Build a Science and Technology Innovation Board! The world's fifth largest chip design service provider wants to go public, supported by SMIC International

As is well known, semiconductor companies are piling up to sprint towards A-shares!
Recently, Canxin Semiconductor (Shanghai) Co., Ltd. (referred to as Canxin Co., Ltd.) submitted a prospectus to the Science and Technology Innovation Board and was accepted. Its sponsor is Haitong Securities.
Source: The official website of the Science and Technology Innovation Board
Canxin Co., Ltd. has a considerable background. The company is said to be the fifth largest chip design service enterprise in the world, ranking second in mainland China, and has a deep connection with SMIC International.
In this rush IPO, the company plans to raise 600 million yuan to invest in "network communication and computing chip customized solution platform", "Industrial Internet and smart city customized chip platform" and "high-performance analog IP construction platform".
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SMIC International Participation
Canxin Co., Ltd., the predecessor of Canxin Co., Ltd., was established in July 2008 with investment from Hong Kong Canxin, with a registered capital of 3 million US dollars. Among them, Hong Kong Canxin was established by Cayman Canxin, which was established in the Cayman Islands.
It was not until 2017 that the shareholders of Cayman Canxin reduced their holdings to the limited level of Canxin. Previously, Cayman Canxin conducted multiple rounds of financing activities, introducing multiple external investors such as SMIC, NVP, GOBI II, Windsong, IPV HK, among which SMIC is a controlling subsidiary of SMIC International.
After the dismantling of the overseas structure, all shares held by SMIC and SMIC in Cayman Canxin were transferred to SMIC Holdings and became the largest shareholder of Canxin Limited.
In August 2020, Canxin Co., Ltd. completed another round of capital increase, introducing institutions such as Hubei Xiaomi and Volcano Stone.
As of the latest prospectus, Canxin Shares has a total of 29 institutional shareholders and 3 natural person shareholders, without controlling shareholders or actual controllers. Among them, the total shareholding ratio of Zhuang Zhiqing, the largest shareholder, and his concerted actions is 19.82%; The shareholding ratio of SMIC Holdings decreased from 46.60% to 18.9761%, making it the second largest shareholder; In addition, Hubei Xiaomi and Yuanhe Puhua respectively hold 4.77% and 3.18% of the company's shares.
In fact, Canxin Corporation and SMIC International have more than just this connection. Currently, Zhao Haijun, the joint CEO of SMIC International, is also the chairman of Canxin Co., Ltd.
From the disclosed related party transactions of the company, from 2019 to January June 2022, the company mainly purchased wafers from SMIC International, with a cumulative procurement amount of over 1.8 billion yuan, accounting for over 80% of operating costs, and becoming the company's largest supplier.
For Canxin Co., Ltd., the company has accumulated a large amount of design experience based on different processes of SMIC International. While improving the success rate of customer chip casting, it has also achieved stable and sustained wafer foundry production capacity.
In fact, the strategic cooperation model between wafer fabs and specific design service companies is not uncommon, as is the case with TSMC and Creative Electronics, as well as TSMC and Zhiyuan Technology.
At present, some of Canxin's technology needs to be supported by the process nodes of SMIC International, and the gap between SMIC International and TSMC is self-evident. Take Creative Electronics, which is 34.84% owned by TSMC and currently operates in high-speed interface IP Serdes