The State Council issued the 14th five year plan for the development of digital economy, which is the first national special plan in the field of digital economy in China. According to the white paper on the development of China's digital economy (2021) released by the Chinese Academy of information and communications, the scale of China's digital economy has ranked second in the world for many consecutive years, reaching 39.2 trillion yuan in 2020, accounting for 38.6% of GDP. The core industries of digital economy include: ① all sub categories of "computer, communication and other electronic equipment manufacturing"; ② Mechanical and electrical equipment manufacturing (including some sub categories of "electrical machinery and equipment manufacturing industry"); ③ Electronic equipment manufacturing (including some sub categories of "instrument manufacturing industry"); ④ All sub categories of "telecommunications, radio and television and satellite transmission services"; ⑤ Internet services (including all sub categories of "Internet and related services"; ⑥ All sub categories of "software and information technology services"; ⑦ Cultural digital content services (including all sub categories of "radio, television, film and recording production industry"). According to the "14th five year plan" for the development of digital economy, in 2020, the added value of China's core industries of digital economy will account for 7.8% of GDP, corresponding to about 8 trillion. The digital economy provides a strong driving force for the sustained and healthy development of economy and society. China will further promote the development of digital economy during the "14th five year plan" (2021-2025). By 2025, the digital economy should enter a comprehensive expansion mode. In the digital economy, the added value of core industries will account for 10% of GDP, the number of IPv6 active users will reach 800 million, the number of Gigabit broadband users will reach 60 million, and the application penetration rate of industrial Internet platform will reach 45%, The scale of e-commerce transactions reached 46 trillion yuan. In addition, the plan details key tasks in eight areas, including optimizing and upgrading digital infrastructure, promoting the digital transformation of enterprises and expanding international cooperation in the digital economy.
Many places have issued development plans related to the digital economy. At the press conference on Beijing's economic operation in 2021, Beijing released the annual digital economy data for the first time. In 2021, Beijing's digital economy realized an added value of 1625.19 billion yuan, with a year-on-year increase of 13.1% at current prices, accounting for 40.4% of the city's regional GDP and a year-on-year increase of 0.4%. Among them, the added value of the core industries of digital economy was 891.81 billion yuan, an increase of 16.4%, accounting for 22.1% of the regional GDP, an increase of 0.8%. Shanghai issued several policies and measures for expanding effective investment and stabilizing economic development in Shanghai in 2022, which proposed to promote urban digital transformation. Support policy banks, development financial institutions and commercial banks to establish special preferential interest rate credit projects for "new infrastructure" with a scale of more than 100 billion yuan, promote the implementation of interest discount policies for new infrastructure construction projects, appropriately extend the implementation period of the policies, and guide social capital to increase investment in "new infrastructure". Accelerate the layout and implementation of a number of major demonstration projects of new infrastructure in future hospitals, intelligent factories and other fields, and step up the research and layout of interactive platforms between virtual world and real society in the future. Shandong has issued three new financial reward and subsidy policies to support the development of digital economy, and implemented the reward and subsidy policy for the construction of industrial Internet identification analysis node, the reward and subsidy policy for comprehensive evaluation of industrial Internet Industrial Park and the financial incentive policy for data center quality improvement and incremental action.
As an emerging form of Internet, yuancosmos needs high computing power and high bandwidth to contribute to the digital economy. 5g network provides basic communication, and cloud storage, cloud computing and cloud rendering provide computing power. These technologies have become the cornerstone of building a meta universe. The construction of the metauniverse requires a lot of simulation and real rendering. In a completely virtual social environment, 1) avatars, realistic clothing, hair and skin color are required, which need to be rendered in real time based on sensor data capturing real-world 3D objects, gestures, audio, etc; 2) Need to transmit data with ultra-high bandwidth and very low delay; 3) A persistence model of the environment is required, which may contain both real and simulated elements. The demand for computing power put forward by new 3D terminals such as high-precision real-time rendering, persistent environment model and AR / AR will rise exponentially compared with today's Internet.
In terms of computing power: a number of chip manufacturers have arranged meta universe related products, and computing power construction has been officially incorporated into the national new infrastructure development and construction system, which is one of the key tasks in the 14th Five Year Plan period. According to Intel estimates, the Web3 metauniverse project will eventually require at least 1000 times the computing power we now have to access with lower latency in a variety of device shape specifications. In order to enable these functions on a large scale, the entire Internet pipeline will need a major upgrade. Correspondingly, a number of chip manufacturers layout meta universe related products. On November 9, 2021, NVIDIA held the gtc2021 conference and released the virtual world simulation and collaboration platform NVIDIA omniversefor3d, so that creators can collaborate in real time in physical accurate simulation or 3D rendering. The Omniverse platform has two systems: Omniverse avatar and Omniverse replicator. Among them, Omniverse avatar is a technical platform for generating interactive AI avatars. It brings together NVIDIA's accumulated technologies in voice AI, computer vision, natural language understanding, recommendation engine and simulation technology, and lays the foundation for creating artificial intelligence assistants that can handle billions of daily customer service interactions. Omniverse replicator is a synthetic data generation engine, which can continuously generate synthetic data based on existing data for training. BMW Group has used Omniverse to design the end-to-end digital twin of the whole plant. Carmakers, multinational networks and telecommunications company Ericsson use Omniverse to simulate the propagation of 5g wave in real time, so as to minimize multipath interference in dense urban environment. For Intel, in the cloud and data center, Intel Xeon processor is optimized for minimum transaction delay and maximum throughput. Intel's edge processor, infrastructure processing unit, field programmable gate array and 5g solution bridge the gap from cloud to edge and meet the needs of large-scale distributed computing metauniverse. Intel will release Intel arc for gaming and authoring in 2022 ™ Alchemistgpu and Ponte Vecchio for accelerating high-performance computing and visualization are designed to accelerate and render a rich immersive experience that extends from the client to the server. For AMD, the company has cooperated with meta to develop a high-performance and energy-efficient processor based on the third-generation epyc processor, which will be used by meta to help run the data center. At present, the construction of computing power has been officially incorporated into the national new infrastructure development and construction system. The "14th five year plan" for the development of information and communication industry puts forward that the improvement of computing power is one of the key tasks during the 14th Five Year Plan period. "In terms of the improvement of computing power, the service capacity of computing facilities should be significantly enhanced".
Bandwidth: gigabit optical fiber network leads the comprehensive upgrading of communication network infrastructure. The 2021 government work report clearly requires that "we should strengthen the construction of 5g network and gigabit optical network and enrich application scenarios". On March 25, 2021, the Ministry of industry and information technology issued the action plan for the coordinated development of "dual Gigabit" networks (2021-2023), which formulated that by the end of 2021, gigabit optical fiber network has the capacity to cover 200 million households, the scale of 10 gigabit passive optical network (10g-pon) and above ports has exceeded 5 million, and the number of Gigabit broadband users has exceeded 10 million; By the end of 2023, gigabit optical fiber network has the ability to cover 400 million households, with more than 10 million ports of 10g-pon and above, and the specific goal of Gigabit broadband users exceeding 30 million households.
In November 2021, the Ministry of industry and information technology issued the development plan of information and communication industry in the 14th five year plan. According to the plan, the full deployment of gigabit optical fiber network is one of the development priorities. We should speed up the deployment of gigabit optical fiber network, enrich gigabit optical fiber application scenarios, and carry out the monitoring and evaluation of gigabit network capacity and user experience. By 2025, the number of Gigabit broadband users in China will reach 60 million, with a compound annual growth rate of 56% compared with 2020. Sichuan Tianyi Comheart Telecom Co.Ltd(300504) since its establishment, focusing on the development of optical communication and wireless communication technology, the company has developed xgpon, symmetrical xgspon and 10gepon products in the field of broadband network terminals; At the same time, in the first half of 2021, in line with the needs of customers and based on rich experience in terminal product R & D, we have created a comprehensive WiFi 6 routing solution, mass produced ax1800 series products, and delivered them to the three major operators in batches. At the same time, high-speed products such as ax3000 and ax5400 have also completed R & D, and the scale of product R & D and sales ranks at the upstream level of the industry.
It is suggested to pay attention to: the value transmission of the meta universe in the two directions of computing power and bandwidth, 1) computing power direction: semiconductor, cloud computing / edge computing, IDC, etc., 2) bandwidth direction: 5g / 6G network communication, main equipment, optical module, etc.
Risk tip: the development of meta universe is less than expected, the risk of policy change, and the deployment of Gigabit broadband is less than expected
