Zhihuixinlian obtains more than 50 million yuan in Pre-A round of financing for mass production of UHF RFID chips

Recently, the UHF RFID chip research and development company Huixinlian Microelectronics announced the completion of a Pre-A round of financing of over 50 million yuan, led by Guoxing Venture Capital Fund, Qingyuan Investment, Huaben Venture Capital, and Guanda Holdings followed cast. This round of financing will be used for the mass production of UHF RFID chips.

Zhihuixinlian (Xiamen) Microelectronics Co., Ltd. is an integrated circuit chip design company, headquartered in Xiamen Island, with a research and development center in Shanghai. The main founding team of the team comes from a well-known American semiconductor company, and at the same time has many years of experience in developing chips in China. He has extremely rich experience in chip research and development, team building, market development, product promotion, and sales.

The company is committed to the development and sales of high-performance and low-power smart IoT chips and provides customers with turn-key solutions. Through innovation and resource integration, Zhihuixinlian is rapidly growing into a professional company that is deeply involved in the Internet of Things, intelligent manufacturing, and other fields.

Zhihuixinlian CEO Li Zhenbiao said in an exclusive interview with Huaqiu Chuangfu that the high-sensitivity UHF RFID chip ("UHF RFID") has the advantages of long reading distance, adapting to the high-speed movement of objects, and good performance. Market research hotspots, the race track where the product is located in an industry with high certainty that is scarce in the market and continues to accelerate growth.

In 2018, the UHF RFID tag market shipments of the Internet of Things were about 17 billion pieces (IDTechEX data), about 20 billion in 2019, and it is expected to exceed 30 billion in 2020, with an annual growth of 30-50%, and it has been widely used Manufacturing, logistics, retail, and other fields.

With the rapid development of the domestic Internet of Things, UHF RFID chips required by domestic electronic label companies are still completely dependent on imports. Due to foreign monopolies, chip prices have remained high, costing more than 50% of label prices and taking 90% of label profits.

my country’s label manufacturers have invested hugely, but because the chip part is pinched, the input is not proportional to the output, and they are passive. It is equivalent to that domestic label processing companies are working for foreign chip companies. There is a strong demand for localization.

In short, the reason for choosing UHF RFID chips as the direction of entrepreneurship is not only because of the huge domestic business prospects, but also because of the commitment to the industrialization of China’s local chips, breaking foreign monopolies, and realizing national independent innovation. , To fill the gaps in the country.

Electronic enthusiast comments:

According to the working frequency, RFID can be divided into four categories: low frequency, high frequency, UHF, and microwave. In the past, high-frequency RFID was the dominant one. In recent years, UHF has become the mainstream of the RFID industry year by year due to the performance of long-distance high-speed reading and writing.

In 2019, the global sales of UHF RFID tags were about 15 billion, accounting for the majority of the overall RFID tags. China is the main producer of UHF RFID tags, and its production capacity accounts for approximately 80% of the global share.

However, in terms of application, the scale of domestic UHF RFID tags is still smaller than that of European and American countries. Few governments realize that RFID technology can bring positive effects to many industries, accelerate the formulation of policies and promote the development of the RFID industry.

It can be seen that there will be a good market increase for UHF RFID tags in the future, which will undoubtedly bring opportunities to upstream UHF RFID chips. In addition, UHF RFID chips are currently monopolized by foreign manufacturers, including NXP, Philips, Siemens, ST, etc., there is a lot of room for substitution and development of UHF RFID chips in the domestic market.

Zhihuixinlian is an early entry player in this field in China. At present, it has a certain accumulation of talents, technology, and experience, and has launched several products. This financing will help the company's mass production of UHF RFID chips. Gradually promote the autonomous controllability of UHF RFID chips.