Policy and Market Trends - The Ministry of Industry and Information Technology and eight other departments issued a plan aiming for approximately 32.3 million vehicle sales in 2025, a year-on-year growth of about 3%[7] - The plan emphasizes the core position of intelligent development and promotes the industrial application of intelligent network technology, including the approval of L3 level vehicles for conditional autonomous driving[13] Industry Analysis - The market for automotive-grade SoC (System on Chip) in China is projected to reach 38.1 billion yuan in 2024, representing a year-on-year growth of 42.7%[26] - SoC chips have become the mainstream intelligent driving chips due to their enhanced computing power and data transmission efficiency, addressing the challenges faced by traditional MCU chips[21] Stock Performance - The median price change for technology growth stocks on the Beijing Stock Exchange was -1.84% from September 15 to September 19, 2025, with 43 companies (28%) experiencing an increase[45] - Notable gainers included Kaiter Co. (+33.76%), Anhui Phoenix (+19.99%), and Tianhong Lithium (+19.11%) during the same period[45] Valuation Metrics - The median TTM (Trailing Twelve Months) P/E ratio for the automotive industry increased by 2.96% to 38.2X, while the electronic equipment industry saw a decrease from 63.1X to 60.7X[45] - The median market capitalization for the automotive industry rose from 22.1 billion yuan to 22.6 billion yuan[45] Company Developments - Kaiter Co. specializes in automotive sensors and has a market capitalization of 7.728 billion yuan with a TTM P/E ratio of 47.65[44] - Aweit intends to establish a wholly-owned subsidiary in Anhui Province with a registered capital of 30 million yuan[39]

Core Insights - The automotive-grade SoC (System on Chip) chips are essential for vehicle intelligence, covering smart cockpit and autonomous driving, and are becoming key replacements for traditional ECUs as automotive electronic architectures upgrade [1][2] - The smart cockpit market is expected to double globally from $33.16 billion in 2021 to $70.63 billion by 2024, with China experiencing a growth rate exceeding 31% [1][8] - The penetration rate of cockpit domain controllers in China is projected to reach 29.37% by 2024, highlighting the potential in lower-tier markets [1][8] - Autonomous driving is accelerating towards L3 level, with significant penetration expected by 2025, and L4 level projected to reach 4.4% by 2027 [1][9] Industry Overview - Automotive-grade SoC chips are integrated circuits designed for automotive electronic systems, combining processors, memory, interfaces, and sensors into a single chip to enable functionalities like autonomous driving and smart cockpit [2][3] - The industry is characterized by a clear upstream and downstream collaboration, with upstream relying on imported IP cores and semiconductor materials, while the midstream chip design is active with companies like Horizon Robotics and Black Sesame [6][7] Market Segmentation - The automotive-grade SoC chips are primarily divided into two categories: smart cockpit SoCs focusing on CPU/GPU performance and multimedia processing, and autonomous driving SoCs emphasizing AI computing power and functional safety [3][5] - The smart cockpit market is rapidly growing, with a projected compound annual growth rate (CAGR) of 28.66% from 2021 to 2024, and expected to reach $148.41 billion by 2030 [8] - The autonomous driving sector is transitioning from ADAS to higher-level autonomous driving, with L3 technology expected to be implemented in 2024 [9] Competitive Landscape - The smart cockpit chip market is currently dominated by foreign companies, with Qualcomm, AMD, and Renesas holding 85% of the market share by 2024, while domestic suppliers have increased their market share from less than 3% to over 10% [12][13] - The autonomous driving SoC market is primarily led by Nvidia, Tesla, and Mobileye, but domestic companies like Huawei and Horizon Robotics are gaining traction [13] Future Trends - The automotive-grade SoC industry is evolving towards high computing power, low power consumption, and increased localization, with a target of achieving over 70% localization by 2028 [14][15] - The demand for high-performance SoC chips is expected to grow significantly as autonomous driving capabilities penetrate lower-tier vehicle markets [16] - The integration of chip technology with algorithms and tools is expected to enhance the competitive edge of domestic manufacturers, fostering a collaborative ecosystem [15][16]