System IC producer Zinitix full of overflowing orders from Chinese companies

08, Aug. 2019

SEOUL, AJU - At a time when South Korea's semiconductor industry faces revolutionary changes forced by Japan's export restrictions, Zinitix, a company specializing in system integrated circuits (ICs), worry about other forms of difficulty due to an upsurge in orders from Huawei and other Chinese clients.

Zinitix, which produces system ICs used for smartphones, tablets, laptops PC and home appliances, said it may have to drastically revise its target for sales in China this year due to orders from Chinese wearable products. The company supplies Touch Controller ICs to Chinese smart device manufacturers such as Huawei, Xiaomi and BBK. Huawei uses Zinitix ICs for all models of smartwatches.

ICs, used in virtually all electronic equipment, integrate large numbers of tiny transistors into a small chip. A complex systems-on-a-chip (SoC) is an integrated circuit in which all the components needed for a computer or other system are included on a single chip.

The shipment of Touch ICs soared from six million units in the first quarter of this year to more than 10 million in the second quarter, helped by the vitalization of China's wearable market, a Zinitix official said, predicting greater third-quarter sales.

Chips can be categorized in terms of functionality. Memory chips store data and programs. Microprocessors contain one or more central processing units (CPUs). Standard chips are used for performing repetitive processing routines. In SoCs, all of the electronic components needed for an entire system are built into a single chip. Smartphone SoCs integrate graphics, camera, and audio and video processing.

Through bold investments and full state support, South Korea has vowed to push for the rapid localization of materials, parts and equipment for semiconductor and other key industries, citing a trade war with Japan. Zinitix CEO Sohn Jong-man said its business would not be affected by a Sino-U.S. trade war and Japan's export restrictions.

“The semiconductor industry as a whole is facing a difficult situation due to trade friction between the United States and China and Japan's regulations on exports of semiconductor materials,” Sohn said. “We believe that the production process of Zinitix wearable Touch ICs will not be affected, and we are working hard to meet the delivery deadline by creating a task force team due to the recent surge in orders.”