New stock news | Union Semiconductor (688403.SH) submitted documents to the Hong Kong Stock Exchange, focusing on advanced packaging and testing solutions for DDIC.

According to the disclosure by the Hong Kong Stock Exchange on May 29, Hefei Union Microelectronics Co., Ltd. (referred to as Union Semiconductor (688403.SH)) has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC as the exclusive sponsor. Company Profile The prospectus shows that Union Semiconductor is a semiconductor packaging and testing service provider, specializing in advanced packaging and testing solutions for DDIC. The company's service portfolio is built around four core process technologies: bump manufacturing, wafer testing ("CP"), chip-on-glass ("COG"), and chip-on-film ("COF"). The company's services are mainly used for DDIC in LCD and AMOLED display panels, with end applications spanning consumer electronics, industrial control, and automotive electronics. The company is also strategically expanding its capabilities in memory IC packaging and testing, poised to seize the opportunities brought by the rapid development driven by AI. DDIC is a key component of the display panel imaging system. The company's comprehensive services cover the entire packaging and testing process: bump manufacturing and wafer testing are carried out at the wafer level before dicing. Subsequently, based on the target display application and module design, the chip is packaged using COG or COF. Customers can choose to hire the company to provide one or more of these processes. Bump manufacturing: Bump manufacturing is the process of forming bumps on the wafer's pads through processes such as sputtering, lithography, electrochemical deposition, and wet etching. Bumps enable efficient power transmission and replace traditional wire bonding in several advanced packaging applications. CP: CP refers to the process of establishing electrical contact for each grain on the probe card and wafer to test its electrical characteristics. Grains that do not meet specified standards are marked (e.g., with ink) and screened out during the dicing stage to prevent them from entering downstream packaging and testing processes. COG: COG packaging refers to the process of directly bonding the bumps on the chip to the electrodes on the glass substrate and sealing the connection area with adhesive material for mechanical protection and environmental isolation. COF: COF packaging refers to bonding the bumps on the chip to the internal pins on a flexible film substrate, providing high-density interconnection and flexible installation for display and related applications. By integrating these processes, the company can meet the different process requirements of customers in the DDIC value chain. According to data from Frost & Sullivan, Union Semiconductor ranked second in China's mainland DDIC advanced packaging and testing market by revenue in 2025; and by 2025, the company ranked second in China's mainland packaging and testing market for 12-inch wafer bumps. With a shipment volume of 511.3 thousand wafer pieces, the company became the fourth-largest DDIC advanced packaging and testing service provider globally. With its advanced process technology, stable product yield, and strong service capabilities, the company has established a wide range of leading customers in the global DDIC design industry. In 2025, the company provided services to four of the top five DDIC design companies globally and nine of the top ten in China's mainland. These include several of the world's most well-known DDIC design companies, such as Ilitek, Tianyu Semiconductor, Raydium, Chunghwa Picture Tubes, Silergy, JCET North, Oneplus, Yi-Li Technology, Shanghai New Vision Microelectronics, and CrystalGate Technology. The chips packaged and tested by the company are used by leading display panel manufacturers globally. Looking ahead, the company plans to further expand its advanced packaging and testing capabilities in AMOLED DDIC and large-size display panels, increase its business in memory ICs, and consolidate its leading position in core end applications. The company will continue to invest in research and development, expand the application scope of its services, and actively seize emerging opportunities in automotive electronics and AI-driven applications. Financial Data Revenue: In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 1.238 billion, RMB 1.501 billion, and RMB 1.783 billion respectively. Profit: In the fiscal years 2023, 2024, and 2025, the company reported annual profits of approximately RMB 196 million, RMB 160 million, and RMB 155 million respectively. Gross Profit Margin: In the fiscal years 2023, 2024, and 2025, the company's gross profit margins were 26.4%, 21.8%, and 21.7% respectively. Industry Overview As demand in sectors such as consumer electronics, automotive electronics, and industrial control rebounds, semiconductor shipments increase, thereby driving packaging and testing demand. The global semiconductor packaging and testing market size increased from RMB 495.6 billion in 2020 to RMB 804.8 billion in 2025, with a compound annual growth rate (CAGR) of 10.2% from 2020 to 2025. With the continued expansion of applications such as artificial intelligence, large-scale training models, data center construction, and edge computing, high-performance chip demand is expected to continue growing, further driving the overall packaging and testing market size. It is estimated that from 2026 to 2030, the market size will increase at an average annual rate of 13.0% and reach RMB 1.3831 trillion by 2030. As a significant market for electronic manufacturing and end applications, Chinese packaging and testing enterprises have taken on a large proportion of mid-to-high-end packaging capacity. The industry cluster effect is evident, and there is a strong ability to expand scale. The market size of China's semiconductor packaging and testing market increased from RMB 174.9 billion in 2020 to RMB 314.4 billion in 2025, with a CAGR of 12.4% from 2020 to 2025. It is projected to increase at an average annual rate of 15.3% from 2026 to 2030 and reach RMB 598.2 billion by 2030. The global advanced packaging market size increased from RMB 214.1 billion in 2020 to RMB 396.7 billion in 2025, with a CAGR of 13.1% from 2020 to 2025. It is expected to increase at an average annual rate of 16.5% from 2026 to 2030 and reach RMB 790.3 billion by 2030. China plays a significant role in the global electronic manufacturing and end application market, with fast-growing downstream application demand driving the demand for advanced packaging. The market size of China's advanced packaging market increased from RMB 58.6 billion in 2020 to RMB 126.2 billion in 2025, with a CAGR of 16.6% from 2020 to 2025. It is projected to increase at an average annual rate of 20.6% from 2026 to 2030 and reach RMB 298.5 billion by 2030. Advanced packaging is a key driver of the market value of display-driven chips. For display-driven chips, higher resolution and narrower bezel designs pose higher requirements for packaging technology, driving the penetration of advanced packaging. From 2020 to 2025, the global display-driven chip advanced packaging market size increased from RMB 102 billion to RMB 131 billion, with a compound annual growth rate of 5.1%. The market is expected to continue to grow steadily in the future, reaching RMB 189 billion by 2030. In the Chinese market, from 2020 to 2025, the market size of advanced packaging for display-driven chips increased from RMB 36 billion to RMB 68 billion, with a compound annual growth rate of 13.6%. It is expected that the growth rate of the market size of advanced packaging for display-driven chips in China will remain stable, reaching RMB 138 billion by 2030 with a compound annual growth rate of 12.5%. Board Information The board consists of nine directors, including two executive directors, three non-executive directors, and four independent non-executive directors. The directors serve a term of three years and can be re-elected upon the expiry of their term. According to relevant Chinese laws and regulations, the term of office for independent non-executive directors shall not exceed six consecutive years. Equity Structure As of the latest practicable date, (i) the residual partnership interests of Yangzhou Xinrui Lian and Hefei Bairui Fa are held by Ms. Ji Nian, as limited partners, and (ii) the remaining equity of Bairui Fa Investment and Huicheng Investment is owned by Mr. Shen Guowei (spouse of Ms. Ji Nian and son of Mr. Shen Jianwei, a non-executive director). Baoxin International is an employee stock ownership platform established before the A-share listing. As of the latest practicable date, Mr. Lin Wenhao (executive director, deputy general manager, and director of the R&D Center of the company) holds approximately 4.80% of the remaining equity of Baoxin International, while the remaining 42.00% is held by 18 other shareholders, including current and former employees of the group and independent third parties. Hefei Xin was established as an employee stock ownership platform before the A-share listing. As of the last practicable date, Hefei Xin was held by Mr. Zheng (as its general partner) with approximately 37.91%, by Hefei Baoxin Enterprise Management Consultancy Partnership Enterprise (Limited Partnership) ("Hefei Baoxin", as a limited partner) with 15.86%, by Hefei Huixin Enterprise Management Advisory Partnership Enterprise (Limited Partnership) ("Hefei Huixin", as a limited partner) with 13.61%, and by 42 other individuals with 32.62%, all of whom were current or former employees of the group and independent third parties. Hefei Baoxin is held by Mr. Zheng (as its general partner) with approximately 25.11% equity and by 24 other individuals with 74.89% equity, all of whom were current or former employees of the group and independent third parties. Hefei Huixin is held by Mr. Zheng (as its general partner) with approximately 22.52% equity and by 37 other individuals with 77.48% equity, all of whom were current or former employees of the group and independent third parties. As of the last practicable date, Suzhou Xinpuz was owned by the company as its sole limited partner with 99.07% equity and by the independent third-party Suzhou Industrial Park Lanpu Entrepreneurship Investment Management Partnership Enterprise (Limited Partnership) as its sole general partner with 0.93% equity. Suzhou Xin has been merged into the company's accounts. Intermediary Team Exclusive Sponsor: China International Financial Hong Kong Securities Co., Ltd. Company Legal Advisor: Hong Kong and U.S. law: Friedlanders LLP; Chinese law: Anhui Tianhe Law Firm Legal Advisor to the Exclusive Sponsor: Hong Kong and U.S. law: Skadden, Arps, Slate, Meagher & Flom LLP; Chinese law: King & Wood Mallesons Auditors and Reporting Accountants: PricewaterhouseCoopers Hong Kong Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch