Xin'ai Technology Completes New Funding Round to Advance R&D and Mass Production of High-End Packaging Substrates

Xin'ai Technology (Nanjing) Co., Ltd. (hereinafter "Xin'ai Technology"), a supplier of high-end packaging substrates, recently announced the completion of a new funding round, bringing its total social capital raised to over 2.5 billion RMB. New investors in this round include BYD, Yuexiu Industrial Fund, Sunshine Insurance Ronghui Capital, and Gaoyuan Capital, while existing shareholders also continued to increase their stakes. Gaorong Ventures invested in Xin'ai Technology's Pre-A round in 2021 and participated in subsequent rounds.

This round of financing, particularly the strategic investments from automotive industry chain companies, will further strengthen Xin'ai Technology's ability to commercialize products in the automotive electronics sector.

Building a Diverse Product Portfolio Widely Used in Consumer Electronics, Automotive Electronics, and Other Fields

Packaging substrates are critical carriers in the packaging and testing process, accounting for more than half of packaging costs. Substrates not only provide support, heat dissipation, and protection for chips, but also enable electrical connections between chips and PCBs. As demand grows from industries such as 5G, automotive electronics, AI, HPC, and data centers, the market for packaging substrates continues to expand. At the same time, substrates are evolving toward higher layer counts, finer circuitry, and larger dimensions. The increased process complexity brings challenges such as lower yields and reduced output, placing new demands on substrate manufacturers. The domestic production of high-end substrates has become a critical link in breaking through bottlenecks in the semiconductor supply chain.

Xin'ai Technology's team brings together interdisciplinary talent in IC design, substrate R&D, and manufacturing. The company focuses on the R&D, design, production, testing, and sales of packaging substrates. Xin'ai Technology has already built a diverse product portfolio, offering Coreless ETS, FCCSP, FCBGA (BT), and FCBGA (ABF) substrates, with applications spanning consumer electronics, automotive electronics, artificial intelligence, and data centers.

In July 2023, Xin'ai Technology began sampling and testing its Coreless ETS, FCCSP, and FCBGA (BT) products. The sampling customers included major packaging houses both domestically and internationally. The first batch of samples passed customer certification within just two months and secured mass production orders.

Accelerating Mass Production of Innovative Products

In terms of production capacity, Xin'ai Technology is building a packaging substrate manufacturing base with high precision, high cleanliness, high automation, and high intelligence. The company has completed debugging of its FCBGA production line and expects to begin material input and sampling within this month, with mass production targeted for the second half of 2024.

Chuihong Zhang, inventor of the mobile phone Coreless ETS substrate and Chairman of Xin'ai Technology, stated: "We deeply understand that as technology and industry evolve, innovation has become critically important. Xin'ai Technology is not satisfied with making me-too products. We believe in our innovative capabilities and are confident we can provide better solutions for the industry. Xin'ai Technology is committed to its mission, and will establish and break through various technologies in the shortest possible time to achieve mass production at scale."