SMEI: The path of independent innovation under the ESG management concept

Recently, Sai Microelectronics (300456) released the 2023 Environmental, Social and Governance (ESG) report. The report emphasizes that the company deeply integrates ESG practices into all aspects of business operations, always takes independent innovation as the strategic direction of development, and promotes the realization of sustainable development goals with the power of science and technology.

Deep cultivation of MEMS technology

Sai Microelectronics (300456) is a high-end integrated circuit chip wafer manufacturer with international operations, and a professional chip wafer manufacturer with independent intellectual property rights and core semiconductor manufacturing technology in China. The company's main business is MEMS (micro-electromechanical system) chip process development and wafer manufacturing, downstream applications include communications, biomedical, industrial science, consumer electronics and so on.

In the context of the era of the Internet of everything and artificial intelligence, SI Microelectronics (300456) uses MEMS innovative technology to realize the chip manufacturing of various sensing and execution devices such as sound, heat, light, electricity, magnetic, motion, etc., to realize the miniaturization of basic devices, low cost, low power consumption, and promote the combination of science and technology and green with practical actions.

Adhering to the concept of ESG management, the company adheres to the strategy of independent innovation, and the domestic and foreign R & D team closely conducts systematic research on the core technology of MEMS business, independently develops and grasps a series of process core technologies, and realizes a virtuous cycle with the development of business.

According to the 2023 annual report released by Sai Microelectronics (300456) at the end of March, the company achieved operating income of 1.3 billion yuan in 2023, an increase of 65.39%; The net profit attributable to the owner of the parent company was 104 million yuan, with a net loss of 73.3611 million yuan in the same period of the previous year, turning a loss into a profit, a significant increase of 241.24% over the previous year.

For the reasons for the growth in performance, the company's management believes that the company focuses on the development of the main business MEMS, in the complex international political and economic environment, the revenue of the MEMS production line in Sweden has reached a new high, and the MEMS production line in Beijing has entered the capacity climbing stage from the early stage of operation, and the overall revenue growth of the MEMS business has maintained a high gross margin level (35.99%).

According to the company's financial report, in 2023, the company's total investment in research and development expenses was about 357 million yuan, which continued to increase by 3.12% under the high base of the previous year, accounting for 27.44% of the operating income. By the end of 2023, the company has registered 14 IC trademarks, owns/enjoys 27 IC international/domestic software Copyrights, 130 IC international/domestic patents, and is applying for 113 IC international/domestic patents.

Create value for customers and the industry

Sai Microelectronics (300456) mentioned in the ESG report that the company's series of BAW filters manufactured by MEMS process for customers achieved commercial scale mass production in July last year, and this breakthrough will greatly promote the technological progress and market expansion of local manufacturers, and promote the healthy development of the entire industry. In December 2023, with the independent intellectual property process development and wafer manufacturing technology of BAW filter, Sai Microelectronics won the "Annual Market Breakthrough Award" of 2024IC Fengyun List.

The filter can help the communication equipment to improve the signal receiving sensitivity and increase the communication distance. Strong filtering ability for interference signals, low energy consumption of equipment, greatly optimizing the use of mobile communication equipment experience. As the core barrier of high-end modules, BAW filter technology and patent barriers are extremely high, and independent cutting-edge technology has a scarcity, before which, the market share of domestic manufacturers is extremely low.

In recent years, the rapid development of intelligence, electrification and networking has promoted the continuous expansion of the automotive sensor market, and advanced sensors based on semiconductor manufacturing processes are expanding their application. In order to meet customers' procurement needs for laser radar microscopes, the company has formed MEMS process development and wafer manufacturing capabilities for this field in 2023. In September 2023, the MEMS microgalvanometer manufactured by the company for customers with the MEMS process entered the commercial scale mass production stage.

In order to continuously improve the innovation ability, Sai Microelectronics (300456) emphasizes the introduction and training of talents, which is the key to ensure the company's high-quality innovation and development. To this end, the company has implemented a series of talent introduction strategies, and in 2023, the company will introduce 2 overseas high-end technical talents and provide all-round support and services for talents.