The Global Leader in RFIC Technology

Rafael Microelectronics. 4th Quarter, 2020 Investor Conference

Rafael Microelectronics held an investor seminar on November 19 to update the performance of this year and future market prospects.

Rafael Microelectronics CEO Ted Sun said that the cumulative consolidated revenue in the first half of the year was NTD395 million, and the EPS was NTD1.98. From July in the second half of the year, the momentum of shipments has become significantly stronger. First 3 quarters accumu;lated revenue is NTD 744million, with net profit NTD112.3 million, EPS NTD4.50. In addition to the existing TV business, set-top box, satellite receiver business return to normal, adding dual-mode wireless, high-speed optical communication transmission and other new products. Due to the rapid demand for SoC chips with RF (radio frequency) functions in the market, the customized chip design service business launched this year, including RF IP license and ASIC design service  business. Rafael Micro has received customer orders from major international manufacturers. This IP Authorization and ASIC commissioned design business will play an important role in the company’s long-term growth in 2021 and beyond.

Ted said that the macro and micro business has returned to normal level before the epidemic, and the turnover has reached a record high in the third quarter of this year. It is expected that similar momentum can be maintained in the fourth quarter. Rafael Micro will continue to explore overseas markets in non-Chinese regions. It is expected that there is still considerable room for growth in revenue from the global set-top box and 8K TV market. At the same time, in 2021, the high-speed optical communication and wireless Internet of Things (IOT) market around 5G infrastructure will become a new source of revenue. Rafawel Micro has established strong core competitiveness in RF radio frequency and high-speed optical communication chip design technology, and is cautiously optimistic about its business in 2021.

In the TV receiver market, global TV shipments were 62.05 million units in the third quarter. Rafael Micro shipment volume was 28.32 million, accounting for 46% of the global market share, an increase of 12% over 2019. The new “Multi-Tuner” product that meets the Japanese 4K/8K TV standard has entered mass production design in a South Korean factory and is expected to be launched in the second half of 2021.

In the STB market, “Dual-Tuner”, the only solution leading the world, has been adopted in emerging markets, contributing substantially to revenue, and the growth trend will continue in 2021. In the future, the non-Chinese market is expected to reach 25% of product line revenue, which will help diversify the risk of excessive market concentration. In the satellite receiver market, LNB shipments were affected by the epidemic in the first half of this year, while the market conditions in the second half of the year have gradually stabilized. We are optimistic about the growth momentum in the first half of 2021. The share of LNB in ​​overseas high-end markets continues to increase, and new LNB product solutions have been sent to European customers for verification.

In terms of customized chips, due to the rapid growth of emerging demand for SoCs with RF (radio frequency) functions in the market, customized chip design services have been launched this year, including RF IP and ASIC business. This ASIC business will play an important role in the company’s long-term growth in 2021 and beyond.

In the IOT communication market, Rafael Micro launches Bluetooth 5.0/Sub-GHz dual-mode low-power wireless transceiver chip to be mass-produced in the fourth quarter. Its design is highly customizable and can be matched with the microprocessor selected by customers. Flexible implementation of standard software or software agreements for special applications developed by customers. RF KGD/IC supporting the new IOT standards Wi-SUN/ ZigBee and BT5.0 will be launched in 2021, and more than a dozen customer commissioned design orders have been obtained. These new products will provide important growth momentum for Rafael Micro in 2021.

In the optical communications market, 10G PON transmission chips and HDMI/DP transmission chips have been in mass-production and shipped. With the emergence of 5G mobile communications, cloud data centers, and home office trends that drive huge demand for network bandwidth, governments, telecom companies, and data centers in various countries are stepping up efforts to promote larger bandwidth optical fiber communication networks. The latest 100G ultra-high-speed optical communication chipset has begun to send samples to major customers for verification, providing large-scale data center switches and high-speed network connections to servers.

About Rafael Microelectronics, Inc.

Rafael Microelectronics is a listed company in Taiwan. It faces the global market and continues to focus on technological innovation and R&D investment. It has become one of the largest broadband RF chip companies in Asia. Rafael Microelectronics is a high-speed transmission chip design company, with high-end broadband RF technology (Broadband RF) as its core technology, extending product applications to high-speed optical communications, data communications and wireless Internet of Things, while providing customized chip design services. . The Rafael Micro has a complete product range, providing customers with different solutions for high performance and cost advantages; the performance, quality and engineering services of each product line have been highly recognized by customers.

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