On October 29, HG Semiconductor Limited (06908.HK) issued a transaction announcement stating that its subsidiary Shenzhen Ganhonor Semiconductor Co., Ltd. and existing shareholders had signed a capital increase agreement with Chizhou Hengchuang Linghang Venture Investment Fund.
In the announcement, HG Semiconductor revealed that the capital injection would be used for the construction of a gallium nitride (GaN) project and disclosed progress on Ganhonor Semiconductor's capacity and revenue. Meanwhile, it was also observed that HG Semiconductor had previously invested in VisIC and GaN Systems, indicating its emphasis on the GaN business.
01 Ganhonor Semiconductor: Annual Revenue Near CNY 30 Million, Epitaxy and Device Production Lines Established
According to the agreement, Chizhou Hengchuang Linghang Venture Investment Fund will subscribe to new registered capital of Shenzhen Ganhonor Semiconductor for CNY 80 million to support the development of its GaN business and the module packaging production line project in Chizhou.
After the capital increase is completed, the registered capital of Shenzhen Ganhonor Semiconductor will increase to approximately USD 19.37 million. Chizhou Hengchuang Linghang Venture Investment Fund will hold approximately 6.9085%, while HG Semiconductor's stake will be diluted to approximately 68.2125%. However, Shenzhen Ganhonor Semiconductor will remain a subsidiary of HG Semiconductor, and its financial results will continue to be consolidated.
According to the announcement, Shenzhen Ganhonor Semiconductor is a limited liability company registered in China, with its main asset being the entire equity interest in Jiangsu Ganhonor Semiconductor. Jiangsu Ganhonor Semiconductor (formerly known as Xuzhou Jinshajiang Semiconductor Co., Ltd.) primarily engages in the R&D and manufacturing of GaN power chips and GaN RF epitaxial wafers, possessing professional wafer foundry production capabilities and R&D capabilities.
The proceeds from this capital increase, combined with CNY 20 million in self-raised funds by Shenzhen Ganhonor Semiconductor, will be jointly controlled by the investor and Shenzhen Ganhonor Semiconductor, and will only be used for the Chizhou module packaging production line project and other purposes approved in writing by the investor.
The announcement stated that this capital injection can introduce additional funds for the development of Shenzhen Ganhonor Semiconductor and Jiangsu Ganhonor Semiconductor, supporting the Chizhou module packaging production line project, helping to expand GaN product capacity, shorten supply chain delivery times, and optimize cost structures and long-term gross margin levels.
According to Ganhonor Semiconductor's official WeChat account, they have achieved core results in 6/8-inch silicon-based GaN epitaxy, high/low voltage E/D-mode power devices, fast charging, and industrial-grade power solutions. Prior to this, the company had already established epitaxy and device production capacities:
September 2023: Shenzhen Tai Gao Technology announced that it had reached a strategic cooperation agreement with Ganhonor Semiconductor. Ganhonor Semiconductor will fully support Tai Gao Technology's R&D of GaN RF and power chips and processes, and provide long-term epitaxial wafer services.
This "Framework Agreement" also mentioned that Ganhonor Semiconductor will commence the construction of a GaN power chip IDM project. Currently, the first pilot line covers stages such as 6-inch GaN epitaxial wafer production, device manufacturing, and application module development. In addition to independently developing power chips, Ganhonor Semiconductor also provides epitaxy and device foundry services.
November 2024: According to disclosures on the "Founder Environmental Protection" official website, Jiangsu Ganhonor Semiconductor Co., Ltd. organized a completion environmental protection acceptance meeting for the Xuzhou Jinshajiang Semiconductor Co., Ltd.'s annual packaging and testing of 80 million GaN electronic devices and GaN electronic device technology R&D project (Phase I), announcing that it had passed the completion environmental protection acceptance.
According to the announcement, the total estimated investment for this project is CNY 600 million, located in the Xuzhou Economic and Technological Development Zone. After operation, the project will package and test 80 million GaN semiconductor discrete devices annually. The project is constructed in phases; Phase I mainly involves the installation of epitaxy, lithography, etching, and other equipment, with an annual output of 40 million GaN electronic devices (this is the accepted phase). Construction began in May 2022, and it was completed and entered trial operation in March 2024.
HG Semiconductor also revealed in the announcement that they started their GaN business through Ganhonor Semiconductor in 2021 and established the Xuzhou factory. Subsequently, the Xuzhou facility has completed the procurement of core manufacturing equipment required for GaN epitaxial wafer and GaN device production, successfully commissioning the GaN epitaxial wafer production line and the GaN chip device production line in mid-2024 and late 2024, respectively.
In 2025, one of the two production lines at the Xuzhou facility successfully passed production testing and became an approved supplier of GaN epitaxial wafers, starting mass production and batch shipment of 6-inch GaN epitaxial wafers. To expand the capacity of the Xuzhou facility, HG Semiconductor purchased additional MOCVD equipment. These new devices enabled the development of an 8-inch epitaxial wafer production line at the Xuzhou factory, achieving a monthly capacity of 2,000 8-inch epitaxial wafers.
Currently, the Xuzhou facility operates as an IDM, maintaining full control over the entire chip manufacturing process, covering semiconductor material production, chip and device manufacturing, as well as module packaging and testing.
Financial data shows that Shenzhen Ganhonor Semiconductor's revenue was approximately CNY 1.36 million in 2024, approximately CNY 29.592 million in 2025, representing a year-on-year increase of approximately 2075.9%; revenue in the first half of 2026 was approximately CNY 5.659 million, accounting for about 19.1% of the full-year 2025 revenue.
However, Shenzhen Ganhonor Semiconductor recorded net losses after tax of approximately CNY 36.065 million and CNY 53.307 million in 2024 and 2025, respectively. The loss in the first half of 2026 was approximately CNY 21.812 million. As of June 30, 2026, its unaudited consolidated net asset value was approximately CNY 167.26 million.
Through this capital increase agreement, the investor imposed two major requirements on Ganhonor Semiconductor. First, Jiangsu Ganhonor Semiconductor must complete the relocation of all operations to Chizhou City, Anhui Province, including the registered address, production facilities and equipment, and office facilities, by June 30, 2027.
Second, the repurchase obligors (existing shareholders of Ganhonor Semiconductor) will grant a put option to Chizhou Hengchuang Linghang Venture Investment Fund and Taizhou Huirong Jianeng Youchuang Investment. If trigger events occur, such as Ganhonor Semiconductor failing to complete capital contributions on schedule or failing to submit a qualified listing application before December 31, 2031, the investors have the right to require the repurchase obligors to repurchase all or part of their equity interests in Shenzhen Ganhonor Semiconductor according to a formula.
02 HG Semiconductor: Previously Invested in VisIC and GaN Systems
According to the company's official website, HG Semiconductor's business scope covers LEDs, GaN components, fast-charging products, and other semiconductor-related products, forming an industry chain spanning materials, devices, and applications. In the first half of 2026, HG Semiconductor's revenue was CNY 51.623 million, with a loss of CNY 41.043 million, of which revenue from GaN and other semiconductor products was CNY 5.299 million.
In addition to the core platform of Ganhonor Semiconductor, HG Semiconductor has made multiple deployments in the GaN field:
As early as July 2021, HG Semiconductor signed a strategic cooperation agreement with Shenzhen ROMOSS Technology Co., Ltd. and Beijing Hongzhi Diantong Technology Co., Ltd. to jointly develop GaN power devices.
Under the division of labor, Ganhonor Semiconductor is responsible for providing semiconductor, GaN products, and chipset system solutions related to fast charging, offering technical support for the further application and promotion of ROMOSS's fast-charging products in the Chinese market.
In August 2021, FastSemi Holding Limited, a wholly-owned subsidiary of HG Semiconductor, completed its investment in VisIC. This company is a key player in the GaN power device sector, focusing its technology on high-voltage GaN power devices, primarily targeting applications such as electric vehicles.
HG Semiconductor stated that by leveraging VisIC's mature high-voltage product portfolio and combining it with its own domestically built GaN factories, it aims to enter the Chinese electric vehicle market.
In November 2021, FastSemi Holding Limited also invested in GaN Systems (which was fully acquired by Infineon in 2023) and agreed to make a strategic investment by subscribing to GaN Systems' convertible preferred shares.
It is reported that GaN Systems can provide HG Semiconductor with GaN device manufacturing qualifications and specialized technical support. Additionally, GaN Systems proposed that subsidiaries of HG Semiconductor become foundry partners for GaN Systems and enter into license agreements allowing HG Semiconductor to use certain GaN technologies of GaN Systems to manufacture semiconductor devices.
In its 2026 interim report, HG Semiconductor stated that it will continue to strengthen efforts to perfect the third-generation semiconductor GaN industry chain, aiming to become a GaN full-industry-chain IDM enterprise integrating R&D, manufacturing, packaging, testing, and sales.