Security chip market will continue to grow

Recently, it was reported that the chip industry stimulus policy will be introduced in the near future, plans to invest 10 trillion yuan in 10 years, which indicates that the entire industry has entered the fast lane of growth. The introduction of localization policies is the best time for the relevant companies to lay out. So, what is the development status of the security chip industry?

The “China Core” R&D team has gradually grown. Over the years, the backwardness of chip technology has been restricting the development of China's electronics industry. The security industry is no exception. To break through the bottleneck and get rid of the "foreign chip" constraints. After more than 30 years of hard work, the Chinese people slowly saw the dawn of the national chip industry. According to statistics, in recent years, as many as 1,188 chip companies have registered with China Manufacturing Network. The growth rate of Chinese chip companies is also alarming. Once in a day, four new chip companies were registered. It can be said that China has launched a "chip business boom." According to statistics, there are nearly 1,000 "chip design" companies that specially design chips and employ about 20 to 50 people.

During the “Eleventh Five-Year Plan” period, China’s integrated circuit production increased from 26.11 billion to 65.3 billion, with an average annual growth rate of 20.1%. Sales revenue increased from 70.21 billion yuan to 144.02 billion yuan, an average annual growth rate of 15.4%. Among them, the chip manufacturing industry grew from 23.29 billion yuan to 44.71 billion yuan, an average annual growth rate of 14%. At present, Pudong has become a concentrated area of ​​the chip industry in mainland China. The leap-forward development of the Pudong chip industry has increased the manufacturing level of China's chips and enabled domestic related industries to initially have the ability to compete with other companies in the world.

At present, more and more security companies in China have joined the R&D and application research of core chips. This is the case with Sharp Core Microelectronics. This is a high-tech company that researches and develops and sells image sensor chips. Its core technologies for R&D have been widely used in many industries. In November 2012, it successfully developed the first domestic high-end ultra-low illumination monitoring sensor chip MCCD.

Pudong has become the main force of the mainland chip industry For many years, the chip has been restricting the development of China's electronics industry, in order to break this bottleneck, how many generations of unremitting efforts, and strive to get rid of the "foreign chip" constraints. After more than 30 years of hard work, the Chinese people finally saw the dawn of the national chip industry. According to statistics, there are as many as 1,188 chip companies registered for registration. The growth rate of Chinese chip companies is also alarming. Once in a day, four new chip companies were registered. It can be said that China has launched a "chip business boom." According to statistics, there are nearly 1,000 "chip design" companies that specially design chips and employ about 20 to 50 people.

At present, China's IC industry has developed rapidly. During the “Eleventh Five-Year Plan” period, China’s integrated circuit production increased from 26.11 billion to 65.3 billion, with an average annual growth rate of 20.1%. Sales revenue increased from 70.21 billion yuan to 144.02 billion yuan, an average annual growth rate of 15.4%. Among them, the chip manufacturing industry grew from 23.29 billion yuan to 44.71 billion yuan, an average annual growth rate of 14%. Ms. Wang Qinsheng, director of IC Design Branch of China Semiconductor Industry Association, pointed out that from the perspective of the design industry, it is divided into three industrial bases in the Yangtze River Delta, the Pearl River Delta, and the Beijing-Tianjin region, and each has its own strengths. Among them, the Yangtze River Delta region is the region with the most abundant and complete production chain, and has been developing rapidly in the past two years. The Pearl River Delta region is the frontier of applications and markets, and is the region where Chinese industries are in line with international standards. The advantages of the Beijing-Tianjin region are: Many scientific research talents and strong design capabilities. At present, Pudong has become the main force of the chip industry in mainland China. The leap-forward development of Pudong's chip industry has increased the manufacturing level of Chinese chips and enabled domestic related industries to initially have the ability to compete with other companies in the world.

Dedicated security chips are becoming more and more abundant, and the auxiliary chips will be integrated into a huge market capacity to give birth to product segmentation. With the growth of the security chip market, the subdivision of security chips is also imperative. Compared with the single DSP chip that security industry just started digitizing a few years ago, the current security chip has been subdivided into different types depending on the application, mainly in the following aspects:

DVR/NVR chips, such as Hi3515 and Hi3520 from HiSilicon, are used in embedded DVR products and embedded NVR products. They mainly focus on the requirements of multi-channel codec, multi-service management, and high bit rate storage. Currently, these chips are the market. The largest type of chip, which occupies about 60% of the number of main compression chips.

IPC chips are used in network camera products. This is the result of the gradual maturation of the IPC market in the past two years. These chips focus on high-definition compression, intelligentization, and ISP processing. Currently, the market capacity of these chips is not as good as DVR/NVR chips, but it is foreseeable. Yes, some time later, such chips will occupy most of the security market share.

The auxiliary chip is mainly used for intelligentization and ISP services, mainly DSP and FPGA. In the analog camera, this type of DSP or FPGA chip for ISP is used in large quantities. Since the current market capacity of intelligent analysis products is still in the initial stage, the amount of DSP used for intelligent analysis products is less. With the increasing integration of IPC chips, the functionality of these companion chips may eventually be incorporated into IPC chips.

The security industry continues to grow. For the future development of the chip, it seems to be mainly higher pixel, frame rate, lower illumination and dynamic range, lower bandwidth occupation, higher transmission efficiency, and more intelligence. ISP algorithm and so on. As a direct user of the chip, the general principle of selection of video surveillance vendors is to compare the different chips according to the definition of the product and the working environment. At the same time, the EVM development board is purchased for the pre-research evaluation and test of the program to verify the function of the chip. And whether the performance meets the demand. Then we need to understand the maturity and stability of the chip, and estimate the overall product cost, development cost and development difficulty. Low power consumption, energy saving and environmental protection are also aspects that need to be considered. The strong technical support of chip manufacturers is an important condition. .

The development of chip standards is in full swing. If domestic manufacturers want to take a leading edge in the security market, they must form an integrated solution from the perspective of industrialization. On the one hand, they should make efforts in the technical level and development environment of hardware and software in domestic chip manufacturers. On the other hand, countries need to develop standards that have independent intellectual property rights and apply to the security industry. In terms of standards, the SVAC standard has been drafted and released in the country, namely, "Technical Requirements for Security Audio Video Surveillance Digital Audio Video Coding and Decoding". The English name is SurveillanceVideoandAudioCoding. This standard is a national standard established by the National Standardization Administration Committee and is a video surveillance system. Basic standards. The purpose of the SVAC standard is to establish advanced audio and video codec standards and security systems that meet the needs of video surveillance, and to improve the interconnection between alarm monitoring systems. Interoperability, interoperability and the safe, effective and integrated use of information.

Since the SVAC standard has fully considered the needs of security at the beginning of writing, it fully supports the Scalable Video Coding (SVC) technology. The technology encodes video signals in a layered manner, divides them in time, space, and quality, and outputs multi-layer code streams (including a base layer and an enhancement layer), wherein the data of the base layer can completely completely decode the decoder. Basic video content, but the video image obtained from the base layer data may have a low frame rate and a low resolution. Or the problem of lower quality.

The chip will look forward to supporting the formulation of policy standards to help standardize the development of the chip industry. The same policy support will also bring prosperity to the industry. Previously, there were rumors that the IC development support policy was expected to be launched. The CCS did not receive a positive reply to the verification of several industry players. However, the industry generally believes that the higher-level overall support policy must be focused on by seniors, and the market trend shows that Certain clues.

After Ziguang Group, a subsidiary of Tsinghua University, purchased a local wafer design company Spreadtrum (Nasdaq:SPRD) for US$1.78 billion, it also offered US$18.5 per share for the purpose of acquiring another mobile phone wafer manufacturer RDA (Nasdaq:RDA). A person close to the chip sales channel said that the continuous acquisition of Ziguang hopes to integrate R&D and production forces in the chip field.

Previously, the chip industry related policies have been mentioned several times. In November 2012, Shanghai had launched a support policy for the chip industry that continued into 2017. The main focus was to issue corresponding bonuses based on chip sales. No direct financial subsidies were mentioned. As early as 2011, Yang Xueshan, the then vice minister of the Ministry of Industry and Information Technology, publicly stated that he will establish a national strategy for the chip industry, explore the upstream and downstream virtual integration model of the integrated circuit industry chain, and strengthen upstream and downstream cooperation and collaboration in the industry chain.