Horizon Robotics

And there's companies, to your point, Huawei's designing their own silicon, Xpeng, NIO, Li Auto, Xiaomi-

...

BYD is also designing their own silicon.

Um, and China's version of TSMC is called SMIC, okay? [lip smack] They can't build to the two nanometer like TSMC can, but they're getting there.

Mm-hmm.

It's gonna take years probably, but there are also discrete silicon design companies like Black Horizon-- or like, uh, Horizon Robotics and Black Sesame.

Volkswagen just announced that they're leaning heavily, more heavily into their partnership with Horizon Robotics for the China market.

The electric Levita?

It is, right? 90,000 RMB, less than $15,000 with Horizon, which is the Horizon Robotics Intelligent Driving Solution.

urban solution.

Let's again put that into perspective, because $15,000, now they're competing directly with BYD.

units yeah yeah

Some of those exported vehicles by the end of this year, beginning of next year, non-Volvo, non-Polestar, non-Tesla will hit Canadian ports.

And remember some of these exports, I was reading that, speaking of Horizon Robotics, the Zeekr 7GT launched in Europe actually comes with a Bosch system integrating Horizon Robotics chips.

Journey 6 chips, and those are going to be in 16 countries.

It's Volkswagen's first Chinese sedan with navigation on autopilot.

Higher trims add level two assistance from Momenta, Karizon, and Horizon Robotics for lane change and automatic parking, uh, challenging China's existing plug-in hybrid sedans.

And a reminder, starting at just over 13,000 US dollars.

Wow.

So it's like 10 points higher than the average software business.

Because, you know, the recurring revenue from licenses and consumables is so high for them, right? And another company called Horizon Robotics has 66% gross margin and they make chips for robotics applications.

basically you can see that right now the industry is highly centralized onto industry applications of robotics and big central businesses in the robotic space are where the higher margin are they highly depends on whether you sell your own thing or whether you sell someone else's hardware that you revamp if you look at companies that pretty much deliver actual robots margin is a bit lower For example, Symbody, they make warehouse automation devices.

Gross margin is 22.2%.