The event commenced with a welcome address by Hyundai Mobis President Lee Gyu-suk, followed by presentations and discussions on various topics including 'The Necessity of Establishing a Korean Automotive Semiconductor Ecosystem', 'Strategies for Localizing Core Mobility Semiconductors', and 'Technical Direction for Building a Collaborative Framework'. "We are securing independent semiconductor design capabilities while pursuing joint development with fabless companies and design houses, and expanding cooper ...

Summary of the Conference Call on China's Automotive Semiconductors Industry Overview - The focus is on the **China Automotive Semiconductors** industry, particularly in the context of **autonomous driving (AD)** and **advanced driver-assistance systems (ADAS)**. - The market for AD/ADAS SoCs (System on Chips) is projected to reach **US$7.3 billion by 2029**, growing from **US$0.8 billion in 2024**, representing a **CAGR of over 50%** [10][17]. Key Insights Market Growth and Demand - The demand for AD/ADAS SoCs is expected to grow significantly, with a **56% revenue CAGR from 2024 to 2029** [5]. - Major Chinese OEMs are anticipated to capture more than **50% market share** in the mid/high-end AD SoC market (100+ TOPS) by 2029, up from **3-5% in 2024** [4][12]. Horizon Robotics - **Horizon Robotics** is identified as a key beneficiary in the AD semiconductor market, with expected **unit shipments growth of 37% from 2024 to 2029** and a market share of **30-35%** among Chinese OEMs [6][66]. - The company has secured design wins for over **100 new vehicle models** in 2024, bringing its cumulative design wins to over **310** [15]. - Horizon's price target is set at **HKD 10.50**, indicating a **35% upside potential** [6]. Technological Advancements - The maturity of AI technology is enhancing the capabilities of autonomous driving algorithms, with a shift towards **end-to-end architectures** that improve efficiency and reduce errors [23][24]. - The computing power required for L3 or higher autonomy is estimated to be **500-1000 TOPS**, with significant advancements in semiconductor technology supporting this demand [50][33]. Localisation and Self-Sufficiency - There is a pressing need for self-sufficiency in automotive semiconductors in China, with current localisation rates being low. The goal is to achieve **50%+ self-sufficiency by 2029** [54][58]. - The Chinese government is actively promoting the localisation of automotive chips, with initiatives aimed at increasing domestic chip adoption [62][46]. Competitive Landscape - The competition is intensifying as domestic companies narrow the technology gap with international leaders. Horizon Robotics is positioned well due to its integrated hardware-software capabilities and strong supply chain relationships [66][68]. - The average R&D expenses for domestic peers are significantly lower than Horizon's, which indicates a potential for improved efficiency in the future [15]. Additional Insights - The adoption of **L2+ autonomous driving** features is becoming a standard among major Chinese OEMs, with companies like BYD leading the charge by integrating advanced ADAS features into their mainstream models without price increases [48][49]. - The market is witnessing a shift towards more intelligent automotive solutions, with expectations of increased optical sensor usage from **4 units per vehicle in 2024 to 11-13 units by 2029** [13]. Conclusion - The Chinese automotive semiconductor market is on the brink of significant growth driven by advancements in autonomous driving technology and a strong push for local sourcing. Horizon Robotics is well-positioned to capitalize on these trends, supported by its technological leadership and strategic partnerships. The overall sentiment is optimistic regarding the future of AD/ADAS in China, with substantial opportunities for domestic suppliers.