Establishing two subsidiaries, Yunyinggu Technology enters optical communications

On September 15, Yunyinggu Technology announced that the company has established two holding subsidiaries-Shuqing Zhiyun Technology Co., Ltd. and Xinqing Zhiyun Technology Co., Ltd., respectively carrying two new businesses of optical interconnection and UCIe IP, extending the business territory from display driver chips to the field of AI computing power interconnection.

The announcement shows that the registered capital of the two subsidiaries is RMB 10 million, and Yunyinggu Technology each holds 55% of the shares. Among them, DataQing Zhiyun is the operating entity of the group's optical interconnection business, focusing on the Micro-VCSEL light source technology route, with the goal of becoming an overall solution provider for on-chip optical interconnection, focusing on the two major scenarios of Scale Up and Scale In;

CoreQing Zhiyun is responsible for the UCIe IP business, taking cross-standard UCIe interconnection IP licensing as the entry point, and plans to evolve into a platform-based IP company in the future.

In terms of financing, both subsidiaries have currently promoted private equity financing in the primary market, but they are still in the negotiation and due diligence stages. The final implementation is subject to the signing of a formal capital increase agreement and the fulfillment of prerequisites, so there is uncertainty.

Yunyinggu Technology also reminded that the establishment of the subsidiary is still young, and the new businesses are in the very early stages of research and development and preparation. As of the announcement date, there are neither mass-produced products nor any revenue generated. It will not make a significant contribution to the company's revenue, profit and financial status in the short term; after the financing is completed, the company will still maintain its controlling position, and the subsidiary will continue to be incorporated into the group's statements.

Talking about layout logic, Yunyinggu Technology said that the rapid development of artificial intelligence, cloud computing, high-performance computing and advanced packaging technology is continuing to drive up the demand for high-speed interconnection between chips. On-chip optical interconnection and chiplet interconnection have become important directions in the semiconductor industry.

Micro-VCSEL has the advantages of low power consumption, low cost, and easy two-dimensional array integration, and has considerable application potential in short-distance optical interconnect scenarios; UCIe, as an open chip interconnect standard, is expected to promote the standardization and scale of the chiplet ecosystem. By establishing an independent operating entity and introducing market-oriented financing, the company hopes to concentrate resources to promote technology research and development, productization and market expansion, and cultivate new growth points.

Yunyinggu Technology is the largest AMOLED display driver chip design company in mainland China. It has long focused on the field of OLED display driver chips. Its current products mainly cover AMOLED display driver chips and Micro OLED silicon-based display driver backplane chips, and are targeted at terminal applications such as smartphones and VR/AR. It is worth noting that this is another business expansion of Yunying Valley Technology after intensive actions in the capital market this year.

On May 27 this year, Yunyinggu Technology officially listed on the main board of the Hong Kong Stock Exchange and became the "first mainland OLED display driver chip stock", raising approximately HK$1.1 billion to support the research and development and optimization of AMOLED TDDI chips, Micro OLED and Micro LED display driver backplanes. On September 2, Yunyinggu Technology announced that it had signed an A-share listing guidance agreement with GF Securities and launched the "H+A" dual platform layout.

Regarding the establishment of this new subsidiary, Yunyinggu Technology stated that the company's future revenue and profits will still mainly come from existing main businesses such as display driver chips, while optical interconnection and UCIe IP are "long-term options" for the next computing era.