1. Financial Data
According to publicly available financial reports, Rockchip achieved a revenue of approximately 3.25 billion yuan in the first three quarters of 2024, a year-on-year increase of 28%, primarily benefiting from the growth of AIoT chips and automotive electronics business. The net profit for the first three quarters reached 580 million yuan, a year-on-year increase of 35%, with a gross margin maintained at 42% (industry average around 35%), significantly higher than domestic peers. R&D expenses accounted for 18% (approximately 585 million yuan), continuously increasing investment in AI computing power chips and automotive-grade product development.
Forecast for the full year of 2024, multiple brokerages predict that annual revenue will exceed 4.5 billion yuan, a year-on-year growth of 30%-35%. Net profit is expected to reach 820-850 million yuan, a year-on-year increase of about 40%, primarily driven by the mass production and delivery of the high-end RK3588 series chips. Key growth points: revenue from automotive electronics business may double to 800 million yuan, with AIoT chips accounting for 60% of the total.
2. Products:
Smart terminal chips: The main product RK3588 (8nm process, 6TOPS computing power) is used in high-end tablets and AR/VR devices; RK3399 targets mid-range educational tablets, with a market share exceeding 30%.
AIoT chips, RK1808 / RK2206 series cover smart home and industrial robots, with expected shipments exceeding 50 million units in 2024. Automotive electronic chips, RK3358M (automotive-grade SoC) have entered the supply chains of BYD and Geely, supporting smart cockpit and ADAS functions.
Edge computing chips, RK3576 (12nm process, 20TOPS computing power) focuses on security and smart retail, competing with NVIDIA Jetson Nano.
Technical Moat
AI computing power integration, all series of chips are equipped with NPU units, with power consumption computing power 20%-30% higher than peers. Multi-scenario compatibility, supporting Linux, Android, and HarmonyOS, adapting to ecosystem companies like Huawei and Xiaomi. Automotive-grade certification, the first AI chip design company in China to pass AEC-Q100 certification.
3. Competitiveness
The global market for AIoT chips is expected to reach 50 billion USD in 2024, with China accounting for over 40% (data source: IDC). In the automotive chip market, the market size for smart cockpit chips in China is expected to exceed 20 billion yuan by 2025 (High-tech Automotive Research Institute).Competitors:
| Company | Advantage Area | Rockchip Differentiation Strategy |
|---|---|---|
| Allwinner Technology | Low-end tablets, automotive aftermarket | Focus on mid-to-high-end, targeting the front-end market |
| Amlogic | Smart TVs, set-top boxes | Strengthening AIoT + automotive, covering all scenarios |
| MediaTek | Mobile SoC, communication chips | Differentiated competition, deepening edge computing scenarios |
3. Advantages of Rockchip
Cost performance, chips with the same performance are priced 20%-30% lower than foreign brands. Response speed far exceeds international manufacturers like Qualcomm and Renesas. Collaborating with Alibaba Tsinghua and Huawei HiSilicon to build an AI open-source platform.
4. End Users
Consumer Electronics: Huawei (educational tablets), Xiaomi (smart speakers), BBK (learning machines).Automotive Electronics: BYD (smart cockpit), Geely (ADAS domain controller), NIO (in-vehicle entertainment system).Industrial and Security: Hikvision (edge AI cameras), DJI (agricultural drone main control chips).
RK3588 enters Meta supply chain: In Q2 2024, Rockchip’s RK3588 chip was successfully applied in Meta’s next-generation VR headset Quest 4, with initial orders exceeding 2 million units, marking its high-end chips recognized by international giants.
5. Future Strategy
Full-stack automotive electronics, launching the first 5nm automotive-grade chip in 2025, with computing power exceeding 100TOPS, competing with Tesla HW5.0. Collaborating with BYD to develop domain centralized architecture, reducing overall vehicle wiring costs by 30%.
Popularization of edge AI, launching the “hundred-yuan level” AI chip RK1109, targeting smart agriculture and low-end security markets. Partnering with Microsoft on the Azure IoT Edge platform to seize global edge computing entry points.
Empowering Industry 4.0, launching industrial-grade chip RK3578-H, supporting extreme environments from -40℃ to 105℃, replacing older products from Texas Instruments.
Invisible Champion in the Wave of Domestic Substitution
Rockchip, leveraging the “AI + Automotive + Edge Computing” triad, is breaking the monopoly of foreign capital. If it can establish a foothold in the automotive-grade chip market in 2024, it represents a potential stock with both technological strength and domestic substitution dividends for investors; for industry observers, Rockchip’s rise is a microcosm of China’s semiconductor industry transitioning from “following” to “surpassing”.
What do you think it can rise further?