On March 28th, Xiaomi officially launched the electric vehicle Xiaomi SU7, featuring three configurations: the standard version priced at CNY 215,900, the Pro version at CNY 245,900, and the Max version at CNY 299,900.

According to Xiaomi Automotive’s Weibo account, within less than 30 minutes of the launch, the SU7 secured 50,000 orders.

In March 2021, Xiaomi founder Lei Jun officially announced Xiaomi’s venture into the automotive industry. Nearly three years later, with the release of the Xiaomi SU7, its associated suppliers have emerged. These include global giants like Qualcomm, NVIDIA, and Bosch, alongside Chinese suppliers such as BYD, CATL, Yangjie Electronic Technology, TCL, and BOE.

Regarding chip supply, NVIDIA provides autonomous driving chips for Xiaomi cars. The Xiaomi SU7 is equipped with two NVIDIA DRIVE Orin chips, delivering a combined computing power of 508 TOPS.

In the smart cockpit, the SU7 utilizes Qualcomm’s Snapdragon 8295 chip, built on 5nm technology. Compared to the Snapdragon 8155, the Snapdragon 8295 offers double the GPU performance and triple the 3D rendering capability. It supports integrated features like electronic side mirrors, surround-view cameras, and passenger monitoring.

Additionally, powered by the Pangolin OS smart car system, SU7 features a central control eco-screen, a flip-up instrument screen, HUD, and two rear-seat expansion screens.

The Xiaomi SU7 features a front central eco-screen measuring 16.1 inches, reportedly a Mini LED display supplied solely by TCL CSOT, as per Cailianpress. In the driver’s position, the SU7 is equipped with a 7.1-inch flip-up LCD instrument panel supplied by BOE, showcasing essential driving information. The 56-inch HUD head-up display is provided by New Vision Automotive Electronics.

Moreover, the SU7 features Xiaomi’s self-developed Super 800V Silicon Carbide high-voltage platform, with a peak voltage of up to 871V. Notably, besides the SU7, several models like the Zeekr 007, AITO M9, NIO, and Xiaopeng X9 also incorporate 800V Silicon Carbide.

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(Photo credit: Xiaomi)

Despite the ongoing intensity of the US-China tech war, Apple has been gradually leaning towards a more diversified supply chain, especially in the production of its latest head-worn device, Vision Pro. As per a report from Commercial Times, upon examination, it is revealed that the major supplier in chip manufacturing for this device is Texas Instruments (TI).

However, other components, such as the NOR Flash memory, originate from Chinese manufacturer GigaDevice, with the assembling being shifted from Taiwan-based facilities, previously relied upon, to Luxshare Precision.

On February 7th, following an in-depth teardown of internal components by the repair website iFixit, it was discovered that within the Vision Pro main unit, speakers, and external power supply, there are not only Apple’s self-developed processor chips but also multiple Apple-designed power management chips. It’s noteworthy that TI serves as the primary chip supplier in the Vision Pro.

Yet, surprisingly, there are NOR Flash from the Chinese memory manufacturer GigaDevice. As the US-China tech war continues to escalate, Apple’s use of memory from a Chinese manufacturer raises concerns in the market about whether it may cross the red line set by the US government.

In fact, in recent years, Apple’s products such as the iPhone, MacBook, iPad, Apple Watch, and AirPods have leaned towards Chinese suppliers like Luxshare, Wingtech, BYD, and GoerTek in the assembling sector, while Taiwanese suppliers like Foxconn, Quanta, Pegatron, and Compal, which Apple used to heavily rely on, are gradually fading out of the supply chain.

The assembly for Vision Pro has also shifted from Pegatron to Luxshare. While Taiwanese suppliers are gradually reducing their reliance on Apple, they are simultaneously diversifying into emerging fields such as artificial intelligence, electric vehicles, and smart healthcare.

On the other hand, despite the strong sales of Vision Pro since its launch in the United States in mid-January, reports surfaced of a wave of returns within just two weeks. The most cited reasons by consumers include discomfort when wearing, eye fatigue, and unsatisfactory software experiences, prompting buyers to opt for returns within the 14-day return window.

Some early adopters also expressed that the current productivity and entertainment experiences offered by Vision Pro do not justify its high price point. Additionally, they find its interactive features insufficiently convenient for tasks such as programming, design, and presentation editing.

TrendForce has previously reported that one of the main issues impacting the Vision Pro is its hefty price tag. The $3499 price point, although seemingly steep, is expected to resonate with the market, especially given the promise of ample applications, a quality user experience, and Apple’s established brand loyalty.

Additionally, should Apple introduce a more budget-friendly version as speculated, the premium pricing of the Vision Pro could serve to accentuate the value proposition of the more economical model, potentially driving consumer interest towards it.

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(Photo credit: Apple)

Porsche’s Chief Financial Officer Lutz Meschke has stated in a media interview following the conclusion of the Macan EV unveiling on January 25, 2024, that Europe’s initial plan to ban the sale of new fuel cars by 2035 may be postponed, as reported by Bloomberg.

TrendForce’s Insights:

• Prolonging the Battle and Gradually Narrowing the Gap with Chinese Automakers through Trade Barriers

In March 2023, the European Union passed a ban on the sale of new petrol and diesel cars starting from 2035.

Due to opposition from Germany and Italy, after coordination, the European Union agreed not to ban models using synthetic fuels. Range anxiety of electric vehicles continue to affect the willingness of end consumers to purchase cars, becoming the biggest obstacle to the growth of electric vehicle sales.

Coupled with China’s electric vehicle market, which accounts for over 50% of global BEV sales, nurturing Chinese automakers led by BYD, who continuously lead in the technical level of the the battery system, the electric drive system, and the electronic control system compared to Europe, America, and Japan.

Not long ago, Tesla CEO Elon Musk stated that without trade barriers, Chinese automakers would destroy the vast majority of their competitors. Whether this statement is exaggerated or not, trade barriers currently serve as the most effective means for Europe and the United States to prevent the continued growth and expansion of Chinese automakers, as exemplified by the United States’ IRA legislation and the European Union’s anti-subsidy investigations.

Delaying the implementation of the ban on the sale of new fuel cars can synergize with trade barriers, allowing consumers to maintain distance from Chinese-made electric vehicles. This approach provides breathing space for European automakers and US and Japanese automakers in the fuel car market.

With the Dual Strategy of Western and Japanese Automakers, Taiwanese Manufacturers Need Greater Flexibility in Planning

Assuming the postponement of the ban on the sale of new fuel cars, automakers in Europe, the United States, and Japan may simultaneously pursue synthetic fuel technology based on traditional fuel car frameworks while continuing to develop electric vehicle technology.

However, this dual approach, which does not favor one technology over the other, is likely to affect the allocation of resources for electric vehicles. During the era of internal combustion engine vehicles, dominated by Western, Japanese automakers, and Tier 1 suppliers due to various constraints such as patents and technological barriers, it has been challenging for Taiwan to access system-level supply opportunities.

In the era of electric vehicles, Fukuta Elec & Mach Co.’s all-in-one electric drive and control system has entered Mazda’s range-extended electric vehicle supply chain, while Foxconn has launched an electric vehicle manufacturing platform to vie for opportunities in complete vehicle manufacturing from carmakers. Consequently, Taiwan is gradually moving from Tier 3 and Tier 2 to Tier 1.

If automakers in Europe, the United States, and Japan adopt a dual strategy, Taiwanese manufacturers’ opportunities in the electric vehicle field may face reduction or fiercer competition.

Apart from continuously strengthening relevant technologies in the electric vehicle domain, Taiwanese manufacturers also need to enhance the commonality and modularity of their product lines to adapt to the ever-changing industrial regulations under geopolitical shifts.

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(Photo credit: Pixabay)

Apple has delayed the production schedule for the Apple Car from 2026 to 2028, as reported by Bloomberg. The vehicle is expected to feature a Level 2+ advanced driver assistance system.

TrendForce’s Insights:

• Aim for Fully Autonomous Driving: Apple Car Once Planned to Remove the Steering Wheel

Apple has named its project for the Apple Car “Titan”. The initial concept envisioned a fully electric vehicle without a steering wheel, potentially achieving Autonomous Driving Level 5.

The delineation of autonomous driving levels places Level 3 as a watershed: vehicles below this level still require driver control (by eyes and hands), with the system providing assistance.

Vehicles at Level 3 and above gradually empower the system to assume greater control, gradually freeing the driver’s hands and eyes. Therefore, only vehicles beyond Level 3 can be considered truly autonomous vehicle.

• Downgrading the Autonomous Driving Level: Apple’s Compromise with Market Realities

Having accomplished numerous revolutionary innovations in the consumer electronics realm, it’s understandable that Apple aims to replicate its successful model in the automotive industry. High-level autonomous driving represents a battleground where Apple can leverage its strengths.

However, with the complexity of vehicle components and the stricter validation standards for automotive regulations compared to commercial ones, Apple, if it intends to venture into car manufacturing, still needs to align with the technological development levels of other components.

For instance, to eliminate the steering wheel configuration, mature wire-controlled steering technology is necessary. However, among all car manufacturers currently, only Tesla, Toyota, and Infinity have adopted this technology, resulting in a relatively small market size.

Related component suppliers also are still in the process of research and development or observing the market. Even if suitable suppliers are found, the adoption of such advanced technology may raise the cost of car manufacturing.

Additionally, the trust between humans and machines has yet to mature, and related regulations are still under development. Achieving full confidence from drivers to take their hands and eyes off the steering wheel, even under the Apple brand, is not an easily achievable goal.

• Prioritizing Safety and Stability in Vehicle Design: Apple’s Compromise is the Right Decision

Given the direct impact on driver safety and the long product lifecycle, the automotive industry, whether traditional or electric vehicles, prioritizes safety and stability in design principles. Even with innovative technologies, their priority is secondary to safety and stability.

Designing an electric vehicle without a steering wheel is undoubtedly enticing, however, given the need for further validation in technology, regulations, and human-machine trust, the production timeline for Apple Car may continue to be delayed.

Additionally, the automotive industry adheres closely to Maslow’s Hierarchy of Needs theory. At this stage, the primary concerns for car manufacturers are not the presence of steering wheels or the level of autonomous driving but rather range anxiety and high car prices. These concerns belong to the “lower-level” needs of the demand pyramid, affecting the basic survival conditions of manufacturers.

Only by prioritizing the satisfaction of these types of needs can manufacturers proceed to fulfill higher-level demands for advanced autonomous driving.

If Apple Car’s project adjustments are indeed true, it represents a compromise with reality. However, it allows Apple to quickly introduce products to capture market share. After all, only by successfully achieving the goal of production from nothing to something can Apple have the opportunity to create a truly Apple-dominated battlefield.

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U.S. Commerce Secretary Gina Raimondo stated on January 26th that the U.S. government will propose that American cloud computing companies determine whether foreign entities are accessing U.S. data centers to train artificial intelligence models.

The proposed “know your customer” regulation was made available for public inspection on January 26th and is scheduled for publication on January 29th.

According to a report from Reuters, Raimondo stated during her interview that, “We can’t have non-state actors or China or folks who we don’t want accessing our cloud to train their models.”

“We use export controls on chips,” she noted. “Those chips are in American cloud data centers so we also have to think about closing down that avenue for potential malicious activity.”

Raimondo further claimed that, the United States is “trying as hard as we can to deny China the compute power that they want to train their own (AI) models, but what good is that if they go around that to use our cloud to train their models?”

Since the U.S. government introduced chip export controls to China last year, NVIDIA initially designed downgraded AI chips A800 and H800 for Chinese companies. However, new regulations in October of 2023 by the U.S. Department of Commerce brought A800, H800, L40S, and other chips under control.

Raimondo stated that the Commerce Department would not permit NVIDIA to export its most advanced and powerful AI chips, which could facilitate China in developing cutting-edge models.

In addition to the limitations on NVIDIA’s AI chips, the U.S. government has also imposed further restrictions on specific equipment. For example, ASML, a leading provider of semiconductor advanced lithography equipment, announced on January 1st, 2024, that it was partially revoking export licenses for its DUV equipment in relation to the U.S. government.

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(Photo credit: iStock)