Securities code: Verisilicon Microelectronics (Shanghai) Co.Ltd(688521) securities abbreviation: Verisilicon Microelectronics (Shanghai) Co.Ltd(688521) Announcement No.: 2022017 Xinyuan Microelectronics (Shanghai) Co., Ltd
Announcement on voluntary disclosure of the investigation of reception institutions
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear legal responsibility for the authenticity, accuracy and integrity of its contents according to law.
Xinyuan Microelectronics (Shanghai) Co., Ltd. (hereinafter referred to as “the company”) received the institutional research in the form of teleconference on March 17, 2022. Now the situation is announced as follows: I. research
Time: 16:00 – 17:00, March 17, 2022
Research method: teleconference communication
Name of research institution (in no order): Changjiang Securities Company Limited(000783) , Taikang assets, Tian’an life insurance, Bodao fund, Boshi fund, HSBC Jinxin, Harvest Fund, BOC fund, Zheshang fund, Oriental alpha, Morgan Stanley Huaxin, PICC Hong Kong assets, Baoying fund, Shanghai Investment Morgan, etc
Receptionist of the company: Mr. Wayne Wei Ming Dai, chairman and President, Ms. Shi Wenxi, chief financial officer and Secretary of the board of directors II. Introduction to the company
On February 22, 2022, the company disclosed the announcement of 2021 annual performance express (Announcement No.: 2022016). It is expected that the company will realize an operating revenue of 2.139 billion yuan in 2021, with a significant year-on-year increase of 42.04%. In 2021, the scale effect of the company has appeared, driving the continuous improvement of profitability and turning losses into profits. The net profit attributable to the owners of the parent company is expected to be 14.194 million yuan, an increase of 397604 million yuan over the same period of the previous year. In the fourth quarter of 2021, the company realized a net profit attributable to the owners of the parent company of 360103 million yuan, making profits for three consecutive quarters. The above data has not been audited by an accounting firm. The details are based on the main questions exchanged by the company in March 2021 and the summary of the company’s reply
1. Under the current tight production capacity, is the capacity of the company’s mass production business guaranteed
Reply: under the current tight global production capacity environment, many companies are even difficult to obtain the same production capacity as the previous year, but Xinyuan’s mass production business in 2021 still achieved good results. It is expected that the revenue of mass production business in 2021 will increase by 35.40% year-on-year. The guarantee of production capacity mainly benefits from the wafer factory neutrality strategy and good supply chain management mechanism of Xinyuan.
The company adheres to the principle of Wafer Factory neutrality and maintains close contact and long-term cooperation with wafer factories. In the long-term cooperation, Xinyuan has established a good business reputation, which is more conducive to booking production capacity under the condition of tight production capacity. The tight production capacity of wafer factories in the industry will indeed have a certain impact on the company, but the company has made a positive response. By maintaining a good cooperative relationship with many wafer manufacturers, purchasing and booking production capacity in advance, it is expected to reduce the risk caused by production capacity as much as possible and meet the needs of customers for normal chip production. Without the influence of major natural disasters and other factors, the gradual release of some new production capacity and panic hoarding have been greatly improved. It is expected that the lack of core will be gradually alleviated in the future. To sum up, the company expects that the future mass production business will continue the growth trend.
2. What is the recent research and development progress of your semiconductor IP business
Reply: in November 2021, the company’s image signal processor IP (ISP IP) obtained the certification of automobile functional safety standard iso26262. Passing this certification will accelerate the company’s strategic layout in the field of electric vehicles and intelligent vehicles. In the field of intelligent vehicles, the company has layout from smart cockpit to automatic driving technology. IP GPU IP has been widely used in automobiles, including information entertainment system, dashboard, body ring, driver status monitor system, ADAS, self driving car, etc. Many world-famous automobile OEM manufacturers have adopted Xinyuan GPU for on-board information and entertainment system or instrument panel; Xinyuan’s neural network processor IP has also been used by many customers for its ADAS products. Other IPS of the company are also gradually carrying out the process of vehicle regulation certification.
In addition, the company launched the independently developed display processor IP (display processor IP) in the first half of 2021, which is a digital IP for image display processing. Xinyuan’s display processor technology is a microprocessor technology for image display processing. It supports high dynamic range (HDR) video and image processing. It can provide image superposition, mixing, chroma and saturation adjustment, gamma correction, high dynamic range color space conversion and image quality optimization for VGA to 8K display devices. By launching the display processor IP, Xinyuan further enriched the reserves of its own core processor IP, improved its own pixel processing IP (glassto glass) platform, and expanded the IP authorization scope of the company.
3. I would like to ask about your company’s research and development progress in chipet and how your company will participate in chipet ecology
Reply: Xinyuan has rich processor IP and leading chip design capability. In addition, we have established long-term cooperative relations with global mainstream packaging and testing manufacturers and chip manufacturers, so it is very suitable for launching chiplet business. In recent years, we have been committed to promoting the industrialization of chiplet’s chip based IP platform and chiplet’s chip based services. Based on the concept of “IP chip” and “chip platform”, the high-end application processor platform recently launched by Xinyuan is designed with the architecture of chipet. This high-end application processor platform only took 12 months from definition to streaming. In May 2021, the engineering sample has been returned to the film and lit up smoothly on the same day. Linux / chromium operating system, youtube and other applications have been running smoothly on the engineering sample. The sample machine based on the sample has also been successfully displayed in various activities and attracted a lot of attention. This high-end application processor platform also integrates many IPS of Xinyuan, including Xinyuan’s neural network processor NPU, image signal processor ISP, video processor Vpu, audio digital signal processor and display controller. The high-end application processor platform is mainly for mobile phones, tablets, laptops and other applications. At the same time, it is also suitable for automatic driving. At present, the platform is carrying out verification on the automatic driving domain controller.
With the gradual unification of chiplet interface in the industry and the gradual maturity of packaging technology, we will continue to promote the development of chiplet technology. We plan to continue to promote the iterative research and development of chiplet solution of high-end application processor platform from 2022 to 2023, and continue to promote the industrialization of chiplet in the fields of tablet computer, automatic driving and data center through customer cooperation projects and industrial investment, The original chip may be the first batch of enterprises in the world to launch chiplet commercial products for customers.
4. What is your company’s layout in risc-v field
Reply: with the development of the Internet of things era, the scene demand is fragmented and differentiated, which brings great demand for customized, modifiable, low-power and low-cost risc-vcpu. Xinyuan pays attention to IP, chip design and software in risc-v field, and has been actively layout in this field.
In September 2018, Shanghai Integrated Circuit Industry Association recommended Xinyuan as the first chairman unit to lead the establishment of China risc-v Industry Alliance (crvic). At present, the number of member units of the alliance has reached 147, and launched a series of excellent IP cores, chips, systems and software around risc-v instruction set; On December 17, 2021, China risc-v industry alliance, Verisilicon Microelectronics (Shanghai) Co.Ltd(688521) and Shanghai Integrated Circuit Industry Cluster Development Promotion Agency jointly hosted the first Dishui Lake China risc-v industry forum, which focused on promoting ten innovative domestic risc-v chip products, aiming to promote the connection between Chinese risc-v chips and application and investment institutions, and promote the rapid industrialization and application innovation of domestic risc-v chips.
In addition to holding meetings, building industrial exchange platforms and investing in important enterprises in the industrial chain, Xinyuan, as a leading chip design service enterprise, has rich own processor IP and leading chip design ability. The company has many customer projects based on risc-v core. Based on risc-v designed by open source architecture, the company has developed TWS Bluetooth connection platform project, which integrates a variety of core IP technologies independently developed by the company, including dual-mode Bluetooth RF, controller and protocol stack, audio codec, audio codec, digital signal processor, adaptive active noise reduction and artificial neural network computing unit, which can be applied to wireless Bluetooth headset, intelligent audio equipment Health detection equipment, intelligent Internet of things and other fields with market space. The company has cooperated with international leading MCU companies to help customers develop and design industry-leading MCU chips with very low power consumption and integrated Bluetooth.
In addition, combined with its own technical reserves, the company provides a risc-v open hardware platform based on single core, dual core and quad core rv64cpu clusters to support the development and promotion of open source software. This platform integrates the neural network processor NPU, graphics processor GPU and image signal processor ISP that have been very successful in the market, and provides relevant Linux Software SDK, which can help enterprises speed up the design and verification of chip software and hardware, and quickly launch products to the market.
5. Does your company have relevant technical capability in Ar / VR field
Reply: AR / VR equipment is one of the important entrances to the “meta universe”. According to Arkin investment, the AR market may expand from less than $1 billion to $13 billion by 2030. Xinyuan has a very low-power and high-performance chip design platform for AR / VR and other fields, as well as nano and Pico series low-power IP combinations for low-power applications. It can create products suitable for different power modes, meet all scene applications that are always online, low-power and full performance, and serve customers in multiple application fields including AR / VR wearable market.
The company began to cooperate with the leading enterprise in the field of smart wearable four years ago. Taking advantage of its low-power technology, the company has actively laid out the directions of Bluetooth headset, smart watch / bracelet and smart glasses, and has verified the nano and Pico series low-power IP combination created by Xinyuan for low-power applications in chips and terminal products. At present, the company has provided one-stop customization service for AR glasses chips for a well-known Internet enterprise.
6. Please introduce your company’s current project progress in advanced process technology.
Reply: in terms of advanced semiconductor process nodes, the company has the successful experience of 14nm / 10nm / 7Nm / 5nm FinFET and 28nm / 22nm fd-soi process node chips. At present, 5nm design projects have been completed and many design projects are pending. Among the chip design projects implemented by the company, the process node projects of 14nm and below are mainly distributed in data center, Internet of things and other fields. With the smooth implementation of the above customer projects, the company will gradually enter the mass production stage and continue to contribute revenue.
7. Please introduce the layout and project progress of video transcoding.
Reply: Xinyuan’s data center video transcoding platform adopts Xinyuan’s industry-leading video codec core, which can provide customers with an integrated solution of high-performance video transcoding chip based on its own IP and open source software. It is widely used in video acceleration card, streaming media and video on demand, data center server and security monitoring video system. While providing customers with high-performance video processing, Greatly reduce the overall power consumption and cost.
At present, the company’s video transcoding platform project is progressing smoothly. The research and development of the first generation platform has been completed in the second quarter of 2021. It has been adopted by many customers by means of IP authorization and one-stop chip customization business. It has been adapted and shipped in succession. The customers of the platform include many large Internet companies and well-known short video service providers. The transformation of this customer group reflects that the company can provide complete system solutions in semiconductor IP, chip customization services and software support services. Cooperating with these customers will help to improve the profitability of the company’s business. In addition, the one-stop chip customization project of the second generation video transcoding platform based on Xinyuan IP (including software and hardware collaborative verification) has been basically completed. Based on the original technology, the platform enhances the video transcoding ability of different formats to 8K, increases the support for AV1 format, and adds AI processing ability. In addition, it also adds a high-performance multi-core risc-v CPU and hardware encryption engine.
It is hereby announced.
Board of directors of Xinyuan Microelectronics (Shanghai) Co., Ltd. March 18, 2022
