Tongfu Microelectronics Wins Approval for RMB 4.22 Billion Share Placement

Tongfu Microelectronics' planned 2026 private placement of A-shares has been approved by the Shenzhen Stock Exchange and registered with the China Securities Regulatory Commission. The production-related projects to be funded cover memory chips, automotive and other emerging applications, wafer-level packaging and testing, and high-performance computing and communications. Based on the company's earnings forecast range, its first-half 2026 net profit attributable to shareholders has already exceeded its full-year 2025 level. In 2025, Tongfu Microelectronics reported net profit attributable to shareholders of RMB 1.219 billion, up 79.86% year on year.

The company said that in the first half of 2026, the semiconductor industry maintained relatively rapid growth, driven by rising demand from AI computing infrastructure buildout, a buoyant memory market cycle, and accelerating domestic substitution. During the period, capacity utilization improved and revenue growth accelerated, with a notable increase in revenue from mid-to-high-end products. Overall profitability improved significantly thanks to stronger operational management and cost controls, while investment income from industrial holdings also contributed to first-half results.

Tongfu's operational improvement has been increasingly evident in recent years. In 2025, revenue reached RMB 27.921 billion, up 16.92% year on year, and net profit attributable to shareholders was RMB 1.219 billion, up 79.86%, with both revenue and profit hitting record highs. In the first quarter of 2026, revenue was RMB 7.482 billion, up 22.8% year on year; net profit attributable to shareholders was RMB 329 million, up 224.55%; and net profit excluding non-recurring items was RMB 172 million, up 64.78%.

On the business side, mid-to-high-end products have become a key growth driver. In 2025, the memory chip business grew rapidly on improved market conditions, the automotive electronics business expanded its customer base and application scope, and the company continued to advance its footprint in artificial intelligence, high-performance computing and wafer-level packaging. On the technology front, the company has stepped up investment in advanced packaging and high-value-added products. R&D spending reached RMB 1.592 billion in 2025, with development and product introductions progressing across FCBGA, memory, SiP and CPO. FCBGA has completed development of ultra-large-size, multi-chip co-packaging and extreme thermal management solutions and entered volume production, while memory technology has completed development of high-stack packaging structures. Capacity utilization has further improved as industry demand recovers and the share of mid-to-high-end products rises.

According to the prospectus for the 2026 private placement of A-shares, the company plans to raise no more than RMB 4.22 billion. The proceeds will focus on memory chips, automotive and other emerging applications, wafer-level packaging and testing, and high-performance computing and communications, primarily expanding capacity on the company's existing industrialization platforms. Tongfu has operated in automotive electronics packaging and testing for many years, having early on obtained quality management system certification aligned with mainstream global automotive standards, and now possesses packaging capability for high-end automotive electronic products meeting high-reliability grades such as AEC Grade 0.

The company currently offers 8-inch and 12-inch wafer-level packaging services, with technical capabilities covering Cu Pillar, solder bump, backside metallization and wafer-level chip-scale packaging. The project will expand core production lines for domestic high-end advanced packaging, with emphasis on strengthening capabilities in high-I/O packaging, high-heat-dissipation structures, high-density interconnect routing and multi-chip integration.