Investment Rating - The report maintains an investment rating of "Outperform" for the automotive SoC industry, indicating a positive outlook for growth in this sector [2]. Core Insights - The automotive SoC market is experiencing a significant transformation driven by the acceleration of smart driving capabilities and the push for domestic production in the chip ecosystem [1][6]. - The global smart device SoC market is projected to grow from $41.9 billion in 2020 to $65.7 billion by 2024, with a compound annual growth rate (CAGR) of 11.9% [6][48]. - The demand for automotive SoCs is entering a high-certainty growth phase, supported by the increasing integration of AI and smart automotive technologies [6][7]. Summary by Sections 1. Industry Upgrade and Demand Expansion - The evolution of E/E architecture is shifting from distributed systems to centralized computing platforms, enhancing the role of SoCs as core computational units [15][16]. - The global smart automotive sales are expected to rise from 41.2 million units in 2020 to 65.7 million units by 2024, reflecting a CAGR of 12.4% [48]. - The integration of multi-domain functionalities in automotive SoCs is becoming mainstream, with significant advancements in performance and efficiency [62][63]. 2. Technological Advancements and Collaboration - The report highlights the importance of heterogeneous computing in advancing automotive SoC capabilities, with a focus on integrating CPU, GPU, NPU, and DSP [6][25]. - Companies like Horizon Robotics and Black Sesame Intelligence are making strides in the domestic SoC market, enhancing their competitive edge in high-level smart driving applications [7][38]. 3. Domestic Production and Market Dynamics - The domestic production of automotive SoCs is gaining momentum, with local companies like Horizon Robotics and Allwinner Technology showing promising growth trajectories [7][54]. - The report emphasizes the increasing market share of domestic SoC manufacturers, which is projected to exceed 10% by 2024 [54]. 4. Investment Recommendations - The report suggests focusing on investment opportunities within the domestic automotive SoC supply chain, particularly in companies like Black Sesame Intelligence, Horizon Robotics, and Allwinner Technology [7].