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China's widening gap between strong factory output and weak domestic demand is becoming increasingly pronounced in the automotive sector, where exports are offsetting slowing sales at home.
The country's domestic car sales fell 21% in the first half of the year, while exports jumped 65.3%, according to data published on July 9 by the China Association of Automobile Manufacturers (CAAM).
HSBC lowered its forecast for China's full-year passenger car demand growth from flat growth to a 5% decline, citing the end of some <a href="/industry/ev">electric vehicle</a> subsidies and collapsing demand for gasoline-powered cars as high oil prices accelerate the shift to electric vehicles.
"With domestic demand still subdued, exports remain an important support for utilization, earnings resilience and mix improvement," HSBC analysts said.
All-electric and plug-in hybrid vehicles accounted for a record 46% of China's car exports in the January-June period, up 12 percentage points from a year earlier.
China "precisely meets the global market's strong demand for energy-efficient vehicles amid fluctuating gasoline prices," said Cui Dongshu, secretary general of the China Passenger Car Association.
Brazil, Australia, the UK, Italy, and Thailand accounted for the biggest increases in China's EVs exports in the first five months, with Brazil leading the growth.
Chinese automakers are increasingly relying on overseas markets. Chery and Great Wall Motor have recently generated more than half of their sales from exports, while <a href="/company/byd">BYD</a>, <a href="/company/geely">Geely</a>, and <a href="/company/xpeng">Xpeng</a> have raised their overseas sales targets for 2026 by 15%, 17% and 11%, respectively.
Chery, China's largest automotive exporter, shipped 940,000 vehicles overseas in the first six months of the year, nearly 70% of its total sales, driven by demand in the Middle East, Latin America, and Europe. It aims to export more than 1.5 million vehicles in 2026.
DFSK, a minivan maker owned by Chongqing-based Seres Group, is shifting its focus to exporting higher-end SUVs to Southeast Asia and Latin America.
"We have made overseas markets a clear strategic priority," DFSK president Amy Gong told Nikkei Asia.
The company unveiled a six-seat hybrid SUV at the Hong Kong automotive show last month and plans to enter Indonesia and Argentina. Gong said tariffs mean its vehicles are priced at 1.5 to 2 times their domestic prices in overseas markets, targeting mid- to high-end consumers.
The export boom has coincided with rising trade barriers.
The European Commission announced <a title="" href="https://asia.nikkei.com/business/automobiles/the-unstoppable-rise-of-china-made-cars-in-europe-5-things-to-know" target="_blank" rel="noopener">additional import tariffs</a> on Chinese EVs on July 4, 2024, after their manufacturers were deemed to have unfairly benefited from China's state subsidies.
Turkey suspended import tax exemptions for BYD last month and warned the company it <a title="" href="https://asia.nikkei.com/business/automobiles/electric-vehicles/turkey-halts-byd-tax-break-warns-of-clawback-if-it-misses-1bn-plan" target="_blank" rel="noopener">could face repayments</a> if it fails to fulfil a USD 1 billion commitment to begin local operations.
Southeast Asian markets are also becoming more restrictive. After tariff exemptions expired in countries including Thailand, Indonesia, and Malaysia at the end of 2025, governments increasingly required local assembly instead of direct imports.
Mexico also slapped a 50% tariff on Chinese EVs at the beginning of this year and has indefinitely paused plans that would allow BYD to build a factory there.
The CAAM cautioned that a "conservatively optimistic" attitude should be taken toward the export outlook for the second half of the year.
"The external environment is complex and volatile," Chen Shihua, CAAM's deputy secretary general told reporters. "We need to closely monitor the international climate and steadily expand into global markets."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/electric-cars-in-china/china-automakers-shift-gears-to-exports-as-domestic-demand-weakens">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

China automakers shift gears to exports as domestic demand weakens

Transportation

Electric Vehicles

Mobility

China

<a href="/company/dreame">Dreame Technology</a> ranked first worldwide in robot vacuum sales in the first quarter of 2026, according to IDC data, accounting for 23.7% of units sold and 28% of revenue, based on IPO Zaozhidao’s estimates.
The company, however, is increasingly expanding beyond robot vacuums into a broader range of appliances and <a href="/industry/robotics">robotics</a>-related technologies.
Around 2017, China’s home appliance sector was growing rapidly. A common approach was to buy off-the-shelf motors and sensor systems, assemble finished products, bring them to market quickly, and use traffic-driven marketing to gain market share.
Before Dreame was established, founder Yu Hao and his team chose to develop high-speed digital motors in-house, despite the time and capital required. The component is central to cleaning appliances, affecting suction, noise, and product life.
At the time, established overseas companies dominated the technology. Their products were expensive, and their most advanced solutions were generally unavailable to outside buyers. Most appliance makers therefore relied on procurement, which was faster and less risky than internal development.
Dreame took the opposite approach. It viewed control of core technology as essential to improving performance and reducing its dependence on suppliers. Drawing on fluid dynamics principles used in aerospace engineering, Yu and his team developed capabilities in aerodynamic design, electromagnetic architecture, drive control, and thermal management.
The resulting motor delivered higher aerodynamic efficiency, better noise control, and lower production costs than externally sourced alternatives available at the time, according to the company. It also became a technical foundation that Dreame could adapt across categories, allowing it to expand into products such as hair dryers without rebuilding its core capabilities. This improved R&amp;D efficiency and helped control costs.
whereRelatedArticle
Motors, however, are only one part of Dreame’s technology portfolio. The company has also invested in perception algorithms, robotic motion control, and spatial semantic understanding, capabilities with applications beyond robot vacuums.
A high-end robot vacuum is effectively a compact mobile robot. It combines 3D spatial perception, multisensor fusion, <a href="/industry/ai">artificial intelligence</a>-powered decision-making, and motion control. These same capabilities are relevant to home service robots, giving Dreame experience in operating autonomous machines in domestic environments.
That experience is becoming more relevant as AI moves from software into physical products. For years, much of the sector focused on large models and their performance in areas such as reasoning, accuracy, and content generation. The next stage is likely to involve systems that can perceive their surroundings, interpret tasks, and act autonomously.
Dreame’s products already draw on those three capabilities. Its systems detect changes in their environment, make decisions, and adjust their actions in real time. This could support the company’s expansion into a broader range of robotics products, although its ability to turn those capabilities into commercially viable businesses remains unproven.
The comparison with the smartphone industry is useful, but limited. The iPhone evolved from a consumer device into a platform for digital services. Dreame is attempting to use its appliance and robotics technologies as a foundation for products that connect AI with the physical world.
As AI systems become more capable of operating in real environments, new opportunities are likely to emerge in robotics and intelligent hardware.
Dreame’s position rests on two main advantages:
<ul>
<li aria-level="1">A commercial base supported by its global market share, revenue from existing products, and expansion across multiple categories.</li>
<li aria-level="1">Its investment in technologies that support embodied intelligence, including perception, decision-making, and autonomous execution in real-world environments.</li>
</ul>
This <a href="https://xueqiu.com/2854806290/400581850">article</a> was adapted based on a feature originally written by Stone Jin and published on IPO Zaozhidao. KrASIA is authorized to translate, adapt, and publish its contents.

Dreame’s technology strategy could compound its advantage in physical AI

East Asia

Dreame

Consumer Economy

… selected.
Coordination with Anta’s domestic supply chain, however, reportedly failed to keep pace. The production cycle was shortened from the usual eight months to four months. The US team held only two production coordination sessions before the product was brought to market, where its performance fell short of expectations.
Since Irving signed with Anta, the line has released two flagship products. Neither has generated significant sales or sustained consumer attention, according to people familiar with the business.
36Kr also learned that Xu led a proposed endorsement deal with Stephen Curry that had reached the product design stage. Anta offered as much as USD 70 million, but Ding Shizhong ultimately halted the deal.
whereRelatedArticle
The proposal was abandoned as Anta’s basketball business was weakening.
According to brokerage firms that track <a href="/industry/e-commerce">e-commerce</a> platform data, sales of Anta basketball shoes totaled about RMB 50 million (USD 7.4 million) in the third quarter of 2025. That was substantially below sales of its running shoes, casual footwear, and skate-style sneakers.
With annual revenue exceeding RMB 80 billion (USD 11.8 billion), Anta Group has built extensive capabilities in operating efficiency, supply chain management, and retail distribution. Its integration of Amer Sports, along with the growth of brands such as Descente and Kolon Sport, has also demonstrated its ability to manage a portfolio of brands across markets.
For the flagship Anta brand, however, the central challenge remains unresolved: how can it balance growth with brand equity, and its distributor network with retail innovation?
Xu’s departure may indicate that the brand is stepping back, at least temporarily, from aggressive retail expansion and refocusing on efficiency. That shift would draw on Anta Group’s established strengths in distribution and supply chain management to support its core namesake brand.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3889213745543687">article</a> was written by He Zhexin and Ren Cairu for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.78 = USD 1 based on estimates as of July 17, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Anta brand CEO Xu Yang steps down as retail expansion slows

Retail

Multiple independent sources told 36Kr that Z.ai’s annual recurring revenue (ARR) reached USD 1 billion in July.
Over the past year, coding and video generation models have emerged as two of the <a href="/industry/ai">artificial intelligence</a> sector’s strongest revenue drivers.
Outside China, Anthropic’s Claude Code reached USD 1 billion in ARR just six months after its launch. The product’s growth also helped lift Anthropic’s valuation to nearly USD 1 trillion in May, surpassing OpenAI.
Investors, however, had long questioned whether Chinese foundation model companies could replicate Anthropic’s financial success.
Anthropic benefits from operating in North America, where businesses are more willing to pay for software and the subscription ecosystem is more mature. Its valuation is also roughly an order of magnitude above Z.ai’s latest market capitalization, giving it access to a deeper pool of capital for the computing capacity and other resources needed to train models. Chinese developers have yet to match that advantage.
But an investor told 36Kr that Z.ai reached the milestone much sooner than expected. The company had not been projected to reach an ARR of USD 1.0–1.5 billion until the end of 2026, the investor said.
A direct comparison illustrates the pace of its growth. According to Anthropic’s disclosures and Z.ai’s financial reports, Anthropic took 15 months to increase its ARR from USD 100 million to USD 1 billion. Z.ai took five months.
A person familiar with the matter said Z.ai’s ARR grew 15-fold from January to July this year.
Z.ai was among the first Chinese artificial intelligence model developers to focus heavily on coding as a use case. In early 2025, it began concentrating its resources on improving its models’ coding capabilities. Founder Jie Tang has described coding and reasoning as central to Z.ai’s strategy, arguing that both capabilities can advance alongside AI agents and support their development.
Z.ai subsequently released a series of flagship models, averaging about one every two months. Their coding performance placed them among the leading models globally.
The company released its latest model, GLM-5.2, last month. The open-source model reportedly matched or outperformed Claude Opus 4.8 and GPT-5.5 on several benchmarks.
Z.ai has said the commercial value of foundation models depends on the relationship between model intelligence and token consumption. The company argues that usage will continue to grow as long as a model maintains a capability lead.
Z.ai’s financial results showed that it raised GLM API prices by a cumulative 83% in the first quarter. Its international subscription prices approached those of Claude Code, while usage increased by about 400%.
As token consumption becomes an increasingly important measure of model monetization, coding and video generation models represent two distinct business models. Coding models power productivity tools sold directly to businesses and developers, while video-generation models are increasingly being integrated into industrial-scale content production workflows.
Revenue growth suggests that demand for coding models is becoming more established. A similar pattern is emerging in video generation. Seedance 2.0 is reportedly generating nearly RMB 1 billion (USD 147.5 million) in monthly revenue. Goldman Sachs, meanwhile, forecasts that Kling AI’s ARR could reach USD 1 billion by the end of the year.
As the commercial opportunity becomes clearer, competition is intensifying.
MiniMax released M3 in June, with a focus on strengthening its coding and agent capabilities. On July 16, Moonshot AI released Kimi K3, an open-source model with 2.8 trillion parameters. Its overall intelligence performance reportedly trails only Claude Fable 5 and GPT-5.6 Sol.
Competition is also intensifying outside China. By releasing GPT-5.6 and integrating ChatGPT with Codex, OpenAI is seeking to regain ground in AI coding.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3898662052693894">article</a> was written by Zhou Xinyu for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.78 = USD 1 based on estimates as of July 17, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

China’s Z.ai reaches USD 1 billion in ARR after 15-fold growth in six months

Artificial Intelligence

Deep Tech

Foundation and Large Models

… Do you agree that AI has brought all players back to the same starting line?</h3>
WX: Not really.
Scale effects are very important. To be honest, for the same thing, investing 800 people and investing only two or three people are completely different. Behind a product, there is more engineering than algorithms.
Engineering requires real investment. It cannot be solved just by vibe coding and being smart enough. That is why we built shared product platforms, trying to turn the dirty and labor-intensive parts of engineering into reusable pipelines.
<h3>36Kr: Meitu is a company that has succeeded many times, and each of its products is in a highly competitive space. What have you learned?</h3>
WX: Most successful products begin in scenarios where there is no competition. For the four new products released this time, there are hardly any competitors in the market. We are only competing with ourselves.
Also, Meitu is best at running marathons. We have competed with <a href="/company/tencent">Tencent's</a> Pitu and <a href="/company/baidu">Baidu</a> Motu many times before. If you persist, product quality will speak for itself.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3877112973733895">article</a> was written by Zhou Xinyu for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.78 = USD 1 based on estimates as of July 16, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

For Meitu, the next AI product may come from data, passion, or both

… home, you first need to ask what it is entering the home to do. If it is entering to do work, meaning housework, that is a world-class problem at this moment. We are exploring it, but we will not bring it to market so quickly.
But if it is entering the home to provide emotional value plus partial functional value, such as addressing anxiety in the AI era, English learning, and companionship, then current technology already exceeds scenario demand. So the bottom line for entering the home is safety, and the upper bound is intelligence. If we hold the bottom line and continue exploring upward at the upper bound, household scenarios will gradually open up, moving step by step from simple tasks and simple scenarios toward complexity.
Behind each step, we have a complete system plan for the body, low-level motion-control system, and AI brain.
<h3>36Kr: Some in the industry say development of the robot body has hit a bottleneck, and intelligence is the next challenge. What do you think?</h3>
TH: This depends on the scenario. Intelligence is indeed significant, and it is used to solve work and create productivity value. But body hardware is far from truly mature. Today’s bodies have, at most, reached what is considered usable. They are still quite far from being easy to use. This requires technology advancement in robot joints, sensors, lightweight materials, battery energy density, and more. There is still a long way to go.
<h3>36Kr: Standardization in the robotics supply chain seems poor, and each manufacturer tends to be fairly nonstandardized. Will the industry move toward full standardization and large-scale mass production like the automotive sector?</h3>
TH: China produces more than 30 million cars a year, all standardized, with one rolling off the production line every minute. Robots will certainly reach a high level of standardization in the future as well.
Right now, robotics is in the middle of moving from a nonstandardized state to a standardized one. We are also calling for this and actively participating. At the national level, work has already begun to organize committees and other bodies to formulate industry standards for embodied intelligence. Clear standards for core components are worth looking forward to.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3877003233898501">article</a> was written by Peng Li for 36Kr.

Through Qiyuan, Swancor wants to make personal robots widely affordable

Robotics

Chinese retailer <a href="/company/miniso">Miniso</a> is betting its next phase of overseas growth on a portfolio of proprietary IP, backed by plans to open 100 stores in the US this year.
The company has signed 30 artists globally, including those from Japan, South Korea, and Thailand, prioritizing original characters rather than licensed external brands for future growth, Miniso CMO Robin Liu told Nikkei Asia. About a third of those artists have had their characters turned into merchandise that is now on sale.
The New York Stock Exchange-listed company has been collaborating with brands like Disney's Marvel, Peanuts, and Japan's Sanrio since 2019 to produce lifestyle and apparel products using its network of suppliers. Miniso now wants to build character branding it owns outright.
"We need the capability to incubate and operate these IPs, create higher commercial value," Liu said in an interview. "This also ensures our product offering is unique."
The Chinese brand, which opened its first store in Guangzhou in 2013, operates thousands of discount variety shops selling goods that range from stationery and toys to cosmetics and clothing.
Its first original character, "Yoyo," launched in June last year and within six months garnered RMB 100 million (USD 14.7 million) in sales, primarily in China. Liu expects the character to generate roughly RMB 800 million (USD 117.8 million) in revenue this year.
Liu said the company visited Netflix and Sony Pictures to explore the possibilities of turning Miniso's characters into a film or other content.
"We might engage in deeper collaborations in the future, but I think it will be a gradual process," he added.
To introduce Miniso's characters to the US market and raise its brand awareness, the company launched an exhibition at New York's Grand Central Station, featuring 50 Yoyo character sculptures last month. It opened a similar gallery in Shanghai's Bund City Hall Plaza in May.
<figure id="attachment_163015" aria-describedby="caption-attachment-163015" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-163015" src="https://console.kr-asia.com/wp-content/uploads/2026/07/Miniso-Yoyo-Exhibition-New-York.jpg" alt="Photo shows Miniso's Yoyo character on display at a New York exhibition." width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2026/07/Miniso-Yoyo-Exhibition-New-York.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2026/07/Miniso-Yoyo-Exhibition-New-York-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2026/07/Miniso-Yoyo-Exhibition-New-York-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2026/07/Miniso-Yoyo-Exhibition-New-York-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2026/07/Miniso-Yoyo-Exhibition-New-York-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-163015" class="wp-caption-text">Miniso's Yoyo character, on display at a New York exhibition. Photo courtesy of Miniso.</figcaption></figure>
The company will use "immersive retail" to showcase the growing portfolio of characters, a concept that has boosted sales in China, according to Tom Bartlebaugh, CEO of Miniso USA.
Miniso plans to open the first three experiential stores in Las Vegas, Columbus, Ohio, and East Rutherford, New Jersey, featuring interactive attractions such as claw machines. Existing US stores will also be remodeled.
Miniso, which entered the US in 2017, now has 380 stores and plans to expand its footprint by 20%. Building brand recognition in the US remains a challenge, Bartlebaugh said. The company will increasingly target strip malls and larger street-front locations rather than traditional shopping malls.
The US is the top priority because it is the company's largest revenue market outside of China, Liu said.
The focus also reflects a tougher retail environment in China, where a <a title="" href="https://asia.nikkei.com/spotlight/policy-asia/china-s-consumption-slump-shrouds-next-5-year-plan" target="_blank" rel="noopener">consumer spending slowdown</a> remains subdued after a yearslong property slump. Despite that, the company has continued to grow domestically and believes its expanding roster of characters will help drive further growth.
Miniso's shift toward a character-based portfolio doubles up with its subsidiary brand Top Toy, which sells blind boxes with figurines and plush toys, analysts noted.
Liu said the two brands will complement each other and can share marketing resources. But Top Toy is focused on being designer art toys, it is more professional and high end than Miniso's mass market appeal, he added.
Loo Wee Teck, global insight manager for toys and games at Euromonitor International, said there is demand for licensed toys but customers are drawn to well-known franchises.
He added many characters are released into the market, but few actually become as widespread as Chinese toymaker <a href="/company/pop-mart">Pop Mart's</a> Labubu.
"Miniso can compete in distribution and price, but building a character with lasting global resonance is a much harder challenge," said Loo.
Lina Yan, HSBC's consumer analyst, said it took Pop Mart nearly two decades to scale one of their other characters to revenue levels of RMB 3 billion (USD 441.9 million) last year.
"Miniso could still grow meaningfully in this segment if it can successfully build and compound a dedicated fan base—rather than simply selling in-house IP toys to its existing customers by substituting for other product categories," she said.
Liu said Miniso views Pop Mart as the industry's benchmark and is studying its approach to developing IP. Together, Miniso and Top Toy aim to sign on and manage 100 artists by year's end.
"The market can't be dominated by just one company like Pop Mart," Liu said.
This article first appeared on <a href="https://asia.nikkei.com/business/consumer/miniso-banks-on-finding-the-next-labubu-as-it-opens-100-us-stores">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.
Note: RMB figures are converted to USD at rates of RMB 6.79 = USD 1 based on estimates as of July 14, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Miniso banks on finding the next Labubu as it opens 100 US stores

Miniso

… technical service teams, increasing standardized warehousing capacity, optimizing local inventory turnover management, shortening spare parts delivery times, and strengthening site-specific service capabilities for large vehicle and chemical plants.
Beyond Thailand and Indonesia, ZKH plans to expand into markets such as Vietnam and Malaysia through an asset-light model. By leveraging its existing regional warehouse network, cross-border logistics capabilities, and supplier resources, the company aims to build a more connected MRO service network across Southeast Asia.
ZKH will continue focusing on four key industries: automotive, electronics, chemicals, and equipment manufacturing, providing integrated MRO procurement solutions covering industrial consumables and automation-related spare parts. Through its innovation and R&amp;D center in Taicang, Suzhou, China, the company will further develop overseas offerings of private-label industrial products, including automation components, PPE, labor protection supplies, and industrial lubricants.
It will also continue iterating its cross-border digital material management system to unify material standards across countries and reduce the labor costs companies face in managing materials across regions.
<h3>Setting a benchmark for Southeast Asia’s MRO supply chain</h3>
While serving Chinese-invested factories, ZKH Industrial Supply is also promoting standardized upgrades among local suppliers in Southeast Asia, improving the region’s industrial support system, and enabling more coordinated development across Chinese and overseas industrial chains.
In 2026, ZKH will continue deepening its localized presence in Southeast Asia and improving its regional warehouse network and local supply chain system. Through digital technology, it aims to drive global supply chain coordination, help more Chinese manufacturers establish stable operations in Southeast Asia, address overseas MRO procurement pain points, and support the globalization of Chinese manufacturing.
<h3>About ZKH Industrial Supply</h3>
ZKH Industrial Supply is a global provider of digital MRO procurement and industrial supply chain services. Leveraging a digital procurement platform, extensive product portfolio, and integrated warehousing network, the company supports manufacturers across multiple industries. In Southeast Asia, ZKH operates localized entities in Thailand and Indonesia, providing sourcing, fulfillment, digital material management, and compliance support for manufacturers expanding overseas.
This press release was published in partnership with <a href="https://zkh.global/">ZKH Industrial Supply</a>.

ZKH Industrial Supply targets MRO bottlenecks facing Chinese manufacturers in Southeast Asia

Logistics

On July 10, China's Nexchip debuted on the Hong Kong Stock Exchange after growing into the world's eighth largest semiconductor foundry on its strength in older-generation chips.
Supplies of mature-node semiconductors are becoming tight as top foundries focus on advanced chips for <a href="/industry/ai">artificial intelligence</a>. That trend is a tailwind for latecoming Chinese players like Nexchip.
Nexchip raised HKD 6.9 billion (USD 880.3 million) through its IPO and related share issuance. Its stock opened 11% above the offering price.
Nexchip was established in 2015 under the leadership of a local government in China. Funding came primarily from a state-backed investment fund, while Taiwan's Powerchip also invested and provided technical expertise.
Powerchip's former president, Tsai Kuo-chih, serves as Nexchip's chairman. Powerchip-affiliated investors now hold just over 7% of the company, but their ties still run deep.
At the listing ceremony in Hong Kong, Tsai said the company would increase R&amp;D investment and production capacity, while speeding up its global expansion. He said the IPO shows the confidence that international capital markets have in China's semiconductor sector.
Nexchip listed on the Star Market, the Shanghai Stock Exchange's technology-focused board, in 2023. The dual listing in Hong Kong is aimed at reaching out to international investors and enables the company to raise Hong Kong dollars, which are more readily convertible into foreign currency, facilitating overseas purchases of equipment and technology.
Nexchip produces chips used in display panels, as well as image sensors, power management semiconductors, and other products. Its most advanced manufacturing process used in mass production is the 40-nanometer node, a technology that has been in use for nearly two decades.
The company's growth picked up thanks to the semiconductor shortage triggered by the Covid-19 pandemic. Supported by government policies, Nexchip continued expanding production even after market conditions softened. Its annual output reached 1.67 million 300-millimeter wafer equivalents in 2025, up 74% from 2023.
Nexchip ranked eighth worldwide in semiconductor foundry revenue in this year's January-March quarter, according to Taiwan-based research firm TrendForce. It surpassed Taiwan's Powerchip Semiconductor Manufacturing Corporation, the company that gave it its technological start.
Chip market conditions remain favorable. As industry leaders such as Taiwan Semiconductor Manufacturing Company concentrate on advanced AI chips, TrendForce said there are signs that prices for several generations of technologies could rise by 5–10% during the July-September quarter.
Taiwan's United Microelectronics Corporation, which also produces mature-node chips, reported that June revenue rose 22.9% on the year.
China's largest foundry, Semiconductor Manufacturing International Corporation (SMIC), said in a May earnings briefing that semiconductor production capacity outside China is increasingly being allocated to AI-related products.
"Consumer electronics makers and other customers are seeking to secure manufacturing capacity [for chips] in China, and orders are returning," SMIC co-CEO Zhao Haijun said.
Typically, late entrants in mature-node semiconductor manufacturing face fierce competition. Building fabrication facilities requires big investments, and established players that have already depreciated their production assets enjoy significant cost advantages. Meanwhile, customers move on to more advanced chips over time.
But Chinese chipmakers have continued investing heavily despite being latecomers. Capital spending by Chinese foundries from 2015 to 2023 exceeded their revenue by 12%, according to the US-based Semiconductor Industry Association. Companies outside of China invested an amount equivalent to roughly 33% of revenue.
A report by Rhodium Group, a US think tank, noted that Chinese foundries are able to invest under financial constraints that differ from those faced by foreign competitors, thanks in part to government support.
This article first appeared on <a href="https://asia.nikkei.com/business/tech/semiconductors/china-s-nexchip-has-global-ambitions-as-legacy-chips-thrive-in-ai-s-shadow">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.
Note: HKD figures are converted to USD at rates of HKD 7.84 = USD 1 based on estimates as of July 14, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

China's Nexchip has global ambitions as legacy chips thrive in AI's shadow

Hong Kong