Since the power management chip industry is more profitable plus the entry threshold is low, it attracts many potential entrants to compete every year, but most of the power management chip enterprises can only compete viciously in the low-end market due to the low technical threshold. In recent years, with the growing prosperity of the downstream market segments, the power management chip industry investment and mergers and acquisitions heat rising.
Power management chip is an analog chip segments
We will be used to deal with analog signals called analog chip. In electronic systems, analog chips have many functions, such as signal reception, signal amplification, digital-to-analog signal conversion, voltage regulation, comparison and other functions. Common analog chips are operational amplifiers, digital-to-analog converters, phase-locked loops, power management chips, comparators and so on. Common digital chips are CPUs, MPUs, and so on.
Promising market outlook
China's end-to-end electronics manufacturing boom for the power management chip industry provides excellent space for development, with China's new energy vehicles, medical equipment and other markets continue to grow, the growing demand for power management chips. According to the analysis of Transparency Market Research, an international market research organization, the global power management chip market size will still maintain high growth in 2019, of which the Asia-Pacific region, mainly in the mainland, is the biggest growth driver in the future, and predicts that the global power management chip market size will reach 56.5 billion U.S. dollars by 2026.
Industry investment enthusiasm
In recent years, the power management chip industry has maintained a high degree of enthusiasm for investment. On the one hand, due to the continuous influx of new entrants, market competition has intensified, and a part of the industry enterprises with strong comprehensive strength hope to obtain synergistic benefits through outreach mergers and acquisitions to establish a corporate moat; while on the other hand, with the continued vigorous development of new energy vehicles and other subsectors, the industry's market space has been steadily increasing, and many enterprises hope to cut into these applications through investment and mergers and acquisitions in order to gain a competitive advantage.
In December 2018, power management chip factory Chih Hsin acquired Classico at NT$23 per share, acquiring up to 90% of the equity, a premium of 36.9%. Chih Hsin emphasized that through this merger and acquisition, it can expand the scale of operation and enhance international competitiveness, operate in a more efficient manner, and give full play to the comprehensive effect.
In December 2018, Shengbang proposed to use its own funds of RMB 114.8 million to acquire a 28.7% stake in Yutai Semiconductor Nantong Co. and signed the Equity Transfer Agreement. After the completion of the transaction, the company will hold 28.7% of the subject company and become the largest shareholder. Yu Tai Semiconductor products up to more than a hundred kinds, including boost switching regulator, step-down switching regulator, over-voltage protector, lithium battery charger, LED driver and AC / DC controller and widely used in smart phones, set-top boxes, mobile power supply, POS, security and many other fields. The subject company has a deep accumulation of technology and products, downstream applications in many markets and some segments of the market in the rapid growth stage, the development prospects are very broad.
October 2018, Dialog announced that Apple determined to pay $600 million, of which $300 million to buy Dialog in the power management chip 300 R & D personnel and related patents, another $300 million will ensure that the next three years Dialog products to meet Apple's needs.
--? For more information, please refer to the "China IC Industry Market Demand Forecast and Investment Strategy Planning Analysis Report" published by Prospect Industry Research Institute.