The latest challenger has emerged in the battle for dominance in China’s GPU and graphics card market. China’s LinJoWing has unveiled its self-developed second-generation graphics processing chip, the GP201, reportedly boasting performance metrics surpassing that of AMD’s E8860 embedded graphics card.

According to a report from global media outlet Tom’s Hardware, LinJoWing, despite being only three years old, has demonstrated with its GP201 GPU performance comparable to AMD’s E8860 integrated graphics card from a decade ago. While the GPU is already in production and available in China, it has yet to surface on American shopping websites.

As per a report from Chinese media outlet IT Home, the GP201 outperforms the AMD E8860 embedded graphics card in various aspects such as 3D performance, 2D polygon rendering, ellipse rendering, pixel and image shifting, window rendering, and support for the domestic OpenCL library platform.

Additionally, LinJoWing’s GP201 GPU supports multiple Chinese-made processors and operating systems, with single-precision floating-point computing power reaching 1.2 Tflops. It supports 4K 60Hz display and H.265 decoding, with a maximum power consumption of 30W. Currently, five models of the GPU have been released in full-height, half-height, MXM, and other forms.

Tom’s Hardware believes that the performance of the GP201 is actually unimpressive. NVIDIA’s entry-level product, the GT 1030, released in 2017, matches the GP201 in terms of clock speed, TFLOPS, and power consumption, with eBay prices generally below $50. The GT 1030 benefits from mature NVIDIA drivers, making it difficult for LinJoWing to reach this level. However, LinJoWing’s ability to enter production after only three years of establishment gives it a competitive edge over other Chinese graphics cards.

This year, LinJoWing also surpassed its competitor Loongson in the low-end GPU market. However, challenging its biggest competitor, Moore Threads, will require further effort. Currently, Moore Threads’ flagship GPU’s specifications can rival NVIDIA’s RTX 3060 Ti.

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The U.S. government has reportedly revoked the licenses of Intel and Qualcomm to supply semiconductor chips used in laptops and handsets to Huawei. According to Reuters citing sources, some companies received notices on May 7th, and the revocation of the licenses took immediate effect.

In April, Huawei unveiled its first AI-supported laptop, the MateBook X Pro, equipped with an Intel Core Ultra 9 processor. This announcement drew criticism from Republican lawmakers in the United States, who argued that the Commerce Department allowed Intel to export chips to Huawei. Notably, the sources cited in a report by Reuters on March 12th once stated that Intel’s competitor, AMD, had applied for a similar license to sell comparable chips in early 2021 but did not receive approval from the US Department of Commerce.

In response to the matter surrounding Intel and Huawei, the Commerce Department confirmed the revocation of some export licenses to Huawei but declined to provide further details. Still, revoking the licenses not only damages Huawei but may also impact U.S. suppliers with business relationships with the company.

According to a report from Bloomberg, Qualcomm, which obtained a license in 2020, has been selling older 4G networking chips to Huawei, but the company expects its business to gradually decrease next year.

Another report from Reuters also indicated that Qualcomm continues to license its 5G technology portfolio to Huawei, allowing the latter to use HiSilicon’s 5G chips since last year, raising concerns of violating U.S. sanctions. Additionally, according to the same report, documents submitted by Qualcomm this month indicated that its patent agreement with Huawei will expire in the fiscal year 2025, which is earlier than expected, thus prompting negotiations for renewal agreements to begin sooner. Qualcomm has not responded to these reports.

Due to concerns over potential espionage activities by Huawei, the White House included Huawei in the trade restriction list in 2019, which requires suppliers to apply for licenses before shipping goods to blacklisted companies. However, despite this, Huawei suppliers still obtained licenses worth billions of USD to sell goods and technology to the Chinese tech giant, including allowing Intel to sell CPUs starting in 2020.

Republican Representative Elise Stefanik believes that revoking the licenses will strengthen U.S. national security, protect U.S. intellectual property rights, and thus weaken the technological advancement capabilities of communist China.

Previously, U.S. Commerce Secretary Gina Raimondo pointed out that the new chips introduced by Huawei are not as capable and lag behind U.S. chips by several years in performance, indicating that U.S. export controls on China are effective.

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(Photo credit: iStock)

The recent rapid downturn in the black market prices of AI servers equipped with NVIDIA’s highest-tier AI chip, the H100, in China, has attracted attention, as per a report from Economic Daily News. This fluctuation, triggered by US sanctions, has reportedly prompted concerns about its impact on overall supply and demand dynamics, and whether it will further squeeze normal market mechanisms.

Industry sources cited by the same report have revealed that the prices of AI servers equipped with the H100 chip have recently plummeted on the Chinese black market. This is primarily due to the imminent launch of NVIDIA’s next-generation high-end AI chip, the H200. With the transition between old and new products, scalpers who previously hoarded H100 chips to drive up prices are now offloading their large inventories.

As per a report from Reuters, despite the US expanding its ban on AI technology-related exports to China last year, some dealers are still taking risks. There is still trading of H100 chips in the Huaqiangbei electronics market in northern Shenzhen, but it has all gone underground. The chips are said to be mainly imported into China through purchasing agents or shell companies set up overseas, making them accessible to Chinese universities, research institutions, and even companies through special dealer channels.

Due to the US ban, both the H100 chip and AI servers equipped with it can only be traded on the black market, not openly. Scalpers have significantly inflated prices, with servers featuring the H100 chip reaching over CNY 3 million (over USD 420,000) in China, compared to the official price of USD 280,000 to USD 300,000, resulting in profits of over 10% for some middlemen after deducting logistics and tariffs.

With the H200 set to launch in the second quarter, the H100 will become the “previous generation” product. Consequently, middlemen who had hoarded H100 chips are eager to sell their inventory, leading to a rapid correction in prices.

Recently, servers with the H100 chip on the China black market have dropped to around CNY 2.7 to 2.8 million, with spot prices in Hong Kong falling to around CNY 2.6 million, representing a decline of over 10%.

According to a previous report from Reuters, in response to Chinese universities and research institutions reportedly acquired high-end AI chips from NVIDIA through distributors, a NVIDIA spokesperson stated that the report does not imply that NVIDIA or any of its partners violated export control regulations, and the proportion of these products in global sales is negligible. Nvidia complies with U.S. regulatory standards.

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(Photo credit: NVIDIA)

Japan is reportedly planning to expand export restrictions on four technologies related to semiconductors or quantum computing, as per a report from Bloomberg. This move is said to represent the latest initiative in global efforts to control the transfer of strategic technologies.

The same report indicates that Japan’s new measures will affect the export of scanning electron microscopes used for analyzing nano-particle images, as well as the technology for improving semiconductor design known as Fully Depleted Silicon on Insulator (FD-SOI) technology. Japan will also require licenses for the low-temperature CMOS circuits used in quantum computers, as well as for the outputs of quantum computers themselves. These restrictions apply to Japan’s most significant trading partners, including South Korea, Singapore, and Taiwan.

The Japanese Ministry of Economy, Trade, and Industry recently stated that the purpose of this plan is to better regulate the export of components for military purposes and to align with similar initiatives around the world. Reportedly, the Ministry emphasized that after public consultations ending on May 25th, while this plan is expected to take effect as early as July.

In fact, in 2023, Japan expanded export restrictions on 23 types of cutting-edge semiconductor manufacturing technologies. The implementation of these controls followed after the United States restricted China’s access to crucial semiconductor fabrication technologies. At that time, reportedly, Washington officials lobbied international partners such as Japan and the Netherlands to impose trade sanctions on China, aligning with the U.S. view of China as a geopolitical and potential military competitor.

Export controls chief Alan Estevez, as reported by Reuters during an annual conference, emphasized the importance of discussions with allies regarding key component servicing. He mentioned ongoing efforts to assess which components require servicing, hinting at the US’s reluctance to impose restrictions on non-core components that Chinese firms can repair independently.

Since then, the US has reportedly been urging allies such as the Netherlands, Germany, South Korea, and Japan, urging them to further tighten restrictions on China’s access to advanced chip technology.

According to a previous report from Nikkei News, the U.S. government initiated semiconductor export controls in various fields, including manufacturing equipment, in October 2022. This decision stems from the belief that semiconductors, which play a crucial role in new-generation technologies such as AI and autonomous driving, are strategic commodities directly related to national power.

Consequently, the U.S. government requested further cooperation from Japan and the Netherlands, leading to both countries strengthening their controls in 2023. However, despite these measures, exports of related products, excluding those under control, to China are sharply increasing. Therefore, the U.S. government believes it is necessary to urge Japan and the Netherlands, which have advantages in semiconductor manufacturing equipment, to take further actions.

Currently, manufacturing equipment required for advanced semiconductors with range of 10 to 14 nanometers and below are subject to export control restrictions. The United States is pushing to expand regulations to include certain equipment for what are known as general-purpose semiconductors.

This request is believed to potentially encompass exposure equipment used on silicon wafers, as well as etching equipment for three-dimensional stacking in. Among Japanese companies, Nikon and Tokyo Electron possess advanced capabilities in this field.

The same report from Nikkei News further notes that the restrictions also extend to materials related to Shin-Etsu Chemical Industries, such as photosensitive materials, and demand restrictions on exports to China. Additionally, the United States is preparing to request that the Netherlands cease providing maintenance and services for manufacturing equipment sold to China before the 2023 regulations. The strengthened control will also have a certain impact on allied countries.

Currently, Dutch company ASML is believed to still be providing such services to Chinese buyers. Per ASML’s financial report, during Q1, machine revenue from the Chinese market increased significantly from the previous quarter’s 39% to 49%.

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(Photo credit: ASML)

As the global semiconductor landscape undergoes restructuring, major packaging and testing companies are actively establishing overseas advanced packaging capacities. According to a report from Commercial Times, semiconductor industry sources have indicated that, in terms of the clustering effect within the semiconductor industry, the primary targets currently include Japan, Malaysia, and Singapore.

Industry sources cited by the same report have pointed out that the global top ten packaging and testing companies are dominated by Taiwan, China, and the United States. Taiwan holds the lead with five industry giants including ASE Group, Powertech Technology, King Yuan Electronics CO. (KYEC), Chipbond Technology, ChipMos and Sigurd.

China boasts four key players such as Jiangsu Changjiang Electronics Technology Co., Tongfu Microelectronics, and Huatian Technology Co. Meanwhile, the United States is represented by Amkor, the world’s second-largest in scale. Japan’s pursuit of rebuilding the packaging and testing industry through a foundry model and seeking support from Taiwanese companies can be seen as a logical progression.

Given that nine out of the top ten packaging and testing companies are located in the Asia-Pacific region, the strategic positioning in Asia is particularly notable, with Japan, Malaysia, and Singapore all striving to make their mark.

Industry sources cited by the same report point out that Malaysia has been developing its semiconductor industry for decades, with Penang being a prominent semiconductor hub. Not only does Penang boast technological advantages, but it is also dubbed the “Silicon Valley of the East.”

As companies like TSMC, Samsung, and Intel expand their fabs to locations such as the United States and Europe, the downstream semiconductor testing and packaging activities are gradually forming clusters in Malaysia. This includes ASE Group’s significant investment in building a new testing and packaging facility in Penang, scheduled for completion in 2025.

Intel is also planning to establish advanced packaging facilities in both Penang and Kedah. Additionally, Texas Instruments from the United States has announced plans to build semiconductor testing and packaging facilities in Kuala Lumpur and Malacca.

While Malaysia’s testing and packaging sector has become a hub, industry sources cited by the report point out that despite many countries aggressively building their semiconductor industry chains, Japan is seen as the country, outside of Taiwan, with the most comprehensive semiconductor supply chain in the future, due to factors such as cultural traits, industrial development experience, geographical proximity to Taiwan, and long-standing close cooperation.

TrendForce has previously reported that Japan’s resurgence in the semiconductor arena is palpable, with the Ministry of Economy, Trade, and Industry fostering multi-faceted collaborations with the private sector. With a favorable exchange rate policy aiding factory construction and investments, the future looks bright for exports.

With Japan rapidly catching up in development, it becomes necessary for companies like ASE Group to strengthen their presence in Japan. The sources cited by the report are optimistic that Taiwanese-owned testing and packaging facilities may follow suit.

Recently, Powertech Technology Inc., Taiwan’s testing and packaging company, expressed openness to exploring opportunities in Japan, including seeking subsidies from the Japanese government, following the model set by TSMC.

Singapore is also actively strengthening its semiconductor industry chain. Per official Singaporean data, out of the 15 world-class chip design companies, 9 have established bases in Singapore. Additionally, there are 14 semiconductor fabs and 20 semiconductor assembly and testing facilities.

Coupled with the nearby established backend testing clusters in Malaysia, if Singapore constructs a more complete industry chain, it is poised to attract even more world-class testing and packaging companies to establish their presence there.

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