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Can China succeed in the competition of 5G chips?
Time: 2019-03-21 Read: 2113
   Vientiane update, the beginning of the Year of the Pig, the 5G competition also began with the "core". According to data released by research institute ICInsights, orders from chip foundry companies from China's chip companies increased by 41% in 2018. This order quantity does not include orders from Chinese OEMs, which shows that China's chips after the "ZTE event" The industry is "prosperous". The *10 ministries and commissions jointly issued the "Implementation of Optimized Supply to Promote Steady Growth in Consumption to Promote the Formation of a Strong Domestic Market (2019)" and proposed to accelerate the launch of 5G commercial licenses. It will be a node for the commercialization of 5G technology and a key period for testing the strength of 5G chip companies. For the "China Core" enterprises, grasping the golden opportunity of the 5G era will not only help to change the "core pain" pattern, but also help China's core rise in the 5G era.
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Who are more competitive?


    There is no doubt that the chip has become a "new energy" in the era of globalization and has become a battleground for big countries. At present, there are only 6 manufacturers in the world that manufacture 5G chip technology, and China accounts for half of the country.


    One Huawei, although the 5G road has also encountered a barrier, but it is still the end of the "enlargement move": Huawei for the 2019 Spring Festival Gala to provide 4K level 5G live broadcast support; its 5G base station equipment sells in the global market, shipping over 2.5 Ten 5G base stations have signed 30 5G contracts; all 5G commercial tests have been completed, and they are the first to break through the key technologies of 5G commercial scale.


    Its two-link development, 5G development can be described as "attack". At present, MediaTek has launched the *5G baseband module HelioM70. In addition to supporting the current 5GNR (new air interface), including the common N41, N78 and N79 bands, it also supports independent networking (SA) and non-independent groups. Network (NSA) architecture, high power terminal (HPUE) and other 5G key technologies, transmission rate * up to 5Gbps.


    Compared with Qualcomm, Intel, Samsung and three foreign 5G chip companies, the communication industry* expert Xiang Ligang pointed out that the 5G chip field still has a large advantage in the United States. Without major surprises, it will dominate. The overall situation in the chip field is certain in Europe. The decline, China is increasing its efforts to seek breakthroughs. In the next 5-10 years, it will be unclear whether the whole situation will change. But China is strengthening a little bit. This is an unchangeable general trend.


    The "heart pain" that China’s core once had


    Xiangzhuang dance sword, intended to Pei Gong. In 2018, Sino-US trade confrontation continued until 2019. The communications industry was the first to bear the brunt, and ZTE was banned. Huawei and others were also pushed to the forefront of the turmoil. ZTE’s foresight and its butterfly effect have sounded the alarm for the industry: in the context of market globalization, chips have become “the link that is easy to be smashed by the neck” in international competition. The purchase seems to be more affordable than research and development, but it cannot be done once and for all, but it is easy. Bring a profound lesson to the company*.


    At present, the localization of 5G chips is imminent, and the "China Core" companies are making changes with actual actions. Huawei's current achievements benefit from the 2 billion yuan spent by Ren Zhengfei on the "China Core" every year. Huawei has invested a total of 394 billion yuan in research and development. In addition, Alibaba renewed its acquisition of Zhongtianwei, claiming to invest 100 billion R&D “China Core”; Dong Mingzhu invested 3 billion to assist Hefei Zhongwen Jintai to acquire Anshi Semiconductor, and strived to find “China Core” for Gree Air Conditioning. It should be emphasized that 5G is the foundation of the future, and continues to provide solutions for the mainstream market, so that all consumers benefit to become the focus of enterprise development. Breakthroughs in key links such as 5G core chips and high-frequency devices will help support the development of 5G technology and the establishment of an industrial ecosystem.


    Don't make chips for chips


    The process of growing up is always accompanied by joy and sorrow. Whether it is a setback or a smooth ride, you should face it bravely and try to change. In the upcoming 5G era, the chip market will be reshaped, and the "China Core" enterprise must face both the problem and the opportunity.


    What is the difficulty in the development of China's chip industry? In short, there are common difficulties in industries such as large investment, long cycle, high technical threshold and slow income. There are also specific reasons for the late start of China Core, low investment and insufficient talent advantage.


    The key is how to do it. The network is the basis for the development of 5G, and the network deployment role of telecom operators needs to be fully utilized. For example, China Telecom has taken the lead in applying the innovative N×25Gb/sWDM-PON (Wavelength Division Multiplexed Passive Optical Network) technology solution in the 5G test field, successfully implementing 5GDU (Base Station Controller Distributed Unit) and AAU (Base Station Active). The bearer of the preamble link between the antenna units effectively saves fiber resources and is of great significance for the smooth deployment of 5G.


    Network infrastructure, capital investment and talent entry do not fully represent the improvement of technical standards, and market guidance is also an important factor. According to industry analysis, “To achieve 5G market-oriented applications, we must first conduct interoperability testing to ensure that the operation of 5G systems is no problem. The challenge of 5G chip marketization is how to find the right commercialization model. When commercial services are implemented Smooth, will stimulate the 5G chip industry to enter the market."


According to Fuchang Electronics, international IDM manufacturers including NXP, ON Semiconductor, Vishay and STM are all in full swing, not only the price of split diodes is bullish, but also includes BridgeRectifier and Schottky diodes. (SchottkyDiode), transient voltage suppression (TVS), rectifier (Rectifier), switching diode (SwitchingDiode) and other products have been extended to 16 to 40 weeks, * long and even 52 weeks, the price also rose.


The supply chain believes that the current demand for electric vehicles and automotive electronics has risen sharply. For example, the Advanced Driver Assistance System (ADAS) integrates blind spot detection (BSM), lane departure warning (LDWS) and parking assist devices. In the past several times, and electric vehicles are driven by batteries, the installed capacity of electronic devices is much larger than that of automobiles. Therefore, the demand for diodes is more. Under the current increase in diode capacity, there will naturally be a shortage of price increases.


In fact, the separate diodes have been out of stock in 2018, which has led to significant growth in the performance of large-scale manufacturers such as Taiwan Semiconductors, Dunnan and Qiangmao. Among them, Taiwan's combined revenue in 2018 reached 9.611 billion yuan, rewriting a record high; Dunnan's annual consolidated revenue was 12.105 billion yuan, a record high. The legal person is optimistic, Dunnan, Taiwan and the after-tax net profit have the opportunity to pay a high level of performance.


For the operational performance of Taipan, Dunnan and Qiang Mao in 2019, the legal person believes that as the electric vehicle and vehicle electronics market continues to grow substantially, the amount of diodes will only continue to grow, and the current Sino-US trade war deadlock, China The mainland system factory has the opportunity to transfer orders to the Taiwanese diode factory, as well as the three factors of rising prices and shortages. The optimistic performance of the diode manufacturers such as Taichung, Dunnan, Qiangmao and Dewei will be expected to come again in 2019. New wave of peaks


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