Tuojing Technology Acquires Xinfeng Precision: In-depth Analysis of How 3D Integration Technology Enhances Domestic Substitution Space

On December 5, 2025, Tuojing Technology (SH688072) issued an investment announcement, planning to acquire a 16.42% stake in Xinfeng Precision for no more than 270 million yuan [1]. This strategic investment marks an important layout of Tuojing Technology in the 3D Integration (3DIC) field. Notably, Xinfeng Precision is currently in a loss-making state—with a net loss of 30.8849 million yuan in 2024 and a loss of 7.1851 million yuan in the first half of 2025 [1]. However, from a strategic perspective, the core technical assets held by Xinfeng Precision are far more valuable than its short-term financial performance.

Tuojing Technology is one of the most technologically capable enterprises in mainland China in the field of Chemical Vapor Deposition (CVD) equipment, especially accumulating profound technical experience in Plasma Enhanced Chemical Vapor Deposition (PECVD) and Atomic Layer Deposition (ALD) equipment [2]. The purpose of this investment in Xinfeng Precision is to complement its industrial puzzle in the 3D integration link and achieve deep integration of bonding technology with thinning and dicing technologies [1].

Xinfeng Precision has shown strong independent innovation capabilities in the field of 3D integration and advanced packaging equipment. Its core product, the 12-inch fully automatic ultra-clean ultra-precision dicing machine UNI-T310, exceeded 20 units in cumulative shipments by November 2024, ranking first in domestic market share and successfully breaking overseas monopoly [1]. This breakthrough is a milestone, indicating that domestic equipment has the strength to compete with international manufacturers in the field of advanced packaging key equipment.

Xinfeng Precision’s technical layout focuses on the core links of 3D integration manufacturing:

• Thinning equipment
  : Used for chip backside thinning to achieve ultra-thinness
• Dicing equipment
  : Key process before chip cutting
• Scribing equipment
  : High-precision chip separation process

These equipment are necessary steps in 3D integration manufacturing that are closely connected and have mutually influencing parameters, forming a complete process chain [1].

Tuojing Technology has formed a complete product matrix in the 3D integration field. The company has successfully developed advanced bonding equipment and supporting quality inspection equipment for the 3D integration field, and has achieved mass production in advanced storage, image sensors and other fields [1]. In 2024, the company launched the chip-to-wafer bonding equipment Propus, becoming the only domestic bonding machine of its kind actually used in chip-to-wafer production lines that year [1].

From the product series perspective, Tuojing Technology has built an equipment system covering the entire 3D integration process, including multiple product series such as Dione, Propus, Pleione, Crux, Ascella, Lyra, which are applied in key processes such as chip-to-wafer bonding, chip-to-chip bonding, temporary bonding and debonding [1]. In 2024, the company’s sales revenue from bonding equipment and supporting inspection equipment for the 3D integration field reached nearly 100 million yuan, with a year-on-year growth rate of more than 48%, which is in the key stage of rapid business volume release [1].

The global high-end 3D integration manufacturing market is in a stage of explosive growth. According to market forecasts, from 2023 to 2028, this market will grow at a compound annual growth rate of about 34%, jumping from 2.249 billion US dollars to 9.879 billion US dollars [1]. This growth is mainly driven by the following factors:

• AI investment expansion
  : Drives a surge in demand for cutting-edge logic circuits and memory chips
• Evolution of advanced packaging technology
  : New technology routes such as Chiplet and 3DIC have become industry mainstream
• High-performance computing demand
  : Application scenarios such as data centers and autonomous driving drive chip performance upgrades

From the perspective of industrial security, the localization of 3D integration technology has important strategic significance. Currently, the domestic semiconductor equipment industry faces the following pattern:

• In the front-end equipment field, enterprises such as Tuojing Technology, Naura Technology, and AMEC have accumulated certain technical experience, but there is still an obvious gap with international giants (Applied Materials, Lam Research, etc.) in high-end processes (such as 7nm, 5nm) [2]
• In the advanced packaging equipment field, the localization rate of thinning, dicing, bonding and other equipment is gradually increasing, but there is still a large substitution space in the overall market
• Domestic equipment has competitiveness in mature processes of 28nm and above, and is extending to more advanced processes [2]

The strategic synergy between Tuojing Technology and Xinfeng Precision is reflected in the following aspects:

: The integration of bonding technology with thinning and dicing technologies enables Tuojing Technology to provide customers with integrated solutions for the entire process chain, enhancing market competitiveness [1]. This vertical integration strategy can effectively reduce customers’ supply chain management costs and improve overall service value.

: With the customer base and market reputation established by Xinfeng Precision in the dicing equipment field, Tuojing Technology can accelerate the market penetration of 3D integration equipment and expand its market share in the advanced packaging field.

: In the context of semiconductor domestic substitution, integrating high-quality technical resources can improve the company’s overall industrial chain’s independent controllability and reduce dependence on imported equipment [1].

Although the strategic prospects are broad, the following risk factors need to be paid attention to:

• Loss status of Xinfeng Precision
  : May affect Tuojing Technology’s investment returns in the short term, and it takes time for technology to be converted into performance
• Technical integration difficulty
  : The deep integration of bonding technology with thinning and dicing technologies needs to overcome technical challenges such as process matching and equipment synergy
• Intensified market competition
  : As more enterprises enter the advanced packaging equipment field, industry competition may become fierce
• Downstream demand fluctuations
  : The cyclical characteristics of the semiconductor industry may lead to fluctuations in equipment demand

Tuojing Technology has completed an important strategic layout in the 3D integration field with relatively controllable costs and risks. From a long-term perspective, this investment decision has forward-looking significance:

1. 顺应产业趋势
   : 3D integration technology is a key technical path to break through the traditional two-dimensional physical limitations, which is in line with the development direction of the semiconductor industry
2. 加速国产替代
   : Driven by both policy support and market demand, domestic equipment manufacturers are ushering in a golden development period
3. AI demand pull
   : Global semiconductor sales are expected to reach 145 billion US dollars in 2026 and 156 billion US dollars in 2027, providing sufficient capacity digestion space for equipment manufacturers [1]

In conclusion, Tuojing Technology’s acquisition of Xinfeng Precision is a strategic move to improve its 3D integration industry puzzle and enhance domestic substitution capabilities. With the growth in demand for advanced logic circuits and memory chips brought by AI-related investment expansion, as well as the release of its own production capacity, Tuojing Technology is expected to achieve greater breakthroughs in the 3D integration field and further consolidate its leading position in the domestic semiconductor equipment field.

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[1] Caifuhao - “Breaking Technical Monopoly: Semiconductor Giant’s Profit Surges 600%!” (https://caifuhao.eastmoney.com/news/20251229081942054510140)

[2] Sina Finance - “Semiconductor Equipment Knowledge Explanation” (https://finance.sina.com.cn/roll/2025-12-03/doc-infzpsmz0013500.shtml)