The minutes of the C*Core Science and Technology Conference were exchanged 20220113

Company Introduction: The company's vision is to create an embedded CPU that is truly our own. Founded in 2001

Suzhou C*Core is one of the earliest chip design core enterprises in China to focus on the research and development of domestic independent and controllable embedded CPU technology and industrial applications, and is committed to serving the national strategy of security and independent control, continuing to provide IP authorization and chip customization services for major national needs and market customers, and launching independent chips and module products. Embedded CPU is the control and operation core of SoC chip, its technology is difficult to achieve, while emphasizing logic control, computing speed and low power consumption, is one of the most critical technologies in SoC chips, for a long time for foreign enterprises monopolized its localization is of great significance to national strategic security and industrial security. Suzhou C*Core continues to achieve CPU design and mainstream technology in line with the world through international cooperation, and has signed a number of technology transfer and cooperation agreements with Motorola, IBM and other well-known enterprises, and obtained the international leading CPU architecture command system technology and authorization. After nearly 20 years of continuous research and development and innovation, it has finally formed a product array based on the C*Core series of embedded CPUs, peripheral IP and SoC design platforms, and C*SoC chip design platforms, which are widely used in three key technology fields of information security, automotive electronics and industrial control, edge computing and network communications. According to the specific needs of customers, the company should continuously optimize the company's SoC design platform to provide customers with IP authorization and better services based on independent embedded CPUs and rich peripheral IP for key areas. The company continues to focus on "cloud" to "end" security applications, covering key areas such as cloud computing, big data, Internet of Things, intelligent storage, industrial control and financial electronics, as well as important products such as servers, automobiles and intelligent terminals. The company has successfully realized

Based on three instruction sets, 8 series and more than 40 CPU cores form a deep embedded

CPUIP reserves, successful launch of a series of security chips, multiple products to break foreign monopoly, performance

The indicator hits the same level of the well-known brand to achieve the safety of the three major application areas

And localization substitution to provide key technical support.

The company has provided more than 120 CPUIP licenses to more than 90 customers, providing more than 70

Home customers provide more than 140 chip customization services. The company's embedded CPUIP was established in 2006

Achieved a total of millions of applications in 2008, in 2008 to achieve a total of tens of millions of applications, in 2015

Achieve a total of hundreds of millions of applications every year. The company's independent chips and module products achieved a cumulative total in 2013

Millions of applications, in 2015 to achieve a total of tens of millions of applications.

It is favored by many government agencies, large enterprises, research institutes and financial institutions. The company will always

Technological innovation as a guarantee for the take-off of the brand makes every wonderful idea become the progress of realizing dreams

journey. Continuous excellence in iterative innovation capabilities allows the company to lay out patents, software copyrights, and integrated circuits

In terms of design, we have achieved industry-renowned achievements.

The company took the initiative to undertake a series of major special scientific and technological research such as the national Eleventh Five-Year Plan, the Twelfth Five-Year Plan, and the nuclear high-tech base

Work, many times won the national, Chinese Institute of Electronics Science and Technology Progress Award, which is Suzhou C*Core leading the industry

Development, with the core competitive advantage of the force of evidence. The well-being of science and technology belongs to all mankind, and it belongs to everyone

Dare to fight and dare to break into the enterprise that is responsible. The company will continue to promote the industrialization of information security chips from "cloud" to "end" And continue to develop high-performance C*Core series CPUs and CPUs based on RISC-V architecture

Kernel design, become China's embedded CPU field with international competitiveness enterprises. The company continues to focus on the R&D and industrialization application of domestic embedded CPUs, and attaches great importance to R&D investment and technological innovation. During the reporting period, the company invested a total of 252 million yuan in research and development, accounting for 30.40% of the operating income. As of June 30, 2021, it has 116 granted patents (of which

111 invention patents), 126 software copyrights and 33 integrated circuit layouts 2

plan. The company is the vice chairman unit of Jiangsu Integrated Circuit Design Industry Alliance, and will serve as Su in 2021

Chairman unit of Zhou Semiconductor Industry Alliance. It has undertaken 5 "nuclear high-base" national science and technology majors

Special projects, as well as dozens of major scientific research projects. Won the second prize of the National Science and Technology Progress Award, the first prize of electronic information science and technology, the "Ten Years of China Core" and other honors and certificates.

In the future, the company will be based on the major national needs and market demand in the field of customers, continue to develop China's independent controllable high-end embedded CPU series, to achieve localization substitution, to solve the problem of China's high-end chip core technology is subject to people to make important contributions, is committed to becoming China's embedded CPU field with international competitiveness of enterprises.

Q&A session

Q: Shareholders A: As of now, the company's state-owned shareholders are the National Integrated Circuit Industry Investment Fund Co., Ltd.

Proportion; 8.63%。

Q: The company's R&D expenses

A : In 2018, 2019, 2020 and January to June 2021, the proportion of revenue was 33.09%, 28.68%, 32.08% and 26.34% respectively. The company's overall investment in research and development costs is large,

A higher percentage of income. The company's R&D expenses are mainly composed of employee salaries, depreciation and amortization, and outsourcing test expenses. During the reporting period, the company's R&D expenses continued to grow, mainly due to the maintenance of the overall R&D level on the one hand, the number of R&D personnel of the company has increased, and the salary level has increased; On the other hand, the company continues to purchase intangible assets such as IP for research and development, so depreciation and amortization expenses continue to grow.

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Q: Synergy between the company's main products and services

A: The company's three major types of business are based on independent and controllable embedded CPU technology, and there are different services between services

There is a strong synergy effect.

(1) Synergy between IP licensing, chip customization services, and independent chip products

The company's independent and controllable CPU core is an important factor to ensure that the chip is independently controllable, and it also determines the requirements of the chip's supporting software development and application ecology. The company is based on nearly two decades of IP licensing

With custom service experience, around the self-developed CPU core and related IP, a SoC chip design platform for applications in three fields of information security, automotive electronics and industrial control, edge computing and network communications has been established, and based on this, it provides customers with chip customization services or independent chip product research and development, effectively shortening the design cycle and improving the design success rate of chips. At the same time, in the process of independently developing chips or providing chips customization services for customers, the company can timely understand the industry application needs, continue to upgrade the CPU core, and provide direction for the design and development of new models of CPUs, thereby further enriching the company's embedded CPUIP reserves and further optimizing the company's SoC chip design platform.

(2) Synergy between chip customization services and independent chip products Based on the company's independent and controllable CPU core and the corresponding SoC chip design platform, independent chip products are mainly based on the company's understanding of the market and the needs of downstream customers for independent chip design and mass production chip customization services are mainly based on the customized needs of customers for custom design and mass production The two can learn from each other and confirm each other in terms of engineering experience, quality management and product reliability and maturity, so as to ensure the success rate of chip design. Technical stability and reliability.

Q: The basic situation of cloud-terminal information security chip design and industrialization project A: On the basis of the company's existing information security chip and module products, based on the market application situation

The demand situation is iteratively upgraded to launch a new generation of "cloud" to "terminal" application series of security chips.

(1) High-performance cloud security chip This project will be based on the existing cloud computing and server security chip series of products to carry out research and development upgrades, through improving the process, optimizing the design scheme, improving the integration of the password chip, reducing the difficulty and complexity of the customer's cloud security product implementation, while realizing the PCIE3.0 data transmission interface and higher encryption and decryption performance, to meet the customer's needs for the function, performance and power consumption of the cloud password chip. The new generation of high-performance cloud security chips can be widely used in cloud application security fields such as finance, power, transportation, communications, video surveillance, industrial control and data secure storage.

(2) Biometric identification security chip series This project will develop biometric identification security chips and biological feature recognition security chips with artificial intelligence functions on the basis of existing fingerprint recognition and financial electronic security chips, mainly used in fingerprints, finger veins and face recognition products.

(3) Low-power and low-cost IoT security chip series This project will be based on the existing low-cost security chip, in view of the needs of low-cost and low-power consumption of the Internet of Things end class, using 22nm and MRAM advanced semiconductor manufacturing and storage process technology, specially developed and developed a wide range of applications, high versatility of low-power, low-cost IoT security series chip products, can be widely used in smart home, smart city, environmental monitoring, smart grid, public safety and other end of the application security field.

Q: The company's core technology

A: The company's core technology is embedded CPU technology and chip design technology, mainly including independent controllable embedded CPU microarchitecture design technology, application-oriented SoC chip design platform technology,

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Secure and trusted system architecture and chip implementation technology and high reliability chip design technology.

Q: What are the company's competitive advantages?

A: (1) Core Advantages of Independent controllability of Key Technologies The company is one of the few enterprises in China that have fully mastered the core technology of independent and controllable embedded CPU and have rich experience in industrial applications.

Since its inception, the company has always adhered to the principle of "international mainstream compatibility and independent innovation and development", and has successively obtained the authorization of Motorola's "M*Core Instruction Set", IBM's n PowerPC Instruction Set, and "M*Core Instruction Set", "PowerPC Instruction Set" and "RISC-V Instruction Set". Based on this, a high-performance low-power embedded CPU technology with independent intellectual property rights and a SoC chip design platform based on independent controllable CPU are established.

(2) Mature advantages of high-end SoC custom chip design services in key areas Based on self-developed embedded CPU cores and accumulated rich peripheral IP application modules and design experience,

The company has established a reusable and easily scalable SoC chip design platform for the three key areas of information security, automotive electronics and industrial control, edge computing and network communication. The company's SoC chip design

The platform has undertaken a number of key product project design and development and has provided customized design services for many customers and has undergone a large number of mass production verifications, such as information security series chips, automotive electronics and industrial control series chips, etc., with mature and reliable advantages.

(3) Advantages of information security chips and module products Based on many years of experience in the research and development and industrialization of embedded CPUs, the company has successfully ± or achieved breakthroughs in information security. The company's information security chips and modules have high technical content, and have innovative advantages in many aspects, such as state secret algorithm modules, high-performance security encryption engines, reconfigurable symmetric cryptographic algorithm processor technology, anti-side channel attack technology, anti-physical manipulation technology, and anti-failure utilization technology.

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For example, for high-security level application scenarios, the company designs the national secret algorithm module to achieve the Internet of Things

In the extremely low-cost, very low-power scenario, the chip still has the same strength of attack resistance; For high-performance application scenarios such as cloud servers, pass

High-performance security encryption engine technology accelerates cryptographic operations in the chip and the application of network protocols such as IPSec, supporting data encryption and decryption applications of high-speed interfaces such as 10 Gigabit networks. In view of the application scenarios of customer custom encryption and decryption algorithms, the company has developed the Harvard Architecture Reconfigurable Symmetric Cryptography Processor (RSCP) to achieve block cipher algorithms and stream cipher calculations with higher processing performance

method and miscellaneous cryptographic algorithms. In addition, the company's information security chip products are covered by processes

14nm/40nm/65nm/90nm/130nm/180nm and other different specifications of the production line, and successfully verified, can meet the differentiated needs of customers in different application scenarios.

(4) Sustainable R&D and innovation advantages Automotive electronics and industrial control chips have long been recognized internationally by Infineon, STMicroelectronics and NXP

Occupied by the giants, the company's engine control chip BASED ON the independent controllable embedded CPU core CCFC2003PT has been practically applied in diesel heavy-duty engines, breaking the international monopoly in key areas, realizing independent controllable and localization substitution, product performance up to the level of similar products of international giants, can be widely used in direct injection engines, diesel engines, transmissions, gasoline engines and hybrid vehicles (HEV) and other engine control fields, to achieve the localization of the model device It has laid the foundation for the company's future entry into the field of autonomous and controllable automotive electronics and industrial control high-end chips; In the field of edge computing and network communications, the company has established a high-end SoC chip design platform based on multi-core applications, and successfully developed a RAID control chip, providing valuable experience for the company's subsequent chip production breakthroughs in this field.

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(5) Advantages in industrial application facing major national needs and key areas The company has cooperated with the subordinate units of the State Grid and china Southern Power Grid to successfully develop and apply smart electricity

Information security chips on tables, collection terminals, power distribution terminals and mobile devices, the customer's annual shipment of chips reached more than 30 million pieces, and showed a trend of increasing year by year; The company cooperated with Weichai Power to successfully develop diesel heavy-duty engine control chips, which can be widely used in direct injection engines, diesel engines, transmissions, gasoline engines and hybrid vehicles and other engine control fields; The company cooperated with the subordinate units of the Chinese Academy of Sciences to successfully apply the autonomous controllable embedded CPU to the new base station communication and control chip. As of June 30, 2021, the company has provided more than 130 CPUIP authorizations to more than 90 customers and more than 140 chip customization services for more than 70 customers.

Independent and controllable embedded CPU industrialization application customers mainly include subordinate units of large central enterprise groups such as State Grid, China Southern Power Grid and China Electronics, research institutes under the Chinese Academy of Sciences, the Ministry of Public Security, the National Core Cryptography Research Unit and Tsinghua University, as well as Lenovo, BYD and Weichaidong

Li and many other well-known domestic enterprises. The main users of independent chip and module products include Zhongyun Xinan, Dahua Shares, Suzhou Keda and Nan

Major information security system and equipment manufacturers such as Rui Group, XinxinFu, Newland, Zhongfu Information and Tianyu Information.

Q: The company's future development strategy

A: The company's strategic goal is to become an internationally competitive enterprise in the field of embedded CPU in China.

Based on the major needs of the country and the market demand of customers, continue to develop China's independent controllable high-end embedded CPU series.

At the embedded CPU level, the company benchmarks the cutting-edge technology of the world's leading embedded CPU manufacturers, 8

Based on open source or authorized instruction sets, it designs and develops independent and controllable high-performance low-power CPU cores for applications in key fields, and has become one of the core suppliers of domestic embedded CPUs in China.

At the level of autonomous chip products, the company will continue to make breakthroughs in key areas such as information security, automotive electronics and industrial control, edge computing and network communications, among which

In the field of information security, the company will be based on the core technology and new generation of high-level embedded CPUs with autonomous controllability

Performance reconfigurable password processing technology, closely around the "cloud" to "end" security requirements, developed in full

A range of chips, modules and solutions covering cloud computing, big data, edge computing, and terminal meters

In the fields of computing and network communications, as well as financial electronics, industrial control, smart grid, and intelligent networked automobile

Industries such as automobiles and smart homes have become one of the leading suppliers of information security chips and module products in China. I■

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In the fields of automotive electronics and industrial control, edge computing and network communications, the company will continue to develop chips and module products urgently needed in key areas based on the design technology and experience accumulated in engine control chips, body control chips, new gateway processing chips and RAID control chips

The pain of the country without "core" in specific fields provides assistance and creates an important pole for the company.

Q: How is the competition in the embedded CPUIP licensing industry? In the field of embedded CPUIP licensing, ARM occupies an absolute leading position, and the chips based on the ARM architecture have shipped 180 billion units. In 2018, the global shipments of ARM-licensed chips were about 22.9 billion, and in 2018, China's ARM-licensed chips shipped about 10 billion, and 95% of China's designed SoC chips are based on ARM-based CPU technology. ARM architecture processors account for 90% of the global market share in areas such as smartphone application processors and IoT microcontrollers. SiFive Company of the United States is a new army of embedded CPU technology in recent years, based on the open source RISC-V instruction system launched a series of embedded CPU cores, which has received high attention from the industry and is expected

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Break arm's monopoly position. In the field of information security, domestic embedded CPUIP technology occupies a certain market position; In the field of automotive electronics, ARM architecture processors account for 75% of the global market share in the field of in-car entertainment and ADAS systems, but the proportion of body and engine control is still small, and the market is mainly affected

PowerPC architecture and Tricore architecture occupied;

Q: The company's market position in the information security chip and module industry and related technological advancement

A: The company is one of the major domestic cloud security chips, financial POS security chip suppliers, China

One of the main suppliers of security chips in major demand, in the cloud security chips, financial POS security cores

The research and development and marketing of security chips in the major needs of the chip and the country are at an advanced level in China. C*Core

Based on the independent and controllable embedded CPU, the technology company has successfully developed information security chips and modules

Products, for the few domestic can provide "cloud" to "end" series of security chips and module products

It meets the major needs of the country and the key application areas of independent and controllable information security chips and modules

The demand of the group has gradually realized the localization of substitution.

The process of the company's information security chip products covers 14nrn/40nm/65nm/90nrn/130nm/180nm and other production lines of different specifications and passes through

Successful verification can meet the different needs of customers in different application scenarios. The company has 14nmFinFET successful tape-out experience and 40nmeFlash/RRAM and other process node chips scale mass production experience, and has carried out a new generation of process node chip design pre-research Company's advanced process process node technology has reached the leading level of domestic manufacturers in the same industry. Among them, in the field of "cloud" security chips, the encryption and decryption performance of the company's CCP903T series cloud security chip symmetric algorithm reaches 7Gbps; The new generation of CCP908T series cloud security chip symmetric algorithm

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The encryption and decryption performance reaches 30Gbps, and the comprehensive performance reaches the technical indicators of similar products of international leading enterprises, which can meet the security needs of high-end cloud devices; In the field of "end" security chips, the company is the first enterprise in China to pass the financial terminal security master control chip evaluated by the international PCI5.1 standard of the bank card testing center, and the industrialization application ranks in the forefront of the country; The vehicle specification-level safety chip developed by the company meets the AEC-Q100 standard and is one of the few cars in China

And the Internet of Vehicles communication security to provide one of the manufacturers of security chips.

Q: C*Core CPU core SoC chip design platform design and industrialization project related products?

1 Automotive electronics and industrial control applications

Automotive electronics is an application field with strong demand for the current SoC chip design platform, and has gradually stepped into the field of stability. Sales of automotive-related electronic systems increased from $142 billion in 2017 to approximately $152 billion in 2018 and are expected to reach $162 billion in 2019. Between 2017 and 2021, automotive electronic systems are expected to achieve an average annual compound growth rate of 6.4%. China's motivation control chip import substitution demand is strong, the government strongly supports domestic manufacturers to independently develop chips to achieve import substitution. Industrial control is another major area of SoC chip applications, important industrial data security and big data processing require high-performance CPU and SoC chip support. Therefore, the SoC chip has a huge market space.

2 Internet of Things applications In 2019, the number of global Internet of Things connections reached 11 billion units, and it is predicted that the global Internet of Things connections will reach 25 billion units in 2025, and the average annual compound growth rate in the future will reach 15.66% The biggest feature of the Internet of Things is the massive number of interconnected devices and rich application scenarios, which has brought massive chip demand. SoC master control chips, security chips, etc. all require the use of embedded CPU technology.

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At the same time, the Internet of Things is fragmented, diversified, personalized and other characteristics, it is difficult to use a general chip platform to meet the needs of different application scenarios. Local manufacturers with strong microarchitecture custom design technology strength will usher in great development opportunities. 2 Edge computing and artificial intelligence applications The global edge computing market will reach $6.72 billion in 2022.