Securities code: 300456 securities abbreviation: Sai Microelectronics Inc(300456) Sai Microelectronics Inc(300456)
Record of investor relations activities
No.: 2022-007
■ specific object research □ analyst meeting
□ media interview □ performance briefing
Investor relations activities □ press conference □ roadshow activities
Category □ site visit
□ others
CGS-CIMB Securities(USA),Inc Yuwei Cao
Asian Equity Specialty SalesPeter Vogel
Name of participant and Lazard Asset Management Robert Horton
Personnel name: principal global investors rijo oommen
Boston Partners John Zhao
Wasatch Advisors Pedro Huerta
Time: 8:30-9:30 am, February 15, 2022
Place online communication
Director, deputy general manager and Secretary of the board of directors: Zhang abin
Deputy general manager of listed company reception and securities affairs representative: Liu Bo
Personnel name: Securities Commissioner: Sun Yuhua
Securities Affairs Assistant: Liu Yanjun
The main questions and answers of listed companies are as follows:
1. What is the current business structure of MEMS and Gan? Operation of Swedish Fab1 & 2 investor relations activities? Has Beijing fab3 successfully transferred technology IP from Sweden? Gan’s main content: is the business in the business expansion stage or still in the R & D stage? Is it still facing the problem of supply chain shortage?
A: the company’s MEMS is mainly for communication, biomedicine, industrial automobile and consumer electricity
Sub areas, the business structure depends on the OEM needs of customers; Gan includes epitaxial materials and chip design. In recent years, Sweden Fab1 & 2 has continued to expand production, maintained business growth and good profitability. Beijing fab3 has completed the construction and preliminary preparation with the support and assistance of Sweden Fab1 & 2. At present, it has the ability of independent operation. The company’s Gan business not only has mature products, but also is developing new categories. The company has been trying to solve the supply problem of Gan business, including cooperation with domestic and foreign OEM manufacturers. At the same time, it is stepping up the construction of manufacturing capacity through a joint-stock subsidiary, in which the equipment has been basically in place and plant and other infrastructure are being built. 2. What products are involved in MEMS process development? What type of customers are you mainly targeting? Is there an area division? What customers does Sweden Fab1 & 2 have in the field of communication and biomedicine? A: for Swedish factories and Beijing factories, our NRE services are global, and which products to develop depends entirely on the needs of customers. The company does not have the motivation of active regional division. Our factory welcomes global customers and hopes that the global trade environment can be restored as soon as possible. However, in order to adapt to the current and future complex international environment, the company is trying to establish two sets of business cycle systems inside and outside China, that is, it can provide customers with process development and wafer manufacturing services at home and abroad. As in other fields, the company’s customers in the fields of communication and biomedicine include well-known large companies or emerging start-ups, but subject to the terms of the agreement, unless the customers voluntarily disclose, we cannot actively disclose the specific information of the customers. 3. What is the current operation and capacity utilization of Beijing fab3? How about the capacity plan? How does its technical capability and yield compare with Sweden Fab1 & 2? What customers does Beijing fab3 have? Does the product include silicon microphone, pressure sensor and silicon speaker? A: the operation of Beijing fab3 up to now meets our expectations. The capacity utilization rate has gradually climbed from zero. The capacity is continuously expanding, and the technical capacity is constantly accumulating. As it is positioned as a mass production factory, it also has requirements from customers,
The yield of some products of Beijing fab3 is higher than that of Swedish factories. In addition to some customers, such as Shenzhen general micro and Wuhan Minsheng, Beijing fab3 cannot disclose the specific names of other large and small customers. Beijing fab3 is trying to cover business fields such as communication, biomedicine, industrial automobile and consumer electronics, involving silicon microphone, electronic cigarette switch, inertial sensor, BAW filter, lidar, microfluidic devices, etc. of course, relevant businesses and products depend on customers and are at different stages, which still need more time to accumulate. 4. What are the driving factors for the company’s MEMS business growth? Does it include Chinese market factors? Does it include capacitive micromechanical ultrasonic sensors for biomedicine? Does it include infrared thermal imaging and lidar markets? A: these driving factors mentioned in the question are included. Orders come from global customers and ultimately from the hardware requirements transmitted by various terminal application scenarios. 5. Do some of the customers served by the company also have their own Fab factories? A: the company’s MEMS business mainly serves customers operating under fabless and fablite modes. Of course, sometimes there are customers operating under IDM mode. The company often has no OEM business conflict with such customers. 6. We can see that some analysts expect the company’s revenue and profit to grow strongly in 2022 and 2023. What are the main structures and drivers? How does the gross profit margin of Beijing fab3 compare to that of Sweden Fab1 & 2? A: the analyst report belongs to the third-party research results and does not represent the company’s opinions or actual situation, but we do have confidence in the future business. We expect MEMS to be the main driving force of growth and depend on the explosion of downstream hardware demand. We expect that the gross profit margin of mass production factory Beijing fab3 will be lower than that of boutique factory Sweden Fab1 & 2, but it can still have the normal gross profit level of semiconductor OEM.
7. Compared with the strong demand of the terminal application market, the company’s revenue and earnings per share in 2019 and 2020 are relatively low. Why does this happen? A: on the one hand, the company still holds the navigation and Avionics business before divestiture in 2019 and 2020; On the other hand, because the company was trying to expand MEMS production capacity at that time, the business potential has not been released. 8. Please introduce the consideration and current situation of fab6 and Fab7? A: as mentioned earlier, it is mainly based on the consideration of establishing two sets of business cycle systems. Fab6 is positioned as a 12 inch mass production line and Fab7 is positioned as a 6 / 8 inch pilot line. The two production lines are still in the stage of framework agreement and have not officially started construction, so objective construction cycle is required in the future. 9. MEMS is a small and competitive market. Is this why TSMC and SMIC have not invested more resources? This market includes not only the top five pure OEM manufacturers SMEI (silex), Teledyne, Sony, TSMC and X fab, but also pure OEM or IDM manufacturers such as Asia Pacific, IMT, Philips, vanguard, tower jazz, UMC group, STM and Rohm, as well as emerging manufacturers such as Guangzhou Zengxin? How does the company position itself in this market? A: it must be acknowledged that the current market scale of MEMS is still relatively limited, but we are optimistic about its future demand explosion potential. It is inconvenient for the company to evaluate other manufacturers, but it is obvious that the company is lack of experience in large-scale production and operation, and needs the accumulation of business and time; The advantage of the company lies in its advanced and abundant manufacturing technology, and its production capacity is being distributed and expanded all over the world. We are positioned as the world’s leading pure OEM. We hope to be prepared for the outbreak of market demand in advance and give full play to the potential of process technology.
10. According to the agreement signed by the company in December 2021, the company plans to acquire an 8-inch wafer factory from ELMOs. Which entity does the company specifically purchase? What is the capacity level? What is the background of the transaction? What does ELMOs’s car chip involve
Category? Are these chips sold directly to car manufacturers or parts companies? So far, how is the approval progress of this transaction?
A: what we plan to acquire is the chip manufacturing department of ELMOs company. In the transaction, we specially set up an SPV company to undertake the relevant assets, personnel and business of FAB5 factory. The Fab has a higher production capacity than silex in Sweden and is in good operation. The background is that ELMOs hopes to focus on the design business in the next step. For Saiwei, on the one hand, it can enter the field of automobile chip OEM based on new energy and intelligent automobile industry, on the other hand, it can provide new capacity for MEMS business in silex, Sweden, which is conducive to meeting the business needs from AR / VR and other fields. The automobile chips involved are applied to automobile airbag system, braking system, central control display, internal and external lamp regulation and control, engine control, electronic and electrical system, etc. the chips are sold to automobile component suppliers. So far, the transaction is still in the process of approval. If it goes well, the two sides hope to complete the delivery as soon as possible before the end of June this year.
Annex list (if any) none
Date: February 15, 2022
