Top 10 IC Design Companies in China in 2019: Except for HiSilicon, who is the first?

On the morning of November 21, ICCAD 2019, a grand event for the integrated circuit industry, was held in Nanjing. Professor Wei Shaojun, Chairman of IC Design Branch of China semiconductor Industry Association and Director of the Institute of Microelectronics of Tsinghua University, gave a speech entitled “Continuously Creating Value for Customers” at the meeting, analyzed the current situation of the global and domestic semiconductor industry, and announced the 2019 Forecast of the revenue data of China’s top ten chip design manufacturers (Hong Kong, Macao and Taiwan regions are not counted).

Top 10 IC Design Companies in China in 2019: Except for HiSilicon, who is the first?

As in the past, Professor Wei Shaojun still withheld the names of the top ten domestic chip design companies this time, but only showed the forecast data for his 2019 revenue, and announced the regional distribution of the top ten chip design companies. .

From Professor Wei’s report, we can see that the total sales of the top ten chip companies in China is 155.80 billion yuan, accounting for 50.1% of the industry scale of the entire industry, an increase of 9.9 percentage points from 40.21% last year. The biggest improvement in recent years. The growth rate of the top ten design companies is as high as 46.6%.

In terms of geographical distribution, there are 3 in the Pearl River Delta, 4 in the Yangtze River Delta, and 3 in the Beijing-Tianjin-Bohai Rim region. Compared with the threshold of 3 billion yuan last year, the threshold for entering the list of the top 10 chip design companies this year has been greatly increased to 4.8 billion yuan, an increase of 1.8 billion yuan over last year.

Although Professor Wei has not announced the specific list of the top ten chip design companies, even so, we can still guess through the relevant data analysis.

Top 10 IC Design Companies in China in 2019: Except for HiSilicon, who is the first?

First place: Huawei HiSilicon, up 68% year-on-year

First of all, there is no doubt that the number one is Huawei HiSilicon, with an estimated sales of 84.27 billion yuan this year. Especially compared with the data in 2018, benefiting from Huawei’s strategy of “returning the spare tire to positive” this year, HiSilicon’s sales increased significantly by 34.152 billion yuan compared with last year (50.118 billion yuan), a year-on-year growth rate of 68%.

Second place: Weir Shares (Howe Technology)

So who is the second? Some say it’s Bitmain. But Bitmain is not a pure chip design company, because its revenue mainly comes from the sales of mining machines. Bitmain’s prospectus shows that more than 95% of its revenue comes from the sales of mining machines.

According to Bitmain’s previous prospectus, in the first half of 2018, Bitmain’s revenue was US$2.845 billion (approximately RMB 20 billion). In addition, according to the latest data released by Bitmain, in Q1 2019, Bitmain’s total revenue was US$1.082 billion (about 7.6 billion yuan). Obviously, according to this estimate, if nothing else, Bitmain’s annual revenue in 2019 should be close to 30 billion yuan, obviously not on this list.

Even if the revenue generated by the chips designed by Bitmain itself is taken out, the revenue is far more than the second-ranked 12 billion. In Bitmain’s prospectus, the cost of ASIC chips accounts for about 80% of the total manufacturing cost of mining machines, which means that the revenue from its ASIC chips may exceed 20 billion.

So, who will be No. 2 this year? It may be the Weir shares after the acquisition of Beijing Haowei.

Beijing OmniVision Technology was formerly known as OmniVision Technologies, Inc., a well-known American semiconductor company established in 1995. OmniVision is a leading provider of digital imaging solutions, mainly designing and selling high-performance semiconductor image sensors. Together with Japan’s Sony and South Korea’s Samsung, it is known as the world’s three leading image sensor suppliers. OmniVision’s global mobile phone, automobile and security CIS market shares are the third, second and first in the world respectively.

In May 2015, OmniVision was acquired by a consortium consisting of CITIC Capital, Beijing Qingxin Huachuang and Jinshi Investment for US$1.9 billion, and finally completed its privatization in early 2016, becoming a wholly-owned subsidiary of Beijing OmniVision.

In May 2018, Weil shares announced the acquisition of 15.3 billion yuan of target assets such as Howe Technology. On May 6 this year, the China Securities Regulatory Commission conditionally approved the acquisition of Weir shares for Beijing Haowei and other target assets.

According to OmniVision’s financial audit report, OmniVision’s revenue in 2018 was about 8.71 billion yuan.

Top 10 IC Design Companies in China in 2019: Except for HiSilicon, who is the first?

According to Weil’s financial report, in 2018, Weil’s revenue was 3.964 billion. In the first half of 2019, Weil’s revenue was 1.55 billion yuan. Compared with last year’s data, Weil’s revenue in the first half of this year fell by 18.25% year-on-year.

Assuming that Weil’s revenue in the second half of the year is the same as the first half, the annual revenue will be around 3.1 billion yuan. Even if OmniVision’s revenue this year is the same as last year’s 8.7 billion yuan, then after the consolidation, the annual revenue will be around 3.1 billion yuan. Up to 11.8 billion yuan.

According to the 2019 third quarterly report of Weir Shares, after the consolidation of Beijing Howe, the revenue of Weil Shares in the first three quarters was 9.4 billion. On average, the revenue in a single quarter is about 3.1 billion. Based on this estimate, after adding Howe Technology, Will’s revenue this year is expected to reach 12.5 billion. And this data is also the closest to the 12 billion revenue data of the second place on Professor Wei’s list.

So will Professor Wei’s list of the top ten chip design manufacturers still count Beijing Haowei instead of the merged Weir shares?

Xinzhixun believes that Beijing Howe has been acquired by Weir Shares, and it has also achieved financial consolidation, so from a statistical point of view, it should be calculated based on the revenue of the entire Weir Shares (actually, as mentioned above). As the data shows, Coway’s revenue accounts for the majority of Vail’s revenue).

In addition, there is another piece of evidence here, that is, compared with last year, among the top ten companies this year, one more company belongs to the Yangtze River Delta compared with last year, while one less in the Beijing-Tianjin-Hebei region. The headquarters of Beijing OmniVision is in Beijing, and the headquarters of Weir is in Shanghai. After Beijing OmniVision was acquired by Weir, the headquarters naturally returned to Shanghai. This has also directly resulted in the addition of one of the top ten manufacturers in Shanghai (Will shares were not previously classified as chip design manufacturers, nor on the list), while Beijing decreased by one.

Who will be third?

Some people say that it may be Nexperia, and according to its past revenue analysis, its revenue this year may indeed be around 11.3 billion yuan.

Nexperia was formerly the NXP Semiconductors Standard Products Division. On June 14, 2016, it was wholly acquired by JAC Capital for US$2.75 billion. In addition to the design department, the transaction also included NXP’s locations in the UK and Germany. Two wafer fabrication plants and three packaging and testing plants in China, Malaysia, and the Philippines, as well as NXP’s Industrial Technology Equipment Center in the Netherlands, and all related patents and technical reserves for the standard product business. After being acquired, Nexperia focuses on the production and sales of discrete devices, logic devices and MOSFETs. The transaction was officially completed in 2017. In 2018, Wingtech Technology officially acquired Nexperia, and the relevant delivery is now nearing completion.

According to official information, Nexperia’s sales in 2017 reached 1.4 billion US dollars, or about 9.72 billion yuan. According to the previously announced “two years (after independence from NXP in 2016) revenue increased by 35%”, that is to say, Nexperia’s revenue in 2018 should be about 1.35 times that of fiscal year 2016, or about 16.5 billion US dollars, or about 11.1 billion yuan. This data is also in line with the revenue data of the second place on the list of the top ten domestic chip design manufacturers announced by Professor Wei Shaojun last year.

So how is Anshi doing this year? Since Anshi’s products are mainly standard devices, it is relatively less affected by the industry downturn, and after being acquired by Wingtech, benefiting from the trend of “domestic substitution”, it is expected to maintain a good growth this year. Previously, Nexperia President Frans Scheper said: “Now as an independent company, we can pursue our own strategies and goals, and achieve higher goals. Therefore, we are on the way to become a $2 billion sales company by 2021. on the fast track.”

Therefore, Anshi’s revenue this year increased slightly from 11.1 billion to the 11.3 billion predicted by Professor Wei, which should be no problem at all.

However, Anshi is not a pure IC design company, but an IDM, which has its own design and production. Therefore, it should not be on Professor Wei’s list.

The problem is that there are not many domestic chip design manufacturers with a revenue of more than 10 billion. If An Shi is eliminated, who else might this third position be?

It may be Ziguang Zhanrui, because there has been no public official data on Ziguang Zhanrui’s revenue before. According to the data of many institutions, the revenue of Ziguang Zhanrui in 2018 will be 11 billion. But it’s not actually the case.

In 2018, Zhanrui’s revenue was only 7.33 billion. Can it grow to 8.5 billion this year?

As the second largest communication chip designer in mainland China after Huawei, UNISOC’s products have always been the focus of the industry.

In May of this year, Ziguang Zhanrui announced that it has started preparations for listing on the Science and Technology Innovation Board. It plans to complete the PreIPO round of financing and overall restructuring this year, and is expected to officially declare next year. According to the audit report of Dahua Certified Public Accountants, Ziguang Zhanrui achieved a revenue of 7.303 billion yuan and a net profit of 255 million yuan in 2018. This is also the first exposure of Zhanrui’s official data. Obviously, there is a huge gap between this data and the previous TrendForce data (the forecast is 11 billion), and there is a huge difference with the data of Professor Wei’s list last year. Last year, Professor Wei’s third place on the list was 10 billion, and the fourth place was 6.14 billion. .

Top 10 IC Design Companies in China in 2019: Except for HiSilicon, who is the first?

In order to go public smoothly, Zhanrui will definitely find a way to continue to increase its revenue. This year, Zhanrui has successively launched Huben T117, T310, T618, T710 and other distinctive mobile phone chips, and also launched Ivy 5882 (for TWS headphones) and Ivy 8910DM (the world’s first Cat. Networking chip platform), Ivy 5623 (third-generation Wi-Fi 5 chip platform) and other products. In addition, the commercial use of the 5G chip Ivy 510 is also continuing.

In general, Zhanrui’s revenue this year is likely to increase. If Professor Wei said that the top ten design companies on the list have an average growth rate of 46.6%, Zhanrui’s revenue is expected to grow. To 10.7 billion, close to the third on the list of 11.3 billion. However, according to the author’s observation, it is difficult for Zhanrui to achieve such a large growth this year.

So there are two possibilities here. One is that the third place on Professor Wei’s list with 11.3 billion yuan is UNISOC, because the data predicted by him is based on the wrong data of other analysis institutions (previously, many institutions predicted the 2018 exhibition Rui’s revenue exceeds 10 billion yuan). Another possibility is that the fourth place on Professor Wei’s list is Zhan Rui, whose revenue in 2019 is predicted to be 8.5 billion yuan. Xinzhixun is more inclined to the second possibility. But there is another question – who is the third with a revenue of 11.3 billion?

Fifth and sixth place: ZTE Microelectronics and Huada Semiconductor?

Judging from the list announced by Professor Wei, the fifth and sixth places have revenue of 7.7 billion and 7.6 billion respectively, and the manufacturers whose revenue may match this position are ZTE Microelectronics and Huada Semiconductor.

Data shows that ZTE Microelectronics’ revenue in 2017 may be around 7.5 billion yuan. In 2018, affected by the US ban for several months, there was a sharp decline. The 2018 mainland IC design company revenue ranking data previously released by TrendForce shows that ZTE Microelectronics’ revenue in 2018 was about 6.1 billion.

After more than a year of recovery and the trend of “domestic substitution” emerging this year, ZTE Microelectronics is indeed expected to see a substantial increase in revenue this year, surpassing 7.5 billion in 2017 and reaching fifth place on this year’s list. 7.7 billion in revenue is entirely possible.

Huada Semiconductor is a professional sub-group established by China Electronics Corporation (CEC) integrating its integrated circuit companies. It was established in Shanghai on May 8, 2014, specializing in integrated circuit design and related solutions. It occupies a large share in the fields of smart cards and security chips, smart card applications, analog circuits, and new displays.

According to data released by CCID Consulting, the revenue of Huada Semiconductor in 2017 was about 5.21 billion. According to TrendForce data, Huada Semiconductor’s revenue in 2018 was 6 billion. If Huada Semiconductor can grow by more than 26% this year, then its revenue is expected to reach about 7.6 billion.

However, since the figures of 7.7 billion and 7.6 billion are very close, it cannot be completely ruled out that Huada Semiconductor is in the fifth place and ZTE Microelectronics is in the sixth place.

Seventh place: Zhixinwei?

According to the data, Beijing Zhixin Microelectronics was established in 2010 with a registered capital of 5 billion yuan. It is a national high-tech enterprise and a key integrated circuit design enterprise within the national planning layout. Independent research and development of 76 chip series products in 5 categories of “security, main control, communication, radio frequency identification, and sensing”.

According to CCID Consulting’s data on the list of China’s top ten IC design companies in 2017, Zhixin Micro’s revenue in 2017 was about 4.49 billion yuan.

Top 10 IC Design Companies in China in 2019: Except for HiSilicon, who is the first?

At the third “Innosilicon Beijing” Zhongguancun IC Industry Forum Summit Forum in September this year, Professor Wei Shaojun published a PPT showing that Beijing Zhixin Microelectronics’ revenue in 2018 was 6 billion.

If Zhixinwei continues to grow this year (Professor Wei said that the growth rate of the top ten design companies on the list is as high as 46.6%), then its revenue will reach the seventh among the top ten chip design companies announced by Professor Wei. The 7.25 billion yuan in the name is still possible.

It needs to be pointed out here, however, in the picture above, Professor Wei Shaojun regards Bitmain as a Beijing integrated circuit design company, and the revenue contributed by it is 14.3 billion yuan. This may refer to the revenue contributed by Bitmain in Beijing in 2018. If it refers to the revenue of Bitmain’s chip design, the figure of 14.3 billion did not appear in the list of the top ten domestic chip design manufacturers in 2018 published by Professor Wei Shaojun.

Of course, there is another possibility, that is, Bitmain’s 14.3 billion is indeed the revenue of Bitmain’s chip design business according to Professor Wei’s statistics. Considering the sharp drop in bitcoin prices in the second half of last year, by the first half of this year It has maintained a relative position for a long time, which has led to a decline in Bitmain’s mining machine shipments this year, so Bitmain’s chip design business revenue may drop to 12 billion this year, and Professor Wei is also the first time Bitmain has joined Bitmain to the market. on this year’s list.

If this is the case, then the second place is Bitmain, then the third place is OmniVision (no longer including the revenue of the original business of Weil shares).

Eighth place: Goodix Technology

According to the financial report of Goodix Technology, in the first three quarters of 2019, the company achieved a total operating income of 4.68 billion, a year-on-year increase of 97.8%; net profit attributable to the parent was 1.71 billion, a year-on-year increase of 437.2%.

If a rough estimate is made based on the existing single-quarter average revenue contribution of 1.56 billion yuan, the annual revenue of Huiding Technology in 2019 is expected to exceed 6.24 billion yuan.

However, it needs to be considered that Goodix’s customers are mainly mobile phone customers, and the fourth quarter is usually the peak season for consumer electronics products such as mobile phones. Therefore, Goodix’s revenue in 2019 may reach Professor Wei’s top ten chips. The eighth place on the list of manufacturers has a revenue of 6.6 billion.

Not on the list of well-known chip design companies

Since the tenth place of the top ten chip design companies announced by Professor Wei Shaojun has a revenue of 4.8 billion, it also means that chip design manufacturers with annual revenue of less than 4.8 billion are not on the list. From the existing data, the following domestic well-known chip design companies are difficult to reach 4.8 billion in revenue this year.

GigaDevice: The revenue of GigaDevice in the first three quarters of this year was 2.204 billion yuan, a year-on-year increase of 28.04%.

Beijing Junzheng + Beijing Sicheng: At present, Beijing Junzheng’s acquisition of Beijing Sicheng (Sincheng Semiconductor) has been approved by the China Securities Regulatory Commission.

According to the financial report, Beijing Junzheng’s revenue in 2018 was 260 million yuan, and the revenue in the first three quarters of 2019 was 241 million yuan, a year-on-year increase of 50.12%. The operating income of Beijing Sicheng in the first three quarters of 2019 was approximately US$292.79 million, or approximately RMB 2.061 billion. If the fourth quarter is estimated based on the average of the first three quarters, the revenue of Beijing Junzheng’s merger with Beijing Sicheng will reach more than 3.1 billion in 2019. But it is impossible to reach the entry threshold of 4.8 billion.

It is worth noting that at the third “Innosilicon Beijing” Zhongguancun IC Industry Forum Summit Forum in September this year, the PPT published by Professor Wei Shaojun showed that Beijing Sicheng’s revenue in 2018 was 3 billion yuan. The tenth place of the top ten chip design companies announced by it in 2018 has a revenue of 3 billion yuan.

Perhaps Professor Wei has speculated based on this data, coupled with Beijing Junzheng’s revenue, that its overall revenue in 2019 can reach 4.8 billion? You know, Professor Wei wrote in the revenue forecast of the top ten chip design companies this year that “the growth rate of the top ten design companies is as high as 46.6%”.

If Beijing Sicheng is kicked out of this year’s list, who can fill it? And can it soar to 4.8 billion from last year’s revenue of less than 3 billion?

Gekewei: Previously, CCID Consulting’s data showed that Gekewei’s revenue in 2017 was 2.52 billion. TrendForce’s data predicted that Gekewei’s revenue in 2018 was 2.63 billion. On this basis, only an increase of 82.5% can reach the threshold of 4.8 billion yuan. But this is unlikely.

Zhongxing Microelectronics: According to the data of CCID Consulting, the revenue of Zhongxing Microelectronics in 2017 was 2.05 billion yuan. According to data released by Professor Wei Shaojun in September this year, the revenue of Zhongxing Microelectronics in 2018 was 2.4 billion yuan. This year, it is possible to increase by 100% to reach the problem of 4.8 billion yuan. Obviously, this is very unlikely.

Silan Micro: In the first three quarters of 2019, the operating income was 2.22 billion, a year-on-year increase of 0.5%. Full-year revenue may exceed 3.1 billion yuan.

Ziguang Guowei: In the first three quarters of 2019, Ziguang Guowei achieved operating income of 2.489 billion yuan, a year-on-year increase of 45.48%.

Montage Technology: In the first three quarters of 2019, Montage Technology achieved a total operating income of 1.38 billion, a year-on-year increase of 10.6%.

Jingchen shares (Jingchen Semiconductor): Jingchen shares of the Science and Technology Innovation Board achieved revenue of 1.706 billion yuan in the first three quarters of 2019, a year-on-year increase of 4.40%.

Rockchip: Rockchip, which had an IPO on the A-share main board last week, had a revenue of 1.271 billion yuan in 2018.

VeriSilicon: In the first half of 2019, the company achieved revenue of 608 million yuan.

Allwinner Technology: Operating income in the first three quarters of 2019 was 1.06 billion yuan, a year-on-year increase of 3.05%

Summarize:

Based on the existing public data and analysis of the financial reports of listed companies, the chip design companies in mainland China that can currently reach the threshold of 4.8 billion yuan are roughly as follows:

Beijing-Tianjin-Hebei: Bitmain (if it is regarded as a chip design company), Zhixinwei

Pearl River Delta: Huawei HiSilicon, ZTE Microelectronics, Goodix Technology

Yangtze River Delta: Weir shares (including OmniVision), UNISOC, Huada Semiconductor

Of course, it is not ruled out that there are still a few missing companies, and you are welcome to add them.

Finally, to say something offended, there is definitely a big discrepancy between the data on Professor Wei’s list and the actual situation. In addition, some data from many other research institutions are also very unreliable.

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