Artificial Intelligence, more commonly known as AI, is no longer a futuristic concept; it has firmly taken root in our realityThe rapid evolution and deployment of AI technologies are reshaping industries worldwide, and a pivotal player in this transformation is the domestic AI model DeepSeekWithin a mere 20 days of its launch, DeepSeek has achieved 20 million daily active users, earning the title of the fastest-growing AI application globallyMajor cloud service providers such as Huawei Cloud, Alibaba Cloud, and Kingsoft Cloud have swiftly integrated DeepSeek into their systems, with more companies like Wankey Technology, Unisplendour Corporation, and Orient Technology expected to join in the forthcoming days.

What sets DeepSeek apart is not just its impressive speed and adoption rate but also its open-source model and low-cost structureThis combination has led to a significant disruption in the AI landscape, resulting in two major impacts: firstly, the accessibility of computing power is no longer limited to a privileged few; secondly, the acceleration of edge-side applicationsAs DeepSeek democratizes AI training, the process for various large models becomes more streamlined, paving the way for commercial applications across sectors like low-altitude economic activities, humanoid robotics, and AI-enabled smartphones.

The evolution of technology often serves as a catalyst for rapid business growth, a principle that numerous companies have leveraged to transform their fortunesTake for example, firms like Top Group and Sanhua Intelligent Control that have flourished under the electric vehicle boom or JunDa and Aikang which capitalized on advancements in N-type photovoltaic technologyThe ability to pivot with technology trends is essential in an ever-evolving landscape.

At the intersection of AI commercialization, companies capable of engaging in specialized domains stand out, but those that manage to penetrate multiple sectors are exceptionally rare

Advertisements

One such entity is Liyi Intelligent Manufacturing, a remarkable contender that seems ready to unlock the doors to numerous mainstream AI applications.

But what exactly has led Liyi Intelligent Manufacturing to achieve such a prominent position? This company is known as one of the largest players in the precision component market globally, particularly emphasizing the consumer electronics domainAs of 2023, revenue from precision structural components accounts for an impressive 67.9% of its total income, with the charger business contributing another 19.62%.

Through years of specialized focus on consumer electronics, Liyi has garnered a diverse client base, including tech giants like Apple, Huawei, and XiaomiTheir products penetrate various markets, ranging from smartphones and laptops to virtual reality systems and servers—all of which are essential pillars for the current proliferation of edge-side AI applicationsThus, looking ahead to the first half of 2024, it’s projected that over 90% of Liyi's revenue will stem from AI-related edge hardware.

The company has also cultivated a robust technological foundation in advanced functional device manufacturing, due to its substantial investments in research and developmentSince 2020, around 6% of Liyi's revenue has been channeled into R&D activities, outpacing competitors like Goertek, Lens Technology, and Luxshare PrecisionThis commitment to innovation illustrates an unyielding resilience in the wake of fierce competition.

Given its deep-seated technological expertise and manpower within the consumer electronics landscape, Liyi is ideally positioned to capitalize on the burgeoning demand for AI-integrated devicesSeveral key areas pinpoint the company’s strategy for growth: foldable displays, humanoid robots, AI glasses, and AI servers.

To begin with foldable displays, the smartphone market is reboundingReports indicate that in the fourth quarter of 2024, smartphone shipments in China have increased by 5% year over year, marking the fourth consecutive quarter of growth

Advertisements

The impact of Huawei’s foldable phones is prominent, as the anticipated shipments in China are projected to surpass 9.1 million units, surging over 30%. By 2027, global shipments of foldable devices could exceed 100 million, leading to a market penetration rate of around 40%. The higher technical barriers in this domain push up the value of essential components like flexible OLEDs and hinges, presenting lucrative opportunities for manufacturers.

Liyi Intelligent Manufacturing is making strides in this area by focusing on carbon fiber structural components for foldable screens, successfully launching products with high strength, low density, and excellent heat dissipation properties into mainstream supplier chainsWith Apple set to unveil new devices in 2025, including the iPhone 17, and AI's increasing integration into these products, the demand for AI foldable phones is anticipated to skyrocketProjections indicate that by 2028, global shipments of AI smartphones could reach 912 million, underscoring a transformative opportunity in Liyi's operations.

Moreover, Liyi is also strategizing in the humanoid robotics sector, a billion-dollar growth trajectory that is gaining momentumCompetitors like Top Group, Shuanghuan Transmission, and Zhaowei Electric Machinery have begun to position themselves within the humanoid robotics landscape, all aiming for substantial growthIn 2023, Liyi's wholly-owned subsidiary, Lingpeng Intelligent, entered a collaborative partnership with Hanson Robotics, which has proven to be instrumental in developing core technologies and solutions around humanoid robotics.

Further collaborative efforts with industry leaders such as Figure AI have seen Liyi contribute structural components and metal structures essential for innovative robotic designsAs humanoid robots commercialize by 2025, Liyi is poised to unlock a slew of orders in this burgeoning sector, adding to its portfolio's diversification.

AI glasses represent another critical frontier where Liyi has established a firm footing

Advertisements

Advertisements

Advertisements