Smart Tech Competition Intensifies: What Is the Expansion Logic for Module Manufacturers?

Edited by Betty From Gasgoo

Gasgoo Munich- The Auto China 2026 sent a clear signal: intelligence is no longer a nice-to-have selling point, but a foundational capability that determines whether a brand can leap to the next level.

The 2027 C-NCAP protocols incorporate C-V2X for the first time, while the Ministry of Transport has set 2027 as the deadline for establishing technical standards for vehicle-road information interaction. Policy is reshaping the priority of vehicle electrical and electronic architectures from the top down.

In this restructuring, a niche segment often relegated to "Tier 2" status—automotive communication modules—is revealing strategic weight that far exceeds its traditional role.

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Image Source: Quectel

On April 25, Quectel and UNISOC jointly released the AR59xUB series, a new generation of automotive-grade 5G communication modules. Built on UNISOC's A7726 automotive-grade 5G chip platform, the module fully supports 3GPP Release 16 with an upgrade path to Release 17, boasting peak downlink speeds of up to 5.0 Gbps. It also integrates a quad-core Arm Cortex-A55 processor delivering 22K DMIPS of computing power.

But the real story isn't the specs themselves; it's the two industry logics driving the product definition.

First, all four core components—the baseband, RF, V2X chip, and memory—come from domestic suppliers. Second, the new module aligns its positioning and vehicle-road coordination functions with the C-NCAP and new national standard timelines. This suggests module makers' product planning is shifting from a "performance-driven" to a "regulation-driven" approach—a transition that means modules are no longer just a cost item, but a critical part of the vehicle's regulatory compliance framework.

Zooming out, Quectel's product matrix at the show—featuring cabin-connectivity convergence solutions, central computing satellite architecture with millimeter-wave radar, and in-vehicle AI robots—signals a pivotal strategic decision for this module company: expanding into adjacent segments of the value chain.

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