China Galaxy Securities: Intelligent Computing Quality and Quantity Leap, Creating New Growth through Integrated 6G and Terrestrial Space.

China Galaxy Securities has published a report stating that the Ministry of Industry and Information Technology has issued a notice regarding the 14th Five-Year Plan for the development of the information and communication industry, aiming to further enhance the communication industry's empowerment level and its global development status. The notice also mentions the structural reconstruction of domestic computing power and the shift in industry value from traffic operation to a new ecosystem of Token computing power. It emphasizes the construction of an integrated space network and the opening of a new cycle in 6G communication network development, with a focus on tackling key core technologies. The notice highlights the development of open-source communities and ecosystems in the information and communication field, continuously improving the international standardization level. Key points from China Galaxy Securities include: The communication industry will stabilize in volume but enhance quality, appropriately advancing the construction of new information infrastructure while nurturing and expanding a new system for the communication industry. The 14th Five-Year Plan for the information and communication industry indicates that by 2030, a comprehensive, well-covered, and leading-edge new generation communication network will be fully established, accelerating the formation of a technologically advanced and secure information and communication industry system, effectively constructing a governance system that integrates technology and management, is agile and efficient, and builds a network and data security capability that is practical and operational. The industrys empowerment level and global development will be further enhanced, with revenue from the information and communication industry expected to reach 4.1 trillion yuan by 2030 (up from 3.8 trillion yuan in 2025, averaging an annual growth rate of about 1.5%). In terms of capital expenditure, the cumulative investment in information infrastructure will reach 3.8 trillion yuan over five consecutive years. The average annual growth rate of total telecom business volume is projected to reach 7%, with ARPU anticipated to recover and continued upgrades to the telecom business revenue structure. Building efficient and collaborative computing power facilities, enhancing the foundation and quality of computing power infrastructure, and nurturing the AI application market ecosystem. As of the end of 2025, the national intelligent computing power scale is expected to reach 1590 EFLOPS, with a target of 9800 EFLOPS by 2030, anticipating a growth of over six times during the 14th Five-Year Plan. There will be an accelerated construction of a national integrated computing power network, building a multi-level facility system for hub-regional-edge computing power, systematically deploying intelligent computing clusters with tens of thousands to hundreds of thousands of cards, and deploying inference computing power facilities on demand based on scenarios, with a greater focus on adapting to domestic computing power chips. The deepening of automated monitoring of computing power and supply-demand matching will improve the utilization rate of computing power resources. Strengthening research and application of key common technologies in computing power, exploring pioneering studies and ecological cultivation of space computing power technology, continuously improving standards and evaluation systems for computing power, and deeply implementing actions to strengthen the foundation of computing power will be prioritized. Overall, there will be a structural reconstruction of domestic computing power, shifting the industry value from traffic operation to a new ecosystem of Token computing power. Constructing an integrated space network, with the 6G communication network opening a new cycle of construction and focusing on tackling key core technologies. The research and development of 6G technology in China continues to accelerate, with numerous supportive industrial policies being introduced. Satellite communication, space-ground integration, and pervasive connectivity drive industry development, providing substantial long-term growth opportunities. Key 6G technologies will strengthen network-native AI, integrated sensing computing, Token communication, data services, and other critical network technologies, as well as tackle key wireless communication technologies such as large-scale antennas, integrated sensing, space-ground integration, energy conservation, and collaborative use of frequency spectrum across low, medium, and high orbits. Emerging and future sectors will form standardized technical organizations in a timely manner, reinforcing the construction of standard systems in key areas of information and communication such as 5G-A/6G, quantum communication, satellite IoT, and direct mobile satellite connections, enhancing the universality of military-civilian standards. The open-source community and ecosystem developments in the information and communication sector will continue to enhance the internationalization of standards. Risk warnings: Risks of 6G technology development and iteration falling short of expectations; risks of satellite internet networking processes not meeting expectations; risks of intensified industry competition; uncertainties regarding domestic and international policies, etc.