Inside TechNet: What Goldman’s Closed-Door Talks Reveal About China’s AI

The recent invitation-only Goldman Sachs TechNet Conference, held at the Portman Ritz-Carlton in Shanghai, China, brought together senior executives from top technology firms spanning hardware, semiconductors, software, internet, and artificial intelligence.

Analysts Allen Chang and Verena Jeng, along with others, shared key takeaways with clients from the 20 companies in attendance, which spanned the semiconductor, AI infrastructure, smartphone, robotaxi, and software ecosystems. The biggest takeaway: AI monetization is accelerating in the world’s second-largest economy.

Chang said many of the discussions with CEOs and CFOs, if private company panels or fireside chats, revolved around:

1. AI demand: rising AI inferencing demand with enhanced foundation model,

2. Semis localization: China Semis’ development across IP, IC design, foundry, SPE, and packaging,

3. Smart driving and Robotaxi: Specification upgrades of driving features and Robotaxi commercialization,

4. AI applications: Expanding user base and monetization of ToC (Consumer)/ ToB (Business) Gen-AI tools, and

5. Edge devices: AI smartphones, AI PC, AI glasses to drive replacement demand.

The closed-door conversations Goldman analysts held with participating companies provided clients with candid insights and forward-looking guidance, helping them identify medium- to long-term investment themes and reposition their portfolios accordingly.

Just as importantly, these discussions shed light on which players are gaining ground in the evolving U.S.-China AI race.

Here’s a breakdown of those closed-door conversations, organized by industry sector:

Semiconductors

• Semis panel: We hosted Lithography expert, Axera (private) Chairperson, and SICC CTO at the panel. Key discussions were about China’s efforts in developing semiconductor technologies as well as the outlook for semiconductor capex and R&D investment in China. Overall, the expert/ management see continuous R&D progress in technology advancement. Amid geopolitical uncertainties, the supply chain will continuously invest in lithography system development and sustain local capacity expansions.

• VeriSilicon (688521.SS, Buy): Management is positive on rising AI inferencing demand and growing adoption of AI devices (AI smartphones, AI PC, AI glasses, autonomous driving, etc.) with LLM (Large Language Model) on the edge side. To meet growing AI demand, VeriSilicon is expanding to GPU IP/ AI IP and Chiplet platform for AI and autonomous driving, supported by private placement funding.

• StarPower (603290.SS, Neutral): Key discussions were around 2025 outlook, SiC MOSFET’s penetration rate in EV market, and IGBT’s development plan. Overall, management is positive on the company’s 2025 revenue growth, driven by the increasing SiC devices penetration rate and localization trend, and product line expansion to IPM for home appliance.

• AMEC (688012.SS, Buy): Management remains positive on the continuous investment of semiconductor capacities in China due to the need for local productions. The contributions from local SPEs will increase gradually, supporting a stable growth opportunities. With product expansions and migrations in etching, deposition, metrology and inspection, AMEC looks to expand its addressable market and sustain a long-term growth.

• ASMPT (0522.HK, Neutral): Management expect increasing adoption of TCB tools driven by the AI and high computing chips. Mainstream tools bookings have been stabilized, and management expect gradual demand recovery from a low base, despite tariff may bring some indirect uncertainties.

• SICC (688234.SS, Buy): Management remains positive on the market demand, as more 800V EVs will be launched and the demand for EV fast charging is increasing. Management also expects AR glasses demand ramping up to drive the demand for SiC substrate.

• Maxscend (300782.SZ, Neutral): Key discussions were around its 2025 business outlook, the Xinzhuo project’s development progress, and new growth opportunities. Overall, management holds a positive view on the company’s RF modules expansion, utilization rate ramp-up of its in-house capacity, and new business opportunities in the longer term. Read more: Maxscend Technet takeaway.

• Innoscience (2557.HK, Not Covered): Innoscience is GaN IDM supplier based in Suzhou and Xiamen, offering 8-Inch GaN chips. Management is positive on rising GaN demand from traditional adapter to consumer electronics, EV and data center applications by offering better power efficiency. The company currently has 13k wpm GaN capacity in Suzhou and Xiamen, targeting to expand to 20k wpm to capture long-term growth opportunities.

• JCET (600584.SS, Not Covered): Management has seen a demand recovery trend from domestic clients since 2024, and observed accelerated growth in 1Q25. Positive on further business expansions, JCET will solidly increase its capex in 2025, and expects to release more capacities this year from two new factories (Changdian Microelectronics focusing on advanced packaging and a new Shanghai factory for automotive grade products).

• Jingsheng (300316.SZ, Not Covered): Management is positive on the SiC substrate demand supported by increasing applications in EV, and they are increasing their 8-inch capacity. Jingsheng developed multiple new semiconductor equipment, including polishing/ thinning/ EPI growth machines for silicon wafers and equipment for SiC, continuously increasing its product offerings.

AI server, Smartphones, PC supply chain

• Sunny Optical (2382.HK, Neutral): Key discussions were around vehicle lens growth, camera modules mix upgrade, and AI/ AR glasses. Management is positive on shipment YoY growth of vehicle lens, driven by specification upgrade with the smart driving functions available to more car models priced under Rmb150k. Despite slower camera modules shipment growth in 4M25, management noted the company is migrating to high-end projects with multiple innovative solutions (e.g., periscope modules).

• Lingyi (002600.SZ, Buy): Key discussions were around the company’s development in foldable phone components, cooling components for AI servers, and AI glasses. Overall, management is positive on the company’s growth, given Lingyi’s successful track record with major consumer electronics brand makers in the market and the dollar content upgrade for its diversified product lines.

• Huaqin (603296.SS, Buy): Key discussions were around Huaqin’s data center business (AI servers, general servers, switch), consumer electronics products, and new business (automotive electronics, robotics). Overall, management expects a double digit revenue growth in 2025.

• Huafeng (688629.SS, Not Covered): Huafeng offers connectors and interconnection solution for server, industrial and automotive. Management is positive on the demand growth, and expect to continuously ramp up its capacities in 2Q25. Apart from the six productions lines in Phase 1, the company is working on Phase 2/ 3 expansions, and is expanding its customer bases to more Chinese server brands and cloud service providers.

• Lens Tech (300433.SZ, Not Covered): Management is positive on its product expansion from smartphone components to emerging markets (humanoid robots, AI glasses, smart vehicles, etc.), and expects Lens Tech’s profitability to improve through better utilization rate and specification upgrade driving dollar content increase. Read more: Lens Tech Technet takeaway.

Robotaxi, Smart driving and eVTOL

• Horizon Robotics (9660.HK, Buy (on CL)): Management expects its latest HSD system to start mass production in 2025, which will support city NOA features. The company has accumulated 310+ car model design-wins, demonstrating the company’s strong partnership with Chinese car OEMs. Driven by the increasing demand for high power ADAS/ AD chips, Horizon Robotics will continue to launch more powerful computing chips in the future to enjoy volume and content value growth.

• EHang (EH, Buy): Management is positive on accelerated deliveries of EH216-S to clients, supported by PC and OC for mass production and commercialization, and capacity expansion in Guangdong Yunfu and Hefei production sites. Management notes the company will start with the sightseeing market in near-term for EH216-S operation, then gradually expand to urban sightseeing and Air Tax services market. 

• ECARX (ECX, Not Covered): Management remains positive on the smart driving trend in China, and highlights their total solution across SoC, central computing platforms, and software could empower car OEMs to adopt smart cockpit or smart driving (ADAS / AD) quickly, introducing competitive smart cars to the market to attract buyers. The company delivered 30% YoY in 1Q25 revenues, driven by computing platform’s strong ramp up. 

• iMotion (1274.HK, Not Covered): iMotion obtained solid growth in its front view all-in-one systems and domain controllers, and is positive on their progress of customer development. Apart from overseas chipset solutions, the company will introduce domain controllers based on Horizon Robotic’s J6 series chipset, in order to meet the needs of different clients. 

• Black Sesame (2533.HK, Not Covered): Management remains positive on 2025, aiming for double digit revenues growth in 2025, riding on the growing AD / ADAS trend in China, and the company continues to expect car OEMs to rely on supply chain that is more efficient and cost effective compared to developing chipsets in house.

AI Software

• Kingsoft Office (688111.SS, Buy): Management is positive on company’s comprehensive capabilities across AI, office software, and cloud collaboration, supporting WPS 365 enterprise clients’ penetration to grow. On ToC clients, the company provides WPS AI with AI writing/ design/ data analysis capabilities, and prioritizes offering AI features for more users to try this year to enlarge the base.

• Meitu (1357.HK, Not Covered): Management is positive on the expansion of AI productivity tools to improve efficiency and generate high-quality content (images, talking head videos etc.) within seconds. The number of subscribers continues to grow, and management see significant upside in the paying ratio vs. overseas AI productivity software.

• Sensetime (0020.HK, Not Covered): Management remains positive on the generative AI trend in China, and highlights their newly launched foundation model, SenseNova V6, carrying upgraded features with competitive costs across training and inferencing. The company also newly signed a MoU with the Faculty of Law at the Chinese University of Hong Kong to further explore AI-powered user case.

• Beisen (9669.HK, Not Covered): Beisen is the local HR SaaS leader, offering cloud-based All-In-One HCM (Human Capital Management) solutions. Management is positive on ramp up of AI HR applications from this year, and expects to see accelerated AI monetization from 2026E, supported by enhanced capabilities of AI foundation model, and deep partnership with industry clients to provide AI solution catering to their demand.

Early takeaways from China’s tech ecosystem suggest that Asia holds the lead, particularly in handset production, eVTOL, and AI that share similar production ecosystems. This report serves as a wake-up call for Washington elites: re-shoring these critical supply chains is essential for 2030 dominance (see here).