Latest news with #XIACY
Yahoo
6 days ago
- Business
- Yahoo
China's Chip Dreams Just Hit a Wall--But a New Tech Power Could Rise From the Wreckage
Xiaomi (XIACY) just unveiled a big leap in its chip journeya 3nm self-designed processor called XRING O1, built by TSMC in Taiwan. But it might be the last of its kind for a while. A new directive from the US government now restricts the sale of advanced electronic design automation (EDA) software to Chinese companies, hitting the very tools that helped make that chip possible. Sources familiar with the matter say Xiaomi, along with companies like Lenovo and Bitmain, could be first in line to feel the impact. These firms have been quietly investing years into developing their own silicon, while relying on EDA software from US players like Synopsys and Cadence. Now, with access to future updates and tech support potentially cut off, that roadmap just got a lot bumpier. Warning! GuruFocus has detected 3 Warning Signs with XIACY. The restrictions don't revoke existing licenses, but they do freeze the futureno upgrades, no fixes, no help. That's a problem, because keeping chips manufacturing-ready at TSMC demands constant fine-tuning with the latest software patches. So far, chips for smartphones and tablets appear exempt from the AI-level restrictions, but the writing is on the wall. The move signals a wider push to choke off China's long-term access to bleeding-edge chip development, not just hardware. While giants like Alibaba and Baidu also design their own processors, the exact fallout for them remains murky. But one thing is increasingly clear: China's chip strategy can't depend on foreign tools forever. That might be where the real story begins. Empyrean TechnologyChina's leading homegrown EDA providerhas been quietly building an alternative software stack. It's not yet on par with US offerings, but insiders say it's already usable for 7nm chips and above. Empyrean, along with firms like Primarius and Semitronix, saw their shares surge after news of the US restrictions broke. There's also a darker undercurrent: analysts point out that hacked versions of US EDA tools are already being used inside China. As one expert noted, It's very easy to reverse-engineer what you need. That reality helps explain why Synopsys and Cadence have seen lagging China revenues despite growing chip demand. Whether the US ban slows China downor pushes it faster toward self-reliancemay depend on how fast its EDA ecosystem matures. Either way, this fight just shifted from factories to source code. This article first appeared on GuruFocus.
Yahoo
6 days ago
- Business
- Yahoo
China's Chip Dreams Just Hit a Wall--But a New Tech Power Could Rise From the Wreckage
Xiaomi (XIACY) just unveiled a big leap in its chip journeya 3nm self-designed processor called XRING O1, built by TSMC in Taiwan. But it might be the last of its kind for a while. A new directive from the US government now restricts the sale of advanced electronic design automation (EDA) software to Chinese companies, hitting the very tools that helped make that chip possible. Sources familiar with the matter say Xiaomi, along with companies like Lenovo and Bitmain, could be first in line to feel the impact. These firms have been quietly investing years into developing their own silicon, while relying on EDA software from US players like Synopsys and Cadence. Now, with access to future updates and tech support potentially cut off, that roadmap just got a lot bumpier. Warning! GuruFocus has detected 3 Warning Signs with XIACY. The restrictions don't revoke existing licenses, but they do freeze the futureno upgrades, no fixes, no help. That's a problem, because keeping chips manufacturing-ready at TSMC demands constant fine-tuning with the latest software patches. So far, chips for smartphones and tablets appear exempt from the AI-level restrictions, but the writing is on the wall. The move signals a wider push to choke off China's long-term access to bleeding-edge chip development, not just hardware. While giants like Alibaba and Baidu also design their own processors, the exact fallout for them remains murky. But one thing is increasingly clear: China's chip strategy can't depend on foreign tools forever. That might be where the real story begins. Empyrean TechnologyChina's leading homegrown EDA providerhas been quietly building an alternative software stack. It's not yet on par with US offerings, but insiders say it's already usable for 7nm chips and above. Empyrean, along with firms like Primarius and Semitronix, saw their shares surge after news of the US restrictions broke. There's also a darker undercurrent: analysts point out that hacked versions of US EDA tools are already being used inside China. As one expert noted, It's very easy to reverse-engineer what you need. That reality helps explain why Synopsys and Cadence have seen lagging China revenues despite growing chip demand. Whether the US ban slows China downor pushes it faster toward self-reliancemay depend on how fast its EDA ecosystem matures. Either way, this fight just shifted from factories to source code. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
Salesforce Bets Big on AI with $8 Billion Informatica Acquisition
May 27 - Salesforce (NYSE:CRM) said Tuesday it will acquire cloud data management company Informatica (NYSE:INFA) in a cash deal valued at about $8 billion, as it looks to deepen its artificial intelligence offerings. Under the agreement, Salesforce will pay $25 per share for all outstanding Class A and Class B-1 common stock of Informatica. The transaction aims to bring together Salesforce's Agentforce platform with Informatica's metadata and data catalog tools to support more capable AI systems, according to a Tuesday press release. Warning! GuruFocus has detected 6 Warning Signs with XIACY. Salesforce said the acquisition supports its broader push to enable autonomous AI agents by enhancing data visibility and governance. The deal follows a wave of AI-focused moves by enterprise tech firms seeking to scale automation. Shares of Salesforce edged up 1% on Tuesday. Informatica stock rose more than 5% on the news. This article first appeared on GuruFocus. 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
19-05-2025
- Business
- Yahoo
Xiaomi Declares Chip War with $6.9B Bet
Xiaomi (XIACY) is taking its biggest swing yet at chip independencepledging a massive 50 billion yuan ($6.9 billion) investment over the next decade to build out its own mobile processor empire. The Chinese smartphone and EV giant is set to debut its first in-house chip, the Xring O1, on May 22. Built on second-gen 3nm tech, the chip won't be manufactured by domestic foundry SMIC, which is still stuck at 7nm. That suggests Xiaomi may be quietly partnering with a more advanced overseas foundrypossibly in Taiwan or South Koreato get ahead of its domestic rivals. Warning! GuruFocus has detected 6 Warning Signs with XIACY. Founder Lei Jun is framing this as a non-negotiable strategic priority. "A peak we need to climb. A hard battle we can't escape," he wrote. The move mirrors Apple's approach of controlling both hardware and software to tighten ecosystem integration. Xiaomi has already sunk over 13.5 billion yuan into chip R&D and built a 2,500-person semiconductor team. With Huawei struggling to secure advanced chips and Qualcomm still dominating the Android flagship space, Xiaomi's play could change the power dynamicsnot overnight, but the foundation is being laid. The timing is no coincidence. Xiaomi's smartphone margins have been under pressure, and its EV ambitions hit a bump after a fatal SU7 crash earlier this year. That's pushed Lei to double down on core tech as the company's next growth lever. If successful, the Xring chip won't just power Xiaomi's future phonesit could unlock a path to becoming China's version of Apple, controlling its stack from chip to chassis. Investors watching China's tech race should keep this chip rollout on their radar. It could be a slow burn, but it's one that might catch fire. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Xiaomi Declares Chip War with $6.9B Bet
Xiaomi (XIACY) is taking its biggest swing yet at chip independencepledging a massive 50 billion yuan ($6.9 billion) investment over the next decade to build out its own mobile processor empire. The Chinese smartphone and EV giant is set to debut its first in-house chip, the Xring O1, on May 22. Built on second-gen 3nm tech, the chip won't be manufactured by domestic foundry SMIC, which is still stuck at 7nm. That suggests Xiaomi may be quietly partnering with a more advanced overseas foundrypossibly in Taiwan or South Koreato get ahead of its domestic rivals. Warning! GuruFocus has detected 6 Warning Signs with XIACY. Founder Lei Jun is framing this as a non-negotiable strategic priority. "A peak we need to climb. A hard battle we can't escape," he wrote. The move mirrors Apple's approach of controlling both hardware and software to tighten ecosystem integration. Xiaomi has already sunk over 13.5 billion yuan into chip R&D and built a 2,500-person semiconductor team. With Huawei struggling to secure advanced chips and Qualcomm still dominating the Android flagship space, Xiaomi's play could change the power dynamicsnot overnight, but the foundation is being laid. The timing is no coincidence. Xiaomi's smartphone margins have been under pressure, and its EV ambitions hit a bump after a fatal SU7 crash earlier this year. That's pushed Lei to double down on core tech as the company's next growth lever. If successful, the Xring chip won't just power Xiaomi's future phonesit could unlock a path to becoming China's version of Apple, controlling its stack from chip to chassis. Investors watching China's tech race should keep this chip rollout on their radar. It could be a slow burn, but it's one that might catch fire. This article first appeared on GuruFocus. Sign in to access your portfolio
