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Tech war: Huawei-related chip equipment maker to debut products at Shanghai trade show

Tech war: Huawei-related chip equipment maker to debut products at Shanghai trade show

Yahoo21-03-2025
A state-backed semiconductor tool maker based in Shenzhen, which has connections with Huawei Technologies and has raised hopes of China reducing its reliance on US chipmaking technologies, will make its debut at a trade event in Shanghai next week.
SiCarrier, a chip tool maker backed by the Shenzhen government, will launch new products during the three-day Semicon China exhibition, an annual industry event hosted by US-based industry association SEMI.
SiCarrier came under the spotlight in 2023 after it was granted a patent for a process that produced 5-nanometre node chips using existing deep ultraviolet lithography (DUV) tools. The breakthrough was seen as the underlying technology used by Huawei to produce a 7-nm chip for its Mate 60 Pro smartphone in 2024, although neither company has ever publicly commented on the matter.
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Established in 2021, SiCarrier came into being around the time that Huawei Technologies became subject to tighter US tech sanctions by Washington.
Naura Technology's booth at Semicon China in Shanghai last year. Photo: Handout alt=Naura Technology's booth at Semicon China in Shanghai last year. Photo: Handout>
The start-up has maintained a low profile. Its website lists just four low-tech chip tools under the title of "semiconductor manufacturing" products, while the page for "news information" is blank. The company website offers no information about the company's ownership or senior executives, although it has a "compliance statement" that pledges to respect third-party intellectual property rights.
SiCarrier's official social media account on WeChat this week published a brief agenda for its participation at Semicon China, which runs from March 26 to 28. It was the only post on the account. According to the brief statement, SiCarrier, as "a core semiconductor equipment supplier", has always committed to development and manufacturing of "advanced semiconductor equipment" to help enable China's chip industry.
SiCarrier said it will display several key products used in semiconductor wafer fabrication, with each one using a code name from a famous mountain. They include the Emei mountain epitaxial products, Wuyi mountain etching systems, Changbai mountain chemical vapour deposition (CVD) equipment, Putuoshan mountain physical vapour deposition (PVD) gear, and atomic layer deposition tools named after the Alishan mountain range in Taiwan.
The announcement immediately caught the attention of Chinese chip equipment insiders as it was the first time that SiCarrier has come out from the shadows, joining other Chinese domestic chip tool companies like Naura Technology Group and Advanced Micro-Fabrication Equipment, which are also making steady progress in self-sufficiency.
It is unknown whether SiCarrier's showcased products will demonstrate any key breakthroughs, but in an effort to woo new customers the company has come up with a slogan that literally translates as "in the world of chips, there's a new choice, and that's SiCarrier".
An executive from SiCarrier is scheduled to deliver a 20-minute presentation on "opportunities and challenges for semiconductor processing equipment" at the trade event next Thursday.
The 2025 edition of Semicon China, which has been a key forum for China's chip equipment and materials industry since the early 1990s, is happening at a time when China is facing tightened US restrictions on its access to advanced chips and tools over Washington's concerns that US core tech could be used to modernise the Chinese military.
Visitors walk past the Shanghai Micro Electronics Equipment (SMEE) booth during Semicon China in 2023. Photo: Reuters alt=Visitors walk past the Shanghai Micro Electronics Equipment (SMEE) booth during Semicon China in 2023. Photo: Reuters>
Chen Nanxiang, head of China's top memory chipmaker Yangtze Memory Technologies Corporation (YMTC) and chairman of the China Semiconductor Industry Association, and Bai Peng, president of Hua Hong Semiconductor, China's second-largest chip foundry, are also expected to be speakers at the show.
US-based companies, including chip equipment maker Lam Research and chip design software supplier Siemens EDA, are also expected to take part.
Lam Research will share how the company's technologies are used in the areas of advanced packaging, integrated circuit design and compound semiconductors, according to the Lam Research account on Chinese social media WeChat on Thursday.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.
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Global-E Online Ltd. (NASDAQ:GLBE) Shares Could Be 26% Below Their Intrinsic Value Estimate
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Yahoo

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Global-E Online Ltd. (NASDAQ:GLBE) Shares Could Be 26% Below Their Intrinsic Value Estimate

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We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$188.4m US$256.4m US$381.3m US$476.4m US$563.8m US$641.1m US$708.4m US$766.7m US$817.6m US$862.8m Growth Rate Estimate Source Analyst x3 Analyst x4 Analyst x2 Est @ 24.95% Est @ 18.35% Est @ 13.72% Est @ 10.49% Est @ 8.22% Est @ 6.64% Est @ 5.53% Present Value ($, Millions) Discounted @ 10% US$171 US$211 US$285 US$322 US$346 US$357 US$358 US$351 US$340 US$325 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$3.1b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$863m× (1 + 2.9%) ÷ (10%– 2.9%) = US$12b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$12b÷ ( 1 + 10%)10= US$4.6b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$7.7b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$33.5, the company appears a touch undervalued at a 26% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Global-E Online as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 10%, which is based on a levered beta of 1.131. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Global-E Online Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Global-E Online, there are three further aspects you should further research: Financial Health: Does GLBE have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does GLBE's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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