As we all know, the main business of Shenzhen Maijie Microelectronics, a local listed company, is R&D, production and sales of new passive Electronic components such as chip power inductors, RF components and LCM Display module devices, and provides technical support for downstream customers. Services and components overall solutions, the main products include a variety of specifications of inductors, filters, LCM Display modules, Inductor transformers, etc., widely used in mobile communications, consumer electronics, military electronics, automotive electronics, Internet of Things application products, Computer, industrial equipment, LED lighting and other application fields.
Recently, they issued a prospectus for issuing stocks to specific objects and listing on the Sci-tech Innovation Board, stating that the company will issue stocks to specific objects and list on the Growth Enterprise Market. The total amount of funds raised does not exceed RMB 1,390 million. Used for the following items:
Among them, the company’s investment in the expansion of RF filters has attracted much attention from the author.
According to the company, this project is implemented by the parent company Maijie Technology, and the construction site is located at the southeast corner of the intersection of Keji Road and Hongjing Road, Pingshan District, Shenzhen, which is the company’s existing land. This project plans to build a 4-storey factory building in the company’s headquarters base park in Pingshan District, Shenzhen, with a planned construction area of 16,456 square meters. After the factory building is completed, the company will introduce a series of supporting equipment for LTCC RF components and SAW Expansion of filter products. The total investment of this project is 475.1898 million yuan. The project construction period is 2 years. The project’s designed production capacity is an annual output of 1.1 billion LTCC radio frequency components and 1.4 billion SAW filters. After the project is fully put into production, it is expected to achieve an annual output value of 661.12 million yuan.
They further pointed out that the company has established a complete set of mature design and development process, built a modular design work platform, and established a research and development team integrating design, materials, production, quality management and other multi-link business backbones for key projects. The downstream product needs to quickly propose design plans and material plans, and also through participating in the early design of mainstream chip products to tailor one-stop component solutions for customers, it has the research and development strength of product upgrades and modularization. Based on the accumulation and breakthrough in the field of inductor products and RF filters, the company will easily enter the design, R&D and production of RF front-end modules, extend the industrial chain, and enrich high-end product lines such as TC-SAW and BAW.
Based on the development needs of the main business at this stage, the company plans to conduct research and development in the fields of high-performance filter design algorithm platform research, mobile terminal RF front-end module research and development, and raw material basic research and development through this R&D center construction project. The R&D directions in various fields are as follows:
1. Research and development of high-performance RF filters
The research and development direction of high-end RF components is mainly TF-SAW filter. The research and development goal is to design a filter whose working frequency covers the SUB-5G communication working frequency band specified by the world, build a TF-SAW basic algorithm design platform, and make the company in the filter foundation. Under the guidance of theory, based on its own material parameters and process platform parameters, establish its own algorithm design platform, form the algorithm platform of the full intellectual property series of Maige Technology, and lay a solid foundation for the rapid iteration of the company’s high-end filters.
2. Research and development of RF front-end modules for 5G mobile terminals
The R&D content of the RF front-end module is to integrate the RF filters, low-noise amplifiers and switches of various 5G frequency bands, and finally form a 5G RF front-end module, which is mainly used in the receiving line of mobile phone 5G MIMO. Specifically, it includes: developing 5G surface acoustic wave (SAW) filters below 3GHz, 5G N77/N78/N79 low-temperature co-fired ceramic (LTCC) filters and microwave LTCC low-loss materials, and establishing the corresponding “product design platform database” and “Process platform database”; develop 5G N77/N79 frequency band radio frequency front-end modules (RFFEM) on the basis of further improvement of core products, and build a solid foundation for the company to establish a complete 5G RFFEM industry chain.
3. Platform research and development in the field of basic materials
Material research and development is the basis for supporting the research and development and production of high-end components. The company is committed to building and consolidating its core competitiveness in the formulation and application of basic materials, and building a material R&D and application platform to promote rapid R&D iteration and rapid mass production of new products. The R&D content of the company’s R&D center construction project in the field of materials mainly includes: A. R&D of high-frequency and low-loss ceramic materials. According to the product requirements of LTCC RF components based on the performance of the N77/N79 part of the 5G RF frequency band, develop ultra-low loss and low temperature sintered ceramic materials in a higher frequency range; B. Research and development of soft magnetic alloy materials. In order to meet the needs of 5G mobile terminal power management chips for high frequency, high saturation, small size and high-end integrated composite power inductors, it is imperative to develop a new generation of soft magnetic materials with high Bs, high u, high frequency and low PCV; C. Establish a material database and build a material algorithm platform. On the basis of massive material formula experimental data, first principles are used to establish a material formula calculation platform, and a material research and development database and data use methods are established, so that the speed of material development is continuously shortened.
The company stated that the difference between the R&D center construction project invested by the funds raised this time and the company’s existing R&D projects is mainly in that the R&D direction is more focused on the development of basic algorithms, system simulation and basic materials, and the R&D activities are more targeted in 5G. more depth and breadth. On the one hand, the company aims to upgrade product materials and production processes through the construction of this fundraising and investment R&D center, so that the new products such as integrated composite power inductors and high-end filters to be developed will be more in line with the performance of 5G mobile communication systems. On the other hand, the company increased investment in research and development through this fund-raising, carried out technical extension and reserves in downstream RF front-end modules and upstream material technology, and improved research and development efficiency and product iteration by establishing an efficient algorithm platform and material research platform. speed, so as to further expand and integrate the industrial chain.
Talking about the future, Maijie said that the company will continue the company’s current research and development direction through the construction of the R&D center project, strengthen technical reserves in the fields of TC-SAW, BAW, RF front-end modules, etc., introduce and iterate new products, and improve the overall solution. advanced and reliable.
Reasons to invest heavily in the RF industry
According to the announcement, the process of RF components is relatively difficult. At present, the main suppliers are Murata, Kyocera, TDK, Taiyo Yuden, and Bosch and CTS in the United States. The domestic supply and demand are seriously unbalanced. According to statistics from Zhiyan Information, the market demand for SAW filters has continued to rise since 2014, and the domestic market size will reach 17.1 billion yuan in 2020, an increase of 6.2% over the previous year. Among them, in 2018, the consumption of SAW filters in my country was 15.12 billion, the output was 504 million, and the localization rate was only 3.3%. Under the premise of increasing uncertainty in trade frictions, in order to break the monopoly of American and Japanese companies, there is an urgent need for domestic mobile phone manufacturers to introduce domestic filter manufacturers. The domestic replacement of RF components has become the main topic of the 5G industry chain, which also provides good development opportunities for domestic RF device manufacturers.
The company has been focusing on the research and development and application of LTCC technology. At present, it has successfully mastered the production technology and process of SAW and LTCC RF filters. It has passed Qualcomm, MTK and Spreadtrum platform certification, and successfully imported well-known major customers such as Wingtech, Huaqin, etc. And mass production and sales. The implementation of this project will further expand the production capacity of the company’s SAW filters and LTCC radio frequency devices, laying the foundation for the company’s product line to further expand to radio frequency front-end modules. It will help to seize market share, improve the company’s profitability, achieve sustainable business development, and then achieve the company’s strategic goals.
They further pointed out that with the comprehensive acceleration of 5G construction, the consumption of smart terminals is being upgraded, more manufacturers are targeting mid-to-high-end products, and the increase in intelligent demand has also made smart terminals more and more demanding on the number, performance and reliability of filters High, the filter market demand will maintain rapid growth. According to the statistics of QYR Electronics Research Center, the global RF filter market size increased from US$2.11 billion to US$8.361 billion in 2011-2018, accounting for about 56% of the overall RF front-end industry. The compound growth rate is as high as 21.2%.
On the 5G equipment side, the market demand for filters on the mobile communication equipment side is dominated by SAW/BAW. 5G full Netcom mobile phones that support SA/NSA will add 6 RF front-end modules, corresponding to 15-20 new LTCC RF components. , including LTCC bandpass filtering, baluns, couplers, duplexers, etc., Gartner data shows that the value of 5G mobile phone single-device filters will increase from $6.5 to $15.3, an increase of 135%. According to Skyworks forecast, about 30 frequency bands need to be supported in 5G mobile phones, and at least about 72-75 RF filters are required for a single 5G smartphone, which is at least about 40 higher than that of a 4G smartphone (using 40 as the calculation standard). 80%.
On the 5G base station side, the LTCC filter has a broad application space. According to a conservative calculation of 1.2 times that of the 4G base station, the total number of 5G domestic base stations is about 6.53 million (the construction period is 2019-2026), and the number of global base stations in the same period is about 13.06 million. The unit price of filters during the supply period of 5G filters will drop by 15%/year. The domestic 5G base station filter market space is 36.92 billion yuan (1.56 times that of 4G), and the global market is about 73.85 billion yuan.
The production threshold of filters is relatively high. At present, domestic manufacturers have problems such as low product technology level, small production scale, and insufficient investment in technology development. Through this fundraising, the company will increase the production capacity of filters and increase the shipment scale of RF devices, which will make up for the lack of domestic manufacturers in the field of high-end components to support downstream high-quality customers, participate in the process of domestic substitution of well-known manufacturers, and create a new era of 5G. profit growth point, seize the high-quality track, and enhance market competitiveness.
Maijie said that through the implementation of these projects, the company will keep up with the industry trend, improve its business layout, and further build competition barriers. While the number of RF front-ends is increasing, in order to save space, they are gradually moving towards modularization. The global industry leader Broadcom’s product development path is from discrete RF front-end devices to single PA modules to multi-band PA module integration. Well-known RF front-end companies such as Skyworks, Qorvo, and Murata have also launched multiple types of RF front-end modules. product. According to Yole’s forecast, the market size of smartphone RF front-end modules and components will increase from US$15 billion in 2017 to US$35 billion in 2023, with a compound annual growth rate of 14%, of which discrete devices and RF modules share market share, accounting for The ratio is about 7:3, and mid-to-low-end mobile phones mainly use discrete solutions such as SAW, BAW, and PA. Mid-to-high-end mobile phones have gradually begun to adopt modular solutions. The company’s research and development of modular products will help to increase technical reserves, expand product lines, and further enhance market share and comprehensive competitiveness.