Fuman Microelectronics Group Co., Ltd. (stock abbreviation: Fumanwei, stock code: 300671) held the 2021 Annual General Meeting of Shareholders, and reviewed and voted on relevant proposals. Its institutional shareholders participated in the general meeting and voted in favor of relevant proposals.
After the meeting, Liu Jingyu, chairman of Fuman Micro, and Luo Qiong, the secretary of the board of directors, communicating with a number of shareholders including Aiji Micro on the company's development and related issues.
Display driver IC is out of stock, Q1 inventory is nearly 400 million yuan
According to the data, Fuman Micro is a national-level high-tech technology enterprise and an integrated circuit design enterprise within the national planning layout focusing on the design, development, packaging, testing, and sales of high-performance, high-quality analog integrated circuit chips. At present, there are 4 categories of products on sale, mainly covering video display, wireless communication, storage, power management, and other fields. The main products are LED screen control and driver, MOSFET, MCU, fast charging protocol chip, 5G RF front-end discrete chip And module chips, as well as various ASIC chips, products can be widely used in consumer electronics, communication equipment, industrial control, automotive electronics, and other fields, as well as the Internet of Things, new energy, wearable devices, artificial intelligence, smart home, Smart manufacturing, 5G communications, and other emerging electronic product fields.
When Aijiwei participated in the Fumanwei shareholders meeting in Q4 last year, Liu Jingyu's view on the market supply and demand of display driver ICs at that time was, "The market recovery is more rational, and downstream manufacturers are more cautious in stocking in Q4 in 2021 than in Q2. With the LED market The demand adjustment has also affected the price changes of its driver ICs, and the original factory and agent LED driver ICs have accumulated a certain level of inventory, and the current focus is on destocking, so the price of LED driver IC products has declined slightly.”
Today, the supply and demand situation of Fuman Microdisplay driver IC market has changed. At this shareholders' meeting, Liu Jingyu said, "The display driver IC is currently out of stock. Our order volume is greater than the long-term volume. The production capacity and sales will gradually recover in the third quarter."
From the financial data of Q1 in 2022, Fuman Micro achieved an operating income of 276 million yuan in Q1, but the inventory increased from 373 million yuan in Q4 last year to 394 million yuan in Q1 this year. Regarding the increase in inventory, Liu Jingyu said that the increase in the inventory of Fuman Micro in Q1 is mainly due to the increase in the stocking of wafers for power management chips. "In the second half of the year, we have new products coming out. Because we were stuck on the key of wafer shortage last year, we have prepared a large amount of wafer inventory in advance to ensure at least half a year's safety stock."
Judging from the 2021 financial report data, the company's prepayments at the end of 2021 increased by 754.79% compared with the end of 2020, a large part of which was due to the increase in prepaid wafer payments.
5G RF chips have been mass-produced, but wafer capacity is still in short supply
At present, there is basically no shortage of LED driver IC products on the market. At a time when the fundamentals have changed, Fuman Micro has launched a fixed increase plan of 900 million yuan at the end of 2021, which will greatly expand 5G RF chips, LED chips, and Power management chips.
It is reported that Fuman Micro 5G RF chips include RF switches, RF tuners, RF module chips (including filter integration), etc. According to Luo Qiong, "5G chips can also be used in communication modules, CPE, routers, locators and other related products in addition to mobile phones. The company's 5G chip product series can be benchmarked against international giants, such as Skyworks, Qorvo, etc., and in some specific product parameters performance enhancements using proprietary technology.”
Fumanwei previously mentioned at the performance briefing that 5G chips have been mass-produced, and the delivery of some of the company's products will be affected by insufficient wafer capacity.
Regarding the market demand for 5G radio frequency chips, Liu Jingyu said, "At present, low-end 5G radio frequency chips are developing in a good direction, and many customers are constantly confirming them. After confirming that big manufacturers like Transsion have their own rhythm, they may not have Immediate volume. These big manufacturers will gradually introduce them into their products after long-term verification. But products such as network cards are in use, so the overall shipment volume is gradually increasing.”
Regarding the market positioning of 5G radio frequency chips, "Our 5G radio frequency chip products are the high-end radio frequency product line of Zhuosheng Micro." Liu Jingyu revealed, "Not only 5G, but also will enter the router market in the second half of the year. The research and development of WIFI5 and WIFI6 in the router field have been It is basically completed, and it will enter this market in the second half of the year.”
According to the secretary of the board of directors, Fuman Micro has added a new leased plant for the production of radio frequency chip products, and the subsequent plant under construction will be used to expand the production capacity of 5G radio frequency chips.
Previously, Fuman Micro raised funds to invest in the construction of 5G RF chip projects. Regarding the progress of the project, Fuman Micro said, "Currently, it is a Pingshan packaging and testing factory project with a built-up ground area of 9,741 square meters, and the foundation pit support will be completed in 2021. It is expected to complete the main civil works in 2022. The company will add 5G RF chips and other related packaging production lines; expand the production capacity of small-pitch LED screens and power management chips.”
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