Hi there and welcome again to TechCrunch’s China Roundup, a digest of current occasions shaping the Chinese language tech panorama and what they imply to individuals in the remainder of the world. This week, we have now a number of heavy-hitting rumors swirling round, from Huawei’s chips for automobiles to Tencent’s potential buyout of its video rival iQiyi.
China tech at residence
Huawei’s foray into autos
Huawei is likely to be bringing the know-how behind its Kirin smartphone processor into automobiles. In accordance with Chinese language tech publication 36Kr, Huawei has signed a strategic cope with home electrical automobile big BYD, which might be utilizing the Kirin chips to digitize the “cockpits” (usually discuss with the drivers’ cabins) in its automobiles.
The Kirin chips are developed by Huawei’s semiconductor subsidiary HiSilicon to hedge in opposition to U.S. sanctions and develop into self-sufficient in core smartphone applied sciences. What’s noticeable is that BYD, backed by Warren Buffet, had beforehand announced to undertake Qualcomm’s Snapdragon automotive chips in its electrical automobiles, a partnership that was set to start in 2019. May the potential collaboration with Huawei be a part of BYD’s transfer to lower reliance on imported applied sciences?
BYD stated it “doesn’t have info to reveal in the meanwhile,” whereas Huawei declines to touch upon the rumor.
The potential alliance wouldn’t be all that stunning given the duo has already been working collectively carefully. In March 2019, the businesses, each Shenzhen-based, unveiled a strategic partnership to use Huawei’s AI and 5G applied sciences in BYD’s different vitality automobiles and monorails.
Extra huge strikes from BYD — the automaker is speeding to develop into self-sufficient within the manufacturing of electrical automobiles. After elevating a 1.9 billion yuan ($270 million) Sequence A in late Could, its chipmaking subsidiary BYD Semiconductor accomplished another 800 million yuan ($113 million) Sequence A+ spherical this week, apparently because of buyers’ immense curiosity in getting concerned in the one Chinese language firm able to making the core chip a part of electrical automobiles referred to as insulated gate bipolar transistors, or IGBTs.
ByteDance encroaches on Tencent’s turf
ByteDance simply paid 1.1 billion yuan ($160 million) for an enormous plot of land to construct places of work within the coronary heart of Shenzhen’s Nanshan district, in accordance with public information disclosed by the federal government. Shenzhen is residence to a number of Chinese language tech heavyweights, together with Tencent, Huawei and DJI. It additionally homes the China places of work of international retail giants resembling Lazada and Shopify, given town’s wealthy manufacturing and logistics sources.
That offers ByteDance, the mum or dad of TikTok, a major presence in Tencent’s yard. ByteDance is thought to have aggressively lured skills from the entrenched tech trio of Baidu, Alibaba and Baidu by providing profitable packages. Being in Shenzhen will little question give the corporate extra entry to Tencent’s expertise pool.
This may increasingly assist it in its push into video gaming, an space that has lengthy been dominated by Tencent, the world’s greatest video games writer. In the meantime, the world’s second-largest video games firm — NetEase — is true subsequent door in Guangzhou, an hour’s drive away from central Shenzhen.
Shakeup in video streaming
Reuters reported this week that Tencent has approached Baidu to develop into the largest shareholder in iQiyi, the video streaming big managed by Baidu. Tencent’s video platform competes neck to neck with iQiyi to churn out selection exhibits and dramas that can persuade Chinese language audiences to pay for on-line content material.
Each firms are bleeding cash on video manufacturing. IQiyi, which shed from Baidu to listing on Nasdaq, widened its web loss to 2.9 billion yuan ($406.zero million) in Q1 this 12 months, up from 1.Eight billion yuan the 12 months earlier than. Promoting iQiyi to deep-pocketed Tencent could additional ease the monetary burden on Baidu, which is busy dealing with ByteDance’s menace to its core promoting enterprise. Each Tencent and iQiyi declined to touch upon the report.
Robotics startup Geek+ raises $200 million
Geek+, a startup that focuses on making logistics robots which are analogous to these of Amazon’s Kiva machines, simply closed a considerable Sequence C spherical. The corporate is one to observe as retail firms in China and North America are more and more seeking to automate their warehouses.
China tech overseas
China’s homosexual courting app Blued goes public on Nasdaq
Regardless of restricted help for LGBTQ communities in China, Blued, a Chinese language app utilized by thousands and thousands of homosexual people, has been quietly blossoming over the previous few years and is eyeing to raise $50 million from a U.S. initial public offering.
JD’s long-awaited secondary itemizing is right here. The web retailer’s shares rose 5.7% to HK$239 ($30.8) on its first day of buying and selling on the Hong Kong Inventory Alternate. A number of U.S.-listed Chinese language firms have filed to listing in Hong Kong due to a new bill that can impose extra scrutiny on Chinese language corporations buying and selling on the U.S. inventory markets.