➀ China's entry into the WTO in 2001 marked its rise as a crucial player in the global supply chain; ➁ Over the past 23 years, China has become the top exporter in the world, with exports increasing 13.6-fold; ➂ The success of China's transformation is attributed to abundant labor, favorable government policies, and substantial infrastructure investments.
Recent #China news in the semiconductor industry
➀ The US imposes trade restrictions on 140 companies involved in technology trade with China, including SMIC and Huawei. ➁ Three Chinese semiconductor equipment manufacturers are also targeted. ➂ Products from Samsung, Hynix, and Micron are banned. ➃ The move is part of the Biden-Harris administration's targeted approach to hinder China's indigenous production of advanced technologies. ➄ New rules are established to stop the export of products containing US components to China.
➀ The US government has imposed export controls on high-bandwidth memory (HBM) and semiconductor equipment to China to prevent China from acquiring key components for AI development.
➁ The US Commerce Department's Bureau of Industry and Security (BIS) announced the addition of specific HBM products to the list of controlled items.
➂ The controls apply to products with memory bandwidth density of over 2 gigabytes per square millimeter per second.
➀ Trump announced a 10% tariff increase on nearly all Chinese imports as a countermeasure against synthetic opioids 'fentanyl' flowing into the U.S. through Mexico and other countries;
➁ Trump also said he would sign a presidential order to impose a 25% additional tariff on Canadian and Mexican goods on January 20, 2025, and this measure will last until the fentanyl and illegal immigration issues are resolved;
➂ Trump has made illegal immigration a major campaign issue and has explicitly stated that he will use the 'tariff' tool to the fullest to address this issue.
1. Chinese stocks surged in September and early October due to stimulus measures; 2. MCHI reversed lower after a massive gain, down 14.5% by Election Day; 3. Baidu and Alibaba have experienced round-trip movements in the past couple of months.
➀ China warns Japan over increasing semiconductor sanctions; ➁ Threatens to block essential manufacturing materials; ➃ Japan's automotive industry may be affected by Chinese retaliation.
➀ ST has revised its long-term financial targets, pushing the $20 billion revenue target from 2027 to 2030 due to weaknesses in the automotive and industrial markets. ➁ For 2027-28, the revenue target is now around $18 billion with an operating margin of 22-24%. ➂ CEO Jean-Marc Chery expects capex to decline over the next three years but emphasizes ST's position as the largest SiC chip seller and its AI revenue potential.
➀ STMicroelectronics, a European semiconductor giant, announces a collaboration with China's second-largest wafer foundry, Hua Hong Group, to manufacture 40nm microcontrollers (MCUs) in China to support its long-term revenue goals.
➁ STMicroelectronics expects to save millions of dollars by implementing manufacturing restructuring and cost basis adjustment plans, aiming for revenue of about $18 billion and an operating profit margin of 22% to 24% between 2027-2028.
➂ The company's CEO, Jean-Marc Chery, emphasizes the importance of local manufacturing in China, highlighting cost benefits, compatibility issues, and the risk of government restrictions. He also mentions the rapid development cycle of electric vehicles in China as a missed opportunity for any other production location.
➀ Huawei's Ascend AI chip progress stalls due to US sanctions; ➁ The 7nm node lags behind TSMC by eight years; ➂ Huawei struggles to secure EUV equipment from ASML.
➀ Broadcom's deal with ByteDance for a custom AI accelerator chip has been canceled.
➁ The cancellation is due to tightened US semiconductor restrictions on China.
➂ Broadcom could face losses of $2B to $3B from the TikTok ban.
➀ Applied Materials reported lower-than-expected QTR guidance due to China market share loss.
➁ AMAT attributed the weakness to China export restrictions but analysts believe share loss is also a factor.
➂ Domestic Chinese semiconductor equipment makers are gaining market share, potentially reducing AMAT's sales.
➀ China is rapidly integrating DeepSeek AI across key industries, including PCs, robotics, and EVs.
➁ Lenovo is one of the first Chinese firms to incorporate the technology into its Xiaotian AI assistant.
➂ UBTech is reported to be implementing DeepSeek's AI robots into its humanoid robots.
➀ The Trump administration is considering imposing more sanctions on NVIDIA AI chip exports to China.
➁ NVIDIA's H20 AI GPU is being targeted, which is designed to comply with US export restrictions.
➂ NVIDIA is open to working with the administration on this issue.
➀ DeepSeek, a Chinese AI lab, reportedly has access to tens of thousands of NVIDIA H100 AI GPUs despite U.S. export restrictions.
➁ The DeepSeek R1 model competes with leading AI models like OpenAI's o1 and Meta's Llama.
➂ DeepSeek focuses on software-driven optimization and open-source collaboration to advance AI technology.
➀ Nextin is establishing a subsidiary in Wuxi, China; ➁ The subsidiary will begin producing fab equipment in October; ➂ The operation was initially planned as a joint venture with another South Korean company, but Nextin decided to proceed independently; ➃ There were concerns about the US-China trade dispute.
➀ The Apple Vision Pro, launched in 2024, quickly captures a 5% market share in the VR/MR segment, becoming the third-largest player. ➁ Sales of the Apple Vision Pro in China have reportedly fallen short of expectations. ➂ AR glasses are thriving in the Chinese market, with 284K units sold in 2024.
➀ Semicon Japan exhibit high attendance but a muted tone due to concerns over spending; ➁ Rapidus, a Japanese government-backed semiconductor plan, is seen as a fantasy; ➂ Analysts are adjusting their 2025 WFE outlook due to slowing demand; ➃ Chip equipment companies are lobbying for China sales, raising questions about hypocrisy; ➄ Stock market instability and uncertainty about the new administration's semiconductor policies.
➀ AMAT's Qtr performance meets expectations but outlook is weak; ➁ AI strength can't offset market weakness; ➂ Regulatory and China risks add uncertainty.
➀ Concerns over the impact of the U.S. presidential election and the ongoing chip war between China and the U.S. are likely to decrease China's semiconductor equipment spending to below USD 40 billion in 2025. ➁ The tension is expected to affect the global semiconductor supply chain. ➃ The situation highlights the importance of domestic semiconductor manufacturing capabilities.
➀ Qualcomm reported an upbeat first-quarter sales forecast; ➁ nearly 50% of its FY24 sales derived from China; ➂ expecting a 10% quarter-over-quarter revenue growth this quarter