Recently, the information cited by Sina Technology indicates that during a recent internal event at Xiaomi, executives from Xiaomi’s automotive division disclosed that the team currently comprises 3700 members. Reportedly, their ambitious goal is to create a Dream Car that can compete with renowned brands like Porsche and Tesla.

According to sources, Xiaomi’s Automotive Vice President and Political Commissar of the Beijing headquarters, Yu Liguo, shared in a recent internal event at Xiaomi, saying, “Mr. Lei (Lei Jun, Xiaomi CEO) often tells us that only those who understand and love cars can make good cars. I believe that among the 3,000-plus people in the automotive department, we have indeed found a group of people who truly understand and love cars.”

Yu further stated that the Xiaomi Automotive Division, established nearly three years ago, currently consists of 3,700 individuals from diverse backgrounds, all sharing a common dream – to create a Dream Car that can rival Porsche and Tesla.

Reportedly, Yu also mentioned that in certain scenarios while driving, Xiaomi’s autonomous driving tests have achieved success, surpassing the current capabilities of Tesla. Although these conditions may not be typical for autonomous driving, they reflect the capabilities of autonomous driving.

On the other hand, Lei Jun further emphasized the importance of corporate culture in the internal event. He stated that Xiaomi has clarified its goals for the new decade this year – to become the leader in the new generation of global hardcore technology. If Xiaomi is to succeed in the next decade, it must have a team capable of fighting tough battles.

He gave an example that in recent years, Xiaomi has rapidly assembled large teams, whether in the chip department or the automotive department, reaching scales of two to three thousand people in a very short time.

To quickly unite everyone as one force, is not only on strategy and motivation but also on corporate culture, which may not be visible in ordinary times, and it is only when facing difficulties, dangers, or situations that require responsibility that it can fully manifest itself.

Previously, Lei Jun announced that Xiaomi would hold a technology launch event for its car on December 28. Lei Jun revealed that the development of Xiaomi’s first car involved a total of 3,400 engineers, with the entire R&D investment exceeding CNY 10 billion. It is noteworthy that he emphasized this event would focus on technology and not product launches.

Looking at his recent teasers on Weibo, the autonomous driving technology mentioned by Yu Liguo is expected to be featured in the technology release. Additionally, there is anticipation for the debut of Xiaomi’s self-developed operating system, HyperOS, in the automotive context.

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• [News] Lei Jun States Xiaomi’s First Car Involves 3,400 Engineers with R&D Investment Exceeding RMB 10 Billion

(Photo credit: China’s Ministry of Industry and Information Technology)

Semiconductor manufacturers, after more than a year of destocking, are experiencing a recovery from the bottom of the market, and recently, there have been signs of price increases. Market sources reveal that Analog Devices Inc. (ADI), a major analog IC manufacturer, has recently issued a price increase notice to its Chinese distributors. The notice indicates an estimated price increase of 10% to 20%, set to take effect in February of the coming year.

According to reports compiled by Liberty Times Net, ADI stated in the price increase letter that the company places a high value on the reliability of stable component production. Therefore, it will not arbitrarily stop the production of components within a controllable range. To maintain a guaranteed supply for customers, the company will increase prices for certain older product lines to offset the cost pressures of sustaining production. If customers object to the price increase, ADI is committed to providing the best possible component replacement solutions.

According to industry sources, ADI’s price increase reflects the company’s optimistic outlook on the recovery of industry demand. On one hand, by increasing the prices of older products, ADI is expected to encourage customers to transition to new products.

In terms of ADI’s operations, ADI CEO Vincent Roche has previously stated in the company’s 2023 Q4 Earnings Call that, “Weakness in the industrial sector broadened and hit all the various market segments with 1 exception, the aerospace and defense area.”

Last month’s financial report from ADI revealed that, influenced by the still-high semiconductor inventory, the company’s fourth-quarter revenue decreased by 16% to USD 2.7 billion.

Within this, only automotive revenue showed positive growth, increasing by 14% to USD 730 million year-on-year, representing 27% of the overall revenue. Industrial revenue, accounting for approximately 50%, is the largest source of revenue, but in the fourth quarter, it experienced a 20% year-on-year decline to USD 1.35 billion.

For the entire fiscal year of 2023, ADI’s revenue reached USD 12.3 billion, a 2% increase compared to the previous year. This growth is attributed to record-breaking performances in the industrial and automotive sectors. The company’s Gross Margin increased by 5% to USD 7.8 billion, with a Gross Margin Percentage of 64%. Operating Income significantly rose by 17% to $3.8 billion, and the Operating Margin reached 31.1%.

(Photo credit: ADI)

As competition in the semiconductor industry intensifies, countries worldwide are implementing industrial policies to attract domestic and foreign investments. Japan, in particular, has introduced substantial subsidies to entice industry players to invest and establish facilities.

According to the report from South Korean “Dong-a Ilbo,” compared to other nations, South Korea’s semiconductor industry lacks sufficient subsidies, and there are concerns that Japan may surpass South Korea within the next decade.

Given the high cost of advanced semiconductor facility equipment and relatively higher local labor and other costs in Japan compared to other Asian countries, semiconductor companies are making substantial investments, often in the trillions of yen, to set up facilities in Japan.

In an effort to attract foreign companies to establish facilities in Japan, the Japanese government not only promotes the capabilities of numerous domestic semiconductor upstream suppliers to meet supply chain demands but also provides subsidies to alleviate the burden on industry players, thereby enhancing the competitiveness of products manufactured in Japan.

Taking memory giant Micron as an example, reportedly, Micron’s DRAM plant being constructed in Hiroshima, Japan, has received a 39% subsidy from the Japanese government for the construction cost. This subsidy has enhanced its cost competitiveness by 5% to 7%.

With substantial assistance from the Japanese government, there is a potential for Micron to narrow the market share gap with Samsung Electronics and SK Hynix in the future.

In recent years, TSMC has also chosen to establish a plant in Kumamoto, Japan, under the active solicitation of the Japanese government. In June of the previous year, the Japanese Ministry of Economy, Trade, and Industry announced that TSMC, along with Sony and Denso, jointly investing in Kumamoto Fab 1, could receive a maximum subsidy of JPY 476 billion (approximately USD 3.34 billion), equivalent to half of the construction cost.

The head of the Japanese Semiconductor Strategic Promotion Council, Akira Amari, previously mentioned that the Japanese government would provide one-third of the construction cost as a subsidy for TSMC’s Kumamoto Fab 2.

However, in November of this year, the Japanese Cabinet approved a semiconductor subsidy plan of nearly JPY 2 trillion, deciding to grant a subsidy of JPY 900 billion to TSMC’s Kumamoto Fab 2, exceeding one-third of the construction cost.

As per TrendForce’s report, Japan is also actively supporting local company Rapidus with a goal of reaching the most advanced 2 nm process. They aim to create a semiconductor cluster in Hokkaido and are offering subsidies to foreign companies, including Japan Advanced Semiconductor Manufacturing (JASM) and PSMC’s Sendai plant (JSMC).

This dual-pronged approach by the Japanese government aims to attract both domestic and foreign semiconductor industry investments in Japan.

While the South Korean parliament expanded tax incentives for semiconductor facility investment in the chip law passed in March of this year, it did not provide direct cash subsidies, raising concerns among industry professionals about the potential overtaking of the South Korean semiconductor industry by Japan.

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• [News] Japanese Gov’t Grants TSMC 900B Yen, Kumamoto Fab 2 Announcement Soon
• Japan Flexes Its Advantages in Semiconductor Upstream Equipment and Raw Materials, and Unveils Strategic Progress of Key Players in Kyushu, Tohoku, and Hokkaido, Says TrendForce

(Photo credit: TSMC)

In a bid to compete with rivals like Tesla, who conduct in-house research and development of advanced chips for automotive applications, Japanese automakers have reportedly established a new organization to collaboratively research and develop advanced automotive chips, integrating their technologies and designs.

According to a report by Nikkei, automakers including Toyota have established a new organization called the “Automotive SoC Research Association” (temporarily referred as ASRA), joining forces to develop advanced chips for applications like autonomous driving.

Established in December in Nagoya, ASRA is set to commence research on SoC products with a process of 10nm or more advanced nodes starting in 2024. In addition to Toyota, other automakers such as Nissan, Honda, Mazda, Subaru, and Japanese enterprises including Renesas Electronics and Socionext have also joined the initiative.

According to the report, the trend of automakers intensifying in-house development of automotive chips is growing. The report further indicates that semiconductor giants in the United States, such as NVIDIA and Qualcomm, are also developing high-performance SoCs for automotive use.

Leading electric vehicle manufacturer Tesla has opted for in-house development due to dissatisfaction with limited choices, and their self-developed SoCs are already actively deployed in their vehicles.

On the other hand, Chinese automaker NIO, for example, possesses semiconductor research and development teams in both China and the United States. They have successfully developed semiconductor products used for controlling Light Detection and Ranging (LiDAR) technology.

(Photo credit: Pixabay)

TSMC’s 2nm fab, strategically positioned between the Hsinchu Science Park and the Nanzih Technology Industrial Park in Kaohsiung Science Park, is rapidly taking shape.

According to Liberty Times Net, reports from the supply chain suggest that up to five fabs could be constructed in the Nanzih. The first of these fabs, currently under construction, is scheduled to begin its tool-in in January 2025.

Furthermore, there are indications that construction for the second fab may commence in the near future. There is also speculation that the third fab might be designated for the production of 2nm process, although this possibility has not been ruled out.

Chen Chi-Mai, Mayor of Kaohsiung city, mentioned that the progress of the first fab is proceeding as scheduled as expectations. Additionally, miscellaneous permits for the second fab were issued to TSMC in mid-December, 2023

While the semiconductor industry is still undergoing inventory adjustments, TSMC still continues its pursuit of advanced process over Intel and Samsung. Construction is underway for the new 2nm fab, with the steel structure completed for the Baoshan 2nm fab in the Hsinchu Science Park, including the cleanroom, is currently in progress.

According to Wayne Wang, the director-general of the Hsinchu Science Park Bureau, Baoshan Phase 2 will serve as one of TSMC’s production bases for 2nm process. Simultaneously, public construction projects and fab construction are proceeding, with the first plant set to tool-in in April next year, following the completion of workflow inspections.

Nanzih is also a primary production base for TSMC’s 2nm fab. The initial plan for the first fab was to produce chips using the 28nm and 7nm process. However, in response to geopolitical and economic changes, the decision was made to switch to the 2nm process.

Due to the different specifications on each semiconductor equipment, the Nanzih project began earlier this year, and faced challenges. However, the design was subsequently modified right off the bat, and re-started. For now, the progress is halfway through the whole project.

Read more

• [News] TSMC’s 7th Advanced Packaging and Testing Plant Likely to Settle in Yunlin or Chiayi
• [News] Semiconductor Giants Vie for 2nm Supremacy as TSMC Expected to Lead Amid Intensifying Competition

(Photo credit: TSMC)