Market value soared 15 billion yuan, 5g giant clarified: not that chip!

 Market value soared 15 billion yuan, 5g giant clarified: not that chip!

Image source: wind

Company issues clarification statement

On June 17, ZTE said on the interactive platform that the company has the ability of chip design and development, with 7Nm chip scale mass production, which has been commercially used in the global 5g scale deployment, and 5nm chip technology is being imported.

In fact, this news is not new. ZTE has already disclosed it in its 2019 annual report released in March this year. But at that time, the stock price reaction was flat, but this time it became the fuse to detonate the capital market. In some of the self media, there are also very bizarre interpretations. Some of the big micro blog V even said that ZTE would become a chip manufacturing factory in China.

In this context, on the morning of June 20, ZTE official blog officially issued a clarification statement, pointing out that in recent years, a number of self media have misread the companys 7Nm chip scale mass production, and the information that 5nm chip began to import. In the field of chip design, ZTE focuses on the design of communication chip and does not have the chip production and manufacturing capacity. The full text of the statement is as follows:

We have noticed that in recent years, a number of self media have targeted at ZTEs mass production of 7Nm chips, the information that 5nm chips began to import has been misread, and some reports are inconsistent with the facts, which has troubled and affected the normal operation of the company.

In the field of chip design, ZTE focuses on the design of communication chip and does not have the ability of chip production and manufacturing. In the design of special communication chips, the company has more than 20 years of experience, and has the ability of whole process customized design from chip system architecture to back-end physical realization; in the production and manufacturing of chips, we rely on global partners for division of production. The design and manufacturing of chips need the cooperation of the whole industry chain. The company has been keeping close cooperation with all parties in the industry chain to build the core cornerstone of the companys competitiveness and continuously create value for customers.

In the stock bar, in response to the Clarification Announcement, some netizens said, the media blew ZTE out of trust, this is going to plummet, and some netizens said that such clarification is unnecessary.

Another netizen said, I always thought the stock speculators were smart people. Until ZTE denied that it could produce 7Nm chips, I found that so many people would think ZTE could produce 7Nm chips at the beginning..

Focus on communication chip design, but do not produce chips

Since this year, the new infrastructure policy has been issued intensively, among which 5g ranks first in the seven major projects, plays a fundamental and penetrating key role, and is regarded as the top priority of the new infrastructure. With the launch of 5g scale deployment, communication network equipment manufacturers, terminal manufacturers and operators are all speeding up the layout. ZTE, as an upstream equipment supplier, is also expected to usher in further development in the 5g era and open a new global market space.

On September 19, ZTE held a general meeting of shareholders, attended by Li Zhizi, chairman of ZTE (second from the right), Xu Ziyang, President of ZTE (third from the right), etc. (photo source: enterprise drawing)

According to the daily economic news (wechat: nbdnews), at the 2019 annual general meeting of shareholders on June 19, Xu Ziyang, President of ZTE, said, ZTE will fully participate in the implementation of the strategic initiative of new infrastructure construction. He believes that the competitiveness of enterprises in 5g is reflected in two aspects: one is technological competitiveness, the other is market competitiveness. In terms of technical competitiveness, ZTE relies on patents, chips, algorithms and architectures to build the core of its key technical competitiveness. Specifically, ZTE currently ranks the third in 5g global standard essential patents; it has accumulated about 30 years of experience in key algorithms; in terms of architecture, the company puts forward multi-mode software definition SDR architecture of wireless network, Cloud Architecture of core network, etc.

In terms of market competitiveness, ZTE is currently in the first camp of 5g devices. By the end of the first quarter of 2020, ZTE has won the bid for 5gran, 5gsa core network, 5g bearer and other centralized procurement projects of domestic scale operators. At the same time, relying on 5g end-to-end products and solutions, ZTE has 46 5g commercial contracts in the world up to now, covering China, Europe, Asia Pacific, the Middle East and other major 5g markets, and has launched 5g cooperation with more than 70 operators in the world, including three domestic operators, orange, Telefonica, windtre, etc. According to Xu Ziyang, ZTE is expected to have more than 4G shares in China in the future. We are confident in the development of 5g in China and have done enough research and development.

Xu Ziyang stressed that the company has invested a lot of resources in the core competitiveness of key chips. In other general-purpose chips, if the performance and competitiveness can meet the requirements, all general-purpose chip partners are welcome to join ZTEs supply chain, so as to eliminate the commercial sustainability risk of the entire supply chain of the company to the maximum extent.

When it comes to the complex and changeable international environment, Xu Ziyang said that as early as two years ago, the companys senior management team had formed a unified will to firmly go overseas. With the rapid development of science and technology, the space-time distance on the earth has been reduced. We belong to the global village. We need more overseas connections so that enterprises can play a greater role. Our overseas strategy is changing from relatively extensive to more focused, and will focus on value customers.

Xu Ziyang further said, in the process of overseas development, we must pay attention to product safety and transparency, so that customers can rest assured and regulators can rest assured. Since 2018, we have spent more than two years combing the product safety system and system safety system in an all-round way. With a more transparent attitude, we have made operators and regulators believe that ZTEs equipment, every line of code and every piece of hardware are safe. The complexity and uncertainty of the international situation will persist for a long time. In this case, what we have to do is to make our response faster and win customers with good products and services.

In addition, Xu Ziyang also revealed that ZTE has started to develop the next generation of 6G technology. The company has divided a pre research team from 5g R & D team to develop 6G. We expect that 6G business model will come out after 2030. In this 10 years, we will quietly start to do various accumulation.

With regard to the development goal in 2020, Xu Ziyang said that since this year, the group will officially enter the strategic development period, with the goal of achieving quality growth.

In 1996, ZTE set up the integrated circuit design department, hoping to replace the imported chips through the independently developed chips, so as to reduce the cost of chip procurement. In 2003, the Department was an independent ZTE microelectronics company, focusing on the development of communication chips such as communication networks, smart homes and industrial applications. According to the disclosure of China Semiconductor Industry Association, ZTE microelectronics revenue in 2019 is about 7.6-7.7 billion yuan.

According to ZTE, at present, in the important chip supply, the company covers the whole process in chip R & D and design capabilities, mastering such capabilities as architecture design, simulation, front-end design, back-end physical implementation, seal test design, seal test and future failure analysis of corresponding chips.

According to the China Securities News, industry insiders said that when a chip is put on the market, it needs to go through a series of processes, such as chip design, factory production, sealing and testing factory packaging and testing, and whole machine procurement for whole machine production.

In the new field of high-end chips, this process often needs to rely on the global industrial chain to complete. In the downstream of Huawei Hisilicon, ZTE microelectronics and other chip design companies, the production and manufacturing of chips are often completed by specialized foundry.

Analysts said that according to the global IC Wafer Factory technology evolution route, at this time node in 2020, only TSMC and Samsung will achieve 5nm mass production. Among them, grofangde and liandian have basically abandoned the research and development of 7Nm process, Intel is still developing 7Nm process, and the 7Nm process of SMIC will achieve mass production by the end of 2020.