Driven by the wave of globalization, Chinese semiconductor companies are accelerating the layout of the international market with unprecedented determination and strength, seeking a new positioning in the global semiconductor industry chain. In 2024, with the acceleration of technology iteration, changes in market demand and the reshaping of the international competition landscape, the overseas strategies of Chinese semiconductor companies will show the characteristics of diversification and depth. China Exportsemi will try to conduct an in-depth analysis from three aspects: the overall strategy, successful cases and future prospects of Chinese semiconductor enterprises going overseas.
1. The overall strategy of Chinese semiconductor companies going overseas
1. Technological innovation and product upgrading
Technological innovation is the core driving force for semiconductor companies to go overseas. In the face of fierce competition in the international market, Chinese semiconductor companies continue to increase R&D investment, promote product technology upgrading, and enhance product competitiveness. For example, as the world's leading Flash supplier, Giga Device's memory chip product revenue accounts for more than 70% of the company's total revenue, and ranks among the top in the world in the NOR Flash market. Through continuous technological innovation, Giga Device has successfully entered the automotive market, established close cooperation with domestic and foreign mainstream car manufacturers and Tier 1 suppliers, and achieved significant growth in shipments.
2. Market diversification and localization strategy
In order to reduce the risk of a single market, Chinese semiconductor companies actively implement market diversification strategies, and at the same time adopt localized business strategies according to the characteristics of different markets. Through the acquisition of Beijing Sicheng, Beijing Junzheng has expanded its memory chip business line, and successfully entered multiple market fields such as automotive, industrial, and medical, and achieved the optimization of revenue structure. In addition, the company has also strengthened its layout in overseas markets, and improved its localization service capabilities and enhanced customer stickiness by setting up R&D centers and sales centers.
3. Mergers and acquisitions and cooperation
M&A and cooperation have become an important means for Chinese semiconductor companies to rapidly expand overseas markets. In recent years, Chinese semiconductor companies have frequently made moves to quickly obtain technology, market and customer resources through mergers and acquisitions of overseas high-quality assets. For example, Halo Microelectronics successfully acquired a controlling stake in Zinitix, a listed chip company in Korea, further expanding its product line and strengthening its competitiveness in power management and signal chain chips. JCET Group expanded its market share in the storage and computing electronics sector through the acquisition of Sandisk Semiconductor (Shanghai) Co., Ltd.
Figure: 2024 Chinese semiconductor companies' overseas strategies and successful cases
2. In-depth analysis of successful cases
1. ASR Microelectonics：going global with own brands and setting industry benchmarks
ASR Microelectonics is a typical representative of Chinese semiconductor companies going overseas, which adopts "distribution + direct sales".successfully launched IoT chips and baseband chip products to overseas markets. The company's overseas revenue accounted for more than 81% of the total revenue, demonstrating strong competitiveness in the international market. The success of ASR Microelectonics is due on the one hand to its strong technical strength and brand influence, and on the other hand, to its precise market positioning and flexible sales strategy. Its ASR1606 chips have been certified by mainstream operators in North America, and have successfully entered the North American market, winning a large number of orders for the company. In addition, ASR Microelectonics has also set up overseas operating entities in Hong Kong, United States and Italy, actively participating in overseas exhibitions and technical exchange meetings, strengthening brand promotion and increasing product penetration.
2. Yangjie Technology: Through the second overseas brand, to achieve differentiated competition
Yangjie Technology takes the power single tube as the main product and adopts the "vest".The overseas model achieves differentiated competition through overseas second brands. Although the company's overseas revenue does not account for a high proportion, it has successfully leveraged the introduction of products in overseas markets through cooperation with benchmark customers. Yangjie Technology focuses on the construction of R&D and sales network in overseas markets, and plans to strengthen the construction of overseas R&D centers in Japan and other countries in 2024, and start the construction of factories in Viet Nam to build overseas supply capabilities. This "one team, two brands" model provides strong support for the company's expansion in overseas markets.
3. Giga Device: Leading technology and deep market cultivation
As a leading enterprise in China's semiconductor industry, Giga Device's success in its overseas strategy lies in its leading technology and deep market cultivation. With its deep accumulation in the field of memory chips, the company has successfully entered the automotive market and established close cooperation with mainstream car manufacturers and Tier1 suppliers at home and abroad. Giga Device is also actively expanding overseas markets, strengthening communication and cooperation with global customers by participating in international exhibitions and setting up overseas R&D centers and sales centers. The market share of its NOR Flash products in the global market has steadily increased, bringing a stable source of revenue to the company.
3. Future prospects
Looking to the future, the road for Chinese semiconductor companies to go overseas is still full of challenges and opportunities. On the one hand, the competition in the international market will become more intense, and technical barriers and trade barriers will continue to escalate; On the other hand, with the acceleration of global digital transformation, the demand for semiconductors will continue to grow, providing a broad space for Chinese enterprises to develop.
In order to better respond to challenges and seize opportunities, Chinese semiconductor companies need to continue to increase R&D investment and promote technological innovation and product upgrading. Strengthen communication and cooperation with the international market to enhance brand influence and market competitiveness; At the same time, it actively implements market diversification and localization strategies to reduce the risk of a single market; And flexibly use mergers and acquisitions and cooperation to rapidly expand overseas markets.
In short, the road for Chinese semiconductor companies to go overseas in 2024 will be full of uncertainties, but as long as we have firm confidence and move forward bravely, we will definitely be able to occupy a place in the global semiconductor market and contribute to the rise of China's semiconductor industry.
