Zhanxin Semiconductor Lists on ChiNext as Military-Grade Power IC Specialist Targets AI Growth

Jiangsu Zhanxin Semiconductor Technology Co., Ltd. has officially begun trading on China’s ChiNext board, marking a new stage of growth for the semiconductor company as it seeks to build on its position in military-grade power management integrated circuits (ICs) and expand into high-growth civilian markets.

The company, which listed on 7 August, has developed more than 700 proprietary products and has established relationships with China’s major military-industrial groups. Its technology portfolio covers power management, signal-chain products, advanced packaging and semiconductor testing, giving the company capabilities extending beyond conventional fabless chip design.

Zhanxin Semiconductor generated revenue of RMB 639 million (approximately US$94.8 million) in 2025, representing a 54.92% increase from the previous year. Net profit attributable to shareholders rose 139.23% to RMB 228 million (approximately US$33.8 million), while its gross margin reached 80.81%.

Through the listing, the company intends to raise approximately RMB 890 million (US$132.1 million). The proceeds will support research and industrialisation programmes for high-reliability power management and signal-chain ICs, alongside investments in its headquarters, R&D and testing infrastructure.

Focus on High-Reliability Power Management

Power management ICs are fundamental components in electronic systems, regulating voltage and current while providing functions such as power conversion and protection. Military applications impose particularly demanding requirements, including operation across extreme temperatures, resistance to interference, long service lives and stringent reliability standards.

Zhanxin has built its business around these requirements, developing technologies aimed at military equipment where component qualification and reliability are critical.

The company has developed a product portfolio spanning DC/DC converter ICs, linear regulators, load and current-limiting switches, drain modulation ICs, micro-modules and discrete devices.

One example is its XC6106 drain modulation chip, designed for radar transmit/receive modules. The device integrates negative-voltage protection and supports both continuous-wave and modulated-wave operating modes. According to the company, it offers rise and fall times of less than 50 nanoseconds and peak output current of up to 7A.

Integrated Design, Packaging and Testing Capabilities

A key differentiator for Zhanxin is its approach to controlling multiple stages of the semiconductor development process.

Rather than relying entirely on external partners for packaging and testing, the company has developed capabilities spanning high-reliability chip design, panel-level fan-out packaging and semiconductor testing.

Its packaging portfolio includes 3D stacked and panel-level fan-out technologies. The company also develops micro-module products that combine active semiconductor devices with passive components to provide functions such as isolated and non-isolated DC/DC conversion, logic control and signal modulation.

Zhanxin says these integrated designs can reduce product volume compared with conventional discrete solutions while improving efficiency.

The company has also established an in-house military-grade testing laboratory accredited by the China National Accreditation Service for Conformity Assessment (CNAS). Its testing processes are aligned with relevant Chinese military standards, supporting internal qualification and screening activities.

Established Position in China's Military Semiconductor Supply Chain

Zhanxin has developed relationships with China's major military-industrial organisations and their associated research institutes. Its customer base has expanded significantly in recent years, reaching more than 1,100 customers in 2025 compared with approximately 650 in 2022.

Military semiconductor programmes can also create relatively high barriers to supplier changes because replacing an established component often requires extensive environmental and reliability testing before a new device can be qualified.

This can create long-term customer relationships for suppliers that successfully complete qualification and secure design wins.

Financial Performance Supports Expansion

The company's financial performance has strengthened alongside its expansion.

Revenue increased from approximately RMB 466 million in 2023 to RMB 639 million in 2025, while non-GAAP net profit increased from RMB 168 million to RMB 218 million over the same period. Net margins remained above 30%, according to the company's disclosed figures.

Zhanxin has also increased investment in research and development. Cumulative R&D expenditure between 2023 and 2025 exceeded RMB 260 million, with annualised growth of 28.44%.

R&D employees account for close to 40% of the workforce, with more than 97% holding bachelor's degrees or higher and more than 45% holding master's degrees or above.

By the end of 2025, Zhanxin held 51 authorised invention patents, five utility model patents and 56 integrated-circuit layout design rights, supported by 15 core technologies.

From Military Electronics to AI Infrastructure

While military electronics remains central to Zhanxin's business, the company is increasingly looking to apply its high-reliability power technologies to civilian markets.

AI computing has emerged as one of its targeted growth areas.

The rapid expansion of AI servers and data centres is increasing demand for power-management solutions capable of handling higher power densities while maintaining conversion efficiency and system stability.

Zhanxin has already developed a series of computing-power supply products, with samples submitted for evaluation by a computing-board manufacturer. The company is also developing products for high-end electric-drive applications.

This strategy could create a second growth engine, allowing Zhanxin to transfer technologies developed for demanding military environments into commercial applications where performance, efficiency and reliability are increasingly important.

IPO Provides Capital for Next Stage of Growth

The RMB 890 million fundraising is expected to strengthen Zhanxin's ability to expand its technology portfolio and production capabilities.

Planned investments include the development and industrialisation of high-reliability power-management and signal-chain ICs, construction of a headquarters and R&D centre, and expansion of testing infrastructure.

The company's broader strategy is to maintain its military semiconductor business as its core foundation while using its technology platform to capture opportunities in AI computing, high-end electric drives and other emerging applications.

Its ChiNext listing therefore represents more than a capital-market milestone. It provides Zhanxin with additional resources to develop proprietary semiconductor technologies while seeking to expand from a specialised military supplier into a broader high-reliability semiconductor player.

As AI infrastructure, electrification and advanced computing continue to increase demand for efficient power-management solutions, Zhanxin will be looking to translate its established expertise in high-voltage, high-current and high-reliability applications into new commercial markets.