Gathering micro-messages (Wen/Li Meng) Although the ZTE incident tends to reconcile, ZTE has paid a fierce price for the basic 'three-year profit to pay the fine'. The core technology is controlled by people, and the equivalent of 'foundation' is withdrawn. The bright high-rise buildings will collapse and collapse. In contrast to the auto industry, it can be said that the 'foundation-core technology' is even more people's breath, while the domestic auto brands have suddenly emerged, and new energy vehicles and unmanned vehicles have caused the entire industry chain to reshape. , Is it possible for the local automotive electronics industry to seek a new breakthrough?
Why foreign auto parts giants control?
Due to the high technical threshold of the automotive electronics industry, the long certification cycle for entering the vehicle factory makes the industry barriers rise. Throughout the history of automotive electronics manufacturers, Tier1 industry has a high degree of concentration, in foreign investment, joint ventures, and local companies. In the category, foreign-funded enterprises are absolute 'protagonists'.
According to the 2017 Global Automotive Parts Suppliers Top 100 list given by "American Automotive News", the top ten automotive electronics suppliers occupy 70% of the market share, and the sum of the income scales of Bosch and Denso has occupied the market. More than half of the total. From the perspective of the automotive business, the international component giant's products cover power, safety, body electronics, infotainment systems and driver assistance systems, and occupy a dominant position in the automotive electronics field.
These giants monopolized the Chinese market for a long time. Everbright Securities believes that it is mainly due to the following reasons:
The first is that these giants have experienced a long period of technological accumulation. After a long period of R&D investment, they have established a technological advantage and continuously innovated to lead the direction of development in related technologies. As a result, most of the core patent technologies are in their hands and have established a high level. Technical barriers. Secondly, automotive electronics products are often required to be used in harsh environments. They are more demanding than consumer electronics in terms of resistance to temperature changes, reliability, anti-static, etc. Product stability is critical, so the vehicle Manufacturers are relatively conservative in their choice of long-term suppliers, and they rarely try to replace them. Furthermore, upstream manufacturers of electronic components and downstream vehicle manufacturers are mostly foreign companies, paving the way for foreign companies to pass customs. Third, automotive electronics products. Need to pass strict certification, including ISO9001, ISO14001, TS16949 and other conventional certification, and AEC, CE and other automotive association certification, access to automotive association standard certification time is generally 2-3 years.
New opportunities for local manufacturers
Although the reality looks a little 'sad,' but in the past it does not represent the future. After years of accumulation, the local automotive electronics manufacturers have met with changes in policy and market demand, welcoming the best time in history.
At the policy level, on the one hand, the national strategic development plan further boosts the development of the automotive electronics industry. In April 2017, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology jointly issued the “Long-Term Development Plan for the Automotive Industry”, stating Quantitative, advanced automotive electronics, autopilot systems, core chips and on-board operating systems and other key core technologies, increased basics, and effective supply of common technologies,” once again emphasized the development of automotive electronics in areas such as advanced automotive electronics, autopilot and core chips. Importance. On the other hand, the national policy of energy conservation and emission reduction to promote the development of new energy vehicles, and the continuous promotion of vehicle manufacturers to increase the research, development and sales of new energy vehicles will be beneficial to the domestic enterprises to replace them with localization.
At the vehicle level, the continuous growth of domestic passenger car brands provides major development opportunities for local automotive electronics. After a long period of accumulation, domestic passenger car brands have gradually demonstrated their competitive strengths. The acceptance of automotive electronics manufacturers is higher than that of foreign vehicle brands. At the same time, the Internet construction industry is in full swing. Weilai, Xiaopeng, Singularity and other companies have strong capital endorsements and are also expected to open up new opportunities for local companies to test water. The advantage lies in the higher cost-effectiveness and quality of service. It is expected to gradually move from the back-load to the front-loading market in the future, from the secondary and tertiary suppliers to the first-tier suppliers.
In terms of trends, autos will rush to the direction of safety, interconnection, intelligence and energy saving, advanced auto driving assistance systems (ADAS), driverless vehicles, V2X and other new products and new features, AI chips, millimeter waves Rapid development of radar, laser radar, new MEMS and other technologies, numerous enterprise card positions, and the trend of intelligent network integration, the influx of new players has brought capital, technology, market competition, will also reshape the industry chain .
For example, the United Kingdom expects that the global auto-pilot market will reach 907 billion pounds (1.2 trillion US dollars) by 2035, and auto-piloting is spawning a new form of automotive supply chain. For the Cambrian, Bit Continental, and Horizon Robotics are currently hot For AI chip manufacturers, autopilot has become one of the most important areas for many manufacturers.
Undoubtedly, the next 3-5 years will be the time for local automotive electronics manufacturers to take up a place, and will also usher in the peak period of capital expenditure.
Domestic substitution and overseas acquisitions As the automobile competition becomes more and more intense, the intelligentization of automotive electronics has become the development focus of the global automotive industry and the emerging growth point of the industrial strategy. For domestic automotive electronics manufacturers, it is the only way to achieve domestic substitution through independent research and development.
We must understand that if we do not master the core technology, the development is not sustainable. In recent years, many companies in the field of body electronics, safety and even power have been deeply involved. Joint electronics, Hangsheng, Desai Xiwei and other companies have gone through. From the post-load to the pre-installed 'gateway', not long ago Ningde era beat Samsung, Matsushita and other strong rivals among the power battery suppliers of the Volkswagen Group's MEB electric vehicle project platform, Haojie Electronics launched a domestically developed and already mass-produced domestic The first car gauge tire pressure sensor monitoring chip SNP70X, etc., all heralded the local manufacturers 'playing around'. The new and old players in the emerging driver market are rushing in and believe that the AI chip's unicorn They will also set off multiple sprays in this market.
And achieving technology leapfrogging through overseas mergers and acquisitions is another way, especially companies that can use mergers and acquisitions to cut into supplier systems. Everbright Securities believes that the automotive electronics market has high profit margins, but it requires long-term certification by the entire vehicle manufacturer, and the supply chain system is relatively closed. It is still a long time for domestic companies to enter their supply chain through endogenous development. Therefore, domestic automotive electronics companies can achieve technology leapfrogging through overseas acquisitions and enter into the global supply chain system of large vehicle manufacturers to achieve a fundamental change in the supply level. In order to increase the future profitability. Although domestic overseas mergers and acquisitions have aroused alarm from abroad, the power of capital should remain strong.
In this process, the ecological power of upstream and downstream forces can not be ignored. Li Wei, general manager of automotive electronics, Baolong Automotive Technology Co., Ltd. believes that there are many parts and components manufacturers in the country that are taking advantage of the intelligence and new energy of the automotive industry. This provides opportunities for domestic auto chip makers to test water, and it is only up-and-down cooperation that can promote the continuous development of the entire automotive industry chain.