Huacun Li Tingyu: The lack of core has been alleviated, and market demand is viewed cautiously

Jiwei Network reported that on December 18, the "3rd China Semiconductor Investment Alliance Annual Conference and China IC List Award Ceremony" jointly created by China Semiconductor Investment Alliance and Aijiwei was held in Beijing. Jiangsu Huacun Electronic Technology Co., Ltd. (hereinafter referred to as "Huacun Electronics"), a well-known memory controller enterprise in China, was invited to participate in this grand event. With the self-developed PCIe5 SSD memory control chip HC9001, it won the "Annual Excellent Innovative Product Award".

The "China IC List" is recognized and favored by enterprises and the market because of its format integrity, dimensional innovation and authoritative evaluation. The "Annual Excellent Innovative Product Award" aims to commend outstanding innovative enterprises that promote the improvement of the national integrated circuit industry chain self-reliance and self-improvement, and effectively solve the problem of card neck. The shortlisting criteria for the award require that in the past year, the successful research and development of innovative products with independent intellectual property rights, effectively solve the problem of card neck, and promote the improvement of self-reliance and self-reliance and benefits. As a representative of the award-winning enterprises, Li Tingyu, chairman and general manager of Jiangsu Huacun Electronic Technology Co., Ltd., shared his observation, understanding and judgment of the industry, as well as the implementation and planning of the company's development strategy.

Picture: Li Tingyu, chairman and general manager of Jiangsu Huacun Electronic Technology Co., Ltd. (left)

From PC to server, quality and service win

In the year that is about to pass, Huacun Electronics has launched PCIe 3.0 SSD products for the PC market, and eMMC products for the smart home market have achieved high-volume market success. After the past four years of technical precipitation and customer service, Huacun Electronics' eMMC products have been widely recognized in the field of smart home, and orders have shifted from the initial small batch and medium batch to large batch. In 2021, huacun electronics' performance doubled from the previous year, and it is expected to continue to double its growth next year.

Li Tingyu often says that he is a "craftsman" who makes chips, and under his leadership, the business philosophy of Huacun Electronics is also permeated with a strong "craftsman spirit", helping customers with extreme quality and quality service, and growing together with customers. In terms of quality, as a R&D enterprise, huacun electronics R & D team has deep qualifications in the field of software and hardware, is very good at solving various problems for customers, and will seek to further help customers reduce the incidence of future problems at the same time. For example, Li Tingyu said: "Huacun has entered a customer supply chain, the product is very stable, it has been on a large number, and we are still continuing to verify. Because we want to find out more possibilities [of error] and then improve, and while the odds are low, we want to help our customers do their best. This is the "craftsman's" pursuit of quality.

In terms of customer service, Huacun Electronics has deployed R&D teams directly in the locations of larger customers, requiring any service to be almost on call. If it is an area where the team is not deployed, once there is a problem, Huacun Electronics will immediately send a team to go until the problem is completely solved.

As far as possible in the quality control to do the best, optimize their own product performance, but also to help customers optimize the product. This is the code of conduct that Huacun Electronics has been pursuing for the past four years. International manufacturers generally only provide standardized products and will not customize services. This is the advantage of Huacun Electronics' development. "I want to create an image that is a loyal partner, willing to grow with customers and suppliers, although slowly, but steadily laying the foundation." Li Tingyu said so.

Regarding the future, Li Tingyu mentioned that on the basis of existing products, in 2022, Huacun Electronics will launch PCle 5.0 products for the server market, and the related products have been developed and entered the TSMC current sheet. Compared with the PC market, the server market has more stringent requirements for the quality and technology of SSD products, with higher entry thresholds, and is also one of the scarce card neck products in China. The launch of Huacun PCle 5.0 products will meet the high-speed domestically manufactured storage needs required for the establishment of new infrastructure big data centers, fill the gap in domestic production, and become one of the representatives of the new generation of information industry in the country.

The shortage of production capacity has been alleviated, and the inventory of major enterprises has exceeded expectations

The lack of cores is an unavoidable topic for the semiconductor industry in 2021, but Li Tingyu believes that from the perspective of overall production capacity, the shortage of production capacity in 2021 has slowly loosened, whether it is wafer manufacturing or packaging and testing. Although the lead times of both fabs and packaging plants have been extended, they can be planned in advance.

In his view, in 2020, under the influence of the epidemic, transportation and other factors, the global industrial chain suddenly broke out of the shortage of production capacity, when the industry companies did have the problem of insufficient response, until the first half of 2021, the problem of lack of cores was really there, but it had been loosened in the second half of the year. What's more, the supply chain problem in 2021 is essentially the result of a mixture of many human factors. First, after experiencing the shortage of production capacity at the end of 2020, companies have slammed orders, resulting in some false demand; second, in the case of production capacity shortage, some speculators speculate on chips, and even use chips as futures speculation. These factors exacerbate the appearance of a shortage of production capacity, but in fact, the inventory of major companies has almost exceeded expectations.

He said: "Because everyone was grabbing goods before, the procurement task was to try to buy goods in various ways." Now in the fourth quarter, I began to try my best to sell the goods as quickly as possible. Therefore, he believes that in terms of the current overall situation of the industry, the market demand needs to be cautiously viewed.

Moreover, in his view, the shortage of chips not only affects the industrial chain, but also has a great impact on system manufacturers. For system manufacturers, the demand and price of the terminal market have not risen, but the price of key components has risen, in the case of rising costs, it is difficult for system manufacturers to pass on the cost to consumers, and the plight of system manufacturers under the two-phase attack can be imagined.

Like Huacun Electronics, a key component manufacturer, Li Tingyu believes that it is necessary to make long-term planning with customers. All aspects of the industrial chain have peaks and trough cycles of development, only with suppliers and customers to grow together, maintain the core values of the enterprise, maintain the relationship of trust with customers and suppliers, is the long-term way for enterprises to survive and operate. (Proofreading/Oliver)