Recently, Sappland Microelectronics unveiled two brand-new high-performance filter products — the 1612-sized PESAW B3 and B25 Duplexers. The overall product performance has reached a high standard within the industry.
In 5G communication, radio frequency filters play a crucial role. The RF filter market has experienced significant growth in the past few years, and with the continuous development of wireless communication and 5G technology, this trend is expected to persist. Additionally, the rapid expansion of the Internet of Things (IoT) provides new market opportunities for radio frequency filters.
The Rise of Domestic Smartphones: Opportunities Still Abound for RF Filters
In recent years, driven by national industrial policies and market conditions, the development of domestically controllable and independent technologies in the radio frequency front-end sector has been accelerating. Numerous domestic RF filter companies have emerged as a result.
However, influenced by factors such as the fluctuating pandemic situation, geopolitical tensions, global economic slowdown, sluggish terminal demand, and high inventory levels, the signals for market recovery are not clear. Against the backdrop of international trade frictions, domestic manufacturers are actively seeking local suppliers to ensure the security of the supply chain.
Under this initiative, domestic RF front-end manufacturers in China have maintained relatively high revenue growth in recent years, and their product lines have become increasingly diverse. With the leading Mate 60 series adopting a significantly high proportion of domestically produced RF front-end devices, effectively addressing the bottleneck issues of 5G, the trend toward domestic substitution, including RF filters and other chips, has become inevitable.
On October 12th, Guosen Securities released a research report stating that the rise of domestic smartphone brands, combined with the trend of semiconductor localization, presents a development opportunity for domestic RF front-end manufacturers.
PESAW B3/B25 Duplexers: Performance on Par with International RF Manufacturers
Today, with the increase in mid-frequency bands in smartphones, radio frequency filters, as the largest sub-segment market in the RF front-end, continue to expand their share in the value of the RF front-end. As one of the domestic RF front-end manufacturers, Zuo Lan Microelectronics recently unveiled its latest two high-performance duplexers, PESAW B3 and B25. The product specifications surpass industry standards comprehensively, and their performance can rival international products. With a power of 31.0dBm at 5000h +50deg.C@CW, both products fully meet the high-end usage demands of downstream customers.
Navigating Twists and Turns: A Renewed Momentum in the RF Front-End Industry
Despite the downward cycle in the consumer electronics market in 2022 and a reversal in the supply chain relationships in the RF front-end, inventory turnover days, as disclosed in the mid-year reports of various RF front-end listed companies for 2023, have shown a decline compared to the first quarter.
In the medium to long term, according to IDC predictions, the global filter market is expected to reach $18.33 billion in 2024. With robust support for 5G technology development in China, coupled with its status as a major consumer of filters, the market share is expected to continuously rise, reaching $5.67 billion in 2024. Yole anticipates that the RF front-end market will reach $26.9 billion by 2028, with ongoing advancements in RF front-end technology driven by the sustained evolution of 5G specifications. The industry is actively engaging in relevant research and investment, preparing for the next wave of growth.
Moreover, according to Counterpoint’s Smartphone Inventory Tracking Report, global smartphone inventory (shipments and sales) has maintained a healthy level over the past four to five months. This has provided a breathing space for smartphone brand manufacturers, enabling them to release and promote new models in the second half of the year. This strategy aims to entice consumers to upgrade, thereby accelerating the replacement cycle.
In this regard, Chinese manufacturers are rapidly introducing innovative products featuring 5G, foldable screens, high-quality photography, and other applications. This has driven a significant increase in sales for multiple new models, making them a new highlight in the global smartphone consumer market. Undoubtedly, this development serves as a reassuring factor for domestic RF front-end enterprises.
Enhancing overall competitiveness to embrace the next opportunity.
Boosting competitiveness and striving to break free from the industry’s surplus at the low end and deficiency at the high end is a true reflection of domestic RF front-end manufacturers this year. Currently, with the evolution of communication technology, the standardization process for 5.5G has begun. Serving as a transitional phase between 5G and 6G, 5.5G is expected to last for more than five years.
According to Sappland Microelectronics, the prosperity cycle of the RF front-end industry is generally around 4-5 years. It is expected that by 2024, the market share of domestic 5G smartphone brands will further increase, leading to an increased demand for RF filters, and the entire industry will gradually rebound. Additionally, with the improvement in communication capabilities of 5.5G compared to 5G, there will be higher performance requirements for RF filters.
Therefore, before the arrival of the next economic cycle, Sappland Microelectronics will continue to increase research and development investment, enhance manufacturing capabilities, refine the layout of high-performance RF filter products, and proactively prepare for the upcoming opportunities. This is aimed at providing high-quality products and services to a broader range of domestic and international customers.