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Wen Junhong

Over the past year, the lack of core has been a painful pain for the whole new energy vehicle industry. From the management chip in the battery to the IGBT of the motor power system, the vulnerability of the supply side makes people realize how important it is to control the car core independently.

In this context, at the end of January this year, BYD semiconductor, the third IPO project of BYD, successfully held the meeting on the science and innovation board. BYD semiconductor, known as “the first share of the car core”, temporarily satisfied the market appetite.

Can it shoulder the heavy responsibility of saving the market from water and fire? As a complete vehicle factory of terminal automobile, what does BYD mean by extending its tentacles to automobile chips?

Origin of “the first core stock”

The development process of BYD semiconductor company is a struggle history of “assisting” its own automobile business.

In 2002, BYD set up a chip design department, focusing on the research and development of battery protection IC; In 2004, it officially entered the field of microelectronics and Optoelectronics in the IT industry; In 2005, microelectronics project department and Optoelectronics project department were established; In 2007, led project department was established; In 2010, the layout of the whole LED industry chain was completed and the lighting brand was officially established; In 2014, the company completed the integration of microelectronics and Optoelectronics departments; In 2020, the company officially changed its name to BYD Semiconductor Co., Ltd.

In this process, BYD semiconductor has gradually accumulated almost a full set of supply capacity of vehicle specification semiconductor. The main business is divided into five sections:

Power semiconductor: IDM mode manufacturing of the whole industry chain, including IGBT module and SiC module, from chip design, wafer manufacturing, module packaging and testing to system level application.

Intelligent control IC: mainly industrial grade and vehicle specification grade MCU chips. MCU chip, commonly known as single chip microcomputer, is equivalent to a small computer, which can be programmed to realize system control. At present, fabless production mode is adopted.

Intelligent sensor: CMOS image sensor, fingerprint sensor, electromagnetic sensor. Used to detect light, fingerprint and electromagnetic changes. At present, fabless production mode is adopted.

Photoelectric semiconductor: LED products and precision photoelectric devices. This part mainly produces lamps and LED panels.

Manufacturing and services: provide customers with wafer manufacturing, packaging and testing of power devices and integrated circuits and LED lighting management services. Since the company has its own wafer product line, this business can basically be regarded as OEM production.

In the semiconductor industry, there are three production modes. These three correspond to the company’s position in the industrial chain and technology mastery ability.

Foundry: only responsible for one link of manufacturing, packaging or testing; Not responsible for chip design; It can provide services for multiple design companies at the same time, but it is subject to the competitive relationship between companies. For example, TSMC, SMIC, etc.

Fabless (chip design only): only responsible for the circuit design and sales of chips; Outsourcing production, testing, packaging and other links. For example, Huawei Hisilicon, MediaTek, etc.

IDM (all inclusive): it integrates multiple industrial chain links such as chip design, chip manufacturing, chip packaging and testing; The mode adopted by most IC enterprises in the early stage; At present, only a few enterprises can maintain. For example, the power semiconductor business of Samsung, Texas Instruments and BYD semiconductor.

In the power semiconductor business, BYD semiconductor has opened up the chip design to the ground. We can make use of the advantages of IDM mode to realize the expectation of making better and better.

BYD car gauge semiconductor IDM production is mainly divided into SiC (silicon carbide) material, IGBT material (insulated gate bipolar transistor), etc. In the field of IGBT, BYD semiconductor ranks second in the world among new energy passenger vehicle motor driver manufacturers in 2019 and 2020 for two consecutive years, ranking first among domestic manufacturers, second only to the global leader Infineon.

The so-called “car core first stock” in China is roughly the same in its rise and growth process.

The “true face” of high growth

During the reporting period, that is, as of the first half of 2021, BYD semiconductor’s operating revenue has approached the overall level of previous years.

From 2018 to the first half of 2021, the above five main business revenues of the company accounted for more than 97% of the operating revenue. Other business income is mainly from entrusted R & D services and disposal of raw materials and wastes, accounting for a small proportion of income. The comprehensive gross profit is 26%, 30%, 28% and 33% respectively.

In 2020, the new energy vehicle market will pick up significantly and the intelligent configuration of vehicles will be improved. BYD semiconductor’s third-generation semiconductor products have entered the commercial period. Transmitted to the business, the main business income increased by 32.49%.

In the first half of 2021, thanks to the continuous recovery of the new energy vehicle industry, coupled with the global chip shortage and the increased demand for domestic chips. Vehicle specification chips are shipped in batches through verification, the volume and price of industrial chips rise at the same time, and the business grows rapidly, driving the growth of revenue.

BYD semiconductor’s revenue growth in the reporting period was booming, reflecting the improvement of automobile sales in Biya.

In 2021, BYD’s cumulative sales of EV and DM models reached 320810 and 272935 respectively, and 730093 vehicles were sold in the whole year. Among them, the cumulative sales of BYD EV and DM models reached 320810 and 272935 respectively. Hybrid vehicle and new energy, corresponding to the DM module of BYD semiconductor, are put into operation.

On the SiC module, Han EV equipped with SiC module won the record of 87000 + single vehicle. You know, the total sales volume of the three new forces of “Wei Xiaoli” in the whole year is also more than 90000, less than 100000. BYD semiconductor, as the “Royal” core supplier of BYD cars, ate a big bite of meat with big brother.

Of course, BYD semiconductor’s business scope is more than vehicle specification semiconductor. In addition to car gauge semiconductor, BYD semiconductor has achieved mass production in the fields of industry, household appliances, new energy and consumer electronics. However, with a wide range of fields involved, it is still not difficult to see the “true face” of growth through the grass snake gray line:

The soaring sales of automobile chips,