Loongson Technology(SH:688047) Shang Hai Zheng Quan Bao·2025-07-23 18:08Core Viewpoint - The fundamental path for China's information industry lies in establishing a third ecological system independent of X86 and ARM architectures [4][6]. Company Development - Longxin Technology, a company focused on building an independent information industry ecosystem through self-controlled chips, emphasizes self-reliance and innovation in research, production, and software ecology [5][6]. - The company transitioned from a research team to an enterprise in 2010, aiming to industrialize its CPU technology after realizing the limitations of existing architectures [6][7]. - Longxin launched its self-developed instruction system "LoongArch" in 2020, which has since been integrated into various applications across multiple sectors, including government, energy, and finance [7][9]. Market Strategy - Longxin aims to achieve a dual-market strategy by balancing policy-driven and open-market approaches from 2022 to 2024, with a focus on enhancing product competitiveness [8][9]. - The company reported a significant increase in revenue, with a 29.64% quarter-on-quarter growth and a 43.91% year-on-year growth expected in the second half of 2024 [9]. Future Outlook - From 2025 to 2027, Longxin plans to shift focus from R&D to market engagement, improving product cost-performance ratios to reduce reliance on policy-driven markets [10][12]. - By 2025, the third ecological system based on the LoongArch architecture is expected to be largely established, with aspirations to achieve a competitive balance with X86 and ARM by 2035 [12]. Strategic Approach - Longxin maintains a pragmatic yet bold strategy, integrating AI technology into its chip ecosystem while focusing on cost-performance advantages [11]. - The company emphasizes the importance of business logic over mere technological advancement, aiming for practical value in its technological breakthroughs [11].