Espressif Systems (688018.SH) disclosed in the investor relations activity record that the proportion of modules decreased from the previous quarter's highest proportion of 66.6% to 56.7% in Q1, but slightly increased to 58.6% in Q2. Overall, the growth rate of chip sales is higher than that of modules. Firstly, there is a rapid growth in handheld miniature equipment such as beauty devices and electric toothbrushes, which mainly use chips due to their small size. In addition, the competitive landscape has improved, and downstream module factories have selected Espressif Systems chips for more customer projects when expanding their business, and the role of module factories in the industry chain is to directly purchase chips for module production, and their business expansion will drive chip sales. Currently, the proportion of modules has been stable in the range of 55%-60% for four consecutive quarters and may have reached a new balance.