VeriSilicon(688521)2024-10-14 08:34Business Overview - VeriSilicon is a company that provides platform-based, comprehensive, and one-stop chip customization services and semiconductor IP licensing services [2] - The company owns six types of processor IPs, including GPU IP, NPU IP, VPU IP, DSP IP, ISP IP, and Display Processor IP, as well as over 1,600 mixed-signal and RF IPs [3] - VeriSilicon has a rich portfolio of AI-focused hardware and software chip customization platform solutions, covering devices such as smartwatches, AR/VR glasses, AI PCs, AI phones, smart cars, robots, and data centers/servers [3] - The company is advancing its Chiplet technology and projects, guided by the principles of "IP as a Chiplet," "Chiplet as a Platform," and "Platform as an Ecosystem" [3] - VeriSilicon's business model, Silicon Platform as a Service (SiPaaS), serves a wide range of industries including consumer electronics, automotive electronics, computing, industrial, data processing, and IoT [3] Market Position and Achievements - In 2023, VeriSilicon ranked first in China and eighth globally in semiconductor IP licensing market share, and sixth globally in IP licensing revenue [3] - The company's IP portfolio ranks among the top two globally in terms of IP variety among the top ten IP companies [3] - VeriSilicon has successfully taped out chips at advanced process nodes, including 14nm/10nm/7nm/6nm/5nm FinFET and 28nm/22nm FD-SOI [3] Financial Performance - In Q3 2024, VeriSilicon's revenue is expected to reach 718 million yuan, a 16.96% increase quarter-over-quarter and a 23.60% increase year-over-year [4] - The company's new orders in Q3 2024 are expected to be 648 million yuan, with a backlog of 2.138 billion yuan, of which 78.26% is expected to convert into revenue within a year [4] - R&D investment in Q3 2024 accounted for 43.38% of revenue, with a focus on strategic technologies in AIGC and smart mobility [4] Key Business Areas - In the AI edge computing space, VeriSilicon has shipped over 100 million AI chips globally, with its NPU IP used in 128 AI chips across 10 market segments by 72 customers [4] - The company has provided chip customization services for AR glasses to a major international internet company and is collaborating with several leading AR/VR clients [4] - In Q3 2024, chip design revenue is expected to be 238 million yuan, an 81.26% year-over-year increase, driven by data processing and automotive electronics projects [5] - VeriSilicon has provided 5nm automotive-grade autonomous driving chip customization services to a leading new energy vehicle manufacturer, integrating multiple semiconductor IPs and meeting ISO 26262 functional safety standards [5] International Business - In H1 2024, domestic sales accounted for 64.72% of revenue (603 million yuan), while international sales accounted for 35.28% (329 million yuan) [5] - The company aims to maintain a long-term international revenue share of around 30% [5] Strategic Initiatives - VeriSilicon is open to strategic acquisitions to enhance its IP portfolio and chip customization capabilities, focusing on technologies and teams that align with its strategic direction [6] - The company plans to continue building its industry ecosystem and will make investments or acquisitions as needed, following relevant laws and regulations [6]