(Image source: unsplash)

TMTPOST— Ultra Precision Intelligent Technology, a rising star in China's semiconductor equipment sector, has secured tens of millions of yuan in a Series A funding round, as it ramps up efforts to challenge foreign dominance in advanced chip inspection and packaging equipment.

The round was led by Junxi Capital, with participation from Xiangjiang Guotou and Changcai Private Equity. The fresh capital will fuel R&D of core technologies, expansion into vertical industry markets, and talent acquisition, according to the company.

Founded in 2020 in Changsha High-Tech Zone, Ultra Precision specializes in nanometer-level automated optical inspection (AOI) and high-precision chip packaging equipment. With demand for AI chips and advanced computing power surging globally, the company is positioning itself as a domestic alternative to foreign giants like Israel's Camtek, Japan's Toray, and the U.S.'s ONTO.

"We've achieved independent control over key technologies, breaking the monopoly of foreign equipment," said Wang Huirong, founder and chairman of Ultra Precision. Wang, a semiconductor veteran with stints at Omron and other listed firms, said the company expects revenue to triple this year, reaching several hundred million yuan.

Wang emphasized that Ultra Precision is eyeing a potential IPO as it deepens its presence in sectors like optical communications, computing chips, and high-power lasers.

"If we can continue to serve high-quality clients with excellent equipment, we'll take this company public and accelerate growth through the capital markets," Wang said.

The company's flagship AOI inspection system can detect defects as small as 30nm on optical chips using AI algorithms with a reported accuracy of 99.9%. Data from inspections can be archived locally or uploaded to factory MES systems, enabling seamless integration with production lines.

Ultra Precision's strength lies in its vertically integrated platform that spans ultra-precision mechanics, motion control, custom AI algorithms, and advanced optics—allowing it to iterate products rapidly and address client pain points across multiple process steps.

The global semiconductor industry is on track to top $1 trillion by 2030, driven by AI, high-bandwidth memory (HBM), and automotive computing, according to data from the World Semiconductor Trade Statistics and SEMI. China, now the world's largest market for semiconductor equipment, is pushing aggressively to localize production amid U.S. tech restrictions.

In 2025 alone, China's investment in chipmaking tools is projected to reach $38 billion, with domestic fabs expected to contribute nearly one-third of global production capacity, measured in 8-inch wafer equivalents.

This wave of investment presents a rare opening for domestic players like Ultra Precision to gain ground. "We're not competing in the low-end market," said Wang. "We're focused on high-end, high-precision equipment where our value proposition is strongest."

Junxi Capital's Managing Partner Zhang Ning called Ultra Precision "a rising force in the broad semiconductor equipment field," citing its integrated platform and ability to deliver software and hardware innovations at scale.

"With several products already breaking international monopolies, Ultra Precision is transitioning from single-point breakthroughs to a platform-based technology leader," Zhang said.

Xiangjiang Guotou and Changcai Private Equity echoed that sentiment, highlighting Ultra Precision's strategic importance to Changsha's regional semiconductor ambitions and its ability to provide domestically manufactured alternatives to foreign AOI and packaging systems.

"As one of the few Chinese firms capable of mass-producing both nanometer-level AOI and high-precision placement equipment, Ultra Precision is effectively reshaping the supply chain in optoelectronics and computing chips," said a Changcai Private Equity spokesperson.

As semiconductor complexity surges and yield optimization becomes mission-critical, companies that supply inspection and metrology tools are poised to benefit. In 2023, the global market for such equipment reached $12.83 billion, or 13% of total semiconductor equipment sales, according to VLSI.

Ultra Precision's ability to bridge China's technology gap in this segment, particularly with AI-driven inspection tools, could solidify its status as a national champion in semiconductor manufacturing equipment—just as the country races to boost self-reliance.

"Domestic substitution is not just a slogan," Wang said. "It's the foundation of our company's growth strategy, and we're just getting started."

(Note: USD 1 equals about 7.25 yuan)