Chuangjin Hexin Fund Liu Yang: Meta Universe is the next generation Internet core technology breakthrough is on the eve of the outbreak

On December 1, the 2021 Golden Universe (12.710, 0.02, 0.16%) annual meeting hosted by Sina Finance was grandly held. Liu Yang, Manager of Chuangjin Hexin Chip Industry Equity Fund, delivered a speech on the theme of “What is Metaverse”.

Liu Yang said that this year is the first year of Meta Universe. The innovations of Roblox, NVIDIA and Facebook’s oculus quest2 have brought hope to capital. Facebook, Disney and Microsoft immediately followed suit, and Meta Universe has also caused huge enthusiasm in China. saute.

At this stage, the meta universe is more of a speculation concept, but the future is not. In the short term, Metaverse is a new Internet experience brought by some new display devices such as AR and VR; more generally, Metaverse is the next generation of the Internet; in the longer term, the foundation of the modern Internet plus artificial intelligence , We will create many real immersive virtual universes.

Liu Yang said that the investment community generally believes that investment must first be implemented in hardware and then used to stimulate basic investment. The current investment can be said to be based on the hope that VR and AR equipment can increase the shipment level in 2022, and its related games and content will also see explosives. Liu Yang went on to say that there are two paths for the meta-universe terminals that the market has expectations: head-mounted VR represented by Facebook’s oculus quest2 and AR represented by Apple’s wearable smart glasses. He personally is more optimistic about Apple’s route.

The following is the full text of the speech:

Dear outstanding analysts and distinguished guests:

Hello everyone! I am Liu Yang, the fund manager of Chuangjin Hexin Chip Industry Equity Fund. First of all, thank Sina Finance for the invitation, and warmly congratulate all outstanding analysts for winning the award. Today, I am very honored to have the opportunity to share with you our thoughts on current investment hotspots.

The meta universe is a relatively hot concept recently, and 2021 is called the “first year of the meta universe.” The reason for this year’s popularity is that the innovations of Roblox, NVIDIA and Facebook’s oculus quest2 have brought hope to the capital. Facebook, Disney and Microsoft immediately followed suit, which in turn caused huge enthusiasm in China. We paid attention to “Meta Universe” at the beginning of the year. We were very optimistic about Meta Universe when the fund was established in August. This was a relatively forward-looking prediction at the time. At this stage, the current hype is an important future track that is in its infancy. The theme is the main theme, and the meta universe has not yet been fully implemented in products and applications. That is, the meta universe is more speculative at this stage, but not in the future.

What is Metaverse? There are many explanations in the industry. We all know that the meta universe comes from a 1992 science fiction novel “Avalanche”. People can enter a virtual world by wearing a headset. Everyone has an identity that corresponds to the real world and can interact with other identities in the virtual world. Real interaction. “Yuan Universe” in English is Metaverse, literally translated into Chinese means “above the world”, and China regards “Yuan” as “the foundation of the world.” Translation may cause some errors in everyone’s understanding of this word. In essence, it is actually the next generation of the Internet with virtual identities, real interactions and 3D displays. First of all, there was no unified consensus on the concept of Metaverse by major companies and institutions before, but there are currently two general opinions: In the short term, Metaverse is a new Internet experience brought by some new display devices such as AR and VR. ; And the more general argument is that Metaverse is the next generation of the Internet: from the earliest military Internet, to the PC Internet, and then to the mobile Internet, the current mobile Internet is considered to have developed to the end of the second half. In the longer term, we add artificial intelligence on the basis of the existing Internet, and we create many real and immersive virtual universes. This is the long-term goal of everyone’s discussion.

Then we might as well define the meta universe in a rational and pragmatic way: it is the next generation of the Internet. At present, many basic conditions for the maturity and explosion of the meta universe have not yet been met, but it represents the future. Meta universe involves many technical fields, whether it is high-speed, low-latency communication technology, digital twins, artificial intelligence, cloud computing, or our wearable AR, VR, and even more advanced brain-computer interfaces, quantum computing and more. Efficient 3D modeling tools, game engines, and image rendering technologies are not very mature, but they are on the eve of the explosion. It is very likely that the explosion conditions will be reached within two or three years, and then the meta-universe may have good applications. We should see the social background of the first year of the meta universe more clearly: because the current development of mobile Internet has reached a bottleneck, and humans have more and more beautiful desires for digital life; the epidemic has led to more and more money and leisure time around the world, and In real life, the growth of industrial demand is becoming more and more strenuous. Therefore, both capital and industry must tap the New World (17.090, -0.56, -3.17%) to tap new markets. That’s why this theme has attracted the influx of a large amount of capital, and the influx of a large amount of capital will inevitably speed up technological innovation and the preparation of the industrial chain, thereby accelerating the arrival of this era.

Therefore, it is easy to see that the advancement of Metaverse will surely bring about a lot of technological innovation, massive data generation, huge investment in information infrastructure, innovation in lifestyle and business models, as well as the inevitable social governance problems and legal supervision games. . We can’t accurately predict what will happen in the future, but we can roughly prepare mentally and invest in these directions. What we can refer to is our imagination and the historical iteration of the mobile Internet and PC Internet to the previous digital world. What we see is the exponential increase in data volume, huge IT investment that has continued for decades, continuous iterative innovation of communication facilities, software, terminals, and components, and an increase in chip usage hundreds of times to meet the needs of segmented digital Internet. The rapid rise of giants, as well as the redefinition of human organization, lifestyle and legal supervision. The current digital life is not what can be accurately imagined 30 years ago, so the future meta-universe world will most likely exceed our current expectations. And changes in any of the above directions give birth to a lot of investment opportunities.

Regarding the path of industry advancement, the investment community generally believes that: hardware is applied first, and explosive models will drive basic investment. In other words, it is hoped that VR and AR equipment will increase the shipment level in 2022, and its related games and content will also see explosives. There are two paths for the Meta universe terminal that the market has expectations: head-mounted VR represented by Facebook’s oculus quest2 and AR represented by Apple’s wearable smart glasses. I personally prefer Apple’s route. The Quest series will eventually be eliminated transitional products. Under the current basic technical conditions, 4k+120hz is the entry threshold, and only 180hz or above can have a better sense of real immersion; and the current modeling technology, image rendering, screen, chip computing Force, sensors, and heat dissipation will all restrict the user experience of VR headsets. In other words, experience functions and portability, ease of use, and mobility cannot be achieved at the same time. Apple’s AR route does not require leaps and bounds in basic technology, and it is easy to interact with the real world, taking into account mobility and ease of use, and gradually penetrates into the work scene and daily life, so it is easier to run in small steps. The model is constantly iterating, with the advancement of basic technology to promote the gradual landing of the meta universe. For this reason, I think that the real explosion of Metaverse may be the development path: First, large companies gradually explore terminals and applications, and wait for breakthroughs in basic core technologies within a few years to generate explosive applications, and then pull terminal hardware and applications. Ecological innovative design in turn triggers big IT investment, construction and operation in real meta-universe scenarios. The so-called basic core technology of Metaverse is not necessarily a particularly cool innovation. It should refer to those key technologies that can greatly improve the operational efficiency of Metaverse, such as high computing power chips, high-speed and low-latency 5G+, and a new generation of GPU. , Cloud computing, AI, streaming media, new generation sensors and displays, high-efficiency 3D modeling tools and image rendering algorithms, etc.

My fund focuses on chip investment, so I will focus on chip investment opportunities. What is the relationship between the meta universe and the chip? Let me start with a conclusion: there are not many chip companies that directly benefit from the A-share market in the short term, but there are three directions from a long-term perspective, which may bring a total of 100 times the demand for chips in the future.

1. Provide terminal chips, especially computing chips, display chips, and sensor chips for Metaverse, the next generation of Internet applications, these types of chips are very important;

2. Whether it is to achieve long-term goals, medium-term goals or short-term goals, Metaverse needs huge computing power. The large expansion and upgrade of information technology facilities will bring several times the demand for basic chips: very advanced artificial intelligence is required. Help us build a virtual environment and real interaction; need a good digital twin technology to create a large amount of data; need a better communication infrastructure than 5G. If these scenarios are really implemented, it will bring many times the growth of chip applications;

3. The explosion of applications and scenarios in subdivision fields requires new semiconductors. If new applications are produced, the demand for sound, tactile, 3D shooting, and motion sensors will greatly increase, which will bring about the popularity of chip applications in subdivision fields.

The above three areas will be closely related to chips. The most directly related and undoubtedly huge general-purpose chips and computing power chips related to computing power and communication infrastructure. The other two categories are very dependent on industry innovation and opportunity.

Now that the chip boom has been confirmed, the downstream chip demand is still very strong, and the industrial policy and monetary policy are still in a relatively loose environment.

The future is the sea of ​​stars, with heavy responsibilities and a long way to go, so the journey is bound to be unlimited. Congratulations once again to all outstanding analysts, and look forward to your continued efforts to achieve great results.


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