Xinlian Integration invested 3 billion in the construction of integrated circuit projects involving AI computing power and optical interconnection

On June 11, Xinlian Integrated Circuit Manufacturing Co., Ltd. issued an announcement announcing plans to cooperate with the Shaoxing Area Management Committee of Shaoxing Hangshao Airport Economic Integration Development Demonstration Zone to jointly promote the capital increase of Xinlian Advanced Integrated Circuit Manufacturing Co., Ltd. and use it as the implementation entity of Xinlian’s 12-inch car-scale digital-analog hybrid chip manufacturing project, the fourth phase of the project.

According to the announcement, the project plans a total investment of approximately 20 billion yuan and a capital of 12 billion yuan, of which Xinlian Integration plans to invest 3.012 billion yuan with its own funds. After the project is completed, it will have a monthly production capacity of 50,000 12-inch wafers.

From a technical perspective, the fourth phase of the project focuses on automotive-grade digital-analog hybrid chips, covering MCU and DSP products at 40nm to 28nm nodes, as well as analog circuits such as BCD and DrMOS at 90nm to 55nm nodes.

What is particularly noteworthy is that the project clearly includes 55-nanometer silicon photonic chips and laser driver chips as core directions, which directly echoes the demand for optical interconnect technology in the current construction of AI computing power infrastructure. Xinlian Integration clearly pointed out in the announcement that this project is conducive to seizing the development opportunities of emerging industries such as AI computing servers and optical interconnections.

In fact, Xinlian Integration Company has already accumulated experience in the field of optical communications. Its OCS switching chip developed based on the MEMS micromirror optical sensor process platform has passed customer verification, VCSEL optical communication chips have achieved mass production, and it has simultaneously laid out the application of Micro LED technology in data center optical communications and other scenarios. The construction of this silicon photonics-related production line will further improve its manufacturing capabilities in the field of optical interconnection and provide system-level foundry support from chips to modules for AI data centers and intelligent driving.

It is reported that Xinlian Integration will be listed on the Science and Technology Innovation Board in 2023. It is a well-known domestic wafer foundry company. Its main business covers MEMS, power devices, analog IC and MCU and other fields, providing customers with one-stop system foundry solutions from design services, wafer manufacturing to module packaging.

In terms of finance, Xinlian Integration will achieve operating income of 8.18 billion yuan in 2025, a year-on-year increase of 25.67%, the gross profit margin will increase to 5.51%, and the net profit loss attributable to the parent company will decrease by 38.17% year-on-year. The recovery trend will continue in the first quarter of 2026, with revenue reaching 1.962 billion yuan, gross profit margin further rising to 5.69%, and losses continuing to narrow.