1 billion USD: Ceiling of local semiconductor design enterprises

Wenjun, a senior Chinese analyst at the Wang Ruichen Research Institute, last year made a bet with people.　　He said he had a chance of losing. He said last year in Wuxi, he and the Chinese Academy of Engineering, microelectronics technology expert Hu Guyi made a bet.　　Hu Guyi said the Chinese mainland must have more than $1 billion trillion in chip design companies within 5 years, saying he will never show up in 5 years.　　The reason for not appearing, in his view, is mainly because of the number of Chinese enterprises, but are small enterprises, 2006 years or so, the mainland nearly 500 design enterprises of the total income of the MediaTek in Taiwan. "Whenever it grows to a certain extent, it is either bought by the overseas giants or ' holed up in the unified ' to be content with the status quo."　　He told the first financial journal.　　However, a recent trend shows that his bet is likely to lose. Breakthrough revenue ceiling by mergers and acquisitions This is mainly the three latest mergers and acquisitions initiated by mainland Chinese companies. Two of them are China's 3G first share of the city of the acquisition of Mobile Peak (Mopopic) and Thai king.　　Second, August 8, the LAN-tech announced the acquisition of Motorola Chip design department, Motorola and all related chip technology licensing. The acquisition of the exhibition may allow Wenjun to lose in 4 years.　　Earnings data show that the first half of this year, the exhibition revenue of 297 million U.S. dollars, due to the general market season in the second half of the year, the company is expected to become the mainland's first more than 600 million U.S. dollar chip design companies. and its acquisition of the Thai King Technology, will be expected to contribute to a small revenue. Thai King is the world's largest mobile analog TV chip company, 2008 revenue has been around 100 million U.S. dollars, and it acquired Mopopic, the total turnover of 32.6 million U.S. dollars, the exhibition did not disclose Mopopic specific financial data, but stressed that Mopopic business growth is very strong,　　The company is expected to play a huge role in the smart phone business breakthrough this year and next. In the past year, with the help of product and operation mode innovation, the exhibition has grown rapidly. Just released the second quarter of this year, the results show that the sales rose 124.2% Year-on-year, the chain growth of 16.9%. Even if you do not calculate the Mopopic and the revenue contribution, if the 2011 revenue of 600 million U.S. dollars, before 2015 to more than 1 billion U.S. dollars revenue targets, the annual growth rate of the exhibition as long as 20% can.　　such as the growth rate of the past few years, the probability of implementation is very high. "Do I want to lose myself?"　　"It will be very difficult to achieve a leap without the acquisition, integration and complete independence," Wenjun said. However, one of Huawei's Heiss semiconductors disagrees with Wenjun's view.　　He cites 2010 years of research data from Isuppli, said Heiss Semiconductor last year's revenue has reached 800 million U.S. dollars, the company did not like so many mergers and acquisitions, more than 1 billion U.S. dollars. Wenjun said the Heiss data from his research, because Heiss semiconductor orders mainly from the parent Huawei, the growth is more like related transactions, and the exhibition is from MediaTekThe hand seizes the order, it's rapid scale, more has the indicator significance. "Compared to the integration of overseas giants, our mergers and acquisitions, regardless of quality or quantity, are dwarfed."　　"Wenjun said. He cites data that more than 80 mergers and acquisitions took place in the global semiconductor industry only in the design process 2011 years ago, 7 months earlier. Of these, 62 merged the entire company case, about 20 mergers and acquisitions product line and the subdivision business case.　　In this process, the world's top 5 major chip design companies participated in the merger and acquisition war. For example, Qualcomm in the first half of this year has acquired Atheros, Rapid Bridge, GestureTek, of which, only Atheros to spend 3.1 billion of dollars in funds, the general rule has acquired Provigent, SC Square, Innovision,　　Spent about 400 million dollars; Marvell bought Solarflare's product line; MediaTek bought Leiling and top technology for 460 million dollars, and Nvidia3.67 billion bought Icera. To his regret, in more than 80 mergers and acquisitions, the so-called "not bad money" in China's semiconductor companies have only 4 cases. In addition to the above three cases there are new semiconductor to AURAMICRO acquisition.　　In fact, the new semiconductor is not an independent design company. Shanghai, a senior design company said to this newspaper, the country has money, not equal to the enterprise "not bad money." Data show that the acquisition of Mobile Peak 48.44% stake, spent 32.6 million of dollars, the acquisition of Thai King spent 1 million dollars. The new semiconductor bought Auramicro, spending 5.6 million of dollars.　　Compared with foreign giants, the gap between capital strength is very large.　　Wenjun said that although a few companies such as the exhibition has begun to have a certain scale, but in the past 10 years, the local design companies have not been able to transition from "quantity" to "quality", the future to go beyond the more difficult. He said that now the semiconductor industry has become an oligopoly, China's more than 600 design companies are a single product, a single market, not be killed by the price war, is the integration of large companies. Now the external environment seems more uncertain.　　The increase in human costs, the appreciation of the renminbi, tax increases and other factors, has led to the downstream terminal enterprise shipments. Even the exhibition, which continues to eat from MediaTek, faces significant risks. Because, its main product baseband chip price has fallen below 2 dollars, is facing the persistent growth problem. Although the acquisition of Thai view can improve its revenue, but also can only bring short-term benefits, because the Thai landscape is in a gradual decline in the mobile phone TV analog chip market.