Investment Rating - The report indicates a positive outlook for the brain-computer interface (BCI) industry, highlighting significant technological advancements and supportive policies that are expected to drive commercialization [3][5]. Core Insights - The brain-computer interface industry is experiencing a surge in global research and development, particularly driven by companies like Neuralink, which has completed its first human implant surgery, igniting interest in BCI technologies [4][5]. - Domestic companies in China are rapidly advancing their BCI capabilities, with notable clinical trials and successful implementations, suggesting a promising future for commercialization [5][7]. - The report emphasizes the dual resonance of technological progress and policy support, which is paving the way for the BCI industry to enter a phase of rapid development and potential widespread application [7][49]. Summary by Sections 1. Brain-Computer Interface: A Bridge for Communication - BCI technology enables direct communication between the brain and external devices, facilitating control of devices through thought [9][24]. 2. Industry Chain and Applications - The BCI industry relies heavily on the semiconductor sector for upstream components, while the primary application is in the medical field [25][26]. - The report notes that the BCI industry is composed of upstream hardware and software, midstream BCI products, and downstream application solutions, with a significant portion of companies focused on medical applications [26][29]. 3. Technological Advancements and Policy Support - Recent breakthroughs in underlying technologies, including microelectronics and neuroscience, have set the stage for the BCI industry to enter a period of application proliferation [7][55]. - Supportive policies from the Chinese government, including pricing guidelines for BCI services, are facilitating the integration of BCI technologies into clinical practice [7][49]. 4. Global Development and Domestic Progress - The report highlights the rapid development of BCI technologies globally, with various companies making significant strides in research and product development [4][50]. - Domestic companies are increasingly investing in BCI research and development, with a variety of applications emerging, indicating a competitive landscape [5][50]. 5. Medical Applications and Market Potential - The medical field is identified as the primary application area for BCI technologies, with potential market sizes estimated to exceed $300 billion as the technology matures [46][49]. - BCI applications are showing promise in treating conditions such as epilepsy, ALS, and spinal cord injuries, with significant improvements in patient quality of life [37][39][46].