[Alpha Biz= Kim Jisun] Silicon Micro Technology, a Chinese semiconductor company headquartered in Hangzhou, has filed for an initial public offering (IPO) on the Hong Kong Stock Exchange. The company, known for its rapid rise following the acquisition of Korean power semiconductor firm Silicon Mitus, is targeting a valuation of at least 20 billion yuan (approx. USD 2.7 billion).
According to Chinese financial media including CLS.cn on July 22, the company submitted its listing application earlier this month.
Founded in 2019, Silicon Micro Technology accelerated its growth in 2020 after acquiring Silicon Mitus for 2.5 billion yuan (approx. KRW 480 billion or USD 350 million). The Korean company currently accounts for 96.1% of Silicon Micro’s equity, and its acquisition played a central role in the company’s expansion into the power semiconductor market.
Silicon Micro founder Ren Yuancheng, an engineering graduate from Zhejiang University who studied abroad in the U.S., previously served as General Manager of technology at Monolithic Power Systems’ China subsidiary. He developed a professional relationship with He Yeom, chairman of Silicon Mitus, during his time overseas. He Yeom currently serves as Vice Chairman and board director at Silicon Micro.
Following the acquisition, Silicon Micro attracted significant venture capital. In September 2020, the company received investment from Haibang Investment and Zijing International, raising its valuation to around 5 billion yuan. By November, it had closed a Series A round with 11 investors including Xiaomi, Hillhouse Capital, and CATL. In May 2022, China’s National Integrated Circuit Industry Investment Fund (Big Fund) Phase II also became a shareholder. After completing its Series B funding in August 2022, the company’s valuation surpassed 20 billion yuan.
According to its IPO filing, Silicon Micro posted cumulative revenue of over 4.9 billion yuan from 2022 to 2024. However, it also reported accumulated losses of 1.375 billion yuan during the same period.
The company’s core revenue driver is power management integrated circuits (PMICs), which accounted for over 90% of total sales. Overseas markets—including South Korea and Japan—represented 68.1% of its total revenue.
Despite its rapid growth, the company faces challenges. Increasing competition in global PMIC markets has compressed margins, and its expansion within China has led to a rise in lower-margin business segments.
Local media note that amid cyclical shifts in the semiconductor and consumer electronics sectors, it remains to be seen whether capital raised through the IPO will be sufficient to reverse recent earnings pressure.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
