In a significant move to regulate online and mobile games, China’s National Press and Publication Administration has issued a draft regarding online game management measures, with the intention of soliciting public opinions.

It is stipulated that online games are prohibited from offering inducement rewards such as daily login bonuses, first-time recharge perks, and consecutive recharge incentives. This directive directly challenges the prevailing business and monetization models in the current landscape of online and mobile gaming.

The regulation further mentions that, game publishers are forbidden from providing or tolerating high-priced transactions of virtual items through speculative or auction formats. All online games must implement user recharge limits, which should be publicly disclosed in their service rules.

For users engaging in irrational consumption behavior, there should be pop-up warning reminders. When providing random draw services, online game publishers must reasonably set the draw frequency and probabilities, avoiding inducing users to overspend.

Additionally, alternative methods such as virtual item exchanges and direct purchases with in-game currency should be offered to users to obtain items with similar functionality and value-added services.

The regulations also emphasize that the online game publishers should announce the termination of publishing or operating the game at least 60 days in advance. Refunds or exchanges should be conducted in legal currency or other methods accepted by users, based on the proportion of user purchases.

The regulations stipulate that online game publishers must have the necessary technical equipment, related servers, and storage equipment located within the territory of China.

(Photo credit: Unsplash)

In response to export restrictions on AI chips by the U.S. Department of Commerce, NVIDIA has previously introduced a China-Exclusive version of its graphics card, featuring the AD102-250 GPU and named GeForce RTX 4090 D.

According to ICsmart’s report, industry insiders has revealed that NVIDIA is rumored to officially unveil GeForce RTX 4090 D on December 28 at 10:00 PM (GMT+8), with the suggested retail price remaining at CNY 12,999.

Due to the impact of the new U.S. export restrictions on semiconductor to China in October this year, NVIDIA’s high-end gaming graphics card, GeForce RTX 4090, faced restrictions in sales in China.

In order to address this issue, NVIDIA decided to develop the customized GeForce RTX 4090 D specifically for the Chinese market. By adjusting certain specifications to comply with U.S. export control requirements, they aim to continue sales in the Chinese market.

According to previous information, the RTX 4090D is still based on TSMC’s 4nm process, featuring the AD102 GPU. However, the core designation changes from AD102-300 to AD102-250, corresponding to a downgrade in specifications. The exact number of CUDA cores is not yet clear, but is expected to be fewer than the 16,384 cores in the RTX 4090.

Additionally, the core base clock will see a slight increase from 2235MHz to 2280MHz, while the boost clock remains at 2520MHz. It is possible that the card will retain 24 GB of GDDR6X memory capacity with over 1 TB/s of bandwidth. The total board power (TBP) is expected to see a slight reduction from 450W to 425W.

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(Photo credit: NVIDIA)

An increasing number of Chinese semiconductor design companies are seeking collaboration with testing and packaging facilities in Malaysia to carry out advanced chip packaging. According to Reuters’ report, this move aims to hedge the risk of potential expanded U.S. restrictions on the Chinese semiconductor industry.

As there is currently only one non-U.S. testing and packaging provider in Malaysia with advanced capabilities, namely ASE Technology Holding Co., a Taiwanese semiconductor packaging and testing firm, industry sources believe that ASE is likely to become the top choice for orders from Chinese enterprises.

Previously, the U.S. has imposed controls on China’s advanced semiconductor manufacturing processes and access to high-performance chips from major companies like NVIDIA. However, advanced packaging has not yet fallen within the restricted scope.

Two anonymous sources reportedly revealed that some of the Chinese businesses are showing interest in advanced chip packaging services. Despite the fact that the chip packaging sector has not yet faced export controls from the U.S., concerns are rising among businesses due to its involvement in sophisticated technology, fearing that it might be targeted for curbs on exports in the future.

Reuters’ report also indicates that due to the relatively affordable investment costs in Malaysia and the availability of experienced workforce and sophisticated equipment, an increasing number of Chinese chip design firms are seeking Malaysian Firms to carry out advanced chip packaging activities, including graphic processing units (GPUs).

Insiders have informed Reuters that the related contracts only involve packaging and do not violate any restrictions imposed by the U.S.. Additionally, they clarified that wafer manufacturing is not included in these contracts.

Two of the sources mentioned that some contracts have already been agreed. However, these insiders prefer not to disclose the names of the involved companies.

Meanwhile, according to a report from Taiwan’s Economic Daily News, when observing the global landscape of advanced packaging, in addition to TSMC, there are integrated device manufacturers (IDMs) like Intel and Samsung, as well as outsourcing semiconductor assembly and test (OSAT) companies like ASE Technology, Amkor, and others that possess advanced packaging capabilities. Among them, only ASE Technology, Amkor, and Intel have production capacity in Malaysia.

Reportedly, industry analysts predict that Chinese companies seeking advanced packaging support in Malaysia, due to geopolitical considerations, are likely to avoid American companies such as Intel and Amkor. Given that ASE is not an American company and can provide high-end packaging services, it is expected to be the preferred choice for Chinese companies.

ASE has previously stated that it will continue to invest in advanced packaging for AI, expecting the performance of advanced packaging to double next year compared to this year.

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(Photo credit: ASE Holdings)

According to a news report from Financial Times, Apple has reportedly informed its supply chain, including battery suppliers such as China’s Desay Corporation and Taiwan’s Simplo Technology, of its inclination to shift the battery supply for the iPhone 16 to India. Apple is encouraging suppliers to relocate existing production capacity to India to expand production scale in the region.

TrendForce believes that, given the critical nature of battery components in terms of user safety, any error in battery assembly is unacceptable. As Apple’s certainty about production yields in India remains unclear, this move carries certain risks.

Apple Expedites iPhone Assembly Business Transfer to India to Mitigate Geopolitical Risks

As the world’s most valuable company, Apple’s supply chain strategy has always been a key factor in its success. Amidst geopolitical tensions between the U.S. and China, Apple faces significant pressure from both the investment community and U.S. policymakers to diversify its supply chain, prompting an acceleration in the transfer of iPhone assembly operations.

In recent years, Apple has been shifting part of its iPhone assembly business from China to India to mitigate production risks.

The choice of India as a manufacturing destination is influenced not only by its large and untapped population but also by proactive subsidy policies implemented by the Indian government, aiming to position India as an attractive manufacturing and export hub for multinational companies.

Additionally, the growth potential of the iPhone in the Indian market adds to the appeal of relocating iPhone production to India. 

Increased Risks as Battery Component Production Shifts to India amid Uncertain Yield Rates

Analyzing the manufacturing distribution for Apple’s iPhone 15 series in 2023 reveals Foxconn’s predominant role, with only specific Plus models being produced by India’s Tata Group.

This strategic move, based on TrendForce’s insight, is inferred to be influenced by the Plus models’ lower sales performance in previous generations and their specific product positioning. Apple seems cautious about shifting production to India entirely until the production standards of Indian manufacturing facilities are confirmed, especially for models with comparatively lower demand.

In the ever-evolving landscape of smartphone components, such as core processors and camera modules, upgrades occur almost annually. However, the upgrade pace for smartphone batteries has been notably slower.

This delay is attributed to the critical importance of safety in battery components. Given the potential risks to user safety, even a minor error in battery components could lead to significant harm to a smartphone brand.

Considering this, the manufacturing distribution for Apple’s iPhone 15 series suggests that Apple might not be entirely confident in the production yield rates in India.

If the decision to shift the production of batteries, which requires a special emphasis on safety, to India is solely driven by the need to mitigate geopolitical uncertainties, it indeed poses a certain level of risk for Apple.

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According to ChinaTimes’s report, following Taiwan’s implementation of strict control on 22 core key technologies, several Taiwanese lawmakers are urging the country’s Ministry of Economic Affairs to also consider “mild control” for the export of mature semiconductor process equipment and industry talents from Taiwan to China. Furthermore, the Ministry of Economic Affairs emphasized its success in attracting semiconductor giants like AMD and NVIDIA.

Taiwan’s Minister of Economic Affairs, Wang Mei-hua, stated on the December11th that discussions across government departments would be necessary to include mature semiconductor processes and industry talents in the category of “mild export controls.”

The Ministry of Economic Affairs aims to present its view on this matter within three months. She emphasized the importance of ensuring Taiwan’s continued role in critical international supply chains.

Other officials under the ministry added that they are aware of China’s significant efforts to develop mature processes. They plan to conduct an analysis of the expansion of mature processes in China, and any regulatory responses will be based on the results of this analysis.

The officials noted that China aims for competitiveness in terms of price and quantity but emphasized that Taiwan has advantages in certain special semiconductor manufacturing processes. They expressed caution about Chinese IC design firms potentially impacting the lower-end market by placing orders with their compatriot foundries.

The Ministry of Economic Affairs highlighted its success in attracting major AI chip manufacturers, such as AMD and NVIDIA, to establish logistics and operational centers in Taiwan over the past two years.

NVIDIA has chosen to establish its hub warehouse logistics center within the Farglory  Free Trade Zone. NVIDIA’s product applications span both consumer and industrial sectors, with a future focus on investments in 5G, AI, autonomous vehicles, cloud computing, advanced applications, and data centers.

The establishment of a logistics center in Taiwan is expected to further increase the share of OSAT orders in Taiwan, driving development in Taiwan’s advanced IC packaging technology. Additionally, AMD initiated an assessment in 2022 for investing in a “mega” logistics center in Asia.

The Taiwanese Ministry of Economic Affairs held multiple meetings to facilitate communication between the company and the Ministry of Finance, explaining the project’s economic benefits to Taiwan. Finally, with successful coordination, AMD smoothly proceeded with the establishment of its logistics center in Taiwan.

AMD anticipates significant revenue growth from the logistics center, aligning with the demand for high-end AI server orders from the fourth quarter of this year to the next.

(Photo credit: NVIDIA)

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