Yitang Semiconductor's IPO on the Shanghai Stock Exchange's Sci-Tech Board has been registered effective, with plans to raise RMB3bn to be invested in equipment R&D and manufacturing, among other areas.

On March 13, the website of the Shanghai Stock Exchange revealed that the IPO review status of Beijing Yitang Semiconductor Technology Co., Ltd. (Yitang Semiconductor) on the science and technology board had been updated to "registration effective". Yitang Semiconductor's IPO application on the science and technology board was accepted for review on June 25, 2021, and after two rounds of inquiries, it passed the review on August 30, 2021, and submitted for registration on September 17. According to the prospectus (registration draft) disclosed in September 2021, Yitang Semiconductor is a semiconductor equipment company headquartered in China, with R&D and manufacturing bases in China, the United States, and Germany, and operates globally. It mainly develops, produces, and sells wafer processing equipment needed in the process of integrated circuit manufacturing and provides integrated circuit manufacturing equipment and supporting process solutions, including dry etching equipment, rapid thermal processing equipment, and dry etching equipment, to global integrated circuit manufacturers. The Company's products have been adopted by several leading global memory chip manufacturers, logic circuit manufacturers, and other integrated circuit manufacturers. Its customers fully cover the top ten global chip manufacturers and domestic leading chip manufacturers. As of June 30, 2021, the Company's products have been installed more than 3,800 times worldwide and are in a leading position in the corresponding sub-segment. According to Gartner statistics, the Company's dry etching equipment and rapid thermal processing equipment market share ranked first and second in the world in 2020, respectively. Yitang Semiconductor plans to raise RMB3 billion through IPO, which will be invested in the Yitang Semiconductor Integrated Circuit Equipment R&D and Manufacturing Service Center Project, the Yitang Semiconductor High-end Integrated Circuit Equipment R&D Project, and the Development and Technology Reserves Fund. Among them, the Yitang Semiconductor Integrated Circuit Equipment R&D and Manufacturing Service Center Project has a total investment of RMB963 million, of which RMB800 million will be used for the project. After the project is completed, the Company's Beijing manufacturing base will see a significant increase in the production capacity of dry etching equipment, rapid thermal processing equipment, and dry etching equipment; and will also add multiple R&D laboratories and training rooms to enhance the Company's integrated circuit equipment R&D, manufacturing, and service capabilities; the construction period will be about 18 months. Regarding the future development strategy, Yitang Semiconductor stated in the prospectus that it is committed to becoming an international leader in integrated circuit equipment companies and will continue to provide more advanced processing capabilities and higher production efficiency for the integrated circuit manufacturing process. In the future development, the Company will continue to implement the strategic planning of international operations, focus on R&D investment, expand products and customers, optimize the supply chain, focus on talent cultivation and incentives, improve the Company's intellectual property protection, and implement external mergers and acquisitions.