China’s exports rebounded in August, marking the highest increase in 17 months, as reported by the General Administration of Customs of China on September 10. The total export value, measured in USD, reached approximately $309 billion, representing an 8.7% year-on-year growth, surpassing both the previous month’s growth of 7% and the market’s expectations of 6.5%. Meanwhile, total imports amounted to around $200.9 billion, with a modest year-on-year growth of just 0.5%, significantly lower than the previous month’s 7.2% and the market’s forecast of 2%.

China’s economy currently shows a divergence between weak domestic demand and strong external momentum. However, as more countries, including the U.S., Canada, and the EU, increase trade barriers with China, combined with a global slowdown in consumer demand, future export growth may face greater challenges. At the same time, the continued weakness in import growth reflects sluggish domestic consumption, exacerbating deflationary risks. If China is to achieve its full-year GDP growth target of 5%, it may need to introduce stimulus policies aimed at boosting domestic consumption soon.

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Recently, China has set two records in semiconductor chip sector: first, it mass-produced the world’s first 28nm embedded RRAM image quality adjustment chip; second, it developed the world’s first 16-bit quantum bit semiconductor microprocessor chip.

• Mass Production of the World’s First 28nm Embedded RRAM Image Quality Adjustment Chip

As per the official account of “Beijing Yizhuang,” the world’s first 28nm embedded RRAM (Resistive Random Access Memory) image quality adjustment chip, developed by Chinese semiconductor company Xianxin Technology in collaboration with domestic research institutes, has achieved mass production in Beijing and has been successfully applied in the high-end series of Mini LED televisions of leading brands in China.

It is reported that this 28nm display chip adopts the “digital chip + embedded RRAM” technology solution. Compared with the mainstream counterpart in the industry, which uses the “TCON + external FLASH memory,”  this chip effectively addresses issues like the high cost of external memory devices and the slow read speed of compensation parameters.

Furthermore, the chip integrates RRAM IP directly on the 28nm process node, enabling lower cost, smaller size, and higher efficiency.

Data shows that this mass-produced 28nm embedded RRAM image quality adjustment chip is not only the first domestically developed 28nm display chip in China but also the world’s first advanced commercial image quality adjustment chip to use 28nm embedded RRAM IP.

It possesses fully independent intellectual property rights. Its built-in RRAM memory module and core RRAM IP technology are derived from the transformation of research institute results, and the image quality adjustment algorithm is independently developed by Xianxin Technology.

• HKPU Develops a 16-bit Quantum Bit Semiconductor Microprocessor Chip

Recently, a research team from Hong Kong Polytechnic University (HKPU) successfully developed the world’s first 16-bit quantum bit semiconductor microprocessor chip, providing a novel solution for simulating large and complex molecular spectra.

HKPU explained that the team used a linear photonic network and compressed vacuum quantum light source to simulate molecular vibration spectra. This 16-bit quantum microprocessor chip is manufactured and integrated on a single chip.

In addition, the research team also developed a complete system, including optoelectronic thermal packaging for the quantum photonic microprocessor chip and control module, driver software and user interface, as well as programmable underlying quantum algorithms. The developed quantum computing system can be applied to different computational models.

The quantum microprocessor can be used to handle complex tasks, such as faster and more accurate simulations of large protein structures or optimizing molecular reactions.

Dr. Zhu Huihui, a postdoctoral researcher and the first author of the research paper, stated that this method can break through traditional limitations, enabling early practical molecular simulations and potentially achieving quantum acceleration in related quantum chemistry applications.

It is reported that, in addition to HKPU, other collaborative institutions include Nanyang Technological University, City University of Hong Kong, Beijing Institute of Technology, Southern University of Science and Technology, Institute of Microelectronics (IME), and Chalmers University of Technology in Sweden.

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• [News] China’s Core AI Industry Achieved a Market Size of Nearly CNY 600 Billion
• [News] Nanjing, China Achieved Breakthrough in Manufacturing Key SiC Chip for the First Time

(Photo credit: Xianxin Technology)

China’s CPI recorded positive growth for the seventh consecutive month, rising by 0.6% year-on-year in August, up from 0.5% in the previous month, as reported by the National Bureau of Statistics on September 9. However, the CPI is still below market expectations of 0.7%.

This rise was mainly driven by continuous increases in food prices driven by high temperatures and heavy rainfall, which surged by 2.8% (previously 0%), contributing 0.51 percentage points to the overall CPI growth.

However, non-food prices fell from 0.7% in July to 0.4%, and core CPI, which excludes food and energy, rose by only 0.3%, down from 0.4% in the prior month. August’s PPI reflected similar trends, with China’s PPI declining by 1.8% year-on-year, widening from a 0.8% drop in July. This marks the 23rd consecutive month of contraction, highlighting weak domestic demand and increasing deflationary risks.

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Recently, the 54th “Statistical Report on China’s Internet Development” was released. In the first half of the year, generative artificial intelligence (AI) continued to be a global technology hotspot, and China’s AI industry has gradually entered a period of fast development. “AI+” continues to empower industrial upgrading, contributing to the acceleration of new productivity development and the deep advancement of new industrialization.

Data shows that the market size of China’s core AI industry has approached CNY 600 billion, with more than 4,500 AI companies, and the computing power ranks second globally.

On September 8, Vice Minister and Deputy China International Trade Representative Ling Ji explained that Chinese AI companies account for about 1/7 of the global total.

Meanwhile, AI products have gained significant recognition and use among China’s vast internet user base. The report surveyed the usage of generative AI products, showing that by June 2024, the penetration rate of AI, particularly large models, reached 16.4%.

Moreover, the “National Artificial Intelligence Industry Comprehensive Standardization System Construction Guide (2024 Edition)” , jointly issued by the Ministry of Industry and Information Technology, the Office of the Central Cyberspace Affairs Commission, the National Development and Reform Commission, and the State Administration for Market Regulation, was officially released.

The guide is regarded as a key document for the formation of China’s standard system to drive the development of the AI industry.

The guide points out that by 2026, the level of integration between standards and technological innovation in the industry will continue to improve, with more than 50 new national and industry standards being developed, accelerating the formation of a standard system that promotes the high-quality development of the AI industry.

More than 1,000 companies will participate in the promotion and implementation of these standards, with the effect of standards on corporate innovation becoming more prominent. China will also participate in the development of more than 20 international standards, promoting the globalization of the AI industry.

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• [News] Nanjing, China Achieved Breakthrough in Manufacturing Key SiC Chip for the First Time
• [News] US Reportedly Weighs Stricter Limits on AI Memory Access for China

(Photo credit: pixabay)

Apple is set to unveil the highly anticipated iPhone 16 on September 9, with many expecting that the AI platform “Apple Intelligence” will spark a supercycle in iPhone 16 sales. However, Bloomberg suggests that the slow rollout of Apple Intelligence may make such a supercycle unlikely.

The report notes that while Apple Intelligence will be a major highlight of the iPhone 16 launch, a more refined version might not be available for some time. The initial release is expected to lack several features, including ChatGPT. Additionally, Apple Intelligence will not be launched in the EU (including Italy, France, Spain, Sweden, Germany) or China.

Even if Apple successfully convinces consumers to adopt its AI platform, reportedly, Apple Intelligence will not be available with the iPhone 16 at launch. It is expected to roll out with the iOS 18.1 update in October.

Furthermore, ChatGPT integration is scheduled for later this year, and significant new features for Siri will not be available until next year, as Apple has also decided to delay the release of its latest image generation features to the iOS 18.2 update in December, rather than in iOS 18.1.

With many features expected to be introduced gradually, the AI platform may not be sufficient to drive a large-scale upgrade cycle this year. For these reasons, the report believes that the iPhone 17, slated for next fall, is more likely to generate a supercycle.

According to Apple’s official website, Apple Intelligence will only support devices with the built-in M1 or newer processors (such as iPad Air, iPad Pro, and Mac), as well as the 2023 iPhone 15 Pro Max and iPhone 15 Pro, but not the entry-level iPhone 15.

For the first quarter this year, TrendForce reported that Apple faced a decline in sales in the Chinese market, resulting in a drop in annual production to 47.9 million units.

This decline prompted several adjustments within the component supply chain, although production plans for processor chips remained unchanged. TrendForce posits that the second quarter falls within a product iteration gap for Apple, and production is expected to decrease by approximately 10%.

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• [News] Reducing Reliance on China, Apple to Produce High-End iPhones in India for the First Time
• [News] Fuelled by AI Features, Apple’s iPhone 16 Shipments Reportedly to Increase by 10%

(Photo credit: Apple)