National Technology: The company has cooperated with Huawei on MCU chip products for TWS headphones

Recently, National Technology said in an institutional survey that the company has cooperated with Huawei on MCU chip products for TWS headphones. The company applied for relevant product sales licenses through compliance procedures and was approved after a long time. At the same time, the MCU chips supplied by the company to Huawei TWS headphones are general products with a wide range of applicable scenarios. TWS is not the only terminal product, and the company is still actively introducing them into more customer products.

Regarding production capacity, National Technology said that there is a serious shortage of chip production capacity in the world this year, and the market demand is indeed relatively strong. This year's sales are mainly limited by upstream production capacity. The company is currently also facing a capacity shortage problem and is continuing to actively follow up and coordinate.

It further stated that the company has different products with different processes at TSMC, Shanghai Huahong, and UMC, and the company and most of its competitors are facing the same shortage of production capacity. Due to the difficulty and long cycle of expansion of upstream foundries and packaging and testing plants, it is expected that this tight supply situation will continue for a certain period of time. MCU has a high degree of product dependence. After the release of production capacity in the future, the company believes that product performance is the decisive factor in maintaining customers and the market.

Affected by the supply situation, some models of National Technology's products will experience price fluctuations, but overall it is relatively mild. The company will moderately adjust its product prices based on market factors to keep the company's gross profit margin within a reasonable range. Currently, out-of-stock is a common situation in the industry. The company pays more attention to the long-term and hopes to establish a long-term friendly and mutually supportive strategic cooperative relationship with its partners.

In terms of customers, National Technology has made certain segmentation in the product field of MCU. The recognition of the company's technology and product quality by leading customers in key industries is certainly important and one of the company's work priorities, but MCU is applicable to a wide range of scenarios, and small and medium-sized customers are also an important target group of the company. The sales volume to large brand customers may not exceed the sales volume to small and medium-sized customers at present and in the future.

At present, in the MCU product market, international chip manufacturers' products account for the vast majority, and there are also a number of domestic chip companies selling MCU chips. National Technology said that the company chose this track mainly after comprehensively considering its own products and technical foundations as well as its R&D capabilities. Compared with competing products, it can be said that each has its own characteristics. The characteristics of the company's MCU products can be summarized as follows: wide product line and high coverage. The more than 80 models currently on sale and several product platforms that will be completed in the next two years will cover most of the application scenarios of 32-bit MCUs from low-end to high-end, better meet customers' different product needs; have the characteristics of low power consumption; some of the company's products use 40nm advanced process technology; with safe functional attributes.