The report from Electronic Enthusiasts Network (by Li Wanwan) states that since the outbreak of the pandemic, the demand for medical devices such as infrared thermometers and pulse oximeters has surged. Electronic Enthusiasts has learned that MCU manufacturers are actively launching MCUs for medical devices and are supplying them to ensure the production of medical equipment.
Channel news indicates that the shipping prices of foreign MCUs have generally increased by 20-30%, with some even doubling. The main reason for this price increase is the supply shortage. On April 2, Zhongying Electronics stated that the delivery situation from foreign suppliers to domestic customers is extremely severe, unlike the domestic supply chain, which has basically recovered and is working overtime.
Currently, the domestic supply chain has stabilized. Although the sales volume in the home appliance sector has declined due to the pandemic, which may affect MCU shipments, the explosive growth of medical devices such as infrared thermometers and pulse oximeters has greatly boosted the shipments of domestic MCUs.
Industry insiders believe that the progress of domestic MCUs has entered the fast lane, especially under the impact of the pandemic, many brands have seized the opportunity. Once customers become familiar with domestic MCUs, and provided that the performance of domestic MCUs meets their needs, more customers will choose domestic MCUs as their first option in the future.
Domestic MCU Prices Remain Stable
According to recent research by Electronic Enthusiasts Network, although foreign MCUs are experiencing shortages due to the shutdown of wafer fabs and packaging/testing plants, domestic MCU manufacturers generally state that their companies will not raise prices, or that price fluctuations are minimal.
Huada Semiconductor told Electronic Enthusiasts Network that the prices of their MCU products will definitely not increase. Huada Semiconductor has launched the HC32L series for ultra-low power applications, the HC32M series for motor applications, the cost-effective HC32F series for general markets, and a customized small PLC series for industrial customers.
During this pandemic, their HC32L series MCUs have strongly supported the production of various medical devices. Liang Shaofeng, the MCU marketing manager at Huada Semiconductor, previously stated in an interview with Electronic Enthusiasts Network, “Our HC32L series ultra-low power MCUs fully meet the production needs of various epidemic prevention devices, from pulse oximeters to infrared thermometers. The high-capacity products can also support the production of wireless networking versions. Products like pulse oximeters using Huada MCUs have passed testing and certification and have entered mass production.”
According to Liang Shaofeng, previously, medical product shipments accounted for only a small portion of the company’s sales, but now almost all shipments are medical products, with the monthly shipment volume of medical products reaching around 10 million units.
Zaiyuan Microelectronics General Manager Zhai Guanjie told Electronic Enthusiasts Network that “Price increases for MCUs are not yet a widespread phenomenon; they should be mainly concentrated in MCUs for epidemic prevention applications. Due to uncertainties in the supply chain, there is a possibility of general price increases for foreign MCUs this year, but currently, price increases are mostly occurring in the sales phase.”
Zaiyuan Microelectronics has launched nearly 200 MCU models, mainly used in home appliances, industrial control, consumer electronics, and new IoT markets, with annual shipments of industrial-grade MCUs reaching hundreds of millions. The Zaiyuan SC92F8 series touch MCUs perform excellently among large and medium-sized domestic customers and are leading in the touch MCU segment.
Zaiyuan MCUs are also widely used in various sports equipment such as massage guns and treadmills. Zhai Guanjie stated, “Massage guns, as a trending product, have grown rapidly in the past few years and will continue to have growth potential in the coming years. Zaiyuan MCUs, with their high anti-interference capability, stable touch performance, extremely simple touch function development, rich product line choices, and quality customer service, have become the preferred MCU brand, with an expected market share of over 50%.”
Liu Jiping, founder of Shenzhen Hangshun Chip Co., Ltd., previously stated in a media interview that, “Due to our consistent practice of stocking in advance, and with strong support from the government and medical systems for the entire MCU supply chain, our MCU prices have not fluctuated significantly.”
Hangshun Chip, established in Shenzhen in 2014, has now mass-produced over 300 general/special 32-bit MCUs/SOCs based on ARM Cortex-M0/M3/M4 ultra-low power 7nA, which are widely used in commercial aircraft, commercial satellites, automotive electronics, medical electronics, industrial and consumer electronics, as well as smart city and smart home applications.
Acceleration of Domestic Substitution, MCU Technology Reliability is Key
In 2019, the concept of domestic chip substitution gained traction due to the US-China trade war, and some manufacturers gradually achieved mid-to-high-end transitions. Industry insiders believe that the current shortage of foreign MCUs will benefit domestic MCUs in further capturing the domestic market.
Zhai Guanjie from Zaiyuan Microelectronics told Electronic Enthusiasts Network that, “In recent years, domestic MCUs have made significant progress in technology and processes, forming a substitution trend against foreign MCUs in some areas. The supply tension of foreign MCUs caused by this year’s pandemic is a significant advantage for domestic MCUs. However, there will not be many domestic MCUs capable of replacing foreign MCUs; efforts must be made in quality and technology to avoid becoming a temporary choice and to create a trend of substitution opportunities.“
Jin Guangyi, product marketing director of GigaDevice Semiconductor, previously stated in a media interview that as the pandemic in China gradually comes under control, various industries are resuming work and production, while the overseas pandemic situation remains severe, causing many overseas chip upstream and downstream industries to still be in a state of shutdown. This presents a good opportunity for gradual realization of domestic substitution.
Liu Jiping from Hangshun Chip previously mentioned that medical devices mainly use mid-to-high-end 8-bit and 32-bit MCUs, while domestic users previously relied on imported products. With the recent shortage and price surge of foreign MCUs, many medical companies have begun to use domestic MCUs. Liu Jiping believes this greatly increases the usage rate of domestic MCUs and will promote the market share and customer recognition of domestic MCUs.
Conclusion
Although there is still a gap between domestic MCUs and international ones, they have developed rapidly in recent years. During this pandemic, many domestic MCU brands have demonstrated outstanding performance in the medical device sector due to their product performance advantages. In addition to Huada Semiconductor mentioned above, Nanshida also stated that their general MCU chip products (for pulse oximeters, ventilators, etc.) are currently being shipped in bulk in the medical device field.
This wave of foreign MCUs experiencing shortages and price increases due to the pandemic not only increases the opportunities for domestic MCUs to replace foreign products but also further familiarizes and adapts domestic customers to domestic MCUs.
Due to the pandemic, the chip market, including MCUs, will be filled with uncertainties in 2020, with significant differences in market demand, such as sluggish sales in consumer electronics but explosive growth in medical prevention products. On the supply side, supply shortages, extended delivery times, and various variables such as foreign MCU shortages and price increases will increase uncertainty in the MCU market this year, with both local opportunities and risks coexisting.
Overall, the MCU market is still in a rapid growth phase, and domestic companies are gradually completing the localization of mid-to-low-end MCUs based on cost and supply cycle advantages, and will further strengthen their efforts in the high-end market in the future.
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