Daily Tech Roundup: U.S. Trade Curbs Help Japanese Chip Industry
Researchers predict more than half of new smartphones in China will feature AI by 2027, India’s Zee Entertainment denies it’s back in merger talks with Sony
Chipmaking equipment is showcased at an industry exhibition in Tokyo on Dec. 13. Photo: VCG
Welcome to the Daily Tech Roundup — a briefing of the top technology news making headlines in China and the rest of Asia.
U.S. trade curbs help Japanese chip industry’s China business
Japan’s semiconductor-equipment makers are enjoying strong demand from China, in part due to trade controls imposed by Washington and to Beijing stepping up efforts to boost the local chip industry.
“In China, there’s demand for securing legacy generation chips in mass, as advanced chips cannot be exported to the country,” Masato Goto, said president of Screen Semiconductor Solutions Co. Ltd. The company, a unit of Japan’s Screen Holdings Co. Ltd., is a major supplier of machines used, among other things, for washing chip wafers to remove minuscule metal pieces.
China sales as a share of total for the unit are expected to reach 44% in the fiscal year ending this March, which is up from the previous fiscal year’s figure of 19%.
More than half of new smartphones in China will feature AI by 2027, forecast says
Smartphones featuring artificial intelligence (AI) will make up more than 50% of the devices shipped to the Chinese market by 2027, a new whitepaper forecast.
The whitepaper, issued Tuesday by Chinese smartphone-maker Oppo Co. Ltd. and market research firm IDC, predicted shipments of AI-enabled handsets will reach 150 million that year, up from an estimated 37 million projected for 2024. Globally, shipments of the next generation of AI smartphones will hit 170 million devices this year, or 15% of the total.
India’s Zee Entertainment denies restarting $10 billion deal talks with Sony
Zee Entertainment Enterprises Ltd. on Monday denied domestic media reports that it was back in talks with Sony Group Corp. over a $10 billion merger deal, a regulatory filing said. The reports had suggested that Zee Entertainment was attempting to revive the deal, prompting a 10% surge in its stock price. The two companies had earlier been in negotiations for a merger that aimed to strengthen Sony’s foothold in India, but the Japanese company walked away from the talks in January.
ByteDance rebuts rumors of a ‘Chinese version of Sora’
ByteDance Inc. on Tuesday responded to speculation that it is developing a Chinese version of OpenAI’s Sora called Boximator. “Boximator is a research project exploring technical methods for controlling object movement in video generation fields. It is not yet ready to be launched as a complete product and still lags behind leading international video generation models in terms of image quality, fidelity and video duration,” ByteDance said. Boximator is a text-driven video model developed by ByteDance that allow the movement of characters or objects in videos to be controlled through text.
EU launches anti-subsidy probe into China train-maker unit
The European Union has opened an unprecedented investigation into a unit of China’s state-owned train maker CRRC Corp. Ltd. over alleged unfair subsidies.
The European Commission announced the probe Friday on Qingdao Sifang Locomotive and Rolling Stock Co. Ltd. over its bid for a 610 million euro ($657 million) public procurement contract in Bulgaria to provide electric trains along with maintenance and staff training.
The probe, which could block the company from the deal in the worst outcome, is the first in-depth investigation under the Foreign Subsidies Regulation that came into effect in July designed to prevent foreign subsidies distorting the market of the 27-country block.
Q&A: Summers draws line on use of U.S. export controls against China
U.S. controls on the exports of certain technologies to China are important and should be maintained, but these restrictions should focus on sensitive fields like national security and should not turn into efforts to “hold down the Chinese economy,” former U.S. Treasury Secretary Lawrence Summers told Caixin in an interview.
The interview took place last month as Summers was wrapping up a three-day visit to China, during which he met with senior officials and attended symposiums with students and business leaders.
The 69-year-old American economist is among a number of high-profile figures advocating for enhanced communication between China and the U.S., whose relations have soured in recent years over issues such as Taiwan, the South China Sea, as well as U.S. tariffs on Chinese goods, and export curbs on advanced chips.
JD.com in early-stage talks to buy U.K. retailer Currys
Chinese e-commerce operator JD.com Inc. is the latest company to consider buying U.K. electronics retailer Currys Plc, as a path toward new avenues for growth away from home.
JD.com “is in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys,” the company said in a regulatory filing on Monday. It came in response to a report by The Telegraph that the two sides held exploratory talks in recent weeks. JD.com has until March 18 to decide whether to make an offer.
BYD Unveils Plan to Boost Brand Image, Global Reach
BYD Co. Ltd. has unveiled a plan to further improve its brand image and expand its global influence, which could help the Chinese carmaker strengthen its position as the world’s leading electric vehicle (EV) manufacturer and win more overseas customers.
BYD plans to “launch a number of high-end luxury models” beginning this year as it aims to carve out a bigger slice of the premium car market, the firm said in a filing dated Sunday.
China’s biggest carmaker said it will continue to invest heavily in research and development as it “safeguards shareholder interests and boost investor confidence.” The company said it will also continue to expand overseas and is set to start production in Thailand, Brazil and Hungary.
Zhihu appoints new finance chief
Online Q&A platform Zhihu Inc. announced Monday that Sha Dachuan has stepped down as executive director and chief financial officer (CFO), taking on the role of chief investment officer. Company newcomer Wang Han has taken over as CFO. Wang joined Zhihu this month, previously serving at Access Technology Ventures from 2020 to 2023. He has also held positions at Hillhouse Capital and Legend Capital.