How can MCU semiconductors turn the tide?

Holtek’s off-season in the off-season was not thin, and the company’s top executives said that although the base period is higher, it is estimated that the quarterly revenue growth rate for this quarter will still be 5% to 10%, reflecting the traditional peak season effect.

Holtek is a major manufacturer of domestic consumer electronics and microcontrollers (MCUs). Its stock price fell by 0.05 yuan to close at 35.75 yuan on the 22nd. In the first quarter of the season, Sheng Qun’s financial report was not weak during the off-season. The consolidated revenue was 893 million yuan, the quarterly revenue was increased by 3.4%, and the after-tax net profit was 150 million yuan, which was a significant increase of 27.2% from the previous quarter. The first quarter earnings per share was 0.67. yuan.

Due to the traditional peak season for consumer microcontrollers this season and the fact that Holtek's home appliances and smart meters in Mainland China have adopted a 32-bit MCU with higher gross margins, the company said that its revenue for the quarter will grow at least 5% to 10%.

Sheng Qun said that in the traditional peak season, April’s revenue was 345 million yuan, a monthly increase of 2.67%, and the revenue in May and June can still maintain the level in April. The main application of this wave of demand is small household appliances, except for mainland China. Orders from Russia for electric pots and electric heating are also stronger than before.

Sheng Qun said that this year as a whole, revenue will increase slightly compared to last year, as the company's products are transferred to a higher gross profit 32-bit MCU, this year's profit growth will be greater than the annual increase in revenue.

Holtek's growth product line this year comes from four major blocks, namely home appliances, machine tools, healthcare and instrumentation, among which touch-control chips and mobile power have grown the most.

Sheng Qun pointed out that last year, the number of touch IC shipments was about 25 million, and this year it is expected to continue to grow by 30 to 50 percent. Shipment volume will see more than 30 million shipments, and shipments of mobile power-phase products reached 700 last year. Millions are expected to double this year.

Electronic enthusiast network editor:

Domestic demand for small household appliances continued to rise, and the group's off-season growth in the off-season. Taiwan Group's Holtek MCU manufacturer Focused on the consumer sector, due to its long-term consumer-level application strategy, the benefits are further amplified during the off-season and it is expected that this year's revenue will perform well.

However, due to its long-term commitment to consumer ICs, it also brought long-term growth pressure to Holtek. Looking at the traditional consumer market is already a piece of the Red Sea, general MCU profits have been compressed again and again, in view of this, the international traditional MCU manufacturers - South Korea's Samsung Electronics, Japan's Fujitsu are eager to get rid of this hot potato.

In fact, according to my earlier interview with Mr. Cai Rongzong, general manager of Holtek Semiconductor Sales, Holtek intends to mobilize the 32-bit MCU market, and has achieved initial results, and successfully obtained orders for Argentine motor control in South Latin America. Undoubtedly, in the future, MCU incremental wave, relying on the transfer to the higher margin 32-bit MCU applications.

It is not difficult to analyze, in this ever-changing MCU market, the past is not enough to support the future development needs. The domestic manufacturers led by Shengqun should have far-sighted wisdom. Under the premise of consolidating dedicated and some key general-purpose MCUs, they will again expand new markets, such as smart systems, smart industry, smart energy, Internet of things, and automobiles. ADAS and so on. Current touch, motor control, and safety are good entry points. As for the 8-bit, 16-bit, 32-bit MCU and even processor business? What kind of strategy is adopted, then each manufacturer will combine its own situation and make adjustments according to the current circumstances.

This article analyzes the combination of domestic MCU vendors and cuts into the MCU's current market. The above analysis represents only personal opinions.