Good News on Listing | Frost & Sullivan Congratulates Guangdong Xidi Microelectronics Co., Ltd. on Successfully Listing on the Sci-tech Innovation Board (688173.SH)

Guangdong Xidi Microelectronics Co., Ltd. (hereinafter referred to as "Xidi Micro") successfully listed on January 21, 2022, issuing a total of 40,010,000 shares at an issue price of RMB 33.57 per share.

The company is one of the leading domestic semiconductor and integrated circuit design enterprises, with its main business focusing on the research, development, design, and sales of analog integrated circuit products including power management chips and signal chain chips. The company's main products cover DC/DC chips, super fast charging chips, lithium battery fast charging chips, port protection and signal switching chips, etc., and are currently mainly applied in fields such as mobile phones, laptops, and wearable devices. The company's core founding team and management team have profound experience in the field of analog chips, possess the capability to develop high-performance products, and their products have significant competitive advantages in design. With high-efficiency, low-power consumption, and high-reliability product performance, compared with industry competitors, some models have key technical indicators that have exceeded domestic and international competitors, and possess the performance to compete with leading domestic manufacturers. Frost & Sullivan has long been paying attention to the global and Chinese integrated circuit industries, has published a large number of research reports, and has been widely cited in the prospectuses of leading Sci-tech Innovation Board listed companies in the industry, helping customers accelerate growth.

Integrated Circuit (IC) is a miniature electronic device or component that uses certain processes to interconnect the transistors, resistors, capacitors, inductors, and other components required in a circuit with wiring on one small or several small semiconductor wafers or dielectric substrates, and then encapsulates them in a tube shell to form a miniature structure with the required circuit function. The integrated circuit industry is the core of the information technology industry and a strategic, fundamental, and leading industry that supports economic and social development and ensures national security.

Market Size of Integrated Circuits in China

Although China's integrated circuit industry started relatively late, it has become the main driving force for growth in the global integrated circuit industry due to many advantageous conditions such as huge market demand, stable economic development, and favorable policy environment. In recent years, with the continuous improvement of market demand in consumer electronics, mobile Internet, automotive electronics, industrial control, medical electronics, etc., as well as the continuous introduction of national support policies, the development of China's integrated circuit industry has been rapid. In 2020, the market sales volume of China's integrated circuit industry was RMB 892.81 billion, a year-on-year increase of 18.1%. In the next five years, China's integrated circuit industry will grow at a compound annual growth rate of 16.2%, reaching a market size of RMB 1893.19 billion by 2025.

Analog chips refer to chips that process continuous physical quantities such as light, sound, electricity/magnetism, position/speed/acceleration, and natural analog signals such as temperature. According to product types, they are mainly composed of power management chips and signal chain chips. Among them, power management chips mainly refer to circuits that manage batteries and electrical energy, and signal chain chips mainly refer to circuits used for processing signals.

Global Market Size of Analog Chips

Due to the long usage cycle of analog chips, the market growth rate is slightly different from that of digital chips, and the market size shows a steady expansion trend. In 2020, the global market size of the analog chip industry was about $54 billion. The downstream markets of analog chips mainly include communication, automotive, industrial and other fields. Communication is the most core downstream market of analog chips, accounting for about 40.8% of the market size in 2020, including mobile phones, network and communication equipment, etc.

Market Size of Analog Chips in China

The market size of analog chips in China accounts for more than 50% globally and is the world's largest analog chip consumer market, with a growth rate higher than the overall growth rate of the global analog chip market. In 2020, the market size of China's analog chip industry was about RMB 250.35 billion, with a compound annual growth rate of about 5.8% from 2016 to 2020. With the dual-wheel drive of new technologies and industrial policies, the future of China's analog chip market will embrace development opportunities. It is expected that by 2025, the market size of China's analog chip market will grow to RMB 333.95 billion, with a compound annual growth rate of about 5.9%.

Global Market Size of Power Management Chips

The global power management chip market has broad market space. In 2020, the global market size of power management chips was about $328.8 billion, with a compound annual growth rate of 13.52% from 2016 to 2020. With the development of downstream markets such as 5G communication, new energy vehicles, and the Internet of Things, the number and variety of electronic devices continue to grow, making the management of the electrical energy application efficiency of these devices more important, thus driving the growth of power management chip demand.

Market Size of Power Management Chips in China

In 2020, the market size of power management chips in China exceeded RMB 80 billion, accounting for about 35.9% of the global market share. In the next few years, with the application expansion of domestic power management chips in fields such as household appliances and emerging 3C products, it is expected that the market size of domestic power management chips will still grow rapidly. It is expected that from 2020 to 2025, the market size of power management chips in China will grow at a compound annual growth rate of 14.7%, reaching a market size of RMB 159.43 billion by 2025.

Frost & Sullivan has rich research experience in the communication, semiconductor, and IT solutions sectors, assisting well-known enterprises to successfully list on the capital market. Recent successful listing cases include Nomad (8645.HK), Can.NASDAQ, Master Lu (3601.HK), Yaxin Technology (1675.HK), China Tower (0788.HK), King Crown Holdings (8606.HK), Atlinks (8043.HK), Aibo Technology (2708.HK), Anli International (8410.HK), Junmeng International (8062.HK), etc.

Since the first batch of companies on the Sci-tech Innovation Board were listed in July 2019, Frost & Sullivan reports have also been widely cited in the prospectuses of leading Sci-tech Innovation Board listed companies in the industry, including: Mawei Biotech (688062.SH), Yarong Medicine (688176.SH), BeiGene (688235.SH), CanSino Biologics (688246.SH), Dizhe Medicine (688192.SH), Novogene (688105.SH), Anlu Information Technology (688107), Chengda Biology (688739.SH), Gecko Microelectronics (688728.SH), Polchen Semiconductor (688123.SH), Huaxi Biosciences (688363.SH), Junshi Biosciences (688180.SH), Zhejiang Oncology Sciences (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., and are considered the most powerful, professional, and influential industry research institutions in the industry. We hope to work with enterprises to understand industry trends, seize development opportunities, jointly promote the innovation and upgrading of major industries in China, and build a better future.

01. Frost & Sullivan helps Nomad successfully list in Hong Kong (8645.HK)

02. Frost & Sullivan helps Can.NASDAQ successfully list in the US

03. Frost & Sullivan helps Master Lu successfully list in Hong Kong (3601.HK)

04. Frost & Sullivan helps Yaxin Technology successfully list in Hong Kong (1675.HK)

05. Frost & Sullivan helps China Tower successfully list in Hong Kong (0788.HK)

06. Frost & Sullivan helps King Crown Holdings successfully list in the US (8606.HK)

07. Frost & Sullivan helps Atlinks successfully list in Hong Kong (8043.HK)

08. Frost & Sullivan helps Aibo Technology successfully list in Hong Kong (2708.HK)

09. Frost & Sullivan helps Anli International successfully list in Hong Kong (8410.HK)

10. Frost & Sullivan helps Junmeng International successfully list in Hong Kong (8062.HK)