Introduction
China’s semiconductor material industry is rapidly accelerating in 2025. Domestic companies are actively expanding through acquisitions, equity investments, and large-scale projects. These moves strengthen China’s position in the global semiconductor supply chain.
From high-purity gases to ultrapure silicon wafers, these companies are shaping the future of semiconductor manufacturing.
Here’s a detailed look at the top five Chinese companies driving semiconductor material growth in 2025.
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5-Point Overview:
Huahai Chengke acquires 70% of Hysol Huawei, boosting its electronic packaging material production for semiconductor chips.
Sunflower pivots from photovoltaics to high-end semiconductor materials, including high-purity gases and precursors.
Adchem advances thin-film and functional film solutions through Series E funding and a joint venture with Japan’s Tri Chemical Laboratories.
Pannersi expands ultrapure silicon wafer production, positioning itself as a key global supplier of etched silicon materials.
Skychem and Yilong Electronics drive innovation in high-purity phosphine and electronic chemicals, supporting both semiconductor and solar energy industries.
1. Huahai Chengke: Expanding Through Strategic Acquisitions
On September 22, 2025, Huahai Chengke received approval from the China Securities Regulatory Commission to acquire 70% of Hysol Huawei for RMB 1.12 billion. The company will use a combination of shares, convertible bonds, and cash for the transaction, while raising up to CNY 800 million from investors.
Hysol Huawei specializes in electronic packaging materials such as packaging resin, glue, and fillers. With an annual production capacity of 5,000 tons, it serves major domestic semiconductor packaging manufacturers. This acquisition positions Huahai Chengke as a stronger player in integrated circuit packaging, enhancing both production and market reach.
Key Highlights:
- Expands packaging material production capabilities.
- Serves mainstream domestic semiconductor manufacturers.
- Boosts China’s domestic semiconductor ecosystem.
2. Sunflower: Transforming into Semiconductor Materials
Sunflower, originally a solar module company, has pivoted to the pharmaceuticals and health sector after facing cyclical fluctuations in photovoltaics. On September 21, Sunflower announced the acquisition of 100% of Zhangzhou XiPu Material and 40% of Zhejiang Beide Pharmacy.
XiPu Materials develops high-end semiconductor materials, including high-purity electronic gases like silane, germanium, and phosphine, as well as silicon- and metal-based precursors. These products are vital in semiconductor manufacturing, making Sunflower a rising force in China’s high-tech materials industry.
Key Highlights:
- Focused on high-purity gases and precursors.
- Supports critical semiconductor manufacturing processes.
- Strategic pivot from solar modules to high-tech materials.
3. Adchem: Leading in Thin-Film Semiconductor Materials
Adchem, backed by Sinochem, completed its Series E funding on September 18. This funding will accelerate R&D and industrialization in semiconductor thin-film materials.
Founded in 2018, Adchem is a high-tech enterprise specializing in nanoscale functional film growth technology. It provides electronic-grade thin films and functional solutions for integrated circuit manufacturing.
Earlier this year, Adchem signed a joint venture agreement with Japan’s Tri Chemical Laboratories to build a project in Hefei for high-purity precursors and electronic-grade solvents. This collaboration highlights China’s increasing international partnerships in semiconductor materials.
Key Highlights:
- Advanced nanoscale thin-film technologies.
- Collaboration with Japanese semiconductor leaders.
- Strengthens China’s domestic thin-film material capabilities.
4. Pannersi: Scaling Ultrapure Silicon Materials
Founded in 2021, Jiangxi Pannersi specializes in ultrapure silicon wafers, including grinding, etching, and polishing. Its wafer sizes range from 4 to 8 inches, with 4–6 inches as the main focus.
Recently, Pannersi closed Series A funding of nearly RMB 100 million to expand production. Its Jingdezhen base will eventually produce:
- 16 tons of large-diameter single crystals.
- 24 million 3–6 inch milled wafers.
- 4.8 million 3–8 inch polished wafers annually.
Pannersi’s growth positions it as a key global supplier of etched silicon materials, supporting international semiconductor manufacturing needs.
Key Highlights:
- Specializes in ultrapure silicon wafers.
- Rapid expansion of international orders.
- Strengthening China’s global semiconductor material presence.
5. Skychem & Yilong Electronics: Advancing High-Purity Gases
Skychem, a listed provider of functional wet electronic chemicals, invested RMB 50 million in the Shanghai Junhua Fuchuang Electronic Materials Fund. The fund focuses on high-precision electronic chemicals, including special gases, precursors, and packaging materials.
Meanwhile, Yilong Electronics recently topped out its high-purity phosphine project in Guiyang, Guizhou. This project will produce:
- 200 tons of high-purity phosphine annually.
- 500,000 Nm³/a of phosphine diluted gas distribution.
The facility targets semiconductors and photovoltaic solar energy, with operations expected by the end of 2025.
Key Highlights:
- Focus on high-purity phosphine and electronic gases.
- Supports both semiconductor and solar industries.
- Investment accelerates domestic electronic chemical innovation.
Why These Companies Matter for 2025
The activities of Huahai Chengke, Sunflower, Adchem, Pannersi, Skychem, and Yilong Electronics show a clear trend: China is accelerating its domestic semiconductor material capabilities. Through:
- Strategic acquisitions
- International collaborations
- Large-scale R&D projects
China aims to reduce reliance on imports and strengthen self-sufficiency in critical semiconductor materials.
The growth of these companies also highlights opportunities for global partnerships, as they integrate advanced technologies, expand production, and serve both domestic and international markets.
Future Outlook
China’s semiconductor material industry is poised for substantial growth. By 2026 and beyond, we can expect:
- Increased production of high-purity gases and wafers.
- Expanded thin-film and functional film solutions.
- Strengthened domestic and international collaborations.
With these developments, China is not just meeting domestic semiconductor demand—it is becoming a global competitor in semiconductor materials.
Conclusion
China’s semiconductor material industry is charging ahead in 2025. With strategic acquisitions, cutting-edge R&D, and high-purity production, companies like Huahai Chengke, Sunflower, Adchem, Pannersi, and Skychem are not just strengthening domestic capabilities—they’re reshaping the global semiconductor landscape.
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