Fuhua Micro responds to rising memory prices, costs are under pressure but gross profit margin remains stable.

On the evening of April 8th, the visual processing chip manufacturer Fullhan Micro disclosed the recent performance briefing, in which the company's management responded in detail to core issues such as the price trend of memory, AI chip strategy, car business, and robot race track layout, and clearly stated a medium to long-term goal of achieving a revenue scale of over 5 billion yuan in the next 3 to 5 years. Fullhan Micro products are mainly divided into three categories: ISP, IPC, and edge XVR chips. IPC chips mainly use enclosed memory, accounting for nearly 60% of the company's total chip shipments. The proportion of memory in chip costs has increased significantly, from below 40% before the price increase to 60% or even higher after the increase. Fullhan Micro stated that the price increase is passed on to downstream customers, who generally understand and accept it, and are able to pass it on to further downstream customers. The increase in memory prices puts some pressure on overall gross profit margins, but looking at the second half of last year and the beginning of this year, gross margins have remained relatively stable overall. At the same time, the company is also using alternative solutions such as PSRAM to mitigate the cost pressure caused by the shortage of DDR, and hopes to maintain a relatively stable gross margin.