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Smart meter drives demand in semiconductor chip

METERINGChina.com --In 12, smart meter chip shipmentsreached 57.339 million, an increase of 56.6%; PLC chip market reached 770 million Yuan, an increase of 45.5%. These increases were mainly due to the government large scale investment in infrastructure from April, as well as the tiered electricity price system implemented in July. With the gradually extending of smart home, smart security, broadband network and other applications, the demand for smart meters will grow rapidly. It is expected that smart meter would keep increasing in the next three years with a accelerate installation.

In October 09, SGCC announced a new smart metering technology standard system, composed of functional specifications, technical specifications, type specifications, safety certification standards, 4 types with 12 technology standards. The standard system have detailed requirements in the metering, fee control, communication, power consumption and even electronic circuit layout and appearance, and put forward higher requirements.

Smart meter chip involves control, metering, encryption and communications chips (narrow band communication), wherein the control chip is the core of the entire program, responsible for calculating tariffs, the main control display and communicationsfunctions.

In order to enhance the quality management and control of smartmeter, it is expected to implement a number of new technical standards in the third quarter. On the occasion, all of the metermanufacturers have to adopt the new approach. In order to prevent severe market shocks, more strict requirements relate only to metersample presentation stage.

However, as expected, the entire smart meter semiconductor marketis being re-shuffle respond to these changes,. Even before the publication of these new standards, almost all of the smart metersemiconductor manufacturers had adjusted its product strategy toprepare to meet the new standards.

Because of these factors, the market has changed significantly. For example, by the end of last year, MCU supplier's market share had changed a lot than the first half of the year. Meanwhile, the top 2 ICsuppliers to further consolidate their market, and the competitive landscape changed in PLC market.