Source: Sinhan Industry Research Institute

Power management chips are circuits that manage batteries and electrical energy. They are responsible for transforming, distributing, detecting, and managing other aspects of electrical energy in electronic device systems. They can be categorized into applications such as AC-DC, DC-DC, driver ICs, linear regulators, multifunctional PMICs, protection chips, battery management, and wireless charging chips. Based on packaging forms, they can be divided into multi-channel integrated power management chips and single-channel power management chips.

Different devices have different requirements for power functionality, and different modules within the same device also require different voltage and current intensities. Therefore, power management chips are widely used in various electronic products and devices, making it the largest segment in the analog circuit industry.

With the advent of smart lighting, fast charging, Internet of Things (IoT) related technologies, as well as the increasing demand for smart lighting, electronic products, and smart homes, power management chips are facing new opportunities and challenges. On one hand, this requires relevant products to iterate rapidly. Power management chips need to meet the increasingly efficient and precise control circuit demands. On the other hand, it also drives the rapid expansion of the power management chip market.

As 5G technology advances and the performance of mobile phones continues to improve, higher requirements are placed on power management chips for mobile phones. On one hand, the increasing number of functional modules in mobile phones demands an increase in power management modules. For example, the addition of mobile phone cameras means the need for more power management chips. On the other hand, factors such as fast charging, wireless charging, and battery safety in mobile phones have raised higher quality requirements for power management chips. All of these necessitate an increase in both quantity and performance of power management chips.

Since 2016, the global power management chip market has continued to grow. In 2020, the market size reached 32.88 billion USD, with a compound annual growth rate of 13.52%. It is projected to reach 52.56 billion USD in 2025.

As manufacturing centers for consumer goods shift towards the Asia-Pacific region and China, the design industry for power management chips is also showing a trend of shifting to China. This has brought significant development opportunities and prospects for domestic integrated circuit design companies. During the process of industry transfer, large integrated circuit design companies in Europe and the United States have shifted to markets with higher gross margins such as automotive and industrial grades. This has made it easier for domestic companies to enter the consumer market. On the other hand, due to the Sino-US trade frictions, the integrated circuit industry, as a strategic industry related to national security, has received strong support from the country. The importance of autonomous substitution for domestically produced integrated circuits has become prominent. Relevant policies, talents, and market alignment have continuously improved, and with the continuous improvement of domestic power management chip design companies in fierce competition, the import substitution effect has been significantly enhanced.

At the same time, domestic demand will be a huge driving force for the future development of power management chips. As the pivotal component in the power supply of electronic products and devices, power management chips have an irreplaceable role and a broad market space.

The market size of China’s power management chip market has grown from 9.24 billion USD in 2017 to 13.19 billion USD in 2021, with a compound annual growth rate of 9.31%. With the expansion of domestic power management chips into new fields and import substitution, it is expected that the market size of domestically produced power management chips will grow at a faster pace.