The operating revenue of Leadyo from 2017 to 2019 is 129 million yuan, 138 million yuan and 232 million yuan respectively. With the continuous growth of the domestic chip industry, chip testing is becoming more and more professional and large-scale. More and more chip test demand turns to the domestic market, which leads to the rising trend of domestic chip test revenue growth.

     "We want to defend the position of chip testing industry." Recently, Huang Jiang, chairman of Leadyo, told Shanghai Securities News that the current domestic third-party chip testing industry is relatively small, and many other enterprises in the chip industry chain are attached with test supporting business, so some people in the industry have always thought that chip testing is in a subsidiary position in the industry chain.

       Since its establishment in 2010, Leadyo has developed into one of the well-known third-party chip testing service providers in China. In Huangjiang's view, chips are the products of design companies, which have intellectual property rights, ownership and discourse power of supply chain choice. However, the scale of the industry determines the depth of division of labor. With the continuous expansion of the scale of the domestic chip industry, chip testing is bound to gain its due position in the professional division of labor in the industrial chain.

       Today, Leadyo has landed on the science and technology innovation board, and has become the first domestic third-party chip testing stock. Huangjiang hopes to take the company's listing as an opportunity to work together with domestic chip testing peers to make the market bigger, so as to fulfill the company's mission of "benefiting the national brand and promoting the core of China".

       Be a good chip quality supervisor

       What is chip testing? Huangjiang takes the construction building as an example to illustrate the image. The chip design company is responsible for the design and planning of the building drawings, the wafer factory is responsible for the construction and manufacturing of the building according to the drawings, the packaging factory is like a decoration team, and the chip testing is the quality supervisor. From the building construction to the decoration delivery, whether the original design requirements are met, whether there are supporting problems, whether the guests can carry the bags and check in, whether there are defects or hidden dangers, we need the chip test supervisor to do the third-party verification and acceptance.

       Currently, Leadyo is one of the well-known third-party chip testing service providers in China. Its main business includes integrated circuit testing scheme development, 12 inch and 8 inch wafer testing service, finished chip testing service, and supporting services related to integrated circuit testing.

     "We are the women who provide support behind the successful men." According to Huang Jiang, although the strength of Liyang chip was not strong at the initial stage of entrepreneurship, and the domestic chip design company was just starting at that time, the company chose the business model of professional chip testing, which can grow together with customers.

       Collaborative growth with customers also improves customer loyalty. According to the prospectus, Leadyo attaches great importance to the management and maintenance of customer resources. Through participating in customer engineering technology seminars, continuously developing and optimizing test solutions, and providing a special test platform, Liyang chip continuously strengthens the interaction with customers and improves customers' stickiness to the company.

       Huang Jiang said frankly that he has more than 30 years of working experience and has a deep understanding of the product market and the development trend of the industry. At the key nodes, chip testing can help customers shorten the time to market, so as to seize the market.

       At the same time, considering the production capacity guarantee, technical confidentiality and the operation cost of changing suppliers, the long-term strategic cooperation between Leadyo and customers has high stability. This has contributed a lot to the sustainable development of Liyang chip's business and become one of the company's core competitiveness.

       At present, the customers of Liyang chip include: huiding technology, Quanzhi technology, national technology, Neusoft carrier, Ruineng micro, bitmicro, southwest integration, ZTE micro, Zhixin micro, Ziguang Tongxin, Jichuang north, Boya technology, Huada semiconductor, Gaoyun semiconductor and many other well-known chip design enterprises in the industry.

       Third party chip testing

       Although Liyang chip is growing gradually, the overall volume of domestic chip testing industry is still small, and some people even think it is an dispensable "minor supporting role".

       At present, the testing needs of chip design companies are shared by the upstream and downstream enterprises in the industrial chain. In the IC industry chain, there are third-party professional testing companies, integrated packaging and testing companies, wafer foundry companies and chip design companies, all of which are involved in wafer testing and chip product testing. Compared with other types of manufacturers, domestic third-party professional testing manufacturers started late, scattered and small.

       However, with the continuous growth of the domestic chip industry, chip testing is gradually becoming professional and large-scale. "The depth of industrial division depends on the scale of industry." Huang Jiang believes that if the scale of the chip industry is large enough, the depth of industrial division will become more obvious. The business model of third-party professional testing, such as Liyang chip, is in line with the development trend of the chip industry.

       The prospectus shows that with the development of cloud computing, Internet of things, big data and other emerging fields, China's chip market has always maintained a steady growth trend. In 2019, the total sales volume of China's chip market will reach 756.23 billion yuan, with a year-on-year growth of 15.77%.

       According to Huang Jiang, the cost of chip testing roughly accounts for 6% to 8% of the total cost of chips. A simple calculation shows how huge a "cake" the testing industry is. Especially in recent years, more and more chip test demand turns to the domestic market, which leads to the rising trend of domestic chip test revenue growth.

       In addition, the chip manufacturing process continues to break through the physical limit, the chip function is becoming more and more complex, and the capital expenditure is increasing. More and more wafer manufacturing and packaging manufacturers gradually reduce the investment budget of testing. According to the prospectus, the lack of capacity in chip testing has ushered in a good opportunity for the development of third-party chip testing.

       We need to take advantage of the capital market

       Chip industry is a capital and technology intensive high-tech industry. In the 10 years since the founding of Liyang chip, Huang Jiang and others have been thinking about how to connect Liyang chip with the capital market, so as to broaden the financing channels.

     "Without the help of the capital market, it is difficult to become bigger and stronger." Huang Jiang recalled that the reason why they dared to start a business was that they saw that private enterprises also had the opportunity to develop and grow with the help of capital, which provided some expectations and goals for the company to finance in the capital market.

       Huang Jiang, who has been in the chip industry for many years, invested 15 million yuan to establish Liyang chip in 2010. However, in the early stage of entrepreneurship, Huang Jiang and others operated with their own funds and lacked financing channels, which led to the difficult growth of the company in the past few years.

       Affected by the financial crisis, the chip industry at that time was at a low ebb. Liyang chip took the opportunity to buy a lot of production equipment at a lower price and set up the initial chip testing industry chain.

      In view of the fact that R & D investment and capacity expansion are constrained by capital strength, Huang Jiang and others have been actively concerned about and embracing the reform of the capital market. Liyang chip decided to seek financing on the new third board to help the development of the company.

       Leadyo was listed on the new third board on September 7, 2015 and delisted on the new third board on September 23, 2020. During the past five years, Liyang chip has repeatedly implemented fixed increase and other financing means. According to the prospectus, the current registered capital of Liyang chip is 102.3 million yuan, and the operating revenue from 2017 to 2019 is 129 million yuan, 138 million yuan and 232 million yuan respectively.

       The establishment of the science and technology innovation board has given Huang Jiang and others new development opportunities. Because the chip testing industry that Liyang chip is engaged in belongs to the field of new generation information technology. It is a high-tech industry and strategic emerging industry in the seven major industries in line with the positioning of science and technology innovation board. It is also a key industry supported by the state.

       At present, many domestic chip companies choose to be listed on the science and technology innovation board, covering wafer foundry, equipment manufacturing, chip design, large silicon and other fields, but there is no chip testing company. The listing of Liyang chip on the science and technology innovation board can just fill this vacancy. Huangjiang said with pride: "everything is the best arrangement. A powerful country will strengthen its core, and China will come on!"