Surface acoustic wave (SAW) filter manufacturer Zhangjiagang Sxsaw Electronic Technology Co., Ltd. announced on Tuesday that it had completed an A+ round of financing worth 100 million yuan ($15.7 million). It received joint investment from institutions including SR Capital, Dynamic Capital and Orient Securities Capital Investment.
The firm’s last A-round of financing featured joint investment from Meilan Capital, Nanotrend Capital and Suzhou HunterSun. In this new round of financing, Sxsaw will mainly invest in the second-phase production capacity expansion.
Founded in 2019, Sxsaw is an enterprise integrating chip design, tape-out, packaging and testing in China. At present, the firm has a complete industrial chain. The filters, duplexers and resonators produced by the company can be applied to the filtering and resonance of wireless communication electronic products, including smartphones, base station and remote controls. They are important for realizing the wireless reception of mobile communication (2G to 5G), navigation and positioning (GPS, Beidou), WiFi and other signals in smartphones.
At present, Sxsaw occupies more than 40% of the market share for traditional SAW filters, including wireless microphones and remote control modules. A number of new products have been successfully developed and sent for sample testing, which is expected to be shipped on a large scale in the first quarter of 2022.
With the development of 5G technology, the demand for wireless connection of electronic products increases. As the most valuable subdivision of radio frequency front-end chips, the market scale of SAW filters is gradually expanding.
According to statistics, the global SAW market currently has a scale of nearly 35 billion yuan, and China is the largest market in this segment, with a scale of more than 20 billion yuan. On the contrary, the self-sufficiency rate of Chinese developed SAW meters is less than 5%. Domestic manufacturers started business late, and the whole SAW market is mainly controlled by foreign enterprises such as Murata and Qualcomm.