After years of development, today’s Zhuhai chips cannot be underestimated, and these chip companies are also listed one after another. According to relevant statistics, in 2021, the integrated circuit industry in Zhuhai will achieve a main business income of 12.583 billion yuan, a year-on-year increase of 35.13%. Zhuhai, a little-known “small character”, has long ranked second in the Pearl River Delta and top ten in the country in terms of chip design industry scale.
The leader of Zhuhai chip listed companies
As an insider, when it comes to the development of Zhuhai Chip, no one should know about Actions Integration; if you are an outsider, you should know more about this company. In the 2000s, Actions integration almost swept the global MP3 market, Actions integration was called the king of MP3 at that time. Dr. Zhou Zhengyu, Chairman and CEO of Actions Technology, once said in an exclusive interview with I Love Audio Network: “Basicallyapplesell oneiPod, we would provide 3 chips and sell three times as many iPods at that time. “
With the big sale of MP3 chips, Actions of Zhuhai officially landed on Nasdaq in the United States on December 1, 2005. In 2006, Actions of Zhuhai became the largest supplier of MP3 chips in the world. But then the MP3 market was weak, which led to Actions losing year after year. Actions turned gorgeously into today’s Actions Technology. Actions Technology took over the baton of Actions and continued to cultivate the chip market on the land of Zhuhai.
Actions Technology, which is derived from Actions, starts again from the Bluetooth audio chip and the Bluetooth wearable chip.On November 29, 2021, Actions Technology was successfully listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange.The net amount of funds raised was 1.19 billion yuan. The prospectus shows that the main business of Actions Technology is the research and development of mid-to-high-end smart audio SoC chips, and the Bluetooth speaker chip is the company’s current main product and an important source of income.
In 2021, the operating income of Actions Technology is 520 million yuan, an increase of 28.23% over the same period; the net profit attributable to the parent company of the listed company is 83.94 million yuan, an increase of 248.50% over the same period of the previous year. In 2021, the company’s research and development expenses will be 130 million yuan, accounting for 24.95% of the company’s operating income. Today, talents are still an important force of Actions Technology. In 2021, the company has 222 R&D teams, accounting for 72.08% of all employees.
Whether it is Actions or Actions at the beginning, talent is the key to their success. What’s more profound is that in the next few years, many talents came out of Actions and later Actions, the seeds of dandelion were sown all over Zhuhai, and Zhuhai gave birth to more chip companies. The Allwinners, Yingjixin, Zhirong Technology, and Yizhi mentioned below are all created by people from Actions.
When Actions went public, in 2007, some senior executives left because of the issue of listing equity distribution and established Allwinner Technology. At the beginning of its establishment, its business mainly focused on MP4 and power management chips. Since the hardware of MP4 is similar to that of tablet PCs, Quanzhi began to develop tablet PCs. Like the action core in the MPS era, the tablet made Quanzhi technology popular.In 2015, Allwinner Technology was listed on the GEM of the Shenzhen Stock Exchange.
Later, Allwinner continued to adapt to the trend of the times, and now it is positioned as an excellent designer of intelligent application processor SoCs, high-performance analog devices and wireless interconnect chips. In 2021, Allwinner’s internal operating income was 2,065,356,800 yuan, an increase of 37.19% over the same period of the previous year; the net profit attributable to the owners of the parent company was 494,458,800 yuan, an increase of 141.49% over the same period of the previous year; The regular profit and loss net profit was 364.0422 million yuan, an increase of 339.37% over the same period of the previous year.
TWS chip manufacturers get together and go public
In addition to Allwinner Technology and Actions Technology, the other two chip manufacturers in Zhuhai, Lanxun and Jerry Technology, have benefited from the TWS Bluetooth chip and have already embarked on the road to listing.
inLanxun has been successfully listed on the Science and Technology Innovation Board on July 15, 2022.The main products of Lanxun are wireless audio SoC chips, which are mainly used in TWS Bluetooth headsets, non-TWS Bluetooth headsets and Bluetooth speakers. The company’s products are developed based on the RISC-V instruction set architecture. In 2021, the company’s wireless audio chip sales will be 856 million, and the company will occupy a relatively high market share in terms of sales volume. From 2019 to 2021, the company’s operating income was 646 million yuan, 926 million yuan and 1.123 billion yuan respectively, and the revenue growth rate was 43.40% and 21.23% respectively.
The company’s main business income by product category
(Source: Zhongke Lanxun’s listing prospectus)
Jerry Technology is also struggling on the road to listing. On June 22, 2022, Jerry Technology updated its prospectus again. This is the fourth time that Jerry Technology has hit IPO since March 2017. As the main provider of bluetooth audio chips, from 2018 to 2020, the sales volume of Jerry Technology’s bluetooth audio chips has accumulated to 2.7 billion, of which many explosive models have been born, such as AC690N, AC693N, and AC696N, which have sold more than 500 million in total. The company’s operating income from 2018 to 2020 was 1.33 billion yuan, 1.65 billion yuan, and 2.14 billion yuan respectively, with a compound growth rate of 26.55% in the past three years; net profit was 260 million yuan, 460 million yuan, and 390 million yuan, respectively. In the past three years The compound growth rate is 31.84%.
Source: Jerry Technology’s listing prospectus
But as we all know, the competition in the TWS Bluetooth chip market has been extremely fierce. In addition to Zhongke Lanxun and Zhuhai Jerry, players in this field include Qualcomm, Hengxuan Technology, Luoda Technology, Realtek Semiconductor, Original Phase Technology, Broadcom Integration, Actions Technology, Apple andHuaweiHiSilicon’s self-developed Kirin A1 chips are only used for its own brand related supporting products, and do not sell chips externally. The TWS development space has also entered a relatively saturated stage. According to IDC data, the global sales of TWS headsets will reach 310 million units in 2021, with a year-on-year growth rate of 33%. Compared with the nearly 260-fold growth in 2020, the growth rate has dropped significantly.
Therefore, the business of TWS Bluetooth chip factory needs to open up new markets. It can be seen from their listing and raising actions that wearable and IoT chips are the next aspect of their efforts, and the competition in the field of smart wear and health may be more intense in the future. .
For example, Actions Technology has continuously developed a new generation of high-end Bluetooth speaker chip ATS283XP and mid-to-high-end TWS Bluetooth headset chip ATS302X, and also released smart watch chip ATS308X in December 2021. The investment projects of Lanxun’s listed funds are the upgrading project of smart Bluetooth audio chip, the R&D and industrialization project of IoT chip products, and the R&D and industrialization project of Wi-Fi Bluetooth integrated chip. Jerry Technology is also working on WiFi IoT chips, wearable chips, health and medical measurement chips (as shown in the figure below).
List of projects using funds raised from the listing of Jerry Technology
(Source: Jerry Technology’s listing prospectus)
Power management chip manufacturers
The “fire” of the domestic power management chip track has also burned to Zhuhai, and Yingjixin and Zhirong Technology, which are in this track, are accelerating their IPOs. It is worth mentioning that many founders of Yingjixin and Zhirong Technology were born in Actions Integration and Allwinner Technology.
On April 19, 2022, Yingjixin was listed on the Science and Technology Innovation Board.Yingjixin is a digital-analog hybrid chip manufacturer. Its main business is the research and development and sales of power management and fast charging protocol chips. In 2018, 2019, 2020 and January-June 2021, the company’s operating income was 210 million yuan, 340 million yuan, 380 million yuan and 350 million yuan respectively, with a compound growth rate of 34.04% from 2018 to 2020 . According to its listing prospectus, there were about 230 product models that generated sales revenue during the reporting period, the number of corresponding product sub-models exceeded 3,000, and the number of chip sales reached 1.728 billion.
Yingjixin’s main business revenue
(Source: Yingjixin prospectus)
The founding team of Yingjixin plans to start an independent business in the field of power management chips after resigning from Actions Integration in 2013. Details are shown in the figure below. As of June 30, 2021, Yingjixin has 158 R&D personnel and 257 employees in the company, accounting for 61.48%.
Relevant industry background of some senior executives of Yingjixin
(Information source: Yingjixin prospectus)
On April 15, 2022, Zhuhai Zhirong Technology’s application for listing on the Science and Technology Innovation Board has been accepted.Zhirong Technology is a digital-analog hybrid chip design company focusing on the field of power management chips, including lithium battery fast charge and discharge management chips, multi-port output dynamic power adjustment chips and fast charge protocol chips, accounting for the proportion of main business income respectively. were 97.32%, 98.77% and 99.12%, and the gross profit margins of the main business were 41.99%, 46.96% and 53.04% respectively. However, the current products are relatively concentrated and the types are relatively small, only more than 40 kinds. In 2021, the company’s main business income will be 223.3616 million yuan. Other products are mainly wireless charging chips, smart encryption chips and interface chips, etc., and the income amount is small.
2019-2021 revenue list of Zhirong Technology’s main business
(Source: Zhirong Technology’s listing prospectus)
Many executives of Zhirong Technology are also from Actions Integration and Quanzhi Technology. For details, please refer to the figure below. As of the end of 2021, Zhirong Technology has a total of 59 R&D personnel, accounting for 45.74% of the total number of employees, including 22 with a master’s degree or above.
Industry background of some senior executives of Zhirong Technology
(Information source: Zhirong Technology Prospectus)
Zhuhai’s potential “core” force
However, in the fertile chip soil of Zhuhai, there are still many chip manufacturers that are ready to go or have market potential.
On June 29, 2022, Zhuhai Boya Technology plans to IPO. Boya Technology focuses on the field of high-end general-purpose flash memory chips, and its main products are NOR Flash chips. From 2019 to 2021, the company’s operating income will be 110 million yuan, 160 million yuan and 260 million yuan respectively, with a compound growth rate of 48.59%. The shipments of NOR Flash products were 267 million, 352 million and 538 million respectively. The company has successfully developed a 50nm process 256Mbit capacity product in 2020, and has successfully mass-produced and sold it. In 2021, the 50nm process 1Gb capacity product has been successfully developed and will be mass-produced and sold in 2022. It is actively introducing large-capacity products for many customers. . However, the company is actively deploying MCU and its peripheral supporting chips, as well as NAND Flash memory chips.
The company’s main product sales are as above
(Source: Boya Technology Prospectus)
In the field of storage, Zhuhai also has Miaocun Technology, a memory controller chip manufacturer established in 2017, which mainly focuses on the field of NAND Flash.
Jihai Semiconductor, which was born out of Apex, is another role that cannot be ignored in the Zhuhai chip market. According to official information, Zhuhai Jihai Semiconductor Co., Ltd. is an integrated circuit design enterprise dedicated to the development of industrial-grade/vehicle-grade microprocessors, high-performance analog chips and system-level chips. Its headquarters is Ninestar Co., Ltd. The Jihai team has 20 years of experience in integrated circuit design and embedded system development capabilities, and can provide customers with core and reliable chip products and solutions to achieve accurate sensing, secure transmission and real-time control, helping customers in smart home, high-end consumer electronics, industrial Expansion and innovation in the fields of control, automotive electronics, smart energy and communication facilities.
Inossec is a chip supplier in the field of gallium nitride power semiconductors. On February 16, 2022, Innosec completed nearly RMB 3 billion in Series D financing. Inossec was established in 2015. According to Trendforce’s 2021 data, Inossec’s global market share of GaN power products has risen to 20% in one fell swoop, jumping to the third place in the world, ranking second only to Nano and PI. In addition, according to the “2022 Power GaN” annual report released by Yole’s compound semiconductor team, Innosec has grown into a leading gallium nitride power semiconductor company in mainland China. At the national strategic level, Innosec has been listed by the four national ministries and commissions as key integrated circuit companies under 0.25 micron, and it is also the first domestic third-generation semiconductor project guided by the National Development and Reform Commission.
Yizhi Electronics, which was registered in Zhuhai in 2016, is a rising star in Zhuhai chips in recent years. It is a system solution provider with AI machine vision algorithms and SoC chip design as its core. As early as 2019, the company mass-produced end-side AI SoC chips equipped with self-developed NPUs, and has helped many partners to achieve large-scale mass production of AI products. At present, it has obtained the Northern Lights, Datai,Intel, China Construction and other investment institutions. It is worth mentioning that Chen Feng, the founder and CEO of Yizhi Electronics, can be said to be a witness to the rise of the chip industry in Zhuhai, from the beginning of Yali to Actions to Allwinner Technology.
Then there is Zhuhai Yiwei Semiconductor in the field of robot chips. Zhuhai Yiwei was established in 2014. It is a robot technology and a large-scale high-integration digital-analog hybrid chip. The company focuses on the research and development of robot environment modeling and positioning and navigation (SLAM) core chips. At present, the company’s main products include robot main control chips, high-performance analog devices, fast charging protocol chips, vehicle controllers, etc.
In addition, there is Shengsheng Microelectronics, a start-up company established in 2017 and dedicated to creating a first-class MCU chip ecosystem for the innovative application of IOT terminal nodes; Zhuhai Jusheng Technology is also focused on the MCU field; it is committed to industrial-grade, automotive Zhuhai Taiwei Electronics, which developed high-level core processor chips; founded in 2018, focuses on the research and development of highly integrated millimeter-wave, terahertz chips and related radar modules. Zhuhai Haiqi Semiconductor and so on.
In the past, when we talked about China’s chip industry, we used to talk about Shanghai, Beijing, and Shenzhen. In recent years, Hefei, Nanjing and Guangzhou have also been repeatedly mentioned. But in fact, since 2000, Zhuhai has become an indispensable and important player in China’s chip market, especially in the consumer electronics chip market. It can be said that “Zhuhai Core” has become an important part of “China Core”.
However, based on the above, chip companies in Zhuhai need to move from “small and beautiful” to “big and strong” to achieve a new leap. As the number of listed chip companies increases, this gives them a better channel to rise.