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This week, i Capital features Will Semiconductor Co., Ltd Shanghai (Will Semiconductor) (韦尔半导体), one of the top 10 fabless semiconductor companies in the world according to TrendForce, a market intelligence firm specialising in the technology sector. In 2007, the Company was established in Shanghai by Mr. Yu Renrong and Ma Jianqiu. It started as an IC distributor and successfully expanded from an amplifier devices and power IC design business into a CMOS image sensor (CIS), touch & display and analog integrated circuit (IC) one through a series of acquisitions, including that of OmniVision, a leading US company in complementary metal oxide semiconductors (CMOS), the key component of camera modules used in smartphones, automobiles, security, PC and medical devices, etc. 

Today, Will Semiconductor is the third-largest CIS company after SONY and Samsung and the second-largest semiconductor player in the automotive segment after Onsemi, the former semiconductor department of Motorola. In 2017, the Company made its IPO on the Shanghai Stock Exchange. In Nov 2023, Will Semiconductor issued and listed its Global Depositary Receipt (GDR) on the SIX Swiss Exchange. As of 2023, the Company had 4,800 employees. 

Business model

Will Semiconductor is a fabless company. It focuses on IC design and sales, and outsources the manufacturing process to specialised third-party companies such as TSMC and SMIC. The Company has three business segments: semiconductor design and sales, semiconductor design and services, and semiconductor distribution. Design and sales and distribution are the two largest segments, respectively accounting for around 85% and 14% of 2023 revenue. Design and sales is not only the primary revenue contributor but also one with a gross profit margin of 23.87%, which significantly exceeds the 6.59% GP margin of distribution.

Under design and sales, there are three sub-segments divided according to product categories: CIS, touch & display, and analog IC, among which CIS is the largest, representing around 86.6% of the whole segment’s revenue. Touch & display and analog IC account for 7% and 6.4% respectively. The GP margin of the three sub-segments is 24.03%, 9.48%, and 37.28% respectively. 44% of design and sales r