Huibo Investment Research recently released a research report to comment on the SoC industry, the main contents of which include: In the rapid development of digitalization and intelligence, system-on-chip (SoC) has become a key force to promote scientific and technological progress and is widely used in many fields. The report provides an in-depth look at the industry across multiple dimensions.

SoC is an integrated circuit that integrates a computing processor and other electronic systems into a single chip, which can process a variety of signals and is commonly used in embedded systems. Compared with microcontroller chips (MCUs), SoCs have high integration, low power consumption, and high cost, making them suitable for high-end electronic devices. Its core components are diverse, such as CPU, GPU, communication module and other IP cores play a key role in it. Different CPU instruction sets, such as the complex instruction set CISC, the reduced instruction set RISC, and the open-source RISC-V, have their own characteristics.

SoCs are widely used, involving mobile devices, Internet of Things, automobiles and other fields, and their performance requirements vary significantly in different fields. SoC chips on the market are divided into high-end, sub-high-end, special-purpose, etc., among which high-end SoC chips often use 5nm process and are used for products with high performance requirements such as smartphones; The sub-high-end process is from 16nm to 55nm, which is used in security and other fields; Specialized models are used for specific devices, and process and clock frequencies vary from device to device. However, SoC chip design faces challenges in manufacturing, packaging, and testing.

From the perspective of driving factors, edge AI is developing rapidly, hybrid AI has become the future trend, and AISoC helps the intelligent upgrade of terminal products, and the application of AISoC on the edge side is becoming more and more extensive. In terms of market, many well-known chip manufacturers around the world are actively deploying the SoC market. Qualcomm is the world's leading smartphone SoC, and MediaTek's Dimensity series integrates a variety of functional units to provide powerful AI capabilities for mobile devices. Domestic Hengxuan and Jingchen have entered the 6nm stage, and many manufacturers are actively deploying in the consumer field. The global SoC market continues to grow from $154.8 billion in 2022 to $327.8 billion in 2032, with a compound annual growth rate (CAGR) of 8% from 2022 to 2032.

In the field of terminal applications, SoCs have a wide range of important applications.

In terms of smart homes, SoCs are driving smart devices, and the global smart home market is expected to grow from $126.1 billion in 2022 to $207.8 billion in 2026.

In the field of smart cars, the intelligent electrification of automobiles has made automotive SoC chips a mainstream trend. In 2023, the global automotive chip market will be about 355 billion yuan, and it is expected to exceed 600 billion yuan by 2030. The global and Chinese ADASSoC markets will reach RMB27.5 billion and RMB14.1 billion respectively in 2023, and are expected to reach RMB92.5 billion and RMB49.6 billion respectively by 2028. The global ADSSoC market is expected to reach 8.1 billion yuan by 2026 and 45.4 billion yuan by 2030, with China expected to be the largest market.

It is expected that 16% of global smartphone shipments in 2024 will be AI mobile phones, 28% in 2025, the penetration rate will increase to 54% in 2028, and the average annual compound growth rate of the AI mobile phone market will reach 63% from 2023 to 2028.

In terms of AI earphones, the AI model empowers TWS earphones to add a variety of functions, and puts forward new requirements for device-side hardware and SoC in terms of low power consumption and lightweight NPU computing power.

The AI toy market is growing rapidly, and the global AI toy market is expected to grow from about $8.7 billion in 2022 to $35.11 billion in 2030, with a compound annual growth rate of more than 16%. AI glasses are powerful, and many manufacturers provide SoC chip solutions, which account for a relatively high proportion of the BOM cost of AI glasses, and the market size is expected to continue to grow.

The report also profiles the companies involved. Hengxuan Technology (688608) is a leading company in the domestic brand TWS earphone SoC, with a record performance in 2024 and continuous development in the field of smart wearables and smart homes. Rockchip (603893) leads the domestic AIoTSoC market, and its flagship products drive performance growth. Espressif Systems (688018) enters the AIoT market as a leader in WiFi MCUs. Arcjet Technology (688220) has made a comprehensive layout in the chip market and has made progress in many fields. Torch Core Technology (688049) released the first generation of AI audio chips. Zhongke Lanxun (688332) has outstanding performance in the field of wireless audio SoC, and its BT895X platform is connected to the bean bag model. Allwinner Technology (300458) keeps up with the trend of AI, and its new products are accelerating the implementation in many fields. Amlogic (688099) is a leader in SoC chips in multiple application fields.

Looking to the future, SoC chips will continue to explore the boundaries of integration, such as integrated quantum computing units; Pursue green energy saving and reduce power consumption; Expand the application field and play an important role in more industries with the integration of cutting-edge technologies.