ZhongWei Semiconductor Plans 160 Million Yuan Capital Increase in Zhuhai Boya; Automotive-Grade Chip Shipments Up 73% with Profits Doubled

Yangtze River Business News ● Yangtze River Business Reporter Jiang Chuya

Advanced Micro-Fabrication Equipment Inc. (688380.SH) continues to optimize its chip industry layout.

On March 22, Advanced Micro-Fabrication announced plans to invest 160 million yuan to increase its stake in Zhuhai Boya, acquiring a 20% share, thereby entering the NOR Flash storage market, creating synergy with its main business, and accelerating the implementation of the “MCU+” one-stop solution strategy.

As a leading domestic MCU company, Advanced Micro-Fabrication is entering a period of rapid growth in 2025. The company’s annual report shows revenue of 1.122 billion yuan, up 23.09% year-over-year; net profit attributable to shareholders was 284 million yuan, a 107.68% increase; non-recurring net profit also grew over 85%. Meanwhile, the company announced a dividend of 3 yuan per 10 shares, rewarding shareholders with real cash.

Automotive-grade chips drive high performance growth

In 2025, Advanced Micro-Fabrication delivered impressive results, with annual revenue of 1.122 billion yuan, up 23.09%; net profit attributable to shareholders of 284 million yuan, a 107.68% increase; and non-recurring net profit of 169 million yuan, up 85.84%. The quarterly performance was even more remarkable, with Q4 revenue reaching 349 million yuan, up 33.1%; net profit attributable to shareholders of 132 million yuan, a 417.3% surge, with growth momentum continuing.

The core drivers of the company’s high performance are breakthroughs in high-end products and structural optimization. During the reporting period, the shipment volume of automotive-grade chips increased by 73% year-over-year, with over 6.5 million units shipped, steadily increasing penetration in vehicle control and intelligent cockpit scenarios; industrial control chips also saw growth, opening additional opportunities in smart manufacturing and automation. The product mix continued to upgrade, with 32-bit MCU sales accounting for 36%, up from 32%; overall gross profit margin increased from 30% to 34%. The higher proportion of high-value-added products directly improved profitability. Additionally, the fair value of the company’s holdings in Electronics Technology Chips increased significantly, further boosting current profits.

The company’s solid financial fundamentals and risk resistance continue to strengthen. As of the end of 2025, total assets reached 3.679 billion yuan, net assets attributable to shareholders were 3.177 billion yuan, and net cash flow from operating activities was 260 million yuan, providing strong support for business expansion and shareholder returns. The company’s annual production and sales rate was 118.52%, with inventory decreasing by 16.20% year-over-year, demonstrating effective inventory digestion and a clear trend of robust production and sales.

Amid high growth, the company announced a high-dividend payout plan, proposing a cash dividend of 3 yuan per 10 shares (tax included), balancing shareholder returns with long-term development and reflecting confidence in future growth.

Additionally, Advanced Micro-Fabrication maintains high R&D investment to lay a solid foundation for technological iteration. In 2025, R&D expenses accounted for 11.07% of revenue, with over half of employees engaged in R&D. The company launched 48 R&D projects, nearly half in automotive electronics and industrial control, and introduced 22 new products throughout the year. The automotive-grade M4 chip completed tape-out and will be launched in 2026. R&D efforts on high-performance MCU resources are accelerating.

Plan to invest 160 million yuan in storage chips

On the evening of March 22, Advanced Micro-Fabrication announced an external investment plan, intending to invest 160 million yuan of its own funds to increase its stake in Zhuhai Boya, holding 20% after the transaction, officially expanding into the storage chip market and completing the “MCU+” industrial ecosystem.

Zhuhai Boya is a national specialized and innovative small giant enterprise, focusing on NOR Flash storage chip design. Its products are widely used in consumer electronics, industrial control, automotive electronics, and other fields, highly aligned with Advanced Micro-Fabrication’s downstream scenarios. Although the target company experienced continuous losses from 2023 to 2025, the storage market has rebounded since 2026, with rapid recovery in revenue and gross margin. The investment is expected to accelerate the company’s turnaround.

This investment complements Advanced Micro-Fabrication’s main business. The company, centered on MCU, released its first SPI NOR Flash product earlier this year to enter the storage market. MCUs and storage chips are often used together, and Zhuhai Boya’s over a decade of industry experience can quickly fill gaps in storage R&D, mass production, and customer resources. Both companies operate in a fabless model, and joint capacity expansion is expected to deepen cooperation with wafer fabs, strengthening supply chain influence.

Advanced Micro-Fabrication stated that increasing its stake in Zhuhai Boya is a key step in completing a one-stop solution, accelerating the implementation of the “MCU+” strategy, and expanding coverage of intelligent control scenarios.

Currently, the company’s projects for home appliance main control, automotive-grade chips, and IoT SoCs are progressing smoothly, with over 50% completion. As one of the few domestic platform MCU companies capable of full-stack digital and analog design, the company’s 8-bit MCU shipments rank among the top in China, maintaining stable cooperation with Huahong Hongli and GigaDevice, with significant capacity advantages. As automotive chips continue to grow, storage business collaborates effectively, and high-end product share increases, Advanced Micro-Fabrication is expected to maintain its leading position amid the wave of domestic substitution.

The company has set clear development goals for 2026: R&D budget to grow by no less than 40% year-over-year, with at least 50 new projects initiated; aiming for over 40% revenue share from industrial and automotive electronics; 50% or more of MCU sales to be 32-bit; and storage products to account for over 5%.