Tengxin Precision’s semiconductor components business has generated incremental revenue and gross profit, while Kent Catalysts’ semiconductor opportunity depends primarily on developing electronic chemicals customers and utilizing its production capacity.
How much has Tengxin Precision’s semiconductor business grown?
In the first half of 2026, Tengxin Precision’s semiconductor equipment components revenue reached 82.1% of its full-year revenue in 2025. The business posted a gross margin of 50.50% during the same period, above the company-wide gross margin, and has contributed a noticeable increase in revenue and gross profit.
Its products are used mainly in molecular vacuum pumps, dry vacuum pumps, and pressure stabilization and flow control equipment, and have entered the supply chains of manufacturers including Edwards and MKS. Mass production of customers’ new products, increased purchasing share and optimized machining processes are key to further scaling the business.
Shen Qian of Zheshang Securities forecasts net profit attributable to shareholders of 254 million, 345 million and 423 million yuan, respectively, for 2026–2028, representing year-on-year growth of 35.67%, 35.87% and 22.78%. The report identifies fluctuations in downstream demand as a risk.
How is Tengxin Precision advancing toward becoming a more direct equipment supplier?
The company currently operates more as a second-tier supplier in the semiconductor equipment sector. The report sees potential for it to become a first-tier supplier in the supply chains of customers such as AMEC and NAURA, supplying equipment customers more directly.
AMEC Semiconductor, a subsidiary of AMEC, participated in Tengxin Precision’s strategic placement. The two sides signed a strategic cooperation agreement and plan to cooperate on the supply, joint research and development, and process optimization of precision components for vacuum systems, gas and flow control, and related applications.
The company’s experience in machining difficult-to-process materials and complex structures such as thin walls and micropores, together with its flexible manufacturing capability for small-batch orders, provided a foundation for entering semiconductor equipment components.
Why is Kent Catalysts targeting HBM packaging cleaning?
Backside processes in HBM manufacturing, including thinning, require the removal of temporary adhesive. The report says ordinary solvents struggle to remove adhesive residue completely, while hydrofluoric acid is highly toxic and water-based systems can corrode metals on device surfaces. Cleaning formulations have therefore shifted toward quaternary ammonium fluoride and organic solvent systems.
Kent Catalysts has listed tetrabutylammonium fluoride (TBAF) among its main products. Its interim report calls for a focus on electronic chemicals and the development of leading customers; its fundraising project plans 1690 tonnes of capacity for TBAF and its intermediates. The report considers TBAF a potential core ingredient in cleaning agents, but customer development and utilization of the funded capacity will affect whether growth materializes.
The company’s existing business is based on quaternary ammonium and quaternary phosphonium compounds. Its Xianju and Jiangxi bases have combined designed capacity of approximately 30.7 thousand tonnes. Liu Hairong of China Post Securities forecasts net profit attributable to shareholders of 104 million, 136 million and 174 million yuan, respectively, for 2026–2028. Actual attributable net profit in 2025 was 82.43 million yuan, down 11.83% year on year.
