China’s Semiconductor Giant Explores Collective Ownership

On May 6, AMEC (Shanghai) Co., Ltd. issued a notice announcing plans by two senior executives to reduce their holdings in the company’s stock.

The company’s chairman and general manager, Yin Zhiyao, plans to reduce his holdings by no more than 280,000 shares, accounting for 0.045% of the company’s total share capital. Yin was previously known for renouncing his U.S. citizenship. The company’s CFO and vice president, Chen Weiwen, plans to reduce his holdings by no more than 125,000 shares, accounting for 0.020% of the company’s total share capital.

Based on the company’s closing price of 188.26 RMB per share on the trading day before the announcement, Yin Zhiyao’s cash-out amount is estimated to be approximately 52.71 million RMB.

Dr. Yin Zhiyao

This reduction marks Yin Zhiyao’s second time selling shares. Combined with this reduction, he is expected to have sold shares worth a total of 289 million RMB.

AMEC is a leading company in China’s semiconductor industry and a major supplier of etching and deposition tools. The company was founded in 2004 by Yin Zhiyao, who returned to China from the United States.

In the list of major semiconductor events published by the Shanghai government in 2017, it was mentioned that AMEC’s 7nm etching machine had been included in TSMC’s supplier list. 、

In January 2024, the U.S. Department of Defense, citing “national security” concerns, added dozens of Chinese companies, including AMEC, to its blacklist, prohibiting the department from purchasing goods and services from them. However, in December, the Pentagon removed AMEC from the blacklist.

Yin Zhiyao, born in 1944, holds a bachelor’s degree from the University of Science and Technology of China and a Ph.D. from the University of California, Los Angeles. From 1984 to 1986, he worked at Intel’s Central Technology Development Department as a process engineer; from 1986 to 1991, he worked at Lam Semiconductor, holding positions as senior engineer and senior manager in the R&D department; from 1991 to 2004, he worked at Applied Materials, Inc. He returned to China to start his business in 2004, and the company went public in 2019. As of the close of trading on May 7, AMEC’s stock rose by 0.24%, with a market value of 118 billion RMB.

Currently, Yin Zhiyao has given up his U.S. green card. In December last year, he discussed the company’s equity structure on a CCTV interview program, where he stated that he only holds 0.7% of the company’s shares. His dream is to share labor and rewards with others. Employees at AMEC, including drivers and receptionists, own company stock. One year after the company went public, half of the employees had a net worth exceeding 10 million RMB, and 50 employees had a net worth over 100 million RMB.

A similar philosophy to that of Dr. Yin Zhiyou is also shared by Huawei founder Ren Zhengfei. As of December 31, 2024, he held approximately 0.65% of the company’s shares. The remaining shares are held collectively by Huawei employees through a platform known as the “Union Committee,” which represents the employees’ collective ownership. Employees can participate in the company’s profit distribution through virtual shares; however, these shares are non-transferable and must be returned to the company upon an employee’s departure.

Yin Zhiyao’s decision to reduce his shareholding was held in high regard by many Chinese netizens, who viewed it as embodying his company’s “collective ownership” business philosophy.

Editor: Zhongxiaowen