Kuaweitie, a power semiconductor firm listed on Shanghai’s STAR Market, has unveiled a $230 million (RMB 1.65B)** deal to acquire **Jingyi Semiconductor** – its first major M&A since going public in 2023. The consideration splits into **$126M in new shares (priced at RMB 32.49/share, ~27.74M shares) and $104M in cash**, with a concurrent **$126M top-up placement to fund the cash portion and fees.

Jingyi (founded 2019, Chengdu) is a Fabless power IC designer with 300+ products in motor drives, power management, and intelligent power modules (IPMs). It serves consumer electronics, home appliances, optical modules, servers, and security gear, with 500+ production customers including major appliance brands, Inspur, and ZTE.

Earn-out structure: 12 seller parties commit to cumulative net profit of ≥$35.6M (RMB 255M) for 2026–2027 on custom chip production, plus self-developed chip revenue targets of RMB 335M / 452M / 566M over three years – total ≥RMB 1.353B.

Valuation & risk: Equity appreciation hit 304% , creating $126M in goodwill – over 30% of pro-forma net assets. Even with funding, goodwill impairment remains a real threat if Jingyi underperforms. Jingyi’s 2024 revenue was RMB 255M, 2025 RMB 350M; 2025 net turned negative due to share-based payments, but operating profit ex-items improved.

Strategic fit: Kuaweitie makes MOSFETs, SiC devices, and driver ICs; Jingyi brings consumer/industrial PMICs and motor drivers. Together they cover high-reliability industrial + consumer markets, complete IPM solutions, and bridge high/low-voltage power lines – a full power portfolio.

Kuaweitie posted RMB 188M net loss over 2024–2025, but Q1 2026 revenue rose 44.5% YoY. Shares jumped 6.49% to RMB 64.85 on the announcement.

ICgoodFind Take:
Big vision, bigger goodwill. This deal fills Kuaweitie’s product gaps neatly, but 9-digit goodwill on a loss-making acquirer demands close tracking of Jingyi’s earn-out delivery. For procurement, watch for IPM and power IC bundling opportunities post-integration.