Shengmei Shanghai: Platform products begin to enter the market
In a significant development marking its strategic evolution, Shengmei Shanghai has officially announced that key platform-based semiconductor products, including vertical furnaces, Track (coating and development) equipment, and plasma-enhanced chemical vapor deposition (PECVD) systems, have begun entering the market. This move signifies a pivotal shift from product-focused to platform-driven growth, setting the foundation for sustained revenue expansion in the coming years.
At the company’s 2025 semi-annual performance briefing, Wang, Chairman of Shengmei Shanghai, emphasized that the platformization strategy is central to achieving long-term competitiveness. “These platform products are not just incremental upgrades they represent a scalable ecosystem approach,” he said. “They offer greater flexibility and efficiency across multiple manufacturing processes, enabling us to serve diverse clients with standardized solutions while reducing development costs and time-to-market.”
This transition comes as part of an overall strategy driven by rising global demand in the semiconductor industry particularly in China’s rapidly expanding advanced chip manufacturing sector. In the first half of 2025 alone, Shengmei Shanghai recorded operating income of RMB 3.265 billion, a year-on-year increase of 35.83%, and net profit attributable to shareholders rose to RMB 696 million, up 56.99%. These figures reflect not only strong market traction but also efficient execution in sales delivery, commissioning, and customer acceptance.
As of September 29, 2025, Shengmei Shanghai’s total backlog of orders reached RMB 9.072 billion, a 34.10% year-on-year increase a clear indicator of sustained industry confidence in the company's capabilities. This robust order pipeline is underpinned by the full-scale operation of its Lingang plant in Shanghai’s new industrial hub.
The Lingang facility, which includes two main production plants and one auxiliary factory totaling 138,000 square meters, has already achieved near-full capacity with Factory A now operating at peak performance. Factory B is scheduled to begin decoration work next year and will eventually join the production line when fully operational. Together, both factories are projected to generate an annual output value of up to RMB 20 billion, providing a strong backbone for future growth.
Hui Wang confirmed that current factory capacity is sufficient to meet the company’s full-year performance targets, giving confidence in its ability to deliver on revised guidance. The company now expects its annual operating income in 2025 to range between RMB 6.5 billion and 7.1 billion, with a projected gross profit margin of 42% to 48% a solid indicator of pricing power and operational efficiency.
Shengmei Shanghai continues to dominate key segments within the semiconductor equipment market:
- In single-wafer cleaning equipment, ACM Shanghai holds a leading position with a market share exceeding 30% in China, ranking second globally just behind international leaders. Its 19nm particle removal performance has already surpassed top-tier foreign equipment, and it is on track to surpass them at the 17nm and 15nm levels.
- In electroplating equipment, Shengmei ranks third globally with an 8.2% market share. A major milestone was reached in H1 2025 when the company delivered its 1,500th electroplating chamber for ECP technology, achieving full coverage across front-end copper interconnects, back-end wafer-level packaging, 3D stacking, and compound semiconductors. The company’s independently developed panel-level electroplating system even won the prestigious “Technology Enablement Award” from the U.S.-based 3D InCites Association an international recognition of innovation.
Strategic Funding for R&D and Expansion
A key enabler of this growth is the successful completion of a private placement on September 29, 2025. Shengmei Shanghai issued approximately 38.6 million shares to specific investors, raising RMB 4.482 billion, with net proceeds of about RMB 4.435 billion. These funds will be primarily allocated toward:
-Building out advanced R&D and process testing platforms
-Accelerating the iterative development of high-end semiconductor equipment
-Supplementing working capital to support increased order fulfillment
Hui Wang stressed that these investments are critical for shortening product development cycles, improving R&D efficiency, and enabling faster commercialization of next-generation technologies. “We’re not just building machines we're creating intelligent platforms that can evolve with the pace of innovation,” he said.
With platform products now entering mainstream markets, Shengmei Shanghai is positioning itself as a key player in the global semiconductor supply chain. The company projects that its platform-based equipment will drive rapid sales growth in 2026 and beyond, potentially capturing 50% to 60% of China's cleaning and electroplating equipment market within this timeframe.
