Latest news with #BigFundIII
Yahoo
5 days ago
- Business
- Yahoo
Top China Tech Stocks to Add to Your Portfolio for Impressive Returns
An updated edition of the June 4, 2025 technology sector presents an exceptional investment opportunity in 2025, driven by breakthrough innovations, massive government support and attractive valuations. The convergence of AI leadership, semiconductor advancement and strategic government backing creates unprecedented growth potential across multiple high-tech industries and their constituent players like Bilibili BILI, NetEase NTES and VNET Group VNET. AI Revolution Demonstrates Global Leadership DeepSeek's groundbreaking R1 model has fundamentally shifted the AI landscape, matching OpenAI's performance at just $5.6 million in training costs versus tens of millions for Western competitors. This remarkable cost efficiency, combined with China's open-source approach, demonstrates superior technological capabilities. The sector receives unprecedented support through the $138 billion National Venture Capital Guidance Fund announced in March 2025, targeting AI development with massive financial AI infrastructure expansion targets 300 EFLOPS computing power by 2025, while the "AI+ Initiative" integrates AI across all economic sectors. Alibaba BABA Cloud reported 18% revenue growth in the first quarter of 2025, with AI products maintaining triple-digit growth for seven consecutive quarters, highlighting robust commercial momentum and market adoption. Semiconductor Sector Achieves Strategic Breakthrough The $47.5 billion Big Fund III represents China's largest semiconductor investment, while SMEE's 28nm lithography machine marks crucial progress toward manufacturing independence. Chinese foundries achieved 8.85 million wafers monthly production in 2024, projecting 10.1 million wafers by 2025. SMIC's record $8.03 billion revenues with 27% growth demonstrate strong financial performance despite international semiconductor sector benefits from 37% lower manufacturing costs compared to the United States, while targeting 30% of global foundry capacity by 2030. Successful 7nm chip production using domestic technology proves China's capability to overcome technological barriers and achieve strategic autonomy in critical technologies. Robotics and Space Exploration Lead Innovation China's robotics sector achieved historic milestones with the world's first humanoid robot half-marathon in Beijing, showcasing advanced AI integration. The sector is projected to reach $14.6 billion in market value by 2034, with Chinese companies controlling 63% of global humanoid robot supply chains, per Market Research Future report. Manufacturing robot installations reached 276,288 units in 2023, representing 51% of global exploration achievements include Chang'e-6's successful lunar far-side sample return and breakthrough satellite laser ranging technology. China's commercial space sector is targeted to reach $344 billion by 2025, supported by robust government investment and rapid private sector expansion, according to a Space Insider report. Attractive Market Valuations Present Opportunity Chinese technology stocks trade at substantial discounts with P/E ratios of 11-15x versus U.S. markets at 26x, while the Hang Seng Tech Index has surged 30% year to date in 2025. Companies like Tencent Holdings TCEHY and Alibaba demonstrate strong fundamentals with solid revenue growth and expanding market leadership. The regulatory environment has shifted toward innovation support, removing investment restrictions and launching multiple funding programs, thus creating an exceptional investment window for China's technology believe that rapid advancements in Chinese technology and huge spending on its development efforts offer significant growth opportunities for investors. Our China Tech Screen is an invaluable source for identifying stocks with massive growth prospects in the 30 cutting-edge investment themes with Zacks Thematic Screens and uncover your next big opportunity. 3 Chinese Tech Stocks to Buy Right Now Bilibili: This Zacks Rank #1 (Strong Buy) company presents compelling investment opportunities, driven by strong operational improvements and strategic positioning. The company's first-quarter 2025 results demonstrated remarkable progress with 24% revenue growth to RMB7 billion, a 99% reduction in GAAP net loss to just RMB11 million, and expansion of gross profit margin to 36.3% from 28.3% in the year-ago period. Gaming revenues surged 76% while advertising revenues grew 20%, with performance-based ads increasing more than 30%. You can see the complete list of today's Zacks #1 Rank stocks platform's user engagement remains robust with 107 million daily active users spending 108 minutes daily, while monthly paying users reached a record 32 million. Bilibili's dominant position among China's Gen Z demographic, combined with successful cost-cutting initiatives and improving profitability metrics, positions the stock favorably for continued growth as the company approaches its long-term margin This Zacks Rank #2 (Buy) company is benefiting from exceptional financial momentum and a robust game pipeline. The company delivered outstanding first-quarter 2025 results with gaming revenues surging 12.1% year over year to RMB24.0 billion and net income jumping 35% to RMB10.3 billion, demonstrating strong operational leverage. NetEase's technological differentiation through AI-powered NPCs and NVIDIA ray tracing partnerships, combined with fair monetization models, positions the company to capture market share. With a strong balance sheet holding RMB137 billion in net cash and multiple high-potential launches scheduled for the second half of 2025, NTES offers attractive risk-adjusted returns for growth-oriented investors. NetEase's diverse portfolio continues to gain traction globally, with Marvel Rivals topping Steam charts, Where Winds Meet reaching 30 million players and multiple titles ranking among top sellers. The upcoming catalyst-rich pipeline includes Sword of Justice's global expansion (already achieving 40+ million players in China) and innovative titles like Planet Party Time. VNET Group: This Zacks Rank #2 company presents a solid investment opportunity with its first-quarter 2025 results showcasing exceptional 18.3% revenue growth and 26.4% adjusted EBITDA growth, driven by surging AI-related demand in China's data center market. The company's wholesale business delivered record revenues of RMB 673 million, up 86.5% year over year, while capacity utilization reached 76.2% with 573MW in service. VNET's strategic positioning is strengthened by its $50 million share buyback program and raised 2025 guidance projecting RMB 9.15-9.35 billion in revenues. With Moody's upgrading the company's credit rating to B2 and massive capital expenditure plans of RMB 10-12 billion targeting 400-450MW delivery capacity, VNET is perfectly positioned to capitalize on China's AI infrastructure boom while offering substantial upside potential from current levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NetEase, Inc. (NTES) : Free Stock Analysis Report Tencent Holding Ltd. (TCEHY) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report VNET Group, Inc. - Unsponsored ADR (VNET) : Free Stock Analysis Report Bilibili Inc. Sponsored ADR (BILI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Time of India
29-06-2025
- Business
- Time of India
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. 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 years long 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.
Yahoo
28-06-2025
- 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.
Time of India
28-06-2025
- Business
- Time of India
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. 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 years long 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.
Time of India
28-06-2025
- Business
- Time of India
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. 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. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Victoria Principal Is Almost 75, See Her Now Reportingly Undo A years long 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. Live Events 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.
