Hello everyone! I am the strategic logic deducer, Hongling Road.
First, I would like to thank all my fans for their continued support. However, I have been very busy these days and haven’t had time to produce any public works. Recently, I have been deeply studying commercial aerospace, so I haven’t had time to write. I apologize for that!
Tonight, I felt uncomfortable not writing, and I can’t keep my fans waiting. The recent market focus on commercial aerospace is good, but after thinking it over, I decided to write about safety instead. Thus, I found Si Rui Pu.
Recently, some friends mentioned that I deleted them from WeChat. Actually, it’s not that I dislike them; I just want to maintain my independent thinking and minimize distractions. People with different values cannot go far together. I try to find like-minded individuals to study the market with.
In fact, I am quite lonely; I have no friends. Not a single one. During my toughest times, I have always faced challenges alone. Of course, if a friend could lend me 50,000 yuan, they would earn my loyalty for the rest of my life. Because my research results are definitely worth more than 50,000 yuan. But later, I found that I couldn’t borrow even 10,000 yuan.
If I had really had 50,000 yuan at that time, I could have stood up again. Unfortunately, I couldn’t borrow it, so I am a person without friends. I actually encountered a significant life opportunity to easily earn 500,000 yuan, with an investment of only 80,000 yuan. I asked many relatives, but I couldn’t borrow a single cent.
Therefore, in this life, I don’t dare to hope for friends, friendship, or love; I just go with the flow. But I still have family support; my parents have always encouraged me spiritually, and my brother worked 12 hours a day to support me. I also took a part-time job as a waiter.
I apologize for turning the discussion about Si Rui Pu into a personal narrative. Recently, I have been studying how to write well about planets, which has delayed my public account a bit. However, I write with care outside, and I hope everyone likes it.
Si Rui Pu is an integrated circuit design company engaged in the research and development and sales of analog and mixed-signal products, dedicated to providing customers with innovative and competitively comprehensive analog and mixed-signal products and solutions.
It is evident that: the analog industry is approaching a turning point, and domestic substitution is an inevitable trend.
The first point is that inventory destocking is nearing completion, and the analog industry is approaching a turning point. The analog chip industry entered a downward cycle starting from Q4 2022. As inventory destocking is nearing completion, the inventory situation of overseas leading companies shows signs of stabilization or decline. Texas Instruments experienced its first revenue growth in nine quarters in FY25Q1, and ADI also saw revenue growth in FY25Q2. The performance of overseas leaders verifies that the analog industry has entered an upward cycle starting from Q1 2025.
The second point is that overseas leaders dominate the market, while domestic suppliers are accelerating their layout with vast substitution potential. Currently, the global analog chip market is still dominated by overseas manufacturers. According to data from Zhiyan Consulting, China’s self-sufficiency rate for analog chips in 2024 is only 16%. With the increasing uncertainty in the external trade environment, the association called for a reduction in dependence on American chips in December 2024, which is expected to accelerate the domestic substitution process, benefiting domestic manufacturers.
Recently, Texas Instruments plans to raise prices for analog chips: On August 9, according to Taiwan’s “Electronic Times,” analog chip giant Texas Instruments plans to raise prices for over 60,000 products in the Chinese market on August 15, with increases ranging from 10% to over 30%. This will naturally raise the prices of domestically produced, self-controlled analog chips. Usually, some domestic brands are reluctant to buy domestic analog chips, but now that imports are increasing in price, shouldn’t they consider domestic brands?
Why is Texas Instruments confident in raising prices? Naturally, it is because they predict that future market inventory will be low.
So, which domestic manufacturers are producing analog chips?
They include: Shengbang Co., Naxinwei, and Si Rui Pu. We can study them together; I call them the “Three Musketeers of Analog Chips!”
That’s all I have to say. In short, price increases are driving the domestic substitution process, which is worth paying attention to.
Best wishes!
Warm reminder: The above is a personal study note and does not constitute investment advice!