Electronic enthusiast.com reported (Wen / huangjingjing) the first batch of over 100 million yuan chip companies have been listed, and others are on the way. Such a large number of over 100 million yuan chip companies represent the backbone of domestic chips.
At the end of 2021, China Semiconductor Association released the latest industry data. In 2021, it is estimated that 413 enterprises will have sales of more than 100million yuan, 124 more than 289 last year, an increase of 42.9%. In 2021, the number of domestic chip design enterprises has increased by 592 from 2218 last year to 2810, a year-on-year increase of 26.7%.
In other words, only 15% of IC design companies have a revenue of more than 100 million yuan. If you are one of them, congratulations on beating 85% of your competitors.
The revenue exceeds 100million yuan, which is a landmark indicator for IC design companies
From the above figure, we can see that the proportion of IC design companies with a revenue of more than 100million yuan is not high. It can be said that they are all industry leaders.
Although the proportion of their number is not high, the total sales of these 413 enterprises with sales of more than 100 million yuan reached 328.83 billion yuan, an increase of 23.79 billion yuan over the previous year’s 305.04 billion yuan, accounting for 71.7% of the total sales of the whole industry. The overall sales of China’s chip design industry in 2021 is expected to be 458.69 billion yuan, an increase of 20.1% over the 381.94 billion yuan in 2020, and the growth rate is lower than 23.8% last year.
In other words, the vast majority of sales in the whole industry are created by these more than 400 enterprises. They are the absolute backbone of the entire IC design industry.
From the perspective of our cities, the highlight of 2021 is that the number of enterprises with sales of more than 100 million yuan has changed from Beijing (33) to Nanjing (52) last year. Nanjing has become a dark horse of billions of IC design companies. In addition, Shenzhen still ranks second with 50, and Wuxi ranks third with 42.
Another symbolic significance lies in listing. According to the standards for applying for listing on the science and technology innovation board, in terms of revenue, 100 million yuan is a threshold.
One of the listing criteria of the sci tech innovation board is: “the estimated market value is not less than RMB 1billion, the net profit in the last two years is positive and the cumulative net profit is not less than RMB 50million, or the estimated market value is not less than RMB 1billion, the net profit in the last year is positive and the operating income is not less than RMB 100million”.
Basic information of chip companies with revenues of more than 100 million
We can see it from the public prospectus of the chip company. Here, we select sirip, an analog chip, and micro semiconductors in MCU enterprises.
In 2017, sirip achieved a revenue of 100million yuan, a net profit of over 5million yuan and only 92 employees. In 2019, its performance reached 300million yuan. China micro semiconductors also had a revenue of 175million yuan in 2018 and 370million yuan in 2020. Compared with the revenue benchmark of 100million yuan, we can see that the revenue of these companies going to the capital market actually far exceeds 100million yuan.
From the perspective of gross profit margin, sirip achieved a new high of 59.14% in 2019, and the highest gross profit margin of China micro semiconductors in 2018 was 45.03%. At a good level.
In 2021, although there are 124 more enterprises exceeding RMB 100 million, if they just exceed the revenue of RMB 100 million, they may not have enough strength to land on the science and innovation board. In addition to ordinary revenue performance, for example, in terms of gross profit margin and R & D proportion, if the company is at a low level in the industry, it will also be questioned.
“Phoenix flying”, the first wave of chip companies with a revenue of more than 100 million have been listed one after another
On June 13, 2019, the scientific innovation board was officially launched. The chip companies that landed on the scientific innovation board in 2019-2021 were the first to eat crabs. It not only shows that they are the first enterprises with comprehensive strength in the chip industry, such as revenue, R & D, etc., but also have to say that they are lucky.
According to rough statistics, since the launch of the sci-tech innovation board, more than 20 IC design companies have been successfully listed, not counting discrete devices and IDM enterprises. For example, sirip, Xinpeng micro, Lexin technology, Jingchen, hengxuan, LanChi technology, Geke micro, etc. these companies themselves rank in the forefront of their respective fields and have high recognition. For example, Lexin’s WiFi MCU has achieved success in the field of Internet of things and home, and hengxuan’s Bluetooth SOC has achieved success in the field of TWS headphones.
At that time, another opportunity was that Huawei’s support in financing and supply chain from 2019 to 2020 helped domestic chip companies’ performance advance by leaps and bounds, such as sirip and canqin technology.
The reason why the first batch of chip companies listed on the stock market are lucky is that we should all note that from the end of 2021 to the beginning of 2022, there have been several cases of breaking on the first day of listing, and the enthusiasm of the outside world for the sci-tech innovation board is returning to rationality. Therefore, it may be a matter of great probability whether more chip stocks will break this year.
“The golden cicada comes out of its shell”,Unlisted chip companies with revenues of more than 100 million
According to statistics, more than 100 semiconductor companies have queued up for IPO since 2021. The author does not fully count more than 40 chip companies with revenues of more than 100 million but not yet listed. Among them, Yandong micro, xintianxia, Huizhi micro and Zhonggan micro have been listed for counseling, and huimang micro’s listing will be suspended after being accepted. Jerry technology, Jinghua micro, etc. have inquired. At the same time, some chip and discrete device enterprises have not started IPO although their revenue has exceeded 100 million.
From these enterprises, we can see that many of the analog, power, and MCU businesses have earned billions of dollars. In particular, MCU has reached 10 in the statistics; In addition, there are 7 power chip manufacturers.
Analog and MCU chip enterprises should be the enterprises with the most capital actions in the future. These two years will be very critical for these enterprises. Everyone needs higher revenue and a race against time.
“DPCA wags its tail”, and great integration is inevitable
There are more than 400 chip companies with revenues of more than 100 million. How will they go in the future? In my humble opinion:
First, companies with revenues of hundreds of millions will accelerate or complete the listing action;
Secondly, these companies that are in the leading position in the industry may be a path for companies with small revenue and characteristics to be acquired with capital support, strengthening their layout in the industry, and strengthening through investment or acquisition.
Moreover, in the past two years, some companies have reached 100million thanks to the rise in chip prices, but their costs have also risen due to the rise in the prices of upstream wafers. Some experts told the author that the scale of revenue exceeding 100 million seems large, but in fact, many enterprises with sales exceeding 100 million are also struggling with life and death. Therefore, the chip companies that have been sent to the billion yuan club by the price increase have a great challenge to continue to rise.
In addition, there are quite a few chip companies, reflecting the high industry popularity. The number and scale of these companies are quite large, but they are not strong. In particular, analog chip companies account for a high proportion, but they are small and scattered. For example, in MCU enterprises, we see that many companies have extended their product lines to the fields of sensors, power supplies and so on. That is to say, next, we urgently need to take the road of strong combination to form a head effect.