Spacetime Technology plans to acquire memory chip companies across borders

In the context of sluggish demand and fierce competition in the LED lighting industry, many companies are exploring new areas through cross-border acquisitions and cultivating a "second growth curve" on the basis of consolidating their original businesses.

On the evening of October 9, Spacetime Technology announced that the company is planning to purchase the controlling stake of Shenzhen Jiahe Jinwei Electronic Technology Co., Ltd. (hereinafter referred to as "Jiahe Jinwei") by issuing shares and paying cash, and also plans to issue shares to raise supporting funds. The company's shares will be suspended from trading on October 9, 2025, and the suspension is expected to last no more than 5 trading days.

This means that Spacetime Technology, which is mainly engaged in night economy and smart city business, is using capital operations to enter the storage and electronic technology fields where Jiahe Jinwei is located and expand new business sectors.

Spacetime Technology intends to “cross-border” the storage industry

Spacetime Technology focuses on landscape lighting system integration and cultural tourism night tour development. However, in recent years, as competition in the landscape lighting industry has become increasingly fierce, corporate profit margins have been compressed. In order to reverse the situation, the Space and Time Department In 2023, Technology will lay out its smart city business through the acquisition of Ji'anbo Transportation Technology, forming a business pattern that places equal emphasis on the nighttime economy and smart cities.

Despite the business adjustments, the performance growth of Spacetime Technology has been affected to a certain extent due to various reasons such as the lack of major changes in industry prosperity and the slow revenue conversion caused by the extension of project development and contract signing cycles. In the first half of 2025, it achieved operating income of 144 million yuan, a year-on-year decrease of 10.95%; it achieved a net profit attributable to shareholders of the listed company -66.27 million yuan.

In contrast, the acquired company Jiahe Jinwei’s storage industry has shown development potential.

Founded in 2012, Jiahe Jinwei focuses on the design, R&D, production and sales of DRAM and NAND Flash memories. It provides consumer-grade, industrial-grade, enterprise-grade memories and various industrial storage application solutions. It is one of the largest memory module manufacturers in China. The company's brands include GLOWAY, Asgard, SINKER ).

In terms of production capacity, Jiahe Jinwei has a production plant of more than 20,000 square meters, including four major production lines: wafer packaging production line, module bonding production line, DRAM testing production line, and SiP testing production line. Jiahe Jinwei said that the company has 5,000 memory module testing machines and 4,000 SSD testing machines. The daily chip testing capacity reaches 500K, and the single-day memory module production capacity can reach 30K.

It is worth noting that global memory chip prices have continued to rise in the past six months. Recently, major manufacturers have frequently adjusted their quotations, and the price increases have covered DRAM and NAND. For example, Samsung Electronics plans to increase the prices of some DRAM by 15%-30% and NAND flash memory by 5%-10% in late September. SanDisk raised its NAND flash memory quotation by about 10% in September.

According to a TrendForce survey, as the three major DRAM manufacturers continue to prioritize the allocation of advanced process production capacity to high-end server DRAM and HBM, crowding out production capacity for PC, Mobile and Consumer applications, At the same time, affected by the divergence of demand for various end products, the price increase of old process DRAM in the fourth quarter was still considerable, while the increase in new generation products was relatively mild.

Therefore, after integrating Jiahe Jinwei, Spacetime Technology is expected to take advantage of the growth momentum of the storage industry to enhance its overall development potential. However, Spacetime Technology pointed out that at present, the company has signed the "Acquisition Intention Agreement", but the transaction is still in the planning stage. The parties to the transaction have not yet signed a formal transaction agreement. The specific transaction plan is still under discussion and verification, and there is still uncertainty.

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LED lighting companies are looking for a "second growth curve" across industries

According to TrendForce's analysis, in the first half of 2025 (1H25), the LED general lighting industry did not recover as expected, the new installation market continued to be weak, the growth rate of the stock replacement market slowed down, the overall market size continued to shrink, and corporate revenue performance was poor. Looking forward to the second half of the year (2H25), changes in the international situation have heightened the market's wait-and-see mood, and the outlook is uncertain. TrendForce estimates that the full-year LED lighting market size will decline by 4.4% to US$53.573 billion.

In this context, not only Spacetime Technology, but also many companies in the industry are seeking new growth points through cross-border mergers and acquisitions or strategic investments.

Roman shares, which is also a landscape lighting company, announced in August this year that it planned to acquire 39.23% of Wutong High-tech. After the acquisition is completed, it will become its largest shareholder. Wutong High-tech focuses on comprehensive solutions for AIDC computing servers and clusters. It was established in December 2023 and has not yet formed large-scale revenue.
Roman shares stated that this acquisition aims to optimize and integrate resources, improve industrial layout, expand business areas, and enhance profitability and comprehensive competitiveness. However, the company also admitted that it has insufficient experience in AIDC and cluster solution management, and there will still be challenges in operational management and integration and collaboration in the future.

Songsheng Co., Ltd. mainly deploys two major business segments: LED drive power supply and energy storage inverter. In June this year, it announced the establishment of a robotics company with Chongqing Jinggang Transmission. The joint venture will deploy core components of high-performance electromechanical products such as harmonic reducers, transmission and drive components, and explore development opportunities in advanced manufacturing fields such as automation and robots.

Jiuliang Co., Ltd. mainly focuses on LED mobile lighting and LED home lighting. In January this year, it issued an announcement announcing that it planned to establish a joint venture, Qihang Huiying Investment (Shenzhen) Co., Ltd., and the new company planned to carry out equity investment activities in large consumer, biomedicine, auto parts, new energy, high-end equipment manufacturing and other industries, aiming to enhance the company's future comprehensive competitiveness and profitability.

Generally speaking, the market growth Against the backdrop of slowing economic growth and sluggish industry prosperity, LED lighting companies are seeking new development opportunities through investment, cross-border acquisitions, or entering high-growth industries such as storage, computing power, robotics, and new energy. This also reflects the attitude of enterprises to actively seek changes and strive to improve their competitiveness during the industry downturn.