As the basis for the development of the Electronic information industry, the downstream demand for electronic components has expanded rapidly in recent years. The localization and replacement of electronic components has become an important topic that needs to be discussed urgently.
Benefiting from the influence of consumer electronics products in recent years, China’s demand for MCUs has increased, and domestic MCUs are currently the world’s first in terms of sales. When the recent historic opportunities meet, domestic MCU companies will seize and enhance their own. value output.
Three changes in the global semiconductor industry
Since the invention of integrated circuit technology in the 1950s, the development of integrated circuits has roughly undergone three industrial transfers, namely, the origin of the United States, the acceleration of Japan, and the mature and differentiated development of South Korea and Taiwan. The third production capacity transfer of the semiconductor industry is expected to land in China.
China also became the world’s largest consumer electronics producer and consumer in 2017. my country’s share in the global semiconductor consumption market has increased year by year. In 2017, semiconductor sales reached 131.5 billion US dollars, accounting for 31.9% of the global share.
With the changing international situation and the increasingly fierce competition in the development of science and technology in various countries, electronic components are becoming the focus of the game of great powers.
It has reached the first place in the world in terms of sales
The global MCU market experienced a three-year slowdown in growth from 2014 to 2016 and ushered in a recovery, especially after the major MCU manufacturers completed destocking in 2016, the growing procurement needs of downstream system integrators in 2017 drove the MCU industry to ship. Volume surged 22%.
The global MCU market will reach another peak in 2020, with sales reaching US$20.9 billion and sales exceeding 26.7 billion.
In August-September 2019, the MCU microcontroller unit in domestic chips has surpassed that of Korean companies and has occupied the first place in the world in terms of sales. This time, the domestic MCU occupies the first place in the world’s production, just as the industry is entering an inflection point.
From the market point of view, benefiting from the influence of consumer electronics products in recent years, China’s demand for MCUs has increased.
In recent years, driven by the Internet of Things and the automotive electronics industry, domestic MCUs have grown rapidly. The demand for MCUs in the Internet of Things in mainland China will increase, and the annual compound growth rate of the domestic MCU market will reach 11.7%. By 2020, the market size will exceed 50 billion yuan.
In the second half of 2019, the development of MCU in the IoT market will still proceed cautiously under the condition of primary, local system and fragmented applications, and will still explore and advance in the mode of “RF remote control + mobile APP”, while the The Internet of Things is still looking for market opportunities in the application system and environment of the private network, and the era of large-scale and wide-area Internet of Things has not yet arrived.
RISC-V adds a track for MCU
With the emergence of RISC-V, MCU products also have choices other than ARM architecture. For MCUs, RISC-V is a brand new market, and both international and local manufacturers are almost on the same starting line.
Since the financial crisis in 2008, the global economy has grown at a low rate and lacks new growth drivers. From 2008 to 2017, the compound growth rate of global GDP growth rate was only 2.14%, and China is also in a critical period of transformation of new and old kinetic energy.
With the launch of the Science and Technology Innovation Board, “high-end manufacturing”, which represents the future development direction of China’s economy, has begun to benefit, especially the semiconductor equipment and robotics industries, which are expected to become new drivers of my country’s economic growth.
Based on the minimalist, modular and scalable characteristics of RISC-V, it is possible to customize chips with low power consumption, small area, and personalization and differentiation at the same time, and applications in fragmented scenarios (IOT, AI) are promising.
Innovation and ecology are the keys for domestic MCU companies to become world-class, and RISC-V, as a brand-new ecology, provides suitable soil. At present, the investment of international companies in innovation and ecological construction has won first-mover advantages and ecological barriers, and occupied 72.6% of the domestic MCU market.
The MCU market shipments are expected to reach 38.2 billion in 2023. The massive demand in the domestic downstream market and the continued increase in demand for domestic MCUs have brought huge opportunities to domestic MCU companies.
A new entry for the development of the MCU market
·Automotive MCU market demand
With the continuous improvement of the degree of automobile intelligence and network connection, intelligent networked vehicles also have huge market potential, including driver assistance systems and intelligent networked vehicles in the short term, and in the long run, the improvement of the level of automobile automation will use More semiconductor products.
Benefiting from the rising demand for automotive application trends, the global automotive MCU market scale has grown significantly from 2017 to 2018. In the future, with the development of various automotive applications, including ADAS, self-driving, in-vehicle telematics, and Internet of Vehicles, automotive Using MCU is an important requirement component.
Automotive MCUs are divided into 3 categories: 8-bit, 16-bit and 32-bit MCUs. Benefiting from the continuous increase in the functionality and complexity of automotive electronics, 32-bit MCUs are currently the mainstream, accounting for more than 70% of the total. , the average unit price is also three times that of 8-bit and 16-bit, and it has become the main project for automotive semiconductor manufacturers to develop automotive MCUs.
However, the current domestic automotive MCU market opportunities, although the strength of domestic automotive MCU manufacturers is still too weak compared with foreign countries, but the domestic market demand is strong, and foreign MCU manufacturers have problems such as insufficient localization operations, so domestic manufacturers still have opportunities.
AIoT market opportunities expand:
The global IoT MCU market is expected to reach $3.56 billion by 2022.
IoT boosts global GDP by 2035: $5 trillion per year.
Annual spending on IoT modules and data services is $1 trillion per year by 2035.
Cumulative spending on IoT connectivity modules between 2017 and 2035: $750 billion.
Number of IoT devices built between 2017 and 2035: 1 trillion.
New applications are driving the application development of MCUs in the IoT industry, and are also a very important growth area for MCUs. Communication connections and smart sensors in IoT applications are the main application forms.
Fragmented markets need to integrate unified IoT standards, or integrate standards of various technologies to meet different needs. This also provides new conditions and opportunities for the definition and innovation of new MCU products.
MCU integration of intelligent AI functions is now a major trend, because we see that there are more and more applications on the market today for AI interaction functions such as face recognition and voice. Different numbers and types of MCUs are used.
Development status of key companies in the industry
In 2019, Zhongying Electronics Co., Ltd., in the semi-annual report released by Zhongying Electronics, showed that the company’s current market share in small and large home appliance MCUs is about 20% and 10%, respectively.
Huada Semiconductor Co., Ltd.’s own MCU products were fully launched last year. It is expected to ship 30 million this year and 100 million next year.
From 2017 to the first half of 2019, the shipment of Smart Microelectronics 32-bit MCU has a compound annual growth rate of 400%. In the past six months, it is the largest MCU order customer of its wafer supplier, surpassing the order volume of foreign companies in Europe and the United States. In 2020, 300 million MCUs are expected to be put into production.
Shanghai Fudan Microelectronics Group occupies 60-70% of the market share of smart meters, and the number of tenders from the State Grid South Grid ranks first in the country.
The road of domestic MCU is destined to be uneven
In the case that the product performance is affirmed by the market, local products occupy a certain advantage in price. But at the same time, the gross profit margin of domestic MCU is not high.
This also makes some companies relying on low-end MCU products embark on the way of small profits but quick turnover. And this wave of opportunities in the Chinese market is also the invisible promoter of “the world’s first domestic MCU product sales”.
Numerous MCU companies are imprisoned at one level, which will inevitably lead to the intensification of homogeneous products, which is also not conducive to the development of the entire MCU market.
In the future, domestic MCU products will gradually change from low-end products to high-end products. Although, there are already a number of domestic manufacturers working on the development of high-end MCU products. But compared with international manufacturers, we still have a certain gap in market share.
China has become the main sales base for many international MCU manufacturers. And this is also the time when local manufacturers can grasp market trends as soon as possible.
In the process of development, domestic small and medium-sized MCU enterprises must identify their own positioning, take market demand as the first, refine their own business and adjust internal operations, continuously adjust and innovate products and services, improve products, and realize product standardization and standardization. And to ensure the stability of product quality.
In the past few years of China’s vigorous development of the semiconductor industry, MCU can also benefit from it as a part. At the same time, local manufacturers should also pay attention to the development of MCU peripheral products, establish a good product ecology, and establish good relations with upstream and downstream manufacturers. This is also an important factor for local MCU manufacturers in the future development process.