Core Insights - OpenAI has launched its smallest open-source model, gpt-oss-20b, which performs comparably to the OpenAI o3mini model on common benchmark tests [1] - Qualcomm announced that gpt-oss-20b is the first open-source inference model from OpenAI that can run on devices powered by the Snapdragon platform [1] Group 1 - Qualcomm believes this breakthrough marks a pivotal turning point, indicating that the future of AI development will involve rich, complex assistant-style reasoning being executed locally [2] - The gpt-oss-20b model enhances the ability of endpoint devices to utilize local reasoning, showcasing advantages in privacy protection and latency [2] - Developers can access the gpt-oss-20b model through mainstream platforms like Hugging Face and Ollama, and its deployment details will be announced on the Qualcomm AI Hub [2] Group 2 - The integration of Ollama's lightweight open-source LLM service framework with the powerful Snapdragon platform allows developers and enterprises to run the gpt-oss-20b model directly on Snapdragon-powered devices [2] - Users can also explore additional functionalities of the model, such as web search capabilities, without requiring extra configuration [2] - The model has 20 billion parameters and has demonstrated excellent performance in complex reasoning tasks on the endpoint [1][2]

Core Viewpoint - The 2025 ChinaJoy and the China International Digital Entertainment Industry Conference (CDEC) highlight the advancements in the digital entertainment industry, with Qualcomm showcasing its technological innovations and ecosystem development in mobile gaming and AI integration [1][3]. Group 1: Technological Innovations - Qualcomm's Snapdragon 8 Gen 2 mobile platform features over 40% improvements in CPU, GPU, and NPU performance, enhancing mobile gaming and multitasking capabilities [3]. - The platform supports over 180 terminal designs from brands like Honor, OPPO, vivo, and Xiaomi, providing top-tier experiences in mobile gaming, social media, and multimedia [3]. - The integration of the seventh-generation Snapdragon Elite Gaming suite brings PC-level gaming experiences to mobile devices, improving graphics and frame rates [3]. Group 2: AI and 5G Integration - Qualcomm is actively promoting the deployment of generative AI on the device side, exemplified by the Xiaomi AI glasses that utilize Qualcomm chips for real-time AI interactions [5]. - The Snapdragon AR1+ platform has been reduced in size by 26% and offers lower power consumption, supporting small language models for AI smart glasses [5]. - The acceleration of 5G-A network commercialization, combined with AI and spatial computing, opens new possibilities for digital entertainment [5]. Group 3: Ecosystem Development - Qualcomm has built a comprehensive digital entertainment ecosystem across multiple devices, including smartphones, PCs, XR, and automotive applications [6]. - Over 30 flagship Android smartphones based on the Snapdragon 8 Gen 2 and fourth-generation Snapdragon 8s platforms were showcased, enhancing user experiences [6]. - The collaboration with 75 partners resulted in over 100 terminal demonstrations and more than 50 multi-terminal game titles, showcasing the strength of Qualcomm's ecosystem [6]. Group 4: Interactive Experiences - The Snapdragon theme pavilion at ChinaJoy features multi-dimensional interactive scenarios, including the upgraded "Snapdragon XR Fantasy Journey" that offers ultra-8K resolution and low-latency immersive experiences [7]. - Online and offline engagement strategies, such as social media campaigns and promotional events, have attracted significant user participation [7]. - Qualcomm aims to innovate and collaborate with partners to create a new chapter in digital entertainment and consumption [7].

Core Insights - Qualcomm is accelerating the deployment of AI capabilities across various terminals, leveraging innovation and market opportunities to deepen industry collaboration and drive technological innovation [1] Group 1: Qualcomm's Commitment to China - 2025 marks an important milestone as Qualcomm celebrates 30 years in China, emphasizing its role as a leading player in global connectivity and computing [2] - Qualcomm provides essential chip solutions such as modems, processors, and RF front-end modules, facilitating innovation in smart terminals, automotive, and IoT sectors [2] - The company highlights the importance of open collaboration in the industry, positioning China as a significant source of global innovation [2] Group 2: AI Deployment and Product Showcase - Qualcomm is partnering with various Chinese ecosystem partners to deploy AI applications on a wide range of devices, including smartphones, automobiles, XR headsets, PCs, and industrial IoT terminals [2] - At the expo, Qualcomm showcased four XR terminal products from companies like Xiaomi and PICO, including the newly launched Xiaomi AI smart glasses and PICO 4 Ultra [2] Group 3: Global Market Adaptation - Qualcomm's support for Chinese clients enables rapid adaptation of products to global markets, with Chinese brands occupying eight of the top ten global smartphone positions [3] Group 4: Industry Collaboration and Innovation - The key to Qualcomm's success in China is "deepening collaboration," which has proven essential for industry upgrades [4] - Qualcomm has displayed a range of Snapdragon-enabled smart terminals at the expo, including flagship smartphones from Chinese brands, showcasing over 100 product designs supporting diverse AI applications [4] - The company has expanded its manufacturing capabilities in Wuxi to meet the growing demand in the 5G sector and established joint innovation centers in collaboration with local governments [4] Group 5: Automotive Sector Transformation - Qualcomm's Snapdragon digital chassis solutions are transforming vehicles from mechanical products to intelligent mobile terminals, supporting over 210 models from various Chinese automotive brands since 2023 [5] - The Li Auto MEGA, featuring the fourth-generation Snapdragon cockpit platform, was highlighted for its advanced graphics processing and local AI capabilities, enhancing user interaction within the vehicle [5]

Investment Rating - The industry is rated as "Outperforming the Market - A" with a maintained rating [6]. Core Insights - TSMC reported a significant revenue increase in May, driven by strong AI demand, with sales reaching NT$320.52 billion (approximately US$10.7 billion), a year-on-year increase of 39.6% [1]. - Micron Technology's HBM market potential is expected to exceed US$35 billion in 2025, with a projected growth to US$100 billion by 2030 [2]. - The semiconductor industry is experiencing a robust demand due to AI data center construction and early inventory stocking, with the top ten IC design firms reporting a 6% quarter-on-quarter revenue increase [19]. Summary by Sections Industry Performance - The electronic sector saw a decline of 1.92% in the week from June 9 to June 15, 2025, ranking 27th out of 31 sectors [31]. - The PE ratio for the electronic index is 49.32, with a 10-year percentile of 64.71% [42]. Market Trends - The semiconductor market share for TSMC increased to 67.6% in Q1 2025, solidifying its leading position [1]. - The global smartphone production in Q1 2025 was 289 million units, showing a slight year-on-year decline of 3% [25]. Investment Recommendations - Suggested stocks in the computing power supply chain include Shenghong Technology, Huidian Co., and Industrial Fulian [12]. - In the storage industry, recommended stocks include Zhaoyi Innovation and Jiangbolong [12].

Core Viewpoint - Qualcomm Technologies, Inc. and Xiaomi celebrate their 15-year partnership and sign a multi-year agreement to drive innovation in the tech industry, focusing on high-end smartphones and various connected devices [1][2]. Group 1: Partnership Highlights - The collaboration has been pivotal in Xiaomi's growth from a startup to a global tech leader, with Qualcomm being a trusted partner throughout this journey [1]. - Both companies aim to enhance the integration of artificial intelligence in edge devices, including smartphones, cars, AR/VR glasses, wearables, and tablets [2]. Group 2: Product Innovations - Qualcomm's Snapdragon platform has supported millions of Xiaomi products, contributing to Xiaomi becoming the third-largest smartphone brand globally [2]. - Xiaomi's recent launch of the Xiaomi 15 series, powered by the Snapdragon 8 Gen 1 chip, has achieved significant commercial success [2]. - In the automotive sector, Xiaomi's first car, the SU7, utilizes Qualcomm's next-generation Snapdragon digital cockpit platform for an advanced in-car experience [2]. Group 3: Expanding Product Categories - Qualcomm's Wi-Fi solutions, including the latest Wi-Fi 7 technology, enable Xiaomi to deliver faster and more reliable connectivity in its smart home products [3]. - The collaboration extends to wearables, with several commercial headphones and smartwatches featuring Snapdragon platforms, such as the Xiaomi Buds 5 Pro and Xiaomi Watch 2 Pro [3].