Core Insights - MetaX, a Shanghai-based AI chip start-up, has received approval to list on Shanghai's Star Market, highlighting China's growing AI investment and its potential competition with Nvidia [1] Company Overview - Founded in 2020 by former AMD veterans, MetaX is known in Chinese as Muxi and has R&D centers in multiple cities including Beijing, Nanjing, and Shenzhen [2] - As a fabless chip designer, MetaX focuses on designing microchips rather than manufacturing them, producing N-series GPUs for AI inference, C-series chips for general computing, and G-series processors for graphics rendering [4] Product Development - The latest flagship processor, MetaX C600, launched in July, features HBM3e high-bandwidth memory and supports FP8 precision for efficient AI model training, with 144GB of memory and mass production expected by year-end [5] Financial Backing - MetaX has raised over 10 billion yuan (approximately US$1.4 billion) across nine funding rounds, achieving a valuation of 21 billion yuan in its latest round, supported by notable venture capital firms and state-linked investors [6][7] IPO Plans - The company aims to raise 3.9 billion yuan through its IPO to fund the development and industrialization of next-generation high-performance GPUs and AI-inference GPU projects [8]

Summary of Greater China Semiconductors Conference Call Industry Overview - The conference call focused on the Greater China semiconductor industry, highlighting recent developments in domestic DUV testing and the AI chip market. Key Companies Discussed - **SMIC (Semiconductor Manufacturing International Corp)**: Testing China's first domestic DUV lithography tool from Yuliangsheng - **Yuliangsheng (YLS)**: A Shanghai start-up producing DUV lithography tools - **Nvidia**: Mentioned in the context of a ban on its RTX Pro 6000D chips for Chinese CSPs - **ASMPT**: Equipment vendor expected to benefit from increasing demand - **Wanye**: Another equipment vendor mentioned in relation to domestic demand - **Cyberspace Administration of China (CAC)**: Regulatory body involved in the ban on Nvidia chips Core Insights - **Domestic DUV Lithography Tool**: SMIC is testing YLS's DUV lithography tool, marking a significant step towards self-reliance in wafer fabrication equipment (WFE) in China. However, the tool is still in the demo phase and may take 1-2 years to achieve high-volume production viability [1] - **Ban on Nvidia Chips**: The CAC's instruction to halt testing and cancel orders for Nvidia's RTX Pro 6000D was anticipated due to low demand among Chinese CSPs [1] - **AI Chip Market**: Domestic AI chips such as Ascend, Cambricon, and Kunlunxin are improving in performance, which is expected to sustain positive sentiment in the Chinese AI chip market and its supply chain [1] Financial Projections and Valuations - **ASMPT**: Target price set at HK$85 based on a 22x 2026E P/E, driven by expected revenue recovery from TCB order wins and stabilization in SEMI and SMT markets [4] - **OmniVision**: Target price of Rmb180 based on a 50x 2025E P/E, justified by anticipated strong earnings growth from automotive market share gains [6] - **SG Micro**: Target price of Rmb100 based on a 65x 2026E EPS, reflecting early-stage analog localization in China [8] - **Wanye**: Target price of Rmb13.0, reflecting a discount due to underperformance in revenue growth and profitability [10] - **SMIC**: Target price of HK$53.0 based on a 2.4x 2026 P/B, supported by US-China decoupling demand and gradual industry recovery [13] Risks Identified - **ASMPT**: Risks include a worsening semiconductor outlook, market share loss, and competition [5] - **OmniVision**: Risks involve pricing pressure in automotive CIS, market share loss, and competition [7] - **SG Micro**: Risks include price competition, inventory corrections, and demand slowdowns [9] - **Wanye**: Risks include supply chain disruptions due to US restrictions and underperformance in revenue growth [11] - **SMIC**: Risks include margin pressures from depreciation, weak policy support, and demand fluctuations [15] Additional Insights - The ongoing developments in the semiconductor industry reflect a broader trend towards localization and self-sufficiency in China, particularly in response to geopolitical tensions and export restrictions from the US [1][3] - The positive sentiment surrounding domestic AI chips indicates a potential shift in market dynamics, favoring local manufacturers over foreign competitors [1] This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the Greater China semiconductor industry.