SHIELD: The US is "targeting" SMIC, and the company may switch to a single plant

According to MoneyDj, industry insiders expect that the third-quarter revenue of fingerprint recognition chip giant Shield will be better than the previous quarter. As for the fourth quarter, the production and delivery schedule and progress still need to be observed.

Lin Gongyi, operations director of SHIELD, believes that orders from Chinese and Korean customers have continued to pick up in the second half of the year, and the company's inventory is being gradually digested. However, the production capacity of wafer foundries has been tight recently. In addition, foreign media reported that the US Department of Commerce intends to "sanction" SMIC, and it is likely that subsequent production capacity will be even tighter.

Regarding the issue of "tight 8-inch production capacity", Lin Gongyi said that there is currently no sign or possibility of easing, and news of price increases has been heard in the market. In addition, SMIC has also been "targeted" by the United States. The company may transfer orders to manufacturers in Taiwan, or even Japan or other regions.

In addition, Lin Gongyi pointed out that Shield continues to develop large-area optical fingerprint recognition chips under the screen based on AI computing technology, and it is expected to send samples by the end of this year and start mass production as early as next year.

Regarding the composition of Shield's customers, Lin Gongyi said, "Except for Apple, Shield has already entered other mobile phone brands. This year, we hope that Chinese and Korean customers will account for nearly 50% of Shield's revenue, and we will do our best to diversify risks."

As for the impact of the Huawei ban, Lin Gongyi believes that Huawei's market share in the mobile phone market will probably be eaten up by OPPO and Xiaomi. OPPO has a relative advantage in the Chinese domestic market, while Xiaomi is ambitious in building an ecosystem. Of course, Samsung will have good gains in India.