SinoWing Electronics: AMOLED display driver chip production capacity is guaranteed, MCU business growth is limited

Recently, Zhongying Electronics stated in an institutional survey that the company's MCU products are mainly in 8-inch wafer fabs, which are the main affected areas of tight production capacity. Due to limited production capacity, the growth of MCUs is limited.

However, SinoWing has taken measures since last year to plan and deploy capacity expansion in advance, and actively respond to the tight capacity of upstream supply chains such as wafer fabs, packaging and testing plants. For example, it negotiated with wafer suppliers for closer long-term strategic cooperation; the company purchased its own testing equipment and outsourced it to foundry; the company's new products try to use 12-inch wafer processes, and old products with adequate economic benefits are also transferred to 12-inch wafer processes.

In the first quarter of this year, SinoWise's home appliance and motor control chips grew by about 13% year-on-year, lithium battery management chip sales grew more than double, and AMOLED display driver chip sales grew more than 3 times. Its display driver chips are currently mainly taped out in domestic wafer fabs, and since certain production capacity has been secured in advance, sales are expected to grow more than multiple times year-on-year.

Zhongying Electronics said that the unit price of AMOLED display driver chips in the original equipment market is definitely higher than that in the aftermarket, which is caused by the high requirements for product specifications and functions. The company's AMOLED display driver chips are highly competitive, and the process yield rate of domestic screen factories has improved significantly. With the expansion of the domestic market scale, it is expected to usher in more sales growth opportunities.

In terms of lithium battery management chips, Zhongying Electronics said that the performance growth of this product this year is mainly due to the good progress made in the domestic substitution of branded mobile phones and TWS headphones. The company's lithium battery management chip customers are mainly battery pack manufacturers, such as companies like Xinwanda. The technical barriers of lithium battery management chips are high, and the relevant technologies of automotive electronics are continuously prepared for a long time. In the long run, various product lines will also extend to automotive electronics technology.

At present, its lithium battery management chip uses 8-inch wafers, and new products will be developed using 12-inch wafer process. If it enters 90 nanometers, production capacity will be further expanded.

Zhongying Electronics said that the company currently has very few finished products in stock, and most of the products are sold, mainly semi-finished products. Most of the company's products have been raised in price since January 1, and a very small number of price increases have been delayed due to unsuccessful negotiations with customers, but they have reached a consensus with customers and will still be implemented retroactively. The extent of the price increase is related to the extent of the upstream supply chain increase and the market competition of the product itself.

Regarding IoT research and development, SinoWing Electronics said that the company's existing MCU+Bluetooth solution has been used in the medical field, and the WiFi technology currently being developed is mainly based on low power consumption, high compatibility, high reliability, and long transmission distance. The company's existing 32-bit MCU is mainly used in the field of variable frequency air conditioners and IoT applications. The variable frequency air conditioner solution has already been designed and introduced by customers and produced in small quantities.