Wuxi: Using the Internet of Things Industry to Realize the Transformation and Improvement of IC Design
Since 2008, Wuxi's integrated circuit design industry has been severely tested by the international financial crisis and has been adversely affected unprecedentedly. From the second half of 2008 to the first quarter of 2009, sales and profits of the Wuxi IC design industry fell sharply. Most companies were on the sidelines, and the number of tapes generally declined. According to research, the profit margins of some enterprises in the first quarter of 2009 only reached about 10% in the same period of 2007, and were basically in a state of loss-making operations. However, there are many privately-owned IC design companies in Wuxi. They have rich market experience, and the scale of the company is moderate, and the transformation and development speed is fast. In the face of the impact of the international financial crisis, Wuxi IC design companies can adjust product layout and control costs in a timely manner, quickly innovate products to open up new markets.
Seeking innovation and development under the crisis
Take Wuxi Xinpeng Microelectronics Co., Ltd. as an example. The company was established at the end of 2005. When the company encountered a severe international financial crisis in 2008, relying on Wuxi ’s excellent industrial environment and international talent advantages, the company team based on power management chips. According to the requirements of the industry, we have developed an exclusive low-open analog circuit processing technology platform in cooperation with the processing plant. The low-voltage DC-DC switching regulator series developed based on this platform has reached the international advanced level and has now become the company's main product. The company has also successfully embarked on a road of technological innovation and differentiated development. In a situation where the performance of peers generally declined, the company relied on strong technological innovation capabilities to continuously introduce new products to the market, which increased the company's performance by 77% and sales exceeded 70 million yuan. Rookie. In early 2009, the company expanded its investment scale and its registered capital increased to 20 million yuan, which provided a solid foundation for continued growth.
In addition, when facing the international financial crisis, Wuxi Lixin Microelectronics Co., Ltd. also adjusted its strategy in time to expand new products, launched mobile phone peripheral circuit chips, and pioneered the mobile phone market. Since 2009, the company's sales have been basically the same as in the same period of 2008 and slightly increased. It is expected that the annual sales will exceed 100 million yuan, and the profit will reach nearly double that of last year. Under the international financial crisis, it has successfully achieved transformation and innovation. .
Wuxi integrated circuit design companies started early and have solid technology accumulation. Although the products are concentrated in the field of consumer electronics, they have the ability to develop new products. At the same time, due to the convergence of market products and fierce competition among peers, the company has cultivated a keen sense of the market, and is able to first discover and develop new markets and seize the commanding heights. For example, the USB series products developed by Wuxi Youxin Integrated Circuit and the multimedia series SoC chips developed by Wuxi Purple Core Integrated Circuit have achieved good market performance. Since the second quarter of this year, Wuxi local integrated circuit design companies have generally achieved an increase in order volume, sales and profit margins have steadily increased, which is the same as that in the same period of 2008 and slightly increased.
The Internet of Things provides new opportunities for transformation and enhancement
Wuxi IC design industry is currently ushering in a major opportunity for transformation and improvement. In August of this year, Premier Wen Jiabao proposed to build a “Perceived China†center in Wuxi during his investigation in Wuxi, and handed over the task of building the Chinese Internet of Things to Wuxi. As an indispensable link in the IoT industry chain, the integrated circuit industry will gain huge room for development. In the Internet of Things, each sensing node requires one or more integrated circuit chips to perform signal processing and analysis on the received information, and a large number of integrated circuit chips are required to complete the identification and screening work when aggregated into the data center. In recent years, some IC design companies in Wuxi, such as Silicon Power, China Microchip, Haiwei Semiconductor, etc., have turned their research and development into the field of sensing and RFID. Almost all design companies are related to the matching of the Internet of Things. Doubtful first-mover advantage, technological advantage and industrial advantage.
In addition, since the implementation of the "530 Overseas Leading Talent Introduction Program" initiated by Wuxi since 2006, Wuxi has created a number of new integrated circuit design enterprises with international advanced technology and design concepts, and has successfully developed a number of independent knowledge. The new products with property rights will undoubtedly inject fresh blood into the transformation and upgrading of the Wuxi integrated circuit design industry, which will effectively drive the overall improvement of the design level of Wuxi integrated circuits. It is foreseeable that in the next 10 years, the high-end talents introduced by the "530 plan" will have two development directions: on the one hand, the beneficiary enterprises of the "530 plan" will successfully start a business to form a new IC design group in Wuxi; on the other hand, these senior Talents will be integrated into existing local design companies to provide necessary human resources for corporate technology improvement and leapfrog development. This will be another development opportunity for the integration and reorganization of Wuxi's IC design industry, making it bigger and stronger.
Large cross-strait business cooperation space
I think that the new space for development cooperation between semiconductor companies on both sides of the strait is mainly the cooperation between mainland design companies and Taiwanese design companies. Taiwanese companies have technical advantages in cooperation, which can help mainland companies solve some technical problems; while mainland companies have geographical advantages in market operation, they can more easily develop the market. The cooperation between the two parties can be described as a win-win cooperation in market-for-technology. At the same time, mainland enterprises can directly outsource the development of certain products to Taiwanese enterprises, adopt their own main market operations or cooperate with solution providers, so that Taiwanese enterprises can integrate into the mainland design industry as design service providers to further enhance mainland enterprises. Product innovation capability.
Facing the "Twelfth Five-Year Plan", Wuxi IC Base will integrate key links such as design, manufacturing and application, and promote the development of the design industry with the first goal in the country, and promote the industry to realize the "100 billion yuan" plan as soon as possible. Perceive China's "Great Cause" to provide a strong basic support.
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