Jiji Micronet News, on December 27, Shanghai Richhan Microelectronics Co., Ltd. (securities abbreviation: Richhan Micro, stock code: 300613) held the fourth extraordinary general meeting of shareholders in 2021. This meeting reviewed and voted on the "Proposal on Overseas Investment Industrial Funds and Related Transactions".
Aijiwei participated in the shareholders' meeting as its institutional shareholder, voted in favor of the relevant proposals, and discussed the proposals and issues of investor concern such as company mergers and acquisitions, shortages and price increases, automotive electronics layout and product shipments. .
Industrial Fund prepares for mergers and acquisitions before major shareholders reduce their holdings "not related to listed companies"
On the 10th of this month, Richhan Micro announced that it planned to contribute 80 million yuan as a limited partner to participate in the investment in Jiangyin Hanlian Zhixin Equity Investment Partnership (limited partnership), with a fundraising target of RMB 1 billion, and the initial subscribed capital amount shall not be less than RMB 253 million. The partnership focuses on investing in the semiconductor industry segment and upstream and downstream projects in the semiconductor industry chain with visual chips as the core. Feng Xiaojun, the financial director of
, told Aijiwei that the partnership’s investment targets will focus on the IC design process and lay out areas that are relevant and synergistic with the company’s main business. "We hope to develop the product line more broadly horizontally." "In fact, vision chips are related to far more than professional security, intelligent hardware, and automotive electronics. We hope to invest in those with prospects."
said in the discussion after the meeting , Feng Xiaojun further stated that investing in industrial funds can also help companies better screen potential merger and acquisition targets. According to his introduction, the company's choice of M&A targets is more inclined to those with higher technical content, but such products often require high investment in the early stage. Through the advance layout of industrial funds, they can have a better understanding and grasp of the products and their customers, and have Conducive to possible subsequent mergers and acquisitions.
In the first half of the year, Fuhan Micro successfully acquired Mouxin Technology (Shanghai) Co., Ltd., whose main products are main processor chips for video surveillance back-end equipment (DVR, NVR, etc.), and the company's front-end products ISP and IPCSoC are used in the security field With a high degree of collaboration, the company's IPC SoC has formed a product matrix of more than 10 products.
It should be pointed out that according to Fulhan Micro’s announcement last month about signing a strategic cooperation agreement with the Jiangyin Municipal People’s Government, the Jiangyin Municipal Government will invest 300 million yuan to participate in the aforementioned semiconductor industry fund to be established. Aijiwei confirmed from Feng Xiaojun that Jiangyin Municipal Government will serve as a limited partner and invest 300 million yuan in the above-mentioned industrial fund.
In addition, Yunnan Langhan Enterprise Management Co., Ltd., a shareholder holding more than 5% of the company's shares, has recently reduced its holdings by more than 1% of the company's shares. Feng Xiaojun explained that the platform's reduction was mainly motivated by increasing income and tax considerations. There is no correlation between the company's investment actions and performance.
Production capacity continues to be tight. The commissioning of TSMC's new Nanjing production capacity will effectively alleviate
Currently, shortages and price increases are still the core issue of the semiconductor industry. Recently, there has been news that second-tier manufacturers such as United Microelectronics have launched a new wave of price increases in 2022. Fulhan Micro said in an institutional survey last month that the supply of the entire industry chain continues to be tight. From now on, the tight production capacity is gradually being eased and is expected to improve next year.
At the shareholders' meeting, Feng Xiaojun said frankly that the current production capacity of the company's various product lines is still tight, among which network camera chips are relatively tight, mainly due to the tight production capacity of foundries and the high-end packaging and testing process. Now the company is also using the means at the beginning of the year To ensure production capacity, such as paying a deposit in advance, using your own equipment, etc.
Feng Xiaojun said that the company’s current main direction is still to “grab” production capacity. According to him, the company's products are currently mainly produced in the 22nm/28nm process, and supply is still tight in the short term. The commissioning of new production capacity at TSMC's Nanjing factory next year is expected to alleviate the company's tight production capacity.
According to Li Qiang, secretary-general of the board of directors of Fullhan Micro, he revealed in the post-meeting discussion that given the long-term cooperative relationship with TSMC and the forecast disclosed by the latter, it is confident to obtain part of the new production capacity of the Nanjing factory. However, the specific start-up time of the factory has not yet been determined. " Some say it’s April, and some say it’s the second half of the year.” In addition to seeking production capacity from foundries,
is also taking various internal measures to deal with shortages.Regarding the current design peers in the industry who are transferring their products to higher processes due to capacity shortages, Fulhan Micro's senior deputy general manager Gao Houxin said that this process takes time, such as technical preparation, and the company is also actively preparing.
Regarding the foundry price increase, Feng Xiaojun said that it will not increase again next year. As for whether the price increase can be transmitted to downstream, it needs to be discussed on a case-by-case basis. For example, if the production capacity is particularly tight, it will definitely be transmitted. However, for some companies whose production capacity has just been saturated, there may be pressure to transmit it. Customers have driven away."
According to Fuhan Micro's statement at an investor relations event last month, the company will strictly control costs in many aspects. When the cost of raw materials rises, the company will communicate and fully negotiate with downstream customers. Market supply and demand and operating costs will appropriately adjust the prices of each product line to ensure stable gross profit margins.
Multiple products have passed automotive certification, and automotive electronics revenue is expected to account for 20%-30%
In recent years, automotive electronics has become the next blue ocean in the semiconductor industry, and many domestic IC design companies have begun to deploy. As one of the domestic leaders in visual chips, Richhan Micro started its automotive electronics layout in 2018 and established a dedicated automotive division.
company previously stated that a car is equipped with at least 4-6 cameras, that is, 4-6 ISP chips, and with the development of the Internet of Vehicles, new car-making forces even have more than a dozen cameras in one car, and the market every year There is a demand for about 100 million to 300 million units in the space, and the prospects for automotive electronic products are relatively optimistic. In terms of
products, according to Fuhan Micro's previous disclosure on the interactive platform, three automotive image processing chips, FH8322, FH8320, and FH8310, have passed AEC-Q100 automotive certification. Previously, the company's automotive ISP products have also passed AEC-Q100Grade2 certification.
Li Qiang revealed in the discussion after the meeting that the current supply of pre-installed automotive chips must also be concentrated on domestic manufacturers. They are supplied by BYD, Changan, and SAIC, mainly BYD, and the top twenty domestic tier1s. For ideal , Xiaopeng, Weilai and other new forces have not yet contacted.
However, in automotive electronics, a field with high technical barriers and huge profits, Richhan Micro faces many competitors. The company said that they mainly include domestic and foreign ISP manufacturers and some CIS manufacturers that integrate ISP, with overseas Most manufacturers.
Feng Xiaojun pointed out that the company’s main competitiveness lies in its deep experience in image processing chips for many years, among which analog camera chips are mainly used in automotive electronics. It has always been in the leading position in the country in terms of sales, has a reputation advantage, and has accumulated technology for many years, and can be faster. Better meet customer personalized requirements.
As more products are put on the car, Fulhanwei's automotive electronic products have gradually increased in volume. Feng Xiaojun said that compared with only small batch shipments last year, this year there are already batch plans. As of the first half of this year, automotive electronics has accounted for 10% of the company's revenue, and it is optimistic that it may reach 20%-30% in the future. (Proofreading/Qiqi)
