据蒋学明表示，Jiang Xueming, Chairman of East Chip Co., Ltd., stated at the earnings conference that the demand and prices of the company's products are gradually entering an upward trend, but this year's prices have not yet recovered to the level of the same period last year. Jiang Xueming also mentioned that the visibility of orders in the network communication sector in the second half of the year is high, and the bidding by operators is more active. The company has also expanded its product categories, which is an incremental market for the company.
According to The Star Daily on September 4th, "With the adjustment of industry inventory nearing completion in the first half of 2024, the demand for terminal products is gradually recovering. Supported by long-term demand in the fields of automotive, high-performance computing (HPC), and the Internet of Things (AIoT), the semiconductor market is recovering its growth trajectory." Jiang Xueming, Chairman of East Chip Co., Ltd., said this in response to questions from reporters at the earnings conference held by the company today (September 4th).
According to the financial report for the first half of 2024 released by East Chip Co., Ltd. recently, the company's revenue for the first half of the year reached 0.266 billion yuan, a year-on-year increase of 11.12%; the net income attributable to the parent company was -91.12 million yuan, and the scale of loss increased compared to the same period last year.
According to Jiang Xueming, the demand and prices of the company's products are gradually entering an upward trend with the gradual recovery of the industry, but the overall product prices this year have not yet recovered to the level of the same period last year.
However, Jiang Xueming also stated that niche storage products are affected by supply and demand, and with the gradual recovery of demand, it is expected that product prices will gradually recover.
Regarding the market situation in the second half of the year, Jiang Xueming stated at the earnings conference that there is a high visibility of orders in the network communication sector, the surveillance and security market in the second half of the year is basically the same as the first half of the year, and the demand for consumer electronics and industrial control vehicles is currently stable. The overall industry demand is gradually recovering.
Jiang Xueming said, "In the second half of the year, the network communication sector is mainly the operator market. Operators' bidding is more active this year, and the product categories have expanded from PON and GPON to the addition of FTTR, which is an incremental market for us." The company will continue to follow the market closely and focus on the needs and orders of key customers.
Regarding the wearable market, Jiang Xueming stated that they currently see an increase in customer demand and unit price for wearable earphones and smart bracelets. In the future, the company will still adhere to storage as its core business, actively meet customer needs through process updates and product iterations, and enhance the company's core competitiveness.
In terms of product line R&D, in the first half of this year, East Chip Co., Ltd. continued to expand its SLC NAND Flash product series based on the 2xnm process. It announced that the R&D of advanced 1xnm SLC NAND Flash products has made phased progress, and some key indicators have been achieved. To ensure product quality and stable performance, it is continuously optimizing design and conducting technical breakthroughs such as process debugging.
Based on the 48nm and 55nm processes, East Chip Co., Ltd. is also conducting R&D on medium to high-capacity NOR Flash products ranging from 64Mb to 1Gb. The company's DRAM products include DDR3(L), LPDDR1, LPDDR2, PSRAM, and the sampling and market promotion of LPDDR4x are underway. The company has been able to provide customers with high-capacity MCP (Multi-Chip Package Memory) products, such as 8Gb+8Gb and 16Gb+16Gb, mainly used in applications like automotive modules.
It is worth noting that East Chip Co., Ltd., with storage as its core, is exploring the integrated field of 'storage, computing, and connectivity'.
In the Wi-Fi 7 technology field, East Chip Co., Ltd. has newly established a subsidiary named Yixintonggan this year. According to the company, the R&D team of Yixintonggan has members with experience in R&D from leading international or domestic communication chip factories, and is currently advancing the design and R&D of Wi-Fi 7 wireless communication chips, which are still in the R&D stage.
In the GPU field, East Chip Co., Ltd. previously announced its intention to invest in Shanghai Lisan. The latest proposal has been approved by the board of directors, and the investment agreement has been signed. East Chip Co., Ltd. will use its own funds to increase the capital of Shanghai Lisan by 0.2 billion yuan, subscribing to its newly increased registered capital of 5 million yuan, and will hold approximately 37.88% of the equity of Shanghai Lisan after the capital increase. The estimated post-investment valuation of Shanghai Lisan in this round is approximately 0.528 billion yuan.
"Lisan Technology has an established R&D team, and the product development is in the pre-tapeout preparation stage." Regarding the future cooperation prospects, Jiang Xue-Ming stated at the earnings conference that East Chip's DRAM design team can engage in technical exchanges and cooperation with Lisan's graphics rendering chip design team to enhance the design capabilities of both parties. "Through collaborative design, software and hardware adaptation, and process optimization, the two parties can promote optimization and enhancement of product performance, power consumption, and other aspects. They can also combine their respective R&D capabilities to provide customized product development services to customers, thus enhancing the company's core competitiveness."
