In recent years, China has intensively entered the field of power management chips. In addition to accelerating technology research and development and capacity investment, leading companies have also begun to accelerate mergers and acquisitions.
In terms of investment and shareholding, since 2019, many investments have been made in the power management field, with Xiaomi and Huawei also participating. In May 2019, SHNX Semiconductor Technology received 100 million yuan in Series B financing, and Shunwei Capital, which Lei Jun participated in, participated in the investment; in August 2019, HZJH Microelectronics Technology was invested by Hubble, a wholly-owned subsidiary of Huawei; March 2020 , AHDK Semiconductor Technology announced the completion of Series A financing; in addition, WXXP Microelectronics Technology has launched a sci-tech innovation board listing, and large funds have made a surprise investment.
In terms of merger and acquisition integration, in September 2019, BJSB Microelectronics Technology announced that it intends to acquire a controlling stake in SHYT Technology. Prior to this, the former has acquired 28.7% of the latter; in October 2019, SHBL Technology announced that it intends to acquire NJWM by cash payment. 100% equity held by shareholders. Both SHYT and NJWM have certain technology and market accumulation in the field of power management.
New demand drives the rapid growth of the power management chip industry
China’s power management chips have long been dominated by imported brands. From the perspective of market share, Texas Instruments occupies more than a quarter of the market share, about 21%, Qualcomm 15%, ADI 13%, Maxim (Maxim) accounted for 12%, Infineon accounted for 10%, and other manufacturers accounted for 29%.
In recent years, China's power management chip market has continued to grow. The power management chip market has grown from 43.068 billion yuan in 2012 to 68.153 billion yuan in 2018, with an average annual compound growth rate of 6.78%. In the future, with the expansion of applications in emerging fields and import substitution, it is expected that the market scale of China's local power management chip technology companies will grow at a relatively rapid rate.
The power management chip is an integrated power management circuit. The main functions are voltage stabilization, buck-boost, constant current, AC-DC conversion, etc. It is divided into linear regulator (LDO), charge pump (Charger-pump) chip, DC-DC Converter (DC-DC), AC-DC converter (AC-DC), LED driver chip, etc. Typical applications are chargers and LED drivers for consumer electronics such as mobile phones and notebook computers. For example, the voltage stabilizer steps down the 220V mains and outputs a stable DC low voltage for notebook computers; the LED driver boosts the internal power supply of the mobile phone to drive the camera flash.
Consumer electronics' demand for low-power power saving, industrial demand for power-saving devices with high power consumption, and new demands in emerging applications such as 5G, the Internet of Things, smart meters, electric vehicles, and smart lighting promote the growth of the power management chip industry accelerate.
In terms of consumer electronics, with the increase of audio, camera and other functions, consumer electronics have become more and more complex. In addition to increasing power consumption, electronic products also need to support more voltages. Therefore, power management chips need to be able to increase energy conversion While increasing the efficiency and increasing the standby time, the integration is improved to support multiple voltages. In addition, as the power density of lithium batteries slows down, they can only seek breakthroughs from power management chips. Therefore, manufacturers need to continue to introduce more complex functions and higher efficiency. , Smaller power management chips, promote the growth of the entire industry of power management chips.
In the industrial field, because energy consumption mainly comes from motors and lighting, motors are mainly pumps, fans, compressors, conveyors, etc. The energy consumed by motors accounts for almost 80% of industrial power consumption. Therefore, the requirements for energy saving in the industrial field have prompted power management chips to continuously improve conversion efficiency. For example, the use of variable speed motors can save 40% of energy consumption, and the use of high-efficiency switching power supplies can save 35% of energy consumption, all of which are supported by more advanced power management chips.
In terms of emerging applications, new requirements such as 5G, Internet of Things, smart meters, electric vehicles, and smart lighting will continue to promote the development of power management, such as LED lighting from the initial simple logic control to today's more personalized requirements such as dimming and color changing , Put forward more complex intelligent control requirements for power chips. In addition, in order to adapt to the portability trend of some devices, the device power supply mode has changed from adapter power supply to battery power supply, which brings a lot of chip requirements for battery-powered systems.
The products and technologies of Chinese power management chip technology companies have their own focus
In the Chinese market, the competition of power management chip companies is relatively scattered. The main manufacturers include BJSB Microelectronics, HZXL Semiconductor Technology, SHNX Semiconductor, WXXP Microelectronics, SHYT Technology, SHBL, NJWM Electronic Technology, SZXZ Technology, etc., and the products of various manufacturers and The technical focus is also different.
BJSB Microelectronics Technology
BJSB Microelectronics is currently the only semiconductor company listed in China’s A-share market that focuses on analog chip design and its products cover the two major areas of signal chain and power management. Power management chip products include AMOLED display power chips, micro-power LDOs, high-efficiency and low-power consumption DC/DC converters, 7A high current boost converters, lithium battery charging and protection management chips, OVP, motor drive chips, load switches and other products.
BJSB believes that in addition to the traditional analog chip market, the emergence of new applications such as the Internet of Things, smart home, new energy, artificial intelligence, and 5G also provides new development opportunities for analog chips. In 2019, the company closely followed the market development trend, actively deployed and worked hard to develop in the above-mentioned emerging fields. The company's multiple power management chips (including lithium battery protection and charging management) were used in applications such as smart speakers, TWS Bluetooth headsets, and drones. Chips, motor drive chips, LDOs, etc.).
In response to the market opportunities brought by 5G, BJSB previously stated that 5G construction and related applications will be a huge driving force for the growth of the analog chip market, and signal chain and power management products will be further developed and applied in 5G equipment and terminals. The large-scale deployment of 5G equipment and the tide of 5G mobile phone replacements will further increase the demand for analog chips in the communications field and bring more opportunities for the company.
HZXL Semiconductor Technology Company
Founded in 2000, HZXL is a professional analog IC design company, one of the world's leading small package, high voltage and high current IC design companies. HZXL's four core technologies-wafer process, IC design, system architecture and packaging technology, make its product area generally more than 30% smaller than its competitors, and its efficiency is 5%-10% higher. HZXL launched the first energy-saving chip in 2009, and has since been widely used in LED lighting, notebook computers, solid state drives, set-top boxes and other products.
HZXL was listed on the Taiwan Stock Exchange in 2010, "challenging" the local pillar industry-chip design, and became the first Chinese mainland semiconductor company to be listed in Taiwan. HZXL, which is closely related to the domestic demand market, even caught up with MediaTek, the global driver IC leader, and became the third most profitable IC design company in Taiwan's capital market.
SHNX Semiconductor Technology
SHNX is a leading analog chip design company in China, focusing on charging, interface, protection and power management related to lithium batteries.
In an interview with Hay Think, SHNX’s CTO Bian Jianjian said, “SHNX’s current annual shipments are hundreds of millions. In 2019, the company will focus on the new generation of high-efficiency power management solutions represented by Buck-boost and charge pumps. Breakthrough progress has been made." SHNX launched China's first charge pump charger at the end of 2019, breaking the foreign monopoly of super fast charging, and has been recognized and evaluated by many major mobile phone customers.
SHNX will continue to focus on the field of battery charging and discharging, continue to expand its product line, and launch third and fourth generation products based on the existing charge pump technology and buck-boost technology. SHNX aims to strive towards the leading position in the subdivision field, insist on making the overall battery charging and discharging program thorough, and provide customers with stable, efficient and high-quality domestic solutions. Only after the existing product line has been refined and thorough, the company will consider laying out other areas.
SHBL Microelectronics Technology
SHBL was established in 1988 and successfully listed on the Shanghai Stock Exchange in 1998, becoming the first listed company in China's integrated circuit industry.
In 2019, SHBL increased its R&D investment for high-voltage and high-current power management products, low power consumption, and digital-analog hybrid power management products. The medium and high voltage 40V series DCDC and LDO products successfully made breakthroughs in the automotive field. Through product upgrades and the introduction of new products in the application markets of network communications, set-top boxes, LCD TVs, security, and vehicle peripherals, it provides customers with competitive power management products, which guarantees the continuous improvement of the company's market share and industry status. At the same time, the company has gradually introduced power management products that meet market needs in markets such as 5G, Internet of Things, smart meters, and automotive electronics. In 2019, the company's overall sales of power management products increased by approximately 10% over the same period last year.
WXXP Microelectronics Technology
WXXP is a company specializing in the design of analog and digital-analog hybrid integrated circuits focusing on power management. Its main products include AC-DC, DC-DC, Motor Driver, etc., which are widely used in smart home appliances, mobile phones and tablets, charging & adapters, LED lighting, smart meters, industrial control equipment and other fields. At present, the company has developed into a leading supplier of power chips in the domestic home appliance industry and handheld device industry.
The company has applied for listing on the Science and Technology Innovation Board in July 2019. On the eve of the application for listing, the National Fund and other institutions rushed to buy shares at a cost of 20 yuan per share. The prospectus shows that the National Big Fund holds 7.5 million shares of Chipengwei, accounting for 8.87% of the company's total share capital, making it the second largest shareholder. The company plans to raise 566 million yuan this time for the development and industrialization of high-power power management chips and industrial-grade driver chips.
Industrial drive chips are the product line that Chipeng Micro has launched in recent years and plans to vigorously develop. The industry standards are strict, the circuit design technology threshold is high, and the gross profit margin is high. Chipeng Micro said that in the next three years, the company's goal is to consolidate and strengthen the company's domestic industry position in power management chips. By building a R&D center, expanding the R&D team, strengthening independent innovation R&D capabilities, expanding product lines, improving product performance and broadening product application areas, continuous development with higher efficiency, lower power consumption, higher integration, better intelligent interaction, and output Power management chip products with more complete power range enhance the company's core competitiveness.
SHYT Semiconductor Technology
SHYT is a Chinese power management chip design company, focusing on DC/DC technology. SHYT took the lead in launching the industry's first synchronous boost/buck IC in 2009, and expanded its shipments to 20KK per month in 2012, successfully occupying a place in China's power supply market.
The power management chip provided by SHYT covers many fields such as smart phones, MIDs, set-top boxes, LCDTVs, etc. It has a leading position in the field of set-top boxes in China. The company has a total of more than 280 power management chip products on sale. In 2019, the revenue was 258 million yuan and the net profit was 80.54 million yuan, a year-on-year increase of more than 100%.
In September 2019, BJSB announced that the company is planning to purchase a controlling stake in SHYT Semiconductor by issuing shares and paying cash. On December 24, 2018, BJSB completed the acquisition of a 28.7% stake in SHYT Semiconductor with its own funds of 115 million yuan. BJSB stated at the time that SHYT Semiconductor and BJSB have different product categories and application areas, and the acquisition of its shares belongs to analog chips. Horizontal integration of business areas.
SZXZ Semiconductor Technology
SZXZ is a wholly-owned subsidiary of SZQK Technology. Founded in 2009, it is mainly engaged in high-performance analog chip design and system technical support services. It is a leading supplier of power chips and analog devices in China. The current main products include power management units and battery management units. , Audio codec, interface single chip solution, etc.
SZQK Technology's 2019 annual report shows that the company's power management chips are mainly AXP series, including AXP152, AXP155, AXP192, AXP228, AXP288, AXP2402, AXP2585, AXP2601. AXP series chips are widely used in tablet computers, 2 in 1 tablet computers, TV boxes, driving recorders, sports DV, wireless storage devices, smart hardware, handheld payment terminals, e-books, micro projectors and other products.
SZXM Microelectronics Technology
SZXM is an enterprise engaged in the design of high-performance analog and digital-analog hybrid integrated circuits, targeting consumer electronics, communications, computers, robotics, drones, power electronics, medical electronics, etc.
SZXM has an excellent performance in the field of fast charging. Zhao Xin, CTO of SZXM, said in an exclusive interview with Hay Think that SZXM’s current 200V high-voltage synchronous rectifier chips have been shipped more than 30 million pieces, and GaN driver chips with frequencies exceeding 500KHZ will be launched this year. . He believes that domestic analog power chips will be promising in emerging applications such as fast charging, and SZXM is making efforts to become the preferred domestic alternative chip brand in the fast charging field with its solid technical strength.
NJWM Electronic Technology
NJWM is an enterprise specializing in the research, development and sales of analog integrated circuit chip products. Products have been widely used in multiple fields such as information appliances, wireless communications, digital communications and network technology. NJWM is a major IC design company under China Electronics (CEC), and Huada Semiconductor is currently the company's largest shareholder.
NJWM is committed to developing power management products, mainly including LDO series, DC/DC series, LED DRIVER, AC/DC series, lithium battery management, voltage detection series, digital-analog hybrid series, audio power amplifier IC series, etc., and are used for electronic equipment The main chip and related devices provide high-quality and stable power solutions.
On the evening of October 18, 2019, SHBL announced that the company intends to acquire 100% of the shares held by NJWM shareholders by cash payment, with a total transaction price of 360 million yuan. Through this acquisition, SHBL's power management business will be significantly improved in terms of sales scale, customer quality, product line integrity, and technical level. In addition, NJWM has three product lines: AC series, DC series, and digital-analog hybrids, which can be combined with SHBL The products form a strong complementarity.
HZJH Microelectronics Technology
HZJH was established in 2013, and currently the company has products such as battery management, LED lighting, and DC/DC converters. On March 27, 2020, Hangzhou Xihu District held the first quarter of the major projects and the key investment projects of the contract signing activities, including the HZJH high-end power management chip global manufacturing base project, the project has a total investment of 800 million yuan.
It is worth noting that in 2019, HZJH received strategic investment from Hubble Investment, a wholly-owned subsidiary of Huawei. Prior to this, HZJH had already had multiple rounds of financing.
AHDK Semiconductor
AHDK is mainly engaged in the design, production, manufacturing and sales of high-frequency and high-efficiency green power ICs and high-power power ICs. The company once launched a synchronous rectifier chip in 2015, and quickly accumulated an exclusive competitive advantage with its unique "two-pin" packaging technology pioneered in the world, and currently maintains a domestic market share of more than 30%.
On March 26, 2020, AHDK announced that it has received financing led by Yida Capital. This financing will be mainly used for the mass production of gallium nitride chips, the quality improvement and expansion of synchronous rectification chips, and further consolidate the design of Dongke semiconductor chips And packaging and testing capabilities.
AHDK founder Xie Yong said before that, after years of development, AHDK currently has 12 packaging production lines operating simultaneously, with a monthly output of 100 million chips. At the same time, the company is actively preparing to build a key laboratory for reliability analysis, creating an integrated circuit enterprise platform, serving peripheral packaging and testing companies, and helping to improve the level of domestic chips.
Future domestic market share will further increase
The future domestic power management chip market has three main characteristics: one is specialization, such as SHNX, which is refined in battery management, provides customers with a complete set of solutions, and continues to accumulate in the same segmented field to improve product quality; the second is efficiency At present, the number of base stations is increasing, which requires more efficient solutions to reduce overall power consumption; the third is miniaturization, and various new technologies, such as new topologies, will help miniaturize power supplies.
At present, the biggest challenge in the field of power management chips in China is that Chinese power management chip manufacturers need to complete decades of accumulation by leading foreign technology companies in a short period of time, perhaps five or ten years. In addition to accumulation, we also need to be able to continue to innovate. If we want to be able to make continuous progress, we still need to form continuous and creative technological development, which will have some difficulties in technology accumulation and management.
Power management chip manufacturers still need to be more focused when making products. Power management is a very broad concept. The products involved range from simple to complex, from low to high prices. Some product categories have low thresholds, so quality is uneven Uneven, many domestic manufacturers are still stuck in low-price and low-quality competition, which is very unhealthy for the development of the industry.