The Semiconductor Company Invested in by Xiaomi and Hillhouse Faces Patent Suit Days After Passing Hong Kong Hearing

IPO bid hits a legal roadblock

Fourier Semiconductor (傅里叶半导体), a fabless audio-chip designer backed by investors including Xiaomi (小米) and Hillhouse Capital (高瓴资本), has been hit with a patent-infringement lawsuit from peer Aiwei Electronics (艾为电子) just after clearing a Hong Kong Stock Exchange hearing. The suit, filed at the Shanghai Intellectual Property Court on March 15, names infringement of invention patents as the cause and is scheduled for trial on April 27, 2026 — a timing that places the dispute squarely in Fourier’s crucial roadshow and pricing window. It has been reported that Hong Kong listing rules require disclosure of such material pending litigation, raising immediate questions about the company’s ability to press on uninterrupted.

Who is Fourier and why does it matter?

Founded in 2016, Fourier Semiconductor focuses on smart audio and haptic chips and, by revenue, ranks among the top global suppliers in power-amplifier audio chips, according to Frost & Sullivan figures cited in its filings. Its customers reportedly include Samsung, Xiaomi, vivo and Honor, and the company has won plaudits for several “first-in-China” product milestones. Investors are a mix of strategic and financial backers — from Shunwei (顺为) and Hillhouse to Sequoia China and state-aligned funds — reflecting Beijing’s push for domestic semiconductor self-sufficiency amid Western export controls and supply-chain pressure.

Fast growth, fragile profitability

Fourier’s revenue accelerated from RMB 130m in 2022 to RMB 355m in 2024, and it reported RMB 281m for the first ten months of 2025. But the company has recorded three consecutive years of net losses (RMB 65.9m in 2022; RMB 94.1m in 2023; RMB 56.8m in 2024) even as gross margin improved to around 20% in early 2025. By contrast, listed domestic peers such as Aiwei and Lingyun are already profitable, which makes investor appetite for a loss-making, fast-growing chip vendor a key open question. Analysts say timing a patent suit during an IPO window is a known competitive tactic; will investors treat this as a transactional hiccup or a sign of deeper IP and business-model risk?

Stakes for the broader “国产替代” story

This is more than a single-company dispute. Strategic capital and major OEM customers have visibly backed Fourier as part of a broader domestic-replacement narrative in chips. But patent fights, regulatory scrutiny and tight margins complicate that narrative. If the case proceeds to trial as scheduled, it could delay or reshape Fourier’s Hong Kong float and test whether global investors still buy the China-made semiconductor growth story — especially in a sector increasingly shaped by geopolitics, export controls and fierce domestic rivalry.