'Going to the sea', Ziguang Guowei, etc. promoted China's core financial IC card to enter overseas

1. The Bittern Continental Sept. Hong Kong Stock Exchange was listed before the end of the trading day, Jinan Minzhi stepped one step faster. 2. Jin Bangda teamed up with Ziguang Guowei and Huada to push the China IC Finance IC Card to expand overseas. 3. Qinhuangdao: Domestically produced cold chips came out Guomen 4. Jishi Zhitong undertakes marketization of domestically produced chips Shen Wei, cuts into the military industry, government industry

1. The Bittern Continental Sept. Hong Kong Stock Exchange is listed before the end of the trading day.

According to the latest report by the media, Bitland is in the pre-IPO round of financing with a valuation of US$12 billion with well-known funds such as Sequoia. The financing scale is US$400 million and will be delivered within this month. As a mining machine production The global giant of the business, BitContinent, will be handed over to the Hong Kong Stock Exchange in September this year, and will be officially listed before the end of the year. It is estimated that the market value can reach 300 to 40 billion US dollars.

Earlier, according to Bloomberg, Bitland CEO Wu Jihan is brewing IPO. Although there is no concrete plan, he expressed willingness to let Bitland be listed in Hong Kong, or issue US dollar-denominated stocks in overseas markets, because this will give Early investors including Sequoia Capital and IDG Capital provide liquidity opportunities.

By comparison, the two pieces of information are highly consistent. This round of pre-IPO rounds of valuation of US$12 billion is only 8 times the net profit of US$1.5 billion for Bitland in 2017. It is a value-added market, only to Sequoia Capital. The internal old shareholders are open.

According to statistics, Bitland’s revenue in 2017 was US$2.5 billion, which was more than 8 times of 2016 revenue; 2017 net profit was 15 times of 2016 net profit; the data in the first quarter of 2018 was close to the full year data of 2017 .

Bitland produces and processes various chips for cryptocurrency mining, including Bitcoin, Ethereum, Monroe, etc. Bitcoin CEO Wu Jinhan said in an interview that the field of artificial intelligence requires a lot of calculations. This is a natural choice. Wu Jihan also predicts that AI chips can account for 40% of Bitland’s revenue in five years. They just try to do something that they cannot control well.

In addition, Canaan, the second-ranked maker of bitcoin mining machines, has officially submitted a listing application to the Hong Kong Stock Exchange, or raised about one billion US dollars. This may be another incentive for Bitland to announce the IPO. .

Not long ago, China’s second-largest Bitcoin mining chip maker, Jinan Minzhi, submitted a prospectus to the Hong Kong Stock Exchange. The prospectus shows that the company’s profit in 2017 was 361 million yuan, which was more than 230 times higher than it was two years ago. In terms of earning capacity, the adjusted net profit rate has skyrocketed from 3.2% to 36% within two years. If the company is successfully listed, Jianan Minzhi will become the first blockchain company listed on the Hong Kong Stock Exchange.

Established in 2013 with a registered capital of RMB 100,000, Jinan Minzhi has specialized in the design and sale of high-performance integrated circuit boards. It is also a producer of the Avalon series of bitcoin mining machines. Since 2015, Jinan Minzhi Started the research and development of artificial intelligence chips. After nearly two years of hard work, in 2017, Jinan Minzhi pre-released the world's first artificial intelligence edge computing chip KPU.

The Nannan founder, Nan Zhang, was known as 'Pumpkin Zhang' in the money circle. In 2011, he designed the Avalon bitcoin mining machine to be the world’s first professional Bitcoin mining machine, ending the era of computer mining. However, Kennan Minzhi was relocated by Bit Continent and became the world’s second largest bitcoin mining company after BitContinent. According to the disclosure of Ka Na’s prospectus, the company’s total miner’s computing power accounted for the market in 2017. On the other hand, 19.5% of the combined power of all bitcoin mining products is on the order of 60%.

Like Bittown China, Kennan Minzhi's miner ASIC chips are designed for their own use. Its hot miner's sales also bring high income to the semiconductor industry chain. For the past three years, TSMC has obtained a total of the battalions from Kenan Minzhi. The revenue reached 380 million yuan, accounting for 60% of the total cost of the Jinan Yongzhi chip foundry for the past three years. It is reported that the two companies have not signed a long-term contract, but purchased a form of purchase order and paid a prepaid amount.

In addition to the Bitcoin ASIC chip, Kennan Minzhi is also developing another digital cryptocurrency ASIC chip, which is expected to be mass-produced in the fourth quarter of 2018 and is now pre-sold with RMB 52,600,000. In addition, artificial intelligence ASIC chips are said to be available. Also in research and development, plans to put into production in the fourth quarter of this year, mainly for smart homes, smart cities, smart monitoring, voice and image recognition in smart toys, and a variety of Internet of Things applications.

It is worth mentioning that this is the third time that Kennan Yuchi applied for an IPO. The previous two attempts have not been successful.

2. Jin Bangda teamed up with China Unicom Microelectronics and China University of Technology to promote China's IC finance IC card to enter overseas

At the 2018 Global Service Outsourcing Conference held on June 9, Golden State held signing ceremonies with China's two largest chip manufacturing giants, Ziguang Guowei and Huada Electronics.

In the future, the parties will use the Golden Harvest Borg Financial Technology Center in Zhuhai as a platform to seize the development of the “Belt and Road” initiative and the development opportunities of the Guangdong, Hong Kong and Macau Bay Area, integrate industrial innovation resources, and promote innovation in financial science and technology. In areas such as the Internet of Things, we have expanded extensive cooperation, actively expanded global financial outsourcing service programs, and established internationally competitive innovation technology exchanges and financial technology industry docking platforms.

According to reports, Goldpac is the world's leading provider of financial intelligence service solutions, ranking first in China in the payment solutions industry and fourth in the world. The company's business spans 25 countries and regions in the world, and has reached more than 1,000 home and abroad companies. Medium-sized financial institutions provide secure payment products and services. Earlier this year, Jinbangda independently developed financial IC card products based on Chinese-made chips and loaded state secret algorithm. They officially passed the EMV (namely, the three major bank card organizations VISA, MasterCard and Europay). The establishment of a unified technical standard) organization certification, marking the company's domestic chip-based financial IC card products have full strength to enter the overseas market.

At present, China's IC industry is rapidly catching up with international advanced level. Independent innovation and deep integration of the industry chain are important directions for the development of the industry. As a well-known supplier of smart cards and IoT security chips and application solutions in China, Huada Electronics insists that Science and technology innovation is the core driver, and we will vigorously develop our own core technology. This time, we will work together with Jin Bangda. Both parties will rely on their respective strengths to continuously deepen cooperation areas, promote the deep integration of the industry chain, and contribute to the leap-forward development of China's integrated circuit industry.

At the same time, Jin Bangda will join hands with Ziguang Guo Micro-Strong Co., Ltd. and both parties will further deepen cooperation, increase innovation technology, innovate product development and promotion, and promote the development opportunities in Guangdong, Hong Kong, and Macao Bay Area, and actively participate in the 'Belt and Road' initiative. The construction will help China's financial outsourcing service industry to accelerate to the high-end of the global value chain, and further promote the application of 'China Core' around the world. Zhuhai Special Zone Report

3. Qinhuangdao: Domestic cooling chips go abroad

Recently, the Qinhuangdao Economic and Technological Development Zone Qinhuangdao Fulian Electronics Co., Ltd., workers are stepping up production. Qinhuangdao Fulian Jing Electronics Co., Ltd. and Huawei, Hitachi, BYD and other companies to carry out in-depth cooperation, specializing in the production of semiconductor cooling devices and refrigeration Movement, products are mainly used in the field of precision control of communications, automobiles, medical care, etc., exported to Japan, South Korea and other countries and regions.

4. Zitsmart to undertake the marketization of domestically produced chips Shen Wei, cut into the military industry, government industry

Domestic demand for blowouts, Jissen Zhitong began to undertake the marketing and promotion of Shenwei processor in 2016.

With the increasing emphasis on information security in the country, localization demands blowouts, especially in the chip industry where equipment core components are. Under such a background, in the context of this background, Jisitong started to undertake the market-oriented production and promotion of Shenwei processors in 2016. Work, and give priority to the choice of military workers, the party and government agencies cut into the market, has achieved initial results.

Chips are the core components of informatization equipment and have been referred to as the 'nervous hub' of information equipment. The performance and quality of military chips play a key role in the combat capabilities of information technology equipment. However, in the past, the military chip market has been used abroad. Chip manufacturers occupy, the annual import is expected to be more than 30 billion.

However, with the outbreak of the Snowden incident in 2013, domestic demand became the main driving force for the development of domestic chips at the current stage. Military chips are gradually replacing domestic production. The national regulations govern the localization of military products in terms of quantity, type, and price. Must reach 95% or more.

The Orient Securities Research Report shows that a rough estimate of China's military chip replacement space is more than 20 billion yuan per year, so domestic chip makers will also usher in a huge opportunity.

At present, there are three types of self-developed CPUs that are recognized domestically, namely, Godson, Feiteng, and Shenwei. Among them, Shenwei is developed and designed by the Shanghai IC Center (hereinafter referred to as the 'Center'), and the only one that is fully self-developed in China. The chip, has always been used in large supercomputers - the supercomputer of the Shenwei Taihu Light.

The advancement of military-civilian integration strategy has enabled Shen Wei processor to get out of the institute and usher in market opportunities.

Founded in 2003, Jieshi Zhitong (430330.OC) is mainly engaged in the R&D, production and sales of embedded computer software and hardware. As one of the earliest companies to cooperate with the center, the company established Chengdu Shenwei Technology in 2016. Co., Ltd., to undertake the market production and promotion of Shenwei processor.

At present, the company has a total of five Shen Wei processor products, namely SW411, SW421, 421M, 221 and SW1621.

Among them, the first generation of SW411 has achieved mass production, SW421 is expected to achieve mass production this year, and SW421, 421M, and 221 also achieved the first R&D stream last year. Through participating in the chip design process, and undertaking follow-up tapes, Packaging, production work.

Compared to other domestic chip manufacturers such as Godson, the advantages of Zitsmart are four points:

First, Shenwei has always been used in large-scale supercomputers, and its usage is much higher than the two, and it is more reliable.

Second, relying on the Shenwei Institute, it does not need to spend a lot of money on research and development.

Third, the original business of the company is still in a profitable state, which can support the capital requirements for Shenwei CPU marketing.

Fourth, the original customers themselves also have localization needs.

However, despite the support of national policies, the process of achieving localization alternatives may be extremely lengthy. The reason is that the domestic application software ecosystem still needs to be cultivated and domestic CPUs lack specific application scenarios, and the products still need to be polished. According to Zhou Xutao, general manager of Zizei ZTO Revealed that in terms of profitability, the company hopes to achieve a three-year average, five-year profit.

It is worth mentioning that, after the ZTE incident, the state further increased its support for domestic CPUs. In the procurement catalogue promulgated by the central government's central mining and collection center not long ago, Shen Wei and other three domestic CPU manufacturers were very impressive.

In the future promotion of Shenwei processor, Zitsmart will continue to advance from three directions:

First, create standardized products, complete the integration of application software ecological chain, and prepare for localization alternatives.

Second, strive to enter the country more procurement catalog.

Third, establish a stronger technical team, provide after-sales service, and enhance customer experience.

Recently, Huasheng Capital & Reading New Third Board investigated Zitsmart, and Mr. Zhou Xutao, General Manager of the company introduced the company's current situation and future development plans in detail.

/ 01 /

Master Shen Wei's technology intellectual property, customers are concentrated in the military industry, government

1. How does the company take over the market-oriented production and promotion of Shenwei chips?

Zhou Xutao: Before the Shenwei processor was only used by the military. With the military-civilian integration strategy, Shen Wei needs to be promoted to civilian use.

There are three main reasons why we chose us:

First, we entered the localization field relatively early, and it was the earliest cooperation with Godson, mainly doing embedded motherboards.

Second, when Shen Wei was just opened in 2013, we were one of the earliest companies to do their products.

Thirdly, most of our clients are military research institutes, party and government agencies, which fit the current localization market.

2. What are the differences between CPUs used by civilian CPUs and Sunway Supercomputers?

Zhou Xutao: The CPU used by Shenwei Taihu's light supercomputer is supercomputer-dedicated, and the CPU sold by the company is mainly used in desktop systems, embedded computer systems, and other common CPUs.

In terms of volume, the CPU used by the supercomputer is much larger than our normal CPU. Its CPU has 260 cores. We divide the 260 cores into several groups and take only a small part of the group. Some improvements are followed by ordinary CPU.

From a design perspective, there are two requirements for the CPU used by the supercomputer. The first is the computational performance. The supercalculator has very high performance requirements for the calculation; the second, reliability, it does not require the richness of the external interfaces. And we The general CPU pursues comprehensiveness, not only computing, but also communication and interface enrichment requirements. It does not need to be particularly prominent in which aspects, but it is an integrated capability balance.

3. What are our main tasks in the process of Shenwei's market-oriented production and promotion?

Zhou Xutao: First of all, we will participate in the entire design process of the CPU, because the center was designed in a closed system before the CPU, and there is a big difference with the popular CPU, we will provide design recommendations and requirements based on market demand.

Second, since the entire ecosystem has not yet been established, we have also undertaken the production of complete machines including the main board. However, our ultimate goal is to only sell CPUs.

In terms of promotion, we mainly proceed from three aspects:

First, the production of products and the promotion of the market. Production is carried out in an outsourced manner. At this stage, our work is mainly in the market.

Second, integrate the ecological chain of the corresponding software. Compared to the relatively simple software ecosystem of the military industry system, the desktop software ecosystem is very complex. We need to provide technical support, go one software adaptation, and integrate the ecological chain.

Third, after-sale technical support. For the products sold, we need to provide follow-up technical support, including helping customers migrate application software, etc. 4. Can you introduce the current company's Shenwei processor situation?

Zhou Xutao: The company's Shen Wei processor products are SW411, SW421/421M/221 and SW1621 models.

SW411 is the first generation product, 40nm process; SW421 is the second generation product, 28nm process. The difference between the two is mainly in performance. Compared to SW411, SW421's overall power consumption decreased, performance improved.

In the second generation of products, we also enriched the product line - SW421/421M/221. The difference between the three mainly reflected in the target, such as 421 is the number of 4 nuclear; the intermediate product 421M interface less, The chip is relatively small; while the 221 has lower power consumption than other products, it has two cores, and its performance is relatively low.

5. Do these product companies have independent intellectual property rights?

Zhou Xutao: At present, we have some intellectual property rights of SW421/421M/221 products, because we are involved in the packaging design process, and subsequent tapeout, packaging, and production are all done by us.

As for SW411 and SW1621, we only have sales rights. At present, the company is also actively communicating with the computer, and strives to obtain the IP authorization of the Shenwei processor as soon as possible, becoming a real production processor manufacturer.

6. Are you talking about these processors have been mass production?

Zhou Xutao: SW411 can already achieve mass production. Others have not yet. Last year we realized the production flow of SW411. Customers need it. We can achieve mass production this year. The SW421/421M/221 also achieved the first R&D stream last year.

7. How long is the cycle from tapeout to mass production?

Zhou Xutao: In the very smooth case, it was basically about six months. However, once there are very few successful tapeouts, they all need to be carried out several times to continuously improve.

8. What are the main areas where Shenwei processor customers are concentrated?

Zhou Xutao: Mainly facing military industrial enterprises, party and government agencies. There are two reasons for selecting these industries: First, the software ecosystem of the processors required by government and military enterprises is relatively simple, and it is easier to meet the demand. Second, the state gives clear Policy support.

9. At present, the state is in the military industry. How much is the policy support in the government field?

Zhou Xutao: Great. In the field of military industry, the country now has regulations that the localization rate of military products must reach more than 95%. The first one is that the number of chips exceeds 95% of the localization rate; the second one is the type of chips. To exceed the localization rate of 95%; Third, the chip's price should exceed the localization rate of 95%. The localization rate requirements include new and old equipment, and some key products are currently being modified.

On the government side, after the ZTE incident, the names of the three domestic CPU manufacturers, including us, have appeared in the procurement catalogue promulgated by the central government procurement center. But in the long term, the process of localization is long.

10. What are our main sales methods?

Zhou Xutao: First, the country has big demand, government procurement; Second, in the context of localization, we go for the project.

In terms of quantity, it should be more from government procurement; from the perspective of efficiency, it should come from various projects. In simple terms, the number of government procurement may be much greater than the number of purchases of the project, but it is still profitable for the company. More projects.

11. What is the current staff size of Shenwei in Chengdu?

Zhou Xutao: There are about 50 people in Chengdu Shenwei. Most of them are R&D personnel and only three market personnel.

/ 02 / Relying on the Center, Integrating the Ecological Chain, Ginzogen expects to achieve profit in five years 12. What is the reason for the difficulty in promoting domestic CPUs?

Zhou Xutao: The reason why domestic CPUs are difficult to promote, I think there are two:

First, the ecological environment of domestic application software is not ideal. The upper layer of the processor is the support of application software. However, the domestic software ecosystem has always been poor, resulting in us without the corresponding software, so we need to transplant customers need to use Application software, this is a very difficult process.

Followed by the design. Supercomputer and ordinary CPU in the design concept is different, which requires us to improve the design of the CPU in combination with the market. Moreover, domestic tolerance for domestic CPU is too poor. I think we should give us a trial and error Opportunities cannot be accomplished overnight. All need progress from generation to generation.

13. Apart from Shen Wei, which of the domestic independent research and development CPUs are there?

Zhou Xutao: At present, there are three domestically recognized companies, namely, Godson, Feiteng, and Shenwei. Strictly speaking, only Shenwei's framework is completely independent and complete by our country. The Godson framework is a permanent license for the purchased MIPS architecture; Completely autonomous, using the Sparc architecture, but later switched to the arm architecture. This is a big advantage for us.

However, with the 2013 Snowden incident and the Zhongxing incident of this year, in addition to our three companies, there are more than a dozen companies that have domestic CPUs on the market. On the one hand, it shows that the localization is really going to advance completely. There is a market demand, otherwise no one will be flushed out; on the other hand, for a truly localized manufacturer, this will be a long and arduous process, and finally it will be the Ebb Tide, leaving the real winner.

14. Are there any differences between the three products?

Zhou Xutao: I don't think the three domestic products will be much different. The main difference is for foreign CPUs.

At present, the gap between domestic production CPU and foreign CPU is still quite large, mainly reflected in large-scale images, video processing, games, but the daily office needs have been able to meet. At the same time, I do not think that our domestic CPU design capability is poor , The main reason is that it does not meet the requirements in basic manufacturing.

15. What are the advantages of the company compared to other competitors?

Zhou Xutao: First, it is the usage of Shenwei CPU. Compared to Godson on the market, Shen Tang, Shen Wei has been used in large-scale supercomputers, and the amount is much higher than both. The higher the usage, the better the problem can be discovered. Improve it, so relative reliability will be better.

Second, the chip's R & D has strong support.

Third, the original business of the company is still in a profitable state, and it can fully support the capital requirements for Shenwei’s CPU market promotion. At the same time, the company combines the existing businesses to establish an ecosystem of “chip-hardware-hardware-machine-service”. A better CPU application scenario will help Shenwei CPU market promotion.

Fourth, the sales channels are abundant. The original customer resources of the company itself also have localized demand. Many customers are directly finding us, asking us to upgrade them to Shenwei's products.

16. What is the company's future plan for the Shenwei processor?

Zhou Xutao: The specific planning starts with three aspects. First, the integration of the application software ecological chain is completed, and standardized products are made. We spent about a year to get through the various ecological chains. We have achieved initial results. In terms of speaking, we can't just have a single machine solution. We also need a complete software system to prepare for replacement of the government office.

Second, we strive to enter the country's more purchasing catalog. We are in the front section.

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