Recently, local MCU supplier Xinwang Microelectronics announced that its cumulative shipments of KungFu core automotive-grade MCUs exceeded 100 million units, becoming the first local MCU company in China to officially announce that it has reached this milestone, triggering a stir in the automotive industry chain. widespread attention.
During the epidemic, due to mainstream automotive-grade MCU suppliers' misjudgments of industry development, they artificially reduced production. Subsequently, industry chain companies encountered emergencies such as snowstorms and fires, which exacerbated the supply shortage of automotive-grade MCUs. Some material numbers The spot market price once surged to more than a thousand times the normal price, causing OEMs to find it hard to find a single core and be forced to reduce production.
What makes Chinese OEMs most passive is that the initiative of automotive-grade MCUs is not in the hands of Chinese companies. It is greatly restricted by the international supply chain. The local automotive industry urgently needs to achieve "MCU freedom". Against this background , a group of MCU companies with leading technologies have invested in the automotive track, and the recent milestone announcement of Xinwang Microelectronics undoubtedly shows that Chinese companies have made important progress in the domestic layout of automotive-grade MCUs.
Automotive MCU Domestic layout situation is urgent
MCU (Microcontroller Unit), commonly known as single-chip microcomputer, integrates central processing unit, memory, counter, USB, A/D conversion, UART, PLC, DMA and other peripheral interfaces. Compared with other core processors, it is extremely cost-effective and difficult to develop. It has the characteristics of low cost and flexible application, and is widely used in scenarios equipped with embedded systems such as automotive electronics, consumer electronics, and industrial control.
As the semiconductor industry chain accelerates its shift to China, a number of domestic MCU companies have emerged, such as Silan Micro, BGI, GigaDevice, etc., and have occupied a certain market position in consumer electronics and other fields. According to Omdia statistics, domestic MCU The market localization rate has increased from 6% in 2019 to 15% in 2021.
According to statistics from IC Insights, automotive electronics is the largest application market for MCUs, and this proportion has continued to increase in recent years, from 33% in 2019 to about 40% currently. Moreover, compared with the consumer market, automotive electronics Class MCUs have higher premium space.
However, in the automotive field, due to high entry barriers, high R&D investment, and long product certification cycles, the localization rate of my country's automotive-grade MCUs has never been high. IHS analysis believes that as of 2021, it will still be less than 5% (globally less than 2 %). In addition, in the past, the local automobile industry was large but not strong, and foreign brands and joint venture brands deeply trusted international manufacturers, which also made local MCU companies cautiously enter the automobile market.
However, from the second half of 2020 to the first half of 2023, the epidemic was combined with multiple factors such as snowstorms and fires, and there was a serious supply shortage of automotive chips around the world. Automotive-grade MCUs were among the hardest hit areas, severely affecting auto companies. The normal production of China's automobile supply chain has also made China's automobile supply chain see the importance of localization of automobile chips.
At the same time, the global automobile industry is currently experiencing changes in electrification and intelligence that have not been seen in a century. Fortunately, taking advantage of the opportunity of technological upgrading in the automobile industry, a large number of local automobile companies such as BYD, NIO, Ideal, Xpeng, and Wenjie have rapidly The rise has led to the simultaneous rapid growth of local automobile brands such as Geely, BAIC, SAIC, Changan, Great Wall, and FAW. China's new energy vehicles not only lead the world in production and sales, but also lead the world in core technologies such as "three electrics" and the integrity of the industrial chain. Leading the world, providing unlimited space for the introduction of local car-grade chips.
According to data from the China Association of Automobile Manufacturers, in 2023, my country's automobile production and sales exceeded 30 million units for the first time, ranking first in global automobile production and sales for 15 consecutive years; at the same time, the production and sales of new energy vehicles in that year completed 9.587 million units and 9.495 million units respectively, year-on-year respectively. Growth rates were 35.8% and 37.9%, ranking first in the world for nine consecutive years. Industry forecasts indicate that my country's automobile production and sales will continue to stand at 30 million units in 2024, and sales of new energy vehicles are expected to reach 12.5 million units, continuing to lead the electrification and intelligent transformation of the global automobile industry.
This round of automotive technology upgrading has simultaneously promoted the process of automotive electronics, and there is an increasing demand for automotive-grade chips. In addition to incremental chips such as IGBT and SiC, MCUs have also benefited from continued growth.
According to data from the China Marketing Association, traditional fuel vehicles require about 70 ECUs, and luxury fuel vehicles require about 150 ECUs. Driven by electrification and intelligence, the demand for ECUs in new generation vehicles has increased to about 300. It is more than four times the demand for fuel vehicles, driving the growth of the overall market.
It is worth noting that each ECU needs to be equipped with at least one MCU, from the engine control unit to control units such as power windows, wipers, power seats, air conditioners, front and rear lights, fans, and water pumps; from the body powertrain to Body control, infotainment, assisted driving, etc., all have MCUs.
It can be predicted that with the development of the new energy vehicle industry, the demand for automotive-grade MCUs is growing rapidly. According to Omdia data, the domestic automotive-grade MCU market is expected to grow from US$2.59 billion in 2022 to US$3.65 billion in 2026. USD, with a compound annual growth rate of 8.92%, significantly higher than the overall growth rate of the global MCU industry of 5.8%.
At the same time, how to break the absolute monopoly of the six companies Renesas, NXP, Infineon, Texas Instruments, Microchip Technology and STMicroelectronics in the automotive-grade MCU market (which will collectively occupy about 98% of the global market share in 2021) status? How to build a safe, robust and reliable local car-grade automotive chip supply system including MCUs? These two soul tortures were quickly placed in front of the Chinese automobile industry.
Native MCU Enterprises take advantage of the trend
The automotive chip shortage that started in the second half of 2020 and lasted for three years provided an excellent opportunity for Chinese MCU companies to introduce their products into the high-end automotive market. Local companies such as Xinwang Microelectronics quickly increased their investment or entered the automotive market. During this period, the domestic automotive-grade MCU market has shown a situation in which a hundred flowers are blooming.
At the same time, national and local governments have also introduced relevant policies to support the development of MCU and other automotive chip industries, and provide all-round support from the dimensions of core technology innovation, safety standards, data privacy and network security, and sustainable development, such as Shenzhen In the "Several Measures of Shenzhen City to Promote the High-quality Development of New Energy Vehicles and Intelligent Connected Vehicle Industries" released, it is particularly emphasized that: the use of "horse racing system" and "unveiling the leader" and other methods to encourage high-end microcontrollers (MCU) and other automotive chips Achieving independent breakthroughs and providing results transformation assistance to companies that have made innovative breakthroughs has greatly accelerated the development of the automotive chip industry.
The government also encourages vehicle companies to actively participate in automotive chip investment and layout, and supports the establishment of automotive chip expert groups and industry alliances. Driven by benefiting policies, OEMs have participated in the construction of automotive chip supply systems such as MCUs through self-construction, joint ventures, investment and equity participation. Among them, BYD develops its own MCU chips through its subsidiary BYD Semiconductor; SAIC Motor and Xinwang Microelectronics jointly develop high-end MCUs and realize industrialization; Dongfeng Motor, Geely Group and other car companies also realize MCU layout through equity participation.
With the joint efforts of the industry chain, local automotive-grade MCU chips have achieved rapid breakthroughs, and new products have been launched one after another. According to incomplete statistics,
When the shortage of automotive-grade MCUs gradually intensified in early 2021, only 9 local companies, including the KF8A/KF32A series of Xinwang Microelectronics, have achieved mass production and launch of automotive-grade MCUs in China. A total of 15 automotive MCUs have been launched.
By 2022, in terms of new products alone, as many as 17 local companies have launched at least 24 new automotive-grade MCU products, including the two major series of KF32A146 and KF32A136 of Xinwang Microelectronics. Local automotive-grade MCUs are gradually Make your mark in the car market and get more and more car opportunities.
As the cooperation between enterprises and local OEMs continues to deepen, local automotive MCU products and technologies are quickly recognized by the market, and the application fields have gradually moved from conventional scenarios such as car windows and light control to core areas such as engines and "three electricity" management. Domestic Automotive-grade MCUs have also officially begun to be put into cars on a large scale. For example, Xinwang Microelectronics products have entered Aptiv, Huayu Automobile, Top Group, Aoteka, Bethel, Yingboer, Huayang Group, Xingyu The supply chain system of many well-known auto parts manufacturers such as Co., Ltd.
Core technology helps Xinwang Microelectronics stand out
As mentioned above, the three-year automotive-grade MCU core shortage has made China’s automotive industry chain realize the importance of building a self-built supply chain system. A group of local MCU companies have taken advantage of the rise of the local automotive industry to deploy automotive-grade MCUs. In the market, according to incomplete statistics, during the peak period, dozens of companies officially announced the development of automotive-grade MCUs.
However, there are not many local MCU companies that can truly achieve large-scale shipments, and Xinwang Microelectronics is one of them.
2022, the year when new domestic automotive MCU products are launched intensively, is also the first year for local companies to launch MCU products on a large scale. Public data shows that the revenue of Xinwang Microelectronics automotive grade MCUs soared from 810,600 yuan in 2020 to 2022. 57.5578 million yuan in 2021, a year-on-year increase of 71 times. By 2022, sales have reached 38.4161 million units, and revenue soared 3.87 times to 223 million yuan. Calculated based on the domestic automotive-grade MCU market size of approximately 17.7 billion yuan that year, Xinwang Microelectronics' domestic market share in 2022 will reach 1.26%, making it the company with the highest market share among local automotive MCU companies that have disclosed data.
Judging from the data disclosed by various local companies, Xinwang Microelectronics is in the leading position in automotive grade MCU shipments. Based on the current official announcement of 100 million units, Xinwang Microelectronics' shipments in 2023 will be approximately 44 million units, maintaining a growth rate of 16% during the downturn of the economic cycle. Standing out among enterprises is inseparable from its first-to-launch advantage. When the company was founded, it invested resources in launching the research and development of the KungFu core to get rid of the constraints of commercial IP and core ecology on products. Since 2015, it has started the technology and development of automotive-grade MCUs. Product R&D is one of the early local MCU companies in the country to enter the automotive market. With the first-mover advantage, when Xinwang Microelectronics’ automotive-grade MCU shipments exceeded 50 million units, some companies’ products have not yet achieved mass production.
During the long-term accumulation, Xinwang Microelectronics has formed a rich accumulation of high-reliability design technologies, such as system reliability design, clock reliability design, storage reliability design, I/O reliability design, and anti-interference reliability. design, high temperature resistant design, etc.
It should be particularly pointed out that the KungFu simplified instruction set independently developed by Xinwang Microelectronics has the characteristics of high code density, flexible data assignment, high compilation efficiency, and rich instructions, so that Xinwang Microelectronics will not be subject to third-party IP authorization restrictions. ; The corresponding MCU core developed has the characteristics of high performance, high reliability, high security, and low power consumption.
Self-developed MCU instruction set and core, in the long run, Xinwang Microelectronics has lower post-development costs, higher cost performance and market competitiveness; at the same time, the market response speed is faster, allowing Xinwang Microelectronics to adapt to different terminal scenarios According to the demand characteristics, iteratively upgrade the KungFu kernel to quickly achieve product upgrades. Currently, Xinwang Microelectronics has achieved full coverage from 8-bit to 32-bit, from single-core to multi-core based on the KungFu core.
At the same time, taking advantage of the shortage of automotive-grade MCUs, Xinwang Microelectronics has tilted the company's resources towards the automotive product business, taking the lead in mass-producing 8-bit and 32-bit automotive-grade MCU products in 2019 and 2020 respectively, and passed the AEC- Q100 reliability certification, IATF 16949 automotive industry quality management system certification, ISO 26262 automotive functional safety ASIL-D level R&D process certification and ASIL-B product certification, with a systematic and complete automotive grade chip development process and quality control system, providing the company with It provides important support for product development and further development of the automotive electronics market.
Automotive-grade MCUs are also used in batches by Tier 1, Tier 2 and other parts suppliers in SAIC, FAW Group, Changan Automobile, Guangzhou Automobile Group, BYD, Geely Automobile, Dongfeng Motor, Great Wall Motor, Chery Automobile, Li Auto, and Xpeng Many well-known domestic and foreign automobile brand manufacturers such as Automobile, Volkswagen, and Hyundai Motor have not only been applied in body control systems, infotainment and network systems, and safety and comfort systems, but also in the fields of assisted driving systems, power and chassis systems. Its revenue in the automotive field accounts for 71.23% of its main business in 2020, soaring rapidly from 0.82% in 2020 to 71.23% in 2022. Compared with other listed MCU companies, Xinwang Microelectronics is the only automotive-grade MCU revenue that accounts for than more than 50% of enterprises.
It is worth noting that in order to speed up the safety, independent controllability of the local automotive-grade MCU supply system, Xinwang Microelectronics continues to increase investment in the research and development of automotive-grade MCU technology systems, such as high-functional safety MCUs based on the independent KungFu32DA core, KungFu32DA The core is a completely self-developed multi-core system DSP processor with a single-core performance exceeding 600DMIPS; KungFu32DA will become the technological peak of high-performance independent cores. In terms of tool software development ecology, Xinwang Microelectronics continues to invest in R&D on compilers, continuously consolidates basic technology, and builds a technical base for a fully independent development ecology; at the same time, the self-developed MCU underlying software architecture can realize the AutoSar software platform and non-AutoSar The unified integration of the platform provides users with efficient software services. A series of R&D investments will further enhance the market competitiveness of Xinwang Microelectronics.
On this basis, Xinwang Microelectronics also plans to extend the automotive-grade chip product system from MCU to signal chain and radio frequency SoC chips. With its leading position in the localization of automotive-grade MCU, it will lead local companies to promote the domestic layout of automotive chips. process and continuously improve independent and controllable capabilities.
Source: Jiwei.com
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