Almost all electronic products and devices contain power management chips, which are therefore often referred to as the "heart" of electronic devices. It represents the largest segment of the analog chip market. Based on the input voltage characteristics, power chips can be divided into two categories: AC-DC (alternating current to direct current) converter chips and DC-DC (direct current to direct current) converter chips. AC-DC conversion typically converts AC mains power (220V or 110V) into the DC voltage required to power the internal circuitry of electronic devices or products; DC-DC conversion usually refers to converting the properties or parameters of the DC power supply, such as step-down, step-up, and step-up/step-down conversions, to match the power supply requirements of devices or circuit modules.
The common classifications of power supply chips are as follows:
(Information sourced from Shanghai Chipone Semiconductor's prospectus)
In recent years, the downstream industries of power supply chips have flourished, providing a vast market space for power supply chips. For example, the demand for power supply chips in fields such as automotive electronics, communication equipment, and industrial control is growing rapidly, with higher requirements for chip performance. The power supply chips that the issuer researches, designs, and sells belong to the mid-to-high-end products of the industry. Currently, this market is mainly dominated by foreign giants such as Texas Instruments, Analog Devices, and Infineon, resulting in a high degree of market concentration.
What are the differences in the development of power supply chips between China and other countries?
In the international market, data from the Qianzhan Industry Research Institute shows that the global power chip market valued at US$25 billion in 2018. In recent years, thanks to the continued growth of markets such as new energy vehicles and 5G communications, the global power chip market has developed rapidly, and its market size is expected to reach US$56.5 billion by 2026, with a compound annual growth rate of 10.69%.
In the domestic market, data from China Business Intelligence Network shows that from 2015 to 2019, the size of China's power supply chip market increased from 52 billion yuan to 72 billion yuan, and is expected to exceed 78 billion yuan in 2020, with an average annual compound growth rate of about 8.5%. Stimulated by factors such as consumption upgrading and the development of new technologies, the functions of various electronic products in China are becoming increasingly diversified, and the pace of upgrading is accelerating, leading to a continuous increase in demand for power supply chips. Furthermore, the trend of semiconductor import substitution has also brought more development opportunities to many domestic chip companies.
(Illustrative image of the new power supply, for reference only)
As an indispensable component of electronic devices, the market demand for power management chips is experiencing significant growth driven by the continued expansion of downstream applications such as 5G communications, smart homes, and new energy vehicles. The following are key areas of focus:
1. Automotive electronics
Automotive electronics is a general term for vehicle-mounted electronic control devices and in-vehicle electronic control devices, and it is one of the important application areas of power chips. As the degree of automotive electrification increases, the number of electronic products installed in cars is also increasing, which increases the car's electricity, power and other energy consumption. Therefore, the requirements for power consumption in cars are becoming increasingly stringent, and the electronic products installed in them all need power modules that are highly efficient, small in size and capable of outputting large currents under high voltage.
2. Industrial Control
Industrial control, also known as industrial automation control, refers to the use of computer software, microelectronics, and electrical engineering technologies to make production more automated, efficient, and precise, while also providing controllability and visibility. To achieve these effects, industrial control equipment needs to possess a stable power system, sensitive sensors, efficient information transmission, and other functional modules. The stable operation of these systems or modules requires the use of efficient and reliable power supply chips.
3. Communication equipment
According to data from the Ministry of Industry and Information Technology, major Chinese telecom operators began deploying 5G communication technology and building new base stations in 2018. As of December 31, 2019, the number of mobile phone base stations in China was approximately 8.41 million; by December 31, 2020, the number had reached 9.31 million, a net increase of 900,000 throughout the year, including over 600,000 newly built 5G base stations. Compared to 4G base stations, 5G base stations require more antennas, and electrically tunable antennas place higher demands on the power supply chip's anti-interference performance. The increase in the number of communication base stations and the number of antennas per base station signifies that the development of China's 5G communication industry requires the synchronized development of China's power supply chip market.
4. Consumer electronics
Consumer electronics refers to electronic products used by consumers on a daily basis, such as personal computers, smartphones, and electric vehicles.
5. Household appliances
Household appliances refer to electrical and electronic appliances used in homes and similar places, including refrigeration, cleaning, kitchen appliances, and electric heating appliances.
Looking ahead, new trends in power supply product development
With the increasing prevalence of new technologies such as the Internet of Things, autonomous driving, 5G, and artificial intelligence, the performance of related electronic products is constantly improving, and their applications are continuously innovating. As one of the core components of electronic products, power chips are facing higher demands from end customers in terms of efficiency, power, size, and reliability. The power chip market is characterized by diversified demand and segmented applications. High integration, high voltage and high power, high reliability, and low power consumption are gradually becoming the main technological development trends in the power chip industry.
1. High integration
Power supply chips require various external components such as inductors and capacitors to operate. Therefore, the number of pins, shape, number and shape of external components, PCB area, and layout/routing method of the chip determine the size of the power module. The trend towards lightweighting and miniaturization of electronic products necessitates power supply chips with higher integration and smaller size.
2. High voltage and high power
As the power supply voltage of terminal devices continues to increase, higher demands are placed on the voltage withstand performance of power supply chips. With the increasing integration of digital chips, the need for power supply chips with higher output power has become another driving factor for the high-voltage and high-power development of power supply chips.
3. High reliability
Power chips consume significant power during operation, generating heat and potentially causing malfunctions in internal materials, components, and even circuit modules, thus affecting chip reliability. Environmental factors during chip operation, such as temperature, humidity, vibration, and electromagnetic interference, also impact reliability. Therefore, as the "heart" of electronic products, the reliability of power chips directly affects the product's lifespan. With the diversification of electronic product functions and the increasing complexity of applications, power chips are continuously evolving towards higher reliability.
4. Low power consumption
Standby power consumption is a key performance indicator for power chips. High standby power consumption will affect the battery life of battery-powered electronic devices. Therefore, low power consumption is a major development trend in the power chip industry.
