At present, the products are mainly fingerprint identification (optical fingerprint chip, traditional capacitor chip) and human-computer interaction (touch chip), and the market is mainly mobile intelligent terminal market represented by smart phones (core market), tablet computers and notebook computers, among which fingerprint identification is the core business of the company.
Facing the future, the company expanded into the field of Internet of Things, and built an integrated platform for chip design and software and hardware product technology.
Internet of Things: Through physical sensing (sensors), information processing (smart chips), wireless transmission (5G, wifi, Bluetooth) and other technologies, the connection between things and people is realized, and intelligent life is realized.
The development process of the company can be summarized as the following stages:
Ding Hui started the business of fixed telephone chips.
The first explosion: capacitive touch chip
In 2006, a capacitive touch chip (human-computer interaction service) was developed.
20 10 small batch production and sales of capacitive touch chips.
In 20 1 1-20 14 years, with the rapid promotion of global smart phones, the sales of capacitive touch chips of the company grew rapidly, which ushered in the first explosive growth. In 20 12, the operating income was 560 million, a year-on-year increase of 543%.
The second explosion: capacitive fingerprint identification chip
In September of 20 13, Apple released the iPhone 5s, equipped with capacitive fingerprint identification technology (fingerprint unlocking), which set off an upsurge of fingerprint identification.
Based on the accumulation of touch chip technology, we began to develop fingerprint identification chips in 20 13, and successfully developed and launched capacitive fingerprint identification chips in 20 14, and quickly became a major supplier in the world. In 20 16, the operating income was 3.08 billion, up by 175% year-on-year, which ushered in the second explosive growth, with a peak of 2,065,438+.
The Third Explosion: Optical Fingerprint Chip
In 20 16, Ding Hui began to take off-screen fingerprint identification technology (optical fingerprint chip) as its new main attack direction.
20 17 took the lead in exhibiting the world's first off-screen fingerprint identification technology and became a pioneer and pioneer.
In 20 17, vivo launched the first optical off-screen fingerprint mobile phone X20 Plus (full-screen mobile phone), followed by Huawei, OPPO, Xiaomi and Samsung. In 20 18, Apple released iPhone X, which was the first time to replace fingerprint recognition with face recognition to open the era of face brushing.
On 20 18, Ding Hui introduced commercial off-screen fingerprint identification technology.
The operating income of 20 19 was 6.47 billion, up 74% year-on-year, which ushered in the third explosive growth.
Increase profitability
20 12, 20 16, 20 19, with the launch of new products, there was explosive growth, and then the growth rate slowed down and the profitability weakened.
Due to technical externalities, the latecomers in the fingerprint chip industry catch up faster, the market space is squeezed, becoming saturated and the competition is fierce. Therefore, for industry participants, it is the core competitiveness to take the lead in developing new products and realizing mass production and commercialization before the next generation of technology upgrades.
20 17 Due to the maturity of capacitive fingerprinting technology, the market is saturated, the competition is intensified, the unit price of products is decreasing, and the profitability is declining. Until the second half of 20 18, optical fingerprint chips began to be commercialized on a large scale, which ushered in a new round of growth. 20 18 annual revenue growth 1. 1%.
In 20 19, the optical fingerprint chip ushered in explosive growth.
In 2020, due to the continuous increase of R&D investment, the net profit declined relatively greatly.
Asset-liability structure
This company is well funded.
Notes receivable, accounts receivable and inventory account for less and less.
Ding Hui Science and Technology is a design company with relatively low fixed assets, mainly driven by R&D, so the per capita output value, per capita salary and per capita R&D investment can reflect the company's most direct competitiveness.
Operating energy
The investment in R&D has been increasing, especially after 20 16.
As a chip design industry, keeping pace with the times and continuous innovation are the key to development.
competitiveness
The company has strong comprehensive competitiveness in the field of fingerprint identification chips, and is one of the few companies in the industry with core technical capabilities such as image sensor design, optical design and algorithm. The integration of hardware, software and algorithm has better compatibility, and the iteration period of product update is shortened, while competitors Wesley and Aegis still need outsourcing algorithms.
Future prospects
1, market prospect
Integrated circuit industry is the foundation and core of modern information industry and a national strategic industry.
Integrated circuit design is to develop and design various chip products according to market demand, and its growth mainly depends on the development of terminal markets, such as smart phones, tablet computers, mobile Internet, automotive electronics, medical electronics and so on.
In 2020, the global semiconductor market sales totaled US$ 440 billion, of which US semiconductor companies sold about US$ 208 billion, accounting for 47%, and China sold about US$ 65,438+0.5/kloc-0.70 billion, accounting for 35%.
In the smart terminal market, the growth rate of global smartphone shipments has slowed down. With the construction of 5G infrastructure, the subsequent wave of 5G replacement will promote the market recovery.
In the field of Internet of Things, under the background that demographic dividend and traffic dividend have basically ended, with the acceleration of connectivity (5G, wifi, Bluetooth), sensors (eyes) and smart chips (brains), the ecosystem of Internet of Things has been continuously improved and matured, and smart life has become a reality. The future of the Internet of Things industry contains great opportunities of the times.
In recent years, in the wearable field of the application of Internet of Things technology, the global shipments of smart wearable devices have maintained rapid growth.
2. Industrial structure
The integrated circuit industry mainly includes three fields: integrated circuit design, manufacturing and packaging testing.
FPC is a Swedish biosensor technology company. At the beginning, it mainly relied on providing fingerprint identification systems for major domestic banks, and it was also an unknown fingerprint identification manufacturer.
In 20 12, Apple acquired Authortec. Since then, Authortec only supplies products to Apple, and no longer provides any products and technologies to other manufacturers.
In September of 20 13, Apple released the iPhone 5s, equipped with capacitive fingerprint identification technology (fingerprint unlocking), which set off an upsurge of fingerprint identification.
FPC entered the field of fingerprint identification earlier, thanks to AuthenTec only supplying Apple products. In 20 14, Huawei launched Mate7, a fingerprint identification mobile phone, and then FPC cooperated with other Android mobile phone brands to quickly gain most of the domestic market share. The revenue of 20 1 142% FPC has increased 20 times in two years.
Ding Hui Science and Technology entered the mobile phone market with its touch business (touch chip). In 20 14, the strategic focus was adjusted, and the main direction was shifted to the fingerprint identification market, focusing on the development of capacitive fingerprint chips. Fingerprint identification chip products were introduced in 20 14, but as a latecomer, they were not recognized by big manufacturers at first, and the revenue increased by 3 1% in 20 15. Ding Hui cooperates with Meizu to launch MX4 Pro. Since then, Ding Hui has continued to increase its investment in R&D and started to solve technical problems. In 20 16, the world's first living fingerprint detection scheme was developed. This scheme can identify false fingerprints and improve the security of mobile payment, with obvious advantages. In cooperation with Meizu, ZTE and other companies, PRO 6 Plus and other living fingerprint technology products have been launched.
At the end of 20 16, the IFS fingerprint identification scheme combining touch and fingerprint was developed for the first time in the world, which was adopted by Huawei P 10 and other models, breaking the monopoly of FPC in the mid-to high-end Android mobile phone market, and the revenue of 20 17 increased by 65,438%.
In 20 15, FPC monopolized the domestic Android fingerprint chip market.
In 20 16, FPC accounted for 40% of the fingerprint chips of Android phones, ranking first.
On 20 17, Ding Hui and FPC had a fierce competition, and FPC had a slight advantage.
In 20 18, Ding Hui overtook FPC and became the first global supplier of fingerprint identification solutions for Android camp.
With the continuous breakthrough of technology in Ding Hui, the advantages of FPC in the past no longer exist, and FPC has become the mainstay of the industry by virtue of its low-cost localization advantage and quick response ability.
Full-screen mobile phones have quickly occupied the market and become the mainstream with their large screen and visual beauty. At present, full-screen mobile phones are divided into Apple mobile phone lineup with face ID recognition technology and Android mobile phone lineup with fingerprint recognition technology. Because of the good user experience, convenient unlocking and low cost, fingerprint identification still has advantages.
In the future, the combination of face recognition and fingerprint recognition is expected to become the mainstream trend.
Offscreen fingerprint identification technology can be divided into ultrasonic type and optical type.
Ultrasonic fingerprint identification: send out ultrasonic waves to scan fingers, establish 3D fingerprint images and compare them with recorded fingerprint images. Because of the penetration of ultrasonic waves, there is little restriction on the design of mobile phones.
Fingerprint recognition under the optical screen: when the finger squeezes the screen, the reflected light is transmitted to the sensor under the screen, and the clear fingerprint image is compared with the recorded fingerprint image for recognition.
At present, photonics have an absolute advantage in the market. Although the ultrasonic mode may be more ideal in theory, in practice, due to the low yield, high cost and immature technology, there are fewer mobile phones adopting this scheme. The optical mode has become the mainstream of the market because of its mature technology, guaranteed supply chain and low cost, and there is a trend to extend this scheme from high-end machines to low-end machines. With the increase of market scale, the cost of optical mode is reduced again.
The optical fingerprint scheme in 20 19 years accounts for about 82% of the overall off-screen fingerprint market.
In the 20 19 optical fingerprint identification market, Ding Hui gained 75% market share by virtue of its technical advantages.
With the gradual popularization of new folding screen mobile phones by 5G mobile phones, Ding Hui has a leading edge in ultra-thin optical fingerprints and side fingerprints.
5G mobile phones have more components and higher space design requirements. Ultra-thin optical fingerprints are suitable for 5G mobile phones. Ordinary optical fingerprint is 2-3 mm thick, and ultra-thin optical fingerprint is about 0.3mm..
LCD full screen+fingerprint identification on the back is applied to low-end mobile phones.
LCD full screen+side fingerprint recognition is widely used in mid-range mobile phones.
Organic light-emitting diode full screen (thinner)+off-screen optical fingerprint applied to high-end flagship smartphones.
AMOLED full screen+side fingerprint identification will be applied to folding mobile phones which are considered as the mainstream form in the future.
Participants of capacitive fingerprint identification chip include: Orsentek, FPC, Ding Hui Science and Technology, etc.
The main participants of optical fingerprint chip include Synaptics, Ding Hui technology, Wesley and Aegis.
abstract
Facing the wave of technological change is both a challenge and an opportunity. Ding Hui chooses the route with mature industrial chain and high cost performance, while European and American companies choose the frontier route with immature industrial chain. At present, Ding Hui has an advantage.
Ding Hui has become a mainstay in the field of fingerprint identification in the world. Will it face growth pressure when the market is saturated? Or keep growing with the development of new technologies and the decrease of competitors?
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