Integrated circuits can generally be divided into two categories based on their functions: analog integrated circuits and digital integrated circuits. Analog integrated circuits mainly refer to the integration of analog circuits composed of capacitors, resistors, transistors, etc. between the real world and the physical world, used to generate, amplify, and process analog signals in the form of continuous functions; Digital integrated circuits are integrated circuits that perform arithmetic and logical operations on discrete digital signals.

Analog chips are an indispensable part of electronic systems. Compared with digital integrated circuits, analog integrated circuits have complex application fields, long lifecycle, long talent training time, and low but stable prices. Simulation chips can be widely used in consumer electronics, communication devices, industrial control, medical instruments, automotive electronics, as well as various emerging electronic product fields such as the Internet of Things, new energy, smart wearables, artificial intelligence, smart homes, intelligent manufacturing, 5G communication, etc.

Power management and signal chain chips are important components of analog chips. The general analog chip market includes three categories: signal chain, power management, and RF. Among them, the power management chip mainly refers to the circuit that manages batteries and electricity, including charging management chips, converter products, charging protection chips, wireless charging chips, driver chips, etc; Signal chain chips mainly refer to circuits used for processing signals, including linear products, converter products, interface products, etc.

According to Frost&Sullivan's data, the global analog chip industry market size reached 60.2 billion US dollars in 2021, and it is expected that the global analog chip market size will reach 70.1 billion US dollars in 2025, with an average compound annual growth rate of 3.9% from 2021 to 2025. In terms of the Chinese market, the market size in 2021 was approximately 273.1 billion yuan. With the trend of domestic substitution in the industry, it is expected that the annual compound growth rate will reach 5.2% in the future, and the market size will grow to 334 billion yuan by 2025.

For example, Shengbang Microelectronics (Beijing) Co., Ltd. focuses on the research and sales of high-performance and high-quality analog integrated circuits. It is currently the only semiconductor enterprise listed on the A-share market that focuses on analog chip design and has comprehensive product coverage in the fields of signal chain and power management.

According to the data, it has over 1000 high-performance analog IC products in 16 major series, including operational amplifiers, comparators, audio/video amplifiers, analog-to-digital converters, analog switches, level conversion and interface chips, small logic chips, LDO, microprocessor power monitoring chips, DC/DC converters, backlight and flash LED drivers, OVP and load switches, motor drivers, MOSFET drivers, battery protection and charge discharge management chips, etc.

It is reported that the performance and quality of the company's products are benchmarking against similar products from world-class analog chip manufacturers, with some key performance indicators surpassing others. They are widely used in fields such as communication equipment, consumer electronics, industrial control, medical instruments, and automotive electronics, as well as emerging markets such as the Internet of Things, new energy sources, artificial intelligence, and 5G.

And Naxin Micro is also an integrated circuit design enterprise that focuses on the research and sales of high-performance and high reliability analog integrated circuits. Its products cover analog and mixed signal chips in the technical field, and currently can provide more than 600 product models for sale, widely used in fields such as information communication, industrial control, automotive electronics, and consumer electronics.

It is reported that with its strong automotive grade chip development capabilities and rich experience in mass production and quality control, it actively lays out chip products applied in the field of automotive electronics, and has successfully entered the mainstream domestic automotive supply chain and achieved batch loading. For example, the company has gained recognition from numerous industry leading benchmark customers, including customer A, ZTE, Huichuan Technology, Honeywell, Zhixin Micro, Sunshine Power, Hikvision, and Weir Corporation, and has already supplied in bulk. The automotive grade chips have been mass-produced in terminal manufacturers such as Dongfeng Motor, SAIC Maxus, BYD, Wuling Automobile, and Yunnei Power, and have also entered the supply system of terminal manufacturers such as SAIC Volkswagen, FAW Group, Great Wall Motors, United Automotive Electronics, CATL, and Sensata.

Unlike the two representative manufacturers mentioned above, Zhuosheng Microelectronics focuses on the research and sales of integrated circuits in the RF field. With excellent scientific research technology, high-quality products, and efficient and complete services, it has gradually developed into a chip design company with top-notch technical strength and strong market competitiveness in the field of RF devices and wireless connections, establishing a strong brand influence in the industry. At present, it has become a leading brand in domestic smartphone RF switches and RF low-noise amplifiers. The company's RF front-end chips are applied to the products of terminal manufacturers such as Samsung, Xiaomi, Huawei, Lenovo, Meizu, and TCL.

Due to limited space, we will not compare and analyze each one here. As shown in the table above, domestic analog chip listed companies are leading the way and will gradually become one of the strongest backers in the domestic and foreign semiconductor industry.

Opportunities and Trends for Domestic Simulation Chips

Due to late start, limited technology and production scale, the domestic analog chip market is currently dominated by overseas manufacturers. The top ten global analog chip manufacturers all come from overseas, with a total market share of 68% in 2021.

However, with the rapid growth of Chinese simulation chip design companies and the support of national industrial policies, the simulation chip design industry is showing a trend of shifting from overseas to domestic. On the one hand, in the consumer electronics market, due to the relatively low entry threshold, fierce competition, and low profit margins, large chip design companies in Europe and America are gradually fading out of this market and turning to markets with higher technical requirements and greater profit margins, such as industrial and automotive grade.

During this process, domestic chip design companies gradually seized market share in the consumer electronics market with relatively low price competitive advantages, and thus achieved import substitution. On the other hand, in high profit markets such as industrial and automotive grade, domestic chip design companies continuously improve their technological level, optimize and strengthen product performance, gradually reach the world's advanced level in specific segmented fields, and achieve import substitution of domestic products in competitive optimization.

Importantly, with the further development of downstream demand and the increasing refinement of electronic devices, the existing processes in wafer factories are becoming increasingly unable to meet the performance and functional requirements of analog chips. Therefore, self built process platforms, process based differentiation, and differentiated competition in technology, products, and markets will be the key for domestic simulation manufacturers to improve product competitiveness and profitability in the fierce competition.

Challenges in the Domestic Simulation Chip Market

However, in the international market, at present, the top ten simulation leading enterprises such as Texas Instruments, Adeno, NXP, Infineon, Sijiaxun, and STMicroelectronics have all built their own process platforms and have a relatively complete product line. The products they develop have strong market competitiveness and profit margins.

Looking back at the domestic market, most analog chip companies currently engage in homogeneous competition in traditional markets such as lighting, small appliances, network boxes, and televisions in the consumer electronics field, and the overall level of the industry is not high. In the future, in the context of domestic substitution, enterprises with outdated technology and products will gradually be eliminated in fierce industry competition.

Write at the end

As is well known, analog integrated circuits are an important branch of integrated circuits, characterized by multiple categories, wide applications, long lifecycle, long talent training time, and low prices. Due to its multiple functional subdivisions, the analog integrated circuit market is not easily affected by changes in the prosperity of a single industry, so its market size is showing a stable growth trend.

Furthermore, from the layout of domestic simulation manufacturers, it can be seen that even in the face of downward cycles, these manufacturers are continuously increasing their research and development investment. It can be expected that once the industry enters a comprehensive recovery, such manufacturers will be the first to usher in market and performance recovery.About The Author

This is reported by Top Components, a leading supplier of electronic components in the semiconductor industry. They are committed to providing customers around the world with the most necessary, outdated, licensed, and hard-to-find parts.

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Name: John Chen

Email: salesdept@topcomponents.ru