Chinese EDA software supplier Semitronix (广立微) plans to invest in a chip design software development and a testing base, according to a Yicai Global report on August 30.

The plan will involve RMB1.3 billion ($188 million) in the two IC service projects. RMB1 billion ($144.96 million) will be put into the chip design software development with one-stop EDA solutions. Based in Shanghai's free trade zone, it will also offer chip performance testing equipment and services to help wafer makers improve production yield and product reliability.

The remaining RMB300 million ($43.4 million) will be spent in Changsha in central China to focus on the IC EDA software business, while also setting up an R&D center for EDA and semiconductor big data software, as well as a regional headquarter there.

Founded in 2003, Hangzhou-headquartered Semitronix is a leading supplier of EDA software and parametric tester. The company went public on the Shenzhen Stock Exchange’s Nasdaq-like ChiNext board on August 5.

Semitronix returned to profit in the first half of the year with a 108.96% increase over the previous year, Yicai Global reported. 

The company’s net profit was RMB575,300 ($83,200) in the six months ended June 30, versus an RMB6.4 million ($925,100) loss a year ago, according to its earnings report published on August 29. Operating income jumped 72% to RMB77.7 million ($11.26 million) due to soaring demand. Net cash flow from operations was RMB71.5 million ($10.36 million), a 685% increase.

Semitronix did not release a construction schedule for the two projects but said annual revenue from the Shanghai base is expected to exceed RMB200 million ($28.99 million), with a tax payment of no less than RMB16 million ($2.3 million) in the first five years after completion. Tax payments by the Changsha base may increase year by year to RMB8.4 million ($1.2 million) in 2026.

The new Shanghai project would focus on services for chipmakers that supply new energy and auto electronics sectors, said the Yicai Global report.