Huaqin lifts Nexchip stake to 10.48% with US$22.8M share buy
What's the deal? Huaqin Telecom, a wholly-owned subsidiary of Huaqin Co., Ltd., bought 6,259,800 H shares in Nexchip Semiconductor for about US$22.9M on July 17, 2026. The on-market purchase, at roughly US$3.65 per share, lifts the group's total stake to about 10.48%.
Why now? The deal caps a year-long accumulation. Huaqin bought 6.0% in August 2025, 5.0% in May 2026, and smaller tranches on July 10 and July 16, 2026.
What's the endgame? Huaqin says it intends to hold the stake long term, aiming to deepen resource integration and explore industrial and investment synergies with Nexchip. Nexchip runs 12-inch wafer foundry manufacturing and is listed on Shanghai's STAR Market and Hong Kong's Main Board.
By the numbers: Nexchip reported revenue of US$1.5B in 2025, up from US$1.27B in 2024, and US$400.1M in the first quarter of 2026. Net profit attributable to shareholders was US$96.8M in 2025, versus US$73.3M a year earlier. Total assets stood at US$7.52B as of March 31, 2026.
The fine print: Combined with the earlier purchases, the deal counts as a "discloseable transaction" under the Hong Kong Listing Rules. The aggregate ratios sit above 5% but below 25%, requiring public disclosure but not shareholder approval. Huaqin funded the purchase from internal resources and says it will not materially affect the group's finances.
The signal: A hardware maker taking a sizeable minority position in a foundry points to tighter vertical ties across China's semiconductor supply chain. The stake gives Huaqin a foothold that could underpin closer cooperation and influence over Nexchip's direction.
Read more: Minichart
Image credit: IBM Research
