MicroLED Maker Qiushui Semiconductor Raises $27.6M

Qiushui Semiconductor, a Chinese startup focused on advanced MicroLED technology, has successfully closed its Pre-Series A and Series A funding rounds, raising nearly 200 million yuan (approximately $27.6 million USD). The investment was led by Aurora Capital, with participation from Tongshang Fund and the Ningbo Talent Development Fund. This capital infusion is earmarked for establishing an 8-inch wafer hybrid bonding chip mass production line and advancing core post-processing technologies at their new facility in the Ningbo High-tech Industrial Development Zone.

Founded in late 2022 and recently relocating its headquarters to Ningbo, Qiushui Semiconductor is dedicated to developing and manufacturing MicroLED chips and modules for high-demand sectors. Their technology is targeted at applications such as digital automotive headlights, augmented reality (AR) glasses, and mobile projectors, areas where MicroLED's superior brightness, contrast, and energy efficiency offer significant advantages over existing display technologies. The MicroLED market, projected to grow substantially in the coming years, is currently experiencing a bottleneck in mass production, particularly for demanding applications like AR devices and automotive lighting.

A key innovation from Qiushui Semiconductor is its proprietary "damage-free architecture," which eliminates the traditional etching process. This novel approach utilizes an electrically insulating structure combined with 8-inch silicon wafers and 3D packaging via hybrid bonding. This method is designed to prevent damage to the light-emitting materials, a persistent issue in conventional MicroLED manufacturing that leads to reduced efficiency and yield. The company claims this technology can boost yield rates to over 99.9999% and significantly improve performance metrics, including a narrower emission angle and a higher operating temperature tolerance.

The company has already introduced a 0.61-inch chip for digital headlights, completing sample delivery and validation with clients. The automotive sector is increasingly adopting MicroLEDs for adaptive driving beam systems, with market research indicating a significant rise in adoption by 2029. Qiushui Semiconductor is also planning to ship monochrome green LED chips for AR devices within the year, targeting applications like smart goggles and in-car navigation systems. Overcoming the challenges of full-color MicroLED production, especially for red light where traditional methods cause substantial efficiency loss, remains a critical step for widespread adoption, and Qiushui aims to make significant progress by year-end.

Qiushui Semiconductor operates a fab-light model, balancing in-house production with external manufacturing partnerships. They assert they have established China's first 8-inch hybrid bonding technology. The new production line in Ningbo is expected to be operational by October, with a projected capacity of 1,000 8-inch wafers per month, translating to over 10 million MicroLED chips annually. This advanced hybrid bonding capability supports ultra-fine pitch connections at 3.75 micrometers, with plans to scale down to 2 micrometers, aligning with cutting-edge semiconductor process nodes.

The successful funding round positions Qiushui Semiconductor to address critical manufacturing hurdles in the MicroLED industry. By focusing on a damage-free production method and leveraging 8-inch wafer technology, the company aims to unlock the full potential of MicroLEDs for next-generation displays in consumer electronics and automotive applications. The broader market anticipates such advancements to accelerate the commercialization of AR glasses and sophisticated automotive lighting systems, driving significant growth in the advanced display sector.