Smart cockpit chip inherits the advantages of smart phone chip and has significant market position advantage. Since the launch of the first generation Xiaolong 620A in 2014, Qualcomm has released four generations of intelligent cockpit chips, and the chip process has been upgraded from 28nm to 5nm. The new force models with intelligence as the main selling point are equipped with Qualcomm in a very high proportion. Weilai ec6, ES6, es8, et7, Xiaopeng g3i, P7, P5 and ideal one are equipped with Qualcomm intelligent cockpit chip. The new force models continue to take Qualcomm intelligent cockpit chip as the first choice, reflecting Qualcomm’s strong competitive strength in the field of intelligent cockpit. Compared with smart phone chips and smart cockpit chips, the similarities lie in the highly consistent demand for communication, entertainment and HD display. The difference lies in the more fierce competition in the consumer electronics industry, faster product iteration speed and more advanced product manufacturing process. Qualcomm inherits the competitive advantages of smart phone chips, reduces the dimension and attacks smart cockpit chips, so as to form a greater competitive advantage. We believe that Qualcomm has a solid leading position in the field of intelligent cockpit. It is expected that the new generation of products are expected to add more customized functions in the automotive field and further increase investment in the automotive field.
Qualcomm’s entry into intelligent driving chips intensifies industry competition and promotes the accelerated development of automotive intelligence. In January 2020, Qualcomm released its new self driving platform snapdragonride, which is expected to be used in self driving mass production vehicles in 2024. Unlike the smart cockpit chip, which is highly dependent on the smart phone chip for development, the smart driving chip is an exclusive product for customized development of cars. The decision to enter the automatic driving industry marks that Qualcomm regards smart cars as an important track with the same status as smart phones. It is expected that the follow-up investment is expected to continue to increase. Qualcomm’s competitors in the field of intelligent driving chips are mainly NVIDIA Orin and Intel Mobileye. As Qualcomm increases its investment in the field of intelligent driving, the industry competition tends to be fierce. We believe that chip giants have entered the smart driving track, which shows that on the one hand, the demand for consumer electronics is weak, on the other hand, smart cars are booming, on the most important hand, smart cars are in the ascendant. Although the industry has developed for more than ten years, it is still in the early stage, and later people also have the opportunity to surpass. The fierce competition of intelligent driving chips is expected to accelerate the improvement of intelligent driving technology, so as to accelerate the reform of intelligent driving industry.
Investment advice: in the context of the fierce competition in the chip industry and the accelerated iteration of technology, we suggest to continue to pay attention to the relevant opportunities brought by the promotion process of smart cars beyond expectations: 1) the smart cockpit sector suggests to pay attention to the leading companies that have a close cooperative relationship with Qualcomm and launch the overall solution of smart cockpit based on Qualcomm chips, and it is suggested to pay attention to the vehicle screen supplier Haxc Holdings (Beijing) Co.Ltd(300928) ; 2) For the intelligent driving segment, it is recommended to pay attention to the target of the lidar industry chain that benefits from the increased demand for lidar, such as torch technology, Ningbo Yong Xin Optics Co.Ltd(603297) , Zhejiang Crystal-Optech Co.Ltd(002273) , Changguang Huaxin, Suzhou Tfc Optical Communication Co.Ltd(300394) etc.; it is recommended to pay attention to Electric Connector Technology Co.Ltd(300679) , Wenzhou Yihua Connector Co.Ltd(002897) , which has the first mover advantage of high-speed connectors, and it is recommended to pay attention to the overall solution of intelligent driving, business Jingwei Hengrun.
Risk tip: the macroeconomic situation is less than expected, the sales volume of intelligent vehicles is less than expected, the iteration of intelligent driving technology is less than expected, and the technological progress of Chinese manufacturers is less than expected
