Jiutian, highlighting its growth potential in the EDA (Electronic Design Automation) industry and the impact of recent acquisitions and market conditions on its future prospects [1][2][3][4]. Financial Performance Summary - In Q1 2025, Huada Jiutian reported revenue of 234 million yuan, a year-on-year increase of 9.8% but a quarter-on-quarter decrease of 51.1%, with a net profit attributable to shareholders of 9.71 million yuan [1]. - For 2024, the company expects revenue of 1.222 billion yuan, a year-on-year growth of 20.98%, with a gross margin of 93.31% and a net profit margin of 8.96%, despite a projected net profit decline of 45.46% due to stock payment expenses [1]. Strategic Developments Summary - Huada Jiutian has established a comprehensive EDA tool system covering analog, storage, RF, and flat panel display circuit design, with plans to enhance its digital circuit and wafer manufacturing capabilities [2]. - The company is set to acquire 100% of Chip and Semiconductor, which will complement its product line and support a full-link electronic system design simulation platform, enhancing its capabilities in advanced packaging and various chip applications [3]. - The acquisition aligns with the trend of domestic EDA tool localization, especially following Huada Jiutian's inclusion in the U.S. Entity List, which is expected to accelerate the domestic EDA industry's development [3]. Investment Outlook Summary - Huada Jiutian is positioned as a leading player in the domestic EDA market, likely to benefit from the trend of EDA localization, with a strategic focus on expanding its system-level EDA product offerings through the acquisition of Chip and Semiconductor [4].

Core Viewpoint - The article discusses the evolution of semiconductor manufacturing processes, highlighting the transition from traditional linear workflows to more integrated approaches like Design and Technology Co-Optimization (DTCO) and Holistic Process Optimization (HPO) [1][3][6]. Group 1: Evolution of Semiconductor Manufacturing - In the early stages of semiconductor manufacturing, the process followed a simple linear flow with limited information exchange between steps [1]. - Since around 2000, as technology nodes have shrunk and lithography techniques advanced, the complexity of chip manufacturing has increased, leading to a greater coupling between design and manufacturing processes [1]. - DTCO has emerged as a core technology in chip manufacturing, widely adopted by leading manufacturers like TSMC and Samsung to enhance process upgrades and improve product yield [1]. Group 2: HPO Concept and Implementation - The founding team of the company began collaborating with top global chip manufacturers during the early development of DFM and DTCO concepts, leading to the establishment of the HPO concept in 2014 [3]. - HPO focuses on integrating design-related information into the manufacturing process, particularly in measurement and testing, to optimize manufacturability and yield [3]. - The HPO framework aims to create a closed-loop system for data integration, enhancing the collaboration between design and manufacturing [3][4]. Group 3: HPO Product Matrix and Market Practice - The company has developed a series of HPO strategic products, including DMC, PHD, ODAS, PME, and YieldBook, to enhance manufacturability checks and yield optimization [4][5]. - These products have been successfully applied in various domestic chip manufacturers, contributing to advanced chip technology and process development [5]. Group 4: HPO 2.0 Strategic Planning - The company is initiating HPO 2.0, which aims to integrate AI capabilities into existing products and develop new applications to enhance the semiconductor design and manufacturing process [6][9]. - AI will be utilized to improve optical proximity correction models, enhance yield equipment functionalities, and create a comprehensive data platform for yield analysis [8][9]. - The transition to HPO 2.0 signifies a strategic upgrade from point tool providers to platform solution providers, aiming to overcome yield bottlenecks in advanced processes [9].

Core Viewpoint - The article discusses the strategic acquisition of Chip and Semiconductor Technology (Shanghai) Co., Ltd. by Huada Jiutian, a leading EDA company in China, aiming to enhance its product offerings and market reach in the semiconductor industry [2][3]. Group 1: Acquisition Details - Huada Jiutian is planning to acquire a controlling stake in Chip and Semiconductor through a combination of share issuance and cash payment [2]. - The acquisition is expected to complement Huada Jiutian's existing product line and strengthen its position as a comprehensive EDA provider [2][3]. - The integration of both companies' products will allow for the development of complete EDA solutions across various domains, including RF, storage, power, and advanced packaging [3]. Group 2: Market Context - The semiconductor industry is shifting towards design and manufacturing co-optimization (DTCO) and system and manufacturing co-optimization (STCO) [2]. - Major international EDA companies are accelerating their transition to system-level optimization through strategic acquisitions, reshaping the EDA industry landscape [2]. - The acquisition aligns with national strategies and the implementation of the "six acquisition strategies" to foster new productive forces [3]. Group 3: Future Prospects - If the acquisition is successful, it will enable rapid integration of resources and technology, facilitating the establishment of a complete tool system from chip to system level [3]. - The deal is expected to significantly expand Huada Jiutian's market size and customer base, promoting sustainable business growth [3]. - A preliminary agreement has been signed, and a detailed transaction plan is expected to be disclosed within ten trading days during the suspension period [3].