ZhongWei Semiconductor Plans to Increase Capital in Zhuhai Boya to Intensify Layout in Storage Chips

Securities Times Reporter Ye Lingzhen

On the evening of March 22, SMIC Microelectronics (688380) announced that the company plans to use 1.6 billion yuan of its own funds to increase its capital in Zhuhai Boya Technology Co., Ltd., subscribing to 12.5 million yuan of its new registered capital. After the transaction is completed, the company will hold a 20% stake in Zhuhai Boya and become a shareholder.

The announcement shows that Zhuhai Boya was established in 2014 and focuses on the research and design of storage chips such as NOR Flash. In terms of business, Zhuhai Boya is also engaged in R&D and design of two different NOR Flash process structures, ETOX and SONOS. Its products are mass-produced using 65nm, 55nm, 50nm, and 40nm processes, covering full capacities from 512KB to 2GB across multiple categories. They are mainly used for storing boot codes and firmware, widely applied in consumer electronics, industrial control, communication devices, automotive electronics, and other fields. Key clients include Renesas, Tuya, and Lianhe Micro.

From 2023 to 2025, Zhuhai Boya’s product shipments are expected to be 692 million, 602 million, and 434 million units, respectively, with corresponding revenues of 180 million yuan, 170 million yuan, and 197 million yuan. The gross profit margins are -14.24%, 4.10%, and 12.39%, indicating ongoing losses. However, in recent years, the company’s product structure has been shifting towards high-end products, with the proportion of 55nm/65nm products decreasing from 93.7% to 58.7%, and 50nm products increasing from 6.3% to 35.9%. Starting in 2025, 40nm products will begin shipping, and 1GB high-capacity products have been successfully introduced to the market.

SMIC Microelectronics stated that with the recovery of the storage chip market in 2026, Zhuhai Boya’s revenue has significantly increased, and gross profit margins are rising rapidly. It is expected that once sufficient operational funds are secured, Zhuhai Boya will enter a period of rapid growth and is likely to turn losses into profits.

Regarding valuation, considering the current investment environment in the primary semiconductor market and Zhuhai Boya’s business situation, both parties agree that the pre-investment valuation of Zhuhai Boya in this round is 640 million yuan.

SMIC Microelectronics believes that the company and Zhuhai Boya have strong business synergy and complementarity. Specifically, SMIC’s core product, MCU, is the main control chip required for intelligent control. As the demand for computing power increases with automation, MCUs are often paired with storage chips. Therefore, the company has strategically focused on the storage chip sector as part of its “MCU+” strategy. Earlier this year, SMIC released its first SPI NOR Flash, entering the storage product market. The investment in Zhuhai Boya will further enhance its layout in the storage chip market.

In addition to continuously expanding its business boundaries, SMIC maintains a steady advantage in its existing core areas. By 2025, the company’s chip shipments are expected to reach new highs, with automotive-grade chips increasing by about 100%, and shipments of other consumer electronics and industrial control chips growing by over 50%.

In terms of performance, SMIC projects revenue of 1.122 billion yuan in 2025, a year-on-year increase of 23.09%, and net profit of 284 million yuan, up 107.68%. SMIC stated that in 2026, the company will increase R&D investment, with more new products launched, including storage products and large-resource MCUs. Coupled with current capacity constraints leading to price increases, revenue growth is expected to accelerate.