At present, a new round of scientific and technological revolutions and industrial changes, with the integration of information technology and manufacturing as the main features, are gestating and escalating. More than 90% of the information in China is transmitted through optical fibers, and optical communications and related optoelectronics industries are becoming the driving force for information. The new economic growth point of the industry, and the photonic chip is the core point of technology.
May 17th, jointly supported by Chinese Academy of Sciences, Xi'an Municipal People's Government, Xi'an West Xianxin District and Zhongkechuangxing, Zero2IPO Research Center, China Academy of Science Innovation Strategy Institute and MIT Science and Technology Review. The White Paper on the Development of China's Hard Science and Technology Industry Investment (hereinafter referred to as the "White Paper") was released, which also analyzed the relatively hot chip industry.
According to the white paper, domestic optical communications companies have insufficient upstream and downstream core optical devices and optical chip R&D capabilities. In the future, M&A and recombination will be frequent in the upstream areas of optical communications covering modules, devices, and chips. Vertical integration and integration of equipment vendors from bottom to top will also be implemented. Become a trend.
Some companies have broken the competitive landscape
Technology is becoming an innovation force in the modern era. Words such as 'hard technology' are also emerging. It is worth mentioning that the word 'hard technology' originated in Xi'an. Dr. Optics of Xi'an Institute of Optics, Chinese Academy of Sciences, initiated the creation of Zhongke Chuangxing. Partner Mi Lei proposed. Mi Lei stated at the promotion conference of Xi'an Hard Science and Technology City on May 17th that as China experiences from the original demographic dividend to the technological innovation bonus era, in the next 30 years, technological entrepreneurship will be the development of China’s economy. The main theme, scientific research institutes will become an important force for China's innovation and entrepreneurship.
The White Paper released at the conference shows that compared to traditional electronic chips, photonic chips have outstanding advantages of ultra-high speed and ultra-low power consumption. According to market research organization YOLE, the global light chip and its packaged device market will reach 1.2 in 2018. Billion U.S. dollars, will exceed 700 million U.S. dollars by 2024, with a compound annual growth rate of 38%.
However, "Daily Economic News" reporter combed the "White Paper" and found that since optical communications chips are mainly dependent on imports, China's optical device companies have high profit margins in spite of rising market demand, and chips have become one of the downstream companies' competitiveness. Constraints.
According to the White Paper, China's optical device market was estimated to be US$4.23 billion in 2016, accounting for 42% of the global market. According to the optical chip market, which accounts for 3%~5% of optical components, the domestic optical chip market should be 1.3. Between 100 million and 210 million U.S. dollars, but considering that the domestic high-end chips of optical component manufacturers are all based on the actual import situation, the actual market size is much smaller.
The overall strength of China's optical devices and chip companies is relatively weak, and optical device manufacturers are mostly concentrated in mature technologies. The low-to-medium-end products with low thresholds are mainly based on assembly OEMs. The added value of products is not high, and the homogeneity is severe. The way to increase production capacity and reduce labor costs gains advantages in market competition.
However, in recent years, with the support of relevant policies and funds, some companies have begun to break the low-end competitive landscape in the optoelectronics industry, and have gradually made breakthroughs in high-end areas such as active devices with 10G or higher speeds and 100G optical modules. At the same level, Huawei Hass, ZTE, Hisense, Fiberhome, Xiamen Youxun and other companies with independent research and development capabilities have emerged. Among them, Huawei Hass has taken the lead in the field of optical communications chip design and has mastered 100G optical module technology. .
Industry chain mergers and acquisitions will be frequent
Along with Huawei, Fiber Optic Communications and other optical communications equipment manufacturers have participated in the global market, optical communications upstream optical device production capacity has gradually tilted to the domestic, promoting domestic manufacturers in the global optical devices, optical chip market share.
Regarding the direction of high-end development of domestic chips in the future, Wang Yanhui, secretary general of the China Semiconductor Investment Union, told the reporter of the “Daily Economic News” that in the future, the domestic optical chip manufacturers can acquire core technologies through overseas acquisitions; secondly, relying on domestic conditions. Accelerate the integration and expand the status of the industrial chain.
This is also reflected in the “White Paper.” The White Paper shows that domestic optical communication companies generally have insufficient capabilities in upstream core optical devices and optical chip R&D, covering optical communications upstream of modules, devices, chips, etc. Frequent.
Specifically, one is the acquisition of upstream optoelectronic chips and wafer fabs by optical module manufacturers, which will reduce costs through vertical integration and provide one-stop service for users. Second, companies will integrate their counterparts through outreach and acquisition to shorten their own products. The product launch cycle; Third, the use of mergers and acquisitions to form a scale advantage, to seize market share, to avoid price wars caused by excessive competition; Fourth, to enrich product lines, provide differentiated products, and continue to introduce new products through continuous research and development to face homogenous Competition, gaining the right to speak in pricing.
In addition, vertical integration of equipment vendors from the bottom up will also become a trend. In addition to the optical module manufacturers in the upstream optical chip area for mergers and acquisitions, the equipment integration companies in the middle reaches of the optical communication industry chain also began to manufacture optical modules, and through mergers and acquisitions Actively strengthen the research and development of high-end optical chips.
For example, as a follower of the 100G market, Cisco began to manufacture 100G optical modules for its own systems by acquiring upstream suppliers. This strategy enables Cisco to have the core technology of 100G optical devices to achieve competitive advantages while also reducing costs. profit.
Talking about the future development of China's optical communication chip industry, the White Paper shows that it may mainly come from the upstream upstream optical device companies. In the case where the upstream chip and downstream system equipment are relatively concentrated, the optical device manufacturers have Stronger momentum to expand upstream, some of the stronger optical component manufacturers will achieve a breakthrough in the upstream.