Samsung Electronics is reportedly carrying out layoffs in Southeast Asia, Australia, and New Zealand, which could impact less than 10% of its workforce in those regions, according to sources cited by Bloomberg. The scale of layoffs may vary across subsidiaries. The sources also indicated that job cuts are planned for other overseas subsidiaries, with the reduction possibly reaching up to 10% in some markets.

Samsung employs about 147,000 staff internationally, representing more than half of its total workforce of over 267,800, according to its latest sustainability report. Bloomberg noted that Samsung has no plans for layoffs in its home market of South Korea.

In the same report, another source cited by Bloomberg mentioned that employees in Singapore were called into private meetings on Tuesday with HR and managers to be informed about the retrenchment and severance packages.

A Samsung spokesperson told Bloomberg that some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency, and the company has not set any specific targets for particular roles.

Bloomberg also highlighted that Samsung has historically adjusted its workforce in response to the cyclical nature of the memory chip market. Recently, the company cut about 10% of jobs in India and parts of Latin America.

In this latest round, Samsung is expected to reduce less than 10% of its overseas staff of 147,000, focusing cuts on management and support roles while aiming to preserve manufacturing jobs. The actual numbers will depend on local labor laws and financial considerations.

(Photo credit: Samsung)

The global AI wave is sweeping across the world, and China’s large-scale AI model companies are flourishing. Although Chinese AI enterprises started later compared to international giants like NVIDIA and Intel, they are making continuous breakthroughs as they grow. Companies like Infinigence AI and lisuantech have developed rapidly, while others such as VastaiTech, Birentech, Zhipuai, Moore Threads, and Enflame have secured investments from several state-backed funds.

China Internet Investment Fund Invests in Domestic GPU Maker VastaiTech

Recently, VastaiTech (Shanghai) Co., Ltd. underwent a corporate restructuring, with new shareholders including the China Internet Investment Fund (Limited Partnership), Guoshou (Shenzhen) Technology Innovation Private Equity Fund (Limited Partnership) under China Life, and Qingdao Yidun New Industry Investment Fund (Limited Partnership). At the same time, VastaiTech’s registered capital increased from approximately RMB 470 million to around RMB 520 million.

VastaiTech is a high-end GPU chip provider, offering full-stack chip solutions for core AI computing power, graphics rendering, content generation, and AI-generated content (AIGC).

Birentech Prepares for IPO, Backed by China Ping An and China Merchants Capital

On September 12, Shanghai-based Birentech released its “Initial Public Offering and Listing Counseling Report,” signaling its intention to go public. Birentech has completed its Series B funding round, raising over RMB 5 billion. Investors include Zhuhai Da Heng Qin Group, Gree Ventures, China Ping An, New World Group, Country Garden Ventures, Qiming Venture Partners, IDG Capital, among others.

Birentech’s focus is on general-purpose GPU (GPGPU) computing systems. The company launched the BR100 GPGPU chip, built on a 7nm process, and introduced a proprietary heterogeneous GPU co-training solution, which allows Chinese GPUs to coexist with NVIDIA GPUs.

State Capital Invests Again as ZhipuAI Completes New Round of Multi-Billion-Yuan Financing

In early September, ZhipuAI, a large AI model company founded only five years ago, announced the completion of a new financing round, raising several billion yuan. The lead investor is Zhongguancun Science City, a platform established by the Haidian District Government of Beijing.

ZhipuAI has completed 11 rounds of financing and is currently the highest-valued AI large-model unicorn in China. Its investors include well-known institutions such as Hillhouse Capital, Qiming Venture Partners, and Junlian Capital, alongside internet giants like Meituan, Alibaba, Tencent, and Xiaomi.

Enflame Initiates IPO Counseling, Backed by National IC Fund Phase II

On August 23, 2024, Shanghai-based Enflame signed an IPO counseling agreement with China International Capital Corporation, formally launching its A-share IPO process.

Enflame specializes in AI training and inference products. The company has developed the Suisi series of chips, Yunsui training and inference acceleration cards, and Yunsui intelligent computing systems, providing computing power support to internet companies, cloud service providers, network operators, research institutions, and local intelligent computing centers.

Infinigence AI Raises Nearly RMB 500 Million in Series A Funding

On September 2, Infinigence AI announced it had raised nearly RMB 500 million in its Series A funding round, marking the largest single financing record for a startup in China’s AI infrastructure sector. The round was co-led by the Social Security Fund’s Zhongguancun Innovation Fund, Qiming Venture Partners, and Hongtai Fund, with additional participation from Lenovo Ventures, Xiaomi, and other strategic investors.

According to public information, Infinigence AI, founded just 16 months ago, has raised nearly RMB 1 billion in total. Past investors include Sequoia China, Baidu, ZhipuAI, and Tongge Ventures.

Lisuantech Secures RMB 200 Million Investment from Dongxin Semiconductor

On August 19, Dongxin Semiconductor announced an external investment, stating it would use RMB 200 million of its own funds to increase its stake in Shanghai-based GPU company Lisuantech by subscribing to RMB 5 million in additional registered capital. After this capital injection, Dongxin Semiconductor will hold about 37.88% of Lisuantech’s equity.

Lisuantech is dedicated to developing scalable chip designs for multi-layer graphics rendering, meeting the chip and computing power needs in various scenarios such as digital content creation, gaming, animation, film production, AR/VR, digital twin cities and factories, cloud desktops, intelligent cockpits, AI, and large models.

Moore Threads Expands to Wuxi, Attracting Market Attention

Over the past two months, Moore Threads has drawn significant attention for two reasons. First, in September, the company announced plans to “focus on Wuxi strategically” and to establish a manufacturing headquarters for AI SoC chips and intelligent terminal manufacturing, as well as a headquarters for intelligent computing cluster business in Wuxi’s Huishan District.

In terms of financing, Moore Threads has already secured investments from government funds, leading venture capital firms, and capital across the industry chain, including Guosheng Capital, China Mobile, Shenzhen Capital Group, Sequoia China, Five Source Capital, GGV Capital, ByteDance, and Tencent.

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• [News] China’s Core AI Industry Achieved a Market Size of Nearly CNY 600 Billion

(Photo credit: Birentech)

The U.S. was recently hit by Hurricane Helen, causing severe damage in the Southeast. In North Carolina, roads to two critical quartz mines are currently inaccessible, raising concerns about the global semiconductor supply chain. National Public Radio (NPR) reports that if these mines are compromised, it could disrupt chip supply chain worldwide.

Hurricane Helen, which made landfall last week, has claimed over 100 lives across the U.S. Spruce Pine, North Carolina—a key source of high-purity quartz essential for semiconductor manufacturing—suffered heavy damage. The town hosts two vital quartz mines operated by Sibelco and Quartz Corp, which are considered critical to the global supply chain.

It is reported that local officials described the flooding as catastrophic, with much of the area’s infrastructure destroyed or severely damaged. Though the mines themselves are intact, the heavily damaged CSX rail line, the main transportation route for quartz out of the region, has further complicated logistics, according to NPR.

The ultra-pure quartz from these mines is irreplaceable, as it’s a critical material for producing silicon wafers used in semiconductors. This type of quartz is used to make crucibles, where nearly pure silicon is melted. Experts highlight that North Carolina’s quartz mines are the primary large-scale source of this high-purity material.

While Russia and Brazil also supply quartz, Spruce Pine produces the highest quality and quantity globally, according to Ed Conway, author of Material World: The Six Raw Materials That Shape Modern Civilization, as cited by NPR. Without this pure quartz, most semiconductor production would be impossible, as crucibles often cannot be reused.

Though chipmakers likely have stockpiles of quartz to mitigate short-term supply disruptions, restoring infrastructure in the area could take weeks, even though the mines are located on higher ground.

Quartz Corp is currently assessing the situation but said it’s too early to gauge the full impact of the hurricane on production according to the report.

Sibelco noted in its latest statement, “We have confirmed the safety of most employees and are working diligently to contact those still unreachable due to ongoing power outages and communication challenges. As of September 26th, we have temporarily halted operations at the Spruce Pine facilities in response to these challenges.”

Experts warn that while companies have been exploring artificial substitutes for ultra-pure quartz, none have yet met global demand. The consequences of this disaster could ripple across industries, highlighting the broader economic risks posed by climate-related events.

(Photo credit: Sibelco)

Chinese tech giant Huawei has appointed a new Rotating CEO for the company. After Eric Xu ended his tenure on September 30^th, Sabrina Meng assumes the position of Rotating and Acting Chair of Huawei from October 1, 2024 to March 31, 2025, according to the company’s press release.

During her term, Meng will serve in the company’s top leadership position and head the Board of Directors and its Executive Committee, the press release states.

It is worth noting that Meng is the daughter of Huawei founder Ren Zhengfei, who is also the company’s director. According to a report by the Economic Daily News, Meng served as Huawei’s rotating chairperson for the first time on April 19, 2023, and this marks her second term in this role.

Economic Daily News notes that the rotating chairperson system is Huawei’s unique management model. According to the report, Huawei implemented the rotating COO (Chief Operating Officer) system in 2004, which later evolved into the rotating chairperson system in 2018.

Currently, Huawei has three rotating chairpersons: Eric Xu, Ken Hu and Sabrina Meng, with rotations occurring every six months, Economic Daily News notes.

Citing remarks from analysts, the report suggests that the rotating system allows the company’s leadership to examine its strategy and operations from different perspectives, which may help to avoid biases and rigidity in personal decision-making. However, some argue that the system may lead to ambiguity in accountability, as the six-month term may be too short to implement a strategy from beginning to end.

According to the information shown on Huawei’s website, Sabrina Meng joined Huawei in 1993 and has held positions including Director of the International Accounting Dept, CFO of Huawei Hong Kong, and President of the Accounting Mgmt Dept. She now serves as Deputy Chairwoman of the Board, and Rotating Chairwoman and CFO of Huawei.

Meng was arrested and detained in Canada in 2018, reportedly at the request of the U.S. for alleged bank fraud. After three years of detention, she returned to China in September, 2021, after reaching a deal with U.S. prosecutors to resolve the case, easing the tension between the two global superpowers, according to a report by Reuters.

Huawei has been making strides in the development of AI chips in recent years. To rival U.S. AI giant NVIDIA, the tech conglomerate is said to initiate sampling of its latest AI accelerator, Ascend 910C, to large Chinese server companies and internet firms. Ascend 910B, which the company claims to rival NVIDIA’s A100, has been popular among multiple industries across the country for AI model training.

Read more

• [News] Huawei Reportedly Begins Sampling of Ascend 910C to Rival NVIDIA
• [News] China Reportedly Advises Local Companies to Avoid NVIDIA’s H20, Benefiting Huawei and Cambricon

(Photo credit: Huawei)

Will the secret of the world’s top foundry finally be revealed? The second volume of the autobiography of Morris Chang, TSMC founder, is scheduled to be published on November 29^th, according to the reports by Taiwanese media outlets CNA and Liberty Times.

The second volume of the book, written in Chang’s own hand and is his only biography, is said to cover his career from 1964 to 2018, dating back to his life at Texas Instruments and all the way to his retirement from TSMC, CNA notes.

Giving the readers a heads up on its website, Commonwealth Publishing, the autobiography’s publisher, cites Chang’s quote on the saga – “When I founded a semiconductor company, there was only one path: to make it a world-class one.”

Chang is regarded as the “godfather” of Taiwan’s semiconductor industry. Founding TSMC at the age of 55, Chang has led the foundry giant for more than three decades, building it into a multibillion-dollar enterprise. With its expertise at the advanced nodes, TSMC can boast to have the world’s most prestigious clientele, as it manufactures chips for tech heavyweights Intel, Samsung, NVIDIA, and Qualcomm.

The first volume of the autobiography was published in 1998, spanning nearly 100K words and covering Chang’s early days from 1931 to 1964, while the second volume is said to span around 200K words, according to Liberty Times.

Citing Chang’s previous remarks, Liberty Times notes that the second part of the autobiography would focus on the “TSMC miracle”, as well as a brief introduction of his time at U.S. electronics manufacturer General Instrument and ITRI, one of Taiwan’s major technology research institutes which pioneers Taiwan’s IC development.

According to the information compiled by Stanford University, born in China, Chang moved to Hong Kong and then to the U.S., where he attended Harvard and MIT. His employer, Texas Instruments, sent him to Stanford for his PhD in electrical engineering, which he earned in 1964.

By 1983, he had advanced to the position of group vice president overseeing TI’s global semiconductor operations before departing to take the helm at General Instrument Corp in 1984.

According to CNA, Chang resigned in 1985 and was invited to Taiwan to serve as President of the Industrial Technology Research Institute (ITRI). In 1987, he founded TSMC. In 2005, Chang stepped down as CEO to focus on his role as Chairman, handing the position to Rick Tsai. However, in 2009, he returned as CEO while continuing as Chairman to lead TSMC in the new era.

In 2013, Morris Chang stepped down as TSMC CEO for the second time, handing over the leadership to Mark Liu and C.C. Wei. In 2018, he retired from TSMC, with Mark Liu becoming Chairman and C.C. Wei assuming the role of CEO.

Despite his retirement, TSMC’s performance has remained strong. In addition to the booming demand of 3nm and 5nm chips driven by AI, TSMC also accelerates its global expansion, including the U.S., Japan and Germany.

According to TSMC Chairman and CEO C.C. Wei’s projection in July, thanks to the strong demand from AI and smartphones for advanced nodes, 2024 will be a strong year for TSMC. The company expects this year’s revenue to increase by 24-26% (mid-20%), hitting a historical high.

(Photo credit: AIT)