Sinolink Securities: Policy accelerates the industrialization and commercialization of brain-computer interface technology, with more focus on non-invasive methods in the short term.

Wanlian Securities issued a research report stating that policy opinions have pointed out the need to accelerate the industrialization and commercialization process of brain-machine interfaces. Currently, the global competitive landscape of the brain-machine interface industry presents a development pattern of "US dominating invasive, China leading non-invasive", with the competition focusing on the three core elements of "electrodes, chips, algorithms". In the short term, the commercialization of brain-machine interfaces is more focused on non-invasive methods, while in the medium and long term, the focus is on upstream technologies such as (semi-)invasive "flexible electrodes + high-throughput low-power chips", multi-center clinical trials, compliance standards, and comprehensive system capabilities. Industry policy support, medical insurance payments, breakthroughs in registered clinical milestones, breakthroughs in core technologies, and domestic substitutions are all catalysts for the future development of the industry. The main points of Wanlian Securities are as follows: Event On January 8th, according to the official website of the Ministry of Industry and Information Technology, the Ministry of Industry and Information Technology, the Cyberspace Administration of China, the National Development and Reform Commission, the Ministry of Education, the Ministry of Commerce, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration for Market Regulation, and the National Bureau of Statistics jointly issued the "Special Action Plan for 'Artificial Intelligence + Manufacturing'", to accelerate the industrialization and commercialization process of brain-machine interfaces. Policy Content The "opinions" put forward to speed up the upgrade of intelligent terminals. Support technological breakthroughs such as edge-side models and application development toolchains, cultivate artificial intelligence terminals such as smartphones, computers, tablets, and smart homes. Focus on key scenarios such as industrial inspections and remote medical care, accelerate the industrialization and commercialization of new terminals such as enhanced reality/virtual reality (AR/VR) wearable devices, brain-machine interfaces, etc. Promote the innovation of personalized intelligent products, build an experimental base and training ground for humanoid Siasun Robot & Automation, create a benchmark production line for humanoid Siasun Robot & Automation, and apply it in typical manufacturing scenarios. Regarding upstream technologies related to brain-machine interfaces, the "opinions" require the promotion of the coordinated development of intelligent chip software and hardware, support breakthroughs in key technologies such as high-end training chips, edge-side reasoning chips, artificial intelligence servers, high-speed interconnections, etc. Regarding downstream terminals related to brain-machine interfaces, the "opinions" propose to accelerate the development of surgical Siasun Robot & Automation, intelligent diagnostic systems, etc., and promote the innovation and clinical application of intelligent medical equipment products. Core Viewpoints Brain-machine interfaces are currently at an accelerated turning point of "technological breakthroughs - clinical validation - commercial landing". Policies and capital are jointly promoting the upgrading of the industry chain. Currently, the main applications of brain-machine interfaces globally are in medical rehabilitation, assisting brain diseases, neural prostheses, and other medical scenarios. Domestic enterprises mainly focus on non-invasive and rehabilitative applications, while invasive core technologies face high barriers to clinical promotion and are long-term competitive focuses in the industry. In the short term, the commercialization of brain-machine interfaces is more focused on non-invasive methods, while in the medium and long term, the focus is on upstream technologies such as (semi-)invasive "flexible electrodes + high-throughput low-power chips", multi-center clinical trials, compliance standards, and comprehensive system capabilities. Industry policy support, medical insurance payments, breakthroughs in registered clinical milestones, breakthroughs in core technologies, and domestic substitutions are all future industry development catalysts. In this regard, invasive methods focus on the research and development team, clinical resources, financing environment, etc.; while non-invasive methods focus on branding, channels, and cost control. Risk Warning: Risks of unexpected technological iterations and R&D progress, risks of commercialization progress and market education falling short of expectations, etc.