Aifo Guangtong launches Guangzhou filter chip line, targeting US dominance in 95% of high-frequency market

By Zhang Xilong | Interface News

Three numbers have long defined China's position in the high-frequency filter chip industry: approximately 95% of the market share held by overseas companies, an annual global demand exceeding US$20 billion, and a domestic penetration rate of less than 1%. On September 22, a Guangzhou-based company moved to change that. AiFo Guangtong (艾佛光通) officially launched its SABAR headquarters base production line.

Production Capacity and Investment

According to Interface News, the headquarters base covers an area of 50 mu (approximately 3.3 hectares), with a total investment of 3 billion yuan. Once fully operational, the production line is expected to produce 6 billion 5G/6G SABAR (Single-crystal Aluminum Nitride Bulk Acoustic Wave Filter) filter chips annually. The base also includes a newly added RF module production line, with an estimated annual output value of 5.5 billion yuan.

To put 6 billion chips into perspective: assuming a typical 5G smartphone requires 30–40 filters per unit, this annual capacity could support filter components for approximately 150–200 million smartphones.

The Role of Filter Chips

Understanding the significance of this production line requires first understanding what a filter chip does. A smartphone's ability to make calls, access the internet, use Bluetooth, and navigate relies on electromagnetic waves of different frequencies transmitting signals simultaneously. Filter chips act as "signal selectors," with a single phone containing at least 30–40 filters to ensure stable, interference-free operation of various functions.

In 5G and higher frequency bands, this filtering capability becomes even more critical. As a core component of the RF system, high-frequency filter chips directly determine signal reception quality and anti-interference capability. They affect not only high-speed data transmission and call stability but also terminal power consumption and RF integration—making them one of the highest-value components in the RF front-end.

Market Monopoly and Domestic Gap

For years, the 5G filter chip market and related patents have been dominated by two U.S. companies—Broadcom and Qorvo—which together hold 95% of the global market share. A semiconductor industry insider told Interface News that a smartphone typically requires over 30 RF filter chips. Among these, the mid-to-low frequency bands (3G/4G) involve about 10 frequency bands, where domestic supply chains have largely achieved self-sufficiency. However, the nearly 10 high-frequency bands for 5G and above remain the primary focus for domestic substitution.

The global annual demand for bulk acoustic wave filters, represented by SABAR technology, exceeds US$20 billion, yet domestic penetration remains below 1%, indicating enormous room for localization.

A Different Technological Path

AiFo Guangtong's core strategy to bypass patent barriers is a shift in material technology. The company has developed its own material route—single-crystal aluminum nitride. Unlike the polycrystalline aluminum nitride route used by overseas giants, single-crystal aluminum nitride offers superior piezoelectric performance and acoustic wave transmission efficiency, with operating frequencies covering up to 10 GHz and above, making it suitable for 6G, satellite communications, and other advanced applications.

Yi Xinyan, Deputy General Manager and R&D Director at AiFo Guangtong, explained the difference with an analogy: "The difference between polycrystalline and single-crystal is like driving on a national highway versus an expressway. In single-crystal materials, atoms are highly ordered, allowing acoustic waves to transmit without obstruction, resulting in significantly higher energy conversion efficiency. This solves the performance bottleneck of high-frequency filtering at the material level."

IDM Model and Supply Chain Integration

Following this technological route, AiFo Guangtong has become the only company in China and the third globally to master the full-chain core technology for 5G mid-to-high frequency bulk acoustic wave filter chips, operating under an IDM (Integrated Device Manufacturing) model. The company has achieved stable mass production of nearly 100 types of high-frequency broadband SABAR filter chips, which have entered the supply chains of major terminal manufacturers such as Samsung and ZTE.

Supporting this proprietary route is deep modification of equipment. Huang Hongjun, Deputy General Manager of Investment and Financing at AiFo Guangtong, previously told Interface News that filter chips differ from digital chips—their performance improvement depends on process and structural complexity. To support its proprietary technology, the company has modified approximately 12 sets of semiconductor equipment to meet process requirements, with some core equipment developed in-house.

Cost and Performance Advantages

The autonomy of this technological route determines the company's business model. Unlike most chip design companies operating under a Fabless model, AiFo Guangtong adopts an IDM model. In 2015, the company established its first 5G SABAR filter chip pilot production line with a monthly capacity of 500,000 chips. In 2023, it built the world's first 8-inch SABAR IDM production line, achieving mass production.

By building its own production lines, the company eliminates the layered profits of foundry services, gaining cost control and faster R&D iteration. "Currently, our product costs are at least 40% lower than foreign solutions, while key performance indicators are about 20% better than comparable international products. With further cost-reduction measures, we expect the final cost reduction to reach 50%," Yi Xinyan noted.

Capacity Expansion Plans

The dual advantages of cost and performance, combined with rapidly growing downstream demand, are driving the company to accelerate capacity expansion. The newly launched production line is Phase I. Yi Xinyan told Interface News that after achieving an annual output of 6 billion chips, the company will continue to expand, with a long-term target of 15–20 billion chips. Previously, the company's factories in Guangzhou and Heyuan were already operating at full capacity. This year, the planned filter chip capacity exceeds 1 billion units, with a yield rate stable above 98%.

RF Module Integration

Beyond sheer volume, the addition of an RF module production line at the base is a notable development. RF modules integrate two or more discrete components—such as filters, power amplifiers, and switches—into a single package. For terminal manufacturers, one module replaces the need to select, match, and tune multiple discrete components. For suppliers, module unit prices are significantly higher.

For example, the L-PAMiD transmit module used in mainstream flagship smartphones is estimated at US$3–4 per unit, with some high-end variants costing more. In contrast, a single discrete filter typically costs only a few tenths of a dollar—a fraction of the module price. Moving from discrete filters to modules is not simply a matter of "one replaces many"; it represents a shift from component supply to higher-barrier system-level solutions.

Emerging Demand Drivers

Beyond smartphones, filter chip demand is expanding along two new fronts. The semiconductor industry insider noted that, on one hand, the rapid adoption of AI terminals demands real-time connectivity and low-latency communication, driving increased RF front-end usage. On the other hand, strategic emerging sectors such as low-altitude economy and satellite communications are entering large-scale deployment, with signal processing heavily dependent on filters. Industry forecasts suggest these niche markets will maintain growth rates significantly above the industry average.

Future R&D Directions

"Our next R&D efforts will focus on three directions," Yi Xinyan told Interface News. "First, we will continue to reduce the cost and size of existing filter products—for example, a major technological breakthrough in the new production line is the mass production of miniaturized filters measuring 0.9×0.7 mm, smaller than the current mainstream 1.1×0.9 mm. Second, we will extend to higher-integration products, including receiver modules. Third, leveraging the compatibility of our existing MEMS (Micro-Electro-Mechanical Systems) production lines, we will expand into the sensor field, developing devices for gas detection, microphones and speakers, pressure sensing, and motion control—tapping into the perception needs of AI terminals and robots."

"The MEMS process line can accommodate sensor chips in addition to filter chips. We plan to explore AI and robotics-related perception chip directions in the future," Yi added.