Core Viewpoint - Chip manufacturer Chip Origin Co., Ltd. (688521.SH) is planning to acquire a stake in Chip Lai Zhi Rong Semiconductor Technology (Shanghai) Co., Ltd. to transform into a leader in AI ASICs, amidst a wave of mergers and acquisitions in the A-share market [2][6]. Group 1: Acquisition Details - Chip Origin announced plans to purchase equity in Chip Lai Zhi Rong through a combination of issuing shares and cash, while also raising supporting funds [2]. - The acquisition is still in the planning stage, and the specific transaction details, including valuation, are yet to be determined [2][3]. - Chip Origin currently holds a 2.99% stake in Chip Lai Zhi Rong and aims to acquire full or controlling ownership [5]. Group 2: Financial Performance - In the first half of 2025, Chip Origin reported a net loss of 320 million yuan, which is an increase compared to the same period last year [3][11]. - Despite the losses, the company's stock price has surged over six times since September 2022, from a low of 24.45 yuan per share to a peak of 174.98 yuan before the trading halt [3]. - The company’s IP licensing revenue for the first half of 2025 was 281 million yuan, marking an 8.2% year-on-year increase [11]. Group 3: Market Position and Strategy - Chip Lai Zhi Rong, founded by Hu Zhenbo, is a pioneer in RISC-V architecture and has developed several CPU IP product lines, with over 300 domestic and international clients [4][5]. - Chip Origin is a key player in promoting the RISC-V ecosystem in China, having established the China RISC-V Industry Alliance with 204 member units as of June 2025 [5]. - The acquisition is expected to enhance Chip Origin's full-stack IP capabilities, particularly in AI and IoT applications, which are projected to grow significantly [6][12]. Group 4: Industry Trends - The RISC-V architecture is gaining traction as a foundation for AI chips, with market penetration expected to rise from 5.9% in 2024 to 25.7% by 2031 [7]. - The demand for RISC-V based SoC chips is projected to exceed 20 billion units by 2031, with significant market shares in consumer electronics, computing, and automotive sectors [7]. - Chip Origin's ASIC business has seen a substantial increase in new orders, with design business new orders exceeding 700 million yuan in Q2 2025, reflecting a growth of over 700% quarter-on-quarter [10].

Group 1 - Semiconductor stocks continue their recent upward trend, with notable increases in share prices: SMIC up 5.52% to HKD 59.3, GlobalFoundries up 4% to HKD 0.52, Fudan Microelectronics up 2.66% to HKD 34.7, and Hua Hong Semiconductor up 2.26% to HKD 54.4 [1] - Deepseek officially released the DeepSeek-V3.1 version, which utilizes UE8M0 FP8 Scale parameter precision, indicating advancements in the design of next-generation domestic chips that are expected to see large-scale application [1] - Dongfang Securities highlights that the new generation of domestic chips is beginning to support FP8, including models such as Muxi 690, Chip Origin VIP9000, Cambricon 690, Moore Threads MUSA 3.1 GPU, and Haiguang Deep Computing No. 3 [1] Group 2 - The firm believes that with improvements in domestic AI chip design technology and manufacturing processes, along with the ongoing development of domestic large models and their compatibility with domestic chips, the market share of domestic computing power is expected to continue to rise [1] - The ongoing bullish trend in domestic chips is anticipated to persist, driven by advancements in technology and increasing market demand [1]