Zhongwei Semiconductor (688380) Limit-Up Analysis: New Product Launch Drives Strategic Layout in the Storage Track

Zhongwei Semiconductor released the “Voluntary Announcement on the Launch of a New Product” [1] on January 20, 2026, introducing the

product—the company’s first 4M bit low-power SPI NOR Flash non-volatile memory chip entering the storage sector. The product has the following technical parameters: maximum support for 120MHz SPI clock frequency, standby power consumption of only 7μA, erase/write cycle life of 200,000 times, and data retention period of 50 years [1].

From a strategic perspective, this product fills the company’s gap in the Flash sector, marking a substantive step into the storage field [1]. It not only enriches the product portfolio but also expands application scenarios, enhancing the one-stop solution capability for intelligent control solutions. Although the NOR Flash market is relatively smaller in scale compared to DRAM and NAND Flash, the company can rely on this product to expand the capacity spectrum and serialization of Flash products, exploring new business growth drivers [1].

Indicator	Data	Market Implication
Closing Price	RMB 41.35	Hit the daily limit
Price Change	+19.99%	Closed at the daily limit
Volume Ratio	2.29	Trading volume increased by 129%
Turnover Rate	11.73%	Active chip turnover
Turnover Amount	RMB 799.1 million	Obvious capital buying frenzy

The share price surged rapidly to hit the daily limit after the market opened, showing obvious signs of capital buying frenzy. A volume ratio of 2.29 indicates that trading volume has increased significantly compared to the recent average, attracting extremely high market attention [0]. A turnover rate of 11.73% reflects active chip turnover, but considering the circulating share capital is only 169.1 million shares, the absolute number of traded shares is not particularly large. Notably, the company disclosed its Dragon and Tiger List information on January 20 due to a “daily closing price increase of 15%”, showing obvious characteristics of active capital buying [2].

is at RMB 41.35 (today’s daily limit price), the lower support range is RMB 37.00-38.00 (near today’s opening price), and the strong support level is around RMB 35.00. The short-term resistance level is in the previous high range of RMB 44.00-45.00 [0].

Zhongwei Semiconductor (Shenzhen) Co., Ltd. was founded in June 2001 and listed on the STAR Market on August 5, 2022. It is a national high-tech enterprise and a national specialized, sophisticated, unique, and new (“little giant”) enterprise [4]. The company is headquartered in Shenzhen, with 10 R&D centers in Beijing, Shanghai, Zhongshan, Chengdu, Chongqing, Hangzhou, and Singapore [4].

The company focuses on the R&D, design, and sales of

, with technical layout centered on chips and underlying algorithms required for intelligent controllers. It provides highly integrated SoC chips and supporting system solutions with underlying software algorithms for different segmented fields [4]. Its main products include 8-bit and 32-bit MCUs (core products), SoC chips, ASIC chips, and power devices, covering application fields such as household appliances, consumer electronics, industrial control (including brushless motor control), and automotive electronics [4].

The current price-to-earnings ratio (TTM) is approximately 81.53x, and the price-to-book ratio is approximately 5.44x [0]. China Post Securities recently gave the company an “Overweight” rating, expressing confidence in the company’s future development in its May 2025 report “Steady Revenue Growth, Profit Turned from Loss to Profit” and November 2025 report “Inflection Point is Coming” [3].

is the primary concern. No market promotion has been carried out after the product launch, and large-scale sales will rely on customer trial evaluations in the future, posing risks that market promotion and customer development may fall short of expectations [1].

cannot be ignored either. The NOR Flash market is highly competitive, and as a new entrant, the company faces challenges. Loss-making promotion may affect overall profitability [1]. In addition, the tilt of R&D resources toward storage products may crowd out investment in traditional MCU products, weakening the competitiveness of traditional products [1].

deserves attention. It is expected that 231.3 million shares will become tradable on February 5, 2026 [2]. The large scale of the unlock may put pressure on the short-term share price.

In terms of

, storage products have cyclical characteristics, which may lead to cyclical fluctuations in the company’s revenue [1].

The launch of the new product marks the entry of the company’s “MCU+” strategy into a new stage. If the company can successfully break into the storage market, it will open up a second growth curve for the company. The theme of domestic substitution of semiconductors continues to receive attention, demand for automotive chips is strong, and the storage track has medium- and long-term growth potential, providing a favorable external environment for the company.

It depends on the strength of the limit-up order and sector sentiment. If the stock can continue to close at the daily limit with increased volume, the strong momentum may continue; if the limit-up is broken with heavy volume, attention should be paid to the risk of a pullback. The short-term increase has reached 19.99%, so the risk of chasing the rally is high.

Focus should be placed on three aspects: the progress of customer verification of the new product, the performance of the 2025 annual report (scheduled to be disclosed on March 20) [2], and the progress of serialization of storage products.

The rally of this stock is

, with the core logic being the expectation of the extension of the “MCU+” strategy brought by the new product launch. It is recommended that investors pay attention to the progress of the new product’s promotion and the performance of the annual report, and carefully assess the risk of chasing the short-term rally. Investors may wait for a pullback and pay attention to the stock at a lower price combined with fundamental verification.

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[0] Eastmoney.com - Market Data and Technical Indicator Analysis of Zhongwei Semiconductor (688380)

[1] Zhongwei Semiconductor (Shenzhen) Co., Ltd. - Voluntary Announcement on the Launch of a New Product (2026-01-20)

[2] Eastmoney.com - Dragon and Tiger List Data and Restricted Share Unlock Information of Zhongwei Semiconductor (2026-01-20)

[3] China Post Securities Research Reports - “Steady Revenue Growth, Profit Turned from Loss to Profit” (2025-05-29), “Inflection Point is Coming” (2025-11-18)

[4] Eastmoney.com - Company Overview and Main Business Introduction of Zhongwei Semiconductor