RMB 316 Million Acquisition of Xinmai Micro: The Logic Behind Acquiring a Low-Revenue Target
Recently, Amlogic announced its plan to acquire 100% equity of Xinmai Micro Semiconductor (Jiaxing) Co., Ltd. for a total consideration of RMB 316 million in cash. Public records show that Xinmai Micro Semiconductor was established in Zhuhai in August 2021 and relocated to Jiaxing, Zhejiang in January 2025 under its current name. Despite generating only RMB 680,000 in revenue in the first half of 2025, the company has developed rapidly since its establishment, completing three rounds of financing totaling hundreds of millions of yuan within the past year. Investors include renowned institutions such as Walden International, Junlian Capital, and Creation Ventures (CCV), highlighting capital’s recognition of its technological potential.
Xinmai Micro: 6 Chip Tape-outs + Cellular Communication Technology, Key Player in Localization Replacement
Xinmai Micro Semiconductor focuses on chip design for the Internet of Things (IoT), Internet of Vehicles (IoV), and smartphone markets, with products covering core areas such as Modem, T-BOX, and C-V2X. To date, it has completed tape-outs for six chip models, with one chip already generating revenue from customers in IoT modules, smart student cards, and mobile intelligent terminal scenarios. At the core technology level, Xinmai Micro leverages high-integration SOC chip design as its advantage, with product performance and cost-effectiveness comparable to international manufacturers. This not only lowers the application threshold for customers but also establishes the company as an important force in the localization of domestic cellular communication chips through its self-developed wireless connection technology, which serves as the core value anchor for Amlogic’s acquisition.
Technology Integration Breaking Through Multiple Scenarios: From Smart Industry to Automotive, Building Core AIoT Capabilities
Amlogic clearly positions this acquisition as “a crucial step in completing its technology stack and expanding application scenarios.” By integrating Xinmai Micro’s technology assets and R&D team, the company will further expand its cellular communication technology capabilities, strengthen its Wi-Fi communication advantages, and ultimately build a multi-dimensional communication technology stack of “cellular communication + optical communication + Wi-Fi,” forming a pan-AIoT solution centered on “edge intelligence + computing power + communication.”
In smart industry scenarios, this integration has already demonstrated practical value. For example, for precision equipment such as the Машина для складання зупинки обертання, Amlogic’s edge SoC chip can collect real-time parameters such as rotation torque and stop clearance, while Xinmai Micro’s cellular module enables high-speed data transmission to the cloud, controlling assembly defect rates below 0.1%. In the automotive field, the technological integration will help Amlogic develop an integrated “smart driving and connectivity” SoC solution for intelligent cockpits and assisted driving, targeting international leading standards.
Amlogic itself is a global leader in intelligent chips, with a market share of nearly 50% in smart set-top box chips. Founded in Silicon Valley, USA in 2003, it was among the first batch of listed companies on China’s STAR Market. The company focuses on SoC chip R&D and design, with five product lines covering smart set-top boxes, smart TVs, AI audio-visual terminals, Wi-Fi connectivity, and automotive electronics. Its core technologies include full-format video decoding and ultra-high-definition image processing, with flagship products such as the S-series set-top box chips supporting 8K decoding, widely used in terminals of global top-tier customers such as Xiaomi, Google, and Amazon.
In recent years, while consolidating its traditional advantageous fields, Amlogic has continuously broken into emerging markets such as AIoT, smart home, and in-vehicle entertainment. Through this acquisition, the company will leverage its channel advantages with over 250 operators worldwide to deeply integrate wide-area network communication technology with edge SoC technology, further expanding into wide-area AIoT fields such as smart cities, smart industry and agriculture, and public security.
Financially, Amlogic’s performance provides solid support for strategic expansion. According to its financial report disclosed in mid-August 2025, the company achieved RMB 3.33 billion in revenue in the first half of the year, a year-on-year increase of 10.42%, and RMB 497 million in net profit attributable to shareholders, a year-on-year increase of 37.12%. In the second quarter of 2025, revenue reached RMB 1.801 billion with shipments approaching 50 million units, both setting new single-quarter records.
