Huawei is the largest customer! The first EDA stock is here: some technologies support 5nm

In the field of semiconductor chip design, EDA software is also a bottleneck core technology. After Huawei was sanctioned, American EDA giants such as Synopsys also announced that they would cut off their supply. Now the first domestic EDA stock, Huada Jiutian, has confirmed that it will be listed on the Science and Technology Innovation Board, and Huawei is their largest customer.

On September 2, 2021, the results of the 54th review meeting of the GEM Listing Committee in 2021 were announced, stating that Beijing HuaDa JiuTian Soft Technology Co., Ltd. (IPO) met the issuance conditions, listing conditions and information disclosure requirements. This move marks HuaDa JiuTian as the first EDA stock in China.

According to the prospectus, HuaDa JiuTian plans to raise 2.551 billion yuan in this IPO, of which 507 million yuan will be used for circuit simulation and digital analysis optimization EDA tool upgrade projects, 294 million yuan will be used for analog design and verification EDA tool upgrade projects, 433 million yuan will be used for EDA tool development projects for specific types of chip design, 567 million yuan will be used for digital design synthesis and verification EDA tool development projects, and 750 million yuan will be used to supplement working capital.

It is reported that HuaDa JiuTian has been focusing on the research and development of EDA tools since its establishment in 2009. It currently has the core technologies of full-process EDA tool system for analog circuit design, digital circuit design EDA tools, full-process EDA tool system for flat panel display circuit design, and wafer manufacturing EDA tools. Some tools can support 5nm advanced process technology, reaching the international leading level.

However, not all tools have yet to support 5nm advanced process technology, and there is still a certain gap with the international top level.

According to the information they disclosed, from 2018 to 2020, the sales of HuaDa JiuTian's top five customers were RMB 81.3922 million, RMB 140 million and RMB 208 million, respectively, accounting for 53.98%, 54.48% and 50.07% of the operating income, respectively.

In 2020, Shanghai Zhaoxin Integrated Circuit Co., Ltd., HKC Co., Ltd., China Electronics Group and Tsinghua University were added to the top five customers of HGI. K1 has been the largest customer of HGI for three consecutive years and contributed 32.48% of the operating income of HGI last year. This K1 is recognized as Huawei.