Kaiweite to Acquire Jingyi Semiconductor for 1.65 Billion RMB to Offset Losses
The listed chipmaker aims to diversify into consumer electronics and stabilize finances by acquiring a larger, profitable fabless peer.
Kaiweite (688693.SH) has announced a major asset restructuring plan to acquire 100% equity of Jingyi Semiconductor for 1.65 billion RMB. The move represents the company's first significant restructuring since its listing in 2023.
The transaction is structured as a combination of 901 million RMB in share issuance and 748 million RMB in cash payments. To support the deal, Kaiweite intends to raise up to 901 million RMB from specific investors as matching funds. According to reports from 21st Century Business Herald, the acquisition carries a high premium rate of 304.24%, which is expected to result in approximately 904 million RMB in goodwill before matching funds are accounted for.
Strategic Integration
Jingyi Semiconductor, a national-level "Little Giant" enterprise based in Chengdu, Sichuan, operates as a fabless power semiconductor company. While Kaiweite has traditionally focused on high-reliability industrial and communication sectors using a "power device + power IC" model, Jingyi specializes in power management chips and motor drives for the consumer market, including home appliances and electronics. The two firms previously maintained a strategic relationship where Kaiweite supplied power devices that Jingyi integrated into Intelligent Power Modules (IPM).
Financial Imperatives
This acquisition is a critical pivot for Kaiweite's balance sheet. The company has struggled with profitability, suffering losses for two consecutive years between 2024 and 2025 totaling approximately 188 million RMB. In contrast, Jingyi Semiconductor has demonstrated stronger market traction; its 2025 revenue reached 350 million RMB, surpassing Kaiweite's own 2025 revenue of 255 million RMB. By absorbing the profitable fabless firm, Kaiweite intends to improve its overall financial health and expand its market coverage.
Future Outlook
By integrating Jingyi, Kaiweite aims to evolve its business model into a more comprehensive "power device + driver IC + system solution" offering. In an official announcement, Kaiweite stated that the core logic of the acquisition is rooted in the "deep synergy and complementarity of the industrial chain." Investors will now be watching how the company manages the significant goodwill associated with the high premium and whether the diversification into consumer electronics can successfully offset the losses seen in its industrial segments.