Shenzhen Xinyichang Technology Co., Ltd. (referred to as “Xinyichang” or HOSON), a publicly listed company on the Science and Technology Innovation Board and a prominent manufacturer of high-end intelligent equipment, is rapidly advancing in the realm of domestic manufacturing. One “wing” of its strategy is rooted in Shenzhen, where Xinyichang has developed a top-tier R&D team in the Nanshan High-tech Park, often dubbed the “Silicon Valley of Shenzhen.” Recently, a new R&D center has been launched at the Bao’an District Science and Technology Innovation Center. The other “wing” extends to the Cuiheng New Area in Zhongshan, adjacent to the Shenzhen-Zhongshan Link, where an industrial park spanning over 70,000 square meters has been completed and is now operational. Plans for the “Xinyichang High-end Intelligent Equipment Manufacturing Base Project,” covering nearly 150,000 square meters, are set to begin this year.
As Xinyichang evolves from merely catching up with international standards to becoming a global leader in high-end intelligent equipment, and with substantial national support aimed at breaking through in semiconductor equipment, the company has encountered new growth opportunities and responsibilities. Song Changning, the General Manager of Xinyichang, explained in an interview in Shenzhen that the company is transitioning from a developer of intelligent manufacturing equipment to a domestic leader and internationally first-class provider of comprehensive intelligent manufacturing solutions, with a significant focus on the global market. Centralized production and streamlined manufacturing management are becoming an industry trend.
Maximizing Strategic Advantages through the Shenzhen-Zhongshan Link
To accelerate its growth, Xinyichang is leveraging the complementary advantages of the Shenzhen-Zhongshan Link and the distinct industrial strengths of both cities. “Our R&D base is in Shenzhen, and our production base is in Zhongshan, allowing both sites to collaborate and complement each other. It’s like Xinyichang has two powerful wings, both of which are essential,” said Song.
Breaking the Monopoly in High-end Equipment with “Craftsmanship Spirit”
Shenzhen is known for its concentration of innovation resources, and Xinyichang stands out among the many exceptional companies in the city. As a key player in the core electronics sector of the new-generation information technology industry, Xinyichang represents a strategic emerging industry. Founded in 2006, Xinyichang successfully went public on the Science and Technology Innovation Board in 2021. “Our growth journey has been built from the ground up, step by step. It is the spirit of craftsmanship that has shaped Xinyichang,” Song Changning remarked. Last year, the company invested $12.3 million in R&D, marking a 17.18% year-over-year increase and accounting for 7.57% of its total revenue.
Leading the Future of Display Technology: Mini LED and Micro LED
Mini LED and Micro LED are heralded in the LED industry as the next-generation display technologies, featuring thinner screens, higher definition, improved resolution, better color contrast, faster response times, longer lifespans, and energy efficiency. These characteristics cater to the visual and auditory demands of next-generation large screens.
The application of Mini LED technology heavily relies on advanced packaging techniques. Around 2015-2016, Xinyichang began producing prototype die-bonding machines for market validation. In 2018, Samsung was the first to launch its “The Wall” series displays, which created a significant industry impact. The displays utilized Mini LED technology, and Xinyichang supplied the die-bonding equipment necessary for production. Today, more leading display companies are adopting this technology and purchasing Xinyichang’s Mini LED die-bonding equipment.
Dominating Domestic and International Markets with Intelligent Manufacturing
In the capacitor aging testing equipment sector, Xinyichang holds a 90% domestic market share and is also among the top exporters. In LED packaging equipment, it commands a 70% market share within China. The company has also overcome barriers in the semiconductor packaging equipment field by developing semiconductor die-bonding machines. With a strong foundation in R&D, Xinyichang has expanded into the lithium battery equipment field.
“Our core components are independently developed and produced, with a self-production rate of around 70%,” stated Song Changning. Xinyichang is among the few companies in China’s intelligent manufacturing equipment sector with independent R&D and production capabilities for core components. These components include drivers, high-precision DDR motors, linear motors, voice coil motors, high-thrust ratio linear motors, motion control cards, and high-performance integrated controllers, all developed and produced in-house.
Expanding Horizons: New Manufacturing Base in Zhongshan via Shenzhen-Zhongshan Link
Due to rapid growth and rising rents, the company has reassessed its future layout. In 2017, with the commencement of the Shenzhen-Zhongshan Link, Xinyichang quickly registered a subsidiary, Zhongshan Xinyichang Automation Equipment Co., Ltd., in Zhongshan. In 2018, it acquired its first plot of land in Zhongshan and began constructing a new manufacturing base.
Over 90% of Production Lines Moved to Cuiheng Zhongshan Base
“The solid manufacturing foundation in Zhongshan led us to establish our production base there,” said Song Changning. “Earlier this year, we secured our first industrial land in the Cuiheng New Area and are planning to build a manufacturing base spanning nearly 150,000 square meters.”
Today, the land purchased in 2018 has transformed into the bustling Xinyichang Zhongshan Industrial Park, a seven-floor facility where over 90% of Xinyichang’s production lines have been installed. Aerial photos reveal that the park is located right next to the Shenzhen-Zhongshan Link. It has attracted several high-quality enterprises, including the under-construction China General Nuclear Power Group and the operational China Fortune Land Development. The Xinyichang Zhongshan Industrial Park is equipped with modern amenities, green gardens, a standard basketball court, and spacious accommodation suites for employees.
The fourth-floor production workshop is filled with testing equipment awaiting delivery, with technicians meticulously conducting tests. The neatly arranged and well-maintained equipment is an impressive sight. The air resonates with the sound of machinery as LED die-bonding machines, operating at 60,000 to 110,000 cycles per hour, conduct die-bonding tests. After placing a substrate inside, tiny dots appear within seconds as individual wafers are bonded. The LED die-bonding machine, one of Xinyichang’s flagship products, contributed to the company’s revenue of over $95 million last year.
At the other end of the facility, rows of semiconductor packaging lines await delivery, each with a customer’s name attached. From material feeding and dispensing to die bonding, re-dispensing, cutting, and reflow, the circuit boards complete their packaging process amid the rhythmic sound of machinery.
On the first floor, “big boys” of lithium battery winding equipment are being manufactured. Some LED packaging equipment is also produced here.
“In fact, the space here is already insufficient,” mentioned the Zhongshan Industrial Park manager who guided the tour. Although the park covers over 70,000 square meters, with parts designated for R&D offices and production, it is currently inadequate. Consequently, Xinyichang has leased additional factory space in surrounding areas, such as the Development Zone and Nanlang. “Once the Xinyichang High-end Intelligent Equipment Manufacturing Base Project is completed, it will span nearly 150,000 square meters, primarily for production. We believe this will better meet our capacity needs once operational.”
Massive Investment in Semiconductor Equipment through Shenzhen-Zhongshan Link
Public data indicates that the total investment in Xinyichang’s semiconductor intelligent equipment manufacturing base project will exceed $82 million. The project aims to construct an intelligent manufacturing base for semiconductor equipment, a group research and development center, and supporting facilities, creating a large-scale, innovative, and branded demonstration base for intelligent manufacturing of semiconductor equipment with independent intellectual property rights, advanced technology, and significant scale. After implementation, the project will foster Xinyichang’s comprehensive expansion in the semiconductor equipment field.
Strategic Collaboration Between Shenzhen and Zhongshan Through Shenzhen-Zhongshan Link
Song Changning noted that Xinyichang is simultaneously expanding its footprint in both Shenzhen and Zhongshan, focusing on centralized manufacturing in Zhongshan to create a high-end intelligent manufacturing equipment production base with advanced automation, more efficient spatial layouts, and a cleaner, more sustainable environment. The company is also building some R&D capabilities in Zhongshan. Xinyichang’s wholly-owned subsidiary, Dongxin Technology, has registered a branch in Zhongshan, where it will nurture high-end R&D talent and develop specific R&D competencies. Thanks to Xinyichang’s leadership in its industry, several supporting companies in the supply chain have relocated to Zhongshan, forming clusters in industrial parks in Nanlang and other areas to create synergistic advantages.
According to Song Changning, the Shenzhen-Zhongshan Link has established a bridge for mutual benefit, interconnection, and communication between the two cities. Shenzhen offers a wealth of high-end talent, while Zhongshan provides substantial manufacturing advantages. The complementary strengths of both cities will help Xinyichang achieve greater stability and growth.
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