MooreElite，Make IC Design Easy & Efficient
JingYang Zhang 张竞扬 摩尔精英
![JingYang Zhang 张竞扬 摩尔精英]()
JingYang Zhang 张竞扬 摩尔精英
Founder & CEO of MooreElite - Make IC Design Easy & Efficient
- MooreElite was founded 4 years before, we are trying to be an one stop service platform for IC Industry, to incubate fabless start-ups and accelerate IC design;
- MooreElite founder and team own 68.7% of the company equity, our investor is Tsinghua group, who is also investor of Spreadtrum, RDA, ISSI, OmniVision, Montage, GigaDevice, GalaxyCore .etc.
- Now we have 300+ employees, more than half are IC design engineers, our revenue this year will be around $75M USD, 80% coming from design service and IC supply chain management;
- Our HQ in shanghai and about 2/3 team here also, we have office in about 20 cities around the world, include San Jose, Hsinchu, Tokyo, France oversea;
- Before going to details of our biz introduction, I want to spend few minutes to share my 2 cents about IC industry trend, so you may understand why we build MooreElite biz mode like this, very unique;
- IC Industry is changing, Disruptively, even become a completely new industry, for last half century, technology and Moore’s law is everything, players who can speed up, over run Moore’s law win; but after 2015, Moore law slow down, it used can offer 52% performance increase per year, but reduced to only 3.5% now, This changes everything for IC industry;
- First, no more rush for process generation after generation update, One AMD SVP told me before, most of the CPU innovation in past 50 years were started by AMD, but because of Intel’s technology advantage and Moore’s law, Intel always win in the end, thanks for pure foundry and IP license biz mode, now even start-ups can go straight to 7nm for 1st Tape out, New Comers has opportunity to compete with giant like intel finally;
- Because of no Moore law magic anymore, AI chip Market thirsty for performance, each segment need customized ASIC to boost performance, create more demand and opportunity for design service;
- The last but not least, although IoT market in total is huge, each segment is too fragmented to be covered by traditional big IC companies, minimum TAM of their entry bar is around 2B USD, The wording “IoT” is very misleading, which group tens of thousands fragmented segment into one word, together in total, it is gold mine, but each segment is barren and poor.
- All the IoT segment today are low volume, high mix, hard to justify new product line in big company, if with traditional SoC approach. Unless you can find a way to design IoT chip with 1/10 of cost, time and team effect, you can not fulfill these IoT market demand.
- In conclusion, IC industry now face its “Nokia moment”, the industry’s fundamental govern rule has changed, IC players also need to change mindset, from deliver standard IC product, to provide customized IC as a Service, technology is not “one cure for all” solution anymore, understand end market, service attitude become more and more important;
- As you all know, China consume 2/3 of WW IC product, but among them only 11% self sufficient rate; Due to many reasons these days, the embargo drama b/w China US, Korea Japan; China government wish growing to 70% self sufficient rate in next decade, which leads to around 10 times grows for local designed chip shipment; Huge opportunities for everyone have biz in China;
- If you take a deep dive into China IC industry, you will find it is quit different from rest of the world;
- There are more than 2000 fabless companies, but if you exclude top 10 companies, the rest 2000 fabless only contribute 22B USD revenue, 90% of them lass than 15M revenue and 95% less than 100 employees; However, few hundred traditional IC companies ship $450B USD chips every year, The traditional companies size is 100 time of China start-ups, why?
- The answer is product line numbers, because most these china fabless started in less than 2 years, they only have 1 product line, however, traditional IC companies have hundreds even thousands products lines because of long history, they combined together to large revenue; this difference create problem and opportunities
- Most of the IC startups, especially these in China, are actually a R&D dept or Design studio at most, they are key competence is IC design skill；It is hard and make no sense for these CTO background entrepreneurs to run a full set company, learn how to be sales, how to do operation, how to deal with supply chain, and also it is not economic to hire full function team if you only have one small shipment product line.
- And because their company have no tracking record, their biz size only 1% of traditional IC companies with long history, it is hard for them to get supply chain support, foundry, packaging house, IP vendor all like big clients;
- MooreElite provide one-stop service platform to free these CTO from company sales, operation and supply chain workload. And we combined 1500 fabless demand together make it sizable for supply chain to serve. We want to help these IC Design Studio to focus on developing their key advantage, to become top in their niche market.
- With a goal of "making IC design easy & efficient", we are building the future semiconductor infrastructure to enable IC design companies. Just like what Alibaba built for e-commerce Industry, Alibaba provide logistic, payment, traffic generation service to enable many small and middle size e-commerce companies to success.
- MooreElite provide Design Services, Supply Chain Operation, HR and Enterprise services to over 1,500 Fabless globally, we are trying to be an Alibaba-like platform to enable small and middle size IC design companies to success
- This Cover more than 65% of IC Design companies revenue, this is a typical cost structure of new fabless, as long as MooreElite share client b/w our 10 BU, takes most of their spending, even very small fabless can be profitable client for us;
- After years of commercial practice, the leading big IC Design companies have developed efficient internal collaboration model. That is, using Consolidated in-house Manufacture and Operation, supporting hundreds of R&D Departments, then all the products sold using Consolidated Sales & Brand. Each R&D Department is like special force, move fast, share resource, get timely support from mother ship, grow $$$ quickly leverage Consolidated sales and brand.
- Similar to big IC companies, MooreElite is building an IC ecosystem to enable small fabless, more open, more dynamic. All the resources and technical capabilities will not necessary belong to one big company but could be Eco-system with many small companies combined.
- Fabless will be smaller than today’s IC Design houses, leverage powerful support of Eco-system, all the IC generated here will not be MooreElite brand or owned by us；We are building a “selected IC Store” with trustable quality and same standard, fabless can have their own brand “powered by MooreElite”
