Lin Yonghui, deputy general manager of Xiamen Youxun Technology: A variety of optical communication chips are at the leading level in the industry

Xiamen Youxun High-speed Chip Co., Ltd. (hereinafter referred to as "Xiamen Youxun") focuses on the design of high-end analog, digital-analog hybrid integrated circuit chips, is one of the earliest design companies engaged in optical communication front-end high-speed transceiver chips in Chinese mainland, and is a leading enterprise in the domestic optical communication industry. Recently, at the "2022 Third China Semiconductor Investment Alliance Annual Conference and China IC Award Ceremony" jointly organized by China Semiconductor Investment Alliance and Aijiwei, Xiamen Youxun won the "Annual Excellent Innovative Product Award".

Multiple products are industry-leading in performance

Affected by the continuous increase in people's demand for bandwidth, the demand for optical communication industry is strong in 2021, 10G PON enters the batch deployment stage, the growth is very fast, and the demand for optical modules in data centers and enterprise networks also maintains a high growth trend.

In order to meet the urgent needs of the market, Xiamen Youxun launched a 10G PON ONU and OLT series transceiver chips in 2021, Lin Yonghui, deputy general manager of Xiamen Youxun Technology, pointed out that a comprehensive product layout has been formed in the field of PON transceiver chips, and the performance and function of many products are at the leading level in the industry; at the same time, Xiamen Youxun has also developed 100G rate transceiver chip products, which are currently in the sample stage, and Xiamen Youxun will have more high-speed products in the future.

However, the repeated outbreak of the new crown pneumonia epidemic, especially in Xiamen in September 2021, was seriously affected by the epidemic, and geopolitics continued, disrupting the global semiconductor supply chain and making wafer production capacity in short supply. Xiamen Youxun is also affected by the tight supply of wafer production capacity, Lin Yonghui said, on the one hand, because customer demand is very strong, on the other hand, because the expansion cycle of semiconductors is long, it is expected that this capacity shortage will continue for a period of time.

Despite the complex and severe external environment, Xiamen Youxun's performance in 2021 still maintained substantial growth. Lin Yonghui believes that there are three main reasons for the performance growth of Xiamen Youxun: First, Xiamen Youxun adjusts the product strategy in a timely manner guided by market demand, accelerates the speed of chip iteration, and cooperates with fast, professional and thoughtful services to establish the independent brand image of "China Core" and stand in the industry for nearly 20 years.

Second, Xiamen Youxun's technology accumulation and continuous innovation. After more than ten years of solid research and development, technology accumulation and market precipitation, Xiamen Youxun 155Mbps ~ 25Gbps point-to-point field and 1.25Gbps ~ 10Gbps PON field products have become the mainstream of the market solution, the share is no less than foreign manufacturers, to achieve domestic substitution. At the same time, in the more high-end field, Xiamen Youxun has invested a lot of R & D resources for development, and has developed the first and second generation samples, and the preliminary test results are comparable to foreign competitors. Xiamen Youxun is also increasing investment in research and development, striving to achieve mass production as soon as possible, and hoping to achieve domestic substitution in the high-end field as soon as possible.

Third, Xiamen Youxun team has strong centripetal force, sense of responsibility, execution, innovation is outstanding, under the unremitting efforts of the team, Xiamen Youxun a number of R & D projects are executed as planned, sales and marketing are also expanding.

Increase R&D investment to break through foreign blockades

In 2022, the optical communication market will still maintain a high-speed growth trend, 10G PON will gradually become a mainstream deployment solution in China, FTTR will be gradually promoted, the construction of 5G will continue, and the data center will turn more to the demand for 400G/800G speed.

However, at present, the production capacity of global wafer foundries is extremely tight, and even if it is overloaded, it cannot fully meet the market demand, the wafer delivery cycle is getting longer and longer, and the price of wafers continues to rise. Lin Yonghui believes that the shortage of wafer production capacity may take 1 to 2 years to alleviate.

In order to meet the needs of downstream application customers, Lin Yonghui pointed out that in 2022, Xiamen Youxun should not only strive to expand production capacity to meet customer needs, but also accelerate the launch of next-generation products, including high-speed products with a rate of more than 100 Gbps, to open up the data center and storage markets.

In the long run, due to the impact of geo-economics, the demand for domestic alternatives is strong, and China's semiconductor market is expected to continue to grow in the next decade. In order to seize the opportunity of domestic substitution, Lin Yonghui said that Xiamen Youxun and domestic manufacturers customized the localization switching plan, and looked forward to closer cooperation with domestic fabs to complete the task of truly domestic chips.

At the same time, in order to continuously break through the ceiling of foreign technology blockade, Xiamen Youxun's R&D investment has increased year by year, and the average R&D investment in the past three years has exceeded 16% of sales. Lin Yonghui revealed that as of now, Xiamen Youxun has formed more than 100 independent intellectual property rights and participated in the formulation of more than 20 national communication industry standards. In the future, Xiamen Youxun R&D investment will continue to maintain a high level, launch more competitive products, make products high-performance and cost-effective, create value for customers, and ensure the company's leading position in the industry.

(Proofreading/Clear Spring)