According to the micro-network news, under the influence of the ZTE event, the domestic demand for chip replacement has continued to heat up. Semiconductor concept stocks have also been intensively researched by institutions, including Jie Jie Microelectronics. Recently, Jie Jie Microelectronics ushered in the Galaxy. Funds, Wells Fargo Funds, E Funda and many other organizations came to investigate. Jie Jie Microelectronics Directors, Dong Mi, Chief Financial Officer Shen Xinxin, and Shen Zhipeng, Corporate Securities and Investor Administrator, answered institutional investors.
Jie Jie Microelectronics was established in March 1995. It plans to build a 3-inch chip production line in 1999. In 2008, it will establish a 4-inch chip production line. The packaging production line will complete the technological transformation. In 2013, it will establish a diode chip production line and mass production in November that year. And sales, set up a diode package test production line in 2014, and cooperated with the Institute of Microelectronics of the Chinese Academy of Sciences to build a 'wide bandgap power electronic engineering technology research center' in 2015, and planned to build a MOS business unit in 2017, and raise investment projects in 2018. A semi-conductor protection device is put into production, and domestically-made alternative imports are implemented in synchronization with customized production and personalized services to increase market share and brand influence.
The following is a Q&A and investors Q&A:
Jie Jie Microelectronics: Introduce the progress of the company's fundraising projects.
Investors: One of the company’s wholly-owned subsidiary, Jie Jie Semi-Conductor Investment Protection Project, has completed trial production last year. The production capacity will be gradually released in 2018 and is expected to reach expectations in the second half of the year; the power semiconductor production line project is expected to be in 2018. The pilot production will be completed in the second half of the year and will be released gradually in 2019. The project of the Engineering Technology Research Center is expected to be completed within the year.
Jie Jie Microelectronics: Please tell us about the domestic and foreign markets of thyristors and the ratio of localization.
Investors: The use of thyristors is very extensive. The market size of thyristors in the world is around 6 billion yuan. The market size of domestic thyristors is about 3 billion renminbi, including about 2 billion renminbi below 45A. The size of the domestic market accounts for around the world. About half of the scale, at present more than 70% of the thyristor products need to be imported, and the space for domestic alternative imports in the next few years is still large. Jiejing Microelectronics' thyristor products can account for more than 45% of the domestic thyristor products, and the current market share. After ranking in ST, NXP, we still need to make continuous efforts to make domestic products substitute for imported products.
Jie Jie Microelectronics: Why did the company's gross profit margin decline in the first quarter of 2018?
Investors: The main reasons for the decline in the company's gross profit margin in the first quarter of 2018 were: The semi-conductor protective device production line of the investment project undertaken by Jiejie Semiconductor, a wholly-owned subsidiary of the company, completed trial production in the fourth quarter of 2017. During the ramp-up period, the production process and equipment commissioning also require a run-in cycle, and the gross profit margin has been affected to a certain extent by the use of fixed-cost amortization and operating costs that are not yet sufficient for production capacity utilization.
Jie Jie Microelectronics: The current situation of the company's MOSFET products?
Investors: The MOSFET business division was established in 2017. The R&D team is located in the sensor industry park in Wuxi City. It is mainly responsible for chip design and product planning. The chip is flown through SMIC (8-inch line), etc. Qidong (Jiejie Microelectronics) will generate a small amount of sales in 2018, and its performance expectation will also require a longer period.
Jie Jie Microelectronics: Why is the company's gross margin level so high?
Investors: Through many years of technology accumulation, product upgrades, customized production, personalized services and alternative imports, the company’s production capacity and quality have been improved, and the company’s gross profit margin has remained stable and relatively good, mainly due to the company’s As a small-scale private enterprise, we have chosen a thyristor power semiconductor product series that is suitable for the sustainable development of the company. We have been focusing on the development of the power semiconductor industry. We focused on chip design and manufacturing in the early stage, and we have better control over its core components and passed it. IDM's integrated business model has the ability to replace imported sustainability. At the same time, the company's products have advantages in application areas, pricing and cost control. Currently, the company's series of products have irreplaceable characteristics in many application areas, and profitability in the coming years is in place. Sustainability.
Jie Jie Microelectronics: The company's downstream applications and customers
Investors: In the past few years, the company's product structure and product end have been enriched, as well as production line production of protective devices, and so on. The downstream areas involved are relatively large. Customers are relatively decentralized and stable, avoiding a high degree of dependence on a single customer. The company's products are mainly used : Household appliances, electrical leakage circuit breakers and other civil applications; reactive power compensation devices, power modules and other industrial areas; communications networks, IT products, automotive electronics and other lightning and anti-static protection areas. According to the application of products, are roughly divided into These categories are: white goods, small appliances, leakage protection, power electronics modules, lighting, security, communications, electricity meters, automotive electronics, power tools and motorcycles.
Jie Jie Microelectronics: The company's chip production capacity this year?
Investors: The company gradually released the production capacity of its investment projects and continued upgrading of equipment and technology. This year's chip production capacity utilization is expected to reach 1.6 million, and the chip's self-use closure testing will approach 60%.
Jie Jie Microelectronics: The company currently has several production lines of chips?
Investors: The company currently has three production lines for its chips, namely, Jie Jie Micro-Electric Triode chip production line and Jie Jie Semiconductors triode chip, and a diode chip production line.