[News] Leather Tycoon Eyes Hong Kong–Based Wide-Bandgap Hub, Moves to Acquire Power Chip Firm

China International Development Corporation Limited (CIDC), a leather apparel-focused company, and Bowei Limited, a wholly owned subsidiary of LONTEN Semiconductor, signed a strategic cooperation memorandum of understanding on January 6, 2026, announcing plans to jointly establish an advanced power semiconductor technology R&D center in Hong Kong. The center will focus on wide-bandgap semiconductor technologies such as silicon carbide (SiC) and gallium nitride (GaN), aiming to drive innovation in power electronics and support the global energy transition.

The planned R&D center will cover four core areas: product design, testing and reliability, application development, and advanced manufacturing technologies. The initiative seeks to build a comprehensive R&D system spanning materials research to system-level applications, providing solutions for sectors including new energy vehicles and renewable energy.

Previously, on November 21, 2025, CIDC entered into a non-legally binding memorandum of understanding with Xu Xichang (the seller). Under the MOU, the company expressed its intention to acquire up to 100% of the equity interests in LONTEN from its shareholders, including a 24.81% stake directly held by the seller, who is LONTEN’s single largest shareholder and chairman. The seller has indicated an intention to sell and to facilitate discussions with other shareholders to enable the acquisition of up to 100% of LONTEN’s equity.

The proposed transaction consideration is expected to range between approximately HKD 4.5 billion and HKD 9.0 billion, subject to mutual agreement among the parties and to be specified in the final definitive agreements to be signed.

Founded in 2009 and headquartered in Xi’an, LONTEN is a leading provider of power semiconductor devices and system solutions. The company focuses on the R&D, design, and sales of power devices—primarily power MOSFET—and offers integrated system solutions to customers.

LONTEN’s product portfolio spans the major categories of discrete power MOSFET, forming four core product platforms: superjunction MOSFET, planar MOSFET, shielded-gate trench MOSFET, and trench MOSFET. Its products are widely used in applications such as LED lighting drivers, power adapters, TV boards, battery management systems, telecom power supplies, and specialty power supplies.

CIDC is an investment holding company primarily engaged in the fabrication and distribution of leather products. The company has been actively seeking business expansion opportunities at a time when power semiconductor market shows significant growth potential.

CIDC’s move is not an isolated case. Since September, a growing number of traditional industry tycoons have turned their attention to the semiconductor sector:

September 23, 2025: Processed meat producer Jinzi Ham announced that its wholly owned subsidiary plans to invest up to CNY 300 million to increase capital in Leadingspeed Technology for a stake of up to 20%, targeting domestic substitution in optical communication chips.

September 24, 2025: Third-party payment firm ST Rendong invested CNY 100 million in AI chip designer ENRIGIN, acquiring a 4.14% stake, seeking early opportunities ahead of a surge in computing infrastructure demand.

Late October 2025: Cultural tourism and real estate company Winnovation Culturaltainment Development disclosed plans to acquire 81.8% of Longwins Semiconductor in cash. The latter operates advanced packaging and testing lines with monthly capacity of 30,000 wafers, offering one-stop chip integration services.

November 3: Textile manufacturing leader Ruyi Group announced plans to acquire 60% of Shenzhen HTD, an RF chip company, for CNY 580 million, as a way to enter the market of RF front-end components for 5G small base stations and automobiles.

November 15: Cement and building materials company Sichuan Golden Summit Group released a notice stating it intends to acquire a 55% stake in power device maker Sichuan Guangyi Microelectronics via capital injection and share transfer, with a transaction value of up to CNY 600 million, targeting automotive-grade IGBT modules.

December 8: Home air-conditioning compressor leader Highly Group announced plans to acquire a 70% stake in Shanghai Hiway, an automotive power module packaging and testing company, for CNY 740 million, strengthening its capabilities in automotive-grade SiC module packaging.

Looking back the whole year, traditional capital’s “hunt” for semiconductor assets has shown three clear commonalities. Targets are concentrated in Chinese mature domestic companies with mass production capabilities and automotive- or industrial-grade certifications, reducing time-to-market by bypassing lengthy qualification cycles. Deal structures are predominantly cash acquisitions combined with secondary share transfers, enabling rapid consolidation and shorter transformation timelines. Industrial focus areas cluster around new energy vehicles, photovoltaic energy storage, and 5G communications—three major growth scenarios—forming vertical “end-product–to–chip” linkages with the acquirers’ existing core businesses.

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