Good News on Listing | Frost & Sullivan Assists Zhaoyi Innovation Technology Group Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (3986.HK)

Zhaoyi Innovation Technology Group Co., Ltd. (hereinafter referred to as 'Zhaoyi Innovation') successfully went public on January 13, 2026. The company plans to issue 2,891.58 million H shares, of which 90% will be for international offering and 10% for public offering. The maximum issue price per share is HK$162.00, raising a net amount of approximately HK$4.68 billion.

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 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.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data, from January to December 2025 and over the past 36 months, Frost & Sullivan provided listing industry advisory services for 82 (accounting for 72%) and 180 (accounting for 71%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has a wealth of industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• The company has been deeply involved in the specialized storage chip industry for twenty years and the MCU field for fourteen years. It has become a well-known enterprise in the Chinese mainland for specialized storage chips and MCUs, creating a brand with global influence in this field.

According to the Frost & Sullivan report, the company's products rank among the world's best in multiple fields:

• atNOR FlashIn the field, the company ranks second globally and first in Mainland China, with a global market share of 18.5%;

   

• In the NAND Flash field, the company ranks sixth globally and first in the Chinese mainland, with a global market share of 2.2%;

   

• atRipple-Carrying DRAMIn the field, the company ranks seventh globally and second in Mainland China, with a global market share of 1.7%;

   

• In the MCU field, the company ranks eighth globally and first in Mainland China, with a global market share of 1.2%;

   

• In the field of fingerprint sensor chips, the company ranks second in mainland China, with a market share of about 10% in the mainland.

Semiconductor memory is a broad category of memory products designed for mass market applications with standardized performance requirements. Semiconductor memory can be further divided into dedicated memory and general-purpose memory based on the characteristics and technical features of specific applications.

Special-purpose memory refers to memory products used in specific industries with unique technical requirements (such as high reliability, low power consumption, or extreme environmental operation), or those that have competitive advantages in specific niche markets. This mainly includes niche DRAM, SLC NAND Flash, and NOR Flash. Such products can use mature or specialized process nodes, focusing more on meeting stringent application requirements rather than cost. Special-purpose memory typically has the following characteristics: (i) It can serve a wide range of downstream application fields, such as consumer electronics, automotive, industrial applications (such as industrial automation, energy storage, and battery management), personal computers and servers, IoT, and network communications; and (ii) In different downstream industries and application scenarios, there are varying requirements for storage capacity, bandwidth, temperature thresholds, and voltage. Niche DRAM, SLC NAND Flash, and NOR Flash are classified as special-purpose memory chips because they are designed for specific application areas and require customized features such as higher reliability, longer product life cycles, and enhanced durability. Unlike general-purpose memory, special-purpose memory mainly serves niche markets such as industry and automotive, where the stringent technical requirements may not be met by standardized solutions.

In 2024, the global market size of dedicated storage was $13.6 billion, with niche DRAM contributing $8.5 billion, NOR Flash accounting for $2.8 billion, and SLC NAND Flash at $2.3 billion. Looking ahead to the next five years, the dedicated storage market will continue to grow due to the total data volume and the ongoing demand for low-power, high-reliability storage solutions in fields such as edge AI and automotive electronics. The market size will expand at a compound annual growth rate of 7.1%, reaching $20.8 billion by 2029. By segment, it is expected that niche DRAM will increase to $13.2 billion by 2029, NOR Flash to $4.2 billion, and SLC NAND Flash to $3.4 billion.

Data source: Analysis by Frost & Sullivan

● The popularization of AI intelligent devices has driven up the demand for capacity of dedicated storage chips

As consumer terminal devices (such as smartphones, PCs, wearable devices, smart home products) continue to transform towards AI, the demand for data processing and storage capabilities of these devices has significantly increased. Such devices require larger-capacity, faster, and more reliable chips to support intelligent functions such as multimodal interaction and large model operations, driving the evolution of dedicated storage chips towards greater capacity.

● Automotive 'Three Modernizations' drive the automotive-grade storage demand

The automotive industry's 'three modernizations' have placed higher demands on data storage reliability, temperature and vibration resistance, as well as real-time read/write performance. For instance, in intelligent driving scenarios, the massive sensor data generated by cameras and lidar requires local high-speed caching and stable writing, driving a surge in demand for high-performance NOR Flash; at the same time, the infotainment systems carried by intelligent cockpits, multimedia stream processing, and OTA firmware upgrades also pose higher standards and greater demands on niche DRAM. As the global electric vehicle market continues to expand,Automotive-grade memory chipsIt is becoming another important growth engine following the consumer electronics sector.

● The AI era brings opportunities to various types of storage chip companies

In the AI era, both cloud-side and endpoint devices have a massive demand for storage products, creating development opportunities for the entire storage industry. In this process, new products and technical forms emerging in the dedicated storage market create new profit margins for enterprises.

A microcontroller unit (MCU) is a small integrated circuit with functions similar to those of a microcomputer, typically integrating key functional modules such as CPU, memory, data converters, and I/O interfaces. MCUs are designed to control specific functions within large electronic systems, making them very suitable for embedded systems. MCUs are widely used in control components or devices across various fields, including industrial automation, automotive electronics, and home appliances. For example, the microcontroller inside a washing machine is responsible for managing the motor, water level, and user interface buttons. Similarly, MCUs are used in electronic thermostats, remote controls, and basic IoT sensors—devices that require real-time control but have low demands on processing power and memory. MCUs support the operation of billions of end devices and are a key infrastructure in the digital economy. In contrast, a system-on-chip (SoC) is a more complex integrated chip that not only integrates a CPU but also a series of other components such as GPU, DSP, memory controller, wireless module, and advanced peripherals. SoCs are designed to perform more complex and diverse functions, supporting entire systems such as smartphones, tablets, and advanced embedded applications, rather than just control components or devices. In summary, MCUs are suitable for simple real-time control tasks with limited resources, while SoCs are suited for complex applications that require powerful processing power and multiple integrated functions.

In terms of market size, the global MCU market reached $19.7 billion in 2024, with a compound annual growth rate of 6.3% from 2020 to 2024. Looking ahead, as AI continues to penetrate into various fields, the functional complexity and intelligence level of end-products such as automotive electronics, industrial control systems, and consumer electronics are improving simultaneously, driving continuous demand for MCUs in the market. As a result, the value per unit of MCU in electric vehicles can be more than 60% higher than that in gasoline vehicles.

Data source: Analysis by Frost & Sullivan

The analog chip is mainly responsible for power conversion and signal acquisition/processing, which can be divided intoPMICThere are two major categories: the first focuses on energy conversion, voltage regulation, and current management, while the latter handles functions such as sensing, interfaces, conversion, clocking, and amplifying analog signals sent by sensors. Together, they form the key bridge for digital systems to interact with the real physical world.

With the acceleration of global AI data center construction, the penetration rate of electrification and intelligence in electric vehicles continues to rise, as well as the intelligent upgrade of industrial control and consumer electronics systems, the global analog chip market has entered a new growth cycle. The market size is expected to grow from $83.1 billion in 2025 to $112.8 billion by 2029, with a compound annual growth rate of 7.9% during this period.

Looking at the segmented market, PMIC is expected to see a market size growth of 8.3% CAGR from 2025 to 2029, driven by its core role in key application scenarios such as AI server power supply systems, electric vehicle drive platforms, and portable terminal fast charging solutions.

Data source: Analysis by Frost & Sullivan

In 2024, the global NOR Flash market competition landscape showed relative stability and high concentration, with the top three companies accounting for about 63.2% of the total market size. Among them, our company's revenue for 2024 was approximately $512.2 million, accounting for about 18.5% of the market share, ranking second among global companies and also the highest-ranked mainland Chinese company. In addition to our company, the main market participants in the NOR Flash field also include Hua Bang Electronics Co., Ltd., Wang Hong Electronics Co., Ltd., and Infineon Technologies AG.

Data source: Analysis by Frost & Sullivan

In 2024, the global market share of SLC NAND Flash was highly concentrated among overseas and Taiwanese manufacturers, with the top three companies accounting for 69.4% of the total market value. Our company ranked sixth in the global SLC NAND Flash market, with approximately $500 million in business revenue, and is also the highest-ranked mainland Chinese company. In addition to our company, major market participants in the SLC NAND Flash field also include KeyStone Corporation, Micron Technology Corporation, and Hua Bang Electronics Co., Ltd.

Data source: Analysis by Frost & Sullivan

In 2024, the global market share of niche DRAM is highly concentrated among large overseas manufacturers, with the top three companies accounting for about 69.1% of the total market size. Among them, our company's revenue in 2024 was approximately $146.4 million, accounting for about 1.7% of the market share, ranking seventh among global companies and second among mainland Chinese companies. In addition to our company, the main market participants in the niche DRAM field also include Samsung Electronics Co., Ltd., Micron Technology Corporation, and SK Hynix Corporation.

Data source: Analysis by Frost & Sullivan

In 2024, the global MCU market competition landscape showed relative stability and high concentration, with the top five companies accounting for about 81.2% of the total market size. Among them, our company's revenue for 2024 was approximately $230.6 million, accounting for about 1.2% of the market share, ranking eighth among global companies and first among mainland Chinese companies. In addition to our company, major market participants in the MCU field also include Infineon Technologies AG, Renesas Electronics Corporation, and STMicroelectronics S.A.S.

Data source: Analysis by Frost & Sullivan

● R&D innovation and product development capabilities

The chip design industry is a typical technology-intensive sector. Chip companies need to possess forward-looking industry judgment, define product specifications in advance, and grasp the direction of technological evolution. The chip design process involves multidisciplinary collaboration, requiring coordination of complex aspects such as circuit design, architecture design, system integration, software and hardware coordination, and verification testing, placing extremely high demands on the capabilities of R&D teams. The development cycle for chips is long and the verification cost is high, necessitating continuous iteration and profound technical accumulation. Especially in highly reliable fields such as branded consumer electronics, automotive regulations, and industrial control, the fault tolerance rate of product development is extremely low, raising the entry threshold. For example, SLC NAND is commonly used in network communication devices, smart security, industrial control, and automotive sectors, where there are very high requirements for data write stability and power-off protection performance. To meet this characteristic, chips need to introduce mechanisms such as multi-level voltage writing control and redundant verification algorithms during the circuit design phase. The R&D process requires repeated verification of erase/write life and data retention under extreme voltage and temperature conditions, increasing the complexity of product definition, design, and verification.

●Customer and Brand Barriers

Chips are the cornerstone of electronic devices, and their reliability and stability directly determine the performance and competitiveness of end products. The main downstream customers in the industry usually maintain long-term stable cooperation with existing chip suppliers, both parties having strict requirements and a high degree of tacit understanding regarding product quality, delivery, and service processes. For example, niche DRAM must undergo long-term compatibility and stability testing by customers in industrial applications such as industrial automation, energy storage, and battery management. It is difficult for new entrants to break the customers' dependence on existing suppliers in the early stages. Existing chip suppliers have established a good brand image through long-term market competition, while new companies face significant challenges in winning customer trust, building channels, and obtaining orders.

● Barriers to quality control capabilities

In the chip design phase, quality is not only reflected in the correctness of functionality but also in product consistency, reliability, and stable performance across multiple scenarios. Mature enterprises have built a full-process quality verification system, from front-end architecture design to post-simulation verification and collaborative optimization during the packaging and testing stages, ensuring that products meet high-standard quality requirements before mass production. For example, automotive-grade NOR Flash is commonly used in critical systems such as car dashboards and ADAS. These chips must pass the AEC-Q100 standard certification and meet the long-term stable operation requirements under extreme environments such as high temperature, high humidity, and high vibration. Therefore, they pose extremely high demands on product consistency, reliability, and a full-process quality verification system before leaving the factory. At the same time, leading enterprises have established test specifications and reliability evaluation mechanisms covering multiple product lines based on long-term technical accumulation, ensuring that chips can maintain high-performance stability and long-term operational reliability across multiple application scenarios. New entrants find it difficult to establish an equivalent quality assurance system in the short term without a large amount of verification data, patent support, and customer-side collaboration mechanisms.

●Supply chain barriers

Chip design companies need to ensure smooth mass production and stable delivery of products by having the ability to coordinate key links such as wafer foundry and packaging testing. Leading companies have formed deep cooperation mechanisms with multiple upstream and downstream entities through long-term accumulation, possessing higher collaborative efficiency and resource allocation capabilities, effectively ensuring product quality and delivery stability. By establishing a full-process supply chain management system covering design, verification, tape-out, testing, and delivery, leading manufacturers can quickly respond to customer needs, enhance supply chain resilience, and ensure business continuity. For example, NOR Flash is commonly used in scenarios with high requirements for startup speed and data accuracy. Downstream customers generally focus on stable delivery and verification compatibility, so chip design companies need to cooperate with manufacturers with mature production lines and reliable delivery capabilities for a long time. New entrants often find it difficult to establish a supply chain response system and delivery capability at the same level in the early stages due to limited business scale and insufficient customer loyalty.

●talent barrier

The semiconductor industry highly relies on compound talents with many years of experience, especially in key areas such as chip front-end design, quality verification, and reliability testing. These areas have high professional barriers and long training cycles. Currently, there is a tight supply of high-end chip design and quality engineering talents globally, with a large number of core technical backbones concentrated in leading enterprises for a long time. New entrants not only find it difficult to attract senior engineers with complete project experience but also struggle to quickly form a complete technical team covering design-verification-delivery, severely restricting product development efficiency and project delivery capabilities. For example, key modules involved in SLC NAND Flash design, such as power-off data protection, voltage regulation, and lifespan management, are often developed and optimized by senior engineers with over ten years of experience. This type of talent resource is highly concentrated in leading enterprises, further raising the industry's entry threshold.