Core Viewpoint - Shanghai Xiangxin Integrated Circuit Co., Ltd. has filed for bankruptcy, marking the exit of a significant local packaging and testing enterprise from the market, despite its previous achievements in the industry [1][2]. Group 1: Company Overview - Xiangxin was established in 2011 and focused on integrated circuit packaging and testing, aiming to become a reliable supplier of power management chips [3]. - The company developed various mature packaging processes, including SOP and SOT, and accumulated 35 patents, earning titles such as "High-tech Enterprise" and "Specialized and Innovative" [1][2]. Group 2: Business Challenges - Despite its technological capabilities, Xiangxin struggled to maintain operational resilience, facing challenges such as failed equity restructuring attempts and multiple contract disputes [1]. - The company had a total of 4 million yuan in mortgaged equipment, indicating significant pressure on its cash flow [1]. - A reduction in customer orders and rising costs led to an inability to sustain operations, ultimately resulting in the decision to enter judicial bankruptcy proceedings [1][2]. Group 3: Market Context - Xiangxin initially benefited from the surge in domestic demand for power management chips, supporting applications in consumer electronics and industrial control [3]. - However, the company could not withstand market shocks due to its reliance on a single technology route and a relatively concentrated customer base, leading to a vicious cycle of revenue decline and cash flow strain when core customer orders fluctuated [3].