The focus of the capital market is turning to the domestic semiconductor industry. Many companies have achieved rapid growth with the help of core technologies, and their stock price performance has attracted the attention of many investors. Who are the major players in this field? How is their business? What are the growth drivers?
Changdian Technology’s leading position in packaging
Changdian Technology, which occupies a leading position in integrated circuit packaging and testing in mainland China, was listed on the Shanghai Stock Exchange in 2003. The company mainly provides a series of one-stop services such as chip packaging, testing and module assembly for global customers. Its technical capabilities cover a variety of advanced packaging types.
In 2024, the company's total operating revenue reached 35.962 billion yuan, an increase of more than 21% compared with the previous year, showing a strong growth trend. This achievement is due to the shift in the global semiconductor industry chain. At the same time, the company continues to invest in advanced technologies such as high-density system-level packaging, thus consolidating its leading position in the global packaging and testing market.
GigaDevice’s innovative storage and MCU layout
In 2016, GigaDevice was listed on the Shanghai Stock Exchange. Its core business covers flash memory chips, microcontrollers and sensors. The company's NOR Flash products occupy an important share in the global market, and its GD32 series MCU has become a mainstream domestic brand.
Thanks to the explosion of downstream demands such as the Internet of Things and automotive electronics, the demand for storage and control chips has always been booming. GigaDevice Innovation has effectively resisted periodic fluctuations in the storage industry with its diversified product lines, and the underlying inventory technology it developed has also laid a solid foundation for its long-term development.
Montage Technology’s Interface Chip Market Segment
Montage Technology, which focuses on the data center field, was listed on the Shanghai Stock Exchange Science and Technology Innovation Board in 2019. Its main product is a memory interface chip, which is used to improve the data rate and stability of server memory subsystems. Montage Technology is a key supplier in this market segment.
In the context of the wave of artificial intelligence and cloud computing, the demand for servers has increased dramatically, which has directly boosted the demand for Montage Technology products. The company has maintained high technical barriers and gross profit margins by iteratively operating DDR5 generation products, and its Jintide server platform has also expanded its business boundaries.
Dongxin's small and medium-capacity storage market
Dongxin Co., Ltd. focuses on the niche storage market and mainly designs and sells small and medium-capacity flash memory chips. It will be listed by the end of 2021. The company's products are widely used in fields that have high requirements for reliability, such as network communications, security monitoring, and industrial control.
In 2024, its operating income will be 641 million yuan, an increase of 20.8% compared with last year. Although the compound growth rate in the past five years is negative, which reflects the fierce market competition and price pressure, the company has been delving into specific fields and has still found room for survival and development.
The differentiated paths of Puran Co., Ltd. and Beijing Junzheng
In China, Puran Co., Ltd. is an important non-volatile memory chip design company. It went public in 2021. Its main business is NOR Flash and EEPROM. These chips are widely used in mobile phones, wearable devices and automotive electronics, and the market space they occupy is very broad.
Beijing Ingenics, which is following the integration path of "computing + storage + simulation", was listed on the Shenzhen Stock Exchange in 2011. After acquiring a rich memory chip product line through the acquisition of Beijing Silicon, the company has combined its original microprocessor technology to provide comprehensive solutions for the automotive and industrial markets.
The industrial chain roles of Shannon Core and Longsys
Shannon Core, which is mainly engaged in the distribution of electronic components, was listed on the Shenzhen Stock Exchange in 2015. It serves as an industrial chain circulation hub connecting upstream chip original factories and downstream manufacturing companies. Its revenue will surge by 115.4% to 24.271 billion yuan in 2024, reflecting its strong channel capabilities and market expansion speed.
Longsys specializes in semiconductor storage application products, such as solid-state drives and memory sticks, and its brand contains "Lexar". The company will go public in 2022. Through brand operations and system-level research and development, it has established influence in the consumer-grade and industrial-grade storage markets, achieving industry chain coverage from chip design to brand sales.
After examining these semiconductor companies with different business focuses, under the current background of international competition and technological catch-up, which development model, that is, the one that focuses on segmented technologies or the one that carries out platform integration, will be more competitive in the long term? Welcome to share your personal insights in the comment area.
