r/baba
BABA T-Head Semiconductors now charging high premiums for their Chips
Alibaba's T-Head chips are on China's approved list for SOEs, selling $1M clusters with high margins amid surging AI compute demand.
- T-Head chips are on the government's approved list, securing procurement from state-owned enterprises.
- Surging domestic AI compute demand allows BABA to sell chip clusters at high premiums ($1M per cluster).
- Extremely high gross margins (60-80%) on these chip sales will significantly boost Q2 revenue and bottom line.
https://www.scmp.com/tech/policy/article/3354993/china-adds-ai-chips-secure-technology-assessment-list-amid-us-curbs?utm\_source=copy-link&utm\_campaign=3354993&utm\_medium=share\_widget
Alibaba T-Head Semiconductors is on the approved list. State owned enterprises can only procure chips from suppliers on the approved list
Compute demand in China is through the roof and BABA now sells a Chip cluster like the one in the picture for US$1M.
Remember, gross margins are between 60 - 80%. Get ready for a massive surge in 2Q Revenue and bottom line
And the stock tanks
tank like no tomorrow wtf man
7nm(baba) chips vs 2 nm(nvda)chips. Vs 1.4nm chips tsmc builing.
For reference 7nm chip are use in 2018 Apple iPhone.
Current Apple m4 are 3nm chips.
T head is ancient technology
Not for China Semiconductors which it's optimised for
?? Baba chips are 2019 models with less efficient more power consumption. China don’t have the tech to make 2nm chips or 1.4 nm chips. Huawei announcement of 1.6nm chips in 2032. Tsmc is finishing plant and starting 1.4nm chips in 2027. China is always 5 years or more behind in chip design. This is why nvda goes up like mad and has a moat that none can fight.
Dosnt Matter If its all theyre allowed to use and electricity unlike us in the West they have plenty
Zhenwu 890 is 2026 MODELS. You clearly don't know what the fuck you are talking about
What is this nothingburger I'm looking at?
Thier T-Head business literally priced at ZERO so it is nice as a POC but don't expect it to move the stock (unless they will show margins improvement)
Wtf are you talking about? They are already enjoying 60% - 80% margins! This is implied in the earnings transcript
Temu chips
Nothingburger
Dude
Bro