Chips, a battlefield of fierce competition!
The global chip industry is undergoing unprecedented changes, with technological innovations surging like waves, making the industry’s development full of uncertainties.
In this intense competition,RISC-V chips have emerged as a new focus.
The key to chip design lies in the instruction set, which acts like a special key that can unlock different chip ecosystems.
In the past,X86 and ARM dominated the chip market in Europe and America, limiting the development of other technologies. However, in recent years,RISC-V, as an emerging open instruction set standard, has gained increasing attention among Chinese enterprises due to its open-source and flexible advantages.
Just as everyone is discussing the development prospects ofRISC-V, Allwinner Technology announced an astonishing annual report, like a dark horse in the race, stunning everyone.
On March 27, Allwinner Technology released its2024 annual report, showing revenue reaching2.288 billion, a year-on-year increase of36.76%; net profit reached167 million, with a staggering year-on-year growth of626.15%, and the net profit after deducting non-recurring gains and losses increased by 1538%.
In the fiercely competitive chip industry, such achievements are undoubtedly quite remarkable.
So how did Allwinner Technology manage to deliver such impressive results in its annual report?
The main reason lies in its core business, and we will delve into this next.
Next, let’s talk about the SOC chip field.
Allwinner Technology, as a global leadingSOC chip (System on Chip, simply put, it integrates all key components of a system onto a single chip, making this chip capable of complete system functionality) solution provider, has accumulated deep expertise in theSOC chip field.
ItsSOC chips play a crucial role akin to the“brain” of various smart devices, ensuring efficient and stable operation.
First, let’s look at the smart terminal field.
Allwinner Technology’s new generation of smart terminal chipA733 has successfully achieved mass production, and the self-developed“+AI” algorithm has also been widely applied.
This has led to the revenue share of smart terminalsoc products reaching75%, with a market share exceeding60% in the Xiaomi ecosystem.
This means that behind the operation of many smart products from Xiaomi, Allwinner Technology’s“smart brain” is playing a significant role.
Second, let’s look at the smart speaker field.
The popular Tmall Genie has powerful voice interaction capabilities, which rely heavily on Allwinner Technology’sSOC chips for strong support.
Allwinner Technology collaborates with international giants such asGoogle,Microsoft,ARM, and TSMC to continuously optimize chip performance by leveraging various advantages, thereby enhancing the speed and accuracy of chip processing complex voice commands.
Third, there is the smart vision field.
iFlytek’s translation pen uses Allwinner Technology’sV series products, demonstrating excellent performance in image recognition and text translation, bringing great convenience to users.
For example, when users encounter unfamiliar foreign languages while traveling abroad, they can quickly obtain accurate translation results by scanning with the translation pen, which is a testament to the powerful performance of Allwinner Technology’s chips.
In fact, behind these fields, the RISC-V architecture plays an extremely important role in Allwinner Technology’s development process.
Due to the open-source nature of the RISC-V architecture, Allwinner Technology can customize and developSOC chips based on the diverse needs of different markets.
This not only precisely meets the special requirements of various devices but also effectively reduces R&D costs and significantly enhances chip performance.
Unlike Rockchip, which focuses on the high-end market, pursuing extreme performance with relatively high product prices, Allwinner Technology leverages the flexibility of theRISC-V architecture to ensure performance while placing greater emphasis on product cost-effectiveness, thus enabling its products to cover a broader customer base.
Whether users pursue high-end quality or consumers focus on cost-effectiveness, they can find suitable choices in Allwinner Technology’s products.
Allwinner Technology has achieved remarkable results in theSOC chip field, and it also performs excellently in the currently popular edge-sideAI field.
Next, let’s talk about the edge-sideAI field.
Edge-side AI simply refers to enabling devices to perform artificial intelligence processing locally, without the need to transmit all data to the cloud.
This approach not only significantly improves processing speed but also effectively protects user privacy, providing users with a more convenient and secure experience.
Allwinner Technology’s“main control+connection+vision” trinity technology matrix provides solid support for devices in edge-sideAI processing capabilities.
Taking the Tom Cat robot equipped with theR128 chip as an example, since its launch in December 2024, its monthly shipment has approached ten thousand units, ranking high in the shipment volume of the AI toy subcategory.
The robot sold over300 units across platforms like Taobao and JD within three days of its launch, and the sales channels continue to expand.
The Tom Cat robot has powerful voice recognition and emotional interaction capabilities, allowing it to engage in lively and interesting interactions with children.
For instance, when a child says“tell me a story,” it can quickly respond and narrate the story vividly.
This outstanding performance is mainly attributed to theR128 chip, while theRISC-V architecture further enhances the speed and accuracy of the chip during voice recognition and emotional interaction computations.
Additionally, Allwinner Technology’s edge-sideAI technology is also widely applied in products such as smart security cameras.
Smart security cameras, utilizing edge-sideAI technology, can identify abnormal situations in real-time, such as intrusions or object movements, and promptly issue alerts, greatly enhancing the product’s safety and practicality.
Compared to its peers, Rockchip adopts a high-end route in the edge-sideAI field, resulting in higher R&D costs. In contrast, Allwinner Technology takes a different approach, adopting a“latecomer strategy,” focusing on the cost-performance path.
For example, Allwinner Technology’s vision chipV821 integrated with DoubaoAI large model has been widely applied in Byte’s new generation ofAI toys.
Its visual understanding model, with a cost reduction of85%, significantly enhances the product’s cost-effectiveness, allowing the Tom Cat robot to attract more consumers with a more affordable price.
Overall, Allwinner Technology’s technological breakthroughs and market expansions in theSOC chip and edge-sideAI fields inject new vitality into growth. In the future, we look forward to Allwinner Technology bringing more innovative results through technology and innovation.
The above analysis does not constitute specific trading advice; the stock market has risks, and investment should be cautious.
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