Xinde Semiconductor, which was only established in September 2020, seems to be one step away from knocking on the Hong Kong Stock Exchange.
Zhitong Finance noticed that recently, Xinde Semiconductor passed the Hong Kong Stock Exchange hearing. This company, whose main business is to provide semiconductor packaging and testing services, has achieved leaps and bounds in revenue over the past few years. The data shows that in 2023-2025, Xinde Semiconductor's revenue was 509 million yuan, 827 million yuan, and 1,012 million yuan respectively. As the scale climbed to the next level, the company also first submitted to the Hong Kong Stock Exchange at the end of 2025.
After an interval of one year, Xinde Semiconductor passed the hearing as desired. In the context of the current shortage of advanced packaging production capacity and the spillover demand for AI computing power packaging, it may be said that it is just the right time for Xinde Semiconductor to pass the hearing at this time. On the one hand, the window for replacing domestic packaging and testing is opening up, and advanced packaging production capacity has become a scarce resource in the industrial chain; on the other hand, the company's revenue has continued to rise over the past few years, the scale effect has gradually become apparent, gross margin continues to recover, and the growth path is becoming more and more clear. By entering Hong Kong stocks at such a time point, Xinde Semiconductor can not only obtain the capital needed for expansion, but also use the Hong Kong market, and is also expected to occupy a more favorable position in the global expansion of its business footprint.
Revenue climbed to the next level
Xinde Semiconductor operates according to the OSAT model. Customers are mainly semiconductor design companies without wafers. Xinde is mainly responsible for packaging design, customized packaging products and testing services, while customers focus on chip design and wafer manufacturing. According to the prospectus, Xinde Semiconductor's product matrix covers BGA, LGA, WLP, 2.5D/3D, FC-QFN, and FC-SOT. Among them, BGA, LGA, WLP, 2.5D/3D, FC-QFN, and FC-SOT are classified as advanced packaging, while WB-QFN is a traditional package. In terms of advanced packaging revenue in 2025, Xinde ranked 7th among GM OSAT companies in China, with a market share of 0.6%.
As mentioned at the beginning of the article, the revenue side performance of Xinde Semiconductor has grown by leaps and bounds over the past few years. From 2023 to 2025, the company's revenue increased from 509 million yuan to 1,012 million yuan, with a compound growth rate of 41% during the corresponding period. In the first four months of 2026, Xinde Semiconductor's revenue was 360 million yuan, up 17.4% year over year.
Looking at the split product structure, from 2023 to 2025, QFN revenue increased from 173 million yuan to 313 million yuan, accounting for 30.9%; BGA increased from 183 million yuan to 306 million yuan, accounting for 30.2%; LGA increased from 82 million yuan to 213 million yuan, accounting for 21.1%; and WLP increased from 70 million yuan to 176 million yuan, accounting for 13.8% to 17.4%. 2.5D/3D revenue is still small, only 244,000 yuan in 2025, mainly from non-recurrent engineering batches. In the first four months of 2026, the share of QFN and LGA rose to 34.4% and 24%, respectively, while the share of BGA and WLP was 27.1% and 14.1%, respectively.
Overall, packaging products and testing services have always accounted for more than 99.6% of revenue over the past few years. Other revenue is mainly waste and material sales. Among downstream applications, communications revenue reached 406 million yuan in 2025, rising to 40.2%, and consumer electronics falling to 54.3%. Communications became the main driver of revenue growth. In terms of customer concentration, the top five customers contributed 54.6% of revenue in 2025, with the largest single customer accounting for 24.5%.
At the same time as revenue is expanding, since the company as a whole is still in a strategic investment period, Xinde Semiconductor has yet to reverse losses. However, the positive sign is that in terms of profitability, Schindler Semiconductor's gross margin has improved from -38.4% in 2023 to -18.0% in 2025, and further optimized to -17.9% in the first four months of 2026, which shows that the company's profitability has recovered.
Is the pace of fulfilling growth expectations expected to accelerate?
Driven by diverse applications in industries such as high-performance memory, data centers, automobiles, and consumer electronics, the semiconductor advanced packaging and testing market is expected to maintain rapid growth for a long time to come. According to Xinde Semiconductor's prospectus, the global semiconductor advanced packaging and testing market size is 396.7 billion yuan in 2025, and is expected to grow to 790.3 billion yuan by 2030, with a compound annual growth rate of 14.8% during the corresponding period. Among them, the size of the Chinese market was about 126.2 billion yuan in 2025, and is expected to increase to 298.5 billion yuan by 2030, with a compound annual growth rate of 18.8% during this period.
The market space is broad, and Xinde Semiconductor itself is strengthening technology matching capabilities by increasing investment in R&D, thereby driving the transformation of potential demand into actual revenue. According to reports, Xinde Semiconductor is currently increasing its investment, using 2.5D/3D packaging as the core engine to collaborate and break through multi-dimensional technology. Specifically, Xinde Semiconductor is deepening the construction of the four major technology platforms LDFO, X-SIP, TXV, and 2.5D/3D under the CAPIC architecture to consolidate the technical foundation of the entire product line. Among them, FOCT-S and FOCT-L are benchmarking Cowos-s/L to meet the heterogeneous integration requirements of mobile AP and HPC artificial intelligence chips, and are a key gripper for high-end customers; TGV technology targets the performance limitations of silicon-based TSV in large size and high frequency scenarios, and gradually constructs a complete technical matrix from glass-based IPD to RF modules.
At the same time, at the market level, Xinde Semiconductor plans to strategically expand overseas markets and focus on developing Taiwan, South Korea, Japan, Southeast Asia, the United States and Germany. Of course, listing is an essential part of Xinde Semiconductors' ambitious expansion plans. The company plans to use the capital raised from the listing to expand 2.5D/3D and substrate packaging capabilities, build a new Nanjing production base expansion project, upgrade existing production lines, and recruit R&D and manufacturing personnel.
All in all, the author believes that the rapidly growing scale of Xinde Semiconductor and the gradual improvement in profitability make up the main financial highlights of this new stock. Against the backdrop that China's advanced packaging and testing competition pattern is far from over, and the market size will continue to grow rapidly in the next few years, whether Xinde Semiconductor can consolidate or even expand its competitive advantage by increasing R&D and expanding production capacity is surely worth investors' continued attention.