China's top semiconductor talents are reporting frequent successes.

Recently, the prominent semiconductor equipment manufacturer 'Wuxi Shangji Semiconductor' successfully secured hundreds of millions of yuan in Series C financing. This round was backed by a strong lineup of investors, including CRRC Guochuang, Wuxi Strategic Emerging Industries Investment Fund, Nanjing Jushi, Suqian Industrial Investment, and others.

High-end semiconductor thin film deposition equipment enterprise 'Yanwei Semiconductor' announced the completion of the first batch of hundreds of millions of yuan in Series A financing, led by Chunhua Capital, a cooperative sub-fund of the Shangxianhu Mother Fund.

High-performance electric drive company 'Xingqu Technology' obtained Series B financing, jointly invested by leading enterprises in the semiconductor field, Xinlian Integration, and market-oriented industrial capital...

Renowned for its semiconductor equipment and components, Wuxi's expansive 'chip' landscape is gradually being illuminated. This graceful city in the south of the Yangtze River has now become a significant and prominent coordinate on the global semiconductor map, thanks to its unique 'full-chain collaboration' ecosystem and the robust strength of its 'manufacturing + packaging and testing' dual-core drive.

Starting from the shores of Taihu Lake, an invisible 'chip silk road' spans regions and connects all facets of the global semiconductor industry. In this century-old industry, Wuxi stands out, unlocking a 'Eastern Path' for China's semiconductor industry, characterized by differentiation and resilience.

01 Dynamic Flow: The Strong Pulse of Wuxi's 'Chip' Heartbeat

The developmental pulse of Wuxi's semiconductor industry resonates closely with the robust heartbeat of China's chip industry.

As a domestic leader in wafer foundry enterprises, Hua Hong Semiconductors invested heavily in Wuxi in 2017 to establish the first integrated circuit R&D and manufacturing base outside of Shanghai for the Hua Hong Group. This 'giant ship' with a total investment of up to $10 billion not only established a leading 12-inch specialty process production line for mainland China but is also the first ultra-large-scale integrated circuit manufacturing project invested by the National Integrated Circuit Industry Investment Fund in Wuxi, continuously receiving firm support from the National Large Fund and local capital.

In December 2024, the 12-inch production line of the Hua Hong Wuxi Base (Phase II) will be completed and put into production, focusing on automotive-grade chip manufacturing and establishing a 12-inch specialty process production line with a monthly capacity of 83,000 wafers. This latest move underscores that the Wuxi base is a crucial capacity layout for Hua Hong Semiconductors globally, forming a complementary pattern with the Shanghai base of '8-inch mature process + 12-inch advanced specialty.' The steady ramp-up of its capacity and continuous breakthroughs in yield not only offer investors substantial returns but also serve as the loudest testament to Wuxi's manufacturing prowess.

Even before the country's large-scale layout of the integrated circuit industry, Wuxi, with its keen sense of opportunity, introduced major projects such as Huajing and CR Micro in the 1990s, laying a solid foundation for the semiconductor industry with forward-looking layouts and firm strategies.

A decade of steadfast commitment has borne fruit. Wuxi now boasts a star-studded listed company group, centered on CR Microelectronics (IDM leader), Changdian Technology (top three in global packaging and testing), Xinjie Energy (power device leader), Lixin Micro (power management chip leader), and other listed companies. Wuxi has cultivated more than ten leading semiconductor enterprises, which have built a robust capital matrix and injected unlimited vitality and possibilities into the market.

Overview of Listed Semiconductor Companies in Wuxi

There is no absolute dominant player in a single segment here, but there is a complete closed loop from design, specialty manufacturing, top global packaging and testing, to the rise of equipment and materials. Here, we do not pursue the extreme sprint towards the forefront of logic processes but have built unshakeable global barriers in specialty areas such as analog and power semiconductors and advanced packaging.

Today, as the only prefecture-level city in China with a full integrated circuit industry chain, Wuxi accounted for 8%, 12%, and 18% of the national share in the design, manufacturing, and packaging and testing industries in 2024, respectively. It also boasts important platforms such as the National Integrated Circuit Characteristic Process and Packaging Testing Innovation Center. In 2024, Wuxi officially launched the country's first photonic chip pilot line and released an independent FPGA chip with hundreds of millions of gates.

With a steady stream of fresh water, Wuxi precisely nourishes the seeds of innovation, creating an unparalleled 'Wuxi Miracle' in the global market.

02 Coordinated Efforts: The Winning Formula of Wuxi's 'Chip' Cluster

Over 600 enterprises, with an industrial scale exceeding 250 billion yuan, ranking second in the country and first in the province in terms of comprehensive strength.

This is just the tip of the iceberg of Wuxi's semiconductor industry in 2024. Zuo Baochun, Deputy Director of the Wuxi Municipal Bureau of Industry and Information Technology, mentioned that in 2024, there were 273 above-scale enterprises in Wuxi's integrated circuit industry, with an above-scale output value of 251.1 billion yuan, an increase of 9.3%. The revenue ranking of the 'core three industries' in the country returned from '531' to '431'. In the ranking of the top 100 cities in terms of comprehensive competitiveness in the global integrated circuit industry, Wuxi rose one place to 15th globally and remained stable at 3rd in the country (after Shanghai and Beijing).

History has chosen Wuxi, and the city has lived up to expectations, delivering an impressive answer to the world. But why exactly is it Wuxi that has blazed a trail on the 'chip silk road'?

First, Wuxi is well aware that industrial capital is the lever to move the semiconductor giant. By constructing a fund matrix, it precisely empowers the industry. The Wuxi municipal and district governments have jointly built a government-guided fund system covering the entire semiconductor industry chain in collaboration with social capital.

Jiangsu Integrated Circuit (Wuxi) Industry Special Mother Fund

Scale: 5 billion yuan

Funding Structure: Funded by the Jiangsu Strategic Emerging Industries Mother Fund with 25% (1.25 billion yuan), and matched by Wuxi City with 75% (3.75 billion yuan).

Investment Direction: Focuses on semiconductor equipment, materials, components, third-generation semiconductors, chip design, and other fields, supporting core technology enterprises throughout the upstream, midstream, and downstream of the industry chain.

Wuxi High-tech Zone New Kinetic Energy Industry Development Fund

Scale: 5 billion yuan

Operation and Management: Initiated by the Wuxi High-tech Zone (Xinwu District) and operated by Wuxi New District Technology, Finance, and Venture Capital Group Co., Ltd.

Investment Direction: Primarily supports strategic emerging industries such as integrated circuits and the Internet of Things. It has cumulatively invested over 1.5 billion yuan, driving 5 billion yuan in social investment.

Both funds take promoting the development of Wuxi's semiconductor industry as their core objective. Through the 'sub-fund + direct investment' model, they build a robust capital support network from early-stage incubation to maturity support, from angel rounds to growth stages, attracting social capital participation and precisely nourishing key links, thereby helping to create an integrated circuit industry cluster with international influence.

Second, as a key link in supplementing and strengthening the industry chain, Wuxi also fully leverages the advantages of strategic mergers and acquisitions, showcasing its boldness in domestic and foreign M&A markets.

A classic case is the acquisition of Dutch Ampleon, the world's second-largest RF semiconductor enterprise for mobile base stations, by Wuxi Microchip. Wuxi Microchip is a semiconductor company jointly invested and established by Taiji Industries, Wuxi Industrial Group, Wuxi Weifu High-Technology, Wuxi Spark, and Chuxi Semiconductor, with Wuxi Industrial Group holding a 43.13% stake.

This acquisition is the largest semiconductor M&A transaction in China since 2025. Previously, Wuxi Microchip also acquired the German LFoundry wafer fab for $113 million. This series of acquisitions has made Wuxi renowned in the global power semiconductor field.

It is undeniable that the flourishing of Wuxi's semiconductor industry is inseparable from the carefully constructed industrial policy ecosystem.

Wuxi positions the integrated circuit industry as a landmark industry and future industry, incorporating it into the core of the city's development strategy. It has issued systematic documents such as the 'Policy Opinions on Accelerating the High-Quality Development of the Integrated Circuit Industry in Wuxi,' 'Several Policies on Accelerating the Construction of a Landmark Integrated Circuit Industry with International Influence,' and the 'Action Plan for Building an Industrial Science and Technology Innovation Center with Global Influence,' maintaining the continuity and stability of policies.

Not long ago, the Jiangsu Strategic Emerging Industries Mother Fund and the Jiangsu Wuxi Integrated Circuit Industry Special Mother Fund (Limited Partnership) issued a selection announcement for the management institutions of industry sub-funds, publicly selecting management institutions for a 5 billion yuan industry-specific mother fund. This fund will invest in the integrated circuit industry among the 13 emerging industrial fields specified in Jiangsu's '1650' industrial system, '51010' strategic emerging industrial clusters, and the 'Action Plan for Building an Industrial Science and Technology Innovation Center with Global Influence,' further promoting the strengthening, supplementing, and extending of the industry chain.

Simultaneously, the Wuxi government provides all-round and robust financial support to landing enterprises, ranging from R&D investment subsidies, tape-out cost support, major equipment purchase rewards, tax incentives, to listing rewards, effectively reducing corporate R&D and operating costs with real money.

The strong industrial atmosphere and pragmatic and innovative urban genes provide fertile soil for technological breakthroughs in Wuxi's semiconductor industry. Regarding the creation of a talent highland, Wuxi is equally dynamic. Starting from 2023, Wuxi has deeply implemented the 'Taihu Talent Plan' and its upgraded version, providing up to 100 million yuan of support for top integrated circuit talents and teams, complemented by generous policies such as housing and children's education. This has created a strong talent siphon effect, attracting and retaining a large number of high-end talents from home and abroad.

As a core member of China's 'first echelon' of the integrated circuit industry, Wuxi's manufacturing and packaging and testing capacities have long guaranteed the security of the national integrated circuit supply chain. The Wuxi model, characterized by full-chain development, specialty processes, and the deep integration of capital and policy, provides valuable insights for other regions in China to develop the semiconductor industry.

03 Conclusion

The misty waves of Taihu Lake once nurtured the millennium-old prosperity of the land of fish and rice. Nowadays, the wisdom of Taihu Lake water is being injected into precise chips, driving the powerful pulse of the intelligent era. Wuxi's 'chip' map not only clearly marks the industrial coordinates of design, manufacturing, packaging and testing, and materials but also profoundly interprets the 'Wuxi Code' of government foresight, capital empowerment, ecological collaboration, and talent gathering.

The rise of Wuxi's semiconductor industry cluster is a vivid microcosm of China's path towards technological self-reliance and self-strengthening. It proves to the world that with strategic resolve as the anchor and an innovative ecosystem as the sail, China's 'chip' can not only take root and grow on the banks of Taihu Lake but also sail far and wide, extending the industrial chain and innovation network nationwide and globally. Amidst the tumultuous waves of global competition, it carves out an irreplaceable Eastern coordinate.

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