An executive from a leading investment firm has shared his perspective on the evolving landscape for technology investments, particularly in hard tech sectors.
Rong Zhicheng, Chairman of Huaxu Fund and Co-founder of Ruisi Xinke, stated that hard technology, especially semiconductors spanning from chips to algorithms, will be a major driving force for progress over the next five to ten years.
He acknowledged the industry is approaching challenges with homogenization and monetization. "But if even the most foundational chips are being developed, how do you ultimately monetize them? It comes down to how one GPU or CPU differentiates from others. Perhaps in five, or at most ten years, hardware will no longer have significant differentiation," Rong remarked.
In his view, future industry competition will not be solely about hardware capabilities. "We are not just making GPUs or the next XPU. Different applications and algorithms will shape the future, leading to platforms that are not entirely on the same level. There needs to be substantial coordination from the chip all the way to the final application and operation; otherwise, it will be quite difficult," he explained.
Regarding current technology investing, Rong suggested that simply identifying hot sectors is not the key to success. "The future isn't about spotting the big trends; everyone can see those—AI, semiconductors, new energy, robotics. The important aspect is how to find the right teams within specific fields and empower them. That is crucial for future success," he said.
Rong emphasized a critical point for investors: "What will be more important for future investing is truly understanding the industry and being able to provide substantial empowerment. Otherwise, it will be very difficult, especially for early-stage investments."
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