EDA Co., Ltd. Electronics: Products have supported 3nm, 50% + income depends on foreign countries

A few days ago, BGI, the largest EDA company in China, submitted an IPO application for nine days. From the prospectus, domestic EDA is really not easy. First of all, the market is basically monopolized by foreign countries, and 90% of the market share is taken away by foreign manufacturers. , Domestic production only accounts for about 10%.

The second is that the number of employees is too small. The domestic EDA company employs only 2,000 people, while the foreign giant Synopsys has 13,000 employees. Talent is fundamental, which shows how large the talent gap is.

Third, profits depend on government subsidies. In the last three years, BGI’s government subsidies accounted for 90.46%, 95.00%, and 67.99% of profits. If government subsidies were granted last year, profits were very low.

Nine days after BGI, another domestic EDA company filed an IPO application. Judging from the company's revenue, it should be the second-largest EDA company in China, and it is Glorious Electronics.

In the past three years, its revenue was 51,948,600 yuan, 65,486,600 yuan, and 137,483,200 yuan, while profits were negative in 2018 and 2019, but profits in 2020 were 27,891,700 yuan, an increase Still very good.

More importantly, according to the prospectus, the company has mastered the core technology of EDA that is competitive in the international market and can support 7nm/5nm in the key links of the manufacturing and design of the two major integrated circuits, device modeling, and electrical stimulation. /3nm and other advanced process nodes and various semiconductor process routes such as FinFET and FD-SOI.

This may really make everyone very happy. After all, everyone has always thought that domestic EDA tools can't support advanced technology, but only mature technology, but Gelun Electronics has broken everyone's cognition.

In addition, from the customer's point of view, Palun Electronics is spread all over the world, such as TSMC, Samsung Electronics, UMC, GF, SMIC, and other top ten global wafer foundries, all use Palun Electronics' EDA. Memory manufacturers such as Micron and SK Hynix are also its customers.

It is also because of customers all over the world, so from the perspective of revenue ratio, in the three years from 2018 to 2020, the company's foreign sales accounted for a very high proportion, reaching 80.79%, 71.55%, and 53.25 respectively. %, which means that although the proportion of domestic revenue is increasing rapidly, the proportion of domestic revenue is less than half.

The number of employees of BGI Jiutian is 447, and the number of employees of Galen Electronics is 167. It can be seen that the revenue contributed by a single person is still relatively high, close to 1 million.

For this EDA company, I don’t know what you think? Although the revenue is not as good as that of Huada for nine days, in general, the quality of customers is greater than that of Huada for nine days, all over the world, and the world’s well-known giants are basically its customers. Huada Jiutian's customers are mainly concentrated in domestic first- and second-tier foundries and flat panel display manufacturers.