On March 31, it was reported that Huada Jiutian disclosed a major asset restructuring plan, proposing to acquire 100% equity of Xinhe Semiconductor through a combination of share issuance and cash payment. Upon completion of the transaction, Xinhe Semiconductor will become a wholly-owned subsidiary of Huada Jiutian. The company’s shares will resume trading on the same day.
According to the plan, Huada Jiutian intends to issue shares and pay cash to 35 shareholders, including Zhuohe Information, to acquire Xinhe Semiconductor’s full equity, with a share issuance price of CNY 102.86 per share. Concurrently, the company plans to raise supporting funds through a private placement of shares to China Electronics Corporation Group (CEC) and China Electronics Financial Investment, also priced at CNY 102.86 per share.
Founded in 2010, Xinhe Semiconductor specializes in Electronic Design Automation (EDA) tool development. It possesses core technologies in signal integrity (SI), power integrity (PI), electromagnetic simulation, electrothermal analysis, and stress simulation. The company offers full-stack EDA solutions spanning chips, packaging, modules, PCBs, and complete systems, and supports Chiplet advanced packaging technology.
Impact on Core Business:
Complementing Key EDA Tools: The acquisition will fill gaps in critical EDA tools, enhancing Huada Jiutian’s comprehensive, end-to-end capabilities.
Aligning with Industry Trends: As the semiconductor sector shifts from chip-centric design to Design-Technology Co-Optimization (DTCO) and System-Technology Co-Optimization (STCO), Xinhe’s system-level simulation products—comparable to global leaders—will empower Huada Jiutian to deliver chip-to-system EDA solutions.
Resource Synergy: The transaction will integrate market, talent, and technological resources from both parties, strengthening the company’s competitive edge.
Huada Jiutian is currently the only domestic enterprise capable of providing full-flow EDA tools for analog circuit design, holding a leading position in China’s EDA market. Meanwhile, Xinhe Semiconductor’s multi-physics simulation and system-level analysis technologies have seen widespread adoption in 5G, smartphones, AI, and data centers. This merger is expected to accelerate the localization and self-sufficiency of China’s EDA toolchain while bolstering competitiveness against international giants.
