In today’s Smart Money, we’ll look at why China’s latest development has rattled the semiconductor sector and what it means for investors. We’ll look beyond “good enough,” and I’ll show you where the better opportunities lie instead.
China unveils competing AI models (GLM 5.2, Kimi K3, Qwen3.8) and begins domestic DUV lithography production, first units shipping to Chinese chipmakers this year. The shift toward "good enough" AI erodes ASML's monopoly and Western semiconductor advantage; efficiency—not cutting-edge performance—will decide next-phase competition and chipmaker valuations.
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Hello, Reader.
Artificial intelligence is getting cheaper and more efficient, and China is a big reason why.
Here at Smart Money, we’ve discussed how China is developing remarkable AI systems at significantly lower costs than American firms.
Recently, Chinese startup Z.ai released GLM 5.2, a free open-source model. Capable of performing many real-world business tasks, Artificial Analysis quickly ranked it the fourth-best AI model.
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