Recently, SG Micro Corp announced that it plans to use its own funds, self-raised funds, and/or proceeds from its H-share listing to acquire a 58.2878% stake in Shanghai Sensylink Microelectronics Technology Co., Ltd. (hereinafter referred to as "Sensylink ") for a total price of CNY 832 million. Upon completion of this transaction, SG Micro Corp will become the controlling shareholder of Sensylink and include it in its consolidated financial statements.
For Sensylink , which has net assets of CNY 348 million on its books, the valuation corresponding to this transaction represents an appreciation of more than four times over its book value. In this transaction, all 27 transferors, including multiple investment institutions that have accompanied Sensylink for many years, will fully exit.
A-Share Analog IC Leader
As the buyer in this deal, SG Micro Corp's position in the domestic analog chip sector is indisputable.
Founded in 2007, SG Micro Corp is one of China's leading comprehensive analog integrated circuit (IC) companies. As of today (October 27), its A-share market capitalization stands at CNY 57.872 billion.
According to a Frost & Sullivan report, based on 2025 revenue, the company ranks first among domestic Chinese analog IC enterprises. It also ranks first among domestic players in high-performance analog IC product categories such as amplifiers and comparators, ADC/DACs, AMOLED power chips, and LDOs.
From its inception, the company targeted various industrial applications as core customers, starting with operational amplifiers and LDOs and gradually expanding its product line. Moreover, from its very first product, SG Micro chose TSMC as its wafer foundry partner, ensuring high product quality and stable production.
Currently, SG Micro Corp offers over 7,200 available products across 38 major categories, comprehensively covering signal chains, power management, sensors, and memory domains.
Among these, signal chain and power management are the two pillars of the company's product matrix.
The company's signal chain ICs can electronically capture, amplify, condition, convert data, and drive output for various real-world signals with extremely high fidelity, meeting the requirements of precision driver-type applications demanding high accuracy, low noise, and low distortion. Power management ICs serve as core components of system energy architectures, responsible for regulating, converting, distributing, and protecting power flow within electronic systems.
In addition, the company provides sensors and EEPROM memories, widely used in automotive electronics, home appliances, smart wearables, and robotics.
Such a comprehensive product line stems not only from internal R&D but also from continuous M&A integration.
In 2017, SG Micro Corp became the first enterprise focused on high-performance analog chips listed on the Shenzhen Stock Exchange. This June, it successfully listed on the Hong Kong Stock Exchange, completing its "A+H" dual capital platform layout.
Since going public, SG Micro Corp has further expanded its business through acquisitions and investments: in 2018, it acquired Dalian Alpha for CNY 10.86 million to expand its local R&D team; subsequently invested in Yutai Semiconductor to broaden its power management products; in 2019, acquired 67.11% equity in Shanghai Pingsheng Microelectronics and 53.85% equity in Hangzhou Shengan Microelectronics to enter the RF field; in 2020, acquired 78.47% equity in Suzhou Qingxinfang; in 2021, completed the acquisition of 100% equity in Shanghai Fangtai and established a subsidiary in Jiangyin to engage in testing services.
Regarding performance, the company achieved operating revenue of CNY 2.595 billion in the first half of 2026, a year-on-year increase of 42.7%; net profit attributable to parent company shareholders was CNY 420 million, up 109.28% year-on-year. The announcement indicates that growth was mainly driven by the continuous launch of new products, an increased proportion of high-end products, and comprehensive customer coverage in markets such as optical modules.
Armed with impressive results and newly raised funds from its HK listing, SG Micro Corp continues to make moves in the M&A market. This time, its focus for reinforcement is on the sensor domain.
Sensor "Little Giant" Valued at CNY 1.4 Billion
Sensylink , the target of this acquisition, was founded in 2015 and registered in Minhang District, Shanghai. It is a semiconductor design company specializing in high-performance sensor chips and mixed-signal chips.
Since its establishment, the company has successfully developed and mass-produced over 500 products with completely independent intellectual property rights, covering numerous categories including temperature sensors, humidity/temperature sensors, digital interface chips, and DAC chips. These are widely applied in industries such as industrial automation, networking and computing, healthcare, and smart wearables.
The CT7117 is a milestone product for Sensylink in the field of miniaturized high-precision temperature sensing, designed specifically for wearable devices requiring extreme space efficiency and accuracy.
Within the critical physiological temperature range of 20°C to 50°C, the CT7117 achieves measurement accuracy as high as ±0.1°C (maximum), meeting the stringent data accuracy requirements of advanced applications such as continuous body temperature monitoring and women's health management. Meanwhile, its chip size is only 0.73mm × 0.73mm, making it one of the smallest temperature sensors on the market at comparable precision levels. Additionally, the chip supports operating voltages from 1.4V to 5.5V, enabling efficient communication with next-generation low-power wearable platforms.
Its upgraded temperature sensor chip, the CT7337, further breaks through key parameters: achieving maximum accuracy of ±0.08°C, supporting lower 1.2V input/output levels, and adding support for the I3C interface, realizing faster, more energy-efficient communication and simplified system integration.
In March this year, Sensylink announced a collaboration with Qualcomm Technologies to implement miniaturized high-precision temperature sensing on the Snapdragon Wear™ Elite platform. This represents not just a hardware upgrade but signifies that Sensylink's products are evolving from passive perception to proactive, context-aware intelligent services.
Financially, Sensylink's performance shows an upward trend. In fiscal year 2025, the company recorded operating revenue of CNY 240 million and net profit of CNY 7.2037 million. In the first half of 2026, revenue reached CNY 150 million, with net profit increasing to CNY 14.4987 million. As of June 30, 2026, the company's total assets were CNY 389 million, and net assets were CNY 348 million.
With competitive technical indicators, precise ecosystem positioning, and performance in an explosive growth phase, Sensylink is undoubtedly an attractive target for SG Micro Corp, which urgently needs to reinforce its capabilities in the sensor sector.
Lateral Completion and Industry Cycle Resonance
SG Micro Corp's control over Sensylink addresses a relatively weak segment in its own product catalog.
Analog chips feature complex categories and highly dispersed applications. International giants like Texas Instruments and Analog Devices have perfected their product matrices through decades of M&A. Sensylink's accumulation in temperature and humidity/temperature sensors perfectly complements SG Micro Corp's puzzle piece in the sensor sector, enabling it to provide downstream customers with more complete system-level solutions ranging from signal acquisition and processing to power management.
Now, the semiconductor industry is in a strong upswing cycle. According to WSTS statistics, global semiconductor sales in Q1 2026 were USD 299 billion, surging to USD 403 billion in Q2, representing a quarter-on-quarter growth of 35.1% and a year-on-year increase of 124%. Boosted by the explosion of AI computing power and the penetration of vehicle intelligence, comprehensive analog chip manufacturers with complete product matrices are poised to capture incremental benefits.
Two details in the announcement reveal that this acquisition is not simple.
First is the concentrated exit of 27 transferors and the arrangement of differentiated pricing. There are 27 counterparties in the transaction, including veteran venture capitals like Yunnan Nantian Yingfutaik, Hangzhou Hetang Innovation, and Suzhou Juyuan Zhenxin, as well as industrial capital such as Hainan Jingxinhai Venture Investment Co., Ltd. under Bright Power Semiconductor.
Different transferors entered at different times with varying costs, so the transaction set differentiated prices. After settlement, these transferors will exit entirely, and corresponding special shareholder rights will terminate. A group of financial investors thereby achieve their exit, marking Sensylink's transition from a VC-empowered chip design startup to an industry integration phase led by a listed company.
Second is the funding sources and integration pressure brought by goodwill. SG Micro Corp stated in the announcement that the transaction consideration can be paid via own funds, self-raised funds, or proceeds from the H-share listing. The announcement also warns that the acquisition will result in goodwill formation, followed by governance adjustments and business integration for Sensylink, with uncertainties remaining regarding the progress and final outcome of integration.
For SG Micro Corp, this CNY 832 million investment is not merely a financial deal but a crucial step toward completing its analog chip track layout and advancing towards becoming a comprehensive analog chip manufacturer.
Text | Zhouyu Editor | Yida