1. China's MOCVD market is intensifying competition, Veeco is looking for new growth points such as 3D sensing applications;
According to micro-network news, on August 2, MOCVD equipment manufacturer Veeco disclosed its second-quarter results in 2018. 2Q18 achieved revenue of $157.8 million (equivalent to RMB 1.079 billion), a slight decrease from the previous quarter's $158.6 million. However, it increased by 40.6% from US$112.2 million in the same period last year.
Geographically, US revenues rose from 15% to 21%, EMEA (Europe, Middle East and Africa) rose from 10% to 16%, while China fell from 47% to 45%. Blu-ray LED MOCVD sales fell from 39% to 31%, while in other regions it fell from 28% to 18%.
In terms of revenue structure, in the company's total revenue, lighting, display and composite semiconductor division revenue fell slightly from 90 million US dollars to 88 million US dollars, the department's business accounted for 57 to 55% of its total revenue, It includes the Blu-ray MOCVD system sold in China.
Advanced packaging and MEMS & RF filter divisions, including lithography and precision surface treatment (PSP) revenues fell slightly from $27 million to $25 million, accounting for a 16% drop in revenue
Scientific and industrial sectors (including shipments of data storage and optical coding applications) revenues fell from $32 million to $27 million, and revenues fell from 20% to 17%.
Front-end semiconductor division (in May 2017, the company acquired US lithography, laser processing and inspection system manufacturer Ultratech, part of the science and industry sector) revenue doubled from $9 million to $18 million, revenue share from 6% jumped to 12%, including the ion beam etching system for the STT-MRAM process and the revenue from the Laser Peak Annealing (LSA) system.
The Ultratech product line's revenue is lower than the acquisition forecast, because some customers' smartphone shipments are lower than expected, these smartphones use fan-out WLP, while other electronics manufacturers The adoption of the packaging technology was postponed. In addition, the construction progress of China's 28nm fabs was postponed, which also led them to purchase the LSA system later than expected. 'We are growing this business in the front-end semiconductor and advanced packaging markets in the future. Full of confidence. ' Chief Financial Officer Sam Maheshwari said.
Although the gross profit margin has dropped from 39.1% a year ago to 36.5% in the previous quarter and then to 35.8% in the current quarter, this figure still exceeds the better cost structure due to better product mix and warranty and manufacturing. Prior to the 33~35% forecast, the overall gross profit margin of the first half of the year was also higher than expected.
Operating expenses were slightly revised down from $46.5 million in the previous quarter to $45.7 million, better than the expected $46-48 million.
Veeco Chairman and CEO John R. Peeler commented: 'Veeco's second quarter performance was solid, non-GAAP gross margin, operating income, net income and earnings per share were in line with company expectations. We continue to achieve synergies through the integration of Ultratech Progress has been made and production capacity has been rationalized by closing one of Singapore's production sites. We expect to complete the program by the end of the first quarter of 2019 and expect to save approximately $2 million annually.'
In addition, Veeco is preparing to launch new products in the second half of 2018, and its inventory has increased from US$131 million to US$146 million (from 61 days to 76 days). Finally, due to the decrease in orders from Chinese MOCVD customers, customer deposits have declined.
Orders for the second quarter were $132 million, a decrease of 14.8% from the previous quarter of $155 million. This was mainly due to LED manufacturers delaying orders in absorbing recent increases in capacity, leading to LED lighting, display and composite semiconductors. The weakness of the sector. Specifically, orders for blue LED MOCVD from general lighting and backlight applications in China have declined. 'From 2017 to the first half of 2018, hundreds of MOCVD systems for blue LEDs were sold to the market, we expect There will be a period of absorption,' Peeler pointed out. In contrast, in the scientific and industrial markets, Veeco saw a sharp increase in orders for data storage customers, especially ion beam deposition tools.
Backlogs in the second quarter fell from $331 million to $305 million, two-thirds of which are scheduled to ship in 2018, and the remaining orders include longer-haul ion beam systems, scheduled for shipment in the first half of 2019.
Peeler said that there are two trends that can be seen in the market. First, the competition in China's MOCVD market has intensified, the general lighting and backlight market has gradually become commercialized, and prices are also falling. We noticed this trend at the end of 2017, and the gross profit margin of orders also It has become very low. Second, new applications have emerged, such as optical devices for 3D sensing, GaN power devices for electronic systems and electric vehicles, and GaN RF devices and micro LED displays for 5G RF. It is pointed out that Veeco's strategy in this market has been to focus on providing value through differentiated technologies. R&D has been with this strategy for a while, resulting in a broad MOCVD portfolio to meet the needs of these emerging applications. He said the company is in optoelectronics. The field has achieved exciting growth, and growth in markets such as displays, memory and electronic power packaging has also highlighted customer success.
In the field of 3D sensing, Peeler said that he is pleased to see other mobile phone manufacturers adopt VCSEL-based facial recognition technology in their devices. He pointed out that Veeco has cooperated with several VCSEL manufacturers to carry out the epi process and is ready to invest. Mass production. 'We have also recently used wet etching and cleaning products for the metal stripping and photoresist stripping process of VCSELs. It is believed that 3D induction growth has just begun. 'He said, 'In the GaN RF and GaN power supply market We are working with several of our large IDM customers on the single-wafer propulsion platform Propel, our Propel installation base is being expanded, and we are ready to capitalize on mass production. ' He added that the company recently A number of wet etching and cleaning products have been shipped to Taiwanese foundries for the production of RF amplifiers and other compound semiconductor applications. It is hoped that optical and RF devices will continue to contribute to the company's growth.
He explained that although the orders in the science and industrial sectors are very strong, the booking distribution across the market is more balanced. Advanced packaging, MEMS and RF filters account for 19% of total bookings, lighting, display and composite semiconductors are 14%, front end Semiconductors are 21%, and scientific and industrial orders are 46%. In the third and fourth quarters, diversification should be more pronounced.
Looking forward to the third quarter of this year, Veeco expects to achieve revenues of 130 million to 140 million US dollars. According to GAAP, 2Q18 expects a net loss of 7-12 million US dollars, and the gross profit margin will remain at 35-37%. According to Non-GAAP, 2Q18 net Revenue is expected to reach $1 million to $6 million, and gross margin will remain at 36-38%.
Fourth-quarter revenue is expected to be flat with the third quarter, but gross margin has increased. Although Veeco expects revenue growth in all four segments in 2018, sales of low-margin blue LED MOCVD in China are expected to be Peeler stressed that the company will focus on raising the gross profit margin in the second half of the year to boost its gross margin to 40% this year. As for 2019, Peeler expects that due to sustainable, better product mix and cost reduction measures, Mao will be The interest rate has increased to over 40%. 2.3D Structure Light Industry Status: The introduction of mobile phone manufacturers has slowed down, and suppliers are waiting to be launched;
Set micro-network news (text / Lee), last year Apple launched the 10th anniversary version of the iPhone X, its 3D Sensing face recognition, quickly became the industry's hot new smartphone features. According to supply chain disclosure, 2018 Apple The three new machines will adopt 3D structured light solutions, and Apple is also leading the development and application of 3D structured light technology.
Since the iPhone X released the Face ID with 3D structured light, the domestic Android phone manufacturer immediately followed up. At present, the Xiaomi 8 transparent exploration version equipped with 3D structured light function has been released, and the OPPO Find X, which is also equipped with 3D structured light, has already been released. Listing.
The outbreak of 3D structured light on Apple and domestic manufacturers has also made Samsung feel excited. For a long time, iris recognition technology is Samsung's main technology and its propaganda. But according to Korean sources, Samsung is working with Mantis. Vision's Israeli company cooperates to develop the required technology (3D structured light), Samsung S10 and Samsung Galaxy S series new machines will abandon the iris unlock, and then use the current domestic flagship flagship and 3D structured light technology.
According to Trend Force, the 3D Sensing market will grow geometrically in the next few years. By 2020, the 3D Sensing market will reach 10.849 billion US dollars. The market space for 3D sensing will reach 18 billion US dollars in 2023, and the combined growth in 2018-2023. The speed reached 44%. Among them, 3D Sensing's penetration rate in the smartphone market continues to increase, and the 3D Sensing penetration rate is expected to increase from 2.1% in 2017 to 28.6% in 2020.
Qiu Ti Technology
Qiu Ti Technology recently announced that the company has made major breakthroughs in the development of new products for 3D structured optical modules and screen fingerprinting modules, and has officially started mass production and sales. Qiu Ti Technology announced that in July this year, the company successfully achieved One of China's first smartphone brand manufacturers (OPPO)'s first batch of 3D structured optical module bulk purchase orders and stocking demand instructions, the total number of more than 1 million, and the successful acquisition of another Chinese smartphone brand (vivo) first screen Fingerprint identification module batch purchase orders and stocking demand instructions, the total number of more than 7 million.
According to China Merchants Electronics, Qiu Ti Technology said that 1 million 3D structural optical module orders came from OPPO Find X; 7 million screen fingerprint orders came from vivo X21s.
Domestic manufacturers promote slowdown
According to industry sources, OPPO Find X's 3D camera module is exclusively supplied by Qiu Ti Technology, and it can be seen from Qiu Ti Technology's 1 million structured light face recognition scheme. OPPO Find X's estimated first shipments At 1 million units. For the flagship machine, OPPO Find X expects shipments of 1 million units to be clearly not high.
Another domestic Android phone equipped with 3D structured light technology, Xiaomi 8 transparent exploration version of the 3D structure optical camera module is provided by Oufei Technology, has been officially launched.
And vivo is also reluctant to miss this technical iteration. It chooses to cooperate with Panasonic. It does not use structured light, but instead adopts the ToF technology route. According to industry insiders, the vivo 3D camera module will be jointly developed by Sunny Optical and Oufei Technology. supply.
The industry believes that 3D structured light is better than ToF at close range, and once the distance reaches three or four meters, the effect of 3D structured light will be rapidly decayed. Therefore, it is very suitable for mobile phone face unlocking, but in AR and other scenes, Even security cameras, access control and other applications, ToF may be more dominant, I believe this is why vivo chose to use the ToF technology route.
Although Apple introduced the iPhone X with 3D Sensing face recognition last year, it has quickly become a new smart phone feature in the industry, once again leading the mobile phone industry to start a new wave of innovation cycle upgrade. However, according to industry insiders, most domestic mobile phone manufacturers There is no consensus on whether to choose the fingerprint under the screen or the 3D structure. In fact, in the face of the choice of these two technologies, many mobile phone manufacturers are swinging. This kind of swaying also makes the 3D structured optical technology process in the domestic machine application. Slow down.
In this regard, China Merchants Electronics believes that at present, the promotion of domestic mobile phone manufacturers in the field of 3D structured light has slowed down, and is related to yield, cost, and user experience. However, the trend of fingerprints under the screen is getting stronger, mainly due to the screen. The cost of the fingerprint module has dropped to 7-8 dollars, and the yield is good.
Apple's 3D structured light supply chain tends to improve
At present, the global 3D structured optical supply chain tends to be perfect. The overall technical solutions include Primesense, Obisoft, Intel, Israel Mantis Vision, Tuo Technology, Obi Zhongguang, Huajie Amy, etc. In terms of 3D image processing chips. There are a few chip giants such as Primesense, STMicroelectronics, Texas Instruments, Infineon and so on.
Despite the high cost of 3D structured light technology, 3D structured light performs well in biometric verification, and can also achieve AR functions well, such as AR games, 3D modeling of products, even in science fiction movies. Holographic video call. With the improvement of 3D structured optical supply chain, product yield continues to increase, I believe that 3D structured light technology has a very rich application prospect in the future.
According to Deutsche Bank, the number of smartphones (iPhones) equipped with 3D Sensing modules in 2017 was 38 million units, and the rate of loading on smartphones was only 3%. In 2018, 3D Sensing modules were implemented on Android phones. The demand for 3D Sensing modules in the smartphone market is expanding. It is predicted that the number of iPhones equipped with 3D Sensing modules will reach 440 million units in 2020, and the number of Android phones equipped with 3D Sensing will reach 465 million units. 3D Sensing on smartphones The loading rate will reach 38%.
Domestic 3D structured light supplier is ready to go
In terms of supply chain, Xiaomi 8 transparent exploration version of the overall technical solution is to cooperate with Israeli company MantisVision, its 3D structure optical camera module is provided by Oufei Technology; OPPO find X overall technology solution is to cooperate with Obi Zhongguang. The 3D camera module is exclusively supplied by Qiu Ti Technology.
In the upcoming new flagship machine, Jiwei.com learned from the supply chain that Huawei completed the 3D camera related design as early as March this year, and the 3D camera module will cooperate with Sunny Optical.
Lianchuang Electronics also revealed that the company's 3D structured light lens has entered two of the top four mobile phone brands in China. In addition, JSCK, a subsidiary of China Changjiang Electronics Technology Co., Ltd., has been working with Apple since the beginning of this year. The 3D Sensing module in the middle of the three camera module. Whether the assembly of the overall camera module is responsible for JSCK has not been determined. Because the 3D Sensing module is the core, if the development project is successful, it may also be responsible for the three camera module. Group of assembly business.
It is understood that JSCK plans to complete the relevant module development early next year, and mass production by the end of the second quarter of 2019 in the second quarter of 2019. If it can meet all the requirements of Apple, it will compete with the existing module cooperation companies such as LG Innotek. According to industry insiders, JSCK proposed to Apple that if it can complete the successful development of the project, it will require Apple to allocate 30% of the output. (Proofreading / Ermu) 3.2018H1 Electronic Information Manufacturing 'Number' There is an article: IC import and export The amount of liquid crystal panels dropped sharply;
In the first half of 2018, the electronic information manufacturing industry continued to maintain a steady growth trend. The growth rate of production and investment maintained a leading level in various industrial sectors. The overall operation of the industry remained stable, laying a solid foundation for the sustainable and healthy development of the industry throughout the year.
First, the overall situation
In the first half of the year, the added value of electronic information manufacturing enterprises above designated size increased by 12.4% year-on-year, faster than the growth rate of industrial enterprises above designated size by 5.7 percentage points; of which, the growth rate in June was 10.9%.
In the first half of the year, the export delivery value of the above-scale electronic information manufacturing industry increased by 6.1% year-on-year, and the growth rate dropped by 7.3 percentage points year-on-year. In June, the export value of electronic information manufacturing industry only increased by 1.5%.
According to customs statistics, in the first half of the year, among the main import and export products, the export value of integrated circuits increased by 31.1% year-on-year, and the growth rate accelerated by 29.4% year-on-year; the import value increased by 32% year-on-year, and the growth rate accelerated by 22.6 percentage points year-on-year. It fell by 4.1% year-on-year (up 3% in the same period last year); imports fell by 10.1% year-on-year (up 1.4% in the same period last year).
In the first half of the year, the revenue from the main business of electronic information manufacturing above designated size increased by 8.1% year-on-year, total profit decreased by 2.3% year-on-year, the main business profit margin was 4.27%, and the main business cost increased by 8.9%. At the end of June, the industry's receivables Accounts increased by 20.1% year-on-year, and finished goods inventory increased by 12.4%.
In the first half of the year, the ex-factory price of producers of electronic information manufacturing fell by 2.5% year-on-year. In June, the ex-factory price of producers of electronic information manufacturing fell by 2.5% year-on-year, continuing the downward trend since the third quarter of last year, up 0.1% from the previous month.
In the first half of the year, fixed assets investment in electronic information manufacturing increased by 19.7% year-on-year, 5.1 percentage points faster than that in January-May. Among them, the semiconductor discrete device manufacturing industry has a high degree of prosperity, and investment growth is outstanding, up 36.3% year-on-year; Industry, electronic circuit manufacturing in the automotive electronics, artificial intelligence, 5G and other emerging markets, the investment momentum is good, up 31.2% and 27.5%.
Second, the main sub-sectors
(1) Communication equipment manufacturing
In the first half of the year, the added value of the communications equipment manufacturing industry increased by 13.4% year-on-year. The export delivery value increased by 11.5% year-on-year. Among the main products, mobile phone production increased by 3.4% year-on-year; the output of smart phones increased by 4.7%.
In the first half of the year, the revenue from the main business of the communications equipment manufacturing industry increased by 10.9% year-on-year, and the profit decreased by 4.3% year-on-year.
(II) Manufacturing of electronic components and electronic special materials
In the first half of the year, the added value of electronic components and electronic materials manufacturing increased by 15.4% year-on-year. The export delivery value increased by 10.3% year-on-year. Among the main products, the output of electronic components increased by 21.5%.
In the first half of the year, the revenue from the main business of electronic components and electronic materials manufacturing increased by 10.8% year-on-year, and the profit increased by 17.8%.
(3) Electronic device manufacturing
In the first half of the year, the added value of electronic components manufacturing increased by 14.3% year-on-year. The export delivery value increased by 1.5% year-on-year. Among the main products, the output of integrated circuits increased by 15%.
In the first half of the year, the revenue from the main business of electronic components manufacturing increased by 6.9% year-on-year, and the total profit decreased by 12.7%.
(iv) Computer manufacturing
In the first half of the year, the added value of the computer manufacturing industry increased by 7.6% year-on-year. The export delivery value increased by 5.6% year-on-year. Among the main products, the output of microcomputer equipment increased by 0.5% year-on-year, of which notebook computer production increased by 1.7% year-on-year; %.
In the first half of the year, the main business income of the computer manufacturing industry increased by 6.8% year-on-year, and the profit increased by 13.4% year-on-year. The profit of computer complete machine manufacturing and computer peripheral equipment manufacturing in the sub-sector increased by 36.7% and 14.8% respectively.
(In addition to the statistical data in the text, the rest are the data of the National Bureau of Statistics or based on this calculation)
Source: Operational Monitoring Coordination Bureau, Ministry of Industry and Information Technology
4. Huarui Optoelectronics' fifth-generation TFT LCD panel production line is scheduled to be formally constructed in September;
In the first half of this year, Zhengzhou Airport Experimental Zone signed 28 projects with a total investment of about 54.6 billion yuan. The world-class electronic information advanced manufacturing industry cluster represented by intelligent terminals has initially formed a 1+ 1+ N promotion structure.
The first '1' is the Foxconn industrial cluster. In the first half of the year, the area of Apple's mobile phone production in the region was nearly 34 million. While serving the mobile phone manufacturing project, the region continues to play Foxconn's world-leading precision manufacturing and processing capabilities, driving it from a single OEM Apple mobile phone expands to the well-known domestic brand of OEM. At the same time, it accelerates the implementation of Foxconn Zhongzhou R&D Center, back-end module, aviation logistics park, etc., and promotes Foxconn from single handset manufacturing to R&D design, display segment, logistics settlement and other industrial chains. The upstream and downstream links will be expanded to gradually realize the layout of the entire industry chain.
The second '1' is a non-Apple mobile phone industry cluster led by the smart terminal (mobile phone) industrial park. In the first half of this year, 19 new mobile phone projects were signed, and 5 new mobile phone companies were put into production. As of the first half of the year, the cumulative production of enterprises 66 Home, including 36 complete machine enterprises, 30 supporting enterprises; 39 renovation enterprises, including 16 complete machine enterprises and 23 supporting enterprises. In the first half of the year, the output of non-Apple mobile phones in the region reached 75.598 million units, an increase of 17.5%. The output value reached more than 95 billion yuan, a year-on-year increase of 13.1%.
'N' is a group of key promotion projects such as Huike, Huarui, Hejing, etc. The Huike 11th generation LCD monitor project was officially signed on February 8th; Huarui Optoelectronics 5th generation LCD monitor project is scheduled to be officially constructed in September; The first 200 mm 8-inch semiconductor silicon ingot of the crystal project was fired on June 25.
It is understood that in the second half of this year, the district will fully promote the development of Foxconn in the port area, ensuring that Foxconn's annual mobile phone production will reach 100 million units, and non-Apple mobile phone production will exceed 200 million units. At the same time, Huike, Huarui, Hejing Such as major projects to promote, the region to promote greater breakthroughs in optoelectronic display, integrated circuits, new energy, new materials and other industries.
As a high-tech representative project, Shenzhen Huike Co., Ltd. has established a Huike 11th generation LCD panel project in Zhengzhou Airport Port Area with a total investment of 40 billion yuan. Huike 11th generation LCD panel project will produce 65-150 inch Large size 4K, 8K LCD panel, filling the gap in Zhengzhou Province in the new display industry.
Zhengzhou will focus on industrial projects such as optoelectronic display and integrated circuits. In addition to the 11th generation LCD panel project with a total investment of 40 billion yuan, the 5th generation LCD panel project of Huarui Optoelectronics with a total investment of 4 billion yuan is also concerned.
Henan Huarui Optoelectronic Industry Co., Ltd. industrial and commercial registration information shows that the company was incorporated in October 2017 with a registered capital of 1.2 billion yuan.
Huarui Optoelectronics said in the recruitment information that the company is a state-owned holding company and is the first LCD panel manufacturer in Henan Province. It mainly produces small and medium-sized liquid crystal display devices. The factory is located in Zhengzhou Aviation Economic Comprehensive Experimental Zone, which is a research and development, manufacturing. , sales as one of the high-tech enterprises, is the first 5th generation TFT-LCD production line and CF production line in Henan Province.
The project covers an area of about 330,000 square meters (500 acres). The products are mainly used in mobile phone display, vehicle display, industrial control instrument display, etc. The company will introduce the LG fifth-generation TFT LCD panel production line in the first phase of the company, with an annual output. 1.2 million pairs of large-plate glass (1000mm* 1200mm), can produce 100 million pieces (5 inches) of liquid crystal display panels, expected production value reached 30 billion in 2018. The second phase of planning will achieve higher-end flexible display technology.
Among the shareholders of Huarui Optoelectronics, in addition to Zhengzhou Guokong Industrial Development Investment Co., Ltd., which is the same as Zhengzhou Huike, Henan Xinggang Rongchuang Venture Capital Development Fund (Limited Partnership), Henan Modern Service Industry Investment Fund Co., Ltd. Zhengzhou Bailifeng Technology Co., Ltd., Sichuan Huajing Optoelectronics Technology Co., Ltd., Henan Lejing Enterprise Management Center (Limited Partnership) appeared.
5. Foxconn reduced the size of the US Wisconsin project and the factory was downgraded;
Taiwan media reported on the 6th, according to relevant industry sources, Foxconn Electronics plans to reduce the size of the original project, will be prepared to build a 10.5-generation LCD panel factory in Wisconsin to reduce the plan to build a 6-generation production line.
The source said that the main reasons for the adjustment of the investment project include: The total investment of the 10.5 generation line is too large, and the return is not available in the short term. The new capacity of China's 10.5 generation line is expected to affect the global display industry, which will ultimately affect its price and profit.
However, the source said that in addition to the investment cost, the construction of a 6-generation production line will allow Foxconn to manufacture more application displays for the automotive, mobile and medical equipment sectors, in order to reduce investment risks through increased sales of goods sold.
The planned 6-generation production line will also enable Foxconn to use its own advantages to provide small and medium-sized displays for Apple. The source added that Foxconn may also set up assembly lines at the Wisconsin facility in the US to produce iPhones.
Consistent with the shrinking investment in Wisconsin, the source also said that the Foxconn Group also decided to cancel the plan to divest the liquid crystal panel subsidiary 'Innolux'. And the company is in the process of restructuring its entire display business group management team. To avoid the increasingly fierce competition from Chinese competitors.
Under the new arrangement, former Zhichuang Optoelectronics Chairman Jyh-chau Wang has been assigned to work with Japan's Sakai Display Products (SDP) President Hideo Taniguchi to oversee the group's 10.5 generation line in Guangzhou, China. Construction, the project will begin mass production in 2019.
At the same time, Chin-lung Ting, executive vice president of Innolux, and the director of SDP are working together to promote investment projects in Wisconsin.
Foxconn has not responded at this time. Global Times