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When discussing the development of domestic MCUs, it basically started from the home appliance sub-market. The pioneers include:Zhongying Electronics（300327.SZ）the invisible champion in white goods; Neusoft Carrier (300183.SZ）the original Haier semiconductor division, merging small appliance MCUs with State Grid South Grid; Zhongwei Semiconductor (688380.SH）started in Ningbo small appliances and gradually expanded into the motor control industry; brands like BYD Semiconductor, Saiyuan, Shengxiwei, and Xincheng are also eyeing the white goods market. Data shows: In 2024, the demand for white goods MCUs is expected to reach 1.06 billion units, indicating a large market for MCU brands.
STMicroelectronics is the market leader, but it is a foreign brand. What are the domestic general-purpose MCU brands? General-purpose track: GigaDevice (603986.SH）、Jihai Semiconductor(002180.SZ),Guomin Technology(300077.SZ)、Lingdong Micro, Huada Electronics, Hangshun. Motor track: Fengqiao Technology (688279.SH）、Lingou Chuangxin, Pengpai Micro. Automotive track: XW Micro, QX Micro, Yuntu, Xinch. RISC-V track: Aipute,Qinheng Microelectronics、Xianji; Nor Flash companies are also eyeing this cake, Hengshuo and Puran are targeting the 003 specification MCUs with unbeatable cost performance. Of course, there are many more niche tracks, and numerous MCU brands still exist. Data shows: In 2022, the general-purpose MCU market capacity was 36 billion units, indicating a larger market for general-purpose MCUs, naturally leading to more MCU brands.
Recently listed semiconductor companies have provided information about MCUs:
1. Jingfeng Mingyuan acquired Lingou Chuangxin
2. Naxin Micro expands its DSP product line
3. Hangzhou Jinghua Micro acquired Shenzhen Xinpang Zhixin Micro
4. Nanxin Technology acquired Zhuhai Shengsheng Microelectronics
5. Jiehuate acquired Hangzhou Lingxin
6. Biyi Micro acquired Zhuhai Qixin
7. Zhongying Semiconductor changed ownership
8. GigaDevice acquired Suzhou Saixin
Thoughts: Why are analog semiconductor companies acquiring MCU companies?
1. To illustrate, the MCU can be likened to the human brain, while analog chips represent the body. Only when the brain and body are together can we be called a person; otherwise, we are merely organs. From a Chinese philosophical perspective, everything that is united will eventually separate, and everything that separates will eventually unite. The MCU and analog chips will inevitably come together.
2. The market capitalization of listed companies, future expectations, and business scale. Analog chips have high profits but low initiative, while MCUs are highly proactive but have lower profits. MCUs can drive the sales of analog chips, and integrating analog chips into MCU applications is relatively easy. The analog chip field is broad and can provide opportunities for MCUs, making their combination a case of 1+1>2.
3. The international herd effect, with major international companies like TI, STMicroelectronics, Renesas, Microchip, and NXP all combining MCU and analog product lines.
4. The domestic herd effect, with classic cases like Jingfeng Mingyuan acquiring Lingou Innovation, stepping from the LED lighting track into the motor control track. Fengqiao Technology emerged from the motor track as a listed company, while Jiehuate acquired Hangzhou Lingxin and Biyi Micro acquired Zhuhai Qixin. Jingfeng Mingyuan set a precedent for acquisitions, which has been validated by performance and stock market results.
Thoughts: Why is the acquisition wave happening at this time?
1. The wild growth nurtures the market, and policies are consolidating to strengthen it. This is true for the internet industry, the new energy vehicle industry, and the semiconductor industry. Strong technology companies lead to a strong nation, and a strong China can take center stage on the international stage. Semiconductor acquisitions reflect national will.
2. When heaven wants to destroy something, it first makes it crazy. Since 2021, the semiconductor industry has gone into a frenzy, with a semiconductor craze sweeping across China. The barriers to entry for semiconductor companies have been broken by investors. Now, with 2025 just four years away, the betting time is almost up, and with the economic situation so poor, going public seems distant. Acquisitions by listed companies are the best route.
Thoughts: What about MCU companies that are not listed or acquired?
1. The MCU industry has three major pitfalls: market share, advanced process technology, and the automotive industry. The basic business logic must ensure profitability; the product price must cover R&D and operational costs for the company to survive. The three major pitfalls in the MCU industry point to the need to spend more money while selling products at lower prices. Consider your financial reserves; if funds are tight, it’s better to take a step back; life is more important than work.
2. The MCU industry is filled with highly intelligent, capable, and educated individuals. It might be worth trying to lower the dimensionality of competition, moving from chips to finished products. Successful MCU companies have generally followed this path.
3. Of course, there are also strong-willed friends who should strive hard for their dreams.
The state of the MCU industry, company acquisitions, and IPOs are all external manifestations. Whether they align with the natural order is known only to the heart. Benefiting employees, customers, and the industry is the standard of the natural order. I sincerely wish all MCU practitioners to soar like the mythical Kunpeng!