The golden age of the domestic analog IC industry is coming, and there is a lot of room for domestic alternatives

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In the world of chips, analog chips and digital chips have always been inseparable, and these two chip forms run through almost the entire industry. Analog chips are mainly used to process analog signals in the form of continuous functions, such as sound, light, temperature, etc. It belongs to the market segment of semiconductors, and analog chips are widely used, and the product applications involve industrial control, automotive electronics, network equipment, consumer electronics, mobile communications, smart home appliances and many other fields.

Analog chip products are widely used and the market growth rate is relatively stable

Global integrated circuit sales in 2018 were US$393.3 billion, an increase of 14.6% from US$343.2 billion in 2017. Benefiting from the rapid growth of the storage market, global integrated circuit sales achieved rapid growth in 2017 and 2018.

The golden age of the domestic analog IC industry is coming, and there is a lot of room for domestic alternatives

In terms of analog chips, the analog chip market has also maintained a relatively high growth rate due to the rising industry prosperity in the past two years. In 2018, global analog chip sales were US$58.8 billion, a year-on-year increase of 10.8%.

From the comparison between the sales growth rate of analog chips and the global integrated circuit sales growth rate in recent years, the sales growth rate of analog chips is relatively stable.

The main reason for the relatively stable growth rate of analog chips is the large variety of products and a wide range of downstream applications. The international analog chip giant Texas Instruments currently has more than 120,000 product categories, which are widely used in various Electronic products. Therefore, the overall fluctuation of the analog chip industry is relatively small, and the industry cycle is weak.

In 2015, affected by the decline in PC sales and the slowdown in the growth rate of smartphones, the global semiconductor market declined, resulting in a sharp decline in the growth rate of analog chip sales and integrated circuit sales. The sales of integrated circuits also experienced negative growth, but the growth rate of analog chips The decline is relatively small.

Benefiting from the rapid growth of the storage market in 2017, global integrated circuit sales achieved rapid growth, while the performance of analog chips was relatively stable.

The pain points of domestic analog chip companies

The design of analog chips is very difficult and has high technical barriers, especially for high-end analog chips. Any small breakthrough requires a lot of effort. Since the analog chip technology comes from the United States, many analog technology tutorials are based in the United States when I was a child, which leads to the lack of domestic technical system and core talents, and the shortage of domestic analog IC talents.

From the perspective of the global analog chip market, the foreign market is more mature and the industry is more complete, while the domestic analog chip companies start late and face huge challenges. For large enterprises, it is more reliable to choose foreign analog chips, and the brand awareness of domestic chips needs to be strengthened. Domestic analog chips are concentrated in the mid-to-low-end market, and the serious homogeneous competition has caused product price wars, which is not conducive to enterprise innovation and development. In addition to focusing on the low-end, domestic analog chips are also concentrated in consumer electronics, and there is still a lot of room for improvement in the industrial and automotive markets. This is also the main pain point faced by domestic analog chip companies.

If domestic analog IC companies want to make breakthroughs, it is important to strengthen their own training. The key to hindering the growth of the domestic analog IC industry is nothing more than patents and performance. If companies want to break the industrial ecology, let their products become the company’s preferred brand. We must innovate, and changing lanes to overtake is not an option. Let the product innovate in technology, and at the same time, the cost can be better than the top ten suppliers, and the patent, according to its own strength, break through the traditional design structure, obtain new basic patents, and maintain the core competitiveness of the enterprise. If the domestic analog chip industry wants to make greater progress, on the one hand, the state will continue to insist on supporting the chip industry; on the other hand, it is necessary to increase the training of analog IC talents. leading figure.

Domestic analog chip market structure

The domestic analog chip market is mainly occupied by international analog chip giants, of which TI ranks first with a market share of 13%. These five international giants together occupy 35% of the domestic analog chip market share.

Due to the late start and relatively backward technology of domestic analog chip companies, there is a large gap between the technology and the scale of the international giants. However, in recent years, with the rapid development of the domestic semiconductor industry, domestic analog chip companies have also begun to grow rapidly, gradually narrowing the gap with the international advanced level. After years of development and technology accumulation, a number of outstanding analog chip manufacturers have emerged in China, and the company’s popularity and market recognition are constantly improving.

In general, the domestic analog chip market has a large space, but the self-sufficiency rate is low, and the domestic substitution space is huge. In 2018, the domestic analog chip market sales reached 227.34 billion yuan, accounting for more than 50% of the global analog chip market. The huge domestic market has brought broad development space to local enterprises.

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