In July 2021, Taijing Technology completed a net fundraising amount of 631 million yuan in private placement of shares. In June 2021, Jingsai Technology plans to list on the New Third Board Selected Layer, raising 256 million yuan for quartz crystal resonator production projects,

Cai Times News, in recent months, crystal oscillator manufacturers have frequently raised funds and expanded production. In July 2021, Taijing Technology 's private placement completed a net fundraising of 631 million yuan. In June 2021, Jingsai Technology plans to list on the New Third Board Selected Layer, raising 256 million yuan to be used for the quartz crystal resonator production project, etc. In May 2021, Jingtech (TXC), the world's third largest quartz crystal component manufacturer located in Taiwan, China, issued the fifth unsecured conversion of corporate bonds, with the total amount of funds raised no more than NT$31.2 billion in . In April 2021, the Huilun Crystal , a domestic quartz crystal component manufacturer, completed the issuance of shares to specific targets, with a net fundraising of 492 million yuan, which was used for the construction of quartz crystal component industrial production bases, etc. Behind the frequent fundraising and expansion of crystal oscillator manufacturers is that the crystal oscillator industry is in a high prosperity cycle.

On the supply side, the Crystal Oscillator AKM was scrapped in October last year due to the scrapping of all the production capacity of the burning house, and the newly built production capacity will not be put into production until the end of 2021. At the end of June, Malaysia announced an indefinite "closure" to intensify the imbalance of supply and demand for crystal oscillators. Overseas crystal oscillators temporarily suspend production due to the need for epidemic prevention. In addition, global freight channels are blocked, resulting in the extension of the delivery cycle of some models of products to intensify supply tightness.

On the demand side, the COVID-19 epidemic has hit the global economy hard, but it has increased the demand for crystal oscillators. On the one hand, the demand for epidemic prevention and control equipment such as infrared thermometer , electrocardiometer, blood oxygen saturation meter, glucose meter , blood pressure meter , and blood pressure meter has surged; on the other hand, the home learning/office model has driven the best-selling of TWS headphones, PC devices, 5G mobile phones, and small appliances, all of which are inseparable from crystal oscillator devices. The new energy vehicle industry is booming and has also expanded the demand for automotive-grade crystal oscillators. According to China Industrial Information Network data, the global demand for crystal oscillators in 2020 is 175.5 billion, and is expected to grow to 312.5 billion by 2025, with a CAGR of 12.2% from 2020 to 2025.

A well-known brand Crystal Oscillator new single schedule has reached the second half of 2022. A well-known domestic crystal oscillator manufacturer accepted a survey by an institution and said that the downstream consumer market has strong demand for crystal oscillators and the market growth continues. At present, the production capacity cannot keep up with strong demand, and high-end crystal oscillator products are in short supply. Under the conditions of limited qualified suppliers, the price of crystal oscillator remains upward.

Because Japanese crystal oscillator manufacturers are more conservative and have poor financial resources, they basically do not expand production and gradually withdraw from the mid- and low-end markets; Taiwanese manufacturers mainly expand small-size high-frequency products; mainland Chinese manufacturers Taijing Technology and Huilun crystals are expanding production faster, but due to their low share, they have limited contribution to the overall increment.

Based on this, Western Securities judges that the growth rate of global crystal oscillator demand will be significantly higher than that of supply in the next three years, and small and high-frequency crystal oscillators will be in short supply. Based on the fact that the crystal oscillator industry is expected to maintain a high prosperity in the next 3-5 years, coupled with the acceleration of domestic substitution process, domestic crystal oscillator manufacturers have certain growth potential, Western Securities has given the industry a "over-equipment" rating, and it is recommended to focus on Taijing Technology.

Under the trend of small and high frequency, the core advantages of domestic crystal oscillator Taijing Technology are highlighted, and the integration of the entire product line + MEMS lithography process + core KHz products + equipment and materials is built to build a core competitive barrier.

is the core barrier of lithography technology. Currently, four companies around the world have the ability to produce a complete set of MEMS lithography technology, namely Japanese Epson , NDK, KDS and domestic Taijing Technology. With the official commercialization of 5G, the demand for miniaturized and high-frequency crystal oscillators has increased significantly. The core lies in high-frequency chips, and the core of high-frequency chips lies in MEMS lithography process.

In the core barrier of core KHz products, KHz product structure is relatively complex, has a high process barrier, and is protected by patents. There are few manufacturers in the world that can supply KHz products on a large scale. At present, only Taijing Technology has large-scale supply capabilities and has its own patents.

In the core barrier of equipment and materials integration, Taijing Technology can currently produce frequency modulators, cleaning machines, automatic sputtering machines, automatic dispensing machines, , automatic seam welding machines and other equipment. Among them, the core equipment frequency modulators have been developed to the 8th generation and exported to Japan. In addition, Taijing Technology has achieved the self-production and use of traditional DIP packaging materials.The integration of upstream equipment and materials helps reduce costs and boost profitability.

Western Securities believes that Taijing Technology is expected to accelerate its share of crystal oscillator market in the future with its cost, product, technology and customer advantages, and will have certain growth potential in the next 3-5 years.