SoC (System on Chip) is a highly integrated integrated circuit that combines multiple functional modules such as processor cores, graphics processors, memory controllers, and input/output interfaces into a single chip, often customized for specific applications.
SoC chips are widely used in various fields including communications, healthcare, transportation, industrial control, automation, networking, and consumer electronics, such as smartphones, smart TVs, smart home devices, and automotive electronic systems.
Dissection of the SoC Chip Industry Chain
Upstream Design and Raw Material Supply
Raw Material Supply: Silicon wafers are the fundamental materials for manufacturingSoC chips, along with other important raw materials such as photoresists and electronic gases. Silicon wafer manufacturers purify silicon and produce wafers, supplying them to chip manufacturers. Photoresists are used in photolithography processes, determining the precision of chip patterns; electronic gases play a crucial role in etching, deposition, and other processes.
Design Tools and Technology Licensing:EDA tools are key to chip design. The IP core industry is highly concentrated, with domestic manufacturers holding a low market share, while global IP core suppliers are primarily foreign companies.
Chip Design: Chip design companies integrate various functional modules such asCPU,GPU, and communication modules into a single chip based on market demand and application scenarios.
Midstream Chip Manufacturing
This mainly involves the chip manufacturing process, undertaken by wafer foundries. These companies possess advanced manufacturing processes and equipment, processing wafers according to the requirements of chip design companies.
Downstream Packaging, Testing, and Product Applications
Chip Packaging and Testing: Packaging and testing companies encapsulate the manufactured chips, enabling them to connect with external circuits, and conduct performance testing and quality screening. Advanced packaging technologies such as3D packaging and multi-chip packaging provide strong support for enhancing the performance and reducing the costs ofSoC chips.
Manufacturing and Sales of Electronic Products: Various electronic product manufacturers, such as those producing smartphones, tablets, and smart TVs, integrate the packagedSoC chips into their products, carry out complete production and assembly, and then push the products to market through sales channels.
Profitability of SoC Chip Industry Chain Companies
The profitability of a company is typically reflected in the amount of revenue generated over a certain period and its level of profitability. Analyzing profitability involves a deep dive into the company’s profit margins.
This article is part of the corporate value series focusing on【Profitability】, selecting27 companies in theSoC chip industry chain as research samples, using indicators such as return on equity, gross margin, and net margin for evaluation.
Data is based on historical performance and does not represent future trends; it is for static analysis only and does not constitute investment advice.
10. Zhongke Lanyun
Industry Segment: Digital Chip Design
Profitability: Return on equity7.76%, gross margin22.92%, net margin16.50%
Performance Forecast:ROE has fluctuated between6%-8%, with the latest forecast average at8.94%
Main Products: Bluetooth headset chips are the primary source of revenue, accounting for58.97%, with a gross margin of18.44%
Company Highlights: Zhongke Lanyun specializes in the research, design, and sales of wireless audioSoC chips, serving as the main control chip for wireless audio devices.
9. Zhenxin Technology
Industry Segment: Military Electronics
Profitability: Return on equity2.31%, gross margin52.91%, net margin4.96%
Performance Forecast:ROE has continuously declined to2.31%, with the latest forecast average at7.20%
Main Products: Integrated circuit business is the primary source of revenue, accounting for47.62%, with a gross margin of61.51%
Company Highlights: Zhenxin Technology provides comprehensive solutions for “intelligent chips – intelligent terminals – intelligent applications and services.” The integrated circuit products designed and developed in-house are categorized into RF, interface, andSoC types.
8. Juchip Technology
Industry Segment: Digital Chip Design
Profitability: Return on equity5.83%, gross margin48.22%, net margin16.35%
Performance Forecast:ROE has continuously risen to5.83%, with the latest forecast average at8.30%
Main Products: Smart wireless audioSoC chip series is the primary source of revenue, accounting for74.60%, with a gross margin of48.94%
Company Highlights: Juchip Technology focuses on mid-to-high-end smart audioSoC chips, providing professional integrated chips for wireless audio, smart wearables, and smart interaction in the IoT field.
7. Xingchen Technology
Industry Segment: Digital Chip Design
Profitability: Return on equity9.54%, gross margin35.79%, net margin10.89%
Performance Forecast:ROE has continuously declined to9.54%, with the latest forecast average at9.02%
Main Products: Smart security is the primary source of revenue, accounting for67.46%, with a gross margin of33.42%
Company Highlights: Xingchen Technology features NVR SoC products equipped with self-developed edgeAI processors that enable image recognition, supporting64 channels of IPC or32 channels of analog HD cameras, and supporting various mainstream intelligent analysis algorithms.
6. Tailin Micro
Industry Segment: Digital Chip Design
Profitability: Return on equity4.16%, gross margin48.34%, net margin11.54%
Performance Forecast:ROE has fluctuated between3%-6%, with the latest forecast average at8.46%
Main Products:IOT chips are the primary source of revenue, accounting for90.62%, with a gross margin of47.17%
Company Highlights: Tailin Micro focuses on IoT chips and audio chips, with IoT chips primarily consisting of low-power BluetoothSoC products, as well as 2.4G private protocolSoC products and multi-modeSoC products compatible with various IoT application protocols, and ZigBee protocolSoC products.
5. Allwinner Technology
Industry Segment: Digital Chip Design
Profitability: Return on equity5.63%, gross margin31.19%, net margin7.29%
Performance Forecast:ROE has reached a maximum of7.39%, with the latest forecast average at11.07%
Main Products: Smart terminal application processor chips are the primary source of revenue, accounting for85.79%, with a gross margin of29.76%
Company Highlights: Allwinner Technology specializes in smart application processorsSoC, high-performance analog devices, and wireless interconnect chips.
4. Hengxuan Technology
Industry Segment: Digital Chip Design
Profitability: Return on equity7.28%, gross margin34.71%, net margin14.11%
Performance Forecast:ROE has fluctuated between2%-8%, with the latest forecast average at11.51%
Main Products: Chip sales revenue is the primary source of revenue, accounting for100.00%, with a gross margin of34.71%
Company Highlights: Hengxuan Technology specializes in smart audioSoC chips, with main products including Bluetooth audio chips and Type-C audio chips, widely used in smart Bluetooth headsets, Type-C headsets, and smart speakers.
3. Amlogic
Industry Segment: Digital Chip Design
Profitability: Return on equity13.87%, gross margin36.55%, net margin13.82%
Performance Forecast:ROE has fluctuated between9%-17%, with the latest forecast average at14.54%
Main Products: Multimedia smart terminal chips are the primary source of revenue, accounting for97.98%, with a gross margin of36.75%
Company Highlights: Amlogic specializes in multimedia smart terminalSoC chips, wireless connectivity chips, and automotive electronic chips.
2. Weisheng Information
Industry Segment: Communication Terminals and Accessories
Profitability: Return on equity20.39%, gross margin39.74%, net margin22.99%
Performance Forecast:ROE has continuously risen to20.39%, with the latest forecast average at20.10%
Main Products: Electric monitoring terminals are the primary source of revenue, accounting for30.35%, with a gross margin of33.06%
Company Highlights: Weisheng Information specializes in electric monitoring terminals, communication modules, and communication gateways. The self-developedWTZ30 dual-mode communication chip is designed for the new generation of smart meters, distribution network automation, and power operation and maintenance needs in the power IoT sector.
1. Rockchip
Industry Segment: Digital Chip Design
Profitability: Return on equity17.81%, gross margin37.59%, net margin18.97%
Performance Forecast:ROE has fluctuated between4%-18%, with the latest forecast average at23.63%
Main Products: Integrated circuits are the primary source of revenue, accounting for100.00%, with a gross margin of37.59%
Company Highlights: Rockchip specializes in large-scale integrated circuits and application solutions. The company’sSoC chips are primarily used in consumer electronics such as tablets, smart boxes, and smartphones.
SoC chip industry chain and the complete profitability ranking of segmented companies have been published on Knowledge Planet. Interested parties can join to view!
