A three-year action plan has successfully pushed Shenzhen’s smart home industry to the strategic highland of integrating AI and localized technology. The entire industry chain from core chips to terminal products has ushered in a clear growth engine.
Five departments including the Shenzhen Municipal Administration for Market Regulation recently jointly issued the “Shenzhen Three-Year Action Plan to Optimize the Consumption Environment (2026-2028)”, which formulated a clear and ambitious roadmap for the development of the smart home industry.
The plan clearly requires improving the development ecology of the smart home industry and encouraging smart home companies to accelerate the adaptation of domestic operating systems and chips.
The policy intention focuses on two cores: technological independence and controllability and industrial intelligent upgrading.
The document further points out that it is necessary to promote the comprehensive integration of furniture, TVs, audio-visual entertainment, door locks, kitchen utensils, lighting, sweeping robots, fitness equipment, etc. with AI to create smart home “competitive products”, and places special emphasis on promoting the deep integration of “open source Hongmeng + whole-house intelligence” to build a “big home” ecosystem.
This policy not only promotes consumption, but also accurately empowers Shenzhen’s advantageous technology industry clusters.
Combined with Shenzhen’s previous goal of striving to exceed one trillion yuan in scale of the artificial intelligence terminal industry by 2026, the strategic status of smart homes as a key scenario for AI terminals has been unprecedentedly improved.
In-depth policy reading: the industrial logic of dual-wheel drive of localization and AI
The action plan released by Shenzhen this time has elevated smart home competition from a single product to a new dimension of ecosystem and core technology competition.
The industry signal it releases is very clear.
The primary signal is the acceleration of localization substitution.
The statement “encourage the adaptation of domestic operating systems and chips” directly benefits Huawei’s HarmonyOS operating system and domestic chip design ecology.
In the complex international technical environment, having an independent and controllable “soft and hard” underlying architecture is the cornerstone of industrial security and sustainable development.
As the center of China’s electronic information industry, Shenzhen has gathered a complete industrial chain from chip design to complete machine manufacturing. Policy guidance will prompt local companies to migrate to domestic technology platforms faster, forming a strong endogenous cycle.
The core driving force is the comprehensive penetration of AI.
The policy requires all types of home products to be “fully connected to AI”, which means that smart homes will jump from the past “networked remote control” stage to the active intelligence stage of “perception, understanding, and decision-making”.
The value focus of products will shift from hardware manufacturing to AI algorithms, scene interaction and data services, and the unit price per customer and industrial added value are expected to increase significantly.
The final form is ecological integration and openness.
“Open source Hongmeng + deep integration of whole-house intelligence” points out the technical path.
The distributed capabilities of the Hongmeng system are highly consistent with the scenario-based needs of whole-house intelligence.
The introduction of the policy will attract more Shenzhen hardware manufacturers to join the Hongmeng ecosystem to jointly create a seamless smart life experience across brands and categories, and build a people-centered smart living space.
Core benefit sectors and Shenzhen local enterprises sorted out
Based on policy guidelines, we can sort out four core benefit directions: domestic chips and key components, operating systems and software ecosystems, intelligent control modules and sensors, brand terminals and complete machine products.
Shenzhen has strong clusters of listed companies in these fields.
Domestic chips and key components: This is the “brain” and “nerve” of smart homes, and is the forefront of adapting to localization.
Goodix Technology is the world’s leading fingerprint recognition chip design company, and its products are widely used in smart door locks, mobile phones, etc.
Its ultrasonic fingerprint and touch chip technology leads the way, and it is the core supplier of biometric security entrances for smart homes.
AAC Technologies has the world’s top technologies and market shares in the fields of micro-acoustics, precision optics, and electromagnetic transmission.
Its speakers, microphones, and touch motors are core components of high-end smart speakers, TVs, and mobile phones, directly affecting the experience of AI voice interaction.
As one of the largest electronic component distributors in China, Shenzhen Huaqiang is a key hub connecting upstream chip original manufacturers and downstream smart home manufacturing companies.
Its strong supply chain service capabilities will play an irreplaceable platform role in the process of replacing domestic chips.
Operating system and software ecosystem: This is the “soul” that connects hardware and AI capabilities, and Hongmeng ecosystem is the core focus.
China Software International is one of the core co-builders of Huawei’s Hongmeng Ecosystem.
It is deeply involved in the development, customization and commercial implementation of Hongmeng OS, and provides Hongmeng enabling services to many home appliance and hardware companies. It is the most direct software technology service provider for the integration of “open source Hongmeng + whole-house intelligence”.
Runhe Software is also a close partner of Huawei Hongmeng and is committed to providing full-stack services from chip adaptation, operating system customization to scene solutions.
It has a deep layout in the OpenHarmony ecosystem and benefits from the wave of Hongmengization of smart home devices.
Although Sangfor is well-known for its network security, its capabilities in IoT security and cloud platforms are crucial to ensuring the data security and privacy of the massive smart home devices connected to AI and Hongmeng ecosystem. It is an indispensable “security base” in the ecosystem.
Intelligent control modules and sensors: These are the “hands and feet” of AI to achieve precise environmental perception and automatic control.
Ooni Electronics is positioned as the “leader in AI cloud-edge-end integrated smart terminals” and focuses on smart audio and video technology.
Its AI gesture recognition cameras, smart audio and video terminals and other products, as well as the newly launched local AI computing power center “SMART AI HUB”, perfectly fit the policy’s direction of “full access to AI” and the creation of a home intelligent control center.
Although Horn Automotive & Electric’s main business is in the field of automotive electronics, its profound technology accumulation in environmental sensing sensors (such as ultrasonic radar and visual sensors) has the potential to migrate to scenarios such as smart home security and robot navigation. It is a key technology company in the perception layer.
Branded terminals and complete products: This is the ultimate carrier to directly face consumers and create “hit products”.
Zhaochi Co., Ltd. is the world’s leading LCD TV ODM manufacturer and owns popular Internet TV brands.
TV is the center of home entertainment, and the policy directly promotes “TV access to AI”. The company is expected to benefit deeply in the fields of AI TV and smart audio and video systems.
Fenda Technology is one of the major domestic manufacturers of smart speakers and smart wearable products, and is also an ODM supplier of many brands of audio products.
Combining its hardware manufacturing capabilities with AI voice interaction technology, it is an important producer of smart home entrance products.
Topband is a global leader in the field of intelligent controllers, and its products are used in home appliances, tools, gardens and other fields.
Almost all smart home devices are inseparable from smart controllers. As an upstream core component supplier, the company will fully benefit from the intelligent upgrade and localization demand for various downstream terminal products.
As a global leader in Android TV smart terminals and an AI Home overall solution provider, Hua Xida Technology (note: a listing application has been submitted to the Hong Kong Stock Exchange), its capabilities from smart audio-visual terminals to whole-house smart solutions are highly consistent with Shenzhen’s policy of creating a “big home” ecosystem.
Although it is not currently listed on the A-share market, as a local industry benchmark in Shenzhen, its trends are of great significance.
As a national-level professional and new “little giant”, Ganzhen Intelligence is a Google Tier 1 Android TV partner, and its products cover more than 100 countries around the world.
Its ecosystem built around smart audio and video, as well as its innovation in the field of AI audio and video, represent the globalization and high-end development direction of Shenzhen smart home companies.
Kangguan Technology is a global professional manufacturer of smart display products with outstanding design and manufacturing capabilities in the fields of smart interactive tablets and smart TVs.
The company will directly benefit from the surge in demand for smart displays in multiple scenarios such as education, conferences, and homes.
JPT is a technology leader in the field of laser and optical intelligent equipment.
Its precision laser processing equipment can be used for the production and manufacturing of smart home chips and sensors, and is a key “equipment soldier” supporting the upstream industrial chain.
