Nexchip Seeks Hong Kong Listing: FY2025 Revenue at RMB 10.39 Billion, Gross Margin Narrows to 22.7%
Taylor Wilson
Nexchip Semiconductor filed for an H-share listing on the HKEX, reporting 2025 revenue of RMB 10.39 billion — up ~45% in two years — while gross margin narrowed from 25.2% to 22.7% as newer product lines have yet to reach scale.
How big is this company?
By 2025 revenue, Nexchip (晶合集成) ranks as the world's ninth-largest wafer foundry and mainland China's third-largest pure-play foundry.
It also holds two niche titles: the world's largest display-driver IC foundry and the fifth-largest CMOS image sensor foundry.
Revenue grew from RMB 7.18 billion in 2023 to RMB 10.39 billion in 2025, a five-year CAGR of 47.0%.
This means → Nexchip is no longer a small-fab catch-up story. It is a mid-tier player that must now prove profits can keep pace with scale.
Revenue grew — why didn't margins follow?
Gross profit rose from RMB 1.46 billion to RMB 2.36 billion over two years — the absolute number is climbing.
Yet gross margin slipped from 25.2% in 2024 to 22.7% in 2025. The issue is product mix.
In plain terms = newer lines like image sensors have not yet reached the volumes needed for cost efficiency. Their higher unit costs dilute the mature display-driver business's margins.
Net profit edged down to RMB 467 million in 2025 from RMB 482 million in 2024. R&D spending reached RMB 1.45 billion, about 14% of revenue.
Capacity is full — what comes next?
Designed monthly capacity rose from 110,000 wafers in 2023 to 137,900 in 2025. Actual monthly output hit 139,000 wafers.
Utilization climbed from 72.5% to 100.8% — the fab is running beyond nameplate capacity.
This means → further revenue growth is physically impossible without new capacity. The Hong Kong IPO's core purpose is to fund that expansion.
Technology nodes span 150 nm to 40 nm. A 28 nm logic platform has been developed but is not yet in mass production.
How serious are customer concentration and trade risks?
The top-five customers' revenue share fell from 64.2% in 2023 to 57.9% in 2025 — improving, but the single largest customer still accounts for 22.4%.
Display-driver ICs made up 58.1% of 2025 revenue. Business concentration remains elevated.
This reflects a structural tension: newer lines are dragging down margins but are not yet large enough to diversify revenue risk.
On trade policy, Nexchip flagged U.S. Section 301 semiconductor tariffs and IEEPA interim tariffs, but stated that as of the prospectus date no order cancellations or material adverse impact had occurred.
What should investors watch?
Expansion timeline: capacity is maxed out. Revenue growth depends entirely on when post-IPO production lines come online and how fast they ramp.
Gross-margin inflection: when newer businesses reach scale economies — and whether margins can stop falling — is the key valuation variable.
Put simply = Nexchip's growth story is unfinished. The next chapter — whether expansion lands on schedule and profits keep up — will be written entirely by post-IPO execution.
Content is for reference only, not financial advice.