Chip Wars

[Randy W]

Where can a Chinese buyer purchase top-end Nvidia AI chips in the wake of US sanctions? Visiting the famed Huaqiangbei electronics area in the southern Chinese city of Shenzhen is a good bet
https://reut.rs/3CDsys0

from Reuters on Facebook 
https://www.facebook.com/Reuters/posts/pfbid0QYBx9CT3QWnLipUd77gCAyWmzEcu3csQUJ4QiCafTBH94ccKUXQAcapg9cKo3ZLkl

 

 

Inside China's underground market for high-end Nvidia AI chips

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They don't come cheap. Two vendors there, who spoke with Reuters in person on condition of anonymity, said they could provide small numbers of A100 artificial intelligence chips made by the U.S. chip designer, pricing them at $20,000 a piece - double the usual price.

 

[Randy W]

China's export controls on metals used in making semiconductors are ‘just a start,’ an influential trade policy adviser said, as it ramps up a tech fight with the United States days before US treasury secretary Janet Yellen visits Beijing. 
https://reut.rs/46yaNYN

from Reuters on Facebook
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China adviser warns chipmaking export curbs are 'just a start', as Yellen visit looms

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Germanium is used in high-speed computer chips, plastics, and in military applications such as night-vision devices as well as satellite imagery sensors. Gallium is used in building radars and radio communication devices, satellites and LEDs.

China's abrupt announcement of controls from Aug. 1 on exports of some gallium and germanium products, also used in electric vehicles (EVs) and fibre optic cables, has sent companies scrambling to secure supplies and bumped up prices.

Announced on the eve of U.S. Independence Day and just before Yellen's planned visit to Beijing from Thursday, analysts said it was clearly timed to send a message to the Biden administration, which has been targeting China's chip sector and pushing allies such as Japan and Netherlands to follow suit.

China's move has also raised concerns on whether restrictions on rare earth exports could follow, they said, pointing to how it curbed shipments 12 years ago in a dispute with Japan. China is the world's biggest producer of rare earths, a group of metals used in EVs and military equipment.

 

 

[Randy W]

and from CEPA - Center for European Policy Analysis

Chip Wars: China Strikes Back

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Not only are Chinese chip makers hurting, but the break from China is also hurting Western semiconductor makers. NVIDIA, for example, claims it could lose $400 million of sales in one quarter because of the ban on selling its AI chips. ASML earns 15% of its revenues in China – this will now diminish as it cannot sell its latest equipment to China, and legacy equipment is likely to be sourced locally.

China is counter-attacking. It has banned chips from US manufacturer Micron Technology, claiming, without evidence, that the US chips failed a “network security review.” The Micron ban was announced just a day after a G7 Summit in Japan, where democratic leaders agreed to reduce dependence on China. That’s not a coincidence. Micron makes 10% of its revenue from the China market – revenue which is now under threat.

Even so, Micron says it remains committed to building a plant in China. This move may be dangerous, depending on what concessions the US chipmaker must make. In the past, Beijing has used the cover of “joint ventures” to steal Western assets, as demonstrated by UK-Japanese chip designer ARM’s unhappy experience.

It’s not only Western chipmakers that face Chinese retaliation. Beijing is hitting out at Western companies from wood pulp to telecoms equipment – confirming its actions are political. 

 

 

[Randy W]

Tech war: Chip battle may seem like a plot from a TV drama but Beijing is focused on reality as US silicon curtain draws near

• As the US and its allies have escalated chip export restrictions on China, Beijing has been forced to respond with calculated retaliatory measures
• A key change seen in China’s domestic semiconductor industry has been closer collaboration between upstream and downstream players

from the SCMP

China finds itself on the hard side of a technology war with the US. Graphic: SCMP/Lau Ka-kuen
 

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In a fictional TV drama, a Chinese private technology firm takes on a state project to make a laser device for a deep ultraviolet lithography machine, equipment which is essential for advanced chip production and currently subject to strict US export restrictions.

The plot thickens when the firm’s boss is detained by a foreign government, and his wife – who has taken temporary control of the business – says the enterprise is on the brink of collapse.

Although the company’s chief researcher is tempted to cash out and make a quick market profit, the company’s management presses ahead. The wife remortgages her home to raise funds and sells equity stakes, while the research team continues to overcome technical difficulties.

Without giving away the entire plot, due to internet leaks we know there is a happy ending to the drama, entitled The Best Chip, or My China Chip. The 24-episode production was originally scheduled to run on Chinese video streaming site Youku on July 10 but its release was postponed at the last minute due to “scheduling adjustments”

 

 

 

[Randy W]

Intel’s new Chinese chip innovation centre is a collaboration with a Shenzhen district, deepening ties amid US scrutiny

• The US chip giant partnered with the Nanshan district government and local tech firms on a centre focusing on AI, chip applications and edge computing
• Intel has been seeking to maintain business in the world’s second-largest economy, with CEO Patrick Gelsinger travelling there twice in three months

from the SCMP

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“We will further leverage Intel’s technology and ecosystem strengths … facilitate the integration and development of emerging sectors in the Greater Bay Area and across the country … and help develop the digital economy,” Intel China chairwoman Wang Rui said at the centre’s unveiling event.

Intel is one of multiple US tech giants trying to maintain business in the world’s second-largest economy amid the souring of US-China ties that has seen Washington ramp up chip export restrictions. The tech war has also bolstered demand for electronic components in China, and for chips in particular.

Intel CEO Patrick Gelsinger concluded a low-key trip to China earlier this month, his second to the country in three months.

For the Shenzhen centre, Intel will partner with six local tech firms including gadget maker Ugreen and fabless integrated circuit firms Senary Technology Group and Chipsea Technologies, which all signed an agreement with the chip giant during the launch event. The companies will set up multiple joint labs to research areas including low-carbon and energy-saving IT solutions, PC and server chips, and smart transport.

Intel also pledged technical and resource support for companies located in Nanshan, helping with market roll-outs and industry access.

 

Video dated Sep 1, 2022
(previously posted in this thread)
 

Edited July 31, 2023 by Randy W (see edit history)

[Randy W]

US TSMC plant faces calls to ban Taiwanese workers; German plant expected

from 9to5Mac

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While things started on a high, with Apple touting US-made chips for older devices in its line-up, construction of the Arizona plant isn’t going well.

There have been questions about worker safety at the site, and the project is behind schedule, and over budget. Production has already been pushed into 2025, from 2024, and there is talk of US-made chips costing more than those made in Taiwan.

To help address this, TSMC wants to bring in around 500 Taiwanese workers. The company says that these workers have experience of setting up similar plants in Taiwan, so will help with faster and more cost-effective working.

However, unions say it breaks a promise to create jobs for American workers.

Petition for EB-2 visas to be denied

The Arizona Pipe Trades 469 union has started a petition to block the issuing of these visas.

 

 

Biden’s $52 billion bet on chips has a big problem—American semiconductor firms take twice as long to hire as anyone else
An analysis of the top 50 producers by Revelio Labs supports what chipmakers have long said: the U.S. doesn’t have enough candidates.

from Fortune

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It’s taking semiconductor firms more than twice as long as their peers in other industries to hire personnel such as technicians or mechanical engineers, with the typical process stretching to about three months, according to an analysis of the top 50 chip producers in the US by Revelio Labs, a labor-market data analyst. 

That’s ominous news for President Joe Biden’s administration, which is pumping $52 billion into the country’s chip industry in a bid to reduce reliance on Asian supply chains and deliver thousands of jobs. The subsidies are already galvanizing a wave of investment across the US, but a hiring bottleneck could slow progress. 

Chipmakers have long sounded the alarm that the US doesn’t have enough job candidates with a background in science, technology and engineering. The firms are on course to add 115,000 jobs by 2030, according to the Semiconductor Industry Association — but at current degree completion rates, the group says, nearly three-fifths of those jobs could remain unfilled.

 

 

 

 

[Randy W]

Hopefully the "Snow Bull" people are paying attention

Biden orders ban on certain US tech investments in China

from Reuters

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The long-awaited order authorizes the U.S. Treasury secretary to prohibit or restrict U.S. investments in Chinese entities in three sectors: semiconductors and microelectronics, quantum information technologies and certain artificial intelligence systems.

The administration said the restrictions would apply to "narrow subsets" of the three areas but did not give specifics. The proposal is open for public input.

The order is aimed at preventing American capital and expertise from helping China develop technologies that could support its military modernization and undermine U.S. national security. The measure targets private equity, venture capital, joint ventures and greenfield investments.

Biden, a Democrat, said in a letter to Congress he was declaring a national emergency to deal with the threat of advancement by countries like China "in sensitive technologies and products critical to the military, intelligence, surveillance or cyber-enabled capabilities."

China said on Thursday it is "gravely concerned" about the order and that it reserves the right to take measures.

The order affects normal operation and decision-making of enterprises, and undermines the international economic and trade order, a statement from the Chinese Commerce Ministry read.

 

 

Edited August 11, 2023 by Randy W (see edit history)

[Randy W]

Tech war: China's memory chip efforts face stronger headwinds as Micron, Samsung, SK Hynix race ahead on AI

from the SCMP via Yahoo 

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Not long ago, China was seen as catching up quickly with international suppliers in the field of advanced 3D NAND flash and DRAM memory chips, but the gap could have widened again in the era of ChatGPT as Yangtze Memory Technologies Corporation (YMTC) and ChangXin Memory Technologies (CXMT) are unable to press ahead with catch up efforts due to the US export restrictions.

In comparison, US-based Micron Technology, which is banned by Chinese authorities from selling certain products to some local clients, last month announced samples of its high-bandwidth memory 3 (HBM3) Gen2 die to support generative AI applications. Samsung Electronics said last month it has completed development of GDDR7 DRAM for AI applications, and it will double down on high-bandwidth memory in 2024 to meet growing demand in AI applications. Meanwhile, rival SK Hynix, which tops the global HBM market with a 50 per cent market share, is also set to double its HBM production next year for AI servers.

Analysts and industry professionals told the South China Morning Post that Micron, Samsung and SK Hynix remain the default choice for many downstream buyers and that Beijing's restrictions on Micron, which previously had about a 15 per cent market share in China's server DRAM market, mostly benefited its two South Korean competitors.

 

 

 

 

[Randy W]

Because it's America's responsibility to bring China up to speed?

US wants China’s chip industry 5 generations behind cutting edge, head of equipment maker AMEC says at Wuxi conference

• AMEC CEO Gerald Yin said escalating export restrictions have revealed the ‘true intention’ of the US to curb China’s semiconductor progress
• The comments were made during a semiconductor equipment conference in Wuxi, where Yin addressed a packed hall of industry professionals    

from the SCMP

At an industry conference, the head of one of China’s largest semiconductor equipment firms, Advanced Micro-Fabrication Equipment Inc China (AMEC), told a crowd that US export restrictions revealed its intent to keep China’s chip industry five generations behind the cutting edge. Photo: Shutterstock

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“The October rules really exposed the US’ true intention, which aims to fix China’s chip-making on 28-nanometre, at least five generations behind the global leading edge of 3-nm to 14-nm,” Yin said during his talk at the conference. “We can’t accept [this],” he added.

 . . .

Chinese semiconductor equipment firms still lag global peers in both market share and technological sophistication, according to industry professionals attending the conference. China’s tool makers have virtually no global presence in some segments such as lithography. Catching up in these areas is an uphill battle for Chinese firms in a worsening geopolitical environment that is squeezing out foreign money and technological cooperation.

 

 

 

[Randy W]

The "tipping point" seems a little unclear, since, according to the article, the tech sector is still growing.

China’s hi-tech manufacturing reaches ‘tipping point’ amid US curbs as output growth slows to record low

• Industrial output from China’s hi-tech manufacturing sector grew by just 0.7 per cent in July, year on year, the lowest pace since the data started in September 2018
• Beijing is eager to become more self-reliant amid Western containment efforts, but the abrupt fall in China hi-tech industries is cause for high vigilance, warned analysts

from the SCMP

Last week, Washington further escalated the tech war by imposing restrictions intended to curb US venture capital and private equity investments in Chinese companies. Photo: AFP
 

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Beijing is eager to become more self-reliant amid Western containment efforts, but 0.7 per cent growth in July, year on year, marked the lowest pace since the monthly data started in September 2018.

Hi-tech industrial output, meanwhile, rose by 1.6 per cent in the first seven months of 2023, year on year, having risen by 1.7 per cent in the first half of the year, the National Bureau of Statistics also confirmed on Tuesday.

Despite slowly increasing, the year-to-date growth was still lower than the rise of 7.4 per cent at the end of 2022 and 18.2 per cent in 2021.

Outside the temporary fall that resulted from the coronavirus-related disruptions in early 2020, the increase in the first seven months of the year also marked the lowest pace in nearly two decades since China first reported the data in 2003.

 . . .

“The abrupt cliff-fall decline in hi-tech industries this year is cause for high vigilance,” said a report last month by the Renmin University of China.

“It very much likely indicates that the impact of external technological blockades on China’s hi-tech industries has reached a tipping point.”

 . . .

But for the first time in more than a decade, the growth rate of the hi-tech sector is consistently lower than the manufacturing sector or the total industrial output, which grew by 4.2 and 3.8 per cent, respectively, in the first seven months of the year despite a short temporary slump in early 2020.

 

 

[Randy W]

China puts onus on computing power as US tech war shows no sign of abating

• With global competition for data and computing power intensifying, China will build more data and computing hubs while committing to technological breakthroughs
• China has the world’s second-largest computing capacity, but its expansion is necessary to boost the nation’s digital economy and ward off Washington’s tech curbs

from the SCMP 

A woman demonstrates a brain-computer interface for stroke victims at this month’s World Robot Conference in Beijing, where China’s cutting-edge tech advancements were on display. Photo: Xinhua
 

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Urgent calls to action by high-ranking Chinese officials reflect how Beijing is scrambling to bolster the nation’s technological self-sufficiency as the administration of US President Joe Biden has stepped up tech curbs to contain China’s technological progress and economic development.

“Computing power is now the cornerstone of digitisation,” said Jin Zhuanglong, the head of the Ministry of Industry and Information Technology (MIIT), at a forum on Saturday in the Ningxia Hui autonomous region.

With more than 41 per cent of its economic output generated from the digital economy, China has the world’s second-largest computing capacity, after the United States.

 . . .

“Global competition for data and computing power has notably intensified, with major nations enhancing their strategic deployment in computational power and computing industries, aiming to seize a commanding position in future global competition,” he said at the same forum.

“China must enhance systematic innovation and firmly get hold of core technologies,” he added, noting that policies will soon be rolled out to enhance the high-quality development of computational infrastructure, without giving further information.

 

 

from Reuters

Insight: China quietly recruits overseas chip talent as US tightens curbs

 

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Two years after it stopped promoting the Thousand Talents Plan (TTP) amid U.S. investigations of scientists, China quietly revived the initiative under a new name and format as part of a broader mission to accelerate its tech proficiency, according to three sources with knowledge of the matter and a Reuters review of over 500 government documents spanning 2019 to 2023.

The revamped recruitment drive, reported in detail by Reuters for the first time, offers perks including home-purchase subsidies and typical signing bonuses of 3 to 5 million yuan, or $420,000 to $700,000, the three people told Reuters.

China operates talent programs at various levels of government, targeting a mix of overseas Chinese and foreign experts. The primary replacement for TTP is a program called Qiming overseen by the Ministry of Industry and Information Technology, according to national and local policy documents, online recruitment advertisements and a person with direct knowledge of the matter who, as with others, spoke on the condition of anonymity because of the issue's sensitivity.

 

 

[Randy W]

Tech war: Huawei’s silence over its latest Mate smartphone’s advanced chip raises speculation on where and how it was made

• Chinese benchmarking website AnTuTu has identified the Mate 60 Pro’s central processing unit as the HiSilicon-designed Kirin 9000s, which supports 5G
• Huawei’s deliberate silence on that CPU reflects the lengths the firm has taken to quietly revive its smartphone business amid US sanctions

from the SCMP

Huawei Technologies’ new Mate 60 Pro smartphone. Photo: Handout

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At the Mate 60 Pro’s surprise launch on Tuesday, Huawei declined to provide details about the handset’s processor or on whether it supports 5G mobile networks, prompting industry analysts, tech bloggers, consumers and other interested parties to look for answers outside the company.

Based on tests that it conducted on the smartphone, Chinese benchmarking website AnTuTu on Wednesday identified the central processing unit (CPU) in the Mate 60 Pro as the Kirin 9000s from Huawei’s chip design unit HiSilicon. The CPU has a 12-core configuration and a top clock speed of 2.62 gigahertz, according to AnTuTu.

Although HiSilicon’s website did not provide any information about that CPU, the firm’s existing Kirin 9000 and 9000e chipsets both support 5G connectivity and artificial intelligence applications, and are built on the advanced 5-nanometer manufacturing process. The new Mate’s download speeds can reach 500 megabits per second, which exceeds the 100Mbps speed requirements for 4G networks, according to independent tests run by some consumers.

 . . .

The new Mate’s graphics processing unit was identified as another Chinese-designed chip, the Maleoon 910, according to AnTuTu, which did not provide details.

 

 

 

[Randy W]

It's making a comeback in the smartphone market, but analysts say its chances of taking on Apple and Samsung Electronics again remain slim. Read more: sc.mp/581j

#huawei #mate60 #sanctions #mate60pro #scmpnews #scmp

from the SCMP on Facebook 
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Huawei’s Mate 60 Pro will help it take lost ground in China but can it help the smartphone giant regain global glory？

• Huawei’s Mate 60 Pro may prove popular with domestic consumers but analysts say its overseas appeal will be limited
• Counterpoint says new model could help Huawei make it back into the top four brands in China in fourth quarter but there will be no race to the top

Can the Mate 60 Pro revive Huawei’s fortunes? Photo: EPA-EFE
 

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In the past week, Chinese consumers have flocked to Huawei’s usually quiet stores to snap up the new model, priced at 6,999 yuan (US$958) and with a home-made processor just a few generations behind the cutting edge, raising hopes that the Chinese giant may be set for a revival.

However, although the Mate 60 Pro from Shenzhen-based Huawei may prove popular with domestic consumers, analysts say its overseas appeal is likely to be limited by the lack of popular apps such as Google Maps. Presales for the phone are only available in China for now, with no information on whether the handset will be sold in overseas markets.

“Huawei’s strong return will have a huge impact on China’s smartphone market in the second half and in 2024, with more impact on other Android-based phone brands vying for the high-end Chinese smartphone market,” said Linda Sui, a senior smartphone analyst with TechInsights.

Sui added that although Huawei may reshuffle the top five smartphone brand rankings in China, it poses less of a threat to California, Cupertino-based Apple because the brands have different target client bases.

 

 

[Randy W]

First impressions of the Huawei Mate 60 Pro smartphone.
Read more: https://www.scmp.com/lifestyle/gadgets/article/3234080/huawei-mate-60-pro-smartphone-first-impressions-world-beating-camera-good-enough-chip-no-google-apps?utm_source=fb&utm_medium=social&utm_campaign=GME-O-scmp-social-uv&utm_content=20230915&fbclid=IwAR3-HMx9rhPrQc5q72c2KDFsOOdCzqgKOAl9okrL-QAQXPwraK_ZTFX3g_w

#huawei #mate60pro #scmpnews #SCMP

from the SCMP on Facebook
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Huawei Mate 60 Pro smartphone first impressions: world-beating camera, good enough chip, no Google apps but Facebook, Instagram, X, Spotify work

• The Huawei Mate 60 Pro has a breakthrough ‘telemacro’ camera lens, and the expected flagship phone features: great speakers, a decent battery and plenty of RAM
• The Kirin 9000s chip, while not as good as the latest from Apple and Qualcomm, wins on 5G connectivity and, considering US sanctions, is quite an achievement

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Launched last week in China without advance notice or marketing, the Mate 60 Pro is the first Huawei handset in three years to run on the tech firm’s self-designed silicon.
The three-year hiatus was the result of sanctions imposed by the United States that deny Huawei access to advanced silicon manufacturing technology.

How and where Huawei was able to manufacture the 7nm chip that powers the Mate 60 series is the subject of intense speculation within the US government.

 . . .

The Kirin 9000S is a fine performer, allowing the Mate 60 Pro to operate smoothly, but it isn’t cutting edge – 7nm is about two generations behind Apple and Qualcomm’s silicon, which are on 5nm and 4nm architecture.

In benchmark tests, the Kirin 9000S scores lower than the A15 Bionic chip in the iPhone 14 Pro, as well as the Qualcomm Snapdragon 8 Gen 2 chip powering most Android flagship chips. But the Kirin 9000S takes the win in 5G connectivity.

In various speed tests both I and industry peers conducted, the Kirin 9000S was found to reach peak download speeds of 1Gbps.

And from my testing using China Mobile’s 5G network in Hong Kong, the Mate 60 Pro produced slightly faster download speeds than the iPhone 14 Pro Max or Samsung Galaxy Z Fold 5.

 

 

Edited September 15, 2023 by Randy W (see edit history)

[Randy W]

Apple’s iPhone 15 draws long queues in China despite competition from Huawei

• Customers piled into Apple’s flagship stores on Friday, while online delivery platforms were flooded by new orders
• Chinese consumers are increasingly willing to pay for high-quality products, as smartphone prices continue to rise, analysts say

from the SCMP

Customers queue at an Apple store in Beijing on Friday, the first day of sale of the iPhone 15. Photo: Bloomberg

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On JD Daojia, a grocery delivery platform under e-commerce giant JD.com that said it had partnered up with more than 4,600 Apple resellers, sales of the iPhone 15 series in the first two hours of launch were up 253 per cent from last year’s iPhone 14 series, according to a social media post by affiliate Dada.

Orders coming from lower-tier cities also jumped six times compared with last year’s iPhone launch, the post said, matching the fervour seen when Apple stores on e-commerce sites began accepting pre-orders last Friday.

 . . .

Li said that while she was aware of Huawei’s new Mate 60 series, which has stoked nationalist sentiment in the country, she preferred the aesthetics of premium Apple handsets.

A 34-year-old film industry worker in Beijing, also surnamed Li, managed to get hold of an iPhone 15 Pro Max by reserving an in-store pickup in Sanlitun through Apple’s website.

Li, previously the owner of an iPhone 14 Pro Max, said he was attracted by the latest premium iPhone’s titanium body, which reduces its weight. “I use a wide range of Apple devices,” he said. “I’m not interested in making a switch to Huawei.”