【Member News】National-Level Fund Invests in Semiconductor Equipment Firm: Lanhe Technology Secures Hundreds of Millions of RMB in Financing

      Recently, Lanhe Technology (Shaoxing) Co., Ltd., a leading domestic MOCVD equipment provider, completed a B6 financing round worth hundreds of millions of RMB. The round was led by China Internet Investment Fund (CIIF), with joint investment from TEDA Venture Capital, Yangtze River Innovation Capital, and other renowned institutions. To date, Lanhe Technology has completed multiple rounds of financing, receiving continuous support from both industrial and financial investors, and has established an initial leading position in China’s compound semiconductor core equipment market.

Image source: Lanhe Technology official website

      MOCVD (Metal-Organic Chemical Vapor Deposition) is one of the most critical epitaxial growth technologies and equipment in semiconductor manufacturing. Through precisely controlled chemical vapor reactions, MOCVD systems grow single-crystal thin films with atomic-scale thickness on substrates. Whether it is the InP quantum well structures used in optical communication lasers or the GaAs multi-junction epitaxial layers used in space photovoltaic cells, MOCVD equipment is indispensable. For a long time, the global high-end MOCVD market has been dominated by a duopoly of Germany-based Aixtron and US-based Veeco. In high-end applications such as GaN power devices and optoelectronics, domestic equipment penetration has remained below 10%. The emergence of Lanhe Technology is reshaping this landscape.

      Lanhe Technology is currently the only domestic company that has achieved mass shipment of MOCVD equipment covering a full range of material systems. Its technology portfolio covers second-generation semiconductors (InP/GaAs), third-generation semiconductors (GaN/SiC), fourth-generation semiconductors (Ga₂O₃/AlN), as well as two-dimensional thin-film materials. Leveraging its comprehensive technology platform, Lanhe Technology has established a customer base covering more than 40 research institutes and over 50 industrial customers. To date, the company has shipped more than 150 equipment units, with all product series achieving batch order deliveries.

      In the field of gallium oxide (Ga₂O₃), MOCVD is considered one of the important technological routes for achieving high-quality epitaxial material growth. As research and development of Ga₂O₃ substrates, epitaxial materials, and power devices continue to advance, the independent development of high-performance epitaxial equipment has become a key factor supporting industry growth. Lanhe Technology continues to expand its presence in fourth-generation semiconductor materials, providing equipment support for emerging semiconductor industries including gallium oxide.

      Currently, the MOCVD equipment industry is benefiting from the simultaneous growth of two major downstream application scenarios—optical communications and space photovoltaics—forming a dual-engine growth landscape. In optical communications, the core manufacturing processes of photonic chips, including DFB lasers, EML (Electro-Absorption Modulated Lasers), and VCSELs, rely on precision epitaxial growth of InP and GaAs substrates using MOCVD equipment. Lanhe Technology is among the few companies in the industry that have achieved mass-production process validation and commercial shipment in InP/GaAs laser MOCVD applications. Its DR series and CS series products have been introduced into multiple leading customers’ production lines, benefiting from the rapid expansion of AI computing infrastructure.

      Meanwhile, China’s low Earth orbit (LEO) satellite internet is entering a phase of large-scale deployment. The continuous power supply of these satellites relies heavily on space photovoltaic technologies. Currently, the mainstream multi-junction GaAs flexible solar cells used in space applications require layer-by-layer epitaxial growth through MOCVD equipment. Lanhe Technology has also achieved batch shipments in the GaAs MOCVD field for space photovoltaics and has developed equipment capabilities tailored to industry-specific requirements, positioning itself in this rapidly growing market.

      As the lead investor in this financing round, China Internet Investment Fund (CIIF) has long focused on breakthroughs in key core technologies and strategic investments in critical sectors. The fund has particularly strengthened its investment presence in semiconductor equipment, an area regarded as a key bottleneck for technological independence. This investment in Lanhe Technology represents another important move by CIIF in the innovation-driven technology sector.

      CIIF’s investment in Lanhe Technology reflects recognition of the company’s technological uniqueness and leading position in MOCVD equipment for compound semiconductors, while also demonstrating national-level capital support for the independent development of China’s semiconductor equipment industry.

      Driven by the dual trends of the AI computing revolution and the space economy, Lanhe Technology, as a domestic MOCVD equipment platform covering a full range of material systems, is accelerating the realization of its “optical communications + space photovoltaics” dual-engine growth strategy. With both technological depth and industrial breadth, the company is expected to become an internationally competitive platform-level leader in compound semiconductor equipment amid China’s semiconductor equipment localization drive.