The latest strategy for price conversion is not only able to get rid of the unfair competitive pressure at which mainland IC design companies can easily take a bargain, but also make the whole process of internal R & D resources investment and recycling more positive and positive. This is of great importance to medium and long term operation of the company Stable growth will be greatly helpful.
In the face of over 1,300 IC design companies in mainland China, coupled with deliberately resourced inclinations by mainland industries, officials and academics, IC design companies in Taiwan have almost vanished in the past to resist foreign investment and strive to reduce costs. Do.
Even in some markets, ICs, MCUs, voice-driven toy chips and driver ICs with analog ICs, MCUs, voice-chip ICs and ICs of analog ICs of analog ICs, ICs, MCUs, analog ICs and ICs of IC design companies in Taiwan are obviously out of comparison with their competitors in the market. Intense chip business, Taiwan Department of IC design industry has obviously played no longer.
In fact, this is also a key factor in stimulating the IC design industry in Taiwan to find ways to upgrade and innovate. Only in the heart of IC design industry in Taiwan, how can we start?
At present, we can see more successful cases in which small-scale IC design companies in Taiwan mostly destroy and re-layout, cultivate niche technologies, niche products and niche markets. As for medium and large-scale IC design companies, they are trying hard to develop second and third Three product lines to help the company revenue and profit growth, and avoid the risk of unnecessary recession.
Regardless of the transformation, the strategy at the top of the list seems to be significantly different from the idea of pursuing revenue growth momentum in the past. Even more deliberately choosing a high-priced, high-margin and profitable chip market to operate it seems to have become Taiwan's IC at this stage The Newest Learning in the Designing Company's Transition.
Take MediaTek as an example. The emerging chip market with high gross margins such as IoT, wearable devices, smart voice devices and automotive electronics over the years has allowed the interiors to steadily find a rejuvenation during the precarious period of 2017 Road, and smoothly in the second half of 2017 saw a turning point in the gross profit margin rebound.
As for Lian Yong and Realtek also constantly expanding TV, Internet of Things, SSD, Type-C and other new chip business, the gross profit margin of new products must be higher than the existing chip business, the short-term market demand can be less than the amount of the first volume Instead of simply pursuing revenue increases as they used to be, they are seeking a more organic blueprint for healthy growth and investing R & D resources in direct proportion to their returns. This is a good way to effectively avoid vicious and unnecessary competition.
Facing the global semiconductor industry Moore's Law (Moore's Law) is likely to begin to slow down the new generation, the transition has been the latest task for each IC design company in Taiwan IC design industry in the accumulation of nearly 40 years of technology and product development experience, R & D talents with excellent merit foundation is still solid, with high-quality, high yield of the rules of the chip specifications, there is indeed a good upgrade conditions.
In particular, IC design traders are no longer in the pursuit of excessive revenue growth alone and the rate of growth, but more emphasis on the company's profitability upgrade, a more healthy transformation strategy may need more hard work, but in the process In the construction of the tangible and intangible barriers to entry, not anyone can arbitrarily copy shortcut to grab go.