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EnglishKXCOMTECH IPO press release
Kangxi Communication Technology Co., Ltd., also known as KXCOMTECH, Successfully Lists on the Stock Market
November 17th, 2023 - Today, Kangxi Communication Technology, also known as KXCOMTECH, the domestic Wi-Fi FEM leader, was officially listed on the Shanghai Stock Exchange's Science and Technology Innovation Board. The company's stock code is "688653", with an issuance price is ￥10.50 per share, and a market value of 4.457 billion RMB. As of press time, KXCOMTECH' stock price has risen to ￥29.26, an increase of 178.67%, and its total market value exceeds 11 billion RMB.
According to the prospectus, KXCOMTECH is a professional radio frequency front-end chip design company that adopts the Fabless business model and is mainly engaged in the development, design, and sales of Wi-Fi radio frequency front-end module (FEM). In the Wi-Fi FEM industry, the company has gained significant recognition from numerous top network equipment suppliers, service providers and ODM manufacturers. As a key player in the localization of Wi-Fi FEM chip suppliers, KXCOMTECH focuses on delivering high-performance solutions to its customers.
Radio frequency front-end Module (RF FEM) is the core component of wireless communication equipment. It is located between the antenna and the main communication chip (SoC). It mainly includes a power amplifier (PA), low noise amplifier (LNA), RF switches, and filters. RF FEM is widely used in wireless communication fields such as cellular, Wi-Fi, Bluetooth, ZigBee, etc.
Wi-Fi communication is the second-largest RF front-end chip application market after cellular mobile communications. According to data from QY Research and Yole, the global RF front-end market size will reach US$20.216 billion in 2020, of which Wi-Fi RF front-end market space accounts for 14%.
KXCOMTECH focuses on Wi-Fi FEM, which is a radio frequency front-end module used in the field of Wi-Fi communications and is widely used in home wireless routers, home smart gateways, enterprise access points (AP), and other ISM band wireless network communication equipment. As a key part of the communication equipment, the performance of the RF FEM directly affects the quality of signal reception and transmission during the communication process. KXCOMTECH concentrated its efforts on overcoming many technical difficulties such as "highly integrated adaptive RF power amplifier technology", "GaAs HBT ultra-high linear RF power amplifier technology", "ultra-high efficiency linearizable RF power amplifier technology", etc., and established an independent and complete RF front-end chip R&D technology system. As a result, it has been recognized by famous communication equipment brand manufacturers such as ZTE, Tenda, TP-Link, CIG, and Ruijie, and favored by well-known ODM manufacturers such as T&W, Sercomm, WNC, etc.
RF front-end chips are known as the "jewel in the crown of analog chips." due to the industry's large capital investment, high technical difficulty, long R&D cycle and other characteristics, the global market share has long been occupied by the United States and Japan. KXCOMTECH has achieved a breakthrough in the field of Wi-Fi FEM after nearly a decade of deep exploration in the Wi-Fi communication market. Its products fully cover Wi-Fi 5, Wi-Fi 6, Wi-Fi 6E, and Wi-Fi 7 protocols. The company's Wi-Fi FEM products are comparable to those of overseas top suppliers such as Skyworks and Qorvo in terms of linearity, efficiency, noise figure, and other major performance metrics.
At present, KXCOMTECH has become the domestic Wi-Fi FEM leader and a strong competitor in the global Wi-Fi FEM market. Based on the company's industry-leading technical strength, several Wi-Fi 6 FEM products have passed technical certifications from many internationally renowned Wi-Fi SoC manufacturers such as Qualcomm and Realtek, and have been included in the reference designs of wireless router product solutions released by them. It has gained high recognition and popularity in domestic and foreign markets.
The next-generation Wi-Fi 7 protocol standard is on the horizon. According to TSR forecast data, the networking market penetration rate of the Wi-Fi 7 standard will reach 13% in 2025 and 58% in 2028. As the Wi-Fi standard advances, the market demand for Wi-Fi 7 FEM will continue to grow. Based on its industry-leading technical strength, KXCOMTECH has already been actively committed to the research and development of Wi-Fi 7 FEM technology and products. There are many products under development, and some of them have been qualified by internationally renowned Wi-Fi SoC manufacturers such as Qualcomm and MediaTek.
KXCOMTECH's successful listing on the stock market marks a new chapter in the company's journey. With its strong foundation, relentless pursuit of innovation, and commitment to customer satisfaction, the company is poised to further strengthen its position in the RF front-end chip industry and deliver impactful solutions that empower end customers globally. In terms of products and applications, the company has further consolidated and improved its products and market penetration in Wi-Fi FEM. On the other hand, it is also actively promoting the research, development, and marketization of RF front-end chips in emerging fields such as Pan-IoT and V2X. The infusion of capital from investors will enable the company to further enhance its research capabilities, strengthen its production capacity, and accelerate the development and deployment of next-generation communication technologies.
For more information, please visit KXCOMTECH's website at www.kxcomtech.com.
