On December 30, 2024, InnoScience (Suzhou) Technology Holding Co., Ltd. officially listed on the Main Board of the Hong Kong Stock Exchange under the stock code 02577.HK. The company marked this milestone with a bell-ringing ceremony attended by its leaders and employees. Dr. Weiwei Luo, founder and chairman of InnoScience, emphasized the significance of this listing, stating, "InnoScience is a leader in the global power semiconductor revolution and the world's largest manufacturer of Gallium Nitride (GaN) wafers. This listing represents a key milestone in our journey and signals our commitment to expanding our global market presence. We believe GaN technology can transform the world and help create a greener future."

Founded in 2017, InnoScience focuses on the research, development, and manufacturing of GaN chips, offering products including discrete devices, integrated circuits, wafers, and modules. According to Frost & Sullivan, InnoScience ranks first globally in GaN power semiconductor market share, with a 42.4% market share based on the shipment volume of GaN discrete devices as of the end of 2023.

From pioneering the world's first 8-inch GaN production line to becoming a global industry leader, InnoScience's journey culminated in its successful debut on the Hong Kong Stock Exchange. This milestone signals the company's transition to an accelerated growth phase.

Technological Innovation Driving GaN Adoption

InnoScience's success in the GaN power semiconductor market is not only a reflection of industry growth but also a testament to the company's technological breakthroughs. The company's 8-inch GaN wafer production technology, which enhances wafer yield by 80% and reduces chip costs by 30%, has significantly accelerated the commercial adoption of GaN in power electronics. The firm is also the first to achieve mass production of 8-inch GaN wafers, positioning it as a leader in the sector.

As of June 2024, InnoScience's monthly production capacity for GaN wafers had reached 12,500 wafers, further solidifying its position at the forefront of the global market. The company has shipped over 850 million GaN devices and more than 20,000 GaN wafers by mid-2024.

Financial Performance and Growth Prospects

InnoScience has experienced remarkable revenue growth, with 2023 revenues reaching approximately RMB 593 million, a staggering 769% increase compared to 2021. The company continues to focus on expanding its capacity and product offerings. In its upcoming capital raise, 60% of the proceeds will be used to increase its 8-inch GaN wafer production capacity, aiming to scale from 12,500 wafers per month to 70,000 over the next five years.

The company's revenue growth is also seen across its diverse product lines, with GaN discrete devices and integrated circuits contributing to a compound annual growth rate of 163%. InnoScience's GaN wafer business grew by 130.1%, while it also began shipping GaN modules in 2023, generating revenue of approximately RMB 190 million.

Expanding Global Presence

InnoScience's products serve a wide range of applications, including consumer electronics, renewable energy, industrial use, automotive electronics, and data centers. The company has expanded its customer base to approximately 140 clients globally, including semiconductor manufacturers, renewable energy tech companies, and automotive OEMs.

Looking ahead, InnoScience plans to continue expanding its global reach, with a particular focus on increasing its presence in international markets like Europe and Asia. Overseas sales accounted for 9.8% of total revenue in 2023, with significant growth in South Korea.

Future Strategy and Market Outlook

With its listing on the Hong Kong Stock Exchange, InnoScience is well-positioned to leverage international capital markets to strengthen its leadership in the GaN semiconductor industry. The company's long-term strategy involves accelerating technological innovation, expanding its product portfolio, increasing production capacity, and deepening its global market penetration.

As part of its strategic plan, InnoScience aims to broaden its GaN product lineup and explore new applications, particularly in the consumer electronics and automotive sectors. The funds raised from the IPO will also help enhance its R&D capabilities and further secure its competitive advantage in the rapidly evolving semiconductor industry.

Navigating Challenges

Despite its rapid growth, InnoScience faces challenges, including ongoing intellectual property disputes with competitors like EPC and Infineon. However, the company has made significant strides in protecting its technology and intellectual property. In November 2024, the U.S. International Trade Commission ruled in favor of InnoScience, affirming that the company did not infringe on EPC's patents.

Conclusion

InnoScience's successful IPO marks a pivotal moment in the GaN semiconductor market, reinforcing its position as a global leader in the industry