Silan Micro: Investing in Anlu Technology to enter the high-end chip field

Silan Micro intends to jointly invest in Anlu Technology with its controlling subsidiary, Shilan Venture Capital. The two parties will each invest 10 million yuan to subscribe for the newly registered capital of Anlu Technology, and each will receive a 6% stake in Anlu Technology.

Founded in 2011, Anlu Technology focuses on highly integrated, cost-effective programmable logic device (FPGA) products and programmable logic device IP cores. The company's core technical team members are experienced, most of the world's leading FPGA or EDA company engaged in more than 10 years of advanced technology research and development and management. Anlu Technology has mass-produced FPGA products with independent intellectual property rights of AL3 series. In 2014, its operating income was 3.52 million yuan and its net profit was -6.7 million yuan.

It is understood that FPGA is a high-end chip with a wide range of applications, and the market prospect is broad in the future. Programmable logic device FPGA is an important type of integrated circuit chip widely used in communications, information security, industry, automotive, Internet of Things, consumer electronics and other fields. In 2014, the global market size was about 5 billion US dollars. The FPGA chip market is highly monopolized, and the global market share of Xilinx and Altera in the United States is about 90%.

The market size of mainland FPGAs is about 1.6 billion US dollars, almost all rely on imports, and the demand for localization is urgent. FPGA is expected to become the core processor chip of IoT devices, and there is huge room for growth in the future. Invested in Anlu Technology, quickly cut into the high-end chip market. Silan Micro is the largest integrated circuit IDM manufacturer in China and is a domestic leader in power devices, analog circuits and sensors.

The company invested in Anlu Technology and quickly cut into the advanced logic chip field, which will help enrich the company's product line structure and enhance the company's industry leading position. Anlu Technology has mass-produced AL3 series FPGA products. Although it lost 6.7 million yuan last year, its revenue has reached 3.52 million yuan, which is expected to achieve rapid profitability. The company has less investment risk.

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