ADC/DAC chips, or analog-to-digital and digital-to-analog converters, are responsible for converting real-world analog signals, such as temperature, pressure, sound, fingerprints, or images, into a digital format that is easier to process. Conversely, DACs modulate digital signals into analog signals. ADCs and DACs serve as the bridge between the real world and the digital world, representing one of the most challenging aspects of analog chips, often referred to as the “crown jewel” of analog circuits.
Essentially, almost all electronic devices we encounter in our daily lives incorporate ADCs. Cars, smartphones, home appliances, and smart wearable devices all rely on ADCs to convert analog signals from nature and life into signals that digital chips can process.
It is no exaggeration to say that ADC chips are like the sophons used by the Trisolarans to block Earth’s technological progress, firmly positioning themselves at the forefront of human chip technology development. Because of this, in 1996, 33 countries led by the United States and Western nations signed the Wassenaar Arrangement in Vienna, Austria, which defined the export scope and countries for high-tech products and technologies, including high-end ADCs, which are subject to export controls. China is also one of the restricted countries, with the embargo primarily targeting ADCs with a precision exceeding 8 bits and a speed exceeding 10Msps.
The high-speed, high-precision ADC market has long been dominated by American companies such as TI and ADI. These chips are irreplaceable in fields such as communications, radar, and precision instruments, making them a key aspect of U.S. technology control. TI and ADI maintain market monopoly and high profits through technological barriers.
Among domestic ADC companies, Zhenlei Technology and Huawei HiSilicon hold an absolute advantage in China, achieving world-class performance in high-speed and high-precision parameters, breaking through the embargo line, and standing in the absolute first tier.
In terms of high-speed indicators, Zhimingda’s affiliated companies, Mingkesi Micro and Xunxin Micro, along with Shanghai Beiling, have products that have broken through the embargo line; in terms of high-precision indicators, Xinhai Technology, Jinghua Micro, Naxin Micro, and Shengbang Micro have products that achieve 24 bit precision.
Among the many listed companies in China producing ADC products, Zhenlei Technology has achieved the highest speed and precision in its ADCs.
Zhenlei Technology was established in September 2015, focusing on the research, development, production, and sales of RF front-end chips, microsystems, and modules. It was listed on the Shanghai Stock Exchange’s Sci-Tech Innovation Board on January 27, 2022. The company’s products are widely used in wireless communications, satellite internet, military radar, and other fields, making it one of the core suppliers of RF chips in China’s special industries. Its main revenue sources include: power management chips (50.10%) and RF transceiver chips and high-speed, high-precision ADC/DAC chips (39.47%).
Due to breakthroughs in high-speed, high-precision ADCs, Zhenlei Technology has firmly grasped the core technology of phased array systems and has laid out a complete process for phased array chips, allowing for rapid customization and combination based on usage scenarios. It is currently the most comprehensive and technically robust entity in the national and even global phased array industry chain.
On September 21, Zhenlei Technology announced that its actual controller and chairman, Yu Faxin, was subjected to detention measures by the Huangshi Municipal Supervisory Committee and was temporarily unable to perform his duties. As a result, the company’s stock price experienced a significant drop. On October 1, the company announced that the actual controller and chairman, Yu Faxin, had been released from detention and could now perform his duties normally.
It is foreseeable that with its profound technical foundation and comprehensive strategic layout, Zhenlei Technology will gradually grow alongside the development of the phased array industry in the coming years, becoming the king of phased arrays.