Latest news with #ASML
Yahoo
9 hours ago
- Business
- Yahoo
China to pivot $50 billion chip fund to fighting U.S. squeeze as trade war escalates — country to back local companies and projects to overcome export controls
When you buy through links on our articles, Future and its syndication partners may earn a commission. Executives of China's Big Fund III are re-adjusting its purpose to address the most notorious gaps in the country's semiconductor industry, namely lithography tools and electronic design automation (EDA) software. Previously, it was designed to support makers of fab tools and the semiconductor ecosystem in general. This recalibration comes as the U.S. intensifies efforts to restrict the access of China-based chip designers and chipmakers to tools and technologies vital for advanced semiconductors. The main purpose of the third installment of the National Integrated Circuit Industry Investment Fund, also called Big Fund III, was to strengthen local development and manufacturing of chipmaking equipment. This push has become urgent in recent years because companies like ASML, Applied Materials, KLA, Lam Research, and Tokyo Electron are now barred by export controls from selling their most advanced tools to Chinese entities without an export license. However, 'fab tools' is a really big product category as fabs use hundreds of different types of tools. Some of the China-made tools, such as etching or deposition machines, are already world-class. Others, such as lithography tools, are decades behind those produced by ASML. Apparently, managers of the Big Fund III want to focus on lithography equipment rather than on devices that are already good enough and which will evolve themselves going forward. As companies like Cadence and Synopsys now also need an export license to supply their advanced EDA tools to customers in China, Chinese chip designers need domestic design software to develop processors for sophisticated nodes. Therefore, the Big Fund III will focus on supporting local makers of EDA tools. Bloomberg reports that the Big Fund III is preparing to make its first significant contributions in accordance with the renewed plan. Among possible recipients are Shanghai Micro Electronics Equipment (SMEE), which produces lithography tools, and Empyrean Technology, which develops electronic design automation software. There is also speculation that Huawei may attempt to build domestic lithography systems to counter reliance on overseas suppliers, though it is unlikely that it will need money from the Big Fund III. Executives overseeing the Big Fund initiative also plan to encourage the merger and concentration of domestic companies through acquisitions or other strategies in a bid to build stronger companies capable of producing more inventions. One of the reasons to streamline spending of the Big Fund III is the fact that it has gathered only part of the planned $47 billion so far, as Chinese authorities (including federal and local) have become more selective in allocating resources after earlier efforts produced limited breakthroughs, according to Bloomberg. However, Officials familiar with the matter expect the funding gap to be temporary, Bloomberg reports. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Globe and Mail
17 hours ago
- Business
- Globe and Mail
These Are the Best Stocks You Can Buy With $1,000 Right Now
The stock market has recovered nearly all the losses that were sparked by fear of a new trade war. The benchmark S&P 500 index finished June 25 less than a percentage point below its all-time high. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Despite a big recovery for the overall stock market, several top tech stocks with a hand in the artificial intelligence (AI) revolution have been trading for attractive valuations. Demand for AI-related products hasn't translated into profits for the most popular large language model (LLM) providers, but sales of semiconductors and equipment required to produce those LLMs keep surging. Lately, Nvidia (NASDAQ: NVDA), Lam Research (NASDAQ: LRCX), and ASML Holding (NASDAQ: ASML) have been trading at attractive valuations. If you have $1,000 -- or any amount -- available to invest in these stocks now, there's a good chance you'll realize market-beating gains over the long run. 1. Nvidia If you follow the AI space, you probably heard that DeepSeek in China ignored CUDA, Nvidia's software development kit (SDK), to produce a competitive LLM using inferior graphics processing units (GPUs). The important thing for everyday investors to take from this event is that the vast majority of AI application developers aren't as capable and all but a handful of developers still rely on CUDA to build AI applications. Nvidia's software advantage allowed its fiscal first-quarter sales to surge 69% year over year to a whopping $44.1 billion. With demand for AI computing on the rise, and a software advantage that keeps competitors at bay, several more years of rapid growth isn't a wild expectation. On the surface, Nvidia stock looks expensive at 36 times earnings expectations. But once you consider how fast earnings are growing, the stock actually looks like a bargain right now. The forward price/earnings-to-growth (PEG) ratio divides the trailing price-to-earnings ratio by the rate of earnings growth Wall Street expects in the year ahead. Anything below a 1.0 is considered undervalued, so Nvidia's recent forward PEG of 0.79 suggests now is a good time to buy. 2. Lam Research AMD and Intel are furiously trying to overcome Nvidia's software advantage. But even if they succeed, they'll still likely employ advanced etch and deposition equipment from Lam Research, a leader in the space. Now that advanced semiconductors are spacing nodes just a few nanometers apart, stacking semiconductor components is the way forward. As a leader in the verticalization processes, Lam Research could remain a vital equipment provider in the decade ahead. Its equipment is used to manufacture high bandwidth memory (HBM), which is an increasingly important component of AI processing. Strong demand from Nvidia helped Lam Research report first-quarter earnings that rose 12% year over year. Even if Nvidia unexpectedly loses its software advantage in the years ahead, the next leader in the semiconductor space will likely employ Lam's etch and deposition equipment to produce HBM, too. Shares of Lam Research have been trading for just 24 times earnings estimates. This valuation is extremely low for a highly profitable company that could continue raising earnings at double-digit percentages for many years to come. 3. ASML Holding With $1,000, you could buy many shares of Nvidia or Lam Research. Advanced lithography system producer, ASML Holding is more than 25% off its previous peak, but you'll need at least $815 to buy one share at recent prices. (Don't get hung up on price, though. Price and value aren't the same thing, and fractional shares are available.) Like Lam Research, ASML is a niche producer of semiconductor manufacturing equipment. Its enormous lithography machines contain hundreds of thousands of components and require months to ship and assemble. When it comes to advanced chips that AI applications rely on, an ASML lithography machine is the only option. ASML's already entrenched business requires heaps of capital, engineering knowledge, and relationships with semiconductor manufacturers. These sustainable advantages allowed earnings per share to rise by 16% annually over the past five years, and the gains could continue. At the midpoint of management's guided range, top-line sales are expected to climb by 14.8% this year. Without any competitors capable of marketing similar equipment, continued growth at a double-digit annual percentage seems likely. A stock market aware of ASML's competitive position rarely allows its stock price to fall into deep value territory. At recent prices, it's been trading for about 30 times forward-looking earnings expectations. This is a steep valuation, but it isn't one that ASML can't grow into. Adding some shares to a diversified portfolio to hold over the long run looks like a smart move for most growth-oriented investors right now. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor 's total average return is1,048% — a market-crushing outperformance compared to175%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Intel, Lam Research, and Nvidia. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.
Yahoo
20 hours ago
- Business
- Yahoo
Top semiconductor toolmaker launches talent competition in China — ASML is looking for 16 skilled lithography engineers
When you buy through links on our articles, Future and its syndication partners may earn a commission. ASML has introduced an online competition in China to promote knowledge of lithography and identify skilled engineers. The contest is designed to deepen awareness of how lithography works, especially the process of creating circuit patterns on silicon wafers, and to encourage the development of specialized expertise in the country. As a side bonus, the competition will show ASML remains dedicated to the Chinese market despite restrictions imposed by the U.S. and its allies, reports the South China Morning Post. The event invites participants among professionals working in the semiconductor industry as well as enthusiasts with a scientific background. The initiative aims to offer a way for Chinese participants to explore lithography in depth as well as locate new talent to work for ASML in China. According to ASML's statement, the 16 highest-scoring participants will have the chance to interview for positions at ASML, and an additional 75 individuals will be added to a list of candidates who may be considered for future employment. The competition will run from late June through early July and will include 20 questions. In 2024, mainland China surpassed Taiwan as ASML's largest regional market, accounting for 36.1% of total revenue, according to the company's annual disclosures. To that end, ASML expanded its presence in the country and established a new and bigger repair center in Beijing, which will replace the old one, in a bid to properly serve its expanded installed base in the country. The center needs employees, so the competition could be a part of ASML's effort to staff its new repair shop. However, ASML management expects sales in China to decline in 2025 as a result of fulfilling a backlog of orders accumulated in previous periods, as well as stricter export limitations imposed on tools that can be shipped to China. In response to restrictions imposed by the U.S. and its allies, Chinese companies (including the high-tech giant Huawei) and universities have increased efforts to build domestic lithography systems. The Changchun Institute of Optics, Fine Mechanics and Physics, which operates under the Chinese Academy of Sciences, posted recruitment notices offering unlimited compensation for PhD researchers willing to join projects developing domestic lithography systems, reports SCMP. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button. 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
Yahoo
2 days ago
- Business
- Yahoo
China's $50 Billion Chip Fund Switches Tack to Fight US Curbs
(Bloomberg) -- China's main chip investment fund is planning to focus on the country's key shortcomings in sectors like lithography and semiconductor design software, adjusting its approach to better overcome US efforts to stop its technological advances. Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares US Renters Face Storm of Rising Costs Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Mapping the Architectural History of New York's Chinatown US State Budget Wounds Intensify From Trump, DOGE Policy Shifts The third phase of the state-backed National Integrated Circuit Industry Investment Fund, better known as Big Fund III, will focus on backing local companies and projects in areas considered bottlenecks to technological advances, people familiar with the matter said. That includes lithography systems, where Dutch firm ASML Holding NV dominates, and chip design tools, an arena controlled by US companies Cadence Design Systems Inc. and Synopsys Inc. The new vehicle has so far secured only a portion of the 344 billion yuan ($48 billion) of capital it originally sought when first created more than a year ago as Beijing is being more cautious with its semiconductor bets, according to the people, though the shortfall should be temporary. The Big Fund III plans to hold its investments for a longer period compared to the two previous phases, they said, declining to be named discussing a private government initiative. A yearslong US-led campaign to curb China's access to chips, equipment and software has appeared to stall Beijing's ambitions in semiconductors, essential to creating cutting-edge AI. Chinese President Xi Jinping has declared the elimination of such choke-points a top priority, particularly as local artificial intelligence players including DeepSeek and Alibaba Group Holding Ltd. are trying to compete on the global stage with deep-pocketed US rivals such as OpenAI in a critical field. China's Big Fund for years sprinkled capital throughout most sectors of the semiconductor industry, from leading manufacturers such as Semiconductor Manufacturing International Corp. to small design companies. It's now adopting a more targeted approach, after massive investments during the fund's first two phases failed to deliver real breakthroughs beyond a surprisingly sophisticated Huawei Technologies Co. mobile processor in 2023. Big Fund III is preparing to make its first major investments in coming months, the people said. Part of its directive is to spur industry consolidation, through deal-making or otherwise, they added. If the new vehicle achieves the scale it originally aimed for, it will be China's largest-ever semiconductor fund, bigger than the previous two phases combined. It counts China's Ministry of Finance, state-owned banks and several local government-backed funds as limited partners, according to corporate data provider Tianyancha. It's created three sub-funds to help identify investment targets throughout the supply chain, the people said. China's Ministry of Finance did not respond to a faxed request for comment. Messages to an email for Big Fund III listed on Tianyancha went unanswered. It's unclear whether the fund's managers have identified potential investment or deal targets. Some of the biggest names in China's chipmaking equipment space include Shanghai Zhangjiang High-Tech Park Development Co., which holds an 11% stake in privately-held lithography machine maker Shanghai Micro Electronics Equipment Group Co. Chinese media outlets have also speculated that Huawei eventually wants to build its own lithography machines, required to make cutting-edge AI chips that can rival Nvidia Corp.'s offerings. Empyrean Technology Co. is one of Chinese's best hopes of competing with leading global chip design software providers including Cadence and Synopsys. China's national chip fund was inaugurated about a decade ago with roughly 100 billion yuan in capital, and has since spearheaded the state's investments in all things semiconductors. It's serving as an important signal of Beijing's policy imperatives, as well as a scorecard for government endorsement. In recent years though, it's faced setbacks in achieving its mission, both internal and external. The US banned Nvidia from selling its best AI accelerators to China, while allies such as Japan and the Netherlands have joined the campaign to ringfence the country's tech sector. Stung by a lack of scientific achievement, Beijing initiated a series of anti-graft probes into top chip industry officers in 2022. --With assistance from Fran Wang. America's Top Consumer-Sentiment Economist Is Worried How to Steal a House Inside Gap's Last-Ditch, Tariff-Addled Turnaround Push Apple Test-Drives Big-Screen Movie Strategy With F1 Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags ©2025 Bloomberg L.P. 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
Bloomberg
2 days ago
- Business
- Bloomberg
China's $50 Billion Chip Fund Switches Tack to Fight US Curbs
China's main chip investment fund is planning to focus on the country's key shortcomings in sectors like lithography and semiconductor design software, adjusting its approach to better overcome US efforts to stop its technological advances. The third phase of the state-backed National Integrated Circuit Industry Investment Fund, better known as Big Fund III, will focus on backing local companies and projects in areas considered bottlenecks to technological advances, people familiar with the matter said. That includes lithography systems, where Dutch firm ASML Holding NV dominates, and chip design tools, an arena controlled by US companies Cadence Design Systems Inc. and Synopsys Inc.
