Loongson Technology(SH:688047)2024-05-16 08:36Group 1: Transformation Goals - The primary goal of Longxin's transformation is to reduce reliance on policy-based markets and shift towards open markets [1][3] - The transformation aims to convert self-developed capabilities into cost-effectiveness and software ecosystem advantages in policy-based markets [3][4] - Longxin's transformation includes three specific measures: enhancing single-core performance, improving system cost-effectiveness, and focusing on the integration of operating systems with applications [3][4] Group 2: Development Stages and Challenges - Longxin's development is likened to the historical phases of the Chinese Communist Party, indicating a significant period of growth followed by challenges [3][4] - The company is currently facing intense competition from X86 and ARM architectures, leading to a 1-2 year period of difficulties [3][4] - The completion of the three-year transformation (2022-2024) is expected to usher in a phase of rapid development [3][4] Group 3: Research and Development - Longxin aims to establish an independent information technology system distinct from X86 and ARM, a process projected to take over 30 years [4] - The company has made significant advancements in GPU technology, focusing on AI capabilities and the development of a series of GPGPU chips [4][5] - Longxin's second-generation GPU core, LG200, will be applied in the upcoming 2K3000 chip, supporting graphics acceleration and AI [4][5] Group 4: Market Strategy - Longxin is optimizing its marketing strategy by developing chip channels and forming benefit-sharing communities [4] - The company is implementing flexible pricing strategies to cater to different customer needs [4] - Longxin's marketing efforts also include supporting traditional and new system enterprises [4] Group 5: Software Ecosystem - Longxin's software ecosystem has seen significant improvements, with a focus on basic applications and operating systems [5] - The company is working to enhance the compatibility of complex industry applications with its architecture [5] - Recent advancements in binary translation technology have reduced the number of applications that cannot run on Longxin's platform [5]