Analysis of Domestic Substitution Potential for Longxun Co., Ltd.'s High-Speed Mixed-Signal Chips

Based on the collected information, I will provide a detailed analysis of the domestic substitution potential for Longxun Co., Ltd.'s high-speed mixed-signal chips.

Longxun Co., Ltd. (Stock Code: 688486) is a leading enterprise in China’s high-definition video chip sector, focusing on R&D and sales of high-speed mixed-signal chips. It ranks among the top five in the global video bridge chip market and has a product portfolio of 151 video chips and 110 connectivity chips [1].

Its core technology platform is ClearEdge, covering key capabilities such as high-speed data processing, encryption technology, and high-definition video rendering. Main products include video bridge chips, Type-C/DP to HDMI conversion chips (e.g., LT8711HE), multi-port HDMI chips (e.g., LT8631UXE), etc., supporting up to 4K60Hz resolution and covering MIPI DPHY/LVDS Combo-PHY interface technology [1][2].

According to a research report from Huaan Securities, Longxun Co., Ltd.'s compound annual growth rate (CAGR) of revenue from 2022 to 2024 reached 39.1%, with total operating revenue of RMB 466 million in 2024, a year-on-year increase of 44.21%, and net profit of RMB 144 million [1]. This growth trend reflects strong demand for domestic video chips in the following areas:

• Smart visual terminals: Security monitoring, video conferencing systems
• In-vehicle display systems: Smart car central control screens, instrument panels
• AR/VR devices: Virtual reality headsets, augmented reality glasses
• Consumer electronics: Laptops, tablets

Currently, the global video bridge chip market is mainly dominated by international and Taiwanese manufacturers such as Texas Instruments, Novatek Microelectronics, and Realtek Semiconductor. As a domestic leader, Longxun Co., Ltd. has successfully entered the top five globally, indicating that domestic substitution has made substantial progress.

:

• Policy support: China is vigorously promoting semiconductor industry localization, planning to invest up to $70 billion in industry incentive funds [3]
• Supply chain security: Government and state-owned enterprise projects prioritize domestic chips
• Narrowing technology gap: Longxun Co., Ltd.'s products already support mainstream standards such as HDCP1.4 and HDCP2.3

Longxun Co., Ltd.'s products cover multiple high-growth areas from traditional consumer electronics to emerging automotive electronics and AI applications:

• Automotive electronics: Demand for in-vehicle display systems is growing rapidly with the increase in smart car penetration
• AI servers: Products such as PCIe Retimer can be used in AI computing infrastructure
• Multimodal interaction: Video interface chips are core components for data interconnection in the AI era

Currently, Longxun Co., Ltd.'s AI business accounts for only 1.9% of revenue, and its market share in the high-growth AI chip sector needs to be improved [2].

The company’s business is overly dependent on the single video chip segment, which may face the problem of high customer concentration.

Semiconductor technology updates rapidly, requiring continuous R&D investment to maintain technological leadership.

Longxun Co., Ltd. is implementing a development strategy of “nurturing new businesses with stable core operations”:

1. Consolidate core business: Deepen in the smart visual terminal and in-vehicle chip markets
2. Precise technology investment: Focus on product lines with clear market demand such as PCIe Retimer
3. Platform-based development: Extend to the AI field using the ClearEdge technology platform
4. Capital operations: Consider listing on the Hong Kong Stock Exchange to raise international capital

:

• Stable market position as one of the top five in global video bridge chips
• Excellent financial performance with continuous growth in revenue and profit
• ClearEdge technology platform provides differentiated competitive advantages
• Benefits from the semiconductor localization trend

:

• Uncertainty in AI business breakthroughs
• Sustained competitive pressure from international chip manufacturers
• Cyclical fluctuations in the semiconductor industry

: Longxun Co., Ltd. has established a relatively stable market position in the high-speed mixed-signal chip sector. With the acceleration of domestic substitution and increased policy support, the company is expected to gain a larger market share in emerging fields such as automotive electronics and AI servers. However, the low proportion of AI business remains a risk point to watch.

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[1] Huaan Securities - Longxun Co., Ltd. (688486) Company Research Report: Domestic High-Definition Video Chip Leader, Automotive/AR Business Opens Growth Space (https://pdf.dfcfw.com/pdf/H3_AP202507311719015830_1.pdf)

[2] Jinling AI Investment Research Analysis - Analysis of Longxun Co., Ltd.'s AI Business Breakthrough Path (https://www.gilin.com.cn/essence1226151.html)

[3] Bloomberg - China Prepares as Much as $70 Billion in Chip Sector Incentives (https://www.bloomberg.com/news/articles/2025-12-12/china-prepares-as-much-as-70-billion-in-chip-sector-incentives)