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On June 19, CITIC Securities issued a research report highlighting that regulatory bodies are intensifying their scrutiny on the safety aspects of smart driving technology. Consequently, L2-level Advanced Driver Assistance Systems (ADAS) are encountering more stringent regulations in both promotional and operational domains. Amidst this scenario, L3-level autonomous driving is forecasted to emerge as the primary upgrade trajectory from the fourth quarter of 2025 through 2026. Commercial L3 solutions necessitate robust system safety redundancies, which will substantially elevate the per-vehicle value of components such as smart driving chips, domain controllers, LiDAR, millimeter-wave sensors, automotive SerDes, and low-voltage power supplies. This development is poised to introduce novel investment avenues in the market.
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