Several consumer electronics producers made their debut at the Shanghai Auto Show, as the automotive business is entering a period of returns.

"This is our first time participating in the Shanghai Auto Show." Tian Feng, head of vehicle business at XGIMI Technology (688696.SH), revealed to Cailian Press at the Shanghai Auto Show that the company had several定点项目在3月份、4月份量产，近期车载的生产基地一直在忙交付。

As the vehicle business began to scale up, more and more traditional consumer electronics industry chain producers appeared at the Shanghai Auto Show. In addition to XGIMI Technology, companies such as Jiangbo Long (301308.SZ), Shenzhen Tianma A (000050.SZ), Sunwoda (300207.SZ), iFlytek (002230.SZ), and Huaqin Technology (603296.SH), which previously mainly supplied consumer electronics brands, have now acquired a new growth engine in the vehicle business. "Indeed, there are more consumer electronics industry chain producers this year, and it's also our first time entering the main exhibition hall," a staff member at the iFlytek booth told Cailian Press.

At the Shanghai Auto Show, Cailian Press learned through multiple interviews that companies that aggressively entered the automotive-grade parts market from 2020 to 2021 have mostly started shipping in 2023-2024, with rapid business growth, but compared to their original businesses, the current revenue share remains relatively small. Due to closer cooperation between upstream and downstream players in the industry chain, the validation of automotive-grade parts has also accelerated. "Traditional part validation indeed takes 2-3 years, but many are now shortened to 9-18 months," a staff member at the Huaqin Technology booth told Cailian Press. Additionally, as competition in the vehicle business intensifies, analysts believe that embodied intelligence may become an opportunity for related companies to achieve new growth.

Consumer Electronics Industry Chain Companies Make Their First Collective Appearance at the Auto Show

Cailian Press found that the auto show has become an important platform for traditional consumer electronics manufacturers to expand their industry presence.

Storage chip supplier Jiangbo Long and SOC chip supplier Rockchip (603893.SH), among other companies that previously focused on consumer electronics, told Cailian Press that this was the first time they set up independent booths at the Shanghai Auto Show. Battery supplier Sunwoda, known for its "Apple supply chain," said this was the first time the company entered the main exhibition hall...

A few years ago, due to the rise of domestic NEVs and the stagnation of growth in traditional consumer electronics like smartphones, entering the NEV market became an important way for consumer electronics industry chain companies to seek incremental growth.

Tao Yang, a senior analyst at Sigmaintell's semiconductor division, told Cailian Press that traditional consumer electronics component manufacturers have strong advantages in entering the automotive electronics market. On one hand, these companies typically have large production scales and mature processes, allowing them to reduce production costs through economies of scale; on the other hand, these companies have accumulated rich cost control experience in long-term market competition, enabling them to optimize costs while ensuring product quality.

From the exhibits at this auto show, most products from industry chain companies have already achieved large-scale application, with many entering Tier 1 supply chains. Currently, the development stage of the industry chain is moving from "entering the vehicle market" to "enriching the product matrix" at a higher level.

Wang Zuopeng, director of the automotive market at Jiangbo Long, told Cailian Press at the auto show that the company officially launched its automotive-grade eMMC product in 2020 and then began seeking continuous cooperation with automakers and Tier 1 suppliers. Over the past few years, the company's products have covered major areas such as eMMC, UFS, SD&SSD. At this auto show, the company also introduced its automotive-grade LPDDR4x. "Currently, not many companies can produce automotive-grade LPDDR4x, so the launch of this product is a breakthrough for us."

(Parameters of Jiangbo Long's automotive-grade LPDDR4x, photo by Cailian Press)

Shenzhen Tianma A is one of the earliest display manufacturers to enter the automotive-grade field in China. In recent years, the rise of automotive intelligence has greatly benefited the company. At this auto show, Shenzhen Tianma A released two innovative products: the CMS electronic rearview mirror system and the OLED Xuanyuan curved cockpit display, further enriching its product matrix. The company also showcased its leading MicroLED HUD display product. According to the company's staff, the product is currently in concept innovation with some automakers, and it may take until after 2028 to be installed in vehicles.

(Shenzhen Tianma A's exhibited MicroLED HUD, photo by Cailian Press)

Domestic SOC chip manufacturer Rockchip showcased products in four core areas: smart cockpits, automotive audio, automotive vision, and AI technology. A staff member at the Rockchip booth told Cailian Press that the company's previous automotive-grade products were mainly for aftermarket use, and front-end chips like in-vehicle main control chips have been installed in vehicles for about two to three years. "This year, we will also launch a computing power chip for automotive-grade use. Currently, the market is still dominated by overseas manufacturers, and the specific installation time depends on the automaker's schedule."

Tao Yang told Cailian Press that among the products of domestic consumer electronics industry chain companies, displays, smart cockpit chips, storage chips, and precision structural components have made faster progress in entering the vehicle market, while some high-end analog chips and power management chips are progressing more slowly.

In addition to the demand brought by "localisation," some emerging market demands have also provided opportunities for traditional consumer electronics industry chain companies.

For example, in-vehicle projection products. At this auto show, XGIMI Technology exhibited three products: multi-projection cockpit, panoramic roof projection, and side window projection. Tian Feng told Cailian Press that the company officially entered the in-vehicle projection market in 2024 and currently has eight定点项目，预计车载业务将在今年上半年带来营收。“相较于传统显示产品，车载投影具有占地面积小、投影面积大、对投影产品材质要求小等优势。”

A staff member at the iFlytek booth told Cailian Press that the company had previously supplied voice recognition functions for cars, but with the rise of large models, starting from H2 2023, the Spark large model began to be installed in vehicles. It has been implemented in 16 mass-produced car models from Chery, GAC, Great Wall, Changan, Volkswagen, JAC, FAW, and Nissan, marking the entry into a dense mass production phase. "This is our first time entering the main exhibition hall," a staff member at the iFlytek booth said.

Vehicle Business Enters the "Return Period" Industry Chain Begins Exploring New Possibilities

"It took Jiangbo Long three years to get a meeting with an automaker," Wang Zuopeng told Cailian Press. "Entering the automotive-grade storage market is really difficult, but fortunately, we succeeded. Now, with a foundation of cooperation and trust, product validation is much faster."

During the auto show, several interviewees told Cailian Press that the validation time for automotive parts, which was previously known for being long, is now shortening.

Tao Yang stated that there are two main reasons behind this. First, the cooperation between upstream and downstream players in the automotive industry chain has become closer, with automakers getting involved in the R&D process of parts earlier, reducing the extended validation and repair cycles caused by compatibility issues later on. Second, the rapid development of intelligent vehicles has led to a sharp increase in the demand for automotive-grade parts, and companies are trying to shorten the validation time to capture market share.

"However, shortening the time does not mean there will be safety risks, as the automotive standards themselves have not been lowered. The requirements for reliability and safety remain strict. During the process of shortening the validation time, companies will strengthen R&D investment, optimize processes, and improve quality control to ensure that products meet automotive-grade standards," Tao Yang said.

With the large-scale introduction of automotive-grade products and the shortened industry validation period, the vehicle business has become an important growth driver for parts manufacturers.

According to the official account of Shenzhen Tianma A, in 2024, the company's automotive electronics business for international top-tier automakers achieved large-scale delivery, with a rapid increase in the share of the new energy market. At the same time, the share of Tier 1 customers also steadily increased, collectively driving the revenue of Tianma's in-vehicle display business to grow over 40% YoY. Traditional acoustics manufacturer Goertek (002655.SZ) saw outstanding performance in its automotive and industrial applications business in 2024, with revenue of 613 million yuan, accounting for 50.72%, up 26.87% YoY. Traditional optics manufacturer OFILM (002456.SZ) achieved revenue of 2.4 billion yuan in its smart car business in 2024, up 25.73% YoY.

Notably, in the past two years, due to the slowdown in the growth of the new energy automotive industry and intensified competition, the growth rate of some parts manufacturers' vehicle business has also slowed down.

Several interviewees believe that domestic manufacturers need to further enhance the competitiveness and irreplaceability of their products, such as seeking breakthroughs in areas with low localisation. Currently, the advanced process field required for high-computing-power automotive-grade chips is still dominated by non-mainland manufacturers. According to Sigmaintell data, TSMC's share in the automotive-grade ADAS chip foundry market in 2024 exceeds 90%.

Tao Yang believes that in this regard, domestic equipment manufacturers can seek breakthroughs by increasing R&D investment in key equipment such as photolithography machines and etching machines. Additionally, joint R&D of automotive-grade chips by chip designers, automakers, and research institutions may also be a breakthrough point. For example, design companies can get involved in the process development of wafer fabs early on, customizing process platforms based on the needs of automotive-grade chips, while automakers provide application scenarios and performance requirements during the chip design phase to ensure compliance.

For the industry chain, Tao Yang believes that the next promising growth track may be embodied intelligent robots.

"The rapid development of AI technology in recent years has provided the possibility for embodied robots to possess powerful human-like intelligence and action capabilities, with rich imagination space in manufacturing, social services, and other application scenarios. For example, in high-risk industrial activities, robots can completely replace human labor, significantly reducing accident risks. In family life, they can handle complex tasks to free up human time. Humanoid robots and smart cars are very similar, both requiring sensors, high-computing-power chips, and domain controllers to perceive the environment and make decisions. Related industry chain companies can quickly transfer these technologies to the humanoid robot field for application."

Currently, many traditional consumer electronics supply chain companies, including Lingyi Manufacturing (002600.SZ), Lens Technology (300433.SZ), and Fenda Technology (002681.SZ), have begun to layout in the embodied intelligence field.