GigaDevice (603986.SH), a companydeeply engaged in the integrated circuit design field for over twenty years, primarily operates in four major sectors: dedicated storage chips, MCUs, analog chips, and sensor chips, making it a core force in the domestic semiconductor industry. Based on 2024 sales, the company ranks among thetop ten global integrated circuit design companies in NOR Flash, SLC NAND Flash, niche DRAM, and MCU fields. The company continues to increase its R&D investment, deeply binding itself to high-growth sectors such as automotive electronics, industrial control, and AIoT, consolidating its leading position in the industry and growing into a globally competitive multi-category comprehensive chip supplier. In response to the rising demand for edge AI-driven near-storage computing,GigaDevice utilizes WOW technology to achieve three-dimensional stacking of storage and SoC, employing 3D stacked DRAM dies to achieve higher memory bandwidth, addressing traditional storage transmission latency issues. The company established Qingyun Technology to seize the opportunity for domestic substitution, and as technology matures and deepens its ties with major clients, it is expected to open up incremental space in the edge AI computing field.
Latest Data Overview
Let’s first take a look at GigaDevice’s overall performance and business layout. As adual leader in the domestic storage chip and MCU fields, the company occupies a leading position in multiple sub-markets.
In terms of revenue scale, the company has maintained a steady growth trend in recent years. The operating revenue for 2023 was 5.761 billion yuan, and for 2024, it is projected to be 7.356 billion yuan, a year-on-year increase of 27.67%. It is expected that the operating revenue for 2025-2027 will reach9.0 billion yuan,11.0 billion yuan, and13.0 billion yuan, maintaining a continuous growth trend.
In terms of profitability, the company is currently in arapid growth phase. It is expected that the net profit attributable to the parent company for 2025-2027 will reach1.574 billion yuan,2.144 billion yuan, and2.782 billion yuan, with corresponding P/E ratios of87 times,64 times, and49 times.
In terms of market position, the company is globally leading in several niche fields. Based on 2024 sales, it ranks among thetop ten global integrated circuit design companies in NOR Flash, SLC NAND Flash, niche DRAM, and MCU fields. This market position fully demonstrates the company’s technical strength and market competitiveness.
In terms of business layout, the company mainly focuses on four major sectors:dedicated storage chips, MCUs, analog chips, and sensor chips. Among them, storage chips and MCUs are the core businesses, accounting for the majority of revenue. The company continues to increase R&D investment, deeply binding itself to high-growth sectors such as automotive electronics, industrial control, and AIoT.
Storage Chips as Core Pillar of Revenue, Cutting-Edge Layout of 3D DRAM to Build Comprehensive Competitive Advantage
Storage chips are the core business segment of GigaDevice. From the perspective of product layout and market position,the company has significant competitive advantages in both Flash and DRAM fields.
In terms of Flash products, the company’s Flash products are in aglobally leading position, achieving full-category coverage in consumer electronics, industrial, automotive, and other fields. The company continues to deepen cooperation with domestic and foreign automotive manufacturers, creating a high-speed growth engine for automotive-grade products. Automotive-grade storage chips require higher reliability and stability, and also have higher added value.
In terms of DRAM products, in the niche DRAM field, asoverseas major manufacturers gradually exit the DDR3 and DDR4 markets, the competitive landscape is expected to continue to improve. The company’s own brand DRAM market continues to expand, benefiting from the release of market space and the recovery of product prices,expected to achieve simultaneous growth in volume and price.
In terms of technological innovation, the company is at the forefront with3D DRAM technology, building a comprehensive competitive advantage. In response to the rising demand for near-storage computing driven by edge AI,GigaDevice utilizes WOW technology to achieve three-dimensional stacking of storage and SoC, employing 3D stacked DRAM dies to achieve higher memory bandwidth, addressing traditional storage transmission latency issues.
In terms of market opportunities, the leading niche storage company Winbond has launched a CUBE customized high-bandwidth storage solution, demonstrating the enormous potential of the near-storage computing market. As a leading domestic player in niche DRAM, GigaDevice has a first-mover advantage in this emerging market.
In terms of industrial layout, in the face of industry technical barriers,GigaDevice established Qingyun Technology to seize the opportunity for domestic substitution. Qingyun Technology focuses on the R&D and industrialization of 3D DRAM technology, and as technology matures and deepens ties with major clients, the company is expected to open up incremental space in the edge AI computing field, becoming a key growth driver.
From an industry trend perspective, the rapid development of AI terminals has raised higher performance requirements for storage chips. Traditional storage architectures can no longer meet the bandwidth and latency demands of AI computing,near-storage computing has become the key technology to solve this problem. The company’s layout through 3D DRAM technology is expected to occupy a favorable position in this emerging market.
MCU Maintains Diversified Layout, Collaborative Development Opens Long-Term Growth Space
MCUs (Microcontrollers) are another core business segment of GigaDevice. From the perspective of product matrix and market layout,the company has comprehensive competitive advantages in the MCU field.
In terms of product matrix, as aleading domestic MCU company, it maintains a diversified layout, currently producing64 series and over 700 MCU products, achieving comprehensive coverage of downstream demand. At the same time, it continuously promotes application development in emerging fields such as AI, robotics, and digital energy.
In terms of market position,the company holds the highest market share in the global 32-bit MCU market, with automotive being the largest downstream application field. GigaDevice’s MCU business is dominated by 32-bit products, which align closely with global market trends. Compared to 8-bit and 16-bit MCUs, 32-bit MCUs have stronger computing capabilities and richer peripheral interfaces, making them the main growth point in the future MCU market.
In terms of automotive electronics layout,approximately 1.2 billion yuan will be invested in new projects in 2024, accelerating the R&D and industrialization of automotive MCUs. Product solutions are being applied in bulk to several leading automotive manufacturers. Automotive electronics is the largest downstream application field for MCUs, and with the development of automotive electrification and intelligence, the demand for MCUs per vehicle continues to increase, bringing enormous growth space to the MCU market.
In terms of technical advantages, the company’s MCU products cover a full range from low-end to high-end, meeting the needs of different application scenarios. They are widely used in industrial control, consumer electronics, automotive electronics, and other fields. The company continues to increase R&D investment, continuously launching new products to maintain its technological leadership.
In terms of market expansion, the company is continuously promoting application development in emerging fields such as AI, robotics, and digital energy. These emerging fields place higher demands on the performance and functionality of MCUs, providing a broad market space for high-end MCU products.
In terms of synergy, the company’s storage chip and MCU businesses have a natural synergy. In many application scenarios, MCUs need to work in conjunction with storage chips. The company can provideintegrated solutions of storage + MCU, enhancing customer stickiness and improving market competitiveness.
Stable Growth of Core Storage + MCU, 3D DRAM Builds Core Growth Driver
Looking ahead, GigaDevice’s growth logic is clear and defined. From the perspectives of business synergy and technological innovation,the company is building a multi-layered growth engine.
In terms of core business,storage + MCU steadily increases, providing stable performance support for the company. In the storage chip sector, as overseas major manufacturers exit the niche DRAM market, the company’s market share is expected to continue to rise; in the MCU sector, the continuous expansion of high-growth areas such as automotive electronics will drive rapid growth in the MCU business.
In terms of growth drivers,3D DRAM builds a core growth driver. The rise of edge AI has generated demand for near-storage computing, and the company utilizes WOW technology to achieve three-dimensional stacking of storage and SoC, employing 3D stacked DRAM dies to achieve higher memory bandwidth, addressing traditional storage transmission latency issues. This technological innovation is expected to open up incremental space in the edge AI computing field.
In terms of technical barriers, 3D DRAM technology has high technical barriers, requiring breakthroughs in design, process, packaging, and other aspects.GigaDevice established Qingyun Technology to seize the opportunity for domestic substitution, focusing on the R&D and industrialization of 3D DRAM technology. In the face of industry technical barriers, the company, through specialized teams and continuous R&D investment, is expected to occupy a favorable position in this emerging market.
In terms of customer binding, as technology matures anddeep ties with major clients develop, the company is expected to open up incremental space in the edge AI computing field, becoming a key growth driver. Deep ties with major clients not only bring stable orders but also enhance technical levels through joint development, forming a virtuous cycle.
In terms of market space, the edge AI market is rapidly developing. As AI algorithms continue to optimize and chip performance improves, more and more AI applications are shifting from the cloud to the edge. Edge AI places higher demands on the bandwidth and latency of storage chips,near-storage computing has become the key technology to solve this problem. The company’s layout through 3D DRAM technology is expected to gain first-mover advantage in this emerging market.
In terms of domestic substitution, under the current international situation, the localization of the semiconductor industry chain has become an important trend. As a dual leader in domestic storage chips and MCUs, the company will fully benefit from the domestic substitution process. Especially in fields such as automotive electronics and industrial control, where supply chain security is highly demanded, the penetration rate of domestic chips is expected to rise rapidly.
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Finally, according to the 2024 annual report data, the total remuneration for the company’s directors, supervisors, and senior management in 2024 was24.9146 million yuan. Chairman Zhu Yiming received a total pre-tax remuneration of4.7279 million yuan from the company in 2024.
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Disclaimer: The content of this article is for reference only and does not constitute investment advice. Investment involves risks, and caution is advised when entering the market.