Editing by Greg Gao

Chinese listed electronic components distributor Wuhan P&S Information Technology(力源信息) announced in late January that its self-developed MCUs had entered the mass production stage and would gradually increase the capacity.

This represents a significant upgrading of the company, commented an industry observer.

Wuhan P&S Information Technology was founded in August 2001, located in Wuhan, central China's Hubei Province. It was listed in early 2011 on the Growth Enterprise Market of Shenzhen Stock Exchange as the first listed Chinese electronic components distributor.

Over recent years, P&S has spent great efforts in optimizing its business structure.

On February 13, announced that its revenue in 2021 maintained a stable increase compared with 2020, while the net profit has increased significantly compared with 2020.

P&S's revenue from its indirect customer Huawei dropped from about RMB6 billion($946 million) in 2019 to about RMB2.6 billion($410 million) in 2020, and then to about RMB140 million($22 million) in 2021 since the Chinese tech giant was hit hard by the U.S. sanctions. P&S managed to mitigate the impact by increasing business with other Chinese mobile phone brands such as OPPO, Vivo, and Xiaomi.

Meanwhile, the company increased investment in new energy, automobiles, ubiquitous electric Internet of Things, 5G, and smart meters – high-margin areas with more profitability.

In a recent conference call with investors, P&S also reported its short supply of products of SiC, IGBT, MOSFET, automotive chips, image sensors was because of insufficient capacity and strong demands, which are closely related to China's overall industrial upgrading.

With the development of intelligence and IoT, various products in the electronics industry will use more types and numbers of chips than before. The IC products will develop rapidly towards miniaturization, multi-functional integration, and higher performance, the company said.

The current semiconductor shortage will ease in some areas, but the booming new energy, automotive, smart meters will create continued shortages in 2022. P&S said it will continue to optimize the business structure, providing more high-quality product lines.