Investment

Xiaomi CEO Lei Jun stated the company will avoid a price war, focusing on sustainable growth in the automotive sector. Xiaomi aims for a long-term hardware profit margin capped at 5% and plans to produce its own automotive chips. The YU7 standard edition pricing will be decided just before launch. The company projects its automotive, chip, and other new ventures will achieve profitability in Q3 or Q4, supported by strong Q1 performance and significant investment in intelligent driving system R&D.

Life360 plans to issue $250 million in convertible senior notes due 2030 in a private offering to institutional buyers, with an option for an additional $37.5 million. The notes, with semi-annual interest payments, can be converted under certain conditions by holders, and Life360 can redeem them or repurchase them upon a “fundamental change.” Proceeds will finance capped call transactions (to mitigate share dilution) and general corporate purposes, potentially including acquisitions or product expansion. The specific terms and conditions will be available upon pricing.

TSMC is considering building a cutting-edge chip fabrication plant in the UAE, a significant strategic move for the world’s largest chipmaker. This potential expansion highlights the UAE’s drive to become a global tech leader, particularly in AI. Discussions with UAE officials and US representatives suggest advanced stages of assessment. This move, along with potential investments from other major semiconductor companies, could lead to major shifts in the global semiconductor supply chain, boosting the Middle East’s tech capabilities.

Venture capitalist Zhu Xiaohu, known as a “unicorn hunter,” shared his experience of three missed opportunities to invest in CATL, the battery giant. He instead invested $70 million in Boston Power, which failed to commercialize its advanced technology, resulting in significant losses. Zhu now emphasizes the importance of commercial viability and a holistic investment approach, warning against solely focusing on technological advancement.

Huike, a consumer electronics leader, announced a 10 billion yuan investment in a new M-LED chip manufacturing facility in China. The project in Shunqing District aims for a monthly production capacity of one million full-color M-LED display chips, with phase one targeting 150,000 chips. This investment reinforces Huike’s strong position in the display sector and its commitment to advanced display technologies for various applications, including TVs, monitors, and automotive displays.

Honor CEO Li Jian announced the company’s entry into robotics, highlighting a prototype robot capable of 4 meters per second, potentially surpassing competitors like Unitree Robotics. This launch, backed by a $10 billion investment over five years, follows Honor’s “Alpha Strategy” focusing on AI and robotics. Subsidiaries like Guiyang and Harbin Xingyao Terminal Co., Ltd. have been established to support their robotics endeavors, indicating a growing trend in the smart hardware market.

RCP Advisors closed its primary fund-of-funds, RCP Fund XIX, at $314 million. The fund, backed by diverse investors, will maintain RCP’s two-decade-long strategy of investing in buyout fund managers focused on small-cap companies (enterprise value $10-$250 million) with a focus on control-oriented investments. The success of RCP’s established strategy is evidenced by its continued appeal to a broad investor base and approximately $17 billion in committed capital since 2001.