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According to news on November 11, Loongson Zhongke’s business model is gradually showing a completely different look from that of industry giants. Hu Weiwu, the company's CEO, said that unlike Huawei, Haiguang and Sugon, which adopt the IBM model, Loongson is more focused on building an ecosystem, likening it to Intel's business model
However, due to policies Affected by the stagnation of the sex market, Loongson Zhongke's performance has been relatively weak in the past period. According to the third quarter report, the operating income in the first three quarters of this year was 394.3 million yuan, a year-on-year decrease of 18.49%; the net profit attributable to the parent company dropped to -206.9 million yuan, a year-on-year decrease of 383.24%.
According to the editor’s understanding, Hu Weiwu said at the performance meeting that he is optimistic about the recovery of the government policy market in the fourth quarter of 2023, while keeping expectations for the development of 2024/2025 unchanged. He made it clear that Loongson will use information creation as a station to move towards the open market, and eventually expand towards the open market and overseas markets
In terms of new product release, Loongson Zhongke plans to launch it at the National Convention Center on November 28 Loongson 3A6000 based on independent instruction set Dragon architecture CPU chip and Loongson 2P0500 printer dedicated chip. A number of complete machine/ODM companies will release their complete machine products at the same time, looking forward to new cooperation and market patterns.
Regarding advanced process research and development, Hu Weiwu revealed that the company has begun to evaluate new processes and is expected to develop relevant IP and test pieces in 2024. He said that the 7nm advanced process will have a great impact on the future of 3A7000. The performance improvement of CPU products will reach 20%-30%.
In the field of server chips, Loongson has not made obvious achievements in the computing power market before. However, Hu Weiwu pointed out that with the release of 3C5000 and 3D5000, Loongson's server business has made significant progress this year. He believes that the launch of the 6000 series will achieve greater breakthroughs
Hu Weiwu revealed at the performance meeting that Loongson The design of the 16-core 3C6000 server application chip has been completed and is about to begin production testing; the 32-core 3D6000 and the 64-core 3E6000 use Chiplet technology, packaging two and four 3C6000 silicon wafers respectively
In addition, the Loongson Project The 9A1000 graphics card product will be launched in the third quarter of 2024. This graphics card will be comparable to AMD RX550 and support scientific computing and artificial intelligence acceleration
Regarding the issue of open source, Hu Weiwu made it clear that "open source and compatibility are a contradiction." It also stated that it is exploring a path that is both open source and compatible to ensure that chips based on the Dragon architecture are software compatible.
At the performance meeting, some investors raised questions about the performance of Loongson Zhongke’s sales staff. Hu Weiwu responded, "There are still many areas for improvement in Loongson's sales, and we are making improvements. But I require sales staff to have a bottom line." He also pointed out that the company has been improving the complete machine and channel in the past year or so. and application units have completed the industrial chain
Loongson Zhongke is constantly adjusting its strategic layout and actively moving towards open markets and international markets
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