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… But if you’re fully compliant, you don’t have to worry about those issues.”
<h3>Is Thailand a hub for entrepreneurs?</h3>
Thailand’s appeal to Chinese businesses isn’t limited to factory investments.
Pop Mart, a leading Chinese toy brand, reported a year-on-year revenue increase of over 400% from Southeast Asia in the first half of 2024, with the region now contributing more than 40% of the company’s total overseas revenue.
This remarkable growth underscores the vast potential of the Southeast Asian market. In July 2024, Pop Mart’s Labubu-themed store in Thailand experienced heavy foot traffic, <a href="https://kr-asia.com/pop-marts-labubu-breaks-records-in-thailand-can-the-trend-go-global">generating over RMB 10 million (USD 1.4 million) in single-day revenue</a>—a new record for the brand’s overseas daily sales.
Despite Pop Mart products in Thailand being priced 5–10% higher than in China, the brand continues to thrive. In Bangkok’s malls, Pop Mart vending machines frequently draw long lines of eager customers waiting to make their purchases.
whereRelatedArticle
<a href="https://kr-asia.com/gancubes-premium-puzzle-how-a-champion-turned-his-passion-for-the-rubiks-cube-into-a-global-business">Gancube</a>, a Chinese company specializing in Rubik’s Cubes, also achieved notable results in the Thai market. In its early days of entering Southeast Asia, Gancube ranked as the third most popular toy brand in Thailand, trailing only Lego and Pop Mart. The company’s founder, Jiang Ganyuan, was stunned by these results, especially considering that Gancube’s average price point is in the hundreds of RMB.
Lina, who works in Thailand, told 36Kr: “There’s a Chinese factory selling storage boxes through e-commerce in Thailand, with individual items priced at RMB 200–300 (USD 28–42). They can sell 200–300 units daily. The Thai market isn’t just about competing on price—high-quality, niche products can also fetch premium prices.”
Having lived and worked in Thailand for many years, Jeff concurs. “Thailand’s spending power is strong, and the proportion of high-net-worth individuals is high. Commercial maturity here also exceeds that of neighboring countries. The market is highly unified, unlike other Southeast Asian nations where diverse ethnicities and languages create fragmentation. It’s relatively easier to break into the Thai market,” Jeff said.
“Product prices in Thailand are generally transparent, so it’s hard to compete solely on low prices. Success now depends on building supply chains, ensuring localized operations, and delivering after-sales services. If you just focus on cutting prices, you’re on a dead-end path,” Jeff added.
Thailand’s economic standing is among the upper echelon of Southeast Asia. In 2024, Thailand’s per capita GDP reached USD 7,810, ranking fourth in the region. It is also the second largest ASEAN economy.
Thailand benefits from a relatively stable political environment. China has been Thailand’s largest trading partner for years, and the two governments maintain friendly relations. These factors make Thailand an attractive destination for many Chinese companies looking to expand globally.
<h3>Is doing business in Thailand risk-free?</h3>
While Thailand’s favorable business environment makes it an attractive destination, challenges persist for those venturing abroad.
Max, for instance, intentionally avoids engaging with the local Chinese business community in Thailand. His company’s employees are predominantly Thai locals. Similarly, Jeff mentioned that most of his business partners in Thailand are local, with no Chinese collaborators. “Working with Thai partners is less costly and involves fewer social obligations. Relationships here are simpler to maintain,” Jeff said.
Notably, a report from WeChat outlet Zhengmian Lianjie shed light on an issue that emerged during the pandemic: some Chinese businesspeople in Mae Sot had allegedly set up systems to bribe immigration officials, police, and border guards. These networks reportedly facilitated smuggling and illegal activities, supporting Chinese individuals involved in cross-border fraud.
Although such reports may represent isolated incidents, both Max and Jeff agreed that the Chinese community in Thailand can sometimes be complex. For those seeking to establish legitimate businesses, it’s best to remain cautious about whom to associate with.
Lina also stressed the importance of securing a proper work visa before moving to Thailand for employment. “Some Chinese companies ask employees to enter Thailand on a tourist visa, then convert it to a business visa after they start working, and eventually switch to a work visa. This is not compliant with Thai labor laws. Signing a labor contract after entering the country on a tourist visa has no legal standing. If the government discovers this, employees may face deportation and a ban on reentry,” she said.
Jeff noted that obtaining work visas used to be a cumbersome process, sometimes requiring under-the-table payments to officials. “In the past, you had to give small bribes to get a work visa approved, which made the process expensive. Thankfully, this is no longer the case,” he said.
Nonetheless, various factors continue to cause delays in obtaining work visas for employees. Even Lina, who works for a relatively large company in Thailand, faced issues when her work visa was not processed in advance.
The question of whether expanding to Thailand is a safe move ultimately depends on individual circumstances. However, one universal truth applies: conducting business in compliance with local laws and regulations is indispensable for achieving long-term success.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3133333297830406">article</a> was written by Leslie Zhang for 36Kr.

Thailand remains a top destination for Chinese businesses despite concerns

Thailand

Southeast Asia

China

… will drive growth.” It took Han more than a year to secure his first contract in the UAE.
For many Chinese enterprises, entering the Middle East is still an exploratory endeavor. Initial steps often center on market research and preliminary engagement. However, the competition is intense, with companies from the US, Europe, and Southeast Asia also vying for market share.
Noor Al Tamimi, a board member of ADCCI, encourages Chinese entrepreneurs to personally explore opportunities in the region, rather than relying solely on representatives. “Companies need to immerse themselves in local communities, understand the culture, and then take the leap into their business ventures,” she said.
As Abu Dhabi continues to shape its global economic narrative, Chinese enterprises have the opportunity to contribute to and benefit from this transformation. Achieving success, however, demands commitment, adaptability, and a long-term perspective.
Whether leveraging the UAE’s logistical strengths or aligning with its emphasis on knowledge-based industries, Chinese businesses can play a role in this burgeoning market. Yet, they must navigate the region’s distinct challenges—slower operational rhythms, underdeveloped supply chains, and cultural nuances—while competing on a global stage.
As Abu Dhabi’s diverse story unfolds, it beckons those ready to embrace its opportunities and overcome its challenges. For those willing to take the plunge, the Middle East promises a new chapter of growth, innovation, and collaboration.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3123444768757760">article</a> was written by Shi Yi for 36Kr.

As Abu Dhabi beckons with capital and opportunity, who will take the plunge?

Middle East

India's booming electric scooter industry is poised for a transformation as traditional giants Bajaj Auto and TVS Motor Company drive market leader <a href="/company/ola">Ola Electric</a> out of pole position.
Dented by <a title="" href="https://asia.nikkei.com/Business/Automobiles/Electric-vehicles/Indian-e-scooter-maker-Ola-shares-slide-after-flood-of-complaints2" target="_blank" rel="noopener">mounting complaints </a>about the quality of its products and after-sales service, and a string of top-level exits, SoftBank-backed Ola Electric saw its market share slump to 19% in December 2024, falling behind Bajaj's 25% and TVS Motor's 23%.
This meant Ola sold 13,673 electric scooters last month, its worst performance since September 2022, according to the Indian government's vehicle registration database Vahan.
That is far cry from when Ola, which launched in 2017 and went public in a USD 734 million share sale in August 2024, led the market through most of last year—including one month when it held a 52% share of the sector's sales.
Bajaj and TVS, whose mainstay are internal combustion engine (ICE) two-wheelers, are now <a title="" href="https://asia.nikkei.com/Business/Automobiles/Electric-vehicles/Honda-unveils-e-scooters-in-India-playing-catch-up-with-local-rivals" target="_blank" rel="noopener">taking over an EV market</a> that grew 33% in 2024, compared with an 11% expansion in the overall sector.
Stricter government emission regulations, environmental concerns among younger buyers and rising fuel prices are set to further push the adoption of electric two-wheelers, analysts said.
"While EVs may not yet contribute significantly to their bottom lines, they are essential to incumbents' long-term sustainable value creation strategy," Harshvardhan Sharma, head of automotive retail consulting at Nomura Research Institute, told Nikkei Asia.
Bajaj and TVS are repurposing "their existing strengths in production, distribution, and customer service to gain a competitive edge in emerging markets like EVs," Sharma added.
Ola's shares have fallen in tandem and are now trading below its INR 76 (USD 0.88) IPO price, down from a record high of INR 146 (USD 1.69) in August 2024.
Last year, the traditional companies expanded their offerings to compete across price points. TVS launched a premium model called TVS X in August, which at the equivalent of about USD 2,900, is priced considerably higher than its flagship model iQube, which sells for under USD 1,000. It is slated to launch another model in 2025.
Bajaj, which already sells four versions of its Chetak electric scooter in the USD 1,100–1,300 range, launched two new versions of the model in December 2024 at a slightly higher price.
The scooter makers have also boosted marketing budgets, targeting "urban and semi-urban demographics," while Ola Electric retreated from deep price discounting in December, Sharma said.
Ola Electric has yet to turn a profit, unlike Bajaj and TVS which raked in earnings of about USD 256 million and USD 76 million, respectively, in the July-September 2024 quarter.
Ola only sells electric scooters so its approach "contrasts with incumbents like Bajaj and TVS, whose diversified revenue streams from ICE vehicles allow them to cross-subsidize their EV operations," Sharma added.
TVS and Bajaj have also leveraged their extensive distribution and service networks, built up over years for their traditional vehicles, to the benefit of EV sales, said Ravi Bhatia, president of the Indian unit of UK-based automotive analytics company Jato Dynamics.
Meanwhile, Ola Electric, which did not respond to requests for comment on this story, has been facing regulatory heat from India's consumer protection watchdog.
In October 2024, the Central Consumer Protection Authority said it had received over 10,000 complaints about Ola's scooters in the preceding year. Separately, India's Ministry of Heavy Industries had earlier asked its testing and certification agency to conduct an audit of Ola's service centers.
On January 10, Ola received a third notice from the consumer protection watchdog as part of its ongoing investigation.
"Ola has not been able to communicate a favorable and stable image to the customer … At this price point, the customer needs some peace of mind from the product," Bhatia said. Ola's scooters retail between USD 700 and nearly USD 1,500.
The electric scooter market is far from settled, however, with the vehicles making up just 6% of total two-wheeler sales last year in India, the world's largest scooter market.
December 2024 was also an exceptionally weak month for sales, and Ola still shifted more than 400,000 of its scooters through last year, more than double Bajaj's total and considerably higher than TVS Motor's 220,000 unit sales, according to official data.
To win its market lead back, Ola Electric needs to "extinguish all fires, keep the price competitive and start earning customer peace of mind," Bhatia said.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Transportation/India-e-scooter-market-set-for-shakeup-as-Ola-knocked-out-of-lead" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

India e-scooter market set for shakeup as Ola knocked out of lead

India

Transportation

Electric Vehicles

Mobility

… 36Kr’s observations, Shein’s product pages and promotional campaigns in 2024 have increasingly focused on clothing categories. Promotions for new or expanded categories, like home goods or electronics, have become less visible, and major sales events continue to prioritize fashion items.
Even within its semi-managed operations, Shein has set clear boundaries to protect its core business. Early semi-managed onboarding focused on bulky, hard-to-ship products weighing over 400 grams, such as home goods and wigs, while core categories like apparel remained off-limits. It wasn’t until July 2024 that Shein opened semi-managed onboarding to apparel sellers, and even then, it was restricted to niche segments such as plus-size items and activewear.
In 2024, Temu set an ambitious goal to triple its GMV, while Shein aimed for a more modest 40% growth. Industry observers argue that Shein’s conservative strategy makes sense. "Shein’s moat in fashion is already deep. Temu won’t beat them there," one insider said.
However, despite the competition between these two giants, some in the industry believe their biggest threat isn’t each other but the increasingly hostile geopolitical environment.
<a href="https://kr-asia.com/14-hours-offline-how-tiktoks-blackout-exposed-its-far-reaching-impact">TikTok’s position in the US remains precarious.</a> While Trump delayed the ban, the Supreme Court has ultimately ruled that the platform cannot continue operating in the US under ByteDance’s ownership. Trump’s latest demand—that TikTok sell a 50% stake—poses an existential challenge for the Chinese giant. Given the public sentiment in China, it’s unlikely such a compromise would be acceptable.
For the “four little dragons,” the biggest threat is not their competition but the increasingly fractured state of globalization itself.
Sellers are particularly concerned about policy changes to duty-free exemptions for small packages. Previously, packages under EUR 150 (USD 157.4) in the EU and USD 800 in the US were exempt from duties. However, in July 2024, the EU eliminated these exemptions, and by September the same year, the US announced plans to follow suit.
In response, Temu has been <a href="https://www.theinformation.com/articles/temu-aims-to-lessen-reliance-on-u-s-shoppers">scaling back its reliance on the US market</a>, aiming to reduce its GMV share from 60% to 30% while accelerating its expansion in Europe.
whereRelatedArticle
Over the past few decades, many Chinese cross-border sellers have built their fortunes by capitalizing on an open global trade system. In Shenzhen, 36Kr heard these sellers still passionately discussing bold strategies to defy the odds and rewrite their futures. However, many seem unaware that the road ahead is likely to be far more arduous than the one they have traversed so far.
One Chinese seller vividly recalled an experience at a trade show in the US. While TikTok’s official team was filming promotional footage, several US brands outright refused to associate with TikTok in any form. They declined to appear on camera or be linked to the platform in any way.
As much as people in China are moved by “TikTok refugees" sharing their struggles on Xiaohongshu (also known as RedNote), they may overlook a harsher reality: the world is increasingly divided. “People in the US are deeply split in their attitudes toward TikTok,” the seller told 36Kr. “Some fully embrace it, seeing it as their community. But others distrust it completely—they will believe any wild rumor they hear about the app.”
The efforts of cross-border platforms and sellers are only part of the equation. Larger forces, like the progression of history and geopolitical dynamics, also play a critical role. “This isn’t something we can control. We can only wait and see,” one seller told 36Kr.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3131267128826627">article</a> was written by Leslie Zhang and Yuan Silai for 36Kr, with contributions from Hu Yiting.

E-commerce faces a new frontier amid TikTok’s trials and Temu’s rise

TikTok

Shein

Temu

East Asia

TikTok Shop

On-demand Services

E-commerce

Short Video

Live Streaming

Video

Creative

Content

Consumer Economy

On January 21, <a href="/company/xiaomi">Xiaomi</a> announced the launch of internal testing for its WinPlay engine, igniting fresh discussions in the console gaming community. This innovation reportedly enables Xiaomi tablets equipped with ARM architecture system-on-chips (SoCs) to install Steam and run console games. The initial testing phase is limited to the Xiaomi Pad 6S Pro 12.4.
Zhang Guoquan, director of Xiaomi’s smartphone system software department, said that the WinPlay engine remains a nascent technology under development. Using a three-layer virtualization system, the engine enables HyperOS to support Windows games across platforms. As a result, users can install and play Steam games locally with peripherals like controllers, keyboards, and mice.
According to Zhang, GPU performance loss after virtualization on the Xiaomi Pad 6S Pro 12.4 is only 2.9%. The tablet can run the 2013 title Tomb Raider at an average of 45 frames per second, delivering performance comparable to native mobile games. This tablet is powered by a Snapdragon 8 Gen 2 processor, with 16 gigabytes of RAM and 1 TB of storage, and is priced at approximately RMB 4,000 (USD 560) on JD.com. For most lightweight and indie PC games, its processing power is more than sufficient.
Currently, the WinPlay engine is available for internal testing exclusively for Xiaomi Pad 6S Pro 12.4 users in Xiaomi’s community. The company has not announced plans for a formal public release.
For users looking to play PC games on mobile devices, existing solutions include cloud gaming and Windows handheld devices.
NetEase, for example, offers cloud gaming for PC titles at around RMB 1.8 (USD 0.25) per hour without membership, though its library is limited. While early adoption discounts attract users, high server costs and technology expenses suggest future price increases are inevitable.
In 2024, Mihoyo scaled back its investment in the cloud-based version of Genshin Impact, despite strong initial traction. The company attributed this shift to advancements in mobile device performance, which now allow many players to run the game natively. Cost and stability also remain key challenges for cloud platforms.
Meanwhile, Windows handheld gaming devices provide unrestricted game access and PC-grade processors that outpace the Snapdragon 8 Gen 2. However, their high prices—RMB 4,000–5,000 (USD 560–700)—and limited functionality for tasks like studying or office work make them less versatile. Their primary advantage lies in optimized gaming experiences.
Xiaomi’s WinPlay engine could fill a gap between cloud gaming and expensive handheld consoles. If the engine proves reliable, it may carve out a niche in mobile gaming and generate new revenue for Xiaomi’s tablet ecosystem.
Rather than directly competing with handheld gaming consoles, the WinPlay engine would complement existing gaming scenarios, expanding the functionality of mobile devices. For tablet owners, this means gaming may no longer be limited to AAA titles—indie favorites such as It Takes Two and Stardew Valley, previously confined to PCs or consoles, could also become playable on tablets.
The evolution of mobile gaming over the past decade has coincided with significant advances in the ARM-based software ecosystem. Chip manufacturers have responded by releasing increasingly powerful products. Apple’s A- and M-series chips, known for their industry-leading graphical performance, exemplify this trend. The iPad Pro has emerged as a popular tool for productivity that doubles as a gaming device. Apple’s product launches routinely spotlight game development, using open-world titles to set GPU performance benchmarks.
On the Android and HarmonyOS fronts, flagship processors like Qualcomm’s Snapdragon and Huawei’s Kirin prioritize GPU upgrades. While Xiaomi’s Snapdragon 8 Gen 2-powered Pad 6S Pro supports the WinPlay engine, it lags behind newer chips like the Snapdragon 8 Elite in GPU performance and features like ray tracing.
If Xiaomi’s testing on the 6S Pro proves successful, other manufacturers could follow suit. After all, for users who already own a tablet, the ability to purchase a game on Steam once and play it on both PC and tablet platforms offers significant value without incurring additional costs.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3133793192303108">article</a> was written by Xue Dexing for 36Kr.

Turning tablets into consoles? Xiaomi’s WinPlay engine is on it

Gaming

… the initial investment can be as low as RMB 300,000 (USD 42,000), with a potential return on investment within three to six months—similar to the recovery rate of short theatrical productions.
Despite these favorable conditions, Peng warned that the current boom presents a fleeting opportunity. “This phase is an opportunity, but as competition grows, it will only get tougher,” he said.
Despite over a year of development, room-scale VR remains in its infancy. The value chain for this emerging industry spans upstream content creation and hardware production, midstream distribution, and downstream marketing and venue management.
Among these segments, upstream content development is the most critical and resource-intensive. High-quality productions like Horizon of Khufu can take years to develop and cost millions of yuan—on par with budgets for major visual effects-driven films. Yet, such investments can yield substantial returns. Horizon of Khufu is projected to generate RMB 200 million (USD 28 million) in total revenue through its international tours and showcases.
The importance of compelling content is widely acknowledged by industry professionals, who frequently compare room-scale VR to cinema. They argue that content is the foundation of success. The cinema model, validated over the past century, ensures a steady content supply while amplifying revenue streams. However, the current catalog of room-scale VR titles in China is far from achieving the scale and maturity of the film industry.
As with many emerging industries, room-scale VR has attracted opportunistic players producing low-budget, low-quality projects. Some titles developed in mere months, costing as little as six figures in RMB, fail to deliver compelling experiences. According to 36Kr, over 100 room-scale VR titles were launched in 2024 alone, but the offerings vary widely in distribution channels, collaboration models, content types, and user experience. Beyond the shared feature of walking around with a VR headset, little consistency exists.
Consumers have voiced dissatisfaction with the current state of room-scale VR. One user told 36Kr that after trying it out of curiosity, they were disappointed by crude visuals, technical glitches, and unoriginal content. Even highly praised projects failed to inspire a return visit. "It’s not as fun as playing games on my computer," they said.
Configreality’s Peng echoed these concerns, noting that of the roughly 200 room-scale VR titles available in China, most suffer from poor quality and homogeneity. "Nearly two years have passed, and the only project people still talk about as a benchmark for good content is Horizon of Khufu. Few, if any, domestic productions have matched or surpassed it," Peng said.
A major issue plaguing room-scale VR venues is low repeat visitation rates. Many users try the experience once or twice but rarely return for a third visit. “A room-scale VR venue cannot rely on just a handful of titles. Audiences need variety to compare and choose from,” Peng said. This lack of content diversity and quality stifles the industry’s potential to establish itself as a mainstream entertainment option.
Additionally, the revival of cultural tourism has led local governments to integrate VR experiences into tourism initiatives. While this approach has generated significant revenue during peak seasons—some projects earned over RMB 1 million (USD 140,000) monthly in July and August—off season revenues in third- and fourth-tier cities have plummeted to as low as RMB 10,000–20,000 (USD 1,400–2,800). “LBE experiences generally have very low repeat rates,” OpenWorld’s Wang said. “Most users will only try it once, maybe a second time, but almost never a third.”
The room-scale VR trend is the latest in a series of VR booms. A white paper reviewed by 36Kr revealed that over 3,000 offline VR venues were established across China by 2016, offering gaming, education, and virtual tourism experiences. However, with profitability rates below 30%, many venues closed as the hype waned.
Although the metaverse has rekindled interest in VR, it is seen as more of a conceptual framework than a solution to the industry’s challenges. To achieve lasting success, the industry must prioritize building content-focused ecosystems and creating practical, commercially viable applications.
As the industry navigates its early stages, the longevity of the room-scale VR trend depends on its ability to overcome content quality issues, improve user retention, and establish a sustainable business model. Only then might it evolve from a novelty to a staple of modern entertainment.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3122126955171841">article</a> was written by Lan Jie for 36Kr, with contributions from Feng Min.

Room-scale VR is sparking interest, but will the trend last?

Entertainment

Augmented and Virtual Reality

Deep Tech

Japan's Advantest is solidifying its lead in global sales of chip testing equipment, and its share price is hitched to that of chipmaker <a href="/company/nvidia">Nvidia</a> as both ride the growth of generative artificial intelligence.
Advantest and US-based rival Teradyne hold a combined 80% global market share. They long stood neck and neck, but the Japanese player gained the upper hand around 2022, when generative AI began to attract attention.
Advantest widened its share to about 50% in 2023 compared with Teradyne's roughly 30%.
"Demand for AI chips will continue to increase," Group CEO Douglas Lefever said in his new year's message for 2025. "As semiconductors continue to become more complex, Advantest's core competence of semiconductor [testing] will only become more important."
Advantest's growth has been driven by test tools for system-on-a-chip (SoC) integrated circuits, which combine functions like processing and memory onto a single chip.
The company raised its sales forecast for SoC test equipment for the year ending March 2025 by JPY 32 billion (USD 202 million) in October, now projecting a 32% increase to JPY 324 billion, or USD 2.1 billion. That would account for more than half of its forecast JPY 640 billion (USD 4.1 billion) in consolidated sales.
As semiconductor technology evolves, the cost and difficulty of manufacturing increase. Chipmakers need to find defective products early in the design and mass production stages. For cutting-edge products in particular, more tests are conducted at various points in the process to improve yields.
Advanced AI chips involve cutting-edge manufacturing techniques like "chiplets"—tiny integrated circuts with specific functions that are combined into packages—and 3D packaging that stacks multiple chips.
"Advanced packaging calls for higher yields," Nomura Securities analyst Atsushi Yoshioka said.
Advantest test tools are in demand for a wide range of applications, from chip development to mass production.
To meet the needs of cutting-edge chip testing, Advantest spends heavily on research and development. Its R&amp;D expenses for the year ended March 2024 reached JPY 65.5 billion yen (USD 424.5 million), equivalent to 13% of sales.
Teradyne's figure was 12% in 2023. Top Japanese chip equipment maker Tokyo Electron spent 11% in the year to March 2024, while smaller Lasertec devoted 6% in the year ended June 2024.
Though R&amp;D expenses are high, returns are growing. Advantest's R&amp;D efficiency—total operating profit for the five years through March 2024 divided by R&amp;D expenses for the previous five years—is 3.02, up from 1.19 five years ago.
Teradyne's R&amp;D efficiency, calculated from QUICK FactSet data, grew from 1.75 in 2019 to 2.72 in 2023.
Incorporating outside technologies through acquisitions has helped improve R&amp;D efficiency. Advantest gained its V93000 series flagship SoC test equipment by acquiring U.S.-based Verigy for about USD 1.1 billion in 2011.
"We have access to a wide range of customers, from large-scale foundries and OSAT (outsourced semiconductor assembly and test) providers to startups," Advantest president Koichi Tsukui said.
The company expects consolidated net profit to grow 96% to JPY 122 billion (USD 790.7 million) for the year ending March 2025. The QUICK Consensus average of market forecasts projects net profit at JPY 139.3 billion (USD 902.9 million) for that year and JPY 189.3 billion (USD 1.2 billion) for the year ending March 2026.
Advantest's stock price soared 92% in 2024. Though not as large as Nvidia's 180% jump, the company performed better than Teradyne, which rose 16%. Tokyo Electron fell 4%, and Lasertec dropped 59%.
Shares are trading at more than 60 times forward earnings. But based on the market forecast of earnings per share for the year ending March 2026, shares look less pricy, at around 39 times.
Advantest shares have been rising in tandem with Nvidia's. The correlation coefficient between Advantest and Nvidia over the past three years was 0.93, compared to Teradyne's 0.62 and Tokyo Electron's 0.72.
"It is difficult to imagine a sudden drop in demand or a significant oversupply," said Shoichiro Kamisaki, an analyst at Tokai Tokyo Intelligence Laboratory. "This is a stock that will benefit the most from growth in generative AI chips."
Risk factors include the US tightening chip-related export restrictions on China, but "its relative exposure to the Chinese market, where a variety of risks are expected, is low," Nomura's Yoshioka said.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Tech/Semiconductors/This-rising-Japanese-chip-stock-has-a-close-correlation-with-Nvidia" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

This rising Japanese chip stock has a close correlation with Nvidia

Nvidia

Semiconductors

Japan

Artificial intelligence

… solutions provider, has raised an eight-figure RMB sum in a Series A funding round led by Peakview Capital. It will use the newly raised capital to drive technology R&amp;D, product iteration, and market expansion. —<a href="https://36kr.com/p/3135077384313606">36Kr</a></li>
<li aria-level="1">Botinkit, a food tech company, has closed a Series A++ funding round, raising over USD 10 million. The round was led by China Creation Ventures, with Stars Capital serving as its financial advisor. The funds will facilitate Botinkit’s expansion efforts and further development of solutions for the food industry. —<a href="https://36kr.com/p/3135083547302408">36Kr</a></li>
<li aria-level="1">Vlai, a supplier of robotic components, has secured a seven-figure RMB sum in an angel funding round led by MiraclePlus. The company specializes in lightweight, high-density integrated joint motors for humanoid and four-legged robots. Vlai will utilize the funds for R&amp;D, product development, and mass production. —<a href="https://36kr.com/p/3133910873463301">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Sandbox VR, iMotorbike, Banyu, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Sandbox VR, a provider of location-based virtual reality experiences, raised USD 6.8 million through a convertible note funding round led by Gobi Partners, with participation from Abacus Ventures Growth Fund and Hyphen Capital.</li>
<li aria-level="1">iMotorbike, a platform for trading pre-owned motorcycles, raised USD 10 million in a Series A funding round led by Headline Asia, with participation from Ondine Capital, 500 Global, Gobi Partners, Astor Management, and Endeavor Catalyst.</li>
<li aria-level="1">Banyu, a tech-enabled seaweed farming company, raised USD 1.25 million in seed funding led by Intudo Ventures. The funding will support the establishment of a seedling cultivation lab and the scaling of operations in Sulawesi.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Daniel Ek’s Neko Health raises USD 260 million, Pomelo Group acquires Arrow Checkout, latest China deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Australia

Oceania

… https://console.kr-asia.com/wp-content/uploads/2025/01/Bananain-Store-480x270.jpg 480w, https://console.kr-asia.com/wp-content/uploads/2025/01/Bananain-Store.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151774" class="wp-caption-text">Photo of a Bananain storefront. Photo and header photo source: Bananain.</figcaption></figure>
<h3>36Kr: How do you balance online and offline strategies?</h3>
ZL: Online channels offer convenience, while offline stores provide tangible experiences. We prioritize user interaction and store design over sheer scale. Our offline strategy aligns with current trends of localized and personalized retail experiences.
<h3>36Kr: With the market shifting away from traffic-driven growth, how has your strategy adapted?</h3>
ZL: We were among the first brands on Taobao to use a brand-centric approach to e-commerce. We invested heavily in visual and marketing materials, crafting a distinctive voice and emotional value in our brand communications.
Our focus remains on refining our fundamentals. A strong foundation in product quality and innovation naturally resolves traffic issues.
<h3>36Kr: Bananain recently launched a down jacket line. What’s your perspective on this competitive market?</h3>
ZL: The down jacket market is vast, blending functionality and fashion. Success in this segment depends on finding a unique positioning and catering to diverse consumer needs.
<h3>36Kr: How has growth looked for Bananain over the past two years?</h3>
ZL: Despite market challenges, we’ve maintained healthy growth, achieving around 30% annual growth. Prioritizing foundational issues like product quality and management ensures sustainable development, rather than chasing numbers at any cost.
<h3>36Kr: Given the current environment, maintaining such growth rates must be challenging.</h3>
ZL: We are still a very young company. In just eight years, we’ve experienced rapid growth, and there’s still immense potential for us as a brand. For us, maintaining curiosity, embracing change, and continuously innovating are key. We’re willing to take risks and explore new ways to address comfort-related challenges.
We’re also problem solvers at heart. Tackling tough issues, avoiding complacency, and embracing challenges head-on are part of our DNA. Within our team, there’s a strong culture of reflection—identifying problems, facing them directly, and finding solutions. This mindset keeps us moving forward, no matter the obstacles.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3106612414402305">article</a> was written by Li Xiaoxia for 36Kr.

Redesigning the basics: How Bananain built a brand around comfort

Retail

Consumer Services