Yachting Electronics: Automotive chip supply and demand expected to return to balance in the fourth quarter of this year

Yachuang Electronics said that at present, each car has 30-40 motors as standard, some comfort high-end car usage can reach more than 100, for example, the seat all-directional adjustment requires a lot of motors. Dongfeng and Arturo have a large number of motors for each seat, which can be adjusted electrically. The company now supplies and sends samples of the motor products have covered most of the standard motor needs, some of the special applications in the research and development process.

Yachting Electronics pointed out that the company's chip is analog IC, individual customer volume will not be particularly large, the company's product customer penetration rate is relatively high, the domestic brand customers cooperate more, such as BYD, Geely, Great Wall, SAIC, Wei Xiaoli, etc..

Regarding automotive chips, Yachting Electronics said it expects supply and demand to return to balance in the fourth quarter of this year, and the company is actively talking to suppliers about production capacity to ensure timely delivery of orders and meet customer demand.

Automotive industry product prices are relatively stable, will not be arbitrary price increases and price reductions, unless the supply side of raw materials price increases, the company will be conducted to the client. At present, the gross profit margin of overseas companies in analog chips is usually maintained between 60-70%, while the gross profit margin of domestic manufacturers is around 50%, and the overall profit is more stable.

Yachting's IC business is still in the growth stage, and the current priority is to accelerate the expansion of market share, and the gross margin can be maintained at around 45%. Through the distribution business, the company can understand the cutting-edge needs and future development direction of the market end, and capture the opportunity of new trends in advance, forward-looking and proactive to demand, which is conducive to speeding up the company's product layout and subsequent import promotion progress.

Currently in the market, Tower and Eastern Electronics are still tight in automotive-grade production capacity, and Eastern has an advantage in the high-voltage BCD process. In early 2021, when production capacity was at its tightest, we started to enter Eastern Electronics and gained some capacity. Overall, the company has a close working relationship with the two major foundries, through which we can see the company's growth and a high degree of cooperation.

Yachting Electronics pointed out that the automotive grade and non-vehicle grade production line can not be common, automotive grade products are of higher quality, not only for the product itself requires automotive grade certification, the production line also has automotive grade certification requirements. Therefore, the consumer electronics wafer capacity becomes abundant will not directly impact the automotive chip supply and demand pattern.