The AI smartphone industry chain is divided into three layers: upstream computing hardware, midstream software algorithms and contract manufacturing, and downstream terminal brands and application ecosystems;

The upstream layer focuses on computing power, with mobile SoCs featuring high-performance NPUs, NPU semiconductor IP, and LPDDR/UFS high-speed storage as the core. This is complemented by supporting components such as optical imaging, RF, thermal management, batteries, and PCBs, forming the hardware foundation for on-device large model operations.

The midstream layer includes software service providers specializing in operating system adaptation, lightweight large model deployment, and visual/voice AI algorithms, along with ODM and precision assembly firms for complete device R&D and production.

The downstream layer consists of smartphone brands that leverage edge-cloud collaborative architectures to deploy proprietary or third-party large models, enabling AI-native terminals and extending applications in AI imaging, intelligent agents, and cross-device collaboration.

The entire chain is characterized by hardware computing power upgrades, deep software-hardware integration, edge-cloud ecosystem connectivity, and accelerated localization of domestic components, with significantly higher per-unit hardware value compared to traditional smartphones.

Growth Potential and Profitability of AI Smartphone Industry Chain Companies

Corporate growth potential refers to the ability to sustain increases in asset scale and market share, while profitability involves in-depth analysis of a company's profit margins.

Based on business relevance, this article selects 15 AI smartphone industry chain companies as research samples;

Growth potential is evaluated using metrics such as compound revenue growth, compound growth of net profit excluding non-recurring items, and compound growth of operating net cash flow. Profitability is assessed through return on equity, gross margin, and net profit margin.

10. Furong Technology

Industry Segment: Consumer Electronics Components and Assembly

Growth Potential: 10.71% compound revenue growth, -10.65% compound growth of net profit excluding non-recurring items, compound growth of operating net cash flow

Profitability: 5.62% ROE, 11.24% gross margin, 4.46% net profit margin

Company Highlight: Supplies high-thermal-conductivity, high-strength aluminum alloy midframes and thermal structural components for AI flagship smartphones. The thermal management and lightweighting demands driven by AI smartphone computing power upgrades indirectly drive growth in its high-end aluminum materials.

9. Hightec Electronics

Industry Segment: Analog Chip Design

Growth Potential: 72.21% compound revenue growth, compound growth of net profit excluding non-recurring items, compound growth of operating net cash flow

Profitability: -7.88% ROE, 30.11% gross margin, -15.35% net profit margin

Company Highlight: Provides silicon-anode battery-specific DC/DC power management chips and image stabilization driver chips for AI smartphones, meeting the high power consumption demands of edge-side computing.

8. Doming Optical

Industry Segment: Film Materials

Growth Potential: 3.49% compound revenue growth, 39.38% compound growth of net profit excluding non-recurring items, 71.01% compound growth of operating net cash flow

Profitability: 10.22% ROE, 33.96% gross margin, 14.82% net profit margin

Company Highlight: Independently produces graphene thermal films supplied to multiple AI flagship smartphones for high-computing-power thermal management, entering the AI smartphone supply chain as an upstream material provider.

7. Meig Smart

Industry Segment: Communication Terminals and Accessories

Growth Potential: 27.39% compound revenue growth, 0.19% compound growth of net profit excluding non-recurring items, 125.02% compound growth of operating net cash flow

Profitability: 8.74% ROE, 14.12% gross margin, 3.81% net profit margin

Company Highlight: Leverages high-computing-power AI modules and self-developed edge-side inference engines, possessing foundational technology reserves for on-device large model operations and 5G communication + heterogeneous computing integration required for AI smartphones.

6. Quectel

Industry Segment: Communication Terminals and Accessories

Growth Potential: 30.83% compound revenue growth, 51.84% compound growth of net profit excluding non-recurring items, compound growth of operating net cash flow

Profitability: 18.76% ROE, 17.41% gross margin, 3.40% net profit margin

Company Highlight: Offers 5G/satellite communication modules with integrated NPU computing power and edge-side large model adaptation, providing low-latency connectivity, local AI computing, and satellite communication hardware support for AI smartphones.

5. Crystal-Optech

Industry Segment: Optical Components

Growth Potential: 10.37% compound revenue growth, 9.28% compound growth of net profit excluding non-recurring items, -24.62% compound growth of operating net cash flow

Profitability: 12.45% ROE, 31.29% gross margin, 16.89% net profit margin

Company Highlight: Supplies core imaging optical components such as infrared filters, periscope micro-prisms, and 3D sensing optical modules for major brand AI smartphones, serving as a key optical provider for multimodal visual imaging upgrades on AI smartphone edges.

4. Transsion Holdings

Industry Segment: Branded Consumer Electronics

Growth Potential: -4.55% compound revenue growth, -56.58% compound growth of net profit excluding non-recurring items, -50.13% compound growth of operating net cash flow

Profitability: 12.71% ROE, 19.15% gross margin, 3.97% net profit margin

Company Highlight: Utilizes its TECNO, Infinix, and itel smartphone brands to deploy lightweight edge-side large models and self-developed AI agents, focusing on affordable AI smartphones tailored to localized demands in emerging markets.

3. FRD

Industry Segment: Consumer Electronics Components and Assembly

Growth Potential: 24.74% compound revenue growth, 60.89% compound growth of net profit excluding non-recurring items, 10.72% compound growth of operating net cash flow

Profitability: 9.33% ROE, 19.47% gross margin, 5.51% net profit margin

Company Highlight: Supplies thermal management and electromagnetic shielding components such as VC vapor chambers, graphene, and micro thermal modules for AI smartphones, addressing heat interference challenges from high edge-side computing power.

2. Jones Tech

Industry Segment: Electronic Chemicals

Growth Potential: 17.14% compound revenue growth, 95.30% compound growth of net profit excluding non-recurring items, 16.57% compound growth of operating net cash flow

Profitability: 16.20% ROE, 36.26% gross margin, 18.40% net profit margin

Company Highlight: A core thermal material supplier for AI smartphones, specializing in high-thermal-conductivity graphite and VC vapor chambers for thermal management products that meet the high-power dissipation demands of edge-side AI chips.

1. Siquan New Materials

Industry Segment: Electronic Chemicals

Growth Potential: 41.45% compound revenue growth, 23.31% compound growth of net profit excluding non-recurring items, 66.52% compound growth of operating net cash flow

Profitability: 5.71% ROE, 27.00% gross margin, 6.38% net profit margin

Company Highlight: Primarily produces thermal management materials such as graphite thermal films and vapor chambers, supporting AI smartphones in resolving heat challenges from high-computing-power on-device large models.

*All information in this article is sourced from publicly available data and is intended for industry discussion purposes only. It does not constitute investment advice. Investment decisions should be based on independent judgment.