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Chip EDA star companies that have raised nearly 2 billion yuan have begun organizational changes.
February 28 news, in response to market news, domestic semiconductor EDA (Electronic Design Automation) company coreHuazhang TechnologyGuShiio.comAGI confirmed that Wang Linting, founder of Xinhuazhang, served as chairman and stepped down as CEO; Xie Zhonghui and Qi Zhenghua served as co-CEOs of Xinhuazhang.
In addition, it is reported that Fu Yong, CTO and founder of Xinhuazhang, and Fu Qiang, COO of the company, have resigned from Xinhuazhang.
Xinhuazhang said that at present, competition in the semiconductor EDA market is becoming increasingly fierce, and new technologies and new challenges are coming one after another. In order to further strengthen strategic execution and accelerate the coordinated development of products and markets, the company will complete its strategic upgrade in early 2025. This adjustment is a key step for Xinhuazhang to large-scale development. The two co-CEOs will complement each other’s advantages, lead the team to accelerate core technology research and the implementation of scenario-based solutions, strengthen customer demand response capabilities, and promote the verification tool chain. Intelligent upgrades and industry penetration.
In this regard, Wang Linting, founder and chairman of Xinhuazhang, said: Xinhuazhang has entered a critical stage of paying equal attention to technical value release and market expansion. This management upgrade aims to consolidate the competitiveness of the trinity of technology-product-ecology through a more efficient strategic transmission mechanism. In the future, I and the board of directors will fully support the management team, continue to optimize the capital structure, and inject momentum into long-term development. rdquo;
It is reported thatXinhuazhang Technology was established in March 2020. It focuses on the field of EDA digital verification and creates verification solutions from chips to systems. With basic bases such as intelligent debugging, intelligent compilation, intelligent verification cockpit, and intelligent cloud native, it has released a variety of systems based on platform, intelligent, and cloud-based underlying architecture. It provides complete verification EDA tool chain services and has been fully put into the market and delivered to multiple head users.
In terms of financing, as of now, Xinhuazhang has raised nearly 2 billion yuan in total. Investors include Zhenge Fund, Hillhouse Ventures, Sequoia Broadband Digital Industry Fund, Yunhui Capital, Jingwei China, and Guokai Manufacturing Transformation and Upgrading Fund, SMIC Juyuan, Xinke Capital and many other investment institutions, companiesThe valuation has exceeded 7 billion yuan.
Xie Zhonghui, who serves as co-CEO of Xinhuazhang, has been deeply involved in the semiconductor industry for nearly 30 years. Previously, he served as deputy general manager of global EDA giant Synopsys, and has both industry demand insight and solution design experience.
Qi Zhenghua once held a key position at Synopsis Technology, leading and promoting a number of strategic and technical projects. He has more than 20 years of rich experience in complex system EDA R & D projects and team management.
Earlier, Xinhuazhang launched multiple rounds of layoffs and optimization, and dozens of people resigned.
Not only Xinhuazhang, many semiconductor companies have recently faced layoffs and optimization. On February 26, OnSemi, a major power semiconductor and automotive image sensor manufacturer, was facing huge operating pressure and planned to lay off 2400 people globally in 2025. Earlier, chip giant NXP Semiconductors announced a global layoff plan, which is expected to cut about 1800 jobs, accounting for about 5% of its global workforce.
According to statistics from CCID think tank, in 2020, the three major international EDA giants Synopsis Technology, Kengteng Electronics and Siemens EDA occupied a clear leading advantage in the domestic market, accounting for a total market share of about 80%. China Semiconductor Industry Association predicts that by 2025, the size of China’s EDA market will reach 18.49 billion yuan (approximately US$2.5 billion), accounting for 18.1% of the global EDA market.
However, the profits of domestic EDA companies were far less than expected. In the first three quarters of 2023, the revenue of Huada Jiutian, a domestic EDA listed company, was 743 million yuan, a year-on-year increase of 16.25%; it achieved a net profit attributable to the parent company of 58.55 million yuan, a year-on-year decrease of 65.84%; and the non-net profit attributable to the parent company was-33.5642 million yuan, a year-on-year decrease of 280.88%.
Therefore, for domestic EDA companies that have not yet been listed, they may encounter a more severe financing environment and significantly increased listing thresholds in the future. Strategic contraction may be one of the necessary ways to deal with the market.
In response to this round of changes,Xinhuazhang emphasized that facing the future, Xinhuazhang will continue to improve the full-process verification tool chain around customer needs in key scenarios, and work together with ecological partners to build an open and efficient chip development environment. We firmly believe that by comprehensively improving management energy efficiency and precise allocation of strategic resources, Xinhuazhang will create value for customers more accurately and efficiently, provide better solutions for the industry, and bring sustainable returns to investors. rdquo;
