Home appliance companies have poured into the "core" track, is the hot spot or long-term plan?

[Further appliance companies have poured into the "core" track, is it hot or long-term plan? 】 ZTE event is like a catalyst, causing home appliance companies to get involved in the field of chips. Dong Mingzhu, chairman of Zhuhai Gree Electric Co., Ltd., expressed that he would not hesitate to invest 50 billion yuan to research chips and that Konka Group would announce the establishment of a semiconductor technology division. This is in addition to brands such as TCL, Changhong, Skyworth, and two home appliance manufacturers On the "core" road. In the eyes of the industry, home appliance companies in the current layout of the chip can not help but some "follow the trend" of the suspect, from the long-term development point of view, "core" and the main business can be balanced.

One after another into the track

Recently, the domestically-established home appliance company Konka Group has announced the establishment of a semiconductor technology business unit to formally enter the semiconductor industry. However, as early as a year ago, TCL, Changhong, a black power company, has entered the chip field and is continuing to increase its expansion in this area.

Konka said that its own advancement into the chip field is not a "head of a fever." Reviewing this year's CES (International Consumer Electronics Show), Konka has launched the 8K chip and won the CES Innovation Award. And in the view of Li Hongyi, vice president of Konka Group, Konka itself also has a large number of semiconductor needs, and this market has great potential.

In this regard, Konka has also formulated a plan to use 5-10 years, rank among the ranks of international excellent semiconductor companies, committed to becoming China's top 10 semiconductor companies, with annual revenue of 10 billion yuan.

In addition, Gree Electric Appliances began to reflect on its own self-control ability. According to Gree Electric's director-general Wang Jingdong, in the conference call, ZTE has brought great stimuli to it. Gree has the ability to be an important component of the compressor. Next, it must intensify efforts to develop its own air-conditioning chips.

Obviously, the ZTE event is like a catalyst, and Dong Mingzhu's decision to “succeed in chip research even if it costs 50 billion yuan” is in the transformation of the household electrical appliance companies looking for new directions.

As early as the end of April, Gree Electric Co., Ltd. announced its 2017 financial report that its revenue and net profit all reached historical highs, but it also announced no dividends. As for the reasons, Gree will gradually expand its business-related diversification on the basis of "technology-related diversification," and highlight its role in smart equipment, smart homes, and new energy.

At present, the layout of the chip field has also become an important plan for Gree in the future.

Policy support has also become a turning point for corporate layout. Faced with the huge demand of the chip market, a large fund was established several years ago to focus on fostering the integrated circuit industry. According to statistics, as of the end of 2017, the total investment of the major funds was 118.8 billion yuan, and the actual investment was 81.8 billion yuan. The establishment of the second phase of the investment fund this year is also progressing. It is planned to raise funds of RMB 150-200 billion.

However, for the “core building” campaign of home appliance companies, home appliance industry observer Hong Shibin frankly stated to reporters that chips occupy a far less position in the home appliance industry than the communications equipment industry. As far as the current situation is concerned, after the ZTE Incident, there are indispensable chips for home appliance companies that have to follow the hot spot to “follow the trend” and there is still no concrete plan for future development.

"Core" pressure is not small

"Semiconductor business is not accomplished overnight. It is not something that can be achieved in the short term. This is a protracted war," said Zhou Bin, president of Konka Group. It is easy to formulate the goal of “making cores”, and there is a lot of pressure to implement home appliance companies.

The first thing that comes before you is the enormous financial pressure. According to Huawei, which has laid out its chips early and has achieved very little, data show that it had a turnover of 603.6 billion yuan last year, a net profit of 47.5 billion yuan, and R&D expenses of 89.7 billion yuan. R&D expenditures that are nearly twice the net profit can be described as astronomical. It is also recalled that Huawei’s research and development expenses in recent years have also exceeded net profit.

By comparison, Gree Electric Appliances achieved revenue of 148.286 billion yuan last year, an increase of 36.92% year-on-year, and net profit attributable to the mother was 22.402 billion yuan, a year-on-year increase of 44.87%. Taking Dongming Zhukou's R&D expenditure of 50 billion yuan for three years on average, the investment accounts for half of the annual net profit, but it still has a far cry from the investment rate of Huawei.

In front of Konka is a more cruel reality, even if the results last year, a breakthrough, but according to financial data show that Konka revenue in 2017 was 31.228 billion yuan, net profit of 5.057 billion yuan. Compared with the industry leaders, financial data that is unsatisfactory has no advantage, and even if the company's investment superimposes the high cost of “core building”, it may even result in insolvency.

Hong Shibin said that entering the field of chips for the home appliance companies, the input cost is huge and the process is extremely long. Based on the overall development of the home appliance industry, last year's sales performance was not satisfactory, and this trend continued into the first quarter of this year. In the process of “making cores”, how to ensure the steady development of the main business under the premise of investing a large amount of funds is also a problem.

There are also insiders pointed out that under the support of huge funds, it is necessary to see that the chip industry has a long return period, even if the previous high spending, but the situation is still uncontrollable later, the core business and "core" movement is easy Contradictions.

In addition, talent and technology have also become the threshold for home appliances companies to “make core”. It is not a simple day to break through these short boards. It has been suggested that home appliance companies can “join hands” with chip manufacturing companies, and that intervention in this new area through share participation, joint ventures, etc., is also a safe move.

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