Foxconn’s annual Technology Day kicked off today at the Nangang Exhibition Center, following the tradition of celebrating founder Terry Gou’s birthday. Although Mr. Gou was not present at the event, NVIDIA CEO Jensen Huang made a surprise appearance, introducing the production version of Model B and highlighting its appeal to young couples.

Jensen Huang announced that he and Foxconn Chairman Young Liu are collaborating to establish an AI Factory. He shared hand-drawn sketches, emphasizing that they are adopting a novel approach to software development, enabling computers to create software based on human preferences and experiences. To ensure a computer’s ability to learn effectively, it must have access to abundant data from which it can derive valuable insights and experiences..

He unveiled the vital role of robust computers in facilitating AI learning. With NVIDIA’s assistance, Foxconn may collect enough data for AI to process shape network models, paving the way for innovative intelligence.

Jensen Huang then emphasized that this groundbreaking system is set to empower any factory or company, with Foxconn’s cutting-edge electric vehicle Model B enabling interaction between drivers and passengers. The AI Factory will offer a wide array of tools, including software solutions, to enhance the overall quality of life.

Chairman Liu reiterated their determination to bring AI Factory into fruition, backed by three core platforms: Smart City, Smart Manufacturing, and Smart EVs, all of which are driven by the innovative AI Factory.

Huang noted that these efforts will all be fueled by AI intelligence, ultimately creating substantial value. In a light-hearted tone, he concluded, “Let’s meet at the night market!”

Adding an interesting twist to the day’s events, Foxconn’s Tech Day featured three Foxconn N7 electric cars in deep blue, light blue, and white. Notably, the white vehicle showcased a handwritten message from Jensen Huang that read, “To Young and my friend at Foxconn, beautiful and amazing EVs! Jensen Huang.”

(Photo credit: Foxconn’s Stream)

The U.S. government tightened its control over exports of advanced computing and semiconductor manufacturing products to China on October 17th. The Entity List now includes more Chinese companies, including two prominent Chinese GPU manufacturers, Biren Technology and Moore Threads. These new restrictions further limit the export of Nvidia A800 and H800 chips.

The new regulations also block chips transferring to China through third-party countries, broadening the export restrictions to include Chinese overseas subsidiaries companies and additional 21 countries.

As reported from TechNews, Nomura Securities are unsurprising to Biren Technology and Moore Threads’ addition to the Entity List. These two chip makers primarily rely on TSMC as their main partner. Due to their limited production capacity, the influence on TSMC is anticipated to be minimal.

Since the U.S. initiated export controls on AI chips in October last year, operations of Biren Technology have continuously been affected. This new development is anticipated to have a relatively limited impact on the Chinese IC design market.

However, the import of ASML’s 1980i DUV model into China may be restricted without U.S. approval. Nomura Securities believe that this could negatively affect the Chinese semiconductor market, potentially causing delays in the expansion plans for 28nm production capacity for some Chinese semiconductor companies. These companies will also likely continue to postpone the purchase of domestic equipment.

Since the import of Nvidia A800, H800, and L40S into China might not be allowed, Nomura Securities consider this unfavorable news for the market. Nvidia may soon introduce new versions to comply with the new regulations. In this scenario, Huawei, with its capacity to design and manufacture advanced chips within China, may ultimately emerge as the most significant beneficiary in the Chinese market, as most Chinese GPU companies are already under sanctions.

The updated U.S. export restrictions also imply that more foreign manufacturers of AI chips will need to adjust their product specifications to meet the new requirements.

Explore more 

• Biden Tightens Export Restrictions to China, Nvidia’s Chips Impacted Most

(Image: Flickr)

Is the merger between NAND flash memory chipmakers Kioxia and Western Digital (WD) , which was expected to be finalized this month, facing a twist? According to media reports, South Korean memory giant SK Hynix is opposing this merger and is considering a collaboration with Japan’s SoftBank to invest in Kioxia.

As reported by Yomiuri Shimbun on the 18th, insiders reveal that the merger negotiations between Kioxia and WD might be at an impasse. Although both sides aimed to reach a merger agreement this month, SK Hynix, which plans to indirectly invest in Kioxia, doesn’t concur with the merger. In anticipation of negotiations collapsing, SK Hynix considers partnering with SoftBank to invest in Kioxia.

Kioxia, a spin-off from Toshiba’s memory business, was sold in 2018 to a Bain-Capital-lead consortium, including SK Hynix, and Hoya. At that time, regulations stipulated that the largest shareholder, Bain, must secure the consent of contributors like SK Hynix to promote this merger. It’s reported that SK Hynix is apprehensive that WD’s dominance will increase in this merger.

Reports suggest that SoftBank is currently bolstering its AI-related ventures. Therefore, by investing and enhancing relationships, SoftBank may secure a stable memory supply from Kioxia and SK Hynix.

Throne Shift for memory business? Mergers May Reshape Rankings

Nikkei reported on the 17th that SK Hynix does not approve of the Kioxia and WD merger. At this stage, SoftBank is not directly involved in the merger talks between Kioxia and WD. Kioxia and WD aim to secure a financing agreement with financial institutions this week to facilitate the merger. However, the lack of consent from SK Hynix may impact negotiations with financial institutions.

The report points out that in the NAND flash market, SK Hynix is the world’s second-largest manufacturer, trailing only Samsung. If Kioxia, the world’s third-largest manufacturer, and WD, the fourth-largest, were to merge, they would nearly match Samsung’s scale. This would create a significant gap between SK Hynix, which holds the third position, and raise concerns for SK Hynix.

Toshiba, currently holding approximately 40% of Kioxia, will also become a shareholder in the holding company, with Kioxia’s President, Nobuo Hayasaka, assuming the role of President for the holding company. Additionally, Kioxia will have the majority of seats on the board, granting substantial operational authority

According to data from TrendForce, In Q2 2023, Samsung leads the NAND memory market with 31.1% market share, while Kioxia holds 19.6%, and Western Digital has 14.7%. After the Kioxia-WD merger, their combined market share could exceed 34.3%, establishing them as the dominant force in the NAND memory market.

Explore more

• [News] Updates: Kioxia and Western Digital’s NAND Flash Progress towards Merger
• Q2 NAND Flash Revenue Up 7.4%, Anticipated to Exceed 3% Growth in Q3, Says TrendForce

(Image: SK Hynix )

DRAM Spot Market:

Even though the National Day holiday period has ended in China, the situation in the spot market is similar to that in the contract market. Specifically, spot trading has slightly declined due to insufficient actual demand. However, spot prices remain relatively high despite the lack of procurement activities. This is because sellers have not been actively offering price concessions to stimulate sales. The average spot price of mainstream chips (i.e., DDR4 1Gx8 2666MT/s) rose by 1.96% from US$1.533 last week to US$1.563 this week.

NAND Flash Spot Market:

Spot buyers are carrying on with their enlarged replenishment of inventory as buyers are generally dedicated to dropping wafer provision. With that being said, spot price for 512Gb that has now risen to US$2 has somewhat slowed down the speed of price increment, which led to a price consolidation this week. 512Gb TLC wafer spots have dropped by 0.21% this week, arriving at US$1.931.

In an event held on October 18, 2023, Foxconn Chairman Young Liu unveiled the company’s latest electric vehicle, MODEL N, demonstrating Foxconn’s comprehensive vertical integration capabilities. He also encouraged traditional automotive companies to harness Foxconn’s strengths for their future endeavors.

Chairman Young Liu expressed his excitement at the event, saying, “I am so excited to show off our latest EV model. This is MODEL N. With this new EV, we demonstrate a full range of vertically integrated capabilities. Traditional automotive companies, yes, I’m talking to you-can tap in all of these.”

He highlighted Foxconn’s achievements in the automotive industry over the past three years, including the introduction of various eye-catching products such as high-end sedan, passenger crossover, SUV, compact pick-up, commercial bus, and commercial van.

Chairman Liu emphasized that Foxconn’s CDMS (Commissioned Design and Manufacturing Service) business model provides the automotive industry with total and bespoke solutions. This business model significantly reduces costs and shortens time to market, which are critical factors for the future success of EV.

During the event, attendees had the opportunity to explore Foxconn’s electric logistics vehicles in the morning. In the afternoon, they were introduced to LEO, Foxconn’s Low Earth Orbit satellite. This satellite has already been packed and is scheduled to launch next month.

Chairman Liu mentioned that, before this, two of Foxconn’s CSO would setp onto the Tech Day stage to share their insights and perspectives on the EV and semiconductor industries.

(Photo credit: Foxconn’s Stream)