Core Viewpoint - The company DiAo Micro (688381) is planning to acquire the equity of Rongpai Semiconductor (Shanghai) Co., Ltd. through a combination of issuing shares and cash payment, with no change in actual control and not constituting a restructuring listing [1] Group 1: Acquisition Details - The acquisition involves signing a letter of intent with the main shareholder of Rongpai Semiconductor, Dong Zhiwei, but the valuation, transaction amount, and the ratio of shares to cash have not yet been determined [1] - The transaction may or may not constitute a major asset restructuring or related party transaction [1] Group 2: Target Company Overview - Rongpai Semiconductor, established in 2017, specializes in the design and development of high-performance analog chips, including digital isolators and isolation interfaces, with applications in various sectors such as photovoltaics, energy storage, and electric vehicles [2] - The company has developed unique technologies like the iDivider technology, which offers advantages over traditional isolation technologies in terms of power consumption, speed, and noise [2] Group 3: Market Focus and Growth - Rongpai Semiconductor has received several accolades, including being recognized as a "specialized, refined, distinctive, and innovative" enterprise in Shanghai and a national-level "specialized and innovative" small giant [3] - The company reported a 40% year-on-year increase in shipment volume in Q1 2025 and aims to deepen its focus on high-barrier markets such as energy and automotive electronics [3] Group 4: Industry Insights - Mergers and acquisitions are seen as a key strategy for growth in the analog chip industry, as single companies struggle to establish comprehensive competitiveness in a long-tail product market [4] - The acquisition is expected to create strong synergies between DiAo Micro and Rongpai Semiconductor in terms of product categories, technology, market resources, and supply chain integration [4]