JIEJIE Semiconductor is mainly engaged in the research, development, design, production and sales of power semiconductor chips and devices. The main products include thyristors, protective devices, diodes, MOSFET devices and chips, SiC/GaN devices and so on. Thyristors and diodes adopt IDM vertical integration mode k, and MOSFET adopts Fabless + sealed test mode.
Figure 1: Office Building of JIEJIE Semiconductor Company
Due to the sluggish consumer demand and the pressure on traditional businesses such as thyristors, the main business income of 1-3Q22 Company was 1.285 billion yuan, down 4.55% year-on-year, and the net profit attributable to the shareholder was 293 million yuan, -24.54% year-on-year.
The layout of automotive grade products is comprehensive, and the proportion of MOSFET is rapidly increasing. The company's car-level products (MOS, TVS) can be widely used in automotive power steering, oil pumps, water pumps, windows, seats and so on. Currently, SGTMOS (Super Gate Turn-off MOS) has been successfully applied in vehicles, with a positive customer development situation. Mass production of Super Junction MOS has begun, and with the gradual increase in capacity on the company's 8-inch production line, there is an opportunity for growth in demand for medium and high-voltage power semiconductors, coupled with increased opportunities for domestic substitution. This suggests that automotive-grade products are expected to grow rapidly.
The localization rate of MOSFET is 30.5% in 2021, and it is estimated that the localization rate of MOSFET will reach 64.5% by 2026. According to the company's announcement, the automotive grade packaging production line project raised by convertible bonds will form an annual sales scale of 2 billion yuan after it is put into production. By the end of the third quarter of 2022, a total of 347 million yuan of engineering investment has been completed, and the project will be completed by the end of 2023. It is predicted that the production capacity of the company's fundraising projects will be gradually released in the future, and MOSFET business will become a new driving force for the company's performance growth.
The demand for industrial control is obviously warming up, and the demand for home appliances and consumer electronics industries is expected to gradually recover. The company's traditional business thyristors and protective devices are mainly aimed at industrial control, household appliances and consumer electronics. In 1-3Q22, the company's thyristor business declined sharply (YoY-41. 2%).
The short-term downward trend of global semiconductors will not change the long-term positive pattern. WSTS predicts that the semiconductor market size will drop to-4. 1% year-on-year to US $556.6 billion in 2023, and this downward cycle of global semiconductors is expected to bottom out in 3Q23. According to the survey information of industrial chain, since December 2022, the situation of industrial customers adding orders is obvious, and it is expected that the demand for thyristors and protective devices will gradually recover in the future.
The Demand for Industrial Control of JIEJIE Semiconductor is Showing a Clear Recovery, with Automotive Grade Products Driving New Growth-China.exportsemi.com
