Aug 19 – Shanghai Jufeng Mingyuan Semiconductor plans to acquire 100% of Sichuan Yichong Technology via shares and cash, with the deal valued at 3.283 billion yuan (assessed 3.29 billion yuan). Supporting funds will be raised.
Jufeng Mingyuan says the acquisition will boost its "hard tech" strength, global reach, and consumer market position, expand automotive-grade products, and create synergy in clients, R&D, and supply chains—enhancing product portfolios and competitiveness.
Jufeng focuses on power management driver chips (LED, home appliances); Yichong specializes in wireless charging and automotive power chips, ranking near top 10 in 2024 A-share sales. Post-merger, combined sales may enter China’s top 5. Yichong’s valuation surged 260.08% by Dec 31, 2024.
Risks: Yichong commits 2025-2027 charging chip net profit ≥92M, 120M, 160M yuan; other power chip revenue ≥190M, 230M, 280M yuan. But compensation is capped at 90% of after-tax share proceeds, not covering full deal value.
The deal awaits exchange and regulator approval, with execution uncertainty.
ICgoodFind: Jufeng’s Yichong acquisition could drive synergy, but watch performance commitments and approvals.
