Investment Points:

MEMS inertial sensor industry chain can be divided into upstream devices (including design, production, packaging, calibration testing, etc.), midstream modules, downstream systems, end applications. Components such as chips/components are located in the upper reaches of the industrial chain and are the basic core inertial components used by inertial module manufacturers in the middle reaches of the industrial chain. Such inertial components are mainly used to independently measure and feedback changes in the movement speed and angle of objects, and form inertial navigation systems, combined inertial systems, etc. with other guidance and control modules such as satellites. The downstream application end customers integrate them into relevant equipment to play the role of inertial navigation, inertial measurement and inertial stability control. MEMS inertial sensor products can eventually be applied to consumer (consumer electronics), tactical (mapping, resource exploration and other high-end industries, vehicles and aircraft), navigation (aviation, long-duration unmanned systems), strategic (aerospace, navigation) and other fields.

upstream device is the core of the function, it is recommended to pay attention to the design, production, sealing and other aspects of high-quality targets.

Specifically: ① Design link: At present, the number of domestic manufacturers engaged in the design of MEMS inertial sensor components has begun to take shape, but there is still a big gap between the business scope and product performance of different manufacturers. In MEMS inertial sensor components, gyroscopes and accelerometers are the core, and magnetometers are usually used as auxiliary or supplementary and therefore less important than gyroscopes and accelerometers. Through comparative analysis, our suggestions are: in the field of MEMS gyroscopes and accelerometers, focus on the investment opportunities of core mobile (688582.SH) and pay attention to the listing progress of Minghao sensor (A23224.SH); In the field of magnetometer or magnetic sensor, priority can be given to the faster-progressing Canrui Technology (688061.SH) and the progress of magnetic sensor products of Nanxin Micro (688052.SH). Production links: China's MEMS product processing and manufacturing links have been relatively weak for a long time, and advanced foundries are scarce. Through comparative analysis, it is recommended to attach great importance to the investment opportunities of Sai Microelectronics (300456.SZ) and its profitability recovery. ③ Sealing and testing: The domestic MEMS packaging technology is relatively mature, with a relatively mature process and a large number of packaging production lines. Considering that the test cost is an important part of the sensor cost, it is recommended to pay attention to the core of the MEMS inertial sensor calibration test capability (688582.SH), Minghao sensor (A23224.SH) and so on.

midstream module or for the future of the main application form, it is recommended to pay attention to the faster progress of the car regulations related to the target. In addition to the downstream expansion of manufacturers with MEMS inertial sensing core component design capabilities, manufacturers currently engaged in MEMS IMU module production also include some manufacturers that do not have core component design capabilities but are experienced in vehicle regulations. Through comparative analysis, we recommend focusing on Huayi Technology (688071.SH), which has completed the fixed-point, and Zhonghaida (300177.SZ), which has achieved shipments, and focusing on the opportunities that the evolution of autonomous driving to a higher level brings to high-precision IMU manufacturers.

downstream system for the current main application form, it is recommended to focus on the market position is more superior to the relevant target. Companies engaged in the development and production of MEMS inertial navigation systems/combined navigation systems are mainly upstream manufacturers with IMU production capacity, as well as some companies with advantages in the field of satellite navigation and positioning.

based on automotive progress and market position considerations, we recommend focusing on longitude and latitude Hengrun (688326.SH) and China Measurement Navigation (300627.SZ).

Risk Warning: The risk of MEMS technology upgrade and iteration failure, the risk of uncertainty and less-than-expected industrialization of humanoid robot technology solutions, and the risk of less-than-expected progress of high-level autopilot iterations.