Core Viewpoint - Qizhong Technology (688352.SH) is increasing its investment in advanced packaging by acquiring a 2.27% stake in HeXin Integrated Circuit Co., Ltd. for 50 million yuan, aiming to enhance its position in the high-end computing chip packaging market and diversify its non-display chip business [1][2]. Group 1: Investment and Strategic Moves - The investment in HeXin Integrated is not merely a financial transaction but a strategic initiative aimed at achieving industrial chain synergy, targeting the high-end computing chip packaging market while addressing gaps in non-display chip business [2][3]. - HeXin Integrated, established in 2021, focuses on high-end packaging and testing for integrated circuits, with a registered capital exceeding 10.57 billion yuan, serving sectors like information communication, AI, big data centers, and automotive electronics [2][3]. Group 2: Technological and Ecological Synergy - The collaboration will enable deep synergy in customer bases, technology, and industrial ecosystems, with Qizhong leveraging its established customer relationships in display drivers and power management, while HeXin offers unique positioning in 5G/6G and AI [2][3]. - Qizhong's expertise in bump manufacturing and flip-chip packaging complements HeXin's strengths in 2.5D/3D integration, creating a comprehensive technology chain and enhancing core technological barriers through shared R&D resources [2][3]. Group 3: Business Performance and Future Outlook - Qizhong Technology, under the control of the Hefei State-owned Assets Supervision and Administration Commission, has solidified its leading position in the display driver chip packaging sector, with projected revenue of 1.758 billion yuan and sales of 18.45 billion units in 2024 [4]. - The company reported a revenue of 1.605 billion yuan for the first three quarters of 2025, marking an 11.8% year-on-year increase, although net profit decreased by 19.2% [4]. - Qizhong is accelerating its diversification strategy, with over half of the 839 million yuan raised from convertible bonds directed towards enhancing non-display chip packaging capacity, which is expected to generate an additional annual revenue of over 790 million yuan upon reaching full production [4][5].