➀ SMIC reports record-breaking revenue of US$2.17 billion for Q3 2024; ➁ The revenue represents a 14% sequential increase and a 34% year-over-year surge; ➂ The company has exceeded the US$2 billion mark for the first time.
Recent #China news in the semiconductor industry
➀ GlobalFoundries has been fined $500,000 for shipping $17 million worth of silicon wafers to China's SJ Semiconductor, which is on the US entity list. ➁ The violation was due to a data error, and GlobalFoundries voluntarily disclosed the shipments. ➃ The fine is a rare instance of a U.S. semiconductor firm facing financial repercussions under US export control policies.
➀ Chinese researchers linked to the PLA have developed an AI model named ChatBIT, utilizing Meta's open-source Llama model for military applications. ➁ The model is said to perform at approximately 90% of the level of OpenAI's GPT-4 LLM. ➂ Some experts question the effectiveness of the small dataset used for training, but the project may be a proof of concept for larger models to come.
➀ China tightens export controls on rare earth metals for chipmaking; ➁ Exporters must detail the use of restricted materials; ➂ China's near-monopoly on rare earths creates hurdles for foreign tech companies.
➀ TrendForce reveals that Chinese foundries will lead the expansion of mature process capacity in 2025; ➁ The global top 10 mature process foundries are expected to see a 6% increase in capacity; ➂ The growth is attributed to China's domestic IC substitution policies and pricing pressures.
➀ ASML CEO Christophe Fouquet predicts the U.S. will increase pressure on semiconductor technology sales to China.
➁ Fouquet believes the key issue is what is beneficial for the Netherlands and Europe.
➂ ASML's business with China focuses on mature technology with low relevance to national security.
➃ Current export restrictions have caused China to lag behind in advanced technology by 10 to 15 years.
➄ Fouquet estimates the chip market will recover in 2025, with 2026 expected to be ASML's 'growth year'.
➀ Photoresist is a critical material for chip manufacturing, with Chinese companies making significant progress in breaking international monopolies.
➁ The article explains the working principle of photoresist and its applications in various industries.
➂ It highlights the progress made by Chinese companies in the field of photoresist, including the success of some domestic companies in developing and producing various types of photoresist.
➃ However, it emphasizes the significant gap between Chinese and Japanese photoresist technologies, particularly in the high-end and advanced markets.
➄ The article discusses the reasons behind the strength of Japanese photoresist companies and suggests that Chinese companies need to focus on research and development, industrialization, and building an industry ecosystem to catch up.
1. China's economy is slowing, with growth at its weakest pace since Q1 2023 due to property sector issues, weak consumer demand, deflationary risks, and slowing export growth. 2. The government's growth target of 'around 5%' may not be met unless more stimulus is implemented. 3. China's central bank has announced 800 billion yuan of stock market liquidity measures and is considering interest rate cuts to boost consumer spending.
➀ Investors are realizing the upcycle isn't as strong as stocks indicate.
➁ Industry bifurcation between AI and the rest of the industry continues.
➂ China's spending risk/overhang is now impacting the market.
➃ ASML's order decline indicates a more gradual recovery in the semiconductor industry.
➄ The AI sector remains strong while the majority of the chip industry is weak.
➅ Many investors mistakenly take AI's success as an indicator of the entire chip market.
➆ The chip industry is bifurcating into AI and non-AI sectors.
➇ China's spending is unsustainable and could lead to sanctions.
➈ The chip equipment industry is likely to follow ASML's downward trend.
➉ Investors should be more selective in chip stock investments.
➀ China's Cybersecurity Association recommended a cybersecurity review of Intel's products sold in China due to frequent vulnerabilities and poor reliability.
➁ Intel's actions in catering to the US government's policies on Xinjiang and China's suppliers are criticized.
➂ The review could impact Intel's revenue in China and benefit domestic CPU manufacturers like Hygon and Zhaoxin.
➀ A government-backed think tank in China recommends data centers to use Nvidia's A100 and H100 high-performance computing units.
➁ The recommendation comes with a warning of high costs involved in shifting to domestic solutions.
➂ Despite US sanctions and restrictions on Nvidia's advanced GPUs, China's domestic GPU start-ups have made progress in both hardware and software.
➀ Macron warns that if the EU continues with its traditional agenda, it may be left behind by the market and could collapse; ➁ The EU's problem is not just short-term economic difficulties but a lack of advanced productivity; ➂ The EU has been struggling to keep up with technological advancements in new energy and renewable energy sectors, with China taking the lead; ➃ China's automotive industry is gaining ground in Europe, raising concerns among EU policymakers.
➀ Dell'Oro reports a 10% YoY decline in global telecom capex in H1 2024; ➁ Operators are scaling back investments in 5G and fixed broadband due to factors like inventory build-up, weaker demand in key regions, and technology monetization challenges; ➂ Global carrier revenues are expected to grow at a 1% CAGR over the next three years.
➀ China's IC exports reached $104 billion in the first eight months of 2024, a 24.8% increase; ➁ The strong growth despite the recent global downturn in the semiconductor industry; ➂ The recovery is attributed to the global semiconductor market.
➀ China's IC exports reached $104 billion in the first eight months of 2024, marking a 24.8% year-on-year increase; ➁ This growth is more than 1.5 times the level of a decade ago; ➂ Despite a downturn in the global chip industry in 2023, China's IC export growth rate improved from 3.5% in 2022 to 18.2% in August 2024.
➀ The NSTC reports that China's semiconductor industry is 10 years behind Taiwan's; ➁ The focus is on the significance of advanced technology and innovation in the chip industry; ➂ The need for Taiwan to preserve its competitive advantage is highlighted; ➃ The strategies and investments of Taiwan in the chip sector are discussed.
➀ China's Ministry of Industry and Information Technology announced two domestically-made lithography systems; ➁ The systems include a KrF scanner for 130nm ICs and an ArF scanner for 65nm chips; ➂ China's technology is catching up with Canon, Nikon, and ASML, though still behind in EUV; ➃ Nikon's history of lithography development showcases the rapid progress in the field; ➄ ASML dominates the high-end market with EUV technology, while Nikon and Canon focus on DUV systems; ➅ SMEE is China's leading producer of IC lithography equipment; ➆ The US sanctions on ArF immersion systems push China to accelerate development.
➀ China is pressuring domestic companies to buy homegrown AI chips instead of NVIDIA products to promote the localization of the semiconductor industry in response to US sanctions. ➁ Regulatory agencies have advised companies against purchasing NVIDIA's H20 chips for AI model development and operation. ➂ The policy is not a direct ban but implemented through guidance, aiming to avoid harming domestic AI startups and escalating tensions with the US.
➀ China has over 3,500 smartphone-related enterprises, with Guangdong, Shandong, and Hunan leading in numbers; ➁ The industry shows rapid growth with smartphone production exceeding 560 million units in the first half of 2024; ➂ The article highlights the importance of Shenzhen and Dongguan as major smartphone production hubs, with OPPO and vivo's parent company BBK leading the way; ➃ The article also discusses the shift of Chinese electronics manufacturing to Vietnam, with a focus on semiconductor industry development.
➀ Electronics production in developed countries is showing slow growth or decline in 2024; ➁ Taiwan and South Korea have seen strong growth, driven by AI servers and smartphones; ➂ Vietnam and India are experiencing significant production growth, with Vietnam benefiting from Samsung's investment and India from multinational manufacturing; ➃ China remains dominant but growth has slowed as companies shift manufacturing overseas.