On the eve of the Spring Festival, Guangdong Quadro Semiconductor Equipment Co., LTD. (hereafter referred to as "Kerzhuo") continued to operate at full speed in its assembly and debugging workshops, with assembly workers and technicians making a final push to meet pre-festival order deadlines.

　　 "We're working flat out to meet the order deadlines, aiming to deliver the fully debugged equipment to our customers before the New Year, so we can free up space for production of orders coming in after the Spring Festival," explained Wang Fuguo, General Manager of Kezhuo.

　　 Speaking about the 2023 results, Wang Fuguo wore a broad smile. That year, a product—after six long years and over 100 million yuan in cumulative R&D investment—finally entered commercial use, bringing the company tens of millions in orders and instantly establishing Kezhuo as a major player in China.

　　 After six years of intensive R&D, the company has barely turned a profit—R&D expenses now account for over 70% of its operating costs, with total investments exceeding 100 million yuan. What drives Kezhuo to remain committed through this long and challenging journey? And more importantly, is it all worth it in the end?

　　 Smartphones, smart furniture, home vehicles—every single item relies on semiconductor chips.

　　 In this era of "phones always in hand," semiconductor technology has become deeply embedded in people's daily lives, driving the continuous expansion of the semiconductor market. Yet, in China's domestic semiconductor manufacturing sector, overseas companies still dominate more than half of the market share, leaving Chinese firms largely stuck in a "bottleneck" when it comes to advanced semiconductor technology and equipment.

　　 Racing to ramp up production

　　 "The domestic semiconductor market is incredibly vast, yet many of the critical equipment pieces are still manufactured and supplied by foreign companies—this undoubtedly poses a significant constraint on the healthy development of our industry," said Wang Fuguo. He added, taking wafer dicing machines as an example: "China's wafer dicing machine market alone is worth as much as 12 billion yuan. However, before KZ Semiconductor introduced its products, 95% of China's wafer dicing machines relied entirely on imports from abroad."

　　 Domestic semiconductor manufacturers, while opting to use imported equipment, simultaneously face challenges such as lengthy equipment delivery times, delayed after-sales service, and the inability to meet customized requirements. These issues have, to some extent, constrained the growth of China's domestic semiconductor industry, prompting many upstream manufacturers to actively seek domestically produced alternatives. Recognizing the vast market demand within China, Kezhuo officially launched its R&D project for semiconductor manufacturing equipment in 2017. The company is now fully committed to developing key semiconductor tools—such as wafer dicing machines and flip-chip bonding machines—that rival those of leading international giants.

　　 Over the course of six years of research and development, a team of elite technical experts—hailing from globally renowned semiconductor equipment manufacturers like TDK and ASM, as well as prestigious domestic and international academic institutions—arrived in Nancheng. Starting from scratch, they embarked on an intensive journey of trial and error, ultimately succeeding in localizing critical semiconductor manufacturing equipment such as wafer dicing machines, which now seamlessly integrate thousands of components and dozens of systems. As a result, the precision of wafer cutting and packaging has reached world-class industry-leading levels.

　　 Today, Kozho not only boasts a diversified range of product and equipment offerings but also holds over 60 technology patents. Moreover, the company has achieved full independent research and development—and secured proprietary intellectual property rights—in core modules such as mechanical structure design, motion control, and image processing.

　　 Product cutting precision is controlled within 3 microns and maintained with long-term stability, while offering a diverse selection of cutting dimensions and the number of cutter axes…

　　 Thanks to one technological advantage after another, Kezhuo has earned recognition within the domestic industry and successfully accepted the "olive branch" extended by its peers. In the very first year since its products and equipment were officially launched into the commercial market, Kezhuo generated tens of millions in revenue, marking the company’s own "harvest moment."

　　 In 2023, Kezhuo invested over 20 million yuan in the iterative research and development of its products and technologies, with R&D expenditures accounting for more than 70% of its operating costs. Wang Fuguo noted that, as industries like artificial intelligence, automotive electrification, and robotics continue to grow, the future market prospects for semiconductor technology are exceptionally promising.

　　 He stated that although most of Kozho's products have already entered large-scale commercial use, Kozho will continue to maintain high levels of R&D investment, constantly refining and upgrading its existing products while simultaneously developing new ones. This ensures that product performance meets the latest technological standards and customer needs, enabling the company to attract more potential clients.

　　 In 2024, Kezhuo plans to complete the development and launch three new devices onto the market, positioning itself for the next wave of competition with enhanced product technology.

　　 Meanwhile, Kezhuo also plans to push ahead with completing a round of equity financing and initiating preparations for an IPO on the STAR Market in 2024. By attracting investment, the company aims to further accelerate the development of its next-generation products, enabling both the business and its technology to achieve a new leap forward.

　　 In addition to maintaining its strong R&D investments and continuing to attract capital, Kezhuo will also proceed with further expansion and capacity upgrades in 2024, planning to add a 1,500-square-meter assembly workshop. At the same time, the company will accelerate the digital transformation of its production and management processes, completing upgrades to its ERP, OA, and MES systems.

　　 By increasing production capacity, Kezhuo's product assembly capability will soon rise to 50 units per month, while the product delivery cycle will also be shortened to just 3 months. We expect product revenue to surpass 100 million in 2024, successfully achieving our goal of rapidly bringing the product to market.

　　 Guangdong Kezhuo Semiconductor Equipment Co., Ltd. was established in 2016 and is a nationally recognized high-tech enterprise dedicated to the research, development, and manufacturing of advanced semiconductor packaging and testing equipment. The company specializes in wafer dicing machines, pick-and-place systems, and inspection equipment, backed by a team of highly skilled technical experts who bring extensive R&D experience from leading global companies like TDK and ASM. Kezhuo has achieved end-to-end independent innovation—spanning everything from mechanical design and motion control to image processing—and now fully owns the intellectual property rights for its cutting-edge technologies. As a key player in China’s semiconductor industry, the company is at the forefront of driving domestic self-reliance in the semiconductor value chain and spearheading the localization of high-end equipment.