The price of analog chip has risen for the first time in 17 years. The golden race track has a long slope and thick snow. The era of localization is coming.

IC Insights today released the 2021-2025 IC market outlook, one of the highlights is the analog chip. The simulated IC market grew slightly by 3 per cent last year after falling 8 per cent in 2019, IC Insights said. In 2021, the simulated market is expected to grow by 25% and unit shipments by 20%.

In addition, due to tight supply, the ASP of simulated IC is expected to rise by 4% this year-the last simulated IC ASP rise was in 2004. The simulated IC ASP was $0.60 in 2004 and only $0.32 in 2020, with a 16-year compound annual growth rate of-4 per cent. The analog IC segment tracked by IC Insights is expected to achieve double-digit growth this year, with the dedicated analog car segment growing 31 per cent this year, thanks to a 30 per cent increase in unit shipments.

The opportunity of the analog chip on the long slope and thick snow track is highlighted.

The data show that the analog chip is the infrastructure of the electronic terminal, which can affect the basic performance such as signal processing, signal conversion and power regulation, as well as the stability of the "superstructure" digital chip function. According to the application scenarios, communications, industry and automotive electronics are the core subdivision tracks of the simulation market, and these three occupy more than 70% of the market share for a long time.

The analog market is expected to grow by 25 per cent this year, according to IC Insights. In addition, according to WSTS, the size of the global simulation market is $61.1 billion in 2019, is expected to grow to $74.8 billion in 2023, and the compound growth rate will reach 5.1% in 2019-2023. In the simulated IC industry, the sales scale of the domestic market accounts for more than half of the world, and the growth rate is significantly higher than that of the world, with a compound growth rate of 9.2% in the past five years.

The market space is vast, the superimposed self-sufficiency rate needs to be improved urgently, and industry analysts are optimistic about the prospect of localization. Open source securities analysts pointed out that the localization process of analog chips has been continuously promoted from consumer electronics to industrial control communications, and is expected to further develop to the automotive electronic level in the future, and the development space and penetration speed of local analog chip manufacturers are expected to increase. In the long run, high-quality resources will continue to move closer to the head enterprises, and the discourse power of relevant manufacturers may be further enhanced.

Today, the wave of smart cars, new energy vehicles and the 5G era have led to the rapid growth of downstream market demand, creating a timeless time.

And China, the largest terminal demand market, can be said to be the geographical advantage of local manufacturers. The team of Sun Yuanfeng of Huaxi Securities pointed out that the penetration of domestic 5G base stations and 5G smartphones has accelerated, and the demand for consumer electronics such as home appliances and fast charging has increased, rapidly driving the demand for analog products, relying on the first-mover advantage of end customers in China. Leading enterprises are expected to fully benefit.

Finally, there is people and. In order to improve revenue, gross profit margin and their own competitive advantage, domestic head analog chip manufacturers have invested heavily in internal R & D and external mergers and acquisitions to promote the development of high-end and diversified products in an all-round way. Huaxi Securities, Open Source Securities the above research and report analysis, signal chain, domestic manufacturers are still in the initial stage, with the advantage of backwardness; power chain, DCDC/LDO/-driven IC and other low-voltage products develop faster, AC-DC overall gross profit is relatively high, related enterprises are expected to gradually achieve bigger and then stronger.

The related targets of the industry chain include: Jingfeng Mingyuan, Shengbang shares, Xinpeng Weiwei, Weir shares, Huarun Micro, Silipu, Fumon Electronics, Shilan Micro, SMIC, Huahong Semiconductor and so on.