James Kynge

The other thing is that, as you've already mentioned, China has a clear and explicit policy to boost sales of domestic chips.

That's domestically made chips and not imported chips.

And as we've seen, China is putting its money where its mouth is.

It's got something called the Big Fund.

To give it its proper name, it's called the National Integrated Circuit Industry Investment Fund.

It's basically around $100 billion US dollars.

in three tranches that are given as subsidies to promising Chinese semiconductor companies.

And the latest tranche is about 50 billion US dollars.

So the Chinese state is very much behind companies like Moore's Threads that are aiming to replace foreign companies selling semiconductors into China.

So at the moment, all those things seem to be sort of stacked against this small Chinese company or, well, relatively small.

I mean, it's starting from a low base.

It doesn't make a profit.

It's on the U.S.

export control list.

So there's a lot of things that are not necessarily auguring that well for it, but

the big picture, the size of the market, the size of the government support, and the fact that it makes a product or makes so-called GPUs, which are intended to directly replace quite a few of Nvidia's sales in China.

All of those things, I think, are behind this enormous valuation and the way in which, obviously, investors in China are getting behind it.

But overall, I'd say at the moment, it's too early to say whether this company will be successful.

What's your take?

That's it.