1. Military MLCC has not been domestically produced? The forbearance and volition behind the gross profit margin of 70%!
Abstract: In the future, with the scale expansion and technology upgrade of domestic military MLCC giants, the proportion of MLCC 'localization rate' will continue to increase, and gradually replace foreign products.
Integrated micro-network news (text / Jiufang Fang), with the improvement of reliability and integration, MLCC has become one of the largest and fastest growing chip components in the world. Data show, 2017 MLCC global market The scale has reached 11 billion US dollars, accounting for more than 50% of the total size of the global capacitor market. At present, with the influence of the shortage of goods, domestic MLCC companies gradually realize the 'localization' substitution in the consumer market, then in the domestic military market, What is the situation?
Military MLCC Maori 70%
In the field of military electronics, MLCC is widely used in satellite, spacecraft, rocket, radar, missile and other weapons and equipment. Unlike consumer electronics, automotive, industrial and other fields, the military market involves national information security, related chips and components. The 'localization' process must be written into the national strategy.
At present, the domestic military MLCC is mainly supplied by four enterprises, namely Chengdu Hongke Electronics, Fujian Torch Electronics, Beijing Yuanliu Hongyuan Electronics and Guangdong Fenghua Bangke Electronics.
Benefiting from the improvement of sea, land, air and land equipment information and equipment replacement, China's military high-reliability MLCC market has a very broad market prospect. According to data released by China Electronic Component Industry Association Capacitor Branch, China military ceramic capacitor market scale The annual growth rate of China's military ceramic capacitors will reach 2.95 billion yuan by 2019, and the average annual compound growth rate will reach 12.7%, higher than that in the industrial and consumer electronics fields.
According to industry analysts, at present, the overall market size of domestic military MLCC is about 2 billion yuan. Although it is not large, it has a pivotal role in the defense industry, and it has a high profit. For many years, companies such as Torch Electronics have been in the market for a long time. Gross profit remains above 70%.
As the only listed company among the four major enterprises, the gross profit margin of military products from 2011 to January-June 2014 was 77.53%, 77.23%, 81.96% and 80.58% respectively. On June 19, 2018, Torch Electronics released its first-half results forecast. It is estimated that the company's net profit attributable to shareholders of listed companies from January to June 2018 will be 175 million to 192 million, a year-on-year increase of 50% to 65%.
Some analysts pointed out that Torch Electronics made the above predictions based on the following reasons: (1) The company's self-produced capacitor products increased production capacity, customer product demand and orders continued to increase; (2) The company provided military and civilian markets, due to the continued use of civilian MLCC In the state of out of stock, its self-produced civilian MLCC gross margin increased significantly.
Guoxin Securities also said that the current volume and price of MLCC products have risen steadily, and the rapid growth of semi-annual report performance reflects the high demand of downstream industries. The torch electronic military business accounts for about 70% of the self-production business income, and the current military orders are full. Production capacity has expanded, driving the rapid growth of the military industry.
Improving the 'localization rate' is still the key
The domestic military MLCC market is dominated by domestic enterprises, but the focus of competition is not on the market but in new product development and production capacity. Some analysts have emphasized that there is a certain threshold for entering the military ceramic capacitor market, which is not only technically demanding, stable, and reliable. In order to meet the requirements, it is also necessary to pass the six military salary certification, which needs annual review, and the qualification barriers are high. As of now, the domestic market can be stable in the passive component military market, only a few.
In addition, it is understood that military customers will use the MLCC products as the essential prerequisite for the reliability history of the supporting manufacturers, similar to the upstream and downstream deep binding of the automotive industry chain, and the supply relationship is very stable. The demand for military MLCC is a personalized product of 'multiple varieties and small quantities', which may lead to insufficient utilization of production capacity, and it is difficult for the performance to explode rapidly. These are the challenges faced by MLCC manufacturers who want to enter the military industry.
Overall, the current domestic military MLCC supply is mainly domestic enterprises, but the localization ratio of military MLCC is still a major issue! Some analysts said that in 2013, the domestic military MLCC market totaled 1.44 billion yuan. The total number of major local manufacturers is less than 327 million yuan, and the localization rate is only 22.7%! Even some people in the industry expect that the demand for military MLCC will be directly linked to defense spending. It is expected that by 2019, the domestic military MLCC market will be scaled. It reached 2.9 billion yuan, and the localization rate will still not exceed 50%. The ceiling is still far away.
Under such a status quo, how should domestic military MLCC enterprises deal with it? Some analysts have revealed that Torch Electronics, Yuanliu Hongyuan, etc. are all increasing their horsepower to develop and produce. With the funds raised by IPO, the number of torch electronic military products is expected to increase. Doubled, the production capacity will increase by more than 40%; and Yuanliu Hongyuan, which is seeking to go public, is also preparing to expand the production capacity of military products, and plans to expand 1.6 times in 3-4 years.
In addition, Torch Electronics also stated in its performance forecast for the first half of the year that it benefited from the positive benefits of the industry, and the gross profit margin of its own MLCC civilian products and components trade increased significantly, along with the company's high-margin self-production business (military industry). MLCC) The income growth rate is accelerating, the company's net profit margin is expected to rise, driving the rapid growth of net profit. It is expected that the compound growth rate will reach 40% in the next three years, and the performance growth rate will be significantly higher.
It can be seen that with the expansion of the scale and technology upgrade of the domestic military MLCC giants in the future, the proportion of MLCC 'localization rate' will continue to increase, and gradually replace the foreign products. (Proofreading / Fan Rong)
2. Hua Weiwei won the honorary title of 'Top Ten Flash Controller Enterprise';
According to the micro-network news, on July 19, 2018, at the 2018 Global Storage Semiconductor and Global Flash Memory Technology Summit held in Wuhan, Hua Wei was honored as one of the 'Top Ten Flash Controller Enterprises'.
After the strict selection and final evaluation of the participating expert committees, China's flash controller company Hua Weiwei won the honorary title of 'Top Ten Flash Controller Enterprise'. The companies that obtained the title also include Intel, SAMSUNG, Microsemi, Huawei, Marvell and other international companies. .
Deputy Director of the Peripheral Equipment Professional Committee of the China Computer Society, Member of the Standing Committee of the Information Storage Committee, Vice Chairman of the China Network Expert Committee of the International Network Storage Industry Association (SNIA), Professor Xie Changsheng, Ph.D. Supervisor of Huazhong University of Science and Technology, personally presented the honorary certificate to Hua Weiwei. (The picture shows Professor Xie Changsheng (left) awarding the vice president of Hua Wei Wei Zhoubin)
3. Lixun Precision plans to change 970 million raised funds to invest in artificial intelligence module expansion projects;
Set micro-network news (text / Lee), July 20, Lixun Precision announced that the company plans to use non-public offering of funds raised funds of 650 million yuan and 700 million yuan respectively to invest in the construction of 'USB Type-C connector module expansion The production project 'and 'enterprise-level high-speed interconnect technology upgrade project', the implementation of the main body is Lixun Precision's wholly-owned subsidiary Dongguan Xunyi Electronics Co., Ltd. (hereinafter referred to as 'Dongguan Xunyi').
As of June 30, 2018, the two projects have invested 4,03 million yuan and 45.5 million yuan respectively, and the project progress is 6.16% and 6.07% respectively. In order to improve the efficiency of fundraising and the return on investment of funds raised, the company intends to change 'USB. Type-C connector module expansion project 'and 'enterprise-level high-speed interconnect technology upgrade project' part of the capital use, used to invest in Lixun Precision Holdings subsidiary Ji'an Lixun RF Technology Co., Ltd. (hereinafter referred to as 'Lixun RF' Lixun Precision directly holds 70% of the shares, and the remaining 30% of the shares are held by Xunxun Precision Co., Ltd., a wholly-owned subsidiary of Lixun Precision Co., Ltd., and it implements the 'Artificial Intelligence Module Product Expansion Project'.
The change in the use of the raised funds will be reduced by Lixun Precision through the increase in registered capital of Dongguan Xunxun. The artificial fuel module product expansion project's specific funding sources are as follows: (1) 'USB Type- C connector module expansion project 'The proposed fund-raising fund is 570 million yuan; (2) 'Enterprise-level high-speed interconnect technology upgrade project' The proposed fund-raising fund is about 40 million yuan.
The change involved a total of RMB 970 million in raised funds, accounting for 21.14% of the company's net proceeds from non-public offering of shares in 2016.
About the reason for changing the original investment project
Lixun Precision said that in recent years, the demand for global artificial intelligence products (wearable devices, smart furniture, etc.) has been rising, and the company expects to maintain a rapid growth trend in the future.
Due to its many advantages, the company's Type-C interface has been recognized by the market soon after its launch. According to the individualized product design requirements of different customers, in order to quickly occupy the product market, the company has multiple legal entities involved in the development of the corresponding customer Type-C products. , production and sales, capital investment in technology and automation research and development has been completed everywhere.
In addition, the company's 'enterprise-level high-speed interconnect technology upgrade project' was affected by the approval process of business, foreign exchange management, etc. The company was unable to remit funds to carry out the investment and construction of the above R&D center as scheduled. Based on this, in order to effectively use the raised funds, the most effective capital benefits. Chemical.
Basic situation of new projects
According to the disclosure, Lixun Precision 'Artificial Intelligence Module Product Expansion Project' is based on Lixun Precision Holding Co., Ltd. Ji'an Lixun Radio Frequency Technology Co., Ltd., and is planned to be carried out in the Wireless Communication Industrial Park of Ji'an High-tech Industrial Park in Jiangxi Province. Expansion, construction area of about 148,800 square meters, used in production and research and development laboratory sites.
The total investment is RMB 970 million, of which: construction investment is 790,075,500 yuan, and the initial working capital is 17,929.25 million yuan. The source of funds is the company's 2016 non-public offering of shares to raise funds. The project construction period is two years.
Lixun Precision said that after the project is completed, it will mainly focus on the R&D, production and sales of module components. The products are mainly used in the field of consumer electronic mobile terminals. According to the capacity planning formulated by the company, the construction period of the project is two years. After the project is put into production, it will reach 40% in the first year of production; 60% in the second year, 80% in the third year, 100% in the fourth year, 100% design production capacity, and annual production capacity for artificial intelligence. The module product is 27.55 million sets. After the completion of this project, it will be mainly used to serve foreign customers, and the product sales form will be mainly exported. (Proofreading/Lee)
4. Sun Shutao: Promote the development of the wide-bandgap semiconductor industry in Jinan;
On the morning of July 19th, the wide-bandgap semiconductor industry development forum and strategic cooperation signing event was held. The deputy secretary of the municipal party committee and the mayor Sun Shutao issued a letter of appointment for the expert representative of the semiconductor industry development at the signing event, and a speech by the Chinese Academy of Sciences Yang Deren, director of the State Key Laboratory of Silicon Materials of Zhejiang University, and Wang Qichen, executive vice president of Shandong University Party Committee, attended the event.
In his speech, Sun Shutao said that the semiconductor industry is the core of the information technology industry, and is an important national, leading, strategic industry. It is also a high-tech talent and a capital-intensive high-tech industry with great potential for development. Jinan is developing a ban. With the semiconductor industry has a good industrial base and certain research and development advantages. The development of the forbidden band semiconductor industry requires the joint efforts of the government, enterprises and society. Next, we will set up a fund, set up a promotion team, and strive to create a first-class camp. Business environment, providing quality and efficient services, promoting the development of the wide bandgap semiconductor industry in Jinan.
At the signing event, the Huaiyin District Government and Shandong University signed an agreement to jointly establish the Science and Technology Achievements Technology Transfer Center of Shandong University; the Huaiyin District Government, the Management Committee of Huaiyin Industrial Park, and Hunan Zhengxin Microelectronic Detector Co., Ltd. jointly signed a large area. Silicon drift detector industrialization' project strategic cooperation agreement; Netherlands Stetek Group Co., Ltd., Jinan Rail Transportation Group Co., Ltd., Shandong Tianyue Crystal Materials Co., Ltd. signed a strategic cooperation agreement; Shandong University State Key Laboratory of Crystal Materials and Zhongchuang Technology The results trading platform signed a strategic cooperation framework agreement for the transfer of scientific research results.
Wide-bandgap semiconductors refer to next-generation semiconductors such as silicon carbide, gallium nitride, gallium oxide, and diamond. They have superior performance and can be widely used in many fields such as defense industry, rail transit, high-end equipment, etc., and bring significant performance to related products. At present, the wide bandgap semiconductor has formed a scale of 100 billion yuan in the lighting industry. According to authoritative forecasts, by 2025, the global forbidden band semiconductor market will exceed 2 trillion yuan, and the development space is broad. Jinan Daily
5. Asia's largest copper-clad ceramic substrate production line is put into production in Dongtai
On July 19, the first phase of the Jiangsu Fulede Semiconductor Project, which was settled in the Dongxin District of Dongtai City, was officially put into operation.
Copper-clad ceramic substrates are widely used in new energy vehicles, high-speed rail, subway, large aircraft, automotive charging piles and other high-power equipment. 'Before we mass-produced copper-clad ceramic substrates, the copper-clad ceramic substrates required by other domestic manufacturers are Dependent on imports. Now, our output can meet 30% of the domestic market demand, and still nearly 70% rely on imports, and domestic market demand is growing at a rate of 20% to 30% every year. 'Fooley China President He Xianhan introduced, Fuller Group authorized Shanghai Shenhe Thermomagnetic Electronics Co., Ltd. to be responsible for the implementation of the project. At present, Shenhe's module substrate is the first in the country. In fact, the only large-scale mass production of domestic power device module substrates is available. .
In recent years, Dongtai City has seized a new round of scientific and technological revolution and industrial transformation opportunities, and has developed a new enthusiasm for the development of quasi-emerging industries, and has continued to cultivate and strengthen the electronic information industry, and accurately develop the new 'blue ocean' of semiconductors, in semiconductor components, semiconductors. segments of materials, circuit boards, etc., quickly gathered a number of leading enterprises, speed up the building semiconductor industry Heights has a regional influence.
Fuller Group has established two companies in Dongtai Chengdong New District: Jiangsu Fulede Semiconductor Technology Co., Ltd. and Jiangsu Fulede Quartz Technology Co., Ltd., with a registered capital of 15.5 million US dollars and 100 million yuan, investing in two projects. : Annual production of 12 million semiconductor power module copper-clad ceramic substrate projects and annual production of 300,000 high-purity precision quartz semiconductor new materials projects, with a total investment of 1.15 billion yuan, new precision oxidation furnace imported from Japan, the United States, Germany, Sintering furnace, laser cutting machine, ultrasonic scanner, high-precision ingot laser cutting machine, Japan MAZAK machining center, large quartz rotary disc machine, etc., testing equipment up to more than 600 sets.
According to He Xianhan, the world's first production is a German company with a capacity of 1 million pieces per month. Now, Jiangsu Fulede can reach the international advanced level of DCB substrate production of 350,000 pieces per month, ranking in Asia. In the first three years, the monthly output of Yancheng will reach 1 million. After the completion of Jiangsu Fulede Quartz Technology Co., Ltd., 300,000 high-purity precision quartz new materials can be formed. The company can realize high-purity precision quartz products worldwide. First, the second goal of the copper-clad ceramic substrate. (Reporter Xu Qunqun)
6. Stable in the third quarter, the forecast season is reduced by 10%.
According to the micro-network news, the world's largest GaAs wafer foundry is looking forward to the third quarter. As some customers enter the inventory adjustment period, the demand is not as strong as the same period of the previous year. The third quarter revenue decreased by 10% compared with the previous quarter. 3. The gross profit margin for the third quarter is almost the same as that for the second quarter.
The industry is concerned about the reasons for the steady decline in revenue forecast for the third quarter, whether there are too many stocks of Apple VCSELs, or changes in competitors and processes. The response from the stable management layer is that all product shipments are forecast to decline, mainly The customer adjusted the inventory, and the demand from the customer was weak. The third season is in the middle of the new and old machine, 3D sensing shipments will be less than the previous season, the fourth season is not clear.
The company pointed out that since last year's 3D sensing was concentrated in the last quarter of shipment, the stable production capacity was very tight, so that the customer made some distribution actions earlier this year, so the inventory adjustment in the second quarter was carried out, affecting the third quarter. Order.
Steady consolidated revenue for the second quarter was NT$4.567 billion, up 2% from the previous quarter and 20% from the same period last year. The combined net profit after tax in the second quarter was NT$905 million, an increase of 24% from the previous quarter. Compared with the same period of last year, it increased by 24%. The gross profit margin of the single quarter was 32.4%, which was 1.7 percentage points lower than that of the previous quarter. However, due to the foreign exchange gains of 176 million yuan, the EPS of the second quarter was 2.16 yuan, which was better than the same period last year. The accumulated EPS is 3.9 yuan, which is also better than the same period last year.