As demand for consumer electronics remains sluggish, microcontroller unit (MCU) manufacturers have branched out to applications in the industrial control and automotive sectors, with the increasing trend for smart manufacturing driving the former, and the latter benefitting from growth in the electric vehicle (EV) market, as well as low adoption rates for domestic automotive electronics for EV makers in China.
In recent years, Megawin Technology has forayed into machine tools and automotive peripherals, developing industrial control and automotive MCUs for these applications. According to Megawin, in addition to introducing applications in industrial panels and smart curtains to the Japanese market in 2022, the company further expects growth in the smart factory MCU sector. Meanwhile, after receiving AEC-Q100 certification in June 2023, the company's automotive MCUs have now entered trial production, with mass production expected in the fourth quarter of 2023. Megawin has its eyes set on the automotive market in China, and is also courting clients in Japan.
In addition to their MCU products, battery management system (BMS) chips, including analog front-end (AFE) and analog-to-digital converter (ADC) chips, have garnered much attention in the market, with Nuvoton, Hycon Technology, Megawin, and other Taiwanese MCU makers expanding production to meet growing demand.
In anticipation of future growth in the BMS and renewable energy markets, Megawin has recruited dedicated R&D personnel to develop 20- and 24-bit ADCs. The company's 20-bit ADC has already received certification, and work on AFE SoC is currently in progress.
With environmental, social, and governance (ESG) initiatives in the spotlight, energy efficiency is increasingly becoming a focus in market applications. Although definitions for ultra-low-power MCUs have not yet been standardized across the industry, Megawin has already begun collaboration with foundries to develop ultra-low-power technology.
Regarding the market situation, Megawin admits to some pressure during the first half of 2023 due to weak terminal demand and downturn in the semiconductor cycle. Things are expected to return to normal in the fourth quarter, however, as inventory is cleared month by month.
In terms of applications, increased sales in sectors such as industrial control panels, keyboards, wireless charging, smart homes, and motors have contributed to a revenue of NT$35.48 (US$1.11 million) million in August 2023, marking a month-on-month increase of 27.94%, and a year-on-year increase of 3.75%. These are signs that the MCU market is undergoing a gradual recovery.
Looking ahead, Megawin has introduced new energy-saving power management ICs (PMIC) and brushless DC motors (BLDC), and is running small-scale operations for high-speed wind turbines, low-voltage ceiling fans, axial fans, low-voltage fans, and other relevant solutions. In the PC peripheral market and USB keyboard market, increased demand in the company's USB product line has driven revenue growth. Armed with these new products, Megawin expects significant revenue for the fourth quarter, and stronger momentum for revitalization.
Article translated by Kevin Wang
