In recent years, with the strong rise of panel manufacturers such as BOE and TCL Huaxing, when breaking the "less screen", it has also driven the development of domestic panel supporting industries, including display driver chip manufacturers such as Jichuang North, Zhongying Electronics, Weier Shares, Solomon Technology, etc., wafer foundries including SMIC and Wafer Integration, as well as packaging and testing manufacturers such as Huicheng Shares, Xiamen Tongfu and Jizhong Technology, which have been rapidly developed and their market share has increased rapidly.
Among the many display industry chain companies, the development of Hefei Xinhuicheng Microelectronics Co., Ltd. (hereinafter referred to as "Huicheng Shares") is particularly prominent, and the only thing the company has done since its establishment six years ago is to focus on the field of display driver chip packaging and testing.
According to industry insiders, Huicheng shares are in an absolute leading position in the field of domestic display driver chip packaging and testing, and the company's core technology has reached the international advanced level. The company's shipments of display driver chips in 2020 accounted for about 5.01% of the global market share, ranking third; in the Chinese mainland market share of about 15.71%, ranking first in china, has become an indispensable part of the domestic display panel industry chain.
Due to the low-key behavior, the industry is surprised by the sudden rise of Huicheng shares, but this does not affect Huicheng shares to become the "hidden champion" in the field of domestic display driver chip packaging and testing. At present, the company has submitted an IPO prospectus to the Shanghai Stock Exchange Science and Technology Innovation Board, and perhaps in the near future, the A-share semiconductor packaging and testing sector will add another member.
Master the core technology and break the overseas monopoly
In the era of mobile Internet, display products are the forefront of human-computer interaction experience, the resolution of the HD to bring users the most intuitive feeling, along with display technology and consumption upgrades, people's demand for resolution is also getting higher and higher, the current 4K has become the mainstream, and gradually force 8K market.
With the increasing requirements for display resolution, the number of I/O ports of the display driver chip is increasing, and the input and output of such a large scale have high requirements for chip packaging technology, and with the development trend of electronic products to be thin and thin, the volume of the display driver chip is further reduced, and the integration degree is further improved.
The bump manufacturing process combined with glass clad packaging (COG) or thin film cladding packaging (COF) has become the mainstream of display drive chip packaging technology with its multi-I/O, high density and other characteristics, and it adopts a flip chip structure without wire bonding.
As a result of the past few years, South Korea/ Taiwan manufacturers in the display panel industry in a leading position, driving the development of the local supporting industry, followed by the emergence of a large number of packaging and testing manufacturers, Samsung, Jibang Technology, Nanmao Technology and other manufacturers in the bump manufacturing technology to achieve a leading position, and in the display drive chip packaging and testing market occupies a dominant position.
However, with the transfer of the global integrated circuit industry and the display panel industry to the Chinese mainland, including Huicheng shares, Xiamen Tongfu, Jizhong Technology and other domestic display driver chip packaging and testing manufacturers have also risen rapidly, and the market share of Chinese mainland has increased rapidly.
Among them, Huicheng Co., Ltd., as one of the earliest enterprises with gold bump manufacturing capabilities in China, and the earliest introduction of 12-inch wafer gold bump production lines and mass production of display driver chips, the company has 8-inch and 12-inch wafer full-process packaging and testing capabilities.
At present, the company is also the core of the front gold bump manufacturing (Gold Bumping), and the integration of wafer testing (CP) and the rear glass cladding packaging (COG) and thin film cladding packaging (COF) links, forming a display driver chip full-process packaging and testing comprehensive service capabilities.
It is reported that the bump manufacturing technology (Bumping) mastered by Huicheng Co., Ltd. is one of the representative technologies of high-end advanced packaging, which provides the "point" interface of the chip electrical interconnection by making metal bumps on the surface of the chip through lithography and electroplating, and realizes the technical leap in the packaging field to "replace the line with points", and the technology also breaks the monopoly of overseas manufacturers and fills the gap in domestic gold bump technology.
Nevertheless, Huicheng Co., Ltd. continues to upgrade the bump manufacturing technology, and actively layouts high-end advanced packaging technologies such as fan-out integrated circuit packaging (Fan-out), 2.5D/3D, and system-in-package (SiP), laying a solid technical foundation for breaking through the technical bottlenecks in the industry; on the other hand, the company actively develops CMOS image sensor packaging technology, enriches the company's product structure, and provides strong technical support for the company's sustainable development.
Focus on the field of packaging and testing of driver chips to win the global market
Different from the "big and complete" domineering route of packaging and testing manufacturers such as Tongfu Microelectric, some enterprises that started late and are not strong in financial strength choose a niche route in the field of segmentation. And Huicheng shares are such a "rising star". Deeply ploughing LCD, AMOLED and other mainstream panel display driver chip packaging and testing market for many years, Huicheng shares out of their own "small and beautiful" route.
With advanced packaging and testing technology, stable product yield and high-quality service capabilities, Huicheng Co., Ltd. has accumulated rich customer resources. The company's customers include Lianyong Technology, Tianyu Technology, Ruiding Technology, Wonder Photoelectric and other world-renowned display driver chip design enterprises, and the packaged test chips have been mainly used in the panels of well-known manufacturers such as BOE and AUO Optoelectronics.
From the customer point of view, in 2020, three of the world's top five display driver chip design companies are the main customers of Huicheng shares, while among the top ten display driver chip design companies in China, nine are the main customers of Huicheng shares. Deep customer resources have also driven the rapid growth of Huicheng shares shipments and revenue.
From 2018 to the first half of 2021, Huicheng shares achieved revenue of 286 million yuan, 394 million yuan, 619 million yuan and 359 million yuan respectively, maintaining rapid growth year by year. Its net profit also achieved a turnaround in the first half of 2021, with a net profit of more than 50 million yuan in half a year.
In terms of shipments, according to Frost & Sullivan data, global display driver chip shipments in 2020 will be about 16.540 billion units, and Chinese mainland display driver chip shipments will be about 5.270 billion units. The shipment volume of display driver chips sealed and tested by Huicheng Shares in that year was 828 million, according to which the company's global market share in the field of display driver chip packaging and testing was about 5.01%, and the market share in the Chinese mainland was about 15.71%.
Judging from the ranking of package shipments of display driver chips in 2020, Huicheng ranks third in the global display driver chip packaging and testing industry and first in China.
It can be seen that although Huicheng shares are not remarkable in the field of sealing and testing, and there is a certain gap between the scale of revenue and tongfu microelectronics, Changdian Technology, Huatian Technology and other packaging and testing manufacturers, in the field of domestic display driver chip packaging and testing, Huicheng shares are the "hidden champions" without compromise.
The market continues to be strong, and the future development can be expected
At present, the rise of domestic panel manufacturers has driven the rapid growth of display industry chain manufacturers. With the continuous release of panel manufacturers such as BOE, TCL Huaxing, Huike, Shentianma and Visionox to expand their production capacity, supply chain manufacturers will also usher in a long-term development trend.
The data shows that with the mature development of technology and the growth of downstream demand, global display panel shipments will also continue to grow, and are expected to grow from about 254 million square meters in 2021 to about 279 million square meters in 2025. Among them, the Chinese mainland display panel market will grow from 0.91 billion square meters in 2020 to 121 million square meters in 2025, and the growth rate is significantly higher than that of the global market.
With the continuous increase in the manufacturing capacity of Chinese mainland display panels, the corresponding mainland market has also become the main market for global drive chips, and a number of competitive display driver chip companies have been produced, such as Jichuang North, Yi Siwei, Geke Micro, XinxiangWei, Howey Technology, Tiande Yu, etc., and also produced a number of rapidly developing enterprises such as Yunying Valley, Zhongying Electronics, Ai Xiesheng, Sheng He Micro, Sheng Xian Micro, Guan Hai Micro, etc.
According to CINNO Research statistics, the domestic display driver chip market size will reach 5.7 billion US dollars in 2021, an increase of 68% year-on-year, and will continue to grow to 8 billion US dollars by 2025, with an average annual compound growth rate of CAGR of 9%.
It is foreseeable that with the development of the domestic display industry and a number of industrial support policies introduced by the state and localities, the market share of domestic local chip design manufacturers will continue to increase in the future, and will drive the demand for packaging and testing markets to continue to increase.
As a leading enterprise in the field of display driver chip packaging and testing in China, Huicheng Co., Ltd. currently has two sealing and testing bases in Hefei and Yangzhou. Among them, Hefei 12-inch sealing and testing base has gradually introduced world-renowned display driver chip design enterprises such as Lianyong Technology, Tianyu Technology, and Qijing Optoelectronics, and the company's product line is constantly increasing, with stable and high-quality service capabilities.
Overall, Huicheng shares a large number of downstream customers, it and most of the customers to reach a stable cooperation, and the cooperation period in hand orders abundant, is expected to be stable in the follow-up, the company's development is good. With the release of the above orders, the company can further achieve rapid growth in revenue and profit, and future growth can be expected.