Editing by Greg Gao/WM Zhang

Analog is a crucial but challenging area in IC technology and dominated by international players. Over the last ten years or so, many Chinese startup companies have tried to break into this. More reports have come that many such analog companies are ready to start IPO, indicating their technological progress and maturing of China's semiconductor industry ecosystem.

They include 3PEAK(思瑞浦) in the analog signal chain and power management; Chipown Micro-electronics(芯朋微) in high-performance power management and driver; IC Bright Power Semiconductor(晶丰明源) in LED lighting driver IC & smart lighting; Shanghai Awinic Technology(艾为电子) in analog and mixed-signal IC; Xysemi(苏州赛芯), in power management; Halo Microelectronics(希荻微) in analog and mixed-signal IC.

Shen Qi, a senior executive of Jiangsu Runic Technology Co., another analog and mixed-signal IC player, commented that the IPO boom shows the dynamics of the analog companies and their popularity with investors in the country now. It also points to a maturing ecosystem in China's semiconductor industry.

As geopolitical tensions between the United States and China continue in the semiconductor industry, there are growing concerns about chip supply chain security and the need for domestic substitutes. More funding through IPO is another way for local companies to grow, contributing to self-dependence.

On the part of investors, they are enthusiastic about semiconductors but would like to reduce risk by diversifying to more types of IC businesses. Analog becomes a new option. Jiangsu Runic Technology(江苏润石科技), Beijing Zhongke Galaxy Core Technology Co.(中科银河芯), LowPower Semi (微源半导体), Chipanalog Microelectronics(川土微电子) are the companies that recently won financing to be the next round of IPOs.

Chen Yuenan, a senior analyst at JW Insights, added that they would need more financial backing from the investor community with more analog companies to grow. Together they will contribute to more healthy industry development.

Shen also warned these newly financed companies of more technical barriers in the analog market long dominated by U.S. companies with their complete product portfolios through years of development and expertise. He advised local companies to start more with more general-purpose analog IC first while exploring opportunities in special-purpose analog IC or application-specific standard product (ASSP).

His company Jiangsu Runic has successfully moved to higher-end analog products by following such a roadmap, he said.

Reflecting on his company's success, Zhao Weijun, CEO of OrionChip (猎芯半导体科技), emphasized understanding the specific needs of customers and markets. "Domestic IC design companies must follow customers' needs very closely. Only with the best product quality and price can we gain the advantages in the competition," he said.

Another roadblock for Chinese analog design houses involves the chip manufacturing process technology, of which they lack the knowledge and know-how. Most international analogy players produce their products through their in-house fabs with their specific process technologies. It is challenging for local design houses to achieve the same product parameters as the international companies through mainly standard process technology. "Analog companies should seek close collaboration with foundries and get engaged with them at an earlier stage. So the foundries will prioritize and work closely with strategic clients when the supply chain tightens up," Zhao said.

Chen Yuenan, the JW Insights senior analyst, called on Chinese analog IC companies to increase R&D and try to offer a broader product line as complete as possible. They should get rid of the current practice of entirely relying on one or two products and improve product performance. He also advised seeking in-depth cooperation with the larger system vendor and defining chip products more precisely to ensure more steady output.

According to U.S.-based research firm IC Insights forecasts, the global analog chip market will exceed $80 billion by 2023. There is more demand for power management ICs, special-purpose analog chips, and signal converters from industry sectors such as communications, industrial automation, and automotive electronics. Chen believes that the Chinese market will be huge enough to need more than just an international giant like Texas Instruments. Domestic analog and mixed-signal companies will have new opportunities from the boom and niche markets in consumer electronics, industrial control, and automotive electronics.

But more analog talents are needed. Chen said there should be more interactive mechanisms among the industry, universities, and research institutions to train the analog engineers from their school days.