As a domestic FPGA giant, Fudan Microelectronics (688385) saw a year-on-year decline in profit last year.

At Fudan Microelectronics' 2024 annual results briefing on April 18, the company's executives told the reporter of Securities Times E Company that the so-called "reciprocal tariffs" imposed by the United States have little impact on the company's business; In addition, the company will continue to expand the lineage of field-programmable gate array products to meet the market demand for next-generation FPGA products for artificial intelligence and digital communications.

Last year, Fudan Microelectronics achieved operating income of about 3.59 billion yuan, a slight increase year-on-year, and net profit attributable to shareholders of listed companies of about 573 million yuan, a decrease of 20.42% over the same period of last year. During the reporting period, the comprehensive gross profit margin of the company's products decreased by 5.26 percentage points from the previous year due to the impact of the price of some product lines, and the company's asset impairment loss increased compared with the previous year due to the decline in the net realizable value of some products in the inventory affected by market changes.

In response to investors' questions, the company's executives said that the sales volume of the company's main product lines have increased in 2024, such as the security and identification product line, and as the first domestic security chip supplier to obtain WPC certification, the sales volume of Fudan Microelectronics wireless charging security module is gradually rising, and it has been highly recognized by customers in the field of one-touch payment/connection; The sales and sales volume of smart meter MCUs also increased significantly in the reporting period, and there were certain shipments in the field of vehicle specifications.

"In terms of price, companies will face competition and challenges, but as a company, we are not afraid of challenges. We will focus on the research and development of new products and launch competitive products; At the same time, we will expand sales in new areas to strive to maintain a good gross profit margin. Company executives said.

According to reports, data from the China Semiconductor Industry Association shows that the industry-wide sales of China's chip design industry are expected to reach 646.04 billion yuan in 2024, a year-on-year increase of 11.9%. Although the growth rate is higher than that in 2023, it is lower than the global semiconductor sales growth rate for the first time. Affected by the recovery of terminal demand and the industry, the performance of semiconductor design companies in 2024 will pick up as a whole.

Regarding the impact of the so-called "reciprocal tariffs" imposed by the United States recently, Fudan Microelectronics executives said that the prices of the company's products have been generally stable recently. At present, the company's business is mainly in the domestic market, and the so-called "reciprocal tariffs" in the United States have little impact on the company's business.

At present, Fudan Microelectronics is an enterprise with a wide range of product lines among domestic chip design enterprises, with four product lines: security and identification, non-volatile memory, smart meter chips, and field programmable gate array (FPGA), and provides chip testing services through its holding subsidiary, Hualing Co., Ltd. Among them, the revenue of FPGA and some non-volatile memory-related products used in high-reliability scenarios remained stable, while the FPGA series products were further expanded in non-high-reliability application scenarios.

A few days ago, Intel announced the sale of about 51% of the shares of FPGA subsidiary Altera, with the latest valuation of $8.75 billion, compared with the purchase price of about $16.7 billion in 2015.

"Intel's acquisition of the FPGA business that year and the current divestiture of the FPGA business are believed to be based on its own strategy." Fudan Microelectronics executives said that with the increasing demand for artificial intelligence applications, FPGAs can give full play to their technical characteristics such as parallel computing, flexibility, and programmability to gain new application space. The company will continue to enrich the lineage of field programmable gate array product series to meet the market demand for a new generation of FPGA products for artificial intelligence and digital communication, and further improve the company's market position and comprehensive competitiveness.

According to reports, Fudan Micro's 28nm process products are already the main products of the company's FPGA product line, and the company's new generation of process FPGA products are also gradually genealogy and are in the process of being introduced. Compared with foreign leading enterprises, the company still has a certain gap in terms of process, software ease of use, market share, etc., and needs to continue to work hard.