According to reports from Chinese media My Drivers and Gizchina, Qualcomm is said to have confirmed that Huawei will no longer require their processors.

Amidst escalating tensions between the United States and China due to trade and technology restrictions, Qualcomm’s CFO reportedly confirmed that Huawei will not be procuring 4G chips from Qualcomm in the future, highlighting a significant shift in the global technological landscape.

The same reports mentioned that the U.S. has tightened export restrictions on Huawei, revoking licenses for semiconductor sales from both Qualcomm and Intel. However, the impact on Huawei in terms of smartphone processors is said to be limited.

Qualcomm once stated on May 7, 2024 that the U.S. Department of Commerce notified the semiconductor company of the revocation of the its license to export 4G and certain other integrated circuit products, including Wi-Fi products, to Huawei and its affiliates and subsidiaries, which would be effective immediately.

Huawei has been working on developing its own chipsets, particularly the Kirin series, which have been used in its flagship smartphones, in order to tackle with the ongoing trade tensions and restrictions imposed by the United States on Huawei’s access to advanced technology and components. Its latest smartphone Pura 70, launched in early May, is powered by the Kirin 9010 processor.

Read more

• [News] U.S. Imposes Further Sanctions, Revoking Intel and Qualcomm’s License to Supply Chips to Huawei
• [News] US Considers Sanctioning Huawei-Linked Chinese Chip Network, Huawei-Related Enterprises Blacklisted

(Photo credit: iStock)

The latest punitive tariffs imposed on Chinese-made electric vehicles (EVs) by the Biden administration are likely to discourage BYD, Leapmotor, and other local manufacturers from their global expansion plans, though the US is not their key target yet, according to a report by the South China Morning Post, citing Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service.

Citing Stephen Dyer, Greater China co-leader and head of the Asia automotive practice at global consultancy AlixPartners, the report stated that Chinese automakers are expected to go to Europe first, among other established and mature markets, as they monitor the evolving political landscape in the US.

President Biden announced new tariffs on Tuesday, targeting Chinese electric vehicles, semiconductors, batteries, solar cells, steel, and aluminum. The tariffs on Chinese EVs will increase to 100%, quadrupling the current rate of 25%, which takes effect in 2024.

As a result, some Chinese EV makers are expected to become more cautious about expanding overseas. In the meantime, these manufacturers are also preparing for potential challenges in Europe, where the European Commission began investigating Beijing’s subsidies for carmakers last year, according to South China Morning Post.

In October, 2023, the European Commission, responsible for trade policy in the 27-nation European Union, initiated an investigation to determine if fully electric cars manufactured in China were benefiting from distortive subsidies and thus merited additional tariffs.

The deadline for implementing provisional measures like tariffs or quotas is July 4, nine months after the Commission initiated its investigation, according to EU regulations.

In January, TrendForce has projected that the global sales volume of NEVs (including BEVs, PHEVs, and FCVs) is estimated to reach approximately 12.8 million units in 2023. Regional market sales shares are expected to be 60% in China, 22% in Western Europe, 11% in the United States, and 6% in other regions, with China’s market demand distinctly in the lead.

However, with China’s subsidies gradually phasing out and the increasing market penetration of NEVs in the country, the growth rate of China’s NEV market is starting to slow. This, coupled with the growing demand for electric vehicles in overseas markets, is prompting numerous Chinese automotive brands to expand internationally, particularly in Southeast Asia, where they are projected to hold a 67.5% market share in 2023.

(Photo credit: BYD)

According to sources cited by a report from Economic Daily News, TSMC’s A16 advanced process node might not necessarily require ASML’s latest advanced chip manufacturing equipment, the High Numerical Aperture Extreme Ultraviolet Lithography (High-NA EUV), due to its expensive price.

Per a report from Bloomberg, during a technical symposium in Amsterdam on May 14th, TSMC’s Senior Vice President of Business Development and Co-Chief Operating Officer, Dr. Kevin Zhang, remarked that while he appreciates the capabilities of High-NA EUV, he finds its price tag to be unlikeable.

As per the same report from Bloomberg, ASML’s new machine is capable of imprinting semiconductors with lines measuring just 8 nanometers in thickness — 1.7 times smaller than the previous generation.

In terms of pricing, this EUV machine is reportedly priced at EUR 350 million (roughly USD 380 million), with a weight equivalent to two Airbus A320 passenger planes, according to Bloomberg.

Dr. Kevin Zhang stated that TSMC’s planned A16 node (scheduled for volume production slightly later in 2026) may not necessarily require the use of ASML’s High NA EUV equipment. Instead, TSMC could continue to rely on its existing, older EUV equipment. “I think at this point, our existing EUV capability should be able to support that,” he expressed.

He further mentioned that the decision to adopt the new ASML technology would depend on where it offers the most economic benefits and the technical balance they can achieve. He declined to disclose when TSMC might purchase High-NA EUV from ASML.

On the other hand, Intel has confirmed in mid-April that it has received and assembled the industry’s first High-NA EUV lithography system, which is expected to be able to print features up to 1.7x smaller than existing EUV tools. This will enable 2D feature scaling, resulting in up to 2.9x more density.

Currently, both TSMC and Samsung utilize EUV equipment for manufacturing, covering TSMC’s 7nm, 5nm, and 3nm processes and Samsung’s EUV Line (7nm, 5nm, and 4nm) located in Hwaseong, Korea, along with the 3nm GAA process.

Read more

• [News] Intel Secures First Batch of High-NA EUV Equipment from ASML, Ahead of Samsung and SK Hynix
• [News] EUV as a Strategic Asset in the Most Advanced Processes: Progress in Intel/TSMC/Samsung’s Adoptions

(Photo credit: ASML)

In 2023, startups globally experienced a depressing restructuring period, marked by the downfall of numerous unicorns. Now, as we move into 2024, investors and entrepreneurs within the startup community are shifting their focus to artificial intelligence (AI), recognizing it as the most exciting and promising technology.

The startup landscape last year could be likened to a “pandemic” of sorts, devastating numerous unicorns. According to the available data, the total funding of startups that ceased operations in 2023 surpassed USD 41 billion, a sum equivalent to the combined total of startup funding from 2019 to 2022. Noteworthy and high-valued startups that closed down in 2023 include Olive, a medical insurance startup valued at USD 4 billion; Convoy, a smart truck fleet developer valued at USD 3.8 billion; and Zume, a textile company focused on reducing plastic waste, valued at USD 2.3 billion.

Additionally, over 20 unicorns, including Notion, AirTable, and Grammarly that are well-known in Taiwan, have not launched a new fundraising round for two consecutive years. Amid this downturn, AI, particularly generative AI technologies and enterprises, has emerged as the brightest beacon in the gloomy global startup environment.

According to CB Insights, since the second quarter of 2023, startups incorporating AI-related technologies have seen at least a 20% increase in funding. For more advanced startups that have progressed to Series B funding and beyond, those focusing on AI have received a remarkable 59% increase in investment. A report from Startup Genome highlights that AI and big data were the most sought-after sectors by investors in 2023, comprising 28% of the total global startup investment for that year. Interestingly, at the 2023 Consumer Electronics Show in the United States, the largest share of participants from Taiwan (28%) was involved in AI and robotics. Furthermore, digital healthcare and smart cities/environmental sustainability, fields closely intertwined with AI, accounted for 20% and 18%, respectively, of the Taiwan-based participants.

The recent developments underscore a clear trend: AI has become a core technology across industries. Microsoft has not just invested a substantial USD 10 billion in OpenAI but is also comprehensively integrating AI into its products, workforce, and data management strategies to establish an early lead in this domain. Amazon and Google are closely following suit, each launching a series of AI application services. What has particularly stunned the industry is Apple’s recent decision to discontinue its electric vehicle project, which was a decade in the making. Instead, Apple is shifting its strategic focus, reallocating resources to accelerate the development of generative AI projects.

In summary, AI is undeniably the most significant trend within the startup ecosystem in 2024. While tech giants utilize their extensive resources to advance AI technologies, startups are concentrating on practical applications of AI in various fields. According to TrendForce analysts, three areas particularly warrant attention in 2024: cybersecurity, smart healthcare, and retail services.

Rapid Advances in AI Represent a Double-Edged Sword for Cybersecurity

On the frontline of cybersecurity, AI has emerged as a formidable tool for both attack and defense. Hackers use AI to simplify their attacks, whereas cybersecurity professionals use AI to identify vulnerabilities. Nevertheless, the reality of the cybersecurity sector is complex. The unpredictability of attacks, combined with the often passive approach of many companies towards data protection, means that the primary advantage of AI lies in its ability to mitigate rather than prevent incidents. TrendForce analyst P. K. Tseng notes that IT staff can employ AI tools to swiftly analyze attack vectors following a cybersecurity incident, thereby enabling them to promptly patch vulnerabilities and lower the risk of subsequent attacks.

Furthermore, owing to the shortage of cybersecurity talent, many IT personnel are also tasked with cybersecurity responsibilities. With the advent of generative AI, leading tech firms like Cisco and Palo Alto Network have started leveraging these technologies to streamline operations. As a result, IT staff in these companies can now execute previously complex and unfamiliar cybersecurity tasks through conversations in natural language.

Despite these advancements, deploying comprehensive and effective cybersecurity measures remains a costly endeavor for many small and medium-sized enterprises and end-users, often with benefits that are not immediately apparent.

To bolster data protection efforts, numerous manufacturers are now focusing on enhancing security measures at the upstream of their supply chains. For instance, Taiwan’s crucial semiconductor industry has seen the emergence of innovative startups like Jmem Tek. This company has revolutionized chip programming by incorporating fuse and anti-fuse technologies to transition from traditional single-bit to multi-bit methods. The innovative approach scrambles bit arrangements, thwarting hackers’ attempts at reverse engineering. Solutions like ones offered by Jmem Tek find applications in various fields, including IoT, automotive electronics, and electronic hardware protection.

Leading chip manufacturers such as Infineon, ARM, and NXP are increasingly adopting hardware protection strategies at the upstream, significantly contributing to the rapid growth of the cybersecurity market.

As cyber-attacks and data breaches become increasingly common, cybersecurity startups are facing significant growth opportunities.

Global Information estimates that the IoT security market alone will reach USD 6.6 billion by 2024, with projections suggesting it could grow to USD 28.01 billion by 2029, at a CAGR of 33.53% between the two years.

IDC predicts that by 2026, 30% of large enterprises worldwide will improve the efficiency their cybersecurity incident remediation, management, and response by investing in autonomous security solutions. Analysts, however, warn that cybersecurity is a highly sensitive area. Typically, businesses prefer to work with established cybersecurity firms rather than startups, and this poses a considerable entry barrier for new players. Hence, this scenario represents both a potential risk and an opportunity in the market.

As Foreign Healthcare Giants Pioneers the Use of AI in Precision Medicine, Taiwan-based Startups Follow Closely

Healthcare and pharmaceuticals rank among the industries with the highest investment in smart technology, particularly in drug research and development. Over the last decade, two-thirds of the drugs approved by the U.S. Food and Drug Administration have been small-molecule drugs. The development of these drugs has increasingly relied on AI technologies. Leading companies in this space include Recursion, Benevolent, and notably, Insilico Medicine.

In 2023, ISM5411, the world’s first cancer drug developed entirely through AI, advanced to Phase II clinical trials. This breakthrough serves as a remarkable milestone, showcasing the remarkable speed at which AI can innovate and produce new, lifesaving medications.

While the aforementioned drug startups may not be widely recognized, their influence within the pharmaceutical industry is profound. Insilico Medicine’s principal investor is Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson. Recursion’s principal investor is Leaps by Bayer, a subsidiary of Bayer.

Moreover, Roche Pharmaceuticals has partnered with several AI drug startups to accurately identify potential participants for drug trials, thus speeding up the development process.

“Smart healthcare,” seemingly lifted from a sci-fi movie, is gradually becoming a reality, thanks in part to AI. This is particularly evident with the development of the brain-computer interface technology, which involves implanting minuscule processors in the brains of patients with limb paralysis. This enables them to control digital devices, such as smartphones and computer mice, using their thoughts. Currently, two startups have initiated human trials for this technology: Neuralink led by Elon Musk and Synchron, the latter of which has received investments from Jeff Bezos and Bill Gates.

TrendForce forecasts that the global smart healthcare market is expected to surpass USD 360 billion by 2025. In Taiwan, the revenue from digital healthcare products and services reached TWD 50 billion in 2022. With advancements in AI, Taiwan-based startups related to smart healthcare have come under the spotlight, with 14% of local entrepreneurs venturing into this field.

Tailored for Individual Consumers: Smart Retail Unleashes Huge Business Opportunities

AI has long been anticipated to revolutionize the retail industry, yet its adoption has encountered setbacks, particularly with growing concerns over privacy. Furthermore, the once highly popular unmanned stores have seen their growth stall due to a range of factors. However, the emergence of generative AI holds the potential to usher in significant new changes.

“Retail technology is advancing towards greater customization, akin to a personal shopping consultant for each consumer,” stated TrendForce analyst Tseng. For example, the latest shopping service introduced by global retail giant Walmart leverages generative AI. Customers only need to make a general request, and Walmart’s AI system generates a comprehensive shopping list, giving them the freedom to choose which items to buy.

Today, when people shop online, they are accustomed to searching for the desired products, but this process still takes a lot of time, and it is easy to get distracted and browse for other items. However, with an AI-powered virtual shopping assistant, if someone wants to organize a barbecue for his family, the assistant will compile all the necessary items automatically.

Walmart’s AI shopping service is provided by Microsoft, with the underlying technology coming from OpenAI. Meanwhile, Google is set to integrate generative AI into its business-to-business (B2B) services. The e-commerce behemoth Amazon has also started testing a shopping assistant named Rufus AI, positioning itself to once again transform the retail landscape.

Beyond major corporations, Taiwan is fostering startups that use AI to expand smart retail across diverse markets. Carmi Technology, a local startup, targets health supplements, which are in high demand in the domestic market. The company introduced a one-stop customization service, enabling customers to tailor health supplements to their specific needs and avoid the clutter of numerous bottles and jars. This innovative approach positions Carmi Technology to capture more opportunities in this niche market.

AI Is Everywhere

Besides the rapid progress of startups in integrating AI in the aforementioned sectors, the presence of AI is ubiquitous in the startup scene of Taiwan and worldwide.

While this trend is very apparent this year, AI should not be regarded as the ultimate solution for everything. Taking the highly popular ChatGPT as an example, many users have started to notice a decline in the quality of responses. This issue could be due partly to users’ increased expectations, but it could also have to do with limited computational resources. In order to shorten response time and save on computing power, chatbot platforms might reduce the number of parameters in their machine learning systems.

The final and most important point is that regardless of the application markets where AI is adopted, the possibility of errors must be taken into consideration. Therefore, core decision-making ultimately needs to be handled by humans in order to prevent irreversible harm.

Join the AI grand event at Computex 2024, alongside CEOs from AMD, Intel, Qualcomm, and ARM. Discover more about this expo! https://bit.ly/44Gm0pK

(Photo credit: Micron)

Apple’s Vision Pro, which went on sale in the United States in February this year, is reportedly gearing up for sales outside the US to test the waters! China, Japan, South Korea, Germany, and France are among the nations expected to join this wave of availability.

According to reports from the CTEE and Bloomberg, Apple has flown retail employees from various countries to its headquarter in Cupertino, California for training. The training program, started last week, lasted four days and focused on teaching staff how to demonstrate Vision Pros to customers. Participants in the training came from Germany, France, Australia, Japan, South Korea, Singapore, and China.

Though Apple has not disclosed the actual debut date or the countries where the Vision Pro will be launched outside the US, in March, a report by MacRumors suggested that code within VisionOS might hint the potential sequence of international sales for the Vision Pro.

Apple has added 12 new languages to the Vision Pro’s virtual keyboard and auto-correction features, including English versions for five regions (Australia, Canada, Japan, Singapore, and the UK), French for two regions (France and Canada), German (Germany), as well as Japanese, Korean, Traditional Cantonese, and Simplified Chinese, which indicates that nine countries, including China, Japan, and Korea, may be among the first markets Vision Pro could potentially make its debut.

According to a January estimate by TrendForce, if initial sales are strong, Vision Pro shipments could reach between 500–600 thousand units in 2024. 

Apple’s Vision Pro features a Micro OLED display, currently exclusively supplied through a process that uses TSMC’s CMOS backplanes in combination with Sony’s deposition process.

(Photo credit: Apple)