Latest news with #CadenceDesignSystems
Yahoo
4 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
4 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.
Yahoo
22-06-2025
- Business
- Yahoo
Returns On Capital At Cadence Design Systems (NASDAQ:CDNS) Have Stalled
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. That's why when we briefly looked at Cadence Design Systems' (NASDAQ:CDNS) ROCE trend, we were pretty happy with what we saw. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Cadence Design Systems: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.19 = US$1.5b ÷ (US$9.0b - US$1.3b) (Based on the trailing twelve months to March 2025). Thus, Cadence Design Systems has an ROCE of 19%. In absolute terms, that's a satisfactory return, but compared to the Software industry average of 9.5% it's much better. Check out our latest analysis for Cadence Design Systems Above you can see how the current ROCE for Cadence Design Systems compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Cadence Design Systems . While the returns on capital are good, they haven't moved much. The company has employed 180% more capital in the last five years, and the returns on that capital have remained stable at 19%. Since 19% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Over long periods of time, returns like these might not be too exciting, but with consistency they can pay off in terms of share price returns. On a side note, Cadence Design Systems has done well to reduce current liabilities to 14% of total assets over the last five years. This can eliminate some of the risks inherent in the operations because the business has less outstanding obligations to their suppliers and or short-term creditors than they did previously. In the end, Cadence Design Systems has proven its ability to adequately reinvest capital at good rates of return. On top of that, the stock has rewarded shareholders with a remarkable 215% return to those who've held over the last five years. So even though the stock might be more "expensive" than it was before, we think the strong fundamentals warrant this stock for further research. Cadence Design Systems could be trading at an attractive price in other respects, so you might find our on our platform quite valuable. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. 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 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
Yahoo
21-06-2025
- Business
- Yahoo
Apple Hardware Executive Says iPhone Maker Plans To Use AI For Speeding Up Custom Chip Design: 'High Potential In Getting More Design Work In Less Time'
Apple Inc. (NASDAQ:AAPL) is reportedly looking to harness the power of generative artificial intelligence to accelerate the development of the custom chips that power its devices, according to senior executive Johny Srouji. What Happened: During a speech in Belgium last month, Apple's senior vice president of hardware technologies, Srouji, said the company is exploring generative AI to streamline chip design, calling it a major productivity opportunity, reported Reuters on Wednesday. "Generative AI techniques have a high potential in getting more design work in less time, and it can be a huge productivity boost," Srouji said, according to a recording reviewed by the publication. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share. He made the remarks while accepting an award from Imec, a prominent semiconductor R&D organization. During his speech, Srouji highlighted that electronic design automation (EDA) firms like Cadence Design Systems (NASDAQ:CDNS) and Synopsys Inc. (NASDAQ:SNPS)—both racing to integrate AI—are critical to managing the complexity of Apple's chip development. Srouji also reflected on Apple's bold move in 2020 to replace Intel Corp (NASDAQ:INTC) chips in Mac computers with its own Apple Silicon. He said that it was a major takeaway from Apple's chip development journey was the importance of making bold decisions and moving forward without hesitation. "There was no backup plan, no split-the-lineup plan, so we went all in," he said. "Including a monumental software effort." Why It's Important: Last month, it was reported that Apple is developing new chips to power upcoming smart glasses, AI servers and future Macs. Apple aims to launch it by 2026–2027. Meanwhile, the M5 chip, built on the advanced 3nm N3P architecture, has reportedly entered mass production and is expected to enhance the MacBook Pro, iPad Pro and Vision Pro—especially with upcoming Apple Intelligence features. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo Courtesy: Prathmesh T on UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Apple Hardware Executive Says iPhone Maker Plans To Use AI For Speeding Up Custom Chip Design: 'High Potential In Getting More Design Work In Less Time' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
South China Morning Post
20-06-2025
- Business
- South China Morning Post
China's top player Empyrean eyes opportunities from US chip curbs on design software
Chinese chip-design software company Empyrean Technology has pledged to become one of the world's top electronic design automation (EDA) providers, as new US export restrictions bring both opportunities and challenges to the domestic industry. Founded in 2009 and based in Beijing, Empyrean aims to ascend to the top tier of EDA providers, capitalising on the struggles faced by its US competitors in selling to China because of new export controls on chip-design software, said Yu Han, a senior market director at Empyrean, at the World Semiconductor Conference in Nanjing, capital of eastern Jiangsu province, on Friday. The remarks came after Cadence Design Systems, Synopsys and Siemens EDA – the three leading EDA suppliers that collectively hold about 80 per cent of the global market share – confirmed they had received notices from the US Commerce Department's Bureau of Industry and Security regarding new export restrictions on software that could be used for developing advanced artificial intelligence chips. Those export controls have raised hopes among Chinese investors and analysts that local companies could seize new market opportunities. Besides Empyrean, other domestic EDA tool vendors, such as Primarius Technologies and Semitronix , have also garnered attention. Play Yu said China currently had over 100 domestic EDA companies, with Empyrean capturing half of that market share. He said Empyrean was the only Chinese company positioned among the second-tier global EDA providers, along with US firms Ansys and Keysight Technologies.
