InCoder-32B-Thinking: Industrial Code World Model for Thinking

Recent code large language models have achieved remarkable progress on general programming tasks. Nevertheless, their performance degrades significantly in industrial scenarios that require reasoning about hardware semantics, specialized language constructs, and strict resource constraints. To address these challenges, we introduce InCoder-32B (Industrial-Coder-32B), the first 32B-parameter code foundation model unifying code intelligence across chip design, GPU kernel optimization, embedded systems, compiler optimization, and 3D modeling. By adopting an efficient architecture, we train InCoder-32B from scratch with general code pre-training, curated industrial code annealing, mid-training that progressively extends context from 8K to 128K tokens with synthetic industrial reasoning data, and post-training with execution-grounded verification. We conduct extensive evaluation on 14 mainstream general code benchmarks and 9 industrial benchmarks spanning 4 specialized domains. Results show InCoder-32B achieves highly competitive performance on general tasks while establishing strong open-source baselines across industrial domains.

Recent advances in large language models (LLMs) have shown that test-time scaling can substantially improve model performance on complex tasks, particularly in the coding domain. Under this paradigm, models use a larger token budget during inference to generate intermediate reasoning traces before producing a final answer. However, current evaluations primarily rely on competitive programming benchmarks, which may not capture the full range of reasoning abilities. In this work, we perform a systematic study of frontier reasoning models to understand their performance on real-world coding benchmarks. To gain more insights into the performance of such models, we devise a programmatic way to {\em automatically generate} coding tasks of arbitrary difficulty and structure from existing benchmarks. Using this framework, our analysis reveals that the structure of a reasoning trace, not just its contents, is a strong predictor of correctness. Motivated by this, we propose structured thought-trees as means to represent reasoning traces. To illustrate their use, we train a lightweight classifier on features extracted from thought-trees to predict trace correctness, and demonstrate that flagging and retrying structurally anomalous traces based on the extracted features yields consistent gains at lower complexity levels.

Existing code reasoning methods primarily supervise final code outputs, ignoring intermediate states, often leading to reward hacking where correct answers are obtained through inconsistent reasoning. We propose StepCodeReasoner, a framework that introduces explicit intermediate execution-state supervision. By automatically inserting structured print-based execution-trace anchors into code, the model is trained to predict runtime states at each step, transforming code reasoning into a verifiable, stepwise execution modeling problem. Building on this execution-aware method, we introduce Bi-Level GRPO, a reinforcement learning algorithm for structured credit assignment at two levels: inter-trajectory, comparing alternative execution paths, and intra-trajectory, rewarding intermediate accuracy based on its impact on downstream correctness. Extensive experiments demonstrate that StepCodeReasoner achieves SOTA performance in code reasoning. In particular, our 7B model achieves 91.1% on CRUXEval and 86.5% on LiveCodeBench, outperforming the CodeReasoner-7B baseline (86.0% and 77.7%) and GPT-4o (85.6% and 75.1%). Furthermore, on the execution-trace benchmark REval, our model scores 82.9%, outperforming baseline CodeReasoner-7B (72.3%), its 14B counterpart (81.1%), and GPT-4o (77.3%). Additionally, our approach also improves code generation performance, demonstrating that explicit execution modeling enhances both code reasoning and code generation.