Tuojing Technology Invests in Xinfeng Precision: Ramping Up Layout of 3D Integration Equipment

Based on the latest investment announcements and industry research reports, let’s systematically analyze this investment event and its impact on technological trends.

On December 5, 2025, Tuojing Technology (688072.SH) issued an announcement, planning to acquire a

in Xinfeng Precision for no more than [1][2]. Xinfeng Precision’s main business is the R&D and production of thinning, ring cutting, dicing equipment and consumable products, whose products are mainly applied in and advanced packaging process links [1][2].

From the financial data perspective, Xinfeng Precision is still in a loss-making state: 2024 revenue was 56.35 million yuan, net profit was -30.88 million yuan; H1 2025 revenue was 15.86 million yuan, net profit was -7.18 million yuan [1]. The pre-investment valuation for this financing is set at 1.8 billion yuan [1].

Tuojing Technology and Xinfeng Precision have high industrial synergy:

1. Technological Complementarity
   : Tuojing Technology focuses on thin film deposition equipment and advanced bonding equipment, while Xinfeng Precision specializes in thinning and ring cutting processes
2. Process Synergy
   : In the 3D integration process flow, thinning, ring cutting and bonding are highly synergistic, belonging to key front and back-end processes
3. Overlapping Application Areas
   : Both products are applied in advanced memory, image sensors and other fields

Tuojing Technology stated that this investment aims to

[1][2].

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According to research data from Yole Group and Kaiyuan Securities, the global advanced packaging market shows strong growth momentum:

Period	Market Size	2.5D/3D Packaging Share	CAGR
2023	37.8 billion USD	14.5 billion USD	-
2025 (Est.)	47.6 billion USD	18.5 billion USD	-
2029 (Est.)	69.5 billion USD	34.5 billion USD	11%

Data Source: Kaiyuan Securities 《High-end Advanced Packaging: Key Base for AI Era Industry Deep Report》 [3]

is the core equipment for 3D integration:

• 2025 revenue scale: 542 million USD
• 2030 forecast: 936 million USD
• CAGR:
  11.6%

This growth rate is among the higher levels in the semiconductor upstream equipment field [4].

1. AI-driven Demand
   : With the development of large models and HPC, the demand for 3D integration technology in AI chips has surged
2. From Optional to Mandatory
   : Advanced packaging is shifting from optional optimization to a basic strategy to meet modern AI and HPC workloads [4][5]
3. Chiplet Architecture Popularization
   : Major customers such as AMD and NVIDIA promote the wide adoption of chiplet architecture
4. Capacity Expansion
   : TSMC’s CoWoS capacity is expected to reach 10 times that of 2023 by 2026 and 15 times by 2027 [4]

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• AI computing power demand drives chips toward 3D stacking
• HBM memory and high-performance computing chips become core application scenarios

• The maturity speed of 2.5D and 3D design methods exceeds expectations
• EDA processes have kept up with the development of packaging physics
• UCIe 3.0 specification released, reducing multi-chip design risks [5]

• Domestic semiconductor equipment enterprises receive fixed increase support (Tuojing Technology plans a 4.6 billion yuan fixed increase)
• Industrial capital accelerates layout in the 3D integration equipment track

• The localization rate of advanced packaging equipment still has large room for improvement
• Enterprises like Tuojing Technology have realized mass production applications in advanced memory and image sensor fields

• Chiplet yield issues have not been fully resolved [5]
• Thermal and mechanical stress analysis has become a necessary condition
• The complexity of multi-physics field integration analysis is high

• The cost of 3D integration processes is still high
• Equipment and material costs account for a large proportion

• The global market is dominated by international manufacturers such as South Korea’s Hanmi, ASMPT, and K&S
• Domestic equipment needs time for verification and capacity ramp-up

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Tuojing Technology’s investment in a 16% stake in Xinfeng Precision

, but whether it will become a “new trend” needs to be viewed dialectically:

• 3D integration technology is already in a rapid growth phase, and related equipment investment has high certainty
• Xinfeng Precision is still in loss, so the investment has certain
  venture capital attributes
• The 1.8 billion yuan valuation reflects the market’s expectations for the track’s growth relative to its current scale (H1 2025 revenue was only 15.86 million yuan)

• AI and HPC demand will continue to drive the development of 3D integration technology
• The advanced packaging market is expected to show a
  blowout situation
  in 2025-2026 [4]
• The room for domestic substitution of equipment is broad, and policy support remains strong

3D integration technology

, but investors should note:

1. Pay attention to the progress of technology maturity and yield improvement
2. Track the capacity expansion plans of leading manufacturers (TSMC, NVIDIA, etc.)
3. Value equipment enterprises with core technical capabilities

Through this investment, Tuojing Technology has

and is expected to occupy a favorable position in the domestic 3D integration technology development wave.

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[1] Phoenix Finance - Tuojing Technology plans to co-invest in Xinfeng Precision to ramp up semiconductor industry layout (https://finance.ifeng.com/c/8oqXIM2jehB)

[2] Sina Finance - Tuojing Technology plans to co-invest in Xinfeng Precision (https://finance.sina.com.cn/roll/2025-12-08/doc-inhaarpa3600956.shtml)

[3] Caifuhao - 2025 Semiconductor Industry Core Trends and Market Dynamics Report (https://caifuhao.eastmoney.com/news/20251224225052254132840)

[4] ESM China - Advanced Packaging Market on the Cusp: From Optional to Mandatory (https://www.esmchina.com/news/13662.html)

[5] The Paper - 2025 Semiconductor Industry Review: AI, Supply Chain and Emerging Technologies (https://m.thepaper.cn/newsDetail_forward_32254399)