Southchip Semiconductor Technology (Shanghai) (688484.SH) plans to spend no more than 160 million yuan to acquire 100% equity of Shengsheng Micro to expand its product categories in the end-side processor field.

Southchip Semiconductor Technology (Shanghai) (688484.SH) announced that the company intends to acquire 100% equity of Zhuhai Shengsheng Microelectronics Co., Ltd. ("Shengsheng Micro" or "target company" or "transaction target") in cash, with a total acquisition price not exceeding 160 million yuan. It is reported that Shengsheng Micro is a company that provides end-side application processor chips and analog and digital mixed signal chip solutions, mainly engaged in the research and development, production, and sales of RISC-V processors, POWERMCU microcontroller chips, and supporting power management chips. Shengsheng Micro's products mainly serve end-side devices, providing processing chips and solutions for power and energy management in wearable, consumer, industrial, and other fields. This transaction is beneficial for both parties to integrate their products, technology, markets, customers, and supply chain resources, and to achieve synergies in the embedded field, in line with the company's development vision and long-term strategic planning. Through this transaction, the company will integrate the target company's technical capabilities and R&D team in the field of embedded chip design and development, helping to strengthen the company's technical advantages in embedded chip hardware, IP, algorithms, software, etc. At the same time, this transaction will expand the company's product categories in the end-side processor field and expand the scope of cooperation with customers. In terms of supply chain, through the integration of supply chain resources with the target company, the company will leverage economies of scale to further enhance the cost advantages of raw material procurement for both the company and the target company.