Sprint to IPO thwarted by lawsuit targeting TuoSheng Technology over trade secret dispute; Yida Capital holds nearly 10% stake

Sci-Tech Innovation Board Daily, March 31st (Reporter: Guo Hui)
Qiangyi Co., Ltd. has initiated a lawsuit to “target” the semiconductor company Taosheng Technology, which is currently in the sprint stage for an IPO on the Sci-Tech Innovation Board.

According to a recent announcement from Qiangyi Co., Ltd., the company received the “Notice of Case Acceptance” and related materials delivered by the Intermediate People’s Court of Suzhou, Jiangsu Province. Qiangyi Co., Ltd. filed a lawsuit against Shanghai Taosheng Electronic Technology Co., Ltd. (hereinafter “Taosheng Technology”) and Suzhou Jingsheng Micro-Nano Semiconductor Technology Co., Ltd. (hereinafter “Suzhou Jingsheng”) on the grounds of trade secret infringement.

The case has been officially filed and accepted, but no court hearing has yet been scheduled.

The case details show that Qiangyi Co., Ltd. accuses Suzhou Jingsheng of recruiting an employee who previously worked at Qiangyi, who possessed the technical secrets involved in the case and was under confidentiality obligations.

According to Qiangyi, after investigation, many of the defendant’s core technologies are substantially similar to the technical secrets claimed to be protected by the plaintiff. Qiangyi believes the defendant is suspected of infringing on the plaintiff’s trade secrets and violating the “Anti-Unfair Competition Law of the People’s Republic of China.”

Suzhou Jingsheng is a wholly owned subsidiary of Taosheng Technology. Taosheng Technology is currently in the final stages of preparing for an IPO on the Sci-Tech Innovation Board, and Suzhou Jingsheng is also a key entity in the planned fundraising project.

According to the Shanghai Stock Exchange official website, Taosheng Technology submitted its listing application materials on December 30, 2025. It entered the inquiry stage on January 21 of this year but has yet to complete its first-round inquiry response.

In its IPO prospectus, Taosheng Technology stated that as of the signing date of the prospectus, the company “does not have major disputes over ownership of main assets, core technologies, or trademarks, nor significant debt repayment risks, guarantees, lawsuits, arbitration, or contingent matters.”

Taosheng Technology is a company in the field of semiconductor testing interfaces, with products including chip testing interfaces and probe cards. Its main customers are downstream in the chip design, wafer manufacturing, packaging, and testing industries, providing key testing hardware solutions. Its testing products cover high-end digital chips such as CPUs, GPUs, AI chips, as well as advanced packaging chips represented by 2.5D/3D packaging, CoWoS packaging, PoP packaging, and Chiplet packaging.

According to publicly available market data disclosed by Yole, in 2024, Taosheng Technology’s revenue from chip testing interfaces ranked first domestically. Based on the company’s sales revenue, it is estimated that in 2024, the company’s sales will rank 11th globally in the field of chip testing interfaces.

Taosheng Technology and Qiangyi Co., Ltd. are engaged in fierce competition in the development and deployment of some product lines and in the application fields of testing products.

It is understood that Qiangyi’s main products—2D MEMS probe cards and thin-film probe cards—are high-end probe cards aimed at non-storage fields. Major clients include leading domestic and globally renowned chip design companies, wafer foundries, and packaging and testing firms. Meanwhile, the company has been actively expanding into the storage field, having validated 2.5D MEMS probe cards for HBM and NOR Flash, and developed sample cards for DRAM and NAND Flash.

In its lawsuit, Qiangyi requests the court to order the defendant to cease infringing on the involved trade secrets. Additionally, based on the sales revenue of Taosheng Technology’s MEMS probe card business in 2024 and the sales from January to June 2025, it demands that the defendant be jointly liable to compensate the plaintiff for damages amounting to 25.08M yuan.

Regarding the core technology sources of Taosheng Technology’s MEMS probe card business and the differences in core indicators, process routes, and design ideas compared to the technology claimed by Qiangyi, the reporter of Sci-Tech Innovation Board Daily sent interview emails to Taosheng Technology today (March 31), but has not received a reply as of press time.

The reporter also contacted Qiangyi Co., Ltd. to inquire about the substantial evidence currently held, considerations for choosing the litigation timing, and other related issues, but has not received a response as of press time.

An intellectual property lawyer told Sci-Tech Innovation Board Daily that lawsuits “targeting” technology companies for intellectual property issues during IPOs are quite common. “Launching litigation at this stage is usually aimed at delaying or even blocking competitors from going public or obtaining high settlement amounts in the short term.”

Taosheng Technology’s controlling shareholder and actual controller is Yin Lanyong, who directly holds 28.40% of the shares. He also controls 14.42% through Suzhou Houji and 2.01% through Haori Changjing, totaling 44.83% of the company’s shares directly and indirectly.

Public information shows that Yin Lanyong, born in 1971, is a Chinese national. He graduated from Southeast University and has worked at Motorola as a testing engineer in the semiconductor division, a system integration engineer, and a wafer testing engineer. He also worked at Electroglas International Inc. as a sales manager before founding Taosheng Technology in 2007.

Since its establishment, Taosheng Technology has completed three rounds of financing, with investors including Yida Capital, Anhui Railway Investment, Jiangsu High-tech Investment, Kunshan Guoke Investment, Suzhou Zhanshin Fund, Fudan Tech Venture, Shangqi Capital, and Junxin Capital.

The prospectus shows that before the listing, three investment platforms under Yida Capital directly held a total of 9.94% of Taosheng Technology’s shares; a mixed-ownership reform fund held 2.29%; Huafeng Measurement & Control, a Sci-Tech Innovation Board company, held 2.19%; and Jiangsu Equipment Fund held 1.37%.