Xiao Shengli, credited with revitalizing a struggling semiconductor manufacturer in Northwest China, was recently recognized as an outstanding member of the Communist Party of China during a ceremony in Beijing marking the Party’s 105th anniversary. His decades-long commitment to the semiconductor industry and his role in transforming the Yonghong Equipment Factory in Tianshui, Gansu province, highlight both personal dedication and a broader national effort towards technological self-reliance.
In 1994, the state-owned Yonghong Equipment Factory was facing severe financial distress. Debt had exceeded 90 million yuan (approximately $13.24 million), wages had not been paid for three months, and production lines were mostly idle. Workers were demoralized, and many were leaving the company. At that critical juncture, Xiao accepted the position as factory director, pledging to stabilize the operation and revive its prospects.
To implement needed reforms, Xiao undertook difficult measures including layoffs and efficiency improvements. His efforts began within his own family, persuading his wife, who held a management role, to retire early and sending his son to seek employment elsewhere. These personal sacrifices helped build trust and encouraged the remaining workforce to rally behind the transformation. Xiao and his core team also proactively sought to regain customer orders by traveling extensively, often under austere conditions.
A key strategic move involved focusing on integrated circuit packaging and testing. In 1996, the factory invested over 4 million yuan to upgrade its plastic-encapsulated integrated circuit production line, leading to a milestone in sales revenue surpassing 10 million yuan. This pivot laid the foundation for long-term growth.
Today, the company that emerged from Yonghong’s restructuring, Tianshui Huatian Electronics Group, has become a major player in the semiconductor sector. By the end of 2025, its annual packaging capacity expanded from around 200 million units in the early 2000s to 90 billion units. The firm holds 778 patents, including 362 domestic invention patents and 40 international ones. It ranks third in semiconductor packaging and testing within mainland China and fifth globally, underscoring its significance in the industry.
Xiao, a 79-year-old graduate of Xi’an Jiaotong University, has remained deeply involved with the company throughout his career. Emphasizing both the responsibility he feels towards the thousands of employees who have contributed to the enterprise’s success and the strategic importance of the semiconductor sector to China’s technological ambitions, he views his work as more than a job, describing it as a lifelong mission.
He highlighted the role of talent development as central to the company’s progress. Huatian has cultivated over 3,000 skilled workers through internal training programs and established an engineering master’s degree in partnership with Xi’an Jiaotong University specializing in packaging and testing. This approach aims to sustain innovation domestically and counter the perception that technological expertise must come from more developed coastal regions.
Xiao expressed satisfaction in seeing the enterprise thrive across generations, viewing its continued development as a source of personal fulfillment and a contribution to China’s pursuit of semiconductor self-sufficiency.