Group 1: AI Infrastructure and Cloud Computing - The demand for computing infrastructure is expected to continue expanding due to the explosion of AI model requirements and the intelligent transformation across various industries [2] - AI infrastructure serves as a hub connecting computing hardware and AI applications, driven by hardware upgrades and technological breakthroughs [2] - The value of cloud computing is anticipated to be reassessed in the context of AI penetration, leading to new growth opportunities [2] Group 2: Solid-State Battery Investment - Global solid-state battery shipments are projected to reach 614 GWh by 2030, with a compound annual growth rate (CAGR) exceeding 80% from 2024 to 2030 [3] - The solid-state battery market in China is expected to expand significantly, with a market size projected to reach 20 billion yuan by 2030 [3] - The solid-state battery sector is seen as a "0-1" industry trend, with potential for significant capital inflow if positive industry changes occur [3] Group 3: PCB Industry Growth - The PCB industry is entering a growth cycle driven by AI applications, with expectations for simultaneous increases in both volume and price [4] - Copper-clad laminates, which account for approximately 27% of PCB cost structure, are critical materials for PCB manufacturing [4] - High-frequency and high-speed copper-clad laminates are expected to see rapid demand growth due to applications in AI and 5G [4] Group 4: Computing Power Chain Investment - OpenAI and Meta are increasing investments in AI infrastructure, with OpenAI planning a data center in India using over 1 GW of power and Meta planning to invest $600 billion in U.S. data centers by 2028 [5] - The ongoing expansion of global computing power demand is likely to benefit leading optical module companies [5] Group 5: Domestic Intelligent Driving Chip Market - The development of the intelligent driving sector is becoming a core function in the automotive industry, with significant advancements expected by 2025 [6] - Domestic intelligent driving chip suppliers are poised for accelerated market share growth due to competitive pricing and production experience [6] - The trend of domestic substitution is expected to further enhance the market position of local chip manufacturers [6]

Core Viewpoint - The report from浦银国际 highlights the growing importance of intelligent driving chips in the automotive industry, particularly as the sector transitions into a new phase of development, with a focus on smart assisted driving as a core feature [1] Industry Summary - The intelligent driving chip industry is positioned as a high-value segment within the automotive supply chain, driven by advancements in smart driving technologies [1] - By 2025, Chinese automakers are expected to push for "intelligent driving equality," leading to a decrease in the price range of models equipped with high-speed NOA [1] - Leading new energy vehicle companies are advancing algorithm evolution based on end-to-end architecture, which will promote both volume and price increases for intelligent driving chips [1] Company Summary - The report initiates coverage on Horizon Robotics (09660) and Hezhima (000716), both receiving "Buy" ratings with target prices set at HKD 12 and HKD 21.4 respectively [1] - Local intelligent driving chip suppliers are expected to gain market share due to their cost-effective products and production experience, benefiting from the trend of domestic substitution [1] Market Data - According to Frost & Sullivan, the global automotive-grade SoC market reached RMB 57.9 billion in 2023 and is projected to grow to RMB 205.3 billion by 2028, with a compound annual growth rate (CAGR) of 29% [1] - In China, the automotive-grade SoC market size was RMB 26.7 billion in 2023, expected to increase to RMB 102 billion by 2028, capturing 50% of the global market share [1]

Core Viewpoint - The report from浦银国际 indicates that as the electric vehicle (EV) industry enters its second phase, intelligent assisted driving has become a core function of automotive intelligence, with smart driving chips emerging as a key component in the value chain [1] Industry Summary - The development of intelligent driving chips is expected to see a rise in both volume and price by 2025, driven by domestic automakers pushing for equal access to intelligent driving features and leading EV companies advancing algorithm evolution [1] - Local smart driving chip suppliers are gaining prominence, leveraging cost-effective chip products and production experience to expand their customer base, benefiting from the trend of domestic substitution [1] Company Summary - The report initiates coverage of the smart driving chip industry with an "overweight" rating and also covers companies Horizon Robotics and Black Sesame Technologies, assigning "buy" ratings with target prices of HKD 12 and HKD 21.4 respectively [1]

Investment Rating - The report gives an "Overweight" rating for the intelligent driving chip industry and a "Buy" rating for Horizon Robotics-W (9660.HK) and Black Sesame Intelligence (2533.HK) [3][7][9]. Core Insights - The intelligent driving chip market is expected to expand significantly, with the global ADAS SoC market projected to reach RMB 92.5 billion by 2028 [7]. - The penetration rate of ADAS functions in China's new energy passenger vehicles reached 82.6% in the first half of 2025, indicating a strong demand for intelligent driving capabilities [8][55]. - Domestic intelligent driving chip suppliers are gaining market share due to their cost-effective products and production experience, benefiting from the trend of domestic substitution [9]. Summary by Sections Industry Background - The automotive electronic architecture is evolving, with SoC becoming the mainstream choice for control chips in intelligent electric vehicles [13][14]. - The intelligent driving chip is a core component for achieving advanced driver-assistance systems (ADAS) and autonomous driving functions [19]. Current Industry Status - The intelligent driving process is still in its early stages, with high-level ADAS function penetration remaining low [39]. - The global electric vehicle market is expected to exceed 20 million units in 2025, with a penetration rate of over 25% [39]. Development Trends - The intelligent driving chip market is rapidly expanding, driven by the increasing complexity of software and hardware requirements for ADAS functions [7][19]. - The market for automotive-grade SoC is projected to grow from RMB 57.9 billion in 2023 to RMB 205.3 billion by 2028, with a compound annual growth rate of 29% [19]. Competitive Landscape - Domestic manufacturers are expected to capture a larger market share as they improve their production capabilities and experience [9]. - The competition in the intelligent driving chip market is intensifying, with various players entering the field [9]. Investment Value - The report is optimistic about the upgrade of ADAS capabilities and the domestic substitution trend, indicating potential long-term growth in the robotics sector [9][10]. - The intelligent driving chip market is expected to see a simultaneous increase in both volume and price due to advancements in algorithms and hardware requirements [9]. Company Coverage - Horizon Robotics-W (9660.HK) is positioned as a leading player in the domestic intelligent driving chip market, with a target price of HKD 12.0, representing a potential upside of 22% [11]. - Black Sesame Intelligence (2533.HK) is also highlighted as a key player, with a target price of HKD 21.4, indicating a potential upside of 16% [11].

Group 1 - The demand for intelligent driving is driving fierce competition among chip platforms, with local companies like Horizon Robotics and Black Sesame Intelligence releasing next-generation smart driving chips that achieve breakthroughs in computing power and energy efficiency [1] - The latest smart driving chips maintain cost advantages while significantly improving computing power density, with Horizon's Journey 6 series chips supporting 20 TOPS computing power, a 60% performance increase and a 25% reduction in power consumption compared to the previous generation [1] - The rapid iteration of chip platforms is enhancing the performance of intelligent driving systems and reducing costs, enabling mainstream chips to support advanced features like high-speed NOA and memory parking, which will accelerate the penetration of intelligent driving functions into economic models priced at 100,000 to 150,000 yuan [1] Group 2 - The market share of local intelligent driving chips has surpassed 40% in the first half of this year, with expectations to reach 50% by 2026, indicating the growing importance of local supply chains in the intelligent driving sector [1] - The collaboration between solution providers like Four-dimensional Map New and chip companies will further promote the popularization of intelligent driving technology and cost optimization [1] - The intelligent driving chip platform is evolving towards high performance, low power consumption, and low cost, laying a solid foundation for the large-scale commercialization of intelligent driving technology [2]

Core Insights - The report from Guosheng Securities highlights that System on Chip (SoC) is the mainstream trend for automotive computing chips, with high barriers to entry due to design and manufacturing complexities, high capital investment, and long validation cycles, making intelligent driving chips the most valuable core component in intelligent driving systems [1][2] Group 1: Market Trends - The trend of integrated cockpit and driving systems is significant, which can reduce costs, with single-chip solutions like NVIDIA Thor and Qualcomm 8775 expected to achieve large-scale production by 2025 [1] - The penetration of advanced driver assistance systems (ADAS) is accelerating, with the market for L3 and above intelligent driving systems expected to grow significantly, particularly in lower-priced vehicle segments [2] Group 2: Market Size and Growth - According to Frost & Sullivan, the global and Chinese ADAS SoC market sizes are projected to reach 275 billion and 141 billion yuan in 2023, respectively, with expected growth to 925 billion and 496 billion yuan by 2028, reflecting compound annual growth rates of 28% and 29% [2] - The ADS market (L3 to L5) is still in its early development stage, with expectations for the global ADS SoC market to reach 45.4 billion yuan by 2030 [2] Group 3: Competitive Landscape - NVIDIA holds a dominant position in the domestic intelligent driving assistance chip market with a 39% market share in 2024, while Horizon Robotics and Black Sesame Intelligence are expected to increase their market shares due to the trend of domestic substitution [3] - The intelligent driving chip industry is currently characterized by high investment, high growth, and low profitability, with companies generally operating at a loss, but scale effects are beginning to show, leading to a gradual narrowing of loss rates [3] Group 4: Investment Opportunities - The rapid increase in intelligent driving penetration is creating significant market space, leading to high growth in demand for intelligent driving chips, with opportunities for high-cost performance domestic chips [4] - Companies to watch include Horizon Robotics (09660), Black Sesame Intelligence (02533), NVIDIA (NVDA.US), Qualcomm (QCOM.US), XPeng Motors (09868), and Tesla (TSLA.US) [4]

Group 1: Macro Insights - The core CPI has risen for five consecutive months, reaching a 17-month high, with improvements in service prices and core goods like automobiles and household appliances [6][21] - PPI remains low, with a likelihood of narrowing declines in August due to the "anti-involution" price support effect, although external factors like weak exports and real estate continue to constrain it [6][21] - The report emphasizes the importance of monitoring economic fundamentals, particularly in export, consumption, and real estate sectors, as potential policy responses may emerge if conditions worsen [5][6] Group 2: Industry Performance - The steel sector has shown significant recovery, with companies like Liugang Co. (601003.SH) demonstrating strong profit growth due to effective cost control and increased production capacity [33] - The lithium market is expected to see price increases driven by supply disruptions and seasonal demand, with companies like Tianqi Lithium and Ganfeng Lithium highlighted as key players [35][37] - The construction materials sector is influenced by new real estate policies in Beijing, which may lead to increased demand for building materials, particularly in the context of improving second-hand housing transactions [40][42] Group 3: Investment Opportunities - Focus on companies benefiting from the shift towards solid-state battery materials, which are expected to see increased demand due to advancements in energy density and applications in emerging fields [43][44] - The report suggests that the 中欧中证 500 index is a valuable investment opportunity due to its low valuation and strong earnings expectations, making it suitable for index enhancement strategies [11][12] - Companies in the AI-driven B2B service sector, such as Focus Technology (002315.SZ), are projected to experience steady revenue growth, supported by the introduction of AI tools to enhance user experience [32]

Group 1: Semiconductor Industry Outlook - SEMI predicts global semiconductor manufacturing equipment sales will reach a record $125.5 billion by 2025, a year-on-year increase of 7.4% [1] - The semiconductor sector has shown strong market performance, with the Shenwan Semiconductor Index rising 9.63% from June 6 to July 25 [1] - The AI-related concept indices have seen significant growth, with the Wind Deepseek concept index up over 52% year-to-date and the AI computing power concept index rising nearly 25% [1] Group 2: Automotive Industry Performance - In June 2025, the retail sales of passenger cars in China reached 2.08 million units, a year-on-year increase of 18.1% and a month-on-month increase of 7.6% [4] - The wholesale share of domestic brands in passenger cars was 67.1%, up 2.2% year-on-year, while the retail share was 64.2%, up 5.6% year-on-year [5] - Overall inventory of passenger car manufacturers decreased by 150,000 units in June, indicating reduced inventory pressure [5] Group 3: AI and Server Demand - AI server demand remains strong, with six Taiwanese ODM manufacturers reporting a combined revenue of NT$582.3 billion in June, a year-on-year increase of 88% [6] - Companies in downstream sectors such as chatbots and AI programming are experiencing rising average revenue rates and daily active user numbers [6] Group 4: Semiconductor Sales Growth - The global semiconductor sales reached $58.98 billion in May 2025, a year-on-year increase of 27.03%, marking a historical monthly high [7] - The Semiconductor Industry Association (SIA) forecasts global semiconductor sales to grow by 11.2% and 8.5% in 2025 and 2026, respectively [7] - The growth in both advanced and mature processes is driving strong momentum in the semiconductor industry [7]

Core Insights - The rise of the robotics sector is significantly impacting the capital market, with companies like Weitex New Materials (688585.SH) experiencing stock price surges of over 900% after being acquired by Zhiyuan Robotics [1] - There is a notable talent migration from the autonomous driving industry to the robotics sector, driven by the latter's increasing attractiveness and investment opportunities [1][4] Talent Migration - Data from CAHRD indicates a substantial influx of talent into the R&D sectors of new energy and intelligent connected vehicles, with net inflow rates of 18.3% and 19% respectively for 2024 [1] - High-profile individuals from the autonomous driving sector, such as Gao Jiyang and Zhang Li, have transitioned to robotics companies, indicating a trend of experienced professionals seeking opportunities in the burgeoning robotics field [3] Investment Trends - The robotics sector has seen over 140 investment events from January to early July 2025, a significant increase compared to 77 events in 2024, highlighting a surge in funding and interest [4] - Companies originally focused on autonomous driving, such as Zhixing Technology and Horizon Robotics, are diversifying into robotics, with some even rebranding to reflect their new focus [6][7] Industry Dynamics - Major automotive companies, including Tesla and Geely, are entering the robotics market, with ambitions to evolve from traditional automotive manufacturing to robotics development [6][7] - The robotics industry is characterized by a faster pace of technological advancement compared to autonomous driving, with expectations for significant progress within six months [7][8] Challenges and Outlook - Despite the rapid influx of talent and capital, the robotics sector faces challenges in large-scale production and market readiness, particularly for general-purpose humanoid robots [8][9] - The industry is advised to maintain a sustainable growth approach, learning from the previous over-expansion in the autonomous driving sector [9]

Summary of Conference Call Notes Industry Overview - The discussion focuses on the advanced semiconductor manufacturing industry, particularly in relation to autonomous driving and robotics, and their impact on wafer fabrication capacity [1][2][5]. Key Points and Arguments 1. **Demand for Advanced Process Capacity** - The combined demand for autonomous driving and robotics is estimated at 1.65 million wafers per month, equivalent to the capacity of approximately 3.25 TSMC facilities. Domestic wafer fabs would need to increase their capacity by 37 times to meet this demand [1][5]. 2. **Comparison of Chip Types** - The die size of autonomous driving and robotics chips is similar to that of GPUs, leading to comparable capacity consumption. However, the market size for autonomous driving and robotics is significantly larger, indicating a greater demand for advanced process capacity [2][3][4]. 3. **NVIDIA's Cost Structure** - In NVIDIA's data center business, the value allocated to wafer foundry services is very low, accounting for only 2.25% of sales. The breakdown shows that HBM contributes 7.25% and packaging costs account for 5.5% [6][10]. 4. **Future Capacity Needs** - The future demand for advanced process capacity from autonomous driving and robotics is expected to surpass that of AI GPUs. As penetration rates increase, the demand for chips in these sectors could grow significantly, potentially exceeding tenfold [3][17][20]. 5. **Challenges for Domestic Foundries** - Domestic advanced foundries face challenges in producing high-end chips due to a lack of EUV lithography machines, leading to lower yields compared to TSMC. For instance, TSMC achieves a 50% yield with single exposure, while domestic foundries using multiple exposures see significantly reduced yields [15][16]. 6. **Market Dynamics** - The structure of customers for advanced process foundries is expected to change as the demand from autonomous driving and robotics increases. This shift will require more resources to be allocated to these emerging fields [7][22]. 7. **Investment Considerations** - Investors should focus on the expansion plans of advanced process foundries, as the demand for wafer consumption is expected to rise significantly. Companies like TSMC and SMIC, which have linear growth expansion plans, should be prioritized [23]. Additional Important Insights - The potential for robots to consume wafer capacity is substantial, with predictions suggesting a global demand for 1.51 million wafers for robotics by 2040, far exceeding the demand for autonomous driving chips [20]. - The trend of "one car, multiple chips" is becoming common in new vehicle designs, indicating a growing need for more advanced chips in automotive applications [18]. - The current consumption of wafer capacity is dominated by smartphones, computers, and tablets, but this is expected to shift as autonomous driving and robotics gain traction [21][22].