Summary of Key Points
BAW filters are crucial components in 5G smartphones for signal filtering, with a global market size of nearly one billion US dollars that continues to grow. However, this market has long been dominated by companies such as Broadcom and Qorvo from the United States (accounting for over 90% of the share). In the past, domestically produced BAW filters were virtually non-existent, but in recent years, several Chinese companies, including Wuhan Minsheng, Norsight Microelectronics, and XinSheng Semiconductor, have achieved mass production, with cumulative shipments reaching hundreds of millions of units, even making their way into mainstream smartphone brands. Nevertheless, the technology behind BAW filters is highly challenging (due to material, manufacturing processes, and patent barriers). Domestic companies not only face the patents of overseas giants but also engage in legal disputes with domestic competitors over patents and market competition. This is not a sign of internal strife; rather, it indicates that Chinese BAW filter manufacturers have moved from a stage where they simply existed to one where they are competing on the quality and competitiveness of their products. To gain a foothold in the market, they need to improve in areas such as patents, production efficiency, customer acquisition, and cost control.
I. BAW Filters: The Key to Clear Signal Reception in Smartphones – Even More Essential in the 5G Era
The ability of your smartphone to receive WeChat messages, phone calls, and 5G signals without interference relies on radio frequency filters, which act like “signal sieves,” allowing only the necessary signals through. BAW filters are particularly important for 5G phones because:
- Compared to traditional SAW (Surface Acoustic Wave) filters, where sound waves travel along the surface of a material and lose strength at higher frequencies, BAW filters use sound waves that bounce back and forth within thin films, enabling them to handle the high frequencies and bandwidth requirements of 5G.
- As the number of 5G frequency bands increases, so does the demand for BAW filters; by 2025, the global filter market is expected to reach approximately 9.2 billion US dollars, with BAW filters accounting for more than 30% of that amount, and the market is growing at a rate of over 10% annually.
II. A Lucrative Market, but Highly Competitive: Domination by American Companies with Insurmountable Patent Barriers
Although the BAW filter market is attractive, it is heavily dominated by American companies:
- Dominance is staggering: In 2025, Broadcom alone will account for 84% of the global BAW filter market, and together with Qorvo, they will hold over 90%. Even a customer as large as Apple has to sign long-term agreements with Broadcom (worth over 30 billion US dollars by 2031) due to their technological dominance.
- Patent barriers are formidable: The patents accumulated by leading companies over decades act like a net, trapping newcomers. For example, the American company Akoustis, which had been in the BAW filter industry for more than a decade, was sued by Qorvo for patent infringement, resulting in a settlement of 57 million US dollars and a ban on its products, ultimately leading to bankruptcy. Its assets were purchased at a low price by a SpaceX subsidiary. This shows that without patents, companies cannot even enter the market.
III. Rapid Progress of Domestic BAW Filter Manufacturers
Domestic manufacturers have made significant strides in recent years:
- Wuhan Minsheng: Founded in 2019 and began mass production in 2023, it has shipped 800 million BAW filters by April 2026, with products used in smartphones, the Internet of Things, and other applications. The company has also built an 8-inch production line capable of producing 10,000 wafers per month when fully operational.
- XinSheng Semiconductor: In collaboration with China Resources Microelectronics, it sells over 300 million D-BAW filters annually, which are used in mainstream smartphones and tablets, including high-end models.
- Diverse Approaches: Some companies (like Norsight Microelectronics and Hantianxia) adopt an IDM (Integrated Device Manufacturing) model, while others (such as Wuhan Minsheng) use a combination of design and contract manufacturing, forming complete industrial ecosystems.
IV. Legal Disputes Among Domestic Companies: A Sign of Market Maturation
In June this year, Norsight Microelectronics sued Wuhan Minsheng for patent infringement. What does this mean?
- It’s not a bad thing: Previously, there were no domestic BAW filters to compete over, so legal disputes were inconceivable. Now that companies have products to offer, they are using patents to protect their interests, marking a transition from technological breakthroughs to market competition.
- Patents as a Power Tool: Norsight Microelectronics’ patents cover key components of BAW filters (piezoelectric resonators), making infringement easy to detect. The company has also filed lawsuits against other domestic companies and even against Apple and Anhua High-Tech, eventually reaching settlements. This highlights the importance of patents for BAW filter manufacturers.
V. The Next Challenges: Patents, Production Efficiency, and Customer Acquisition
Technological breakthroughs are just the starting point; to establish a foothold in the market, companies need to focus on the following:
- Patent Strategy: They must avoid infringement and apply for core patents to prevent being held back by others.
- Production Efficiency: Being able to produce filters is not enough; low defect rates during mass production are necessary to reduce costs and gain a competitive edge in pricing.
- Customer Access: Entering the supply chains of mainstream brands like Apple, Huawei, and Xiaomi is crucial for securing large orders and spreading R&D costs.
- Cost Control: BAW filters generate high profits (with Broadcom’s gross margin exceeding 50%), but if domestic companies cannot reduce their costs, they will not be able to compete with overseas giants.
The chairman of Wuhan Minsheng stated, “Technology is no longer the biggest obstacle; the key is how to convert it into a market advantage.” This highlights the next step for Chinese BAW filter manufacturers: moving from being able to produce filters to selling them effectively and at a competitive price.
In summary, domestic BAW filter manufacturers have overcome the initial challenges of getting started and have entered a phase of intense competition. Although there are still hurdles such as patents and production efficiency, they are now on par with overseas giants. This is not only a breakthrough for smartphone components but also a reflection of China’s semiconductor industry moving towards higher-end capabilities.