Specialist
Senior Director at Spreadtrum Communications (Shanghai) Co Ltd
Agenda
- Cost ratio of filters in the RFFE modules and the cost ratio trend
- Filters’ production capacity in China and abroad, unit cost dynamics, operating costs of production lines and ramp-up timeframe
- Comparison between filter manufacturers in China and internationally in terms of price, technology and costs
- 5G’s impact on filters
Questions
1.
What impacts will the arrival of the 5G era have on the smartphone filter market?
2.
How high do you think the penetration of 5G phones can reach?
3.
Given what you said above, including the estimate that at least 20-30 filters will be needed for each 5G phone and the penetration of 5G phones will grow rapidly, how strong will the demand for filters be in the age of 5G?
4.
Phone filters are based on either SAW or BAW technology. The biggest difference between the two seems to lie in the highest frequencies at which they can function. Will SAW be phased out in the age of 5G, giving way to BAW filters?
5.
It seems that some SAW filter manufacturers are trying to extend the frequency range in which their products can function. How can this be achieved? Is it difficult?
6.
What strategies do you think SAW filter manufacturers should follow in order to survive in the 5G era?
7.
What adjustments must SAW filter manufacturers make in order to cross over into the field of BAW filters?
8.
You said earlier that about 1/3 of the filters used in a 5G phone would be SAW and the other 2/3 BAW. Is the current production capacity of BAW filters enough to support an imminent boom of the market for 5G smartphones?
9.
Can you give us a sense of the prices and profit margins of SAW and BAW filters?
10.
What are the core competencies of Japanese companies such as TDK and Murata in the field of SAW filters?
11.
Which Japanese firm do you think will take the lead in the 5G era? Will there be a change in the competitive landscape?
12.
Some Chinese companies are entering the filter industry too, especially the SAW segment. What are some of the Chinese firms that are doing well?
13.
Do Microgate, Sunway and Sunlord have different focuses in the SAW space or are they following similar paths?
14.
Is it possible for them to grab market share from foreign suppliers in the market for 3G or 4G filters? Where should they start?
15.
Do you mean that Chinese filter manufacturers can only expect to replace the foreign-made filters in low- end phones?
16.
Who are responsible for integrating filters and PAs into modules?
17.
What components are included in an RFFE module that’s sold to phone manufacturers?
18.
SAW filters co-operate with PA manufacturers and the two, after negotiation, outsource the integration of their components to third parties. Am I getting it right?
19.
How can Chinese companies, whether they provide filters or modules, compete against Japanese and western players in marketing? What marketing strategies should they adopt?
20.
How big a gap is there between the prices of filters made by Chinese companies and those by Japanese or western firms?
21.
What factors do smartphone manufacturers take into account when choosing among different suppliers? What levels of precedence do different factors have?
22.
What’s the cumulative shipment volume of the main Chinese filter manufactures so far?
23.
Is brand recognition an important factor when it comes to choosing filters?
24.
What is the average price of an RFFE module that includes components such as PAs and BAW and SAW filters?
25.
What role will FBAR filters play in 5G phones? Can they take the place of BAW and SAW filters or must they be used together?
26.
Why does ROFSmicro focus on FBAR filters if no phones are using them yet?
27.
How can the cost of FBAR filters be reduced?
28.
How often do phone manufacturers purchase filters and how much do they purchase each time on average?
29.
What is the profit margin for distributors?
30.
How much of the cost of a filter or RFFE module do R&D expenses take up?
31.
Can you break down the cost of filters for us? How much of the total do labour, raw materials and depreciation on equipment account for respectively?
32.
You mentioned earlier that the cost of BAW filters may be USD 0.15 and that of FBAR filters USD 0.2. Are they production costs?
33.
What do you think are the core competencies of Chinese filter manufacturers?
34.
Are the aforementioned USD 0.03-0.05 and USD 0.6-0.8 the production costs or prices of SAW and BAW filters?
35.
What are some of the promising directions for China’s PA manufacturers?
36.
What other phone components do you think will see a surge in demand as 5G smartphones gain momentum?
Gain access to Premium Content
Submit your details to access up to 5 Forum Transcripts or to request a complimentary one week trial.
The information, material and content contained in this transcript (“Content”) is for information purposes only and does not constitute advice of any type or a trade recommendation and should not form the basis of any investment decision.This transcript has been edited by Third Bridge for ease of reading. Third Bridge Group Limited and its affiliates (together “Third Bridge”) make no representation and accept no liability for the Contentor for any errors, omissions or inaccuracies in respect of it. The views of the specialist expressed in the Content are those of the specialist and they are not endorsed by, nor do they represent the opinion of, Third Bridge. Third Bridge reserves all copyright, intellectual and other property rights in the Content. Any modification, reformatting, copying, displaying, distributing, transmitting, publishing, licensing, creating derivative works from, transferring or selling any Content is strictly prohibited
