'In production' ZTE event spreads to the capacitor resistance market, resumption of production has increased out of stock

1. 'Zhongxing event' spreads the capacitor resistance market, resumption of production has aggravated the shortage process. 2. Jingjiawei's next graphics processing chip is being streamed 3. Breaking foreign monopoly! The country's first quartz crystal resonator intelligent production line is put into production 4 Exports of integrated circuits increased by 40%! Sichuan's foreign trade imports and exports increased by 24.9%. 5.2018 January-May of Guangdong Province integrated circuit production analysis: cumulative year-on-year growth of 14.6% 6. Intel's former chief engineer returned to start a business from the company to the production chip only used 1 year

1. 'Zhongxing incident' spreads the capacitor resistance market, and the resumption of production has aggravated the shortage process.

The micro-network news (text / Jiufang Fang) Sino-US trade war has intensified, and the war of words has risen to a real live ammunition. According to the '301 article of China's import goods taxation list' issued by the US Trade Representative Office (USTR) on July 6, For remote control, vending machine printed circuit components will face an import tariff of 25%, and many parts used on the board, such as resistors and capacitors, will also face tariffs.

Figure 1. Sino-US trade 'salt warfare' upgraded to 'real guns'

Sino-US trade war opened, capacitor resistance has not been affected?

In the first time of the above news, the micro-network reporters connected the Chinese representative of passive components in China, Fenghua Hi-Tech and Yuyang Technology. Fenghua Hi-Tech Board of Secretaries responded: 'Because the company's direct exports to the US are very limited. The main customers are all in China. The Sino-US trade war has little impact on the company's business. In addition, the current passive components are seriously out of stock, and the domestic market is self-sufficient. Therefore, regardless of whether the United States imports capacitors imported from China. Tariffs have little impact on us.'

Yuyang Technology also expressed similar views. Most of the company's business is aimed at domestic manufacturers. The business is concentrated in smart phones, Netcom, IoT and other applications. The direct export to the US has very little share, although there are some US customers, but its The factory may be built in Brazil, Mexico and other places, not in the United States, so the trade war has not directly affected the company's product exports.

However, some analysts pointed out that this incident may have a slight impact on the PCB board customers downstream of Yuyang and Fenghua Hi-Tech. Because in the 'US 301 Survey' list, some printed circuit boards will be directly exported to the United States, such as for remote control. The printed circuit components of the vending machine are listed among them. The passive components of Yuyang and Fenghua Hi-Tech may be used on these boards. Yuyang said that there is no feedback from the PCB board customers.

Figure 2, printed circuit components for the remote control are listed in the '301 list'

According to previous reports from Jiwei.com, small household electrical appliances based on 'kitchen and health appliances' may be affected by the Sino-US trade war. However, the proportion of domestic small household appliances exported to the United States is only about 13%. In the previous reports, Feike Electric, Aucma, TCL, Midea, Gree, Little Swan and Haier all said that the company’s exports to the US accounted for less than 6% of its revenue, and its impact on itself would not be This shows that the impact of this customer on Fenghua Hi-Tech, which is mainly concentrated in the domestic appliance industry, is also within the controllable range.

The industry believes that even if a large number of domestic capacitors and resistance products are used in home appliances exported to the United States, they will not directly pose a threat to the original factory. More tariff pressure will directly force home appliance manufacturers, plus capacitors, positive resistance. During the critical period of shortage, the bargaining power of home appliance manufacturers to suppliers has been greatly weakened.

On the whole, the Sino-US trade war will not affect the capacitor resistance, the original factory, home appliance manufacturers may be affected, but also because of the small proportion of business exports to the United States and little impact.

Figure 3, vending machine printed circuit components listed in the '301 list'

The passive factory is obviously affected by the 'Zhongxing incident'

An undeniable fact is that the export tariff policy is a double-edged sword. A good tax policy is indeed more conducive to export business. Yu Yang told the micro-grid reporter that the Indian government had previously offered preferential treatment to boost the development of the local electronics industry. The tax policy encourages foreign investors to set up factories in India. Apple, Samsung, and Xiaomi have successively invested and built factories in India, which are affected by India's tariff policy. 'Hua Mi OV' is an important customer of domestic component manufacturers such as Yuyang. India's tariff preferential policies, indirectly, let component manufacturers benefit a lot from the Indian export business.

Yu Yang told reporters that in this long-running trade tug of war, although it did not directly hit the export of products, the United States banned the core chips and parts from ZTE, but they gave them a big blow. According to reports, they were banned. Before the sale, ZTE's monthly production reached 4 KK. Many component suppliers came from the mainland. In the more than three months of the ban, upstream suppliers had to suspend ZTE's business.

However, as the United States officially lifted the ban on ZTE, ZTE resumed production on July 15, and Yuyang will officially resume its supply of products to ZTE. According to the reporter, due to the suspension of production of ZTE for more than three months, many orders were owed and production resumed. In the first month after that, its mobile phone production may be higher than the previous 4KK monthly output, while the output in the next two months will be around 3KK, and will gradually return to normal level.

At present, the supply of passive components is tight, will Yuyang still give priority to ZTE? Yuyang said that because the company and ZTE have a longer cooperation, they will support ZTE after their production resumes. However, due to current production capacity constraints The delivery period can not be the same as before, the details will be resolved with ZTE. In addition, it is understood that before the suspension of production, all kinds of raw materials will remain in stock, and will not rely on new supply after the production is resumed.

The reporter learned in the interview that ZTE's supplier strategy for capacitors and resistors is also 'full bloom', Japanese, Korean, Taiwanese and Continental are involved. Therefore, this time, ZTE needs to negotiate with the parties. It is foreseeable that ZTE will gradually resume production order, but the tolerance will still be affected by the shortage of delivery.

In contrast to the shortage of capacitor products, the resistance products have reached the critical stage of shortage. The component traders from Huaqiang North operating resistors told the micro-grid reporter that compared with the previous two months, the current resistance market supply has produced a larger Changes, product supply gaps have spread from general-type resistors to high-precision resistors, and lead times have become longer. In terms of market demand, large terminal demand is still very tight, and the demand for Huaqiangbei trade market has not been hot before. 6. July is a low season. Before the peak season of 'Student Summer School' and '11 Golden Week', first-tier and second-tier manufacturers are stepping up their stocking.

According to the reporter's understanding, since the end of last year, Guoju announced that it stopped the order after the order demand is much larger than the production capacity. The resistor opened the prelude to the price increase. Wang Quan increased the price of some chip resistors by 15% in January; Interpretation will increase the price of some thick film resistors by 25%; May Wangquan once again announced that the unit price of thick film series will increase by 50% from June 1st. Driven by the price increase of Taiwanese manufacturers, April 13, the mainland Fenghua Hi-Tech raised the price of chip resistors by 25% to 30%. On June 22, Fenghua Hi-Tech revealed on the investor interaction platform that the company's chip resistance and film capacity were fully loaded.

Figure 4. The output printed circuit board is on the sanctions list, and the capacitor resistance is indirectly limited.

Talking about the impact of the Sino-US trade war on passive components, the trader stressed: 'We have been paying close attention to the Sino-US trade war, which has affected many industries and may push a new round for resistance. The price increase, after all, the renminbi is falling, many overseas customers are purchasing the original factory in US dollars.

As a capacitor supplier, Yuyang Technology expressed concern about the shortage of capacitors. He told reporters that the current trade war has little impact on the company's export business. Capacitance out of stock is still an important challenge for the company. Next, the company will still Focus on how to deal with out-of-stocks and price increases, such as by adjusting the internal structure of the company and improving production efficiency.

'Resize' to improve efficiency

Before the US tariff sanctions, capacitors and resistors have already caught up in the price surge. According to the comprehensive interviewer, there are five reasons for the shortage: First, upstream raw materials such as ceramic materials, processing materials, packaging materials, etc. Second, the demand for capacitors and resistors increased by single intelligent terminals; Third, Japanese manufacturers gradually withdrew from the large-scale 'old product group' in 0805, 0603; Fourth, new energy vehicles, IOT, AR/VR, smart speakers The demand for passive components in emerging application markets such as mining machines is driving, especially the hot and high price of the mining machine market, which has pushed the price of capacitors and resistors more than 10 times. Finally, the channel dealers deliberately deliberately Raise the price.

Figure 5, MLCC stepped into the shortage period

There are many reasons for the shortage of passive components, and the 'butterfly effect' caused by it is difficult to solve in a short time. 'This wave of price surge may continue throughout 2018, and the manufacturer's expansion plan is limited. 'Yuyang Technology revealed to reporters In view of the shortage of goods ten years ago, the expansion of production of enterprises has led to a serious overcapacity. In 2017-2018, this wave of out-of-stock manufacturers is relatively conservative in terms of expansion plans, and the expansion is only about 10-15%. 4. In the short term, the capacity supply of capacitors and resistors is still difficult to alleviate.

Then, how do manufacturers deal with the current emergency shortage? Yuyang Technology said that in order to alleviate the current shortage of goods, we must start from two aspects, one is to invest in expansion; the second is to adjust the production structure and improve production efficiency.

Murata has placed more emphasis on medium- and long-term strategic planning and target development. Not long ago, Murata revealed that it will use the means of increasing investment, expanding production capacity, and improving production efficiency to maximize supply capacity. It is understood that Murata It plans to increase investment by 340 billion yen in FY 2018 (April 2019-2019), of which 29 billion yen will be used to build a new MLCC plant (expected to start in September 2018, completed in December 2019) ), the annual production of MLCC is expected to increase by 10%.

At present, Yuyang is also actively expanding its new plant. After the completion of the new plant, the capacity of the new plant is expected to be twice that of the current old plant. However, as we all know, the increase in production capacity is not immediate, and the delivery of Japanese production equipment is 18-24 months. It takes time to build and put into production. Therefore, 'adjusting internal structure and increasing productivity' has become a top priority.

Yuyang told the micro-grid reporter that the industry generally believes that 'large size (0402) and small size (0201 or 01005)' will be an effective measure to improve productivity. In theory, 0402 will change the monthly output of 0201 after 0201 to 0402. It is several times, but the challenge of 'big' change to 'small' is that the small-size single-layer ceramics are required to be thinner, the key process technology is more difficult, and the subsequent testing and tape-making processes still require a large amount of equipment to be purchased. Therefore, this Adjustment is also a challenge for many companies. (Proofreading / 叨叨)

2. Jingjiawei's next graphics processing chip is being streamed

Set micro-network news (text / Lee), July 19, Jing Jiawei said on the interactive platform, the company's next graphics processing chip will meet the needs of high-end embedded applications and information security computer desktop applications. The graphics processing chip is being streamed, and progress is going well.

It is reported that Jingjiawei has been focusing on the R&D, production and sales of high-reliability military electronic products since its establishment in 2006. The main products are graphic display and control, core modules and system-level products in the field of small dedicated radar. The company as the only GPU chip of A shares. Design company, strong research and development strength, backed by the National Defense Science and Technology University, and actively cooperate with domestic and foreign algorithm companies to develop new technology. Master the core technology, with the ability to develop the underlying program, product research and development goals are clear and firm, is expected to meet the GPU application wave, cut into the civilian field , enjoy the broad market space. The first graphics processing chip JM5400 with independent intellectual property rights began to apply. (Proofreading / Lee)

3. Breaking foreign monopoly! The country's first quartz crystal resonator intelligent production line put into production

On July 17, in the Naxi Science and Technology Park of Zhangzhou National High-tech Zone, Sichuan Mingdeheng Electronic Technology Co., Ltd. is preparing for the first batch of mass production of resonators. It will be shipped to Sharp, Panasonic and Xiaomi and other famous enterprises during the year.

Just a few days ago, the company's quartz crystal resonator intelligent production line was announced to be put into production, marking a zero breakthrough in the intelligent production line of China's piezoelectric crystal industry, which means that China will break the monopoly of first-tier manufacturers such as Japan and South Korea in the industry. And have pricing power.

The so-called resonator is an indispensable component of all electronic products. It is divided into a quartz crystal resonator and a ceramic resonator. If the electronic product circuit board is a railway network, the resonator is equivalent to the timetable of the railway network operation. Under the premise of a resonator, electronic products can transmit and receive at a frequency. Since the frequency accuracy of quartz crystal resonators is higher than that of ceramic resonators, it has become the mainstream choice in the market.

After the intelligent production line is fully produced, it will directly reduce costs and improve efficiency for the enterprise. Huang Ming, chief engineer of Sichuan Mingdeheng Electronic Technology Co., Ltd., expects that the annual production capacity of the company will reach 1.5 billion quartz crystal resonators with an output value of 500 million yuan. Employment of 350 people, saving more than 5 times the production efficiency, saving about 50% of labor costs.

After the production line is put into production, it will also change the voice of China's quartz crystal resonators in the global market. Huang Wei said that after mass production of the production line, Ming Deheng will become the number one quartz crystal resonator manufacturer in the country, with market share. It will reach 20% of the global market. 'Now we have made great breakthroughs and progress in the independent research and development of processes and equipment. Even in some market discourse rights, we are slowly shortening the gap between first-tier manufacturers in Japan, Korea and Taiwan. . Han Xuefei, Chairman of the China Piezoelectric Crystal Association, added.

If the intelligent production line is the 'accelerator' for the production of resonators, the smart factory is the 'brain' of the entire production process of the resonator. 'In the smart factory, there is our own industrial Internet system, through which we give each resonance The device is affixed with a unique 'ID card', which performs big data analysis at the same time of production, realizes self-diagnosis, adaptive, self-optimizing function, and saves product testing time.

According to reports, the smart factory of Sichuan Mingdeheng Electronic Technology Co., Ltd. mainly develops and produces quartz resonators, new quartz crystals, sensors and electronic components. The total investment of the project is 150 million yuan, covering an area of ​​35 mu, and the construction workshop and The supporting room is 27,000 square meters, one for each national R&D center and inspection and testing center.

'The commissioning of intelligent production lines and the operation of smart factories are of positive significance for accelerating the construction of the 100 billion smart terminal industry in Chenzhou and even creating a new highland for the entire western information industry. 'The relevant person in charge of the Zhangzhou National High-tech Zone said.

According to Li Bin, Chairman of Mingdeheng Electronic Technology Co., Ltd.: The investment in the electronic component industry chain project in Naxi is an important measure for Mingdeheng Electronic Technology Co., Ltd. to actively respond to the 2025 plan of China Manufacturing in the enterprise development strategy. It will realize an annual production capacity of 800 million pieces, an output value of about 500 million yuan, a tax revenue of about 20 million yuan, and drive more than 400 jobs. The company will become the first-class manufacturer of similar products with the highest innovation capacity and output in the country, and its market share will reach the global market. 20%. Chuanbao observation

4. IC exports increased by 40%! Sichuan's foreign trade imports and exports increased by 24.9%

On July 18, the reporter learned from Chengdu Customs that the total import and export value of Sichuan's goods trade in the first half of the year was 249.91 billion yuan, an increase of 24.9% over the same period of last year, which was higher than the national total import and export growth during the same period. Among them, exports were 134.41 billion yuan, an increase of 27.5%. Imports reached 115.5 billion yuan, an increase of 21.9%.

According to the introduction of Chengdu Customs, the rapid growth of foreign-invested enterprises in import and export by means of processing trade is the main driving force for the high growth of foreign trade. With the release of the production capacity of the Intel Junma project, the production capacity of Foxconn mobile phones has been transferred to Sichuan. In the first half of the year, Sichuan has been importing and exporting by means of processing trade. The growth rate was 30.7%, which boosted the growth of Sichuan's foreign trade by 17.2% in the same period. The import and export of processing trade in the province reached 58.5%. Chengdu High-tech Comprehensive Bonded Zone is the main force driving the province's foreign trade growth. The import and export value of Chengdu High-tech Comprehensive Bonded Zone increased by 25.7%. The province's foreign trade increased by 15.4 percentage points. The import and export of the provinces and regions along the 'Belt and Road' continued to maintain rapid growth, with an import and export value of 72.46 billion yuan, an increase of 33.6%. Among them, for Indonesia, Saudi Arabia, Bangladesh Countries and other countries and regions, foreign trade import and export increased by more than 1 year.

In terms of exports, exports of mechanical and electrical products accounted for 80% of the province's total exports, of which, the growth of automobiles was three times, the growth of color TVs by one time, and the growth of integrated circuits by 40%. The export of traditional labor-intensive products grew negatively, down about 10%. Among them, shoes 1. Boots, clothing, large decline, agricultural products, titanium dioxide, textile growth.

In terms of imports, the province's imported electromechanical products grew by about 20%, accounting for nearly 90% of the province's total imports. The main products include integrated circuits, machines and devices for manufacturing flat panel displays, measuring instruments, etc. Bulk ICs, flat panel displays Machines and devices, testing instruments, etc. are imported from the world to Sichuan through processing trade. This means that a large number of electronic information products will be sent from Sichuan to the world in the future. Imported agricultural products will fall by about 20%, of which imported soybeans and pulp will fall. All are above 30%. (Wang Lin reporter Li Xinyi) Sichuan Daily

Analysis of integrated circuit output in Guangdong Province from January to May 5.2018: Accumulated 14.6% year-on-year increase

According to the database of China Merchants Institute, the output of integrated circuits in Guangdong Province from January to May 2018 shows that the output of integrated circuits in Guangdong Province reached 2.745 billion in May 2018, an increase from May of last year. 14.3 percentage points, production in April also increased by 8.4%.

Source: China Business Research Institute Database

According to statistics, in 2017, the output of integrated circuits in Guangdong Province was 26.288 billion pieces, an increase of 18.3 percentage points year-on-year. Combined with the advantages of Guangdong integrated circuit enterprises, it is expected that the total output of integrated circuits in Guangdong Province will continue to rise in 2018, reaching 30 billion.

Source: China Business Research Institute Database

6. Intel's former chief engineer returned to start a business. It only takes 1 year from the company to the production chip.

Recently, Chongqing University City Science and Technology Industrial Park reported that Chongqing Yuxin Micro Technology Co., Ltd. (hereinafter referred to as Yuxin Micro Technology Co., Ltd.) will officially launch an IoT chip at the end of this year. In the future, the company expects It can produce 30 million chips per year and realize an annual output value of more than 3 billion yuan.

Yuxin Micro Technology was established in December 2017. The company is able to achieve production in a short period of time. Thanks to its self-developed chip design tools, preliminary results have been achieved, which can greatly improve chip development efficiency and shorten chip development time. .

Under the leadership of Intel's former chief engineer, Li Guangjie, a group of researchers from the core and technology companies who followed him from home and abroad faced difficulties and started the research and development of chip design tools, which was less than half a year. In the time, people saw hope.

Yuxin Micro Technology researchers are doing chip research and development work. (Photos) (Photos of the respondents) More than 30 people have been established in less than one month.

Li Guangjie has worked in Intel for more than 10 years in communications and chip research, won the Intel Highest Honor Award, and was promoted to Intel Chief Engineer.

In the second half of last year, Li Guangjie intends to return to China to start a business, and will aim at the upcoming business opportunities of the Internet of Everything, developing chip design tools, and based on this, research and development of multi-functional IoT communication and computing fusion chips, and related communication protocols and Technology platform.

Li Guangjie told some colleagues and friends about this idea, but they were unanimously opposed. The reasons for opposition are very good: chip design tools have been monopolized by foreign companies, and it is difficult to develop such tools.

'When a worker wants to do something good, he must first sharpen his tools. The most common way to follow is to follow, and to innovate from the most basic design tools, relying on large-scale machine computing to replace manpower, must be the core competitiveness of future chip research and development. 'Wu Ye, the former chief architect of Intel Microsystems, recalled that the idea that Li Guangjie introduced in detail at the time made them think that their ideas are feasible. They believe that following such a technology that has been trusted for many years ', there is hope for a miracle. 'So, I plan to follow him 'mad'."

Finally, they were all moved by Li Guangjie.

In December 2017, Li Guangjie gave up the US green card and high salary, returned to Chongqing, where he was a native of China, and founded Yuxin Micro Technology with the support of the Shapingba District Government. Together, there were more than 10 senior technical experts such as Wu Ye and Zhu Shunyu.

Since then, more technical talents from the United States, Japan, Beijing, Shanghai, Guangzhou, Shenzhen have followed Li Guangjie to Chongqing. In less than a month, Yuxin Micro Technology has formed a research and development team of more than 30 people.

In less than half a year, the development process was opened. For the way to go, Li Guangjie has a clear understanding. Entrepreneurship is difficult, and the road to chip entrepreneurship is thorny and has great risks.

Despite this, from the moment he decided to return to China, he decided to challenge himself: 'Do not work hard, how can you know if you can succeed?'

Chips, that is, integrated circuits, are very mysterious high-tech in people's minds. In the past, in the case of chips that were not very complicated, all the work of chip design had to be done manually by electronic engineers. Now, one chip has been integrated. In the era of tens of millions or even hundreds of millions of transistors, it is impossible for electronic engineers to complete chip design by hand.

But with the help of chip design tools (EDA tools, EDA is the abbreviation of electronic design automation technology), things can be much easier - when designing chips, electronic engineers can rely on computers to automate circuit design, performance analysis, design chip layouts, etc. Work, which saves time and manpower.

Even so, chip design is still a project that requires a lot of manpower and material resources, long development cycle and high risk.

Li Guangjie saw the pain point of this industry, decided not to take the usual path, explored and designed a new communication and computing fusion chip development method.

The core idea of ​​this method is: In the complex chip design process of communication, calculation, etc., the designer only needs to pay attention to the algorithm and the requirement itself. The work done by the engineer in the traditional chip design mode is most likely to be completed by the computer.

According to this direction, at the end of last year, Li Guangjie led the research team members to start a nearly closed research work.

This group of people, most of them are 80 years old, and they are very strong. Everyone is renting around the company. Every day except eating and going home to sleep, the rest of the time is in the company to develop chip design tools. In the first half of the year, everyone often works overtime. Late at night, I have never rested on weekends.

At the same time, based on their own years of technical accumulation, we have proposed a variety of different algorithmic schemes, and repeated countless trials. After hundreds of failures, corrections, optimizations, and finally, development was achieved in less than half a year. The process has developed a new EDA tool with independent intellectual property rights.

Reducing the chip design cycle to 6-9 months Compared to existing EDA tools, the EDA tool developed by Yuxin Micro has a unique advantage – with it, designers can describe requirements and algorithms in a simpler way, relying on Computer program a series of optimization algorithms and large-scale operations to achieve intelligent chip design.

'After testing, our tools can double the efficiency of chip development.' Li Guangjie told the Chongqing Daily reporter.

He gave an example: The design of a SoC chip (on-chip system chip, a single chip can integrate a central processor, a complete system of memory and peripheral circuits) is a complex project. In the past, many international companies needed to Hundreds of people come to do this. And, from the beginning of the design to the sample, it usually takes 18 months.

If you use the company's EDA tools, you can generally reduce the chip design cycle to 6-9 months, and can significantly reduce the number of people. This will greatly increase the speed of chip development, reduce research and development costs, and accelerate the chip. Time to market.

However, the voice of doubt in the industry quickly came.

'This is mostly a gimmick, not an amazing achievement! 'An integrated circuit expert at a university in Chongqing suspected that the core technology is in the hands of foreign companies, EDA tools, a Chongqing enterprise in a short time It is almost impossible to break through the technical bottleneck.

In the face of doubts, Li Guangjie said: 'Can you succeed, and finally use the facts to speak. And the first commercial chip project of Yuxin Micro Technology is an experimental field.'

According to its introduction, this is a fully integrated fusion chip (belonging to the system-on-chip) project, which will integrate the bee

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