Demand for Internet of Things Drives Market Growth Domestic Enterprises Welcome to Three Parties

[Upstream and downstream of China's instrumentation network industry] In the context of continuous growth in the global semiconductor market in 2014, the growth of the global MCU market has accelerated. In 2014, the global MCU market sales revenue was 15.67 billion US dollars, a year-on-year increase of 5.5%.

In 2014, China's annual MCU market sales and market sales reached 10.24 billion and 28.23 billion yuan, respectively, an increase of 10.8% and 8.5% year-on-year respectively. The growth of China's MCU market has benefited from the continued growth of domestic market demand.

32-bit fastest growing SoC is a big trend With the rise of wearable devices and the Internet of Things, device designs have become thinner, lighter, and cheaper. Since the spread between 8-bit and 32-bit MCUs has narrowed down, the next eight applications will be less and less, plus 8-bit and 32-bit development platforms are different, and in the future, the smart home and App applications under the expanding demand, All 32-bit designs may be more cost-competitive. Current 32-bit MCUs have grown far faster than 8-bit and 16-bit MCUs. 32-bit MCUs have a global growth rate of more than 15%, and ARM-based 32-bit MCUs have grown at twice the rate.

Although there are many differences between the MCU and the sensor's process technology, it is difficult to achieve integration at present, but the SoC is a major trend in the industry development, especially for some relatively easy to implement sensor types, such as touch screen controllers, accelerometers, and gyroscopes. The integration of chips will occupy a clear advantage. Domestic and foreign manufacturers are expanding the application-specific standard product (ASSP) MCU or system-on-chip (SoC) lineup of MCU integrated front-end (AFE) solutions such as digital converters (ADCs) and operational amplifiers (OPAs) to optimize multiple sensor data. Connectivity, conversion, and computational processes accelerate the standard operation of the Internet of Things, from sensing to data conversion to real-time processing.

Internet of Things (IoT) demand has become the biggest driver of growth. The demand for the wearable market has increased rapidly, resulting in unlimited business opportunities for MCUs with low power consumption and high performance. It has attracted more and more chip manufacturers to actively invest in the design of wearable devices. Microcontroller solution. The eruption of the Internet of Things will become the first impetus for the future growth of MCU products.

Although the above-mentioned 32-bit products have the highest growth rate and have gradually replaced 8-bit MCUs in the market, 8-bit MCUs are easy to use and low in power consumption. Designers can use high-level code space when designing properly. Language, developed a series of innovative applications. Therefore, within a period of time in the future, 8-bit MCU can still occupy a place in various applications such as automotive, industrial, consumer electronics, and white goods.

As China's "Industry 4.0" strategy is proposed, the transformation and upgrading of domestic industries will accelerate, and the demand for MCU products in this area will continue to be released quickly. At present, the main applications of MCU in this field are still traditional applications such as industrial motor control. MCUs usually focus on the number of I/O ports and the size of the programmable memory interface, making them ideal for motor systems that need to support large numbers of I/O operations and functions. With the expansion of new motor functions and improved performance, such as vector control, spatial field orientation, coordinate decomposition, and PI regulation loops, etc., this has previously encountered performance bottlenecks and has been directly driven by 8/16-bit MCUs. The development of 32-bit high-performance MCU products.

The field of industrial control is a product area with a wide range of demands. It places very high requirements on the custom development and integration capabilities of MCU manufacturers. This aspect requires MCU manufacturers to provide more comprehensive MCU series products, and on the other hand, it also promotes MCUs. Manufacturers provide more comprehensive solutions in integrating front-end chips and back-end processing chips.

Domestic companies welcome three aspects of domestic IC companies to actively launch MCU products, the main considerations are the following:

First, the vast market space. As mentioned earlier, MCU products have a wide range of applications in industrial control, automotive electronics, network communications and many other applications, and the market is huge. If domestic IC companies hope to gain a place in the future semiconductor market, it will be inevitable that they will enter the MCU market in due course.

Second, the market share is relatively decentralized. There is no technology and the market is in an absolute monopoly position. It is less difficult for domestic companies to enter. Although the top ten companies currently occupying the market share are still foreign-funded enterprises, Renesas, which has the largest market share, only accounts for 16.9%. The top ten companies account for 80.9% of the overall market. Market competition is relatively sufficient, and the share is relatively dispersed. There is no enterprise that is in an absolutely dominant position. Domestic companies will face fierce competition when they enter the field, but they will not be suppressed by monopoly-level companies.

Third, the requirements of national information security. Due to the wide range of applications of MCU products, many of these areas involve national information security. Under the requirements of the country's promotion of information security strategies and integrated circuit products that are "independent and controllable," domestic MCU makers will gain access to a part of the blue ocean market, which will be a great advantage for domestic self-developed MCUs in their infancy.

The fierce competition and clear positioning are the key We have seen many domestic companies are actively launching MCU products, such as Zhaoyi Innovation, which previously focused on memory products, Huahong IC, which focuses on smart card chips, Shanghai Quanquan, which focuses on energy metering, and The MCU field has certain foundations such as China Resources Microelectronics. These companies have a weak foundation or weak foundation in the MCU field and will encounter a series of problems when they actively enter this field in response to market trends.

First of all, in the fields of high-end equipment manufacturing, automotive electronics, and network communications, the requirements for MCU products are relatively high. These areas are also the main battlefield for MCU vendors to compete. Customers in these areas have strict certification mechanisms for their products and the established partnerships are relatively stable. With current technical strength and product performance, domestic manufacturers will find it difficult to obtain substantial market share in these areas in the short term. In the low-end areas such as consumer electronics and instrumentation, domestic manufacturers will have the strength to compete with international first-tier manufacturers, but they may face the situation of foreign-capital companies in the low-end product price competition, and the ability to expand channels and capital for domestic companies. Strength will be a big test.

Secondly, currently the mainstream products of various MCU vendors are basically based on the development of the ARM core. It is difficult to open a big gap in terms of core parameters. The competition has expanded from a single MCU core to an application. Wizard solution competition. From the point of view of industrial integration in recent years, the industry's first-line manufacturers are actively expanding their product lines, including connection chips and front-end sensor chips, around the MCU core, through mergers and acquisitions and other means, in order to be able to provide customers with a full set of Complete solution. Domestic IC companies not only have weaker capabilities in the MCU field, but also do not have sufficient strength in other areas. Internal industry integration is difficult.

Based on this, it is recommended that Chinese domestic semiconductor companies should first clarify the technology and market development trends when entering the MCU market, determine the technical route and product positioning, based on the ARM core, focus on conquering 32-bit products; secondly, identify their own market positioning, identify In the subdivided areas, we will concentrate our efforts on improving products and solutions targeting specific segments. Finally, Chinese semiconductor companies should pay more attention to their channel construction and customer cooperation, and rely on their own localization advantages to gradually develop cooperation with downstream manufacturers. A stable partnership.

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