Core Insights - The semiconductor IP sector is becoming a strategic focus for capital investment amid increasing demands for self-sufficiency in the semiconductor industry, particularly in the context of global technological competition [1][2] - A recent seminar in Shanghai highlighted the collaboration between leading semiconductor companies and state-owned capital platforms, marking a new phase of capital empowerment and upstream-downstream cooperation in China's semiconductor IP industry [1][3] Industry Overview - Semiconductor IP refers to reusable functional modules in integrated circuit design, which are crucial for the industry and essential for overcoming key technological challenges [2] - The global semiconductor IP market is projected to reach $8.49 billion in 2024, reflecting a year-on-year growth of 20.2% [2] - In Q1 2025, the semiconductor and electronic equipment sector led in investment cases and amounts, with 514 investment cases completed, a 12.5% increase year-on-year, and an investment amount of 43.476 billion yuan, up 37.0% year-on-year [2] Company Developments - Chip design company Xinyaohui recently completed a Series B financing round aimed at accelerating core technology innovation and expanding the domestic semiconductor IP market [2][3] - Xinyaohui is the only domestic supplier with a complete solution for high-speed interfaces required for large model computing chips, establishing a comprehensive and controllable IP technology system [3] Market Trends - The semiconductor IP industry is increasingly recognized for its role in simplifying chip design processes, enhancing innovation, and reducing design costs [4] - The demand for high-speed interface IP is expected to surge due to the exponential growth of parameters in large models, positioning it as a critical area for AI chip competitiveness [5] Investment Landscape - State-owned capital is playing a significant role in the semiconductor IP sector, focusing on technology innovation, industry chain collaboration, and application-driven enterprises [4][6] - The semiconductor IP market in China is anticipated to maintain rapid growth in the coming years, driven by the expansion of AI and big data industries [6] - The next 5-10 years are viewed as a golden period for breakthroughs in domestic technology and ecosystem development, presenting a prime opportunity for patient capital to support enterprise growth [6]

Core Viewpoint - The company, Canaan Inc. (688691.SH), has shown significant growth in its order backlog and is making strides in various sectors, including automotive chips and artificial intelligence, as highlighted in its Q1 2025 report [1][5]. Group 1: Financial Performance - As of the end of Q1 2025, the company's order backlog reached 899 million yuan, reflecting a quarter-on-quarter increase of 11.38%, indicating strong future performance support [2]. - The pre-received payments from downstream customers amounted to 300 million yuan, an increase of 87 million yuan compared to the end of the previous year, further confirming the company's robust order situation [2]. Group 2: Chip Customization Services - The company is advancing in one-stop chip customization services, with multiple projects entering the design phase, including a charging pile power control chip and the first domestic MRAM control chip [3]. - Canaan Inc. focuses on domestic independent process platforms and has established strategic partnerships with leading foundries like SMIC, which enhances its market position amid the accelerating domestic substitution in the semiconductor sector [3]. Group 3: Expansion into New Fields - The company is actively developing automotive chips, particularly high-performance MCUs, which are crucial for the growing demand in the automotive electronics sector [4]. - In the artificial intelligence and data center domains, the company has validated its self-developed high-speed interface IP across multiple process platforms, catering to the needs for high bandwidth and low latency [4]. - The company is collaborating with packaging manufacturers to develop advanced 2.5D/3D interconnect solutions, enhancing signal transmission efficiency in advanced packaging [4].