As the market index hits a new high, a wave of share reductions has swept across the A-share market.
In May 2026, this trend extended to the semiconductor industry. From May 22 to May 29, at least fifteen listed companies in the semiconductor supply chain disclosed plans to reduce their holdings. These include Pnc Process Systems Co.,Ltd., Crystal Growth & Energy Equipment Inc., and Sichuan Tianwei Electronics Co.,Ltd., covering leading firms in various segments such as semiconductor equipment, chip design, and materials.
Pnc Process Systems Co.,Ltd. and Sichuan Tianwei Electronics Co.,Ltd. are the latest additions to this group, both announcing reduction plans on May 27, involving directors and senior executives.
Prior to their inclusion, most companies in the semiconductor reduction wave had stock prices near historical highs. The addition of Pnc Process Systems Co.,Ltd. and Sichuan Tianwei Electronics Co.,Ltd. further lowered the percentile ranking, with their stock price percentiles at 36.93% and 39.59%, respectively.
Sichuan Tianwei Electronics Co.,Ltd. is a typical case of "breaking issue price upon listing." As a military electronics enterprise, its core business involves military fire suppression and explosion suppression systems, as well as aerospace core components. The company went public on the STAR Market in July 2021. Before listing, its revenue increased 5.5 times over two years, reaching a historical high of 235 million yuan in 2020.
However, the company's main product, the fire suppression and explosion suppression system, is a subsystem of the entire vehicle, and its demand is influenced by annual vehicle tasks, making its performance subject to downstream military orders.
In 2022, the year after listing, the company's revenue halved. In 2024, due to negative non-GAAP net profit attributable to shareholders and main business revenue below 100 million yuan, the company was designated as "*ST Tianwei."
In 2025, the company's performance recovered, with revenue increasing 93% year-on-year to 150 million yuan and non-GAAP net profit turning positive to 19.48 million yuan. On April 21, 2026, the company officially removed the special treatment and reverted to "Sichuan Tianwei Electronics Co.,Ltd."
Due to concerns over its business model's heavy reliance on downstream orders and the performance downturn in the second year after listing, the company's stock price has been declining since its IPO. Although it began to recover in early 2025, benefiting from the semiconductor market rally and improved performance, it has not fully offset the prolonged decline over the previous three years.
Sichuan Tianwei Electronics Co.,Ltd.'s stock price peaked at 68.36 yuan per share on the second trading day after listing. As of the close on May 29, 2026, its stock price was 24.38 yuan per share, only 36% of its peak.
In contrast, Pnc Process Systems Co.,Ltd.'s performance has not shown signs of recovery. Despite the AI-driven growth across the semiconductor supply chain, the company's revenue has declined for two consecutive periods, placing it at the bottom among the fifteen companies in terms of performance growth.
The fifteen companies can be categorized based on their performance growth:
The first category includes seven companies with sustained revenue and profit growth over the recent year and quarter, such as Advanced Micro-Fabrication Equipment Inc. and Montage Technology.
The second category includes three companies showing revenue growth without profit growth, such as CanSemi Technology and HHC.
The third category includes three companies with growth in 2025 but a downturn in the first quarter of 2026, such as Dongwei Semiconductor and Chipown Micro-electronics.
The fourth category includes two companies with continuous revenue and profit contraction over the recent year and quarter: Pnc Process Systems Co.,Ltd. and Crystal Growth & Energy Equipment Inc.
Pnc Process Systems Co.,Ltd.'s revenue declined by 20.81% year-on-year in 2025 and shrank by another 14.70% year-on-year in the first quarter of 2026. Crystal Growth & Energy Equipment Inc. performed even worse, with revenue plummeting 72.82% year-on-year in 2025 and dropping 95.73% year-on-year in the first quarter of 2026. Its first-quarter revenue for 2026 was only 3.02 million yuan, which is merely one-fifth of its net profit attributable to shareholders in the first quarter of 2024.
Both Pnc Process Systems Co.,Ltd. and Crystal Growth & Energy Equipment Inc. are semiconductor equipment manufacturers. The former specializes in wet cleaning equipment and high-purity process systems, while the latter focuses on crystal growth equipment.
In December 2024, Pnc Process Systems Co.,Ltd. and some of its subsidiaries were added to the U.S. Department of Commerce's Entity List. This has led downstream customers to adopt a more cautious approach to supply chain security, affecting the company's order acquisition. As a pure-play semiconductor wet cleaning equipment provider, Pnc Process Systems Co.,Ltd. faces intense competition from platform-based equipment giants like NAURA Technology Group, ACM Research, and Kingsemi under turbulent trade conditions, putting significant pressure on its growth.
Crystal Growth & Energy Equipment Inc., on the other hand, is at the bottom of its industry cycle. Its primary product is the silicon carbide single crystal growth furnace. Silicon carbide components are used in various applications, including automotive and industrial sectors, with new energy vehicles being the largest market. However, in recent years, automakers have faced intense competition, and price wars have spread upstream. Global silicon carbide leaders have incurred losses, with industry giant Wolfspeed even filing for bankruptcy.
Although many in the market tout AI as a new growth driver for silicon carbide, no specific technologies or projects have materialized, and no institutional data supports this view. According to Frost & Sullivan estimates, new energy vehicles will remain the primary application for silicon carbide over the next five years, accounting for over 70% of the market.