In the context of the global chip shortage, the rise of Chinese companies in the semiconductor field has attracted much attention. As a leading enterprise in the home appliance industry, Gree Electric has made remarkable achievements in the independent research and development of chips. Dong Mingzhu, chairman of Gree, has publicly stated many times that Gree relies entirely on its own funds from chip research and development to the construction of the whole industry chain, and has not applied for any subsidies from the state. Behind this self-confidence and strength is a challenging and innovative entrepreneurial process. China Exportsemi will try to deeply interpret the story of Gree's self-developed chips and show Gree's technological breakthroughs and industry influence.
Gree chip research and development process: from scratch to industry leadership
Gree Electric's entry into the chip industry has not been smooth sailing. In 2018, Gree established a wholly-owned subsidiary, Zhuhai Zero Boundary Integrated Circuit Co., Ltd., and began to independently develop chips, focusing on the development of main control chips and power devices for household appliances such as air conditioners and commercial multi-connections. In the early days, the outside world generally questioned the feasibility of Gree's "core making", but the company still took this step firmly.
In 2019, Gree's self-developed chips exceeded the 10 million shipment mark for the first time. This is an important technical verification that proves its chip design and production capabilities. In the following years, Gree chip shipments continued to climb:
1. 2020: Cumulative shipments reached 38 million, a significant increase;
2. 2021: Exceeded 72 million by the end of the year;
3. 2022: Historic 100 million units, with an average annual shipment of more than 36 million units.
At present, Gree's chips have been fully applied in core products. Taking 32-bit MCU chips as an example, it has been widely used in home air conditioners, commercial multi-connections, remote controls and other devices. This series of progress has consolidated Gree's technological advantages in the field of home appliances.
Figure: Gree's self-developed chip shipments exceeded 100 million, Dong Mingzhu was proud: No state found used!
Technological innovation: break through the barriers of chips
Gree Electric Appliances can step into the chip industry from the field of home appliances, which is inseparable from continuous technological innovation. According to the information on the official website of Zhuhai Zero Boundary Integrated Circuit Co., Ltd., the chips independently developed by Gree have reached industrial-grade quality and have the following characteristics:
1. High reliability: Cope with complex environments and adapt to industrial and household scenarios;
2. Low-power design: reduce energy consumption, in line with the concept of green manufacturing;
3. Low-cost control: optimize the production process and improve market competitiveness.
At present, the chip series developed by Gree includes MCUs, AIoT SoCs and power semiconductors. Among them, 32-bit MCU chips have significant advantages in performance and application fields, which can not only meet the needs of home appliances, but also gradually expand to consumer electronics, industrial control, health care and other industries. Gree has also applied for patents such as "a low-power chip and its preparation method", showing its deep commitment to basic technological innovation.
Financial Performance: The Secret to Contrarian Growth
Despite the challenging overall market environment in 2024, Gree's financial performance is still bright. According to its third-quarter financial report data, Gree Electric achieved revenue of 46.939 billion yuan, a year-on-year decrease of 15.84%, but the net profit attributable to the parent company increased by 5.47% year-on-year to 7.825 billion yuan. This shows that Gree has maintained the profitability of its core business while optimizing its business structure.
Judging from the data in the first three quarters of 2024, Gree Electric's main business income was 132.2 billion yuan, a year-on-year increase of 2.9%. Although some businesses (e.g. other revenues) decreased by 45.3% year-on-year, this reflected more the results of the company's internal strategic realignment than the weakening of core competitiveness.
As a new growth point for Gree, the chip business is constantly improving its strategic position. Dong Mingzhu mentioned in an interview after the release of the financial report: "The success of our self-developed chips is a proof of our insistence on technical independence, and it is also an important pillar to promote the company's growth in the future.”
Dong Mingzhu's entrepreneurial philosophy: technical autonomy and self-confidence
Dong Mingzhu's management style and innovative thinking have played a key role in Gree's chip entrepreneurship process. She once publicly said: "Chips are the core of an enterprise's future competition, and if you always rely on others, you may be 'stuck' at any time." This sober understanding prompted Gree to invest heavily in the establishment of its own chip R&D team.
Compared with relying on government subsidies, Dong Mingzhu chooses to promote technological research in a market-oriented way. This concept not only improves the independence of Gree's chip business, but also provides a useful reference for other domestic enterprises. Dong Mingzhu said proudly: "Gree made cores, without letting the country pay a penny, this is our confidence in China's manufacturing!"
Industry Impact and Competitive Landscape
Gree's chip business has not only enhanced its core competitiveness, but also had a positive impact on the domestic chip industry. In the global chip patent rankings, Gree ranks among the top ten, which is the first breakthrough of Chinese home appliance companies.
At the same time, Gree's success is also reshaping the industry landscape. Taking the application scenario of Gree chip as an example, its coverage areas include:
1. Consumer Electronics: Home Appliances and Smart Home Devices;
2. Industrial control: high-precision sensors and motor control systems;
3. Healthcare: wearable devices and health monitoring terminals.
In the future, with the increase in demand for domestic substitution, Gree's chip technology is expected to be further applied in a wider range of fields and compete with international chip giants.
Conclusions and future prospects
The success of Gree Electric's self-developed chips is not only an important embodiment of the improvement of its core competitiveness, but also a microcosm of the rise of the domestic chip industry. Through independent R&D strategy and continuous technology investment, Gree has successfully crossed the entrepreneurial threshold of "from zero to one" and won a place in the domestic and foreign markets.
Looking forward to the future, with the further cultivation of Gree in the field of chips, its technological innovation will inject new momentum into more industries, and also provide a demonstration path of "independent innovation and continuous investment" for the domestic semiconductor industry.
Through an in-depth analysis of Gree's entrepreneurial story, it can be seen that technological breakthroughs, market layout and management concepts have jointly achieved the brilliant achievements of Gree's self-developed chips. This is not only the glory of Gree, but also the pride of Made in China.
Reference Sources:
1. Gree Electric Appliances financial report data: from Gree Electric's financial report for the third quarter of 2024;
2. Zhuhai Zero Boundary Integrated Circuit Co., Ltd.: official website and public patent information;
3. Sina Finance: Relevant industry reports and public interviews with Dong Mingzhu;
4. Global Chip Patent Data: Industry Journal Reports and Authoritative Databases.
