Good News on Listing | Frost & Sullivan Assists Suzhou Naxin Microelectronics Co., Ltd. in Successfully Going Public in Hong Kong (2676.HK)

Suzhou Naxin Microelectronics Co., Ltd. (hereinafter referred to as 'Naxin Micro') successfully went public on December 8, 2025. The company plans to issue 1,906.84 million H shares, of which 90% will be international offerings and 10% will be public offerings. The maximum issue price per share is HK$116.00.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of September 30, 2025), from January to September 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services to 47 (market share 72%), 62 (market share 69%), and 162 (market share 70%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has rich industry experience and communication experience with regulatory authorities, exchanges, investment and financing institutions, and various related institutions.

• Based on the revenue from analog chips in 2024, NCS Microelectronics ranks 14th among all analog chip companies in China's market (accounting for 0.9% of the market share), as well as 5th among Chinese analog chip companies.

• We have a wide range of product models exceeding 3,600, covering sensor chips, signal chain chips, power management chips. We hold a strong market position in product areas such as digital isolation chips and magnetic sensors.

• The company ranked first in the list of Chinese enterprises by automotive simulation chip revenue in 2024. Automotive-grade products have been adopted by many leading domestic new energy automakers and global Tier 1 customers, and are applied to all of the top ten new energy models sold in China in 2024.

• The company's core products outperform international competitors in key performance indicators, and in some cases even exceed them. This is reflected in the company's outstanding performance in product areas such as digital isolation chips, sensor signal conditioning ASIC chips, and magnetic current sensor chips.

• The company's quality management system has obtained key automotive regulatory certifications, including ISO 26262 certification that complies with ASIL-D level functional safety standards, and its products meet AEC-Q100 automotive grade standards.

An analog integrated circuit (or analog chip) is a type of integrated circuit specifically designed to capture, process, and transmit continuous analog signals, such as sound, temperature, and light. Analog signals use a series of continuously varying electromagnetic waves or voltage signals to represent information content.

Integrated circuits (or chips) can be divided into analog chips, microprocessors, logic chips, and memory. Microprocessors, logic chips, and memory can be collectively referred to as digital chips. Analog chips are an important component of integrated circuits, accounting for 15% of the overall integrated circuit market size based on sales revenue in 2024.

The upstream of the analog chip industry chain mainly includes wafer manufacturing, chip packaging and testing, as well as chip design tools, providing the necessary technical foundation and manufacturing conditions. The midstream is centered around analog chip design companies and solution providers. They rely on their innovative capabilities and professional rigor to complete circuit design and verification, balancing performance, power consumption, and cost during the design process. Downstream demand is scattered across automotive, industrial, communications, consumer electronics, and other fields. The diversity of downstream demand has prompted chip design companies to establish vast product libraries, meeting the needs of different customers through flexible product combinations.

Data source: Analysis by Frost & Sullivan

The analog chip industry mainly operates in two modes: IDM and fabless.

In IDM mode, enterprises design their own simulation chips and complete the manufacturing, packaging, and testing processes. This gives them stronger resource integration capabilities, allowing them to integrate design and production processes to develop new products. However, this also requires substantial financial support because manufacturing facilities require a large amount of capital investment.

In the Fabless model, companies focus on chip design and outsource manufacturing, packaging, and testing processes. As a result, they can significantly reduce production line investment, concentrate resources on research and development, and provide customized services according to customer needs, thereby responding more acutely to market demands.

Headquartered in Fabless, companies are exploring new models that focus not only on integrated circuit design but also possess their own fabrication platforms. This requires the wafer manufacturers they collaborate with to apply unique processes and specialized equipment, but the production lines themselves do not belong to the Fabless companies. This new model can better optimize design process collaboration, accelerate product iteration, and enhance market competitiveness without the need for significant capital investment.

According to their functions and product types, analog chips can be mainly divided into signal chain chips and power management chips: Signal chain chips are integrated circuits with the ability to receive, transmit, convert, amplify, and filter analog signals. Their product categories mainly include isolators, comparators, signal conversion, interfaces, amplifiers, timers, clocks, and others. Power management chips are integrated circuits used to manage the relationship between batteries and circuits, responsible for the conversion, distribution, detection, and monitoring of electrical energy. Their types mainly include linear voltage regulators, DC/DC switching voltage regulators, gate drivers, AC/DC converters and controllers, battery charging and management, and others.

In 2020, the market size of analog chips in China was RMB 1211 billion. By 2024, the market size in China reached RMB 1953 billion. From the perspective of segmented markets, driven by the increasing demand for efficient solutions due to the development of new energy vehicles, smart devices, and artificial intelligence (AI) infrastructure, the power management chip market increased from RMB 768 billion in 2020 to RMB 1246 billion in 2024, achieving a compound annual growth rate of 12.9%. This segment is expected to continue maintaining a strong momentum, expanding to RMB 2234 billion by 2029, with a compound annual growth rate of 12.1% from 2025 to 2029. Compared to power management chips, the growth of signal chain chips has slowed down slightly, mainly due to the saturation of demand in traditional strong downstream areas such as industrial applications, while rapidly developing fields such as new energy vehicles continue to drive higher demand for power management chips.

Data source: Analysis by Frost & Sullivan

In 2024, the market scale of China's analog chip industry reached 195.3 billion yuan, of which the IDM model accounted for 76.4%, approximately 149.2 billion yuan. In contrast, the fabless model occupies a smaller share, accounting for about 46.1 billion yuan or a market share of 23.6%. In the future, more companies tend to choose the lower-cost and more flexible fabless model. It is expected that by 2029, the market share of fabless companies will reach 27.4% or 91.5 billion yuan.

In 2024, local use of analog chips in China accounted for 92.4%, reaching a scale of RMB 180.4 billion; the export segment accounted for 7.6%, with a scale of RMB 14.8 billion. It is expected that China's analog chip exports will continue to increase in the future, with the export segment accounting for 11.8% by 2029, reaching a total scale of RMB 39.5 billion. In addition, in the local market, international manufacturers had a market share of 76.8% in 2024, while domestic manufacturers' market share was 23.2%. It is expected that by 2029, the market share of domestic manufacturers will reach 30.8%.

In the Chinese analog chip market, consumer electronics, as the largest downstream application area, accounted for 37% of the market share in 2024, with a market size reaching 722 billion yuan. The automotive electronics sector continues to grow in demand due to the development of new energy vehicles and advancements in autonomous driving technology. In 2024, the market size of analog chips in the automotive application sector reached 371 billion yuan, and it is expected that by 2029, the corresponding market size will expand to 858 billion yuan. Additionally, in the pan-energy sector, the development of intelligent manufacturing and new energy (such as solar power generation and energy storage), as well as the increasing demand for servers, are driving up the usage of analog chips. It is estimated that the market size in the pan-energy sector will increase from 507 billion yuan in 2024 to 1,038 billion yuan in 2029, with a compound annual growth rate of 14.5% from 2025 to 2029.

Data source: Analysis by Frost & Sullivan

●The downstream mainstream application market continues to expand and upgrade

The downstream applications of analog chips are extremely extensive, with a significant demand for analog chips in electronic-related products and industries. In the automotive field, analog chips help to precisely control power systems, process vehicle sensor signals, and optimize in-vehicle entertainment, thereby supporting efficient and safe vehicle operation and providing a comfortable experience. In consumer electronics, analog chips can accurately manage the power supply of devices such as mobile phones and tablets, optimize audio and video signals, and enhance the user's audio and video experience and battery life. In communication facilities, analog chips are responsible for signal modulation, demodulation, and amplification to ensure high-speed and stable transmission of network data. In medical devices, analog chips convert physiological signals into electronic signals and process them precisely, providing important support for the high precision and reliability of diagnostic and monitoring equipment. With the rapid development of artificial intelligence and the surge in data center computing demands, analog chips are playing an increasingly important role in key components such as servers and battery management systems. In servers, analog chips can accurately manage power supply to maintain the stable operation of CPU, GPU, and storage devices; in battery management, they can monitor parameters in real time to ensure the continuous operation of data centers, jointly providing hardware support for AI development. The continuous development in these fields and the upgrading of equipment have jointly created a broad market space and stable growth opportunities for analog chips.

●The development of emerging fields continues to unleash growth momentum

Emerging markets have further expanded the market space for analog chips. Humanoid robot sensor signal processing and EVTOL (Electric Vertical Takeoff and Landing) transmission systems also require signal chain chips to process the collected continuous analog signals. At the same time, motors that control the movement of robots and EVTOLs also require a large number of power management chips. In the future, with the development of robot and EVTOL technology, the analog chip market will continue to grow.

●National policy support to accelerate industrial development

In recent years, international trade conflicts have highlighted the importance of domestication and technological autonomy in China's analog chip industry. The development of domestic analog chips has been emphasized as a necessary condition to ensure national data security, maintain supply chain stability, and support economic growth. The Chinese government has introduced a series of policies to support the development of analog chips. For example: (1) In 2020, the 'Several Policies for Promoting the High-quality Development of Integrated Circuit and Software Industries in the New Era' was issued to promote the domestic R&D of integrated circuits (including analog chips); (2) The 'Guidelines for the Construction of the National Automotive-grade Chip Standard System' issued by the Ministry of Industry and Information Technology in 2024 aim to strengthen the standardization of automotive-grade chip technology upgrades, industrial innovation, and market competitiveness to support diversified industry applications. These policies propose multiple tax incentives to reduce the tax burden on analog chip companies, encourage them to increase R&D investment, and attract social capital participation. This will help analog chip companies obtain more financial support, which will be provided through national key research and development programs and major national science and technology projects. It will strengthen the construction of integrated circuits and software majors in universities, accelerate the construction of first-level disciplines in integrated circuits, and cultivate high-end talents with comprehensive practical abilities.

●China's self-sufficiency rate in analog chips continues to improve

Due to the relatively late development of China's analog chip supply chain, market supply still heavily relies on international suppliers. In 2024, the localization rate of analog chips in China is about as follows: 40%-50% in the consumer electronics sector, 20%-25% in the communications sector, 10%-15% in the industrial sector, and around 5% in the automotive sector. With the support of national policies and the joint efforts of the industrial chain, local enterprises have continuously overcome key technologies, their product portfolio has become increasingly rich, and their penetration rate in various market segments has been continuously increasing. It is expected that China's self-sufficiency rate in analog chips will rapidly improve in the coming years.

●R&D and innovation continuously improve the performance of analog chip products

The analog chip industry is advancing rapidly, and domestic enterprises attach great importance to research and development innovation. By establishing professional R&D teams and investing substantial resources, they conduct in-depth research on core technologies and continuously optimize product performance, such as improving accuracy, reducing power consumption, enhancing stability, etc., to meet the strict requirements of upstream markets for high-performance analog chips.

●M&A and expansion further concentrate market share in leading companies of the industry

The integration of high-quality assets, expansion of product lines, improvement of industrial layout, enhancement of market competitiveness, and the attraction of more customer resources will accelerate the concentration of market share towards leading enterprises. Therefore, the industry concentration is expected to further increase.

●Enhance the global competitiveness of local companies and promote the implementation of overseas strategies

With technological accumulation and product performance optimization, the global competitiveness of Chinese analog chip companies has significantly improved. Leading enterprises have emerged in the international market with cost-effectiveness advantages and localized services. These companies have promoted their products globally by establishing overseas subsidiaries and sales networks, steadily implementing their 'going global' strategy, and enhancing their international influence.

In 2024, the global automotive simulation chip market size was RMB 849 billion. It is expected that by 2029, the market size will expand to RMB 1553 billion. Driven by the booming rise of new energy vehicles and the rapid growth in demand for intelligent vehicles, the market size of automotive simulation chips in China reached RMB 371 billion in 2024. Driven by electrification and intelligence, the demand for simulation chips in automobiles continues to grow, covering multiple fields such as power systems, body domains, cockpits, autonomous driving, in-vehicle entertainment, body electronics, and lighting.

In the future, with the continuous development of China's automotive industry, the automotive electronic simulation chip industry in China will continue to develop rapidly, with growth rates expected to exceed the global average. It is estimated that the Chinese automotive simulation chip market will grow steadily, reaching a market size of 858 billion yuan by 2029, with a compound annual growth rate of 17.6%.

Due to the high technical threshold and stringent reliability requirements for automotive electronics, the automotive industry is currently one of the fields with the lowest domesticization rate of analog chips in China. In 2024, the domesticization rate of analog chips in China's automotive industry was only about 5%. However, as China's automotive industry continues to enhance its global position, improving the domesticization rate of chips has become a common goal in the industry. Coupled with the active layout of research and development by domestic analog chip companies, increased investment in R&D, and deep involvement in automotive electronics applications, it is expected that by 2029, the domesticization rate of analog chips in China's automotive industry is expected to rise to 20%.

Data source: Analysis by Frost & Sullivan

Ranking of Chinese market companies by analog chip product revenue (including signal chain chips and power management chips) for 2024: The company ranked 14th in the Chinese analog chip market, 6th among all fabless companies, and 5th among Chinese companies.

Data source: Analysis by Frost & Sullivan

In terms of revenue from automotive simulation chip products, in the Chinese market, in 2024, the company ranked 10th in the market, 2nd among all fabless companies, and 1st among Chinese companies.

Data source: Analysis by Frost & Sullivan

A sensor refers to an element that collects various signals from the physical world and outputs them to a backend system for further processing. Analog chips play a core role in sensors, as they are required to amplify, filter, and convert analog signals into digital signals, making them suitable for use in digital systems, thereby realizing the connection between the physical world and the digital world.

Sensors can be divided into two forms: chip-level sensors and module-level sensors. Chip-level sensors are those that integrate functional components and circuits onto a single chip, such as pressure sensors, magnetic sensors, temperature sensors, humidity sensors, optical sensors, acoustic sensors, etc. Module-level sensors are modules that integrate multiple chip-level sensors or other components together to form units with specific functions, such as cameras, radars, lidar, etc.

Chip-level sensors can perceive, detect, and respond to changes in the external environment or internal system conditions. They are capable of converting physical quantities, chemical quantities, biological quantities, and other measurement signals (such as temperature, pressure, light intensity, humidity, movement, etc.) into recognizable electronic signals or other forms of output signals (such as voltage, current, etc.), for measurement, recording, transmission, or control.

In 2024, the market scale of sensors in China reached RMB 272.5 billion, among which the market scale of magnetic sensors reached RMB 7.1 billion, pressure sensors reached RMB 64.3 billion, temperature sensors reached RMB 19.9 billion, and humidity sensors reached RMB 9.5 billion. With the development of new energy, intelligent vehicles, industrial automation, and smart consumer electronics, magnetic sensors play a key role in motor control, current sensing, and position tracking, driving continuous growth in demand for magnetic sensors. It is expected that the Chinese magnetic sensor market will grow steadily, increasing from RMB 601.3 million in 2024 to RMB 190 billion in 2029, with a compound annual growth rate of 18.2%. By 2029, the market scale of magnetic sensors is expected to increase to RMB 190 billion, growing at the fastest rate among all sensor segments.

Magnetic sensors can convert the magnitude and changes of magnetic fields into electronic signals, which are used to detect parameters such as position, speed, and direction. Magnetic sensors are widely used in various fields, including the automotive industry, industrial applications, consumer electronics, humanoid robots, and healthcare. Among them, benefiting from the trend of electrification and intelligence in the automotive industry, the automotive sector is the subfield where magnetic sensors are most widely applied. In 2024, the market size of magnetic sensors in the automotive field accounted for about 54.1% of the total magnetic sensor market size.

Data source: Analysis by Frost & Sullivan

●Strong demand supported by traditional applications

The rapid growth of China's magnetic sensor industry is mainly driven by the continuous growth of domestic substitution demand. In the automotive sector, the rapid development of new energy vehicles has driven demand for high-precision magnetic sensors, especially in motor control and position detection applications. At the same time, the development of industrial automation has accelerated the adoption of domestically produced high-performance magnetic sensors, improving the stability and intelligence level of systems. In addition, the popularization of smart meters requires the large-scale deployment of highly reliable magnetic sensors for current detection and power monitoring. With the country's increasing emphasis on self-control, China's magnetic sensor market is experiencing rapid growth, driving technological breakthroughs and market penetration.

●Emerging areas drive a surge in demand

The development of humanoid robots requires high-precision motion control and real-time feedback, which has driven the application of high-performance magnetic sensors to ensure precise linkage control and stability. At the same time, eVTOL (electric vertical takeoff and landing aircraft) has put forward higher requirements for magnetic sensors, including enhancing anti-interference capabilities and environmental adaptability, optimizing navigation, attitude control, and the stability of power systems. As a key core component, magnetic sensors are characterized by high value and high technical barriers, and are expected to achieve unprecedented development in these emerging fields.

●Driven by policies, the high-end sensor industry is advancing at an accelerated pace

The Chinese government has successively introduced a number of policies, such as the 'Guiding Opinions on Promoting the Development of Energy Electronics Industry' and the 'Industrial Structure Adjustment Guidance Catalog (2024 Edition)', which clearly support the research and development and application of miniaturized, low-power, highly integrated, high-sensitivity sensor components, as well as advanced sensors capable of acquiring multi-dimensional information. The 'Industrial Structure Adjustment Guidance Catalog (2024 Edition)' includes sensors in the encouraged industries and covers six major fields including automotive and intelligent manufacturing, further clarifying the development direction of China's sensor industry, promoting technological upgrading of sensors, and expanding application scenarios for sensors.

The 'Guiding Opinions on Promoting the Development of Energy Electronics Industry' issued by the Ministry of Industry and Information Technology (MIIT) emphasizes the need to strengthen research on miniaturized, high-performance, highly efficient, and highly reliable sensor devices. Relying on this policy, our group can further accelerate product upgrading and technological iteration. In addition, the government's promotion of the establishment of testing, verification, and standardization systems will help our group shorten product certification cycles, enhance market response speed, thereby accelerating business expansion and market share growth.

China's magnetic sensor market ranking: In 2024, the company ranked 5th in China's magnetic sensor market and first among Chinese companies.

Data source: Analysis by Frost & Sullivan