What’s Driving the Rapid Rise of AI Modules in China and Globally?

1. Overview of AI Modules

AI modules are built on data‑transmission or smart modules and integrate edge‑side AI models. They optimize compute power by combining heterogeneous processors such as GPUs, NPUs and DSPs, and can host self‑developed or third‑party models, including large language models and other intelligent algorithms.

2. Chinese AI Module Industry – Development Background

Rapid growth of IoT and AI has raised demand for intelligent devices. Many sectors are shifting to cloud‑edge collaboration, requiring deeper AI integration. AI modules enable on‑device inference for tasks like image recognition or voice interaction, reducing cloud load and latency. The Chinese wireless communication module market was about ¥247 billion in 2024.

3. AI Module Industry Value Chain

3.1 Upstream‑Midstream‑Downstream

The upstream supplies raw materials such as AI accelerators, heterogeneous compute units (CPU, GPU, NPU), memory and sensor interfaces. The midstream covers design, manufacturing, packaging, testing and verification of AI modules. The downstream includes applications in automotive electronics, smart home, consumer electronics and smart retail.

3.2 Downstream Analysis

Under the AIoT trend, AI modules, as the next evolution of smart modules, embed NPUs and advanced compute units to provide powerful heterogeneous computing for local AI inference in industrial, city and home scenarios. In 2023, China’s public AIoT market was about ¥4,080 billion.

4. Global AI Module Market Status

AI modules embed dedicated NPUs or AI accelerators to execute on‑device machine‑learning inference with low power and high efficiency, enabling real‑time edge analysis while reducing latency and cloud dependence. The global AI module market was roughly $6 billion in 2024, small but with strong growth potential.

5. Leading Chinese AI Module Companies

Guanghetong Wireless Co., Ltd., founded in 1999, is China’s first listed wireless communication module company and one of the earliest developers of smart and AI modules. In 2024, its total revenue reached ¥81.89 billion.

6. Future Outlook

In the long term, AI‑enabled wireless modules are expected to achieve autonomous edge systems, with embedded NPU handling predictive maintenance and real‑time analytics, reducing reliance on the cloud. 5G‑AI modules will optimize connectivity in dense environments, requiring efficient thermal management and power‑saving designs. As 5G and lightweight large models mature, AI modules will become core carriers of the intelligent‑everything era, expanding use cases from natural voice interaction in smart homes to complex quality inspection and fault prediction in industry.

Source: Huajing Industry Research Institute