Core Viewpoint - The report highlights the financial performance and operational challenges faced by Brite Semiconductor (Shanghai) Co., Ltd. during the first half of 2025, including a significant decline in revenue and net profit due to fluctuating customer demand and increased R&D investments [3][12]. Company Overview and Financial Indicators - Brite Semiconductor specializes in providing one-stop chip customization services in the integrated circuit design industry, focusing on new-generation information technology [6][11]. - The company reported a total revenue of approximately 281.8 million RMB for the first half of 2025, a decrease of 52.56% compared to the same period in the previous year [4]. - The net profit attributable to shareholders was approximately -60.9 million RMB, representing a decline of 175.69% year-on-year [4][12]. - The company’s R&D investment as a percentage of revenue increased to 32.44%, up by 21.70 percentage points from the previous year [4]. Business Model and Services - Brite Semiconductor operates under a Fabless model, focusing on chip design while outsourcing manufacturing and testing processes to third-party foundries [6][9]. - The company offers two main types of services: full-custom chip services and engineering-custom chip services, catering to diverse customer needs across various industries [11][12]. - The company has developed a comprehensive technology service system, enabling it to assist clients in efficiently completing chip design and mass production [11]. Industry Context - The global integrated circuit market is projected to grow to 700.9 billion USD by 2025, following a slight decline in 2023 [7]. - The integrated circuit industry in China is experiencing rapid growth, with a compound annual growth rate of 16.09% in production volume from 2014 to 2024 [7]. - The demand for semiconductor IP and customized chip solutions is increasing, driven by advancements in artificial intelligence, IoT, and other emerging technologies [10][11].