In the turbulent semiconductor industry, there is a company that has quietly operated for 24 years, leveraging a “technology + ecosystem” dual-drive strategy to quietly occupy an important position in the IoT chip market. This company is Ankai Micro. As a veteran player deeply engaged in core SoC chips for IoT smart hardware, how does this company break through in the wave of AIoT (Artificial Intelligence of Things)? How deep is its technological moat? Why are institutional funds increasing their holdings against the trend? Today, we will unveil the mystery of this “invisible champion” in the simplest language.
1. Status in the Industry: Survival Rules in the Semiconductor World
1. Industry Competition Landscape
The IoT chip track where Ankai Micro operates is filled with “experts”.Allwinner Technology, Rockchip, and other giants dominate the consumer electronics field, while Unisoc and Beijing Junzheng reign in the industrial-grade market. However, Ankai Micro has chosen a path of “differentiated breakthrough”—focusing on smart security, smart locks, and industrial IoT three major subfields, leveraging its full-stack capabilities of “chips + algorithms + solutions” to carve out a niche among the giants.
2. Market Share
- Smart Camera Chips: In 2023, the global market share reached 34.5%, ranking in the top three.
- Smart Lock Chips: Domestic market share exceeds 20%, entering the supply chains of leading companies like Deshman and Kaidishi.
- BLE (Bluetooth Low Energy) Chips: In 2024, shipments are expected to grow by 45% year-on-year, covering scenarios such as smart wearables and smart homes.
3. Competitors’ Strengths and Weaknesses
| Competitor | Strengths | Weaknesses |
|---|---|---|
| Allwinner Technology | Complete consumer electronics ecosystem, strong cost control | Weak layout in industrial-grade products |
| Rockchip | Leading technology in high-performance chips | Insufficient competitiveness in low-power consumption |
| Unisoc | High barriers in military and automotive chips | Slow response in the civilian market |
Ankai Micro’s Core Advantages:
- Vertical Integration of Technology: Self-developed ISP (Image Signal Processing) technology supports 4K low-light full color, AI noise reduction, and other functions, with performance comparable to international giants.
- Ecological Binding: Collaborating with Xiaomi, Tuya Smart, etc., deeply embedded in the smart home ecosystem.
- Cost Advantage: 22nm process mass production, chip prices are 15%-20% lower than Allwinner Technology.
2. Technological Moat: Defensive Works Built with Patents
1. R&D Investment and Achievements
- R&D Proportion: In 2024, R&D investment is 133 million yuan, accounting for 25.24% of revenue, higher than the industry average of 15%-20%.
- Core Technologies:
- Sixth-Generation ISP: Supports 8K resolution, dynamic range increased to 140dB, night imaging effect improved by 3 times.
- Lightweight AI Algorithms: Developed over 10 algorithms such as voice noise reduction and liveness detection, suitable for low-computing edge devices.
- RISC-V Architecture: The fifth-generation Bluetooth chip to be launched in 2025, with a built-in 32-bit RISC-V core, reducing power consumption by 30%.
2. Technological Trend Outlook
- Edge AI: The edge AI chip market is expected to reach $12 billion by 2025, and Ankai Micro’s Kongming second-generation chip supports 2TOPS computing power, capable of running large language models locally.
- Low-Power Communication: The BLE chip market has a compound annual growth rate of 9.1%, and Ankai Micro’s fifth-generation product supports dual-mode classic Bluetooth + BLE, seizing the smart wearable market.
- Industrial-Grade Chips: The domestic production rate of industrial-grade chips in China is less than 10%, and Ankai Micro’s HMI chips have entered industrial display control terminals, expected to double in growth over the next three years.
3. Financial Overview: Why Will Revenue Increase Without Profit in 2024?
1. Key Financial Indicators
| Indicator | 2023 | 2024 | Year-on-Year Change |
|---|---|---|---|
| Operating Revenue | 573 million yuan | 527 million yuan | -7.9% |
| Net Profit | 26.84 million yuan | -56.77 million yuan | -311.5% |
| R&D Expenses | 111 million yuan | 133 million yuan | +19.6% |
| Operating Cash Flow | 14 million yuan | -59.99 million yuan | -428.8% |
Interpretation:
- Main Cause of Loss: The intensifying price war in the semiconductor industry has led to a 12% decrease in the unit price of smart camera chips, with gross profit margin dropping from 25.3% to 18.25%.
- Cash Flow Pressure: Accounts receivable increased by 30%, and inventory turnover days extended from 60 days to 90 days, resulting in negative operating cash flow.
- R&D Investment: Although it drags down profits in the short term, it lays the foundation for long-term technological leadership, with 127 new patents in 2024, totaling over 600 patents.
2. Risk Warnings
- Inventory Impairment: By the end of 2024, the inventory balance is 180 million yuan, and if market demand falls short of expectations, impairment may be recognized.
- Exchange Rate Fluctuations: Overseas revenue accounts for 60.62%, and depreciation of the US dollar may affect net profit.
4. Future Strategy: The Life-and-Death Speed Behind the Ambition of a Billion
1. Core Strategic Direction
- “1+3” Product Matrix:
- 1 Core: AI vision chips (smart cameras, industrial vision).
- 3 Growth Points: BLE chips (smart wearables), HMI chips (industrial control), smart lock solutions.
- Ecological Cooperation: Co-building the “Cloud-Integrated” platform with Alibaba Cloud and Huawei Cloud to lower customer development thresholds.
2. Capacity Layout
- Process Upgrade: Advancing 12nm process R&D in 2025, with mass production expected in 2026, further reducing power consumption by 50%.
- Supply Chain: Signing long-term agreements with SMIC and Huahong Semiconductor to ensure stable capacity.
3. Risks and Challenges
- Technology Iteration Risks: The RISC-V architecture ecosystem is not yet mature, requiring significant resources to adapt the software ecosystem.
- Market Competition: Allwinner Technology and Rockchip are accelerating their layout in industrial-grade chips, and price wars may worsen further.
5. Main Capital Trends: Why Are Institutions Increasing Their Holdings Against the Trend?
1. Capital Flow
- Northbound Capital: In the first quarter of 2025, increased holdings by 1.2 million shares, raising the shareholding ratio to 1.2%.
- Institutional Holdings: The top ten institutional shareholding ratio decreased from 48.82% to 45.27%, but the social security fund increased its holdings by 3 million shares against the trend.
- Financing Balance: In May 2025, the financing balance increased by 15% month-on-month, indicating a warming market sentiment.
2. Analyst Ratings
- Buy Ratings: Institutions such as CITIC Securities and CICC have given “buy” ratings, with target prices of 18-20 yuan.
- Core Logic: Increasing AIoT penetration, explosive growth in edge computing, and accelerated domestic substitution.
6. Social Value: From “Chip Supplier” to “Industry Empowerer”
1. Employment and Tax Contribution
- Employee Scale: In 2024, the total number of employees is 378, with R&D personnel accounting for 67.52%, and those with master’s degrees accounting for 35%.
- Tax Contribution: In 2023, taxes exceeded 50 million yuan, and it has been selected as one of the “Top 100 Taxpayers in Guangdong Province” for five consecutive years.
2. Charity and Industry Support
- Educational Donations: Donated development boards worth 2 million yuan to universities to cultivate semiconductor talent.
- Domestic Production: The domestic production rate of industrial-grade chips has increased from 5% to 15%, reducing the manufacturing industry’s dependence on imports.
7. Key Historical Events: Three Strategic Turns That Achieved Today’s Status
-
2010: Shift from Mobile Phone Chips to IoT
- Background: The smartphone market became saturated, and Ankai Micro decisively cut off its mobile processor business, betting on IoT camera chips.
- Impact: Launched the first IoT camera chip AK3918 in 2013, establishing its position in the smart security market.
2018: Layout in AI and Edge Computing
- Action: Established an AI laboratory to develop lightweight algorithms, launching the first AI-supported ISP chip in 2020.
- Results: Shipments of AI chips increased from 1 million units in 2020 to 8 million units in 2024.
2023: Listing on the Sci-Tech Innovation Board
- Financing: Raised 925 million yuan for R&D of 4K/8K chips and expansion of industrial-grade products.
- Significance: Accelerated technological iteration and direct competition with international giants.
Standing on the Eve of AIoT Explosion
Ankai Micro’s story is a microcosm of China’s semiconductor industry “from following to surpassing”. Despite the pressure on performance in 2024, its deep layout in AI vision, low-power communication, and industrial-grade chips is accumulating energy for the next round of industrial transformation. The increase in institutional funds against the trend reflects the market’s long-term optimism about its “technological moat” and “ecological synergy”.
However, investors should be wary of industry cycle fluctuations, technological route risks, and intensifying competition challenges. As Warren Buffett said, “Be fearful when others are greedy, and be greedy when others are fearful.” Whether Ankai Micro can break through in the AIoT wave remains to be seen.
Disclaimer
This article is a personal diary and does not constitute investment advice. All views expressed in this article are solely personal and do not have any guiding effect.