Naura Technology plans to acquire a 9.5% stake in Kingsemi, a move to enhance its semiconductor equipment capabilities amid U.S.-China tensions. The acquisition would allow Naura to control Kingsemi, a key player in photolithography coating. With projections indicating substantial revenue growth, Naura is reinforcing China’s push for localization in the semiconductor sector.

Naura Technology, a leading semiconductor equipment firm in China, is accelerating its strategy amid escalating U.S.-China tensions. The company intends to acquire a 9.5% stake in Kingsemi, a local manufacturer of photolithography coating equipment, for RMB 1.69 billion (approximately USD 232.8 million). Additionally, Naura plans to increase its investment in Kingsemi significantly over the next year to achieve control of the company.

This acquisition aligns with Naura’s goal of enhancing its capabilities. Third-largest shareholder, Shenyang AMT, is selling an 8.4% stake, with Naura reportedly participating in the auction. If successful, Naura’s total holding in Kingsemi would reach 17.9%, providing it substantial influence over the company’s operations.

Naura is currently the largest semiconductor equipment supplier in China, specializing in areas such as etching, thin-film deposition, and cleaning, boasting market shares of 30%, 25%, and over 2%, respectively. Kingsemi has a unique position as the only domestic supplier capable of mass-producing front-end coating equipment, which will augment Naura’s existing offerings.

While dominating global semiconductor giants remain pivotal, Naura has emerged as one of the top ten semiconductor equipment manufacturers internationally, ranking among leaders like ASML and Applied Materials. The company’s performance forecast for 2024 anticipates revenue between RMB 27.6 billion and RMB 31.78 billion, signifying a potential year-on-year growth of up to 43.93%.

As China strives for greater self-sufficiency amid U.S. restrictions, domestic players such as SMIC, Hua Hong, and YMTC have begun to adopt equipment from local manufacturers, including AMEC and ACM Research, particularly for advanced nodes of 28nm and above.

Naura Technology’s acquisition of a stake in Kingsemi exemplifies the strategic integration within China’s semiconductor industry as it aims to enhance local capabilities amid international pressures. By potentially controlling Kingsemi, Naura not only fills gaps in its portfolio but also positions itself competitively among global semiconductor equipment suppliers. This development is indicative of a broader trend towards localization within the industry, as domestic firms increasingly rely on local equipment providers.

Original Source: www.trendforce.com

Related posts:

China’s Chipmaking Equipment Purchases to Decline in 2025, Consultancy Warns U.S. to Investigate Chinese Legacy Semiconductors: Implications for Taiwan Samsung-Baidu 2nm Chip Collaboration Faces Challenges Amid U.S.-China Tensions China Solidifies Position as Leading Destination for Transnational Investment