Orient: The brain-computer interface market has vast potential for development. It is recommended to focus on the two major directions of semi-invasive technology and its industrial chain.

Orient has released a research report stating that as a multidisciplinary emerging technology, brain-machine interface has vast potential in various fields, but its application in the consumer sector needs to be validated first in the field of brain and neurological disease treatment. Due to strict control over brain implants, safety is the core prerequisite for its commercialization and investment logic. In terms of technology routes, non-invasive brain-machine interfaces face obstacles in landing in the field of brain and neurological diseases due to the inadequate spatial resolution of EEG signals; invasive interfaces have higher signal quality but unresolved safety risks; while semi-invasive interfaces, with significant safety advantages on top of guaranteeing basic performance, are poised to take the lead in the field of brain and neurological disease treatment, accumulate key clinical data, and iterate with AI decoding technology to establish a first-mover advantage in the future expansion into the consumer sector. China's research progress in brain-machine interface technology is globally relatively advanced and has the potential to foster leading global enterprises. It is recommended to focus on two main directions: 1) Semi-invasive brain-machine interface solutions with fast clinical progress, clear indications, and national policy support; 2) Around the semi-invasive brain-machine interface industry chain, explore core targets in the medical field that have the potential for new breakthroughs and extension to the consumer level, to seize the fastest commercialization opportunities for investment. Key points from Orient are as follows: - Semi-invasive procedures have small incisions and shallow implants - Invasive implants rely on Siasun Robot & Automation for surgery, with the safety of the technology still needing clinical validation. In addition, invasive procedures require larger bone windows and dura mater incisions, exacerbating the risks of brain displacement and cranial defects; failure to close the dura mater can lead to fluid accumulation and infection, and electrode implants can damage blood vessels in the brain. In comparison, semi-invasive procedures have small incisions, shallow electrode positions that do not damage internal brain vessels, and with advancements in decoding algorithms, they have the potential for even shallower implants. Therefore, semi-invasive procedures demonstrate significant safety advantages during surgery and have greater minimally invasive potential. - Long-term use is safer and offers a high channel limit - Invasive brain-machine interfaces lead to glial scarring around the electrodes inserted into brain tissue, causing neuronal apoptosis and inflammatory responses, leading to deteriorating biocompatibility. The risk of electrode dislodging is high, which can cause damage to brain tissue and surrounding blood vessels; brain tissue is highly thermosensitive, and due to their higher integration level, invasive brain-machine interfaces have their main heating source chip close to brain tissue, making power consumption and channel capacity reach their limits easily. Semi-invasive electrodes are located outside the cortex, do not form glial scars, have better long-term biocompatibility, and membrane electrodes have no axial dislodging possibility. The design of separate chips and electrodes helps address the thermal limitation issue better. Therefore, in long-term use, semi-invasive electrodes are more stable, have better heat control, and their advantages will further expand with an increase in channel numbers. - Safer removal and greater consumer potential - Invasive electrode removal can tear the vascular network, leading to substantial damage and bleeding, causing physical holes, neuronal loss, and difficulties in internal cortical bleeding control. Semi-invasive thin-film electrodes detach without damaging substantial blood vessels, greatly reducing the risk of bleeding; even if bleeding occurs, it is limited to the surface and easy to handle, with the brain tissue structure remaining intact and fully reversible. As brain-machine interfaces are about to enter the era of high throughput, with prospects for consumer-level applications, semi-invasive solutions are more suitable for quick removal and replacement, making them more likely to expand into the consumer level. In conclusion Semi-invasive procedures can effectively address the safety challenges of implantation, long-term use, and removal, and their advantages become more apparent with an increase in channel numbers. Safety is a necessary condition for approval and success in the field of brain and neurological disease treatment, and therefore, this analysis believes that semi-invasive solutions offer better safety and have greater development potential. Risk warnings Risks of slower-than-expected approval progress; risks of technological substitution and market competition; risks of limited supply chain core materials.