Core Viewpoint - Ambarella expresses unwavering confidence and commitment to the Chinese market, emphasizing a localized strategy to enhance its presence and capabilities in the region [1] Localization Strategy - Ambarella is advancing its Localization Strategy 2.0, focusing on utilizing Chinese technology, talent, speed, cost, and supply chains to create comprehensive solutions tailored for the Chinese market [1][2] - The company has established a network of over 2,000 suppliers in China, highlighting the importance of self-sufficiency and control over the supply chain amid geopolitical uncertainties [2] Geopolitical Context - Despite geopolitical challenges, Ambarella's fundamental strategy remains unchanged, with a focus on empowering Chinese automotive brands to expand internationally [3] - The company plans to increase investments in China, including the establishment of smart, digital factories and technology centers [3] Innovation and Global Strategy - The concept of "In China, For China" has evolved to emphasize innovation within China, moving beyond mere production to include system outputs for global markets [4] - The shift in strategy aims to leverage China's significant automotive market and its advancements in electric vehicles and digital technologies [4] Challenges and Opportunities in Global Expansion - The trend of Chinese automotive brands expanding overseas is expected to continue, with Ambarella positioned to assist in localizing these brands in foreign markets [5][6] - Ambarella's extensive experience in localization can help Chinese companies navigate local regulations and cultural differences, enhancing their competitiveness abroad [6] Low-altitude Economy - The low-altitude economy is viewed as a promising sector, with Ambarella's technology aligning well with the requirements of electric vehicles and aviation certification [7] - The company is actively involved in both automotive systems and aircraft certification, addressing data security concerns and positioning itself to lead in the low-altitude economy [7]

Core Insights - The 2025 Shanghai Auto Show showcased a significant shift in the automotive industry, highlighting the growing importance of supply chain companies alongside traditional vehicle manufacturers [1][3] - The theme of the event, "Embrace Innovation, Win the Future," reflects the collaborative spirit between automotive manufacturers and supply chain enterprises, marking a transformation in industry dynamics [1] Group 1: Supply Chain Evolution - Supply chain companies are emerging from the shadows of vehicle brands, becoming key players in driving industry transformation [1] - Nearly 1,000 renowned companies from 26 countries participated in the event, with dedicated exhibition spaces for automotive technology and supply chains, indicating their rising prominence [1] - The event featured a variety of advanced technologies, including power battery modules and intelligent automotive chips, showcasing the capabilities of supply chain enterprises [1] Group 2: Localization and Innovation - Chinese automotive supply chain companies are transitioning from "followers" to "participants," with a focus on localized solutions that cater to the domestic market [3] - Companies like Aptiv and Denso introduced localized products at the show, emphasizing the development of technologies that are free from foreign control and export restrictions [3][7] - Denso's CTO highlighted the company's commitment to accelerating technology development in response to the rapid evolution of electrification and intelligence in the automotive sector [7][10] Group 3: Strategic Collaborations - CATL announced a strategic partnership with GAC Group, unveiling new models and emphasizing collaboration with major automakers [10][12] - Huawei's DriveONE solutions have been adopted by 12 mainstream automakers, showcasing the company's extensive reach in providing intelligent electric vehicle solutions [12] - The collaboration between Audi and Momenta aims to create a new standard for intelligent driving, reflecting a deep understanding of Chinese consumer needs [13][16] Group 4: Global Expansion - Chinese automotive supply chain companies are not only focusing on local markets but are also expanding their reach globally, as seen with the internationalization of intelligent driving solutions [16] - The partnership between Zhiji Auto and Momenta represents a significant step in bringing Chinese intelligent driving technology to international markets, including Southeast Asia and Europe [16] - The evolution of the supply chain is marked by a transition from local supply to global output, indicating a competitive edge in the global automotive landscape [16]

Group 1 - The global automotive manufacturing landscape is undergoing significant transformation by 2025, with companies like Aptiv actively adjusting to these changes [1] - Aptiv is promoting a fully localized supply chain strategy in China, aiming for self-sufficiency in its OEM customer business and local OEM export business [1][2] - The company emphasizes a "China for China" approach, ensuring that its intellectual property and R&D capabilities are rooted in China [2] Group 2 - At the Shanghai Auto Show, Aptiv showcased localized intelligent automotive solutions, including a real-time operating system and virtualization platform, focusing on emerging industries [2] - The company aims to achieve 100% localization in its solutions, allowing for flexible partnerships with domestic suppliers [2][3] - The current domestic chip localization rate in China is only 15%, indicating significant room for growth in this area [2] Group 3 - Aptiv acknowledges the challenges in achieving higher localization rates for automotive-grade chips and is committed to strengthening its supply chain in China [3] - The company is actively collaborating with local partners to create an ecosystem that supports domestic OEMs in their export efforts [5][6] - Aptiv's strategy includes leveraging its capabilities to support the export of Chinese automotive innovations, particularly in the electric vehicle sector [6]