Trillion innovation, through mergers and acquisitions to improve memory business territory
Trillion innovation, through mergers and acquisitions to improve memory business territory
Trillion Yi innovation is China's largest code type flash memory chip design enterprise, is also the largest serial NORFlash design enterprise. The company has a global market share of NORFlash of 7%. 2013, the company's universal MCU chip samples successfully invest in the market, in 2014, 2015, MCU sales growth of up to 930%, respectively, 748%. Siu Yi company executives introduced, the company's products mainly include two series, three product lines, namely flash chip and microcontroller chip. Flash chips are mainly NORFlash and NANDFlash two categories. The company began to develop NORFlash, NANDFlash and MCU products in 2007, 2011 and 2013 respectively. Products are widely used in handheld mobile terminals, consumer electronics products, personal computers and other fields. In the NORFlash, because Samsung and micron global flash memory chip giant gradually fade out the NORFlash chip market, which has brought a historic opportunity for development for the Chinese chip design company. Companies seize the opportunity to develop, the global market share increased from 3% in 2012 to 7% in 2015, becoming the largest local NORFlash chip design enterprises. "The application of NORFlash in mobile phones and other new industries has enabled the market to scale up. As the international giants have withdrawn from the low-end NORFlash market, the company fully benefit from the current round of NORFlash market price surge." Siu Yi company executives introduced. Based on the NOR flash service, it is easy to innovate, and actively expands to the blue ocean fields such as NAND flash and 32 bit microcontroller chip based on the ARM kernel. Although the NANDFlash market in Samsung, Toshiba, Hynix, micron four oligopoly stage, but the company through competitive differentiation, has a certain market share in the serial NANDFlash and parallel NAND MCP small capacity, and other products in the field. In terms of MCU, the company, based on the Internet of things applications and vehicle networking requirements, launched based on the ARMCortex-M series of 32 bit universal MCU products. At present, Renesas, NXP, TI, ST and other overseas manufacturers in the international market dominant position, the company in parts of the field to get more opportunities, continue to introduce high-performance, ultra-low power MCU products. In 2016, the company's MCU product sales revenue reached 197 million yuan, an increase of 55.20%, and the momentum of development is swift and violent. According to reports, the domestic market there are 200 billion U. s.dollars of chip import substitution space. Under the policy support, the domestic chip company obtains the good development environment. Smart hardware, industry 4, smart home and other Internet of things, the rapid development of the market, the demand for memory, MCU, communications, sensors and other chips explosive growth. China Merchants Securities analyst believes that trillion Yi innovation will benefit from long-term national support for the semiconductor industry and industry trends to the mainland China market. Process upgrading and product cost decline, to promote the company's gross profit margin continued to improve, will consolidate the company's NORFlash advantage, and add new growth points such as NAND and MCU. According to the semiconductor industry association (SIA) report released in April this year, the global semiconductor market sales reached 31 billion 300 million U. s.dollars, an increase of 20.9%, the highest since September 2010, an increase of year-on-year. The personage inside course of study expects, 2017 global semiconductor market sales is expected to rise by 11.5%. As the low base in the first half of 2016 and the continued increase in memory in the first half of this year, global semiconductor sales rose 20.9% year on year in April, the highest in nearly 7 years. From the breakdown of the field, memory accounts for 22%-25% of semiconductor sales, the first quarter of this year, memory prices rose more than 50%. Global semiconductor industry boom continued upward, in 2016 -2020, China's local IC manufacturing output will grow at 20% compound growth rate. Trillion Yi innovation benefits from the memory of repeated price increases, a quarterly performance growth rapidly. The company's first quarter revenue of 452 million yuan, an increase of 46.61%; net profit of 69 million yuan, an increase of 94.20%, after deduction of non growth of 79.88%. Haitong Securities analyst Chen Ping believes that the benefit of NORFlash prices and new products peatlands, the company's first quarter results brisk, EMMC and SPINAND shipments have increased. Among them, EMMC uses outsourcing Toshiba NAND, the company since the research Controller way. According to market research firm HIS data, the first quarter of the NORFlash industry average price increase of 15%-25%, in the production capacity increase based on volume and price rise. China Merchants Securities Research Report that NORFlash, the reason mainly from three aspects: new wafer production capacity is limited, Cypress off the production line, and micron to exit the NORFlash business, increased capacity tension; AMOLED panel, TDDI, networking and other outbreaks, driven by NORFlash increased demand; enhance market concentration. Trillion Yi company executives said that from the second half of last year, the storage industry chip price surge will continue. According to the relevant forecast, this round of price increases will continue until the end of 2017, there will be higher gains throughout the year. Executives described above, from the client situation, the demand for products blowout; from the supply side, the wafer factory production capacity is relatively fixed, while raw material prices. Li Hong said that in recent years Chinese vigorously development of the integrated circuit industry, vigorously support the policy, the integrated circuit industry ushered in the good opportunities for development, the future IC industry will continue to flourish. June 10th, trillion innovation announcement said, the Commission on the company submitted 6 billion 500 million yuan acquisition of Beijing silicon 100% stake in the application documents, made a review feedback. Which mainly involves: ponled innovation only listed in a month after the suspension of the reorganization plan, the existence of start of the reorganization of the problem in the prior to listing; counterparty performance commitments compensation problem, and on the subject of the transaction problems etc.. Analysts believe that the acquisition will help the company to complete the Beijing silicon memory layout, build memory business with global influence. ISSI, a silicon operating entity in Beijing, is globally competitive in the SRAM and DRAM fields. In the first half of 2016, ISSI's SRAM products ranked second in the global market, second only to Cypress, and DRAM products ranked eighth in the global market. At the same time, ISSI has a number of quality customers in the automotive, industrial and other fields. Trillion innovation executives said, ISSI technology and products for the domestic market is unique, not much in the world, with a higher threshold. Through the acquisition of Beijing silicon into, you can improve the company's four major categories of products in the storage industry line. At present, ISSI products are sold very little in the domestic market, and the market expansion is great. At the same time, the application field can also be widened, from the original automotive, industrial fields extended to the consumer electronics field. Haitong Securities analyst believes that through acquisitions, ponled innovation will complement the memory business layout, into a "FLASH+DRAM" full set of storage system solutions provider, and will use ISSI to develop the new market of automotive electronic chip. After the acquisition of Beijing silicon, trillion Yi innovation will become China's largest automotive electronics chip company.
