Huachuang Securities: Policy and clinical acceleration in brain-computer interface industrialization enter a critical stage.

Huachuang Securities released a research report stating that the commercialization of brain-computer interfaces is steadily advancing, bringing vast market opportunities. Currently, competition among brain-computer interface companies in China is still in the early stages, with most companies in the industry being small in scale and not yet entering the red ocean stage. Invasive brain-computer interfaces have significant advantages in signal quality, and their development is an industry trend, while non-invasive brain-computer interfaces are highly secure and easy to operate, serving as a supplement to invasive brain-computer interfaces. The industry is currently concentrated in the medical field, but is expected to expand into non-medical fields in the future. The high technological barriers in the upstream sector of brain-computer interfaces contribute to strong industrial agglomeration effects in the midstream and downstream sectors. The main points of Huachuang Securities are as follows: Learning from Neuralink, a global brain-computer interface pioneer, and its path to industrialization 1) Neuralink's development is expected to enter the stage of industrial application. As of September 2025, 12 severely paralyzed patients globally have been implanted with Neuralink brain-computer interface devices with good results. Founder Elon Musk plans to start mass production of brain-computer interface devices in 2026, moving Neuralink's development towards scale production and industrial application from laboratory research and clinical trials. 2) With the goal of connecting the entire brain, Neuralink has proposed a three-step technological iteration plan and identified three core product lines. On the technology side, in 2026, 2027, and 2028, Neuralink plans to increase the number of electrodes implanted in the brain to over 3000, over 10,000, and over 25,000, to support multiple implants covering any area of the brain and achieve full brain connectivity; On the product side, Neuralink has planned three core product lines: Telepathy for mind control (helping patients with movement disorders regain autonomy), Blindsight for blindness (helping blind patients regain visual perception), and Deep for neurology (helping patients with neurological disorders regain neurological function). 3) Build core competitiveness with three major barriers. Electrode technology: Flexible electrode arrays (high biocompatibility and high integration); Implantation technology: R1 surgery from Siasun Robot & Automation (precise and efficient electrode implantation system); Brain-controlled implant: N1 implant with self-developed ASIC chip (low-power intracranial signal processing system). 4) Lessons learned from Neuralink's development for domestic enterprises. Cross-disciplinary full-stack self-development to build a closed-loop technological system; Clinical collaborative innovation to construct an integrated "industry-university-research-medical" ecological system; Step-by-step commercialization, starting from clinical needs to gradual expansion. Multiple factors resonate, and China's brain-computer interface industrialization enters a critical stage 1) Policy side: National strategic leadership, local supporting policies gradually being implemented. At the national level, brain-computer interfaces are included in the future industrial layout, and in 2025, planning policies for brain-computer interfaces have been intensively released. At the local level, regions actively respond to national policies and issue targeted brain-computer interface supporting policies. 2) Clinical side: Continuous consolidation of technological foundations, acceleration of clinical verification. In 2025, the development of brain-computer interface technology in China accelerated, with breakthrough clinical progress in various subfields: Invasive: Ladder Medical completed the first invasive brain-computer interface system body long-term implantation prospective (FIM) clinical trial in China, the brain-computer interface system NEO independently developed by Borui Kang achieved significant results in the world's first implanted brain-computer interface multi-center registered clinical trial, and the first "fully implanted, fully wireless, fully functional" brain-computer interface system developed by Brain Tigers completed a clinical trial; Semi-invasive: The "Beining Brain No. 1" intelligent brain-computer system completed its third human implantation surgery; Interventional: The team from Nankai University conducted the worlds first interventional brain-computer interface-assisted human limb movement function repair trial. 3) Financing side: The financing market remains hot, with brain-computer interface special funds being set up successively. According to Artery Network, from January to November 2025, the brain-computer interface sector in China completed 24 financings, a 30% year-on-year increase. Since 2025, driven by government policies, many regions have set up special brain-computer interface funds to support industry development. 4) Application side: The supporting industry chain is accelerating, and brain-computer interface technology is gradually being piloted. The supporting industry chain for brain-computer interfaces in China is accelerating, providing technical and clinical conversion pathways. Based on this, in 2025, brain-computer interface technology has gradually been tested and implemented in medical, production, and daily life scenarios. Potential risks factors that may be encountered during the industrialization of brain-computer interfaces 1) Ethical and moral-related risks; 2) Privacy and security-related risks; 3) Legal responsibility attribution-related risks. Typical targets in the medical sector Xinwei Medical (invasive brain-computer interface), Medprin Regenerative Medical Technologies (neurosurgery consumables), Cofoe Medical Technology (bionic implant brain-computer interface), MeHow Innovative (upstream of the brain-computer interface industry chain), Sanbo Hospital Management (neurology specialized medical group), Nanjing Vishee Medical Technology Co., Ltd (rehabilitation brain-computer interface), Nanjing Medlander Medical Technology (rehabilitation brain-computer interface), Xiangyu Medical (rehabilitation brain-computer interface), Beijing Chieftain Control Technology Group (comprehensive brain-computer interface), Jiangsu Apon Medical Technology (neuroregulatory brain-computer interface), Innovative Medical Management (exoskeleton brain-computer interface). Risk warning: 1. Clinical progress falls below expectations; 2. Commercial progress falls below expectations; 3. Policy support is less than expected.