On the evening of January 20th, two notable players in the semiconductor industry, Jingfang Technology (603005) and Rockchip (603893), released their profit forecasts for the upcoming fiscal yearThese announcements have stirred interest among investors and tech enthusiasts alike, highlighting the momentum the semiconductor sector is currently experiencing.

Jingfang Technology projected an impressive net profit for the year 2024, estimating earnings between 240 million to 264 million RMBThis translates to a substantial year-on-year growth of approximately 59.90% to 75.89%. When factoring in non-recurring gains and losses, the forecasted net profit is expected to land between 208 million to 232 million RMB, which represents a remarkable increase of 79.39% to 100.09% compared to 2023. This significant forecast showcases the company's robust position in the realm of sensor packaging and testing.

The technology firm specializes in the packaging and testing of sensors, employing a diverse range of advanced packaging techniques

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Their manufacturing capabilities extend to 8-inch and 12-inch wafer-level chip packaging, which they have scaled to mass productionThe products that emerge from Jingfang's production lines include image sensor chips, biometric recognition chips, and MEMS chipsThese are widely utilized across various electronic domains, such as mobile phones, security surveillance systems, identity verification applications, automotive electronics, and 3D sensing technology.

According to Jingfang Technology, several key factors contributed to their optimistic profit forecastFirstly, the ongoing trend toward automotive intelligence is driving a rapid expansion in the application of automotive CIS (Camera Image Sensor) chipsConsequently, Jingfang has seen a continuous enhancement in both its scale and competitive advantages within the automotive CIS packaging spaceAdditionally, the company is committed to innovating within advanced packaging technologies to meet the evolving technical requirements brought forth by its clientele, particularly in new application areas such as MEMS and RF filters, which have started to see commercial traction

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Furthermore, by optimizing production processes and management strategies, they have bolstered operational efficiency across their operations.

Similarly, Rockchip anticipates a notable increase in its financial performance for 2024, with expected revenues ranging from 3.1 billion to 3.15 billion RMBThis marks a projected growth of approximately 45.23% to 47.57% compared to the previous yearIn terms of net profit attributable to the parent company's shareholders, Rockchip envisions profits between 550 million to 630 million RMB, indicating a staggering increase of 307.75% to 367.06% compared to 2023.

Rockchip's core business revolves around the design, research, and sales of smart application processors, SoCs (System on Chips), and supporting chipsOperating at the intersection of AI and IoT (Artificial Intelligence of Things), the company has established machine vision and automotive electronics as its pivotal industries in this domain

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This targeted focus is reflective of broader trends in technology, where AI-driven solutions are increasingly finding their roles in various industries.

The driving force behind Rockchip's significant profit surge is attributed to a rebound in global electronic market demand as we enter 2024, alongside the rapid advancement of AI technology and the expanding applications of AI in various settingsThis invigorating market environment has led to growth across all sectors that Rockchip has invested time and resources into, particularly those dedicated to AIoT technologiesThe flagship RK3588 chip has been pivotal in this success, fitting seamlessly into a layered product strategy that caters to diverse customer requirements and solidifies the company's market presence in areas such as automotive electronics, machine vision, and industrial applicationsThis comprehensive product strategy has resulted in growth across their various AIoT computing platforms, notably the RK3588, RK356X, and RV11 series.

Rockchip plans to continue leveraging its established core technologies, products, and application advantages in AIoT as it charts its path for 2025. The company aims to focus on automotive electronics, industrial applications, machine vision, and robotics, enhancing the value of their existing products while actively pursuing the development and implementation of co-processor technologies tailored to meet end-user needs

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Their commitment to the development of a new generation of flagship chips signals their intent to remain at the forefront of innovation in the semiconductor sector.

The semiconductor industry as a whole is experiencing a notable upswing, with several companies reporting promising financial forecastsFor example, on January 16, Xinpeng Micro announced expectations for a net profit between 10 million to 12 million RMB for 2024, reflecting a staggering growth rate of 68.13% to 101.76%. This forecast was based on the company's continued dedication to the power semiconductor market, where innovations in high-voltage AC-DC solutions positions them for substantial success in the upcoming year.

Moreover, by leveraging differentiated technical advantages, Shengmei Shanghai forecasted revenue of approximately 5.6 billion to 5.88 billion RMB for 2024, indicating growth from 44.02% to 51.22%. Their strategy emphasizes a commitment to meeting diverse customer needs through technical advancements and a robust global market expansion.

Beifang Huachuang also demonstrated positive prospects, forecasting net profits in the range of 5.17 billion to 5.95 billion RMB, representing growth of 32.60% to 52.60%. They cite successful innovation and product breakthroughs in several successful new offerings, such as capacitive coupling plasma etching equipment and vertical atomic layer deposition furnaces.

In light of current industry conditions, experts remain optimistic about the future trajectory of the semiconductor industry