During CES 2024, NVIDIA announced that four Chinese electric vehicle brands will adopt its autonomous driving chip platform. According to a report from IJIWEI, this move has showed NVIDIA’s potential intention to expand in China, despite facing stricter export controls from the U.S. Department of Commerce.

The four automakers include Li Auto, Great Wall Motor (GWM), ZEEKR, and Xiaomi, all set to utilize NVIDIA’s DRIVE technology solution to support autonomous driving capabilities.

The NVIDIA DRIVE platform encompasses automotive sensors, computing platforms, hardware and software for autonomous driving development, as well as DGX servers for artificial intelligence (AI) training.

NVIDIA has stated in the release that Li Auto selected the NVIDIA DRIVE Thor in-vehicle computer, featuring two DRIVE Orin processors with a computing power of 508 trillion operations per second (TOPS). This setup enables real-time fusion of information from various sensors, driving advanced driver-assistance systems (ADAS), and a comprehensive autonomous driving system for all scenarios.

Furthermore, GWM, ZEEKR, and Xiaomi have adopted the NVIDIA DRIVE Orin platform to power their intelligent autonomous driving systems.

GWM mentioned that its autonomously developed high-end intelligent driving system, Coffee Pilot, based on the DRIVE Orin platform, supports intelligent navigation and assisted driving functions across all scenarios without the need for high-precision maps.

Xiaomi’s first car, SU7, will be built on a dual DRIVE Orin configuration, with the assisted driving system incorporating Xiaomi’s in-house large-language perception and decision-making model, adaptable to various roads nationwide.

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• [News] NVIDIA Expands Autonomous Driving Team in China, Actively Recruiting Talent

(Photo credit: NVIDIA)

In June 2023, Apple introduced its inaugural spatial computing device, the Apple Vision Pro, entering the mixed reality (MR) landscape. On January 8th, 2024, Apple revealed on its official website that the Vision Pro would be available for pre-orders in the United States starting January 19th, with an official release date of February 2nd.

According to Apple’s official news release, Apple’s CEO Tim Cook has indicated as follows: “The era of spatial computing has arrived. Apple Vision Pro is the most advanced consumer electronics device ever created. Its revolutionary and magical user interface will redefine how we connect, create, and explore.”

In June 2023, at the WWDC (Worldwide Developers Conference), Apple unveiled its head-worn device, the Vision Pro, priced at USD 3,499. This cost is over three times the price of Meta’s high-end virtual reality (VR) model, the Quest Pro, at that time.

To bolster the ecosystem behind Vision Pro in the realm of mixed reality, Apple has made comprehensive preparations. In June of last year, the company announced the launch of new software tools and technologies, enabling developers to craft app experiences tailored for Vision Pro. Additionally, Apple established developer labs in California, London, Munich, Shanghai, Singapore, and Tokyo.

Considering factors such as pricing and the absence of certain essential features, TrendForce has previously anticipated a modest shipment volume of approximately 200,000 – 400,000 units for Apple Vision Pro in 2024.

The market’s response will heavily depend on the subsequent introduction of consumer-oriented Apple Vision models and the ability of Apple to offer enticing everyday AR functionalities that will drive the rapid growth of the AR market as a whole.

TrendForce also noted that the Apple Vision Pro boasts cutting-edge hardware specifications and innovative design. However, a substantial price tag of USD 3,499 and the requirement for an external power source to operate for a mere two hours pose challenges to consumer adoption.

Currently, the Apple Vision Pro lacks sufficient applications for mainstream users, making it more attractive to developers and enterprise customers who can capitalize on its innovative features to create diverse applications. Consequently, the higher price point of the product is justified.

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• [News] Apple Reportedly Accelerates Production of MR Headset “Vision Pro” for Potential February Launch
• [News] Apple Could Introduce Micro LED into Vision Pro, Replacing Existing Micro OLED Technology

(Photo credit: Apple)

ASML, a key chipmaking equipment supplier, is reported to have its incoming CEO, Christophe Fouquet, visiting Taiwan soon. According to Commercial Times citing from supply chain sources, it’s suggested that he will meet with TSMC and other related suppliers to discuss next-generation EUV equipment.

In 2008, Christophe Fouquet joined ASML, holding various management positions. He currently serves as Executive Vice President and Chief Business Officer. In April, he will succeed CEO Peter Wennink, who has held the position since July 2013, upon Wennink’s retirement at the completion of his term.

The high-level visit from ASML’s management to TSMC raises questions about whether it pertains to potential orders for the new “High-NA EUV” (High Numerical Aperture Extreme Ultraviolet Lithography System). TSMC has yet to confirm this, but the company is exploring various possibilities, including investments in advanced packaging.

Industry sources indicate that the cost of High-NA EUV exceeds USD 300 million. Considering the cost-effectiveness balance, TSMC is not in a hurry to adopt it. The primary reason is the imminent need to establish a plant in the United States. It is estimated that future capital expenditures will significantly lean towards expanding production facilities overseas.

Under the U.S. chip export restrictions, ASML halted the shipment of EUV equipment to China in 2019. Under continued pressure from the U.S., the company recently canceled some shipments of Deep Ultraviolet Lithography equipment (DUV) to China.

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• [News] Intel Secures First High-NA EUV Equipment, Threatening TSMC’s Position?
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(Photo credit: ASML)

TSMC’s foundry in Kumamoto, Japan, has been completed. Currently, the tool-in is underway, with a grand opening ceremony scheduled for February 24^th, 2024.

Following this, trial production will commence, with mass production expected by the year-end. The Taiwanese semiconductor supply chain is optimistic about TSMC’s continued investment in local facilities, with plans for establishing service points in Japan.

According to reports from Japanese news source Kyodo News, TSMC’s Kumamoto plant is operated by its Japanese subsidiary, Jasm. Construction commenced in April 2022, with a 24-hour rush to completion. The office building facilities were inaugurated in August 2023, and the four-story, two-basement fab was also completed by the end of last year. The cleanroom’s total area, where production takes place, is approximately 45,000 square meters.

After the grand opening ceremony of TSMC’s Kumamoto plant, trial production will begin, with mass production scheduled by the end of this year. The plant aims to produce 22/28nm and 12/16nm process chips, targeting a monthly capacity of 55,000 wafers. Joint venture partners at the facility include Sony’s subsidiary Sony Semiconductor Solutions and Denso.

According to Japanese media Nikkei Asia, TSMC is currently assessing the construction of a second plant in Kumamoto. The estimated total investment for this new facility is around JPY 2 trillion, and the Japanese Ministry of Economy, Trade, and Industry is considering a subsidy of approximately JPY 900 billion, surpassing the amount for the first plant. TSMC plans to utilize the Kumamoto Fab 2 for the production of 6nm chips. There is potential for further investment in a third plant in the future.

As per a report from Liberty Times Net, with optimism for TSMC’s opportunities in Japan, Taiwan’s semiconductor supply chain is establishing service points in the country.

Cleanroom and MEP (Mechanical, Electrical, Plumbing) integration engineering service provider, Marketech International Corp., has set up a subsidiary in Japan to cater to major clients. Topco Scientific Co. has established SHUNKAWA CO., LTD. in Japan and a branch in Kumamoto to offer specialized chemical warehouse services to major clients.

Analytical testing facility, MA-tek, established a lab in Nagoya over four years ago and expanded with a second lab in Kumamoto last September due to increased demand. Following suit, MSSCORPS Co. plans to establish a testing and analytical center in Tokyo, Japan.

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• [News] TSMC’s Kumamoto Plant Production Capacity Set for Significant Leap, Gradually Increasing to 55,000 Wafers per Month
• [News] Rumored to Build Third Plant in Kumamoto, TSMC: Currently Focusing on Assessing the Construction of a Second Plant

(Photo credit: TSMC)

In late December 2023, Apple faced sales suspension of certain Apple Watch models in the United States due to concerns over patent infringement with Masimo’s blood oxygen detection technology.

Despite Apple’s appeal for reinstatement, regulatory authorities will review updated designs presented in mid-January 2024 to determine whether sales suspension persists. The potential financial and time costs associated with settlement or redesign may prompt Apple to reassess the necessity of incorporating blood oxygen detection.

TrendForce’s insight:       

Apple and Masimo’s Prolonged Legal Battle Set to Conclude in Mid-January 2024, Verdict on Blood Oxygen Monitoring Patent Infringement

Since the introduction of the S6 in 2020, Apple Watch has featured blood oxygen monitoring technology, addressing the demand for detecting hidden hypoxia and hypoxemia, particularly in the context of the COVID-19 pandemic. Many smartwatches released during the same period also incorporated this functionality.

The blood oxygen monitoring technology in Apple Watch utilizes traditional pulse oximetry. The built-in sensor consists of red, green, infrared LEDs, and a photodiode sensors that converts light into electric current.

In essence, the technology relies on shining light onto wrist blood vessels to capture data on the difference between oxygenated and deoxygenated blood. Algorithms are then employed to determine the blood oxygen content.

Hence, this technology involves not only software-related analytical applications but also hardware configurations and usage considerations.

In fact, the infringement dispute between Apple and Masimo has been ongoing. Since 2020, Masimo has accused Apple of patent infringement. The legal battle continued until October 2023 when the U.S. International Trade Commission (ITC) ruled in favor of Masimo, determining that Apple had indeed infringed. Consequently, in late 2023, a sales ban was imposed on certain models of Apple watches.

Despite Apple’s appeal allowing them to resume sales, regulatory authorities will reassess Apple’s redesigned models in mid-January 2024 to determine if improvements have been made.

Currently, the most severe impact of the ban is on models with blood oxygen functionality from the S6 onwards, including the S8, while only the SE series, without this feature, remains unaffected.

Diminished Need for Blood Oxygen Monitoring in Temporal Context – Apple May Reconsider Necessity

Given the current situation, there are several possible developments. Firstly, Apple may reapply for approval of a redesigned model by regulatory authorities, allowing them to resume sales after making necessary adjustments.

However, this approach involves not only software modifications but also hardware changes, encompassing testing, review processes, and relaunching, which could take several months. Considering Apple’s usual product release schedule in September each year, the company faces significant time pressure.

Secondly, Apple may opt for a settlement with Masimo. In the past, Apple has resolved disputes over chip technology and intentional slowdown of older devices with Qualcomm and in collective lawsuits with users.

However, settlement amounts were substantial, approximately $4.5 billion with Qualcomm and potentially up to $500 million in the case of collective user lawsuits. Compared to Apple Watch’s annual revenue in 2023, which may not have reached $20 billion, such outcomes may be less favorable for Apple.

If Apple cannot bypass Masimo’s patent through updates, settlement and payment of ongoing patent fees may become a necessary consideration. However, this to some extent may prompt Apple to reevaluate the necessity of the blood oxygen monitoring feature.

After all, for smartwatches equipped with blood oxygen monitoring is intended for health, not medical purposes. Besides Withings’ products, most smartwatches with this feature have not obtained approval from the U.S. Food and Drug Administration (FDA). In other words, they cannot be used for medical purposes.

While having more features at the same price would enhance the product value for consumers, the current context of the post-pandemic era and Apple’s user loyalty suggest that the demand for additional functionalities may vary.

If Apple does not intend to further integrate blood oxygen data with other physiological data, there might be room to reconsider the necessity of redeveloping the technology and the continued existence of the blood oxygen monitoring feature in future Apple Watches. The value of incorporating such functionality may be subject to greater flexibility in this scenario.

Read more

• [News] Apple Reportedly Accelerates Production of MR Headset “Vision Pro” for Potential February Launch
• [News] Apple Could Introduce Micro LED into Vision Pro, Replacing Existing Micro OLED Technology

(Photo credit: Apple)