Analysis of the Strategic Impact of Shanghai SASAC's Acquisition of Controlling Stake in Jianghua Microelectronics (603078.SZ)

Based on comprehensive data collection and analysis, below is an in-depth analysis report on the strategic impact of Shanghai SASAC’s entry into Jianghua Microelectronics:

Based on the latest data, Jianghua Microelectronics demonstrates stable financial characteristics[0]:

As a core hub of China’s integrated circuit industry, Shanghai has formed a complete industrial chain layout[1][2]:

• Chip Design
  : High-end processor chips for cloud computing, AI, 5G and other fields
• Manufacturing and Packaging & Testing
  : 12-inch advanced processes, third-generation compound semiconductors
• Equipment and Materials
  : Lithography equipment, etching equipment, wet chemicals, electronic specialty gases

• Zhangjiang Integrated Circuit Design Industrial Park
• Oriental Core Harbor
• Electronic Chemicals Zone (specifically for wet electronic chemicals)

Shanghai’s newly released Three-Year Action Plan for Supporting the Transformation and Upgrading of Advanced Manufacturing (2026-2028) clearly states[3]:

“Support integrated circuit enterprises to focus on equipment, advanced processes,

photoresist materials

, and 3D packaging, achieve breakthroughs across the entire industrial chain, and cultivate a number of leading enterprises with international competitiveness.”

• For products meeting the conditions of first-batch new materials, support will be given at up to 30% of the product sales contract amount, with a maximum limit of RMB 20 million
• For enterprises with annual R&D expenses exceeding RMB 100 million, a one-time subsidy of RMB 10 million will be provided
• For enterprises with annual R&D expenses between RMB 50 million and RMB 100 million, a one-time subsidy of RMB 5 million will be provided

The Shanghai SASAC system has strong capital strength[4]:

• China Pacific Insurance has invested a total of over RMB 20 billion in the National Venture Capital Fund, National Manufacturing Transformation and Upgrading Fund, and Shanghai Science and Technology Innovation Phase II Fund
• Investments cover strategic emerging industries such as information technology, high-end manufacturing, and biomedicine
• Lingang Group has built 47 various laboratories and formed 10 industry databases

• Wet electronic chemicals (ultra-high purity reagents)
• Photoresist and supporting materials
• Key process materials for integrated circuits

After Shanghai SASAC’s entry into Jianghua Microelectronics, the following can be achieved:

1. Stable supply of upstream raw materials
   : Rely on resources from Shanghai Chemical Industry Park to ensure raw material supply
2. Downstream customer introduction
   : Connect with wafer fabs such as SMIC, Hua Hong Semiconductor, and Shanghai Jita
3. Improved supply chain efficiency
   : Reduce logistics costs and shorten delivery cycles

• Connect with R&D platforms such as Zhangjiang Laboratory and National Integrated Circuit Innovation Center
• Conduct basic research in collaboration with universities and research institutes
• Jointly build pilot test platforms to provide application scenarios and test environments

• Development of wet chemicals for advanced processes
• Photoresist supporting materials for 28nm and below process nodes
• Cleaning solutions for third-generation semiconductors

Based on Shanghai’s industrial policy support and capital advantages, Jianghua Microelectronics is expected to achieve breakthroughs in the following aspects:

• Leveraging Shanghai’s R&D subsidy policies, R&D expenses are expected to increase significantly from the current level
• Carry out joint R&D with enterprises such as Shanghai Microelectronics Equipment and Shanghai Hua Hong Grace Semiconductor
• Break through key material technologies for 14nm and 7nm advanced processes

Resource Introduction from Shanghai SASAC
        ↓
Bind leading wafer fab customers (Hua Hong, SMIC, Jita, etc.)
        ↓
Enter the accelerated track of domestic substitution
        ↓
Market share increases from current ~5% to 10-15%

1. High-quality Track
   : Wet electronic chemicals are a key link in the integrated circuit industry chain, benefiting from the trend of domestic substitution
2. Strong Shareholder
   : Shanghai SASAC’s entry brings all-round improvements in policies, capital, and customer resources
3. Reasonable Valuation
   : A P/E ratio of 90.61x reflects the market’s high growth expectations for the company, which is within a reasonable range among comparable companies
4. Multiple Catalysts
   : Changes in trading system after resumption of trading, expectations of state-owned resource introduction, and inflection point of performance improvement

• Pay attention to market reaction after resumption of trading; the 23.96% stake and RMB 1.848 billion transaction amount demonstrate Shanghai SASAC’s recognition of the company’s value[0]

• Track the progress of capacity expansion and customer introduction
• Pay attention to asset integration actions of Shanghai SASAC

• The company is expected to become a core platform enterprise in Shanghai’s integrated circuit materials sector
• Benefiting from accelerated domestic substitution, the company’s performance is expected to achieve leapfrog growth

Shanghai SASAC’s entry into Jianghua Microelectronics is a typical “strong-strong collaboration” strategic initiative:

1. Great Strategic Significance
   : As a domestic leader in wet electronic chemicals, Jianghua Microelectronics obtains resource support from Shanghai, a national hub for the integrated circuit industry
2. Significant Synergy Effects
   : There are obvious synergy opportunities in multiple dimensions such as supply chain, R&D, and capital operations
3. Broad Development Prospects
   : Against the backdrop of domestic substitution, the company is expected to achieve technological breakthroughs and rapid market share growth via the state-owned asset platform
4. Prominent Investment Value
   : The current valuation reflects market expectations, and Shanghai SASAC’s entry provides strong support for the company’s future development

This change in control marks Jianghua Microelectronics’ strategic transformation from a regional enterprise to a national integrated circuit materials platform enterprise, and the company’s future development deserves focused attention from investors.

[0] Jinling AI - Jianghua Microelectronics (603078.SS) Company Profile and Financial Data

[1] Shanghai Municipal People’s Government - 14th Five-Year Plan for the Development of Advanced Manufacturing in Shanghai (https://www.shanghai.gov.cn/hqcyfz2/20230626/51d5411a4458456f83cc6ac2c5b879ed.html)

[2] Shanghai SASAC - Blue Book of Social Responsibility of Shanghai State-owned Assets and State-owned Enterprises (https://www.gzw.sh.gov.cn/cmsres/44/4426a5c4430841e8b032be3058a9da3c/c4ef441fe3a97ac3ba8abd0e9445bd30.pdf)

[3] General Office of Shanghai Municipal People’s Government - Three-Year Action Plan for Supporting the Transformation and Upgrading of Advanced Manufacturing in Shanghai (2026-2028) (https://www.shanghaiinvest.com/cn/viewfile.php?id=21544)

[4] EET China - “Maximum Subsidy of RMB 10 Million! Shanghai Formulates Action Plan to Support Integrated Circuit Enterprises” (https://www.eet-china.com/mp/a466471.html)