GigaDevice releases interim report showing 100% increase in net profit in the first half of the year

China's integrated circuit industry performed well in the first half of 2017 and maintained rapid growth. Among them, Beijing GigaDevice Technology Co., Ltd. (hereinafter referred to as "GigaDevice") not only saw a sharp increase in revenue and profits, but also made good progress in its product line. In the first half of this year, GigaDevice launched the ultra-low power consumption NORFlash product for the Internet of Things (IoT) market; the widely applicable 1.65V~3.6V wide power supply voltage NORFlash product was put into mass production; the high-speed transmission rate NORFlash suitable for the automotive and high-performance markets and supporting the DDR interface was successfully developed and put into mass production; at the same time, the research and development of high-capacity products was increased, and the self-developed SLC NAND Flash was put into mass production. On

August 27, GigaDevice released its 2017 first-half financial report, which showed that the operating income in the first half of the year was 939 million yuan, a year-on-year increase of 43.29%; the net profit attributable to shareholders of the listed company was 179 million yuan, a year-on-year increase of 99.59%, and the average net profit growth rate of the semiconductor and component industry was 26.22%.

During the reporting period, GigaDevice continued to promote advanced process technology. NORFlash steadily promoted the development of 45nm NORFlash products, maintaining the industry's leading position in NORFlash technology, and making technical reserves for the company's market expansion and product competitiveness in high-capacity products; NAND Flash debugged and optimized 24nm technology products on the basis of the original mass-produced products and made significant progress, making technical reserves for the subsequent launch of high-capacity and feature-rich NAND product lines.

In terms of MCU product series, GigaDevice continues to build the competitiveness of its MCU product line, increase market share, and strengthen the coverage of products in various levels of application. In the first half of the year, GigaDevice successively launched the GD32F403 series of high-performance basic microcontrollers based on the 168MHz Cortex®-M4 core, providing a cost-effective choice for advanced computing needs with balanced system resources and peripheral configurations; launched multiple series of super-value microcontrollers with a main frequency of 108MHz GD32F330/350; launched the FPR series of dedicated MCUs for fingerprint recognition, which can provide a safe, high-speed and cost-effective hardware development platform for fingerprint recognition systems.

The interim report pointed out that GigaDevice increased its R&D investment in the first half of the year, enriched the above-mentioned product lines, adapted to market application needs, and optimized supply chain management to actively respond to capacity constraints. In the first half of this year, the global semiconductor industry supply chain capacity was tight, while demand increased significantly, and the market was in short supply. Relying on the good cooperative relationship accumulated over many years with outsourced manufacturers, GigaDevice optimized supply chain management, allocated the production capacity of each supplier, and strengthened the production and sales connection of each link in the supply chain, targeting new products, new application development, new technologies and new processes, reducing costs, improving yields, and maintaining stable supply. The

interim report disclosed that GigaDevice's operation management adheres to the market-oriented and international route, and its product R&D, operation and sales areas are directly facing the world. Customers include international first-tier manufacturers such as Intel, Samsung, and Canon, which provides good prospects for business expansion. At the same time, operations adhere to the market-oriented direction, products are customer-oriented, and products and operations are closely defined around customers' current and future potential needs.

At present, GigaDevice is the leading flash memory chip design company in mainland China. According to data from the China Semiconductor Industry Association, since 2012, GigaDevice has been the largest local code-based flash memory chip design company in mainland China, and also the largest serial NOR Flash design company; according to TrendForce data, in 2016 GigaDevice NorFlash's global operating revenue market share was 7%, ranking fifth in the world.

Source: Jiwei.com