Saiying Electronics Achieves 95% Localization Rate for Power Semiconductor Packaging Materials: Analysis of Technical Barriers

Based on the searched information, I will provide a detailed analysis of the localization rate and technical barriers of Saiying Electronics’ power semiconductor packaging materials.

Founded in 2002, Saiying Electronics is a national high-tech enterprise specializing in the R&D, manufacturing, and sales of key components for power semiconductor devices such as

and [1]. The company’s products are mainly used in power semiconductor devices such as thyristors, IGBTs, and IGCTs, covering the entire industrial chain of power systems including power generation, transmission, transformation, distribution, and consumption. They play an important role in fields such as UHV power transmission and transformation, new energy power generation, industrial control, new energy vehicles, intelligent computing centers, and rail transit [1].

Power semiconductor packaging materials are one of the technically challenging links in the entire industrial chain. According to industry data, there are significant differences in localization rates across different segments of power semiconductors:

• Planar MOSFET: 54.2%
• Trench MOSFET: 49.7%
• Super Junction MOSFET: 34.6%
• Automotive-grade IGBT: ~20%
• SiC Substrate: ~30%
• SiC Module: <10%
  [2]

In the field of power semiconductor packaging materials, key components such as ceramic packages and DBC (Direct Bonded Copper) substrates have long relied on imports. Saiying Electronics’ achievement of a 95% localization rate means it has broken foreign technical blockades in this critical link of packaging materials.

The company’s core products include:

• Ceramic Packages
  : 1-6 inch ceramic packages for thyristors, ceramic packages for press-pack IGBTs
• Packaging Heat Dissipation Substrates
  : DBC substrates, etc.

These products are directly used in power semiconductor devices such as thyristors, IGBTs, and IGCTs, and are key functional components [1].

The production of ceramic packages involves:

• Structural Design
  : Customized design for different application scenarios
• Mold Design and Development
  : Design and manufacturing of high-precision molds
• Ceramic Metallization
  : Achieving metallization on ceramic surfaces, a core technical challenge
• Welding of Ceramic Parts and Metal Materials
  : Multi-medium welding technology
• Surface Treatment and Electroplating
  : Ensuring product reliability and stability

The production of packaging heat dissipation substrates involves:

• Precision manufacturing processes such as CNC machining, stamping, cold forging, pre-bending, and electroplating

Through continuous R&D and innovation, the company has overcome multiple technical challenges in the industry:

• Difficulty in High-Permeability Metallization Diffusion of Isostatically Pressed Ceramics
  : A key technical challenge in the ceramic metallization process
• High Internal Stress in Multi-Medium Welding
  : Stress concentration is prone to occur during welding, affecting product reliability
• Mastered the
  high-density isostatically pressed ceramic metallization diffusion
  technology
• Mastered the
  high-strength high-vacuum welding technology for extra-large diameter ceramics and metals
  [1]

Downstream customers have strict requirements for product

, which require:

• Long-term technical development
• Process improvement and experience accumulation
• Continuous R&D of new technologies and processes
• Improvement of production process control capabilities

Leading enterprises in the power semiconductor industry are mostly well-known large domestic and foreign enterprises, which have high requirements for the stability and reliability of suppliers’ products. The customer certification cycle is long:

• Requires sample trial production
• Process technology verification
• Multiple stages such as small-batch production
• High supplier switching costs [1]

The company has established long-term, stable cooperative relationships with semiconductor industry leaders and well-known enterprises including

[1]. This customer resource barrier makes it difficult for new entrants to gain market recognition in a short period of time.

• The industry has obvious production scale effects
• A certain production scale is required to effectively reduce comprehensive production costs
• Downstream customers assess suppliers’ mass supply capabilities
• Small enterprises have poor risk resistance and are vulnerable to raw material price fluctuations [1]

The company’s competitiveness can be seen from its financial data:

Indicator	2022	2023	2024	H1 2025
Operating Revenue (CNY 100 million)	2.19	3.21	4.58	2.89
Net Profit (CNY 10,000)	4392	5506	7390	4386
Gross Margin	33.02%	31.36%	30.09%	31.53%
Top 5 Customers Revenue Contribution	90.5%	82.22%	80.92%	79.46%[3]

Notably, although the company’s gross margin is higher than that of its peers, its R&D expense ratio is relatively low:

• Saiying Electronics’ R&D expense ratio: 3.8%, 3.21%, 3.16%, 3.78%
• Average R&D expense ratio of comparable peers: 5.49%, 5.74%, 6.42%, 4.51% [3]

This reflects that the company has established a relatively mature technical system, with technical barriers mainly reflected in process accumulation and customer relationships.

1. Technical Dimension
   : ★★★★☆
   • Integration of multi-process complex technologies
   • Core technologies require long-term accumulation
   • High difficulty in technological breakthroughs

2. Customer Dimension
   : ★★★★☆
   • Long certification cycle
   • High switching costs
   • Stable relationships with leading customers

3. Scale Dimension
   : ★★★☆☆
   • Obvious scale effects
   • Cost disadvantages for new entrants

1. Breaking “Chokepoint” Constraints
   : Achieving independent control in the critical link of power semiconductor packaging materials
2. Industrial Chain Security
   : Providing material support for strategic fields such as UHV, new energy vehicles, and intelligent computing centers
3. Technical Accumulation
   : Over 20 years of focused R&D has formed a deep technical moat

Overall, Saiying Electronics’ 95% localization rate reflects its technical strength in the field of power semiconductor packaging materials. The technical barriers are mainly reflected in

, , and , among others. New entrants need a long time to break through these barriers, but against the backdrop of domestic substitution, the industry competition pattern is relatively stable.

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[1] Prospectus of Jiangyin Saiying Electronics Co., Ltd., Soochow Securities, 2025
[2] A Discussion on Technological Innovation and Localization Process in the Power Semiconductor Industry, NEPCON China, 2024
[3] Saiying Electronics: Top 5 Customers Contribute 80% of Revenue; High Gross Margin Cannot Mask Low R&D Shortcomings, Sina Finance, December 2025