Hong Kong IPO Faces "Roadblock" as Fourier Sued by Awei Electronics Over Patent Dispute, Industry Competition Escalates

A patent lawsuit has cast a shadow over Fourier Semiconductor’s upcoming Hong Kong stock listing.

Recently, Fourier Semiconductor passed the Hong Kong Stock Exchange’s listing hearing on March 15, and shortly after, became embroiled in a dispute over infringement of invention patents. According to official court information, Fourier’s lawsuit against Aiwei Electronics (688798.SH) is scheduled for a hearing on April 27, which could disrupt the company’s smooth path to listing.

On one side is a company about to ring the bell for its IPO; on the other is an established industry player with years of experience. The confrontation not only concerns the fate of one company but also impacts the competitive landscape of the analog chip sector.

Regarding the issues related to this lawsuit, reporters from Huaxia Times sent interview requests to Aiwei Electronics and Fourier Semiconductor. As of press time, neither side has responded. The reporter then called Aiwei Electronics’ securities affairs department, which stated they could not comment without authorization and would forward the inquiry to the legal department. As of now, no feedback has been received. Whether Fourier Semiconductor’s smooth IPO process can continue remains a focus of attention.

Last-minute changes before listing

Looking back at Fourier Semiconductor’s listing process, it received the overseas issuance and listing filing notice from the China Securities Regulatory Commission on March 13. Just two days later, on March 15, the company successfully passed the hearing, with Guotai Junan International and Orient Securities International serving as joint sponsors, aiming to become the first Hong Kong-listed “AI audio chip” company.

However, this rapid pace of listing was soon challenged. According to official court information, Aiwei Electronics has filed a lawsuit against Fourier Semiconductor at the Shanghai Intellectual Property Court, alleging infringement of invention patents. The case number is (2025) Hu 73 Zhi Min Chu 195, and a trial is scheduled for April 27, 2025. This date coincides with a critical phase of Fourier Semiconductor’s Hong Kong IPO.

“Encountering patent litigation just before an IPO is not uncommon in the semiconductor industry. It has become a routine tactic for competitors to disrupt listing schedules and shake investor confidence,” said Sun Yuhao, senior partner at Shanghai Hanhua Yongtai Law Firm, in an interview with Huaxia Times. According to Hong Kong Stock Exchange listing rules, after passing the hearing, companies must fully disclose pending lawsuits that could have a significant adverse impact in the prospectus. This creates considerable uncertainty for Fourier during the crucial roadshow and pricing window. The lawsuit could not only delay the listing but also raise questions among investors about the company’s technological independence and operational sustainability, potentially reshaping industry competition.

“If the lawsuit successfully blocks a competitor’s listing, the plaintiff could gain a valuable market window to solidify its leading position,” Sun Yuhao added.

Aiwei Electronics, the plaintiff in this case, was founded in 2008 and listed on the STAR Market in August 2021. It is a leading domestic company in the analog chip field, adopting a fabless model (focusing on chip design and outsourcing manufacturing). Its core products include audio power amplifiers and power management chips, serving a broad customer base in consumer electronics and IoT sectors, with major clients such as Huawei, Xiaomi, OPPO, vivo, Transsion, Samsung, and others.

Financial data shows that Aiwei Electronics achieved total revenue of 2.176 billion yuan and net profit attributable to shareholders of 276 million yuan in the first three quarters of 2025, representing year-on-year growth of 54.98%. Its operating cash flow reached 332 million yuan, demonstrating strong profitability and industry competitiveness. The company’s 2025 annual earnings report indicates full-year revenue of 2.854 billion yuan and net profit of 316 million yuan.

Interestingly, Aiwei Electronics itself has experienced patent disputes during its IPO process. In 2021, when it was preparing to list on the STAR Market, it was sued by competitor Chipsea Technologies for patent infringement. Aiwei Electronics successfully defended itself by invalidating the patents and counter-suing for commercial defamation, leading to a smooth listing.

Wu Zewei, a special researcher at Shushan Bank, told Huaxia Times that patent litigation before an IPO is common in the semiconductor industry. Such lawsuits can impact the listing process, trigger regulatory inquiries, cause valuation fluctuations, and reduce investor confidence, potentially delaying the IPO. He explained that frequent patent disputes in the chip sector stem from rapid technological iteration, high R&D investment, and high patent barriers. Companies often use patent litigation as a strategic tool to protect core technologies, maintain market advantages, or curb competitors.

Fourier Semiconductor Faces Losses

Compared to Aiwei Electronics, Fourier Semiconductor, founded in 2016, also operates in the analog chip design industry with a fabless model. Its main business involves designing and selling audio amplifier chips and haptic feedback chips. According to a report by Frost & Sullivan, based on 2024 revenue, Fourier Semiconductor ranks fourth globally among audio amplifier chip suppliers and third among Chinese suppliers.

In addition to some overlapping business areas, their downstream customers also partially overlap. According to the prospectus, Fourier’s mass production clients include major consumer electronics brands such as Samsung, Xiaomi, vivo, Moto, and Honor, further intensifying competition.

“Patents have become an ‘asymmetric weapon’ in market competition,” said Zhang Ronglin, deputy director of the Tax and Legal Department at Taihe Tai (Jinan) Law Firm. He noted that the lawsuit between Aiwei Electronics and Fourier is highly representative. Both are core players in the audio chip niche, with highly overlapping product matrices. The timing of the lawsuit hitting the IPO window reflects the deeper logic of China’s analog chip market shifting from ‘incremental competition’ to ‘stock competition.’

Sun Yuhao pointed out that, according to the spirit of the Patent Law of the People’s Republic of China, patent rights are a legal tool for companies to protect core technological achievements and build competitive barriers. When the technological moat directly affects market share, patent litigation becomes a straightforward means of competition.

“For semiconductor companies, patent layout must follow a systematic strategy that balances quantity and quality, defense and offense. During R&D project initiation, they should introduce patent navigation mechanisms to identify technological gaps and infringement risks early. They should also protect core designs comprehensively under the ‘Regulations on the Layout of Integrated Circuit Mask Works.’ In risk prevention, companies should establish a ‘prevention-monitoring-response’ management system throughout the R&D lifecycle, regularly assess the stability of core patents, monitor competitors’ patent activities, and negotiate FRAND terms for standard-essential patents to avoid passive situations. Before listing, proactive IP due diligence and FTO analysis should be conducted to resolve potential disputes through settlement or invalidation, preventing legal challenges during critical capital market windows.”

Beyond patent disputes, Fourier Semiconductor remains unprofitable since its establishment, which is also a concern.

Financial data shows that Fourier’s revenue has grown explosively in recent years, reaching 130 million yuan in 2022, 150 million yuan in 2023, and 355 million yuan in 2024. In the first ten months of 2025, revenue was 281 million yuan. However, net losses persisted: 94.13 million yuan in 2023, reduced to 56.84 million yuan in 2024, and 51.77 million yuan in the first ten months of 2025. Although losses are narrowing, profitability has not yet been achieved. Gross margins for 2022-2024 and the first ten months of 2025 were 7.3%, -0.1%, 13.1%, and 20%, respectively.

Regarding the fluctuations in gross margin, Fourier stated that the significant improvement in 2024 was mainly due to economies of scale, a favorable shift toward higher-margin products, and cost reductions from supply chain bargaining and product upgrades. The further increase in gross margin in the first ten months of 2025 was also driven by ongoing product mix optimization.

It is noteworthy that Fourier’s current loss situation reflects the broader difficulties faced by many small- and medium-sized domestic analog chip companies. The Chinese chip design industry currently has low concentration, and most small and medium enterprises must continuously increase R&D investment to break through technological barriers and gain market share. This results in prolonged losses and high dependence on capital markets, making IPOs a crucial pathway for sustainable development. For Fourier Semiconductor, this patent lawsuit is both a crisis and a test. The outcome of this case and its IPO progress will be closely watched by this publication.

Editor: Xu Yunqian Chief Editor: Gong Peijia