According to the Zhitong Finance APP, Guosen Securities released a research report stating that the analog chip industry is currently in an upward cycle, and new products launched by domestic companies in recent years are expected to enter a phase of scale expansion. From the downstream perspective, industrial, automotive, and AI are key areas for international companies, as well as focal points for localization. Currently, the core recommendation logic for domestic analog chip companies is: end of inventory destocking cycle + AI increment + increase in localization rate + market share growth + improvement in profitability, with key recommendations for SG Micro (300661.SZ), JoulWatt (688141.SH), SiRuipu (688536.SH), Naxinwei (688052.SH), Nanxin Technology (688484.SH), Aiwei Electronics (688798.SH), Xinpengwei (688508.SH), Diaowei (688381.SH), and Jingfeng Mingyuan (688368.SH).
<h2>The main viewpoints of Guosen Securities are as follows:</h2>
The analog chip industry is on an upward cycle, with global market size expected to grow by 3.3%/5.1% in 2025/2026.
The CAGR of the global analog chip market from 2004 to 2024 is 4.77%. WSTS expects growth of 3.3%/5.1% in 2025/2026, reaching USD 82.2 billion and USD 86.4 billion, respectively. ADI's revenue for 2QFY25 (as of May 3) turned positive year-on-year for the first time after seven consecutive quarters of decline, and TI's revenue for 1Q25 also turned positive year-on-year after nine consecutive quarters of decline, with continued positive growth in 2Q25. In the short term, the analog chip industry is in an upward cycle, and new products launched by domestic companies in recent years are expected to enter a phase of scale expansion. In the long term, AI data centers and applications such as autonomous driving and humanoid robots will bring extensive increments.
There is significant potential for localization, with industrial, AI, and automotive as key areas.
According to data from WSTS and Frost &amp; Sullivan, China accounted for about 35% of the global analog chip market in 2024, making it one of the main sources of revenue for overseas analog chip giants. TI/ADI/MPS are expected to generate approximately USD 3 billion, USD 2.1 billion, and USD 1.2 billion from China in the 2024 fiscal year, totaling USD 6.3 billion, while the revenue of A-share analog chip leader SG Micro in 2024 is only RMB 3.35 billion, indicating significant potential for localization. From the downstream perspective, industrial, automotive, and AI are key areas for international companies, as well as focal points for localization.
Industrial: After destocking, downstream procurement will return to normal, and new products will be introduced. New products launched by domestic companies with significant R&amp;D investments in recent years are expected to achieve scale expansion. Additionally, due to the demand characteristics of the industrial sector for analog chips, which is small in quantity but diverse in variety, and a relatively favorable competitive landscape, the gross margin in the industrial sector is generally better than that in consumer electronics. The scale expansion of new products in the industrial sector is expected to enhance corporate profitability.
AI: In addition to driving overall demand for analog chips, the localization of the AI industry chain is also a focus. Core power management chips, represented by multi-phase power supplies, are both an incremental market and a key and challenging area for localization
Automotive: The electrification and intelligence of automobiles provide incremental opportunities for analog chips. Domestic car manufacturers are actively laying out their strategies in electrification and intelligence, which offers opportunities for domestic analog chip companies to break through in the automotive field. Automotive analog chips remain an incremental market, and localization is still in its early stages. In recent years, related companies have primarily focused on product research and development and introduction, and are now entering a phase of concentrated volume release.
Consumer Electronics: Early analog chip companies mainly focused on individual product lines. With the improvement of product development capabilities and the deepening of customer relationships, enriching product lines around application terminals such as mobile phones and providing one-stop solutions for customers has become an inevitable choice, and the Matthew effect will become increasingly evident.
Risk Warning: The pace of domestic substitution may fall short of expectations, downstream demand may be weaker than expected, risks of intensified industry competition, and risks of adverse changes in international relations

688141

300661

Guotai Junan Securities released a research report stating that the analog chip industry is currently in an upward cycle, with global market sizes expected to grow by 3.3% and 5.1% in 2025 and 2026, respectively. The report highly recommends companies with high-end and platform capabilities, including SG Micro, JoulWatt, and SiRuPu. Downstream sectors such as industrial, automotive, and AI are key areas for international giants, and the increase in localization rates and improvement in profitability will drive industry development

Guotai Junan Securities: The simulated chip industry cycle is on the rise, recommending companies with high-end and platform capabilities