Technology

Kuka shows bargaining power of China’s M&A targets

29 Jun 2016

Foreign companies with prized technology can demand much more than a fat premium from Chinese bidders. That is the message from Midea's extensive binding agreement to keep the robotics maker's headquarters, factories and jobs in Germany for the next seven and a half years.

China’s innovators set to ratchet up patent wars

28 Jun 2016

Homegrown firms have been busy building a war chest of patents. A recent ruling in Beijing against a design of Apple’s iPhone suggests local tech rivals are increasingly willing to wield them too. As competition for market share heats up in China, more skirmishes will follow.

Qualcomm lawsuit is test of its China standing

27 Jun 2016

Less than two years after a record antitrust settlement with Beijing, the U.S. chip giant is suing a local handset maker for breaching patent agreements. It's a big gamble on China's legal system. The outcome will set the tone for the market where Qualcomm earns half its revenue.

SoftBank’s mixed signals prevent market upgrade

22 Jun 2016

The Japanese group has shown it can sell winners and tackle debts, with an $18 bln blizzard of selloffs. But botched succession planning tightens founder Masayoshi Son’s grip. The group’s sprawl, problematic core holdings and grand ambitions mean investors will remain wary.

ASML’s $3 bln deal is a big bet on tiny tech

16 Jun 2016

The semiconductor-equipment maker is buying Taiwan's Hermes Microvision. The target's sales have plunged and global chip demand is cooling. But ASML's biggest-ever deal should make it even more indispensable to manufacturers as they prepare to make next-generation chips.

Alibaba’s new candour is overdue but welcome

15 Jun 2016

The Chinese e-commerce giant has promised to shed more light on the financial performance of a range of businesses. That’s a relief for investors amid an accounting probe by U.S. regulators. A better-than-expected revenue forecast also helped ease concerns about slowing sales.

China engineers low-risk $3 bln chip deal with NXP

14 Jun 2016

Beijing’s appetite for overseas semiconductor assets is controversial. Yet NXP is selling a commodity business, based in Europe, to a familiar Chinese buyer at a reasonable price. So this deal is less likely to short-circuit for either regulatory or financial reasons.

Baidu’s health setback may be a chronic condition

14 Jun 2016

A crackdown on healthcare advertising has forced China’s top search engine to cut its quarterly revenue forecast by over 10 pct. The risk is that Beijing’s medical sector cleanup permanently damages Baidu’s ad business. The path to recovery depends on finding new revenue sources.

India’s smartphone giant eyes China role reversal

3 Jun 2016

Micromax has bested Chinese rivals in its home market. To realise its lofty goal of being one of the world's top five handset makers by 2020, it must succeed in the People's Republic. Raising the fresh capital required might be the easiest part for the Indian firm.

India’s unicorns limp along without foreign funds

2 Jun 2016

As capital dries up, signs of stress are emerging among the country’s few $1 bln-plus startups. Delayed hires have prompted a business school spat, while a founder ranted about valuations on his blog. At least unprofitable habits are vanishing along with unreal expectations.

SoftBank’s $8 bln Alibaba sale is late but prudent

1 Jun 2016

Masayoshi Son's tech and telecom conglomerate is offloading 4.2 pct of the Chinese e-commerce giant to pay down debt. The hugely successful investment is now more burden than blessing. As SoftBank takes a more disciplined approach to its portfolio, further disposals may follow.  

Time for Lenovo to get a grip in mobile

27 May 2016

The tech giant is a trailblazer for Chinese firms going global by doing deals overseas and adopting Western governance. The ill-judged takeover of Motorola’s old mobile business is testing that reputation. Absent a quick turnaround, Lenovo’s credibility will take a real dent.