The chip industry is making a big move. Chip design company ARM plans to issue 95.5 million ADs, and the luxury “Tiantuan” has entered the market.
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The world's biggest IPO of the year is here! Luxurious Sky Group takes action
The world's largest IPO during the year, British chip design company ARM officially announced the launch of the US stock roadshow.
Established in 1990, Arm's main business is selling “design blueprints”, or IP (intellectual property rights), for chip design companies. Arm was publicly listed on the London Stock Exchange and Nasdaq Stock Exchange in 1998.
Arm was favored by Sun Zhengyi, a global scammer at the time. In September 2016, Japan's SoftBank Group privatized ARM for 32 billion US dollars and became a wholly-owned subsidiary of the SoftBank Group.
However,SoftBank has not had a good time in recent years, and Arm has been put on the shelves.Arm submitted documents to the US Securities and Exchange Commission to list on the NASDAQ.
ARM plans to issue 95.5 million ADS shares. The price range for each ADS is between 47-51 US dollars. It is expected to raise 4.87 billion US dollars and the company's valuation is 47.8 billion US dollars to 54.5 billion US dollars. After the IPO is completed, SoftBank will hold about 90.6% of Arm's common stock.
Arm Cornerstone Investment“Heavenly Group”The lineup is luxurious, including Apple, Nvidia, Samsung, Google, Intel, AMD, MediaTek, TSMC, etc.
In the prospectus, Arm positions itself as a leader in the CPU industry. Its main business is to design, develop and license high-performance, low-cost, and energy-efficient CPU products and related technologies. The company is the world's leading semiconductor intellectual property (IP) provider. 95% of the world's smartphones, including Apple iPhones and Android phones, use Arm architectures.
It is worth mentioning that China is Arm's largest market. In fiscal years 2021, 2022, and 2023, Arm's revenue from mainland China accounted for about 21%, 18%, and 25% of its total revenue, respectively.In the 2021-2023 fiscal year, Arm's annual revenue was US$2,027 million, US$2,703 million, and US$2,679 billion, respectively; net profit was US$388 million, US$549 million, and US$524 million, respectively.
Affected by the decline in global smartphone shipments, Arm's revenue and net profit declined in fiscal year 2023.Arm's revenue for fiscal year 2023 was $2.68 billion and net profit was $524 million.
Arm may be listed on the NASDAQ next week, with the stock code “ARM”.The successful listing of Arm will be the largest IPO in the world this year.
At that time, Arm will also become the third-largest IPO in global technology history, after Alibaba's $25 billion IPO in 2014 and Meta's $16 billion IPO in 2012.
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Huawei detonates “China Core”
Huawei has released the world's first smartphone that supports satellite calls, which has attracted worldwide attention.
The Huawei Mate60 and Huawei Mate60 Pro phones went on sale in the Chinese market on August 29 and 30, making them one of the most popular mobile phone products in China.
Japanese consumers have also shown strong interest. Some Japanese netizens have posted that the Huawei Mate60 Pro has been robbed on overseas purchasing websites in Japan. The premium capacity has reached 150%, and the level of popularity has even surpassed that of domestic ones.
According to reports, the price of the Mate60 Pro 12G+1T version on the Japanese e-commerce platform has risen to 270,000 yen, totaling 13,500 yuan, far exceeding Huawei's official sales price of 7,999 yuan.
After the Japanese research agency Fomalhaut Techno Solutions got the Mate60 Pro, they immediately disassembled it and discovered that the Huawei phone did not have an American chip. The entire processor was still a self-developed chip with a new architecture. The internet speed surpassed 5G, and the internet speed was excellent in environments with weak signals such as elevators and basements.
Bloomberg has dismantled the new Huawei device and confirmed that it is a “Chinese chip.” Bloomberg published a recent article. They commissioned the professional agency TechInsights to disassemble and test the Huawei Mate 60 Pro phone. The results showed that the new Kirin 9000s chip used in the new Huawei phone came from a Chinese chip manufacturer.
Bloomberg said the processor uses SMIC's most advanced 7nm chip technology, which shows that China is making progress in building a local chip ecosystem.
Reuters commented that Huawei's latest high-end smartphone has sparked an international guessing game, and dismantling companies around the world are snapping it up one after another to see what's inside. If Chinese companies can produce their own 5G chips, this will mark significant progress in their capabilities.
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Money bucked the trend and ran out of semiconductors. Is the market heating up?
The market has been sluggish recently, but the semiconductor market is starting to heat up! On September 4, SMIC exploded 10% at the end of trading. The stock price hit a new high in 2 months, then led the A-share semiconductor industry to rebound.
The semiconductor industry can be described as having twists and turns this year. Affected by the overall weakness of the global industry and the inventory cycle, there have been two sharp retractions. Relevant indices are extremely cold, and at one point they hit a new low during the year.
From a fundamental point of view, the net profit scale of A-share semiconductor listed companies in the first half of 2023 was “at a loss” compared to that of Listed A-share Semiconductors, but there was a differentiation in segmented areas. The recovery in semiconductor equipment continued to grow in the second quarter of this year. Profits in semiconductor packaging and testing, digital chip design, and semiconductor materials rebounded sequentially, and the overall inventory turnover efficiency of the entire industry increased markedly.
In the middle of the industry's cold winter, the size of semiconductor ETFs continues to reach new heights.Capital is “the more it falls, the more it is bought,” and the share of semiconductor-related ETFs continues to increase. The latest shares have increased by 14.7 billion shares, 7.4 billion shares, 6.5 billion shares, and 6 billion shares of semiconductor-related ETFs, which are represented by the semiconductor ETF, Huaxia China Securities semiconductor chip ETF, Harvest Shanghai Science and Technology Innovation Board chip ETF, and Cathay Pacific CES semiconductor chip ETF, respectively.
(The content of this article is a list of objective data and information and does not constitute any investment advice)
As of September 6, the size of the Huaxia China Securities Semiconductor Chip ETF and the Guolian China Securities China Securities Index have all exceeded 28 billion yuan, and the size of the Cathay Pacific CES semiconductor chip ETF is close to 20 billion yuan.
According to public information, some celebrity fund managers and large institutions are also using ETFs to break the semiconductor circuit.
Two products from Yunzhou Capital, led by Zhou Yingbo, are among the top ten holders of the Harvest Shanghai Science and Technology Innovation Board Chip ETF. Among them, Yunzhou Growth Choice No. 1 holds 119 million shares, and Yunzhou Shunshi No. 2 holds 46 million shares. A number of insurances, such as China Ping An Life, Daida Life, and CITIC Prudential Life, also appeared on the list of the top ten holders of this index fund.
Affected by the continuous increase in share, semiconductor index funds have become one of the largest equity ETFs in the themed industry.
Recently, the Semiconductor Industry Association (SIA) released a report that global chip sales have been picking up for 4 consecutive months. In June 2023, global sales were US$41.5 billion, up 1.7% year on year, and domestic semiconductor sales in June also achieved a 3.2% increase over the previous year. The global semiconductor industry is showing signs of recovery after experiencing deep adjustments in 2022.
Cai Songsong of Nuoan Foundation said, “With the introduction of ChatGPT, artificial intelligence has developed by leaps and bounds. It will affect almost all of our industries, or will become the strongest industry trend in the future. Overseas leadership, from continuous iteration of large models of algorithms, to the integration of various applications into AI, to the rapid advancement of computing power chips, the industry is progressing rapidly. However, the geometric increase in computing power and the impetus of edge-side hardware are all important increases in future chip demand. The new demand will bring the inflection point of the chip cycle ahead of schedule.”