Silan Microelectronics announced that it and related parties signed a capital increase agreement with Huaxin Dingxin (Beijing) Equity Investment Fund, which will inject RMB 900 million in cash into Xiamen Silan Jihua for a 14.98% stake. Huaxin Dingxin is backed by the National Integrated Circuit Industry Investment Fund Phase III (Big Fund III), which holds 99.9001% of Huaxin Dingxin. This marks Big Fund III's formal entry into Silan Micro's RMB 20 billion 12-inch high-end analog chip project.
The RMB 900 million fills the last piece of Phase I capital. Xiamen Silan Jihua is building a 12-inch high-end analog chip line with RMB 10 billion Phase I investment, RMB 6.01 billion capital, and RMB 3.99 billion in bank loans. After prior shareholder contributions, Silan Jihua's registered capital was RMB 5.11 billion, with RMB 900 million reserved for later investors. Huaxin Dingxin subscribes all in cash at no premium and gets one board seat and one supervisory seat. The RMB 900 million is tied to construction progress, with RMB 300 million each by end-November 2026, end-June 2027, and end-December 2027. Phase I targets initial line connection in Q4 2027.
In October 2025, Silan Micro announced the Xiamen 12-inch high-end analog IC line, with RMB 20 billion total investment in two phases, targeting automotive, large computing servers, robots, wind/solar storage, industrial, and communications. In H1 2026, its IC business revenue reached RMB 2.976 billion, up about 16% year-over-year, with growth in IPM modules, MEMS sensors, 32-bit MCUs, ACDC, DCDC, fast charging, and automotive-grade analog circuits. Server products include DrMOS, eFuse, and multiple controllers, some in customer testing or mass production.
Silan Micro's heavy-asset investment extends beyond this line. In January, its Xiamen 8-inch SiC line came online, with RMB 12 billion total investment in two phases, ultimately targeting 720,000 wafers/year (60,000/month) of 8-inch SiC for new energy vehicles, photovoltaics, energy storage, charging piles, large appliances, and AI server power. The two Xiamen projects total RMB 32 billion, as Silan Micro bets on both SiC power semiconductors and 12-inch high-end analog.
Silan Micro is not the only recent Huaxin Dingxin 12-inch investment. In September, Hua Hong Grace announced its Wuxi Phase III 12-inch specialty process line with 55,000 wafers/month planned capacity, with Huaxin Dingxin investing $625.5 million for 15%. One is foundry, the other IDM, both pointing to 12-inch specialty process manufacturing. Domestic high-end analog and power management localization remains low, and automotive and industrial sectors need local manufacturing. While analog, MOSFET, IGBT, and MCU don't need 3nm/2nm, rising volumes make 12-inch lines' cost and scale advantages increasingly clear.
Silan Micro will release Q3 2026 results on October 31. Its interim report showed a gap between net profit and non-GAAP net profit: H1 recognized about RMB 230 million in fair value gains, with RMB 194 million after-tax net gains from Anlogic, Yuneng Technology, and Lianxun Instruments stakes, leaving non-GAAP net profit at RMB 271 million, up 0.67%. Q3 focus: whether non-GAAP profit improves, analog revenue growth continues, SiC and power device lines deliver first, and cash flow under peak capex. In H1 2026, investing cash flow was -RMB 4.038 billion versus -RMB 925 million a year earlier, with financing cash flow at RMB 2.895 billion.
ICgoodFind Summary: Big Fund III's RMB 900 million completes the last piece of Silan Jihua Phase I capital, moving the RMB 20 billion 12-inch high-end analog project into real execution. Silan Micro is simultaneously betting on a RMB 12 billion 8-inch SiC line and a RMB 20 billion 12-inch analog line in Xiamen, with capex at a peak. State capital solves the funding side; next comes whether the new 45,000 wafers/month capacity can be filled by automotive, server, and robot orders.
