In the burgeoning field of intelligent chips, a significant transformation is underway, ushering in fresh commercial opportunities for key playersRecently, after establishing a partnership with FAW Group, Hezi Smart has also collaborated with Dongfeng Motor Corporation, which is poised to utilize Hezi Smart's Wudang series chipsThese chips represent a breakthrough as the industry's first integrated cockpit and driving chip platform, aimed for mass production by 2025.

The automotive landscape is transitioning from traditional distributed systems to centralized computing architecturesThis shift necessitates the convergence of multiple domains within vehicles, including cockpit, intelligent driving, power, chassis, and body domainsThe integration of cockpit and intelligent driving represents an advanced stage of this convergence, marking a pivotal move towards centralized computingThis integration is becoming a defining trend in the automotive industry.

Market data underscores the rapid growth of integrated cockpit and driving technologiesIn the first three quarters of 2024 alone, sales of vehicles featuring integrated cockpits soared to 246,600 units, marking an astounding year-on-year increase of 1071.9%. Projections indicate that by 2027, the penetration rate for these integrated technologies could rise to between 15% and 25%.

The Wudang series chips stand out as the first production-ready platform for integrated cockpit and driving systems, offering a new developmental catalyst for the automotive industryBy consolidating hardware computing power, they facilitate software integration, sparking innovative interactionsMoreover, redundant designs and collaborative responses significantly enhance system reliability and emergency handling capabilities, thus boosting overall vehicle safetyFrom a cost perspective, streamlined hardware can reduce procurement expenses and simplify the research and development process, ultimately shortening the time-to-market for new models

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Additionally, the adoption of these technologies could set a benchmark for industry-wide smart upgrades, redefining upstream and downstream collaboration dynamics and comprehensively advancing automotive electronic architectures toward centralized computing.

This evolution contributes to a reduction in the costs associated with advanced intelligent driving functionalities, enabling their accessibility to mid-range and low-end modelsPreviously, such cutting-edge features were typically available only in high-end vehicles; however, with the cost-cutting capabilities of integrated cockpit chips, mainstream vehicles priced around 150,000 yuan now have the potential to incorporate advanced intelligent driving features like Navigation on Autopilot (NOA), paving the way for "intelligent equality."

Hezi Smart emerges as a front-runner in the realm of automotive-grade intelligent computing chips and chip-based solutionsBy developing its own IP cores, algorithms, and comprehensive solutions, the company provides an all-encompassing autonomous driving capability to meet a wide range of customer needs.

At present, domestic chip manufacturers such as Hezi Smart are reaping significant benefits from the trend towards democratizing intelligent driving technologies, capturing an increasing share of the market.

Deepening Collaboration in Intelligent Driving Sphere

Recently, Hezi Smart has announced several collaborations with automotive companies.

On February 10, BYD unveiled its advanced intelligent driving system, dubbed "Heaven's Eye," during a strategic announcementAs a core partner in BYD's onboard intelligent computing solution, Hezi Smart garnered notable attention.

On the same day, Hezi Smart disclosed that its Huashan A1000 family of chips had received platform selection from FAW, marking their debut in FAW's fuel vehicles, thus achieving "full compatibility with both fuel and electric vehicles." With the backing of FAW's substantial brand foundation and extensive sales network in the fuel vehicle market, Hezi Smart can quickly penetrate the market and enhance its product market share.

Building on their historical collaboration, Hezi Smart and Dongfeng are poised to take their partnership further

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Public records reveal that they have embarked on a series of deep cooperative initiatives.

In September 2024, the two companies formalized a technological collaboration framework, allowing for resource sharing and deeper cooperationAdditionally, Dongfeng's eπ007 and eπ008 models are both equipped with the Huashan A1000 chip, enhancing the intelligent driving experienceThe Huashan A1000 also facilitated a significant Over-The-Air (OTA) upgrade for the eπ007 modelThis cooperation stands as yet another substantial achievement, with the ongoing mass production of the Wudang series chips expected to inject new vitality into the intelligent automotive sector and promote the widespread adoption of intelligent driving technologies.

Accelerating Growth

In recent years, against the backdrop of rapid industry development, Hezi Smart has entered a phase of accelerated growth.

During CES 2025, Hezi Smart introduced its Huashan A2000 family of chips, featuring a cutting-edge 7nm processThis product boasts a computing power that is four times higher than that of current leading flagship chips and inherently supports Transformer models.

So far, Hezi Smart has launched both Huashan and Wudang series chip productsThe Huashan A1000 family of chips has been adopted by several leading domestic automotive manufacturers, including FAW Group, Dongfeng Group, Geely Group, and Jiangling Motors, with mass-produced models featuring these chips including Lynk & Co 08, Lynk & Co 07, Dongfeng eπ007, and Dongfeng eπ008.

Financially, Hezi Smart's anticipated performance for 2024 is remarkably optimisticThe group expects to generate revenues ranging between 450 million to 500 million yuan, which would signify a year-on-year growth of 44% to 60%. Furthermore, the company's expected net profit attributable to shareholders should not fall below 100 million yuan, indicating a trajectory toward profitability

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