This year, Ziguang Zhanrui is set to make a strong impact in the mobile phone chip market. The company is focusing on independent CPU development and expanding its 4G chip collaboration with both mainland Chinese and international telecom operators. One of the most promising areas for growth is the RF front-end business, which has already become the leading segment in China. In 2018, the company plans to restructure its product lineup and workforce to better align with market demands.
Ziguang Zhanrui has officially completed the merger of Spreadtrum and RDA, along with organizational restructuring. This year, it will introduce its self-developed CPU and launch products that are expected to be used by major telecom operators. The company also aims to support 5G mobile phones and plans to go public in the second half of 2020. By 2021, it expects to ship over 100 million units.
Wu Huixiong, Senior Vice President of the Marketing Department at Ziguang Zhanrui, emphasized that the company's accumulated technical expertise has finally reached a breakthrough. This year, the self-developed CPU will be integrated into terminal products, marking a milestone as the first embedded CPU core technology in mainland China among mobile phone chip manufacturers.
Looking ahead, Ziguang Zhanrui continues to expand its presence across multiple generations of mobile technology—from 2G to 5G. In 2017, the company shipped 100 million units of its 2G chips. Its 3G LTE Modem has seen continuous performance improvements and cost optimization. According to China Mobile’s own quality report, the SC9853 outperforms MediaTek and is close to Qualcomm’s Snapdragon 835 and HiSilicon’s Kirin 970. Notably, the SC9853 costs about one-sixth of the price of flagship competitors.
In terms of international expansion, Ziguang Zhanrui has made significant progress. Its LTE Modem has been certified by Vodafone, while the SC9850 passed AT&T’s certification in Mexico. The company’s new 4G function chips have been adopted by top-tier international brands. In 2017, the SC9820 achieved over 10 million shipments, serving more than 10 million users worldwide.
The company has also strengthened its partnership with China Mobile. Last year, the A3 model sold over 3 million units, and in early 2018, the SC9832 won a bid, leading to the official launch of the A4 function phone. These devices offer high-definition voice, data-based services, and localized features tailored for specific user groups, such as elderly-friendly models with dialect recognition and storytelling functions.
Despite predictions of a potential decline in mainland smartphone shipments in 2018, Ziguang Zhanrui remains confident in its growth strategy. It anticipates a nearly 6% increase in the mid-to-low-end market, particularly in the $190 range where it has a strong presence.
Another area of rapid growth is the RF front-end business, where Ziguang Zhanrui has become the number one manufacturer in mainland China, achieving a 70% growth rate. Wu Huixiong pointed out that the demand for components like filters, power amplifiers, and switches is rising rapidly, with an annual growth rate exceeding 50%.
With the completion of the Spreadtrum and RDA merger, Ziguang Zhanrui is making strategic adjustments in product and human resource allocation. The company is investing heavily to enable cross-product line launches and meet the evolving consumer trends. Wu Huixiong noted that the company’s market influence will grow significantly this year and even more so next year.
To enhance agility and responsiveness, Ziguang Zhanrui has restructured its product-oriented organization, creating eight major product lines. Each line operates as an independent business unit, allowing for more targeted strategies and efficient market responses. This approach ensures that each team can focus deeply on their respective markets, staying ahead of competitors.
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