Individuals may be using the guise of selling second-hand air conditioners to buy and sell sexual services on the Alibaba-operated  second-hand goods and services platform Xianyu, according to app users who posted about an alternative use of the keyword “second-hand air conditioners” on Chinese X-like platform Weibo.

Chinese internet users have dubbed  Xianyu “yellow fish” since the case came to light, because “yellow” in Chinese can refer to pornography; users have also made fun of  Xianyu’s meaning,  “leisurely fish.” Xianyu’s customer service department responded on Wednesday that the team will enhance their review procedures to weed out such  transactions, according to a Sina News post on Weibo.

Why it matters: In China, the buying and selling of sexual services is illegal, prohibited under the country’s public morality and social order laws. This issue may reflect a misuse of online platforms, where individuals exploit legitimate categories to facilitate illicit activities.

Details: Terms such as “second-hand air conditioners,” “coins,” “Apple SIM card ejector,” and “Giant bike” have allegedly become code words suspected for selling sex on the online trading platform, according to comments posted on social media.

• A screenshot posted by a netizen shows a page from a seller on Xianyu purportedly listing a second-hand air conditioner in 90%-new condition, with a promise of home installation. In the background of the image is an air conditioner mounted on the wall, while the bottom left-hand corner features small photos of different women. The price displayed ranges from RMB 50 to RMB 600 ($7 to $83), though sellers can edit prices after transactions.
• According to a video posted on Weibo, a one-cent coin priced at over a thousand yuan actually relates to a sexual service, where the production year on the coin indicates the age of the sex worker. For instance, a coin from the year 2000 signifies that the sex worker was born in 2000.
• “Don’t ask why a pin tool is so expensive. Some things are not measured by value,” states the Apple SIM card ejector product description page in another example.
• Some Xianyu users looking to buy a second-hand Giant bicycle came across a local seller on the platform. However, the two sides engaged in a confusing conversation, according to screenshots shared on social media. The bike could be ridden for 90 minutes, the seller allegedly said, implying the duration of a sex service.

Context: Xianyu said its daily GMV (Gross Merchandise Volume) on the platform has exceeded one billion RMB ($138 million), local media outlet 36Kr reported in March. In the past year, over 100 million people posted items for sale on the platform, the company claimed.

• Digital products, ACG (anime, comic, game) products, tickets, vouchers, transportation tools, sports and outdoor equipment, and clothing have been among the top categories.

The 142nd International Olympic Committee (IOC) Session was held in Paris on Tuesday, during which a proposal was approved for the first edition of the Olympic Esports Games to be held in Saudi Arabia in 2025. The IOC stated on its website, “history was made today.”

Why it matters: The Olympic Esports Games represents a major step in legitimizing and mainstreaming esports within the global sports community. The decision of the IOC acknowledges the increasing popularity and competitive nature of this rapidly evolving field.

Details: To organize the Olympic Esports Games, the IOC has entered into a 12-year partnership with the Saudi Arabian National Olympic Committee (NOC), according to the IOC announcement.

• Following the proposal’s approval, both parties are beginning the process to select the host city and venue for the event and finalizing details regarding the event schedule, disciplines, and qualification processes for the participants.
• At the same time, the IOC will establish a new, separate structure for the Olympic Esports Games, distinct from the Olympic Games’ organizational and financial model.
• “With the confirmation by the IOC Session of the creation of the Olympic Esports Games, we are keeping up with the pace of the digital revolution. The esports community, represented in our Esports Commission, has enthusiastically engaged with this initiative. This is further proof of the attractivity of the Olympic brand and the values it stands for among young people,” said the IOC President Thomas Bach.
• IOC member Reema Bandar Al-Saud, who serves on the Board of Directors of the Saudi Arabian Olympic and Paralympic Committee and as President of the Women’s Committee, stated that Saudi Arabia has over 23.5 million gamers, nearly half of whom are female. She said she views hosting the 2025 Olympic Esports Games as a natural progression in opening Saudi Arabia to the world.

Context: Last September, esports made its debut as an official competition event at the 19th Asian Games in Hangzhou, China. The competition included seven esports titles: League of Legends, Honor of Kings, PUBG Mobile, DOTA 2, Dream Three Kingdoms 2, Street Fighter V, and FIFA Online 4.

• On July 3, the first edition of the Esports World Cup kicked off in Riyadh, the capital of Saudi Arabia. Running until August 25, the event features 1,500 athletes from 425 clubs competing in 21 esports events for the honor of being crowned the first group of world champions.

TSMC on Thursday announced its financial results for the second quarter of 2024, reporting a 40.1% year-on-year revenue increase. The Taiwan-based chip foundry also stated that it has raised its full-year revenue and capital expenditure targets for 2024. The firm’s earnings call was also remarkable for TSMC CEO C.C. Wei introducing the new concept of “Wafer Foundry 2.0” for the first time during his comments to investors.

Why it matters: TSMC’s introduction of Wafer Foundry 2.0 signifies a strategic expansion beyond traditional wafer manufacturing. The move aims to capitalize on emerging market opportunities and meet the growing complexity of semiconductor production.

Details: TSMC said the idea of Wafer Foundry 2.0 is intended to better leverage its advanced packaging capabilities for market expansion by encompassing a wider range of activities compared to the traditional wafer manufacturing industry.

• As chip manufacturing becomes increasingly complex, wafer foundries have evolved beyond simple wafer manufacturing services. Wafer Foundry 2.0 was unveiled during TSMC’s second quarter earnings call, during which Wei redefined the foundry industry to include packaging, testing, mask-making, and IDM (Integrated Device Manufacturer) operations.
• Wei also noted that demand for TSMC’s 3nm and 5nm process technologies remains strong. As the company enters the third quarter, the demand for advanced processes driven by smartphones and AI opportunities has slightly raised its full-year revenue forecast for 2024, increasing the expected growth range from 21%-26% to 24%-26% year-on-year, he said.
• TSMC has also raised its 2024 capital expenditure budget from $28 billion-$32 billion to $30 billion-$32 billion. Of this, 70% to 80% will be allocated to advanced process technologies, 10% to 20% to special process technologies, and 10% to advanced packaging, testing, and mask-making, the company said.
• In the second quarter, TSMC reported revenue of NT$673.51 billion ($20.56 billion), a 40.1% increase year-on-year and a 13.6% rise quarter-on-quarter. Net profit was NT$247.85 billion ($7.57 billion), up 36.3% from the previous year and 9.9% from the previous quarter.
• In terms of revenue distribution by process technology, TSMC’s revenue from advanced processes of 7nm and below reached 67% in the second quarter. The firm’s 3nm process revenue accounted for 15% of this total, largely due to the launch of Apple’s A17 Pro series processors last year, as well as its M4 series processors and the upcoming A18 series processors this year.
• By end-use application, the revenue breakdown is as follows: high-performance computing accounted for 52%, smartphones for 33%, IoT for 6%, automotive electronics for 5%, consumer electronics for 2%, and others for 2%.

Context: Apple has secured the first batch of TSMC’s 2nm production capacity, expected to start trial production soon. The new chips, debuting in the iPhone 17 series, may boost performance by up to 15% and cut power consumption by 30% compared with the 3nm process.

On Wednesday, ASML released its financial report for the second quarter and stated that the period’s sales of 6.24 billion euros ($6.82 billion) exceeded the company’s expectations, even though overall net sales declined compared to the same period last year. 

Despite geopolitical uncertainties and restrictions on chip-related exports from the Netherlands to China, demand for ASML equipment in the Chinese mainland market remained strong, accounting for 49% of the Dutch company’s net system sales in the second quarter.

Why it matters: ASML’s revenue was impacted in the previous two quarters after the Dutch government’s chip-making equipment export restrictions took effect last September, and ASML’s export license expired at the end of 2023. Demand in the Chinese mainland market has now primarily shifted to unrestricted DUV (deep ultraviolet lithography) equipment.

Details: ASML reported mixed financial results for the second quarter, with a 7.6% year-on-year decline in net sales but an 18% increase from the previous quarter. On the same day, their US-listed shares dropped 13% due to reports that the US is considering even stricter rules around chip-related exports to China.

• In the second quarter of 2024, ASML achieved net sales of 6.24 billion euros ($6.82 billion), a decrease of around 7.6% from the 6.75 billion euros ($7.38 billion) it reported for the same period last year, though the figure marked an increase of around 18% compared to the first quarter of 2024’s 5.29 billion euros ($5.78 billion), according to the report.
• In terms of regional breakdowns, mainland China continues to be ASML’s largest market, with mainland Chinese net system sales accounting for 49% (2.33 billion euros, equivalent to 2.55 billion dollars) of the company’s total. This proportion remains consistent with the first quarter, reflecting a 20% increase from China’s 1.94 billion euros ($2.12 billion) in the first quarter of this year.
• “Gross margin for the quarter came in at 51.5%, which was above our guidance, primarily driven by more immersion systems than planned,” CFO Roger Dassen said on an ASML investor call. Dassen added that the company expects total net sales for the next quarter to hit between 6.7 billion euros ($7.32 billion) and 7.3 billion euros ($7.98 billion), with R&D expenses estimated at around 1.1 billion euros.
• “Although macro uncertainty remains, overall semiconductor inventory levels continue to improve, trending towards more healthy levels,” ASML CEO Christophe Fouquet said during the same investor call. The company’s outlook for the full year is unchanged with revenue expected to be similar to last year, he added.
• US-listed shares of ASML slumped 13% following a Bloomberg report on Wednesday that the Biden administration is considering tougher restrictions to limit companies exporting critical chip-making equipment to China.

Context: On June 30, 2023, the Netherlands announced new export controls on the sale of advanced chip-making equipment to China, which took effect on September 1 that year. The rules require Dutch manufacturer ASML to apply for a license to ship some of its deep ultraviolet lithography (DUV) systems to China.

• In the first quarter, ASML sales revenue was 5.29 billion euros ($5.78 billion), down from 6.7 billion euros ($7.32 billion) during the same period last year.

On July 12, the Bilibili World 2024 event opened at the National Exhibition and Convention Center, attracting ACG (Anime, Comic, Game) fans from across China who traveled to Shanghai to become part of the Chinese streaming platform’s annual celebration. 

The three-day event this year featured over 700 exhibitors and 800 ACG-content creators. The Lenovo booth showcased two new AI products: the YOGA Air 14c AI PC and the Legion Y9000P AI PC.

Why it matters: Bilibili World 2024 draws in ACG fans to celebrate shared interests, which meant the AI-powered Lenovo PCs garnered significant attention.

Details: The Lenovo YOGA Air 14c AI PC is designed for work, while the Lenovo Legion Y9000P AI PC is principally marketed to gamers. 

• “In the current wave of AI development, computers are gradually evolving into personal assistant roles. As a leading enterprise in the PC industry, Lenovo will continue to maintain its leadership in this new era,” said Li Weichang, Vice President and General Manager of Lenovo China’s Consumer PC and Tablet Business, at the booth during the event.
• Li said an advanced AI PC should have five features: an embedded personal intelligent agent for natural interaction, a built-in knowledge base, combined CPU+GPU+NPU AI processing power, an open AI application ecosystem, and protection for personal privacy and data security.
• The Lenovo YOGA Air 14c AI laptop is equipped with an Intel Core Ultra 7 155H processor, featuring an advanced 6+8+2 core thread configuration, with a maximum frequency of up to 4.8GHz. The AI model offers up to 32GB RAM and 1TB storage.
• The YOGA Air 14c AI PC integrates an intelligent agent, Lenovo Xiaotian, powered by the firm’s self-developed Tianxi large language model. Lenovo Xiaotian is able to learn user habits and preferences at work and while engaged in entertainment. The AI assistant is then able to offer practical functionalities including AI-powered PowerPoint production, document summarizing, voice cloning, and painting.

• The flagship Y9000P AI features Intel’s i9-14900HX processor and Nvidia’s RTX 4090 graphics card, supporting direct GPU connection technology with a maximum power consumption reaching up to 250W. In terms of display, the flagship model provides a 2,560 x 1,600 resolution 240Hz screen for a detailed gaming experience.
• The Legion Y9000P AI laptop is also equipped with Lenovo Xiaotian, which interacts with users in various scenarios including document summarizing, research question answering, and AI performance tuning.

Context: Held since 2017, Bilibili World is a community-focused annual large-scale in-person event organized by Bilibili, a leading Chinese video-sharing website. On June 29, the first round of the ACG event’s ticket sales saw 27,000 VIP tickets sell out within 30 seconds, with 100,000 general admission tickets gone within one minute, according to the company’s own app.

• Intel’s China District Technical Director, Gao Yu, attended the event and introduced the Intel Core Ultra processor, integrating three types of computational engines — CPU, GPU, and NPU (collectively known as XPU) — for various AI tasks. Yu hinted at an upcoming next-generation AI PC processor based on the Lunar Lake architecture, promising even more powerful AI functionalities.

Since Chinese game developer miHoYo released Zenless Zone Zero, a new action role-playing game (RPG) populated with rogue-like elements last Thursday, the reviews from Chinese players have been mixed. Online communities have seen comments praising its combat mechanics and visual design, but others saying the game is somewhat unengaging. 

As the developer of hit game Genshin Impact and Honkai: Star Rail, miHoYo has caused a stir in the domestic gaming industry with this new release. Less than three days after the game became available to the public, the Shanghai-based firm announced that global downloads had surpassed 50 million, thanking players by distributing in-game rewards.

The free-to-download game is available on Windows, iOS, Android and PlayStation 5, with future versions planned to launch on Switch and Xbox, though there are no confirmed release dates for the latter.

We spent eight hours playing the game to give readers a comprehensive review.

Game background

In the environs of a post-apocalyptic metropolis called New Eridu, the last humans to exist live in a place called Hollows, where monsters roam. New Eridu thrives by extracting resources from Hollows, leading to conflict between monopolistic enterprises, gangs, and conspirators. Players take on the role of a Proxy, a group that links the Hollows and New Eridu.

As players progress in the Hollows, the Proxy recruits new members to their party as they continue to fight the roaming monsters. By combining the abilities of different members in the game, players can cause greater damage and have greater impact on their enemies.

Beautiful visuals and hard-hitting music

Zenless Zone Zero’s visual effects and camera movements are smooth, and the story animations are fluid, in a similar style to Japanese manga.

The game simplifies action elements, making it easy for beginners to pick up, while containing many intricate details for veteran players to master. It employs a three-character team for diverse combat strategies, an intriguing choice when first playing. Players can switch to another character during the battles for an enhanced hitting score, if they seize the right moment.

The game’s visual design has gathered widespread acclaim, especially for its stylized street fashion. Character design and game scene details are so rich I would give them a score above 9 out of ten. The music and sound effects are also fantastic, with high-quality music featuring electronic melodies and high-BPM (Beats Per Minute).

Plodding storylines and mediocre gacha animations

The storyline and dialogue of Zenless Zone Zero occasionally prompted me to speed through them, and may be more appealing to younger players. Meanwhile, the hitting impact sensation during battles is better on a PC, leaving plenty of room for improvement on the mobile version.

Gacha refers to a game mechanic whereby players spend virtual currency (in-game purchases) to receive random in-game items or characters, similar to toy vending machines, often seen in miHoYo’s mobile games. This is a gacha animation screenshot:

The gacha animations in this game are mediocre, and come nowhere near those of Genshin Impact, a game the tester played for two years. Additionally, compared to Genshin Impact, the character pool isn’t very appealing, and there were no characters I felt compelled to invest in.

The tester spent four hours experiencing the game on both mobile and PC. Currently, the variety of monsters in battles is rather limited, which could stifle extended play.

As the game is essentially a gacha pay-to-win system, and due to limited testing time, it could be that we’re yet to uncover its full complexity. However, from a beginner’s perspective, the overall gaming experience falls short of that of Genshin Impact.

Pros: 

• Unique combat experience
• Smooth artistic visuals
• Beginner-friendly mechanics
• Acclaimed music

Cons: 

• Bland storyline and dialogue
• Mediocre hitting sensation on mobile devices
• Characters and gacha animations less appealing than Genshin Impact
• Limited monster variety in battles

Conclusion:

Zenless Zone Zero shows great potential but needs further improvements to captivate players long-term. It doesn’t quite measure up to Genshin Impact, especially in the gacha mechanics, a crucial area that has earned billions of dollars worldwide for the company through its other hit titles.

The game’s greatest strength is its art design, making it satisfactory as a mobile game. However, given four years of development and the success of Genshin Impact, miHoYo was expected to deliver a better game. The current version falls short of our expectations.

“Hello, I will arrange the bread and fruit separately.” Upon hearing the command from the host, the humanoid robot Qinglong extended its arms and gently picked up a piece of soft bread with its steel fingers, placing it down into the basket on the table. 

At the World Artificial Intelligence Conference (WAIC) 2024 in Shanghai, one of the most influential AI events within the global tech ecosystem, the National Local Joint Humanoid Robot Innovation Center on Thursday unveiled the open-source general-purpose humanoid robot Qinglong for the first time. The event marks the debut of China’s first full-sized general-purpose humanoid robot model, along with the release of its related open-source technologies.

Why it matters: The unveiling of Qinglong marks China’s entry into the advanced field of full-sized general-purpose humanoid robots. Its open-source initiative is intended to accelerate innovation, collaboration, and development within the global robotics and AI communities, potentially driving advancements in a range of industries.

Details: During the Summit on Humanoid Robots and Embodied Intelligence Development Forum at WAIC 2024, the National Local Joint Humanoid Robot Innovation Center demonstrated Qinglong’s operation and design concepts on site.

• Qinglong has been independently developed by Humanoid Robots (Shanghai) Limited, a new R&D institution established by leading industry enterprises with a registered capital of one billion RMB ($140 million). The company was designated as the National Local Joint Humanoid Robot Innovation Center by the Ministry of Industry and Information Technology of China in May 2024.
• Qinglong stands at 185cm tall and weighs 80kg, according to the company. It features a highly bionic torso and anthropomorphic motion control, supporting multi-modal mobility, perception, interaction, and manipulation. With 43 active degrees of freedom, Qinglong achieved a maximum joint peak torque of 400 N·m (Newton-meters) and 400 TOPs (Tera Operations Per Second) of computational power.
• The humanoid robot combines mobile lower limbs for agile walking with lightweight, high-precision upper limbs for operations, the on-site presentation stated. The company claimed that the model supports rapid walking, agile obstacle avoidance, stable incline and decline movement, and resistance to impact interference, making it an ideal platform for developing general artificial intelligence software and hardware.
• “In the Year of the Dragon this year, we named our humanoid robot Qinglong [meaning green dragon in Chinese] and initiated an open-source community for humanoid robotics,” said Jiang Lei, Chief Scientist of the National Local Joint Humanoid Robot Innovation Center. “Through open-sourcing, our goal is to introduce a new humanoid robot model annually, each named after one of the Chinese zodiac animals, to foster a humanoid robot innovation community unique to China,” he announced at the forum.
• Jiang also announced the launch of the OpenLoong open-source community website, developed by the Innovation Center. The website includes the release of the robot’s hardware structure and parameters, with the embodied intelligence software package set to be open-sourced soon.

Context: On the same day, Tesla debuted its second-generation humanoid robot Optimus at the Shanghai World Expo Exhibition Hall during WAIC 2024. According to Tesla booth staff, compared with the first generation, Optimus has improved its walking speed by 30% while maintaining upright posture. Its fingers have also evolved to perform delicate tasks such as gripping eggs and handling heavy objects.

• Tesla plans to start limited production of humanoid robots next year, with over 1,000 Optimus units expected to assist in production tasks at Tesla factories, according to CEO Elon Musk.

Plants vs. Zombies Hybrid Edition, a remastered version of the classic tower defense video game published by the American company PopCap Games, went viral in China in June, 15 years after its first release. 

The creator of the Hybrid Edition is blogger Submarine Weiweimi (our translation of 潜艇伟伟迷 in Chinese) who posts on Chinese video platform Bilibili. Chinese netizens nicknamed him Cyber Mendel (father of modern genetics) because of the unique appearances and intriguing abilities he has given the plants and zombies in the new version.

Why it matters: The Hybrid Edition entices users with nostalgia and innovative gameplay, blending classic elements with new twists. In June, China’s live-stream gaming channels were flooded with images of vibrant landscapes and intense plant-based explosives.

Details: Submarine Weiweimi chose not to market this Hybrid Edition as a commercial product but aimed to provide a free gaming experience for players in China. The free strategy brought more players to the game, increasing its influence and popularity in China.

• The Hybrid Edition combines different creatures from the game Plants vs. Zombies, creating new species with dual-layered abilities. For instance, in the original game, Peashooter attacks zombies, and Sunflower produces the sunlight needed to make more plants. In the Hybrid Edition, these two are combined as Peashooter-Sunflower, which can produce sunlight and shoot pea bombs at the same time.
• Players can easily grasp the game with minimal effort to enjoy the thrill of gameplay, as both plants and zombies have multiplied their attack power several times through hybridization, compared to the original version.
• In the past month, Submarine Weiweimi’s Douyin (Chinese Edition of TikTok) account gained 1.47 million followers, while its Bilibili account attracted over 2.45 million followers, making it one of the fastest-growing and most popular KOLs (key opinion leaders) in China, according to market intelligence platform NewRank.
• As of writing, Submarine Weiweimi’s Bilibili account has 3.97 million followers, 18.69 million likes, and 4.3 billion views. On Bilibili, the influencer released a video responding to the popularity of the Hybrid Edition, stating that he had no grand ambitions but is simply trying to make up for the regrets of his childhood. As a member of the post-2000 generation, he has been deeply attached to the game Plants vs. Zombies since childhood, he said. He created the Hybrid Edition to improve on the original game’s components, he added.
• The official Bilibili account for Plants vs. Zombies announced last week that the third-party modified work Plants vs. Zombies Hybrid Edition has been integrated into its mini-program, allowing players to experience it in the game’s creative mode, according to local media outlet IThome.

Context: On November 20, 2023, Submarine Weiweimi released the first video of the Plants vs. Zombies Hybrid Edition series titled Hybrid Plants on Bilibili. Subsequent videos in the Hybrid Plants series have continued to gain video views, with enthusiastic fans actively engaging in the comments section, sharing creative ideas and suggestions to support the game.

• On March 27, the blogger released the downloadable files for the self-developed game Hybrid Edition 1.0 for free. On June 13, the Hybrid Edition version 2.1 was launched.

Chinese tech giant Huawei opened the Huawei Developer Conference (HDC) 2024 in the city of Dongguan in southern China on June 21, by launching the new Beta version HarmonyOS NEXT, an all-scenario operating system for developers. The HarmonyOS ecosystem covers a diverse range of products including smartphones, smart wearables, tablets, headphones, smart driving vehicles, and smart home solutions.

“HarmonyOS NEXT is a fully self-developed, independently controllable operating system originating from China,” said Yu Chengdong, Huawei’s Consumer business group chair, at the event.

Why it matters: HarmonyOS NEXT is entirely independent of Google’s Android system. The kernel of HarmonyOS NEXT, the most critical part of the operating system, has cut its ties with  the Linux system altogether, the company professed.

Details: HarmonyOS NEXT Beta version has been promoted to developers since June 21 and will be released to consumers in August, according to Huawei. 

• Yu announced that the upcoming flagship smartphone Huawei Mate70 series will be the first device to come with HarmonyOS NEXT pre-installed in the third quarter, while the firm’s other smart devices are expected to come loaded with HarmonyOS NEXT version in the fourth quarter.
• HarmonyOS, released in August 2019, has undergone four generations of development. Currently, the Harmony ecosystem includes over 900 million devices, with 2.54 million developers actively contributing to its development, Huawei claimed. Additionally, the monthly volume of API (Application Programming Interface) calls for application development has reached 82.7 billion, the company said.
• HarmonyOS NEXT needs to strengthen its native app ecosystem due to the discontinuation of support for Android applications. HarmonyOS native applications have entered a full-scale sprint phase, with over 1,500 apps launched and 5,000 apps under development. 

Context: Huawei developed its own operating system, HarmonyOS, due to US sanctions restricting its access to Google’s Android that took hold in 2019. This move aimed to ensure independence and provide a viable alternative for its global smartphone market.

• In the first quarter of 2024, Huawei’s HarmonyOS surpassed Apple’s iOS, becoming the second largest operating system in the Chinese market after the Android system, according to market research firm Counterpoint Research. HarmonyOS’s market share in China has risen from 8% in the first quarter of 2023 to 17% in the same period of 2024, while iOS’s share decreased from 20% to 16%, the report said.

Level Infinite, the overseas gaming distribution arm of Tencent Games, announced on Thursday that it has launched a global version of its hit mobile game Honor of Kings in a swathe of new international markets including Japan, South Korea, North America, and Europe.

Level Infinite stated that Honor of Kings has now established a global service network and supports 14 languages to enhance the gaming experience for players around the world.

Why it matters: The most profitable title from Tencent Games, Honor of Kings is already the world’s biggest multiplayer online battle arena (MOBA) game according to the company, with a global launch somewhat overdue. Honor of Kings maintains a daily active user base of 100 million, the company said.

Details: TiMi Studio, a subsidiary of Tencent Games, originally released Honor of Kings in China in 2015. The latest development means it is now available globally in more than 160 countries. 

• Honor of Kings is a competitive MOBA title where players choose from a diverse line of heroes, each with unique skills, to engage in strategic team battles. To celebrate the global release, the game introduced Lu Yana, a new hero exclusive to the global edition. Currently, a total of 85 characters, of which 28 are free to use, are available to global players.
• The design inspiration for Lu Yana comes from the mysterious Latin American legend of Boitata, according to the game team. The first region-themed exclusive hero was born after in-depth discussions with local gaming experts, they added. Boitata is a mythical creature from Brazilian folklore, often depicted as a giant serpent or dragon that emerges from bonfires and protects the forests.
• At time of writing, Honor of Kings topped the free-download game chart in 10 countries or regions, securing a spot in the top 10 of 25 countries’ free-download gaming charts, local gaming media outlet GameLook reported today. The ten countries or regions where it tops the charts are Canada, the Philippines, Brunei, Myanmar, Singapore, Cambodia, Malaysia, Indonesia, Bolivia, and Bermuda. Additionally, in terms of free-download mobile games, the game ranked second in the US, fourth in Japan, and eleventh in South Korea.
• Tencent Games has deployed dedicated servers in every country or region to ensure low latency and optimal game performance, the same GameLook report revealed. Due to regulatory constraints, Honor of Kings cannot achieve global cross-server play between Chinese and global versions. However, Chinese players can authorize migration of their data when logging into the global version.

Context: In the first quarter, Tencent’s revenue from the overseas gaming market increased by 3% year-on-year to RMB 13.6 billion ($1.88 billion), while revenue from the domestic gaming market decreased by 2% year-on-year to RMB 34.5 billion ($4.77 billion). 

• In 2023, Honor of Kings reached nearly $1.48 billion in in-game revenue, making it the highest-grossing mobile game of the year for Tencent Games, according to market intelligence firm AppMagic.

Chinese developer Game Science last week invited a group of domestic gaming media outlets and veteran gamers to attend an offline demo event of its upcoming game Black Myth: Wukong, a highly-anticipated self-developed AAA game which has captured widespread attention in China this summer – even before it’s launched.

On Monday, local media released their evaluations of the new title, which is loosely based on the Monkey King character from Journey to the West, and gave their assessments of the game’s visual quality, artistic details, and playability.

Why it matters: As China’s first AAA title in recent years, Black Myth: Wukong is eagerly anticipated among Chinese gamers, with the hype continuing to build toward the game’s global launch on August 20. Major Chinese game companies such as Tencent and NetEase rarely develop single-player PC games due to high development costs and risks associated with return on investment, giving this title extra importance.

Details: The demo of Black Myth: Wukong lasted for two and a half hours. Several domestic gaming media outlets and players shared their impressions of the demo on various social media platforms in the aftermath.

• An action-adventure game based on the classic Chinese literary work Journey to the West, Black Myth: Wukong showcases a rich mythological aesthetic through its art, according to most media feedback. “It’s stunningly gorgeous, the animations are incredibly fluid, it’s steeped in rich Chinese culture, and there’s just something immensely satisfying about playing as a Monkey King and beating up all sorts of mythical creatures with a giant extendable staff,” wrote Mitchell Saltzman, editor of American video game media outlet IGN.
• Each battle is unique throughout the two and a half hours of gameplay, according to local gaming media outlet Youxi Putao. Each boss exhibits distinctive combat styles and tactics, including the Sword Wolf Leader, Spirit Master, and Black Bear Spirit. “Some bosses wield their skills with flair, showing off their prowess with full force. Others may seem simple-minded but excel in using underhanded tactics. Coupled with well-tuned game mechanics that vary spells and abilities, players can enjoy a diverse experience in boss battles,” said the editor from Youxi Putao (our translation).
• However, the game’s main thrill lies in its intense, high-quality boss battles, overshadowing the relatively mundane and unexciting content found between them within a short two-hour gameplay trial, the same Youxi Putao report claimed. 
• “While there are side paths, they frequently lead to dead ends or loop back to the main route. These paths include mobs, item materials, and elite monsters, but the combat lacks diversity and challenge. The absence of unique terrains, traps, or mechanics contributes to a bored monster-clearing experience. Additionally, the rewards are generally underwhelming, making it less appealing to engage with these mobs later on,” the editor from Youxi Putao wrote.
• On Bilibili – a popular Chinese video sharing platform themed around anime, manga, and gaming culture – on Monday, veteran gamers posted trial play videos and commentaries that quickly earned hundreds of thousands of views. The videos show that the combat system of Black Myth: Wukong emphasizes fast-paced and agile battles, particularly highlighting evasion and jumping. 

Context: An AAA game is a high-budget video game developed by major studios, known for advanced graphics, complex gameplay, and extensive marketing. These games involve large teams, long development cycles, and aim to deliver great gaming experiences with broad industry impact and high sales expectations.

• The physical deluxe and collector’s editions of Black Myth: Wukong for PC are priced at RMB 820 ($113) and RMB 1,998 ($276) respectively. In China, the deluxe edition was limited to 20,000 sets at the first round of pre-sales, while the collector’s edition was limited to 10,000 sets. Pre-sales for these editions began on June 10 and June 17, with both selling out in less than a minute. Reservations on the e-commerce platform JD exceeded one million for both rounds of pre-sales. Currently, it is unknown whether Game Science will start a third round of pre-sales for the game.

The demand for advanced process chips has surged, as AI servers and high-performance computing (HPC) applications transition to AI phones. Taiwanese media outlet Economic Daily News reported on Tuesday that Apple, Qualcomm, Nvidia, and AMD have almost booked TSMC’s 3nm process to full capacity, leading to a queue of customers extending to 2026.

Why it matters: The rapid evolution of AI technology across multiple sectors has driven a surge in demand for advanced process chips. Increasing orders from major clients is expected to further push TSMC to innovate and develop advanced manufacturing processes. 

Details: Currently, TSMC’s 3nm lineup includes N3, N3E, N3P, N3X, and N3A, according to the Economic Daily News report.

• N3E, which entered mass production in the fourth quarter of last year, primarily serves AI accelerators, high-end smartphones, and data centers. N3P is expected to enter mass production in the latter half of this year and will become the preferred chip process for mainstream applications including mobile devices, consumer electronic products, base stations, and networking by 2026. N3X and N3A are designed for customized demands such as high-performance computing and automotive clients.
• The latest high-end chips this year are all adopting the 3nm process, according to Chinese media outlet Icsmart. Apple will introduce the M4 series processors this year and is set to release the next-gen A18 series processors for its new iPhone16 series this September. Later this year, Qualcomm will launch its flagship mobile platform Snapdragon 8 Gen 4, while Nvidia is set to unveil the RTX 50 series graphics cards. AMD will release the fifth-gen EPYC Turin processors in the second half of the year, with plans to launch the MI350 series next year.
• TSMC, as the exclusive supplier of Apple’s A-series processors for the new iPhones, will see a significant increase in demand for related 3nm orders. Apple’s iPhone 16 series this year is expected to increase sales volume by 5% year-over-year to 92-95 million units, the Economic Daily News report forecasted.
• To ensure stable supply over the next two years, TSMC’s strategy is to convert some of its 5nm equipment to support 3nm production. Industry sources indicate that TSMC is likely to up its production of 3nm wafers to between 120,000 and 180,000 a month.

Context:The total production value of the top ten semiconductor foundries in the first quarter reached $29.2 billion, a decrease of 4.3% compared to the previous quarter, according to market research firm TrendForce.

• In the first quarter, TSMC led with a revenue of $18.85 billion and a market share of 61.7%, followed by Samsung with $3.36 billion and an 11% market share. Shanghai-based chip foundry SMIC took third place with $1.75 billion in revenue and a 5.7% market share.

On Thursday, World of Warcraft announced on Chinese social media platform Weibo that a deletion-based technical test for the Chinese server will begin on June 11, in preparation for the upcoming server launch of the expansion set Wrath of the Lich King. The team also promised players an official China launch later in June.

Why it matters: June 6 marked 500 days since Blizzard’s servers went offline in China and 57 days since NetEase Games announced that a deal had been done to secure their return. Chinese gamers are eagerly following the latest updates on the return of Blizzard games to the mainland China market.

Details: The technical test for World of Warcraft’s domestic servers will last for seven days, with the final launch of the official servers still requiring some time, according to the announcement.

• To celebrate this moment, World of Warcraft’s China team has prepared two rewards for gamers participating in the test: a unique commemorative online pet and an exclusive achievement badge for the Chinese servers.
• On Weibo, some veteran players questioned the need for testing a hit game that has been around for over a decade, while others got emotional at the sight of the login interface of World of Warcraft. Furthermore, many players are urging the prompt return of other popular Blizzard games such as the digital collectible card game Hearthstone and the multiplayer first-person shooter title Overwatch.
• The pressure on servers for relaunching World of Warcraft might surpass that of new game launches, the team said in the announcement. Many players prefer returning to their original servers rather than joining new ones based on server loads. This server preference could result in login pressures on certain servers far surpassing the norm, potentially exceeding the server pressures during the initial launch of a new game, the team explained.
• Testing is also needed for new technology and server capacity expansion, according to the NetEase and Blizzard teams. “Over the past year, the server backend has undergone multiple updates, with new technologies planned for implementation in the future. These upgrades require further debugging in high-pressure environments to ensure smooth operation in the new environment,” the announcement added.

Context: On April 10, China’s NetEase and its US games partner Microsoft announced that they aimed to bring popular Blizzard titles back to China after the former’s falling out with the developer that ended an almost 15-year partnership. The two companies are now working to bring online games from Blizzard Entertainment, a subsidiary of Activision Blizzard which Microsoft bought last year, back to China, starting this summer. 

• NetEase was the publisher of Blizzard games in China from 2008 to 2023.

Two authors behind a Stanford University AI project have apologized to the Chinese team behind open-source AI model MiniCPM-Llama3-V 2.5 after social media users in China outed the former for having plagiarized the latter model, which was developed by Tsinghua University and ModelBest Inc. The incident sparked widespread discussion on the Chinese internet.

Two authors of the Stanford Llama3-V team, Siddharth Sharma and Aksh Garg, today apologized to the MiniCPM team on social media site X for their academic misconduct, announcing they would withdraw the Llama3-V model from use.

Why it matters: Members of the Stanford team acknowledged they had plagiarized Tsinghua University and ModelBest Inc’s work. 

Details: “We sincerely apologize to the authors of MiniCPM for our failure to verify the originality of Llama3-V,” Aksh and Siddharth wrote on X today. “Mustafa, who wrote the code, described exciting extensions that we promoted without knowing about the prior work by OpenBMB (founded by Tsinghua University and ModelBest Inc). We take full responsibility for this oversight. We’ve removed all references to Llama3-V in respect to the original authors.” 

• On May 29, a Stanford AI team claimed online that they could train a multi-modal large model surpassing GPT-4V for only $500, according to local media outlet Quantum Bit. Subsequently, social media users discovered that the team’s Llama3-V model used a model structure and code highly similar to ModelBest’s MiniCPM-Llama3-V2.5, with partial variable name modifications. Llama3-V also features the same tokenizer as MiniCPM-Llama3-V 2.5, including the latter’s newly defined special symbols.
• On June 2, Chinese firm ModelBest Inc confirmed that the Stanford large model project Llama3-V, similar to MiniCPM, is able to identify Qinghua Jian ancient Chinese characters from China’s Warring States Period. Remarkably, the matches also shared identical mistakes. This character data, obtained by the research team through months of scanning and manual annotation of each Qinghua Jian character, had not been publicly disclosed, confirming the act of plagiarism.
• “While it’s good to be recognized by international teams, we believe in building a community that’s open, cooperative, and trustworthy,” ModelBest Inc CEO Li Dahai stated. “We want our team’s work to be noticed and respected, but not in this manner.”
• ModelBest Inc’s chief scientist, Liu Zhiyuan, who is also a tenured associate professor at Tsinghua University, told an Yicai reporter that the rapid development of artificial intelligence relies on the global sharing of algorithms, data, and models. “Two out of the three members of this Llama3-V team are merely undergraduate students at Stanford University, and they have a long journey ahead. If they can acknowledge their mistakes and make amends, it would be a great virtue,” he said.
• Christopher David Manning, the director of the Stanford AI Laboratory, also issued a statement condemning the act of plagiarism and praising the Chinese open-source model MiniCPM.

Context: Founded in August 2022, ModelBest Inc secured a new round of financing worth hundreds of millions of RMB in April. Huawei’s Hubble Technology Venture Capital led the investment, with participation from Chunhua Capital, Beijing Artificial Intelligence Industry Investment Fund, and Chinese Quora-like platform Zhihu. In February, ModelBest Inc launched the open-source model MiniCPM.

On Wednesday, Chinese PC maker Lenovo announced a strategic partnership with Alat, a subsidiary under Saudi Arabia’s Public Investment Fund (PIF) focused on transformative technology investments and sustainable manufacturing, with Alat proposing a $2 billion zero coupon convertible bonds investment in Lenovo. 

Lenovo will establish its Middle East and Africa (MEA) regional headquarters in Riyadh, the capital of Saudi Arabia, which will include a customer center and R&D center for the region. The company will also build a new manufacturing base for personal computers and servers in Saudi Arabia.

Why it matters: As a wholly-owned subsidiary of PIF, Alat aims to leverage this collaboration to drive industrial transformation in Saudi Arabia, positioning the country as a world-class hub for sustainable technology manufacturing. Lenovo will look to increase its presence in the MEA region via the partnership.

Details: Lenovo will issue $2 billion in convertible bonds to Alat, using the proceeds to repay debts and for corporate purposes, according to the announcement. 

• The bonds mature in three years and can be converted to equity at HK$10.42 ($1.33) per share, a 10% premium over the 30-day average VWAP (Volume Weighted Average Price). Issuance is contingent on Lenovo shareholder and regulatory approvals. Currently, Lenovo has approved a proposal to issue 1,150,000,000 warrants at a price of HK$1.43 ($0.18) per warrant, according to the statement.
• PIF, a sovereign wealth fund, manages assets exceeding $700 billion, according to Lenovo. The agreement between the two parties stated that Alat will have the authority to nominate a non-executive director candidate to join Lenovo Group’s board of directors through the customary director appointment procedures of Hong Kong.
• “Through this powerful strategic collaboration, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalizing on the incredible growth momentum in the MEA region,” said Lenovo CEO Yuanqing Yang.
• “As Lenovo establishes its regional headquarters in Riyadh and a clean energy manufacturing base in Saudi Arabia, we expect its growth to accelerate in the MEA region,” said Alat CEO Amit Midha.

Context: In the first quarter, global PC shipments increased around 3% year-on-year to reach 57.1 million units after eight consecutive quarters of decline, according to market research firm Counterpoint Research. Lenovo secured the leading position in the global market with a 24% share, reaching 13.7 million units, up by 8% year-on-year.

• The market intelligence firm IDC predicts that the IT and business services market in the MEA region is expected to reach nearly $38 billion in 2027, driven by the continuous increase in large-scale projects and rapid economic development in the region.

For the first time, BEYOND EXPO organizers hosted the SheTech Summit this year to celebrate the dynamism of women in technology. The panel brought together women leaders, showcased groundbreaking tech innovations, and prompted conversations on gender diversity in the tech industry.

We highlight key takeaways from three panel discussions where successful female leaders shared their insights and experiences.

Panel 1: The advantages of women leadership in tech and innovative companies

Michelle Chen, co-founder and CEO of Biosyngen, leads the company’s operational oversight, strategic direction, process optimization, government interactions, financial strategy, and investment discussions. With extensive expertise in corporate management, finance, and biopharmaceutical negotiations, Chen has co-established two prominent biotech ventures and amassed 17 years of leadership in Fortune 500 enterprises.

“As for advantages of female traits in the workplace, it’s important to categorize different aspects of rationality,” Chen said. “For instance, when it comes to self-motivation and the desire to engage in meaningful pursuits, women may have a broader focus, especially in the context of running a company. They tend to be more empathetic and attuned to the feelings of their employees.” 

Chen said that showing empathy and sensitivity toward employees has contributed to minimal turnover in her tech-driven pharmaceutical company and fostered loyalty and long-term commitment. She added that a predominantly female executive team has allowed Biosyngen to enhance the collective ability to observe and interpret subtle cues involving employee well-being, ensuring sustained success, and organizational vitality. 

“Let’s not overly emphasize gender equality or favoritism — everyone deserves equal opportunities,” Chen said. “Whether in AI, technology, or life sciences, passion drives individuals to pursue meaningful endeavors. Women, like everyone else, aspire to contribute meaningfully. It’s about embracing opportunities in industries one is passionate about and applying learned skills. Simplify your approach, adapt to circumstances, and seize opportunities as they come.”

Panel 2: Gender Lens Investing: How Women Shape the Future of the World?

Lu Zhang, founder and managing partner of Fusion Fund, is a Silicon Valley investor and alumna of Stanford University School of Engineering. With expertise in AI in healthcare, enterprise AI/networks, edge computing, and data privacy, she has built a distinguished ecosystem. 

Before Fusion Fund, Zhang was a serial entrepreneur and materials science researcher. She has been bestowed with various recognitions, including Young Global Leader by the World Economic Forum, Silicon Valley Women of Influence, and Forbes 30 under 30 VC honoree.

Zhang said that Asian cultures usually stereotype girls as being “obedient and likable.” However, she said that leadership roles entail making tough decisions, inevitably leading to some disapproval.

“Women must embrace this reality: is it more crucial to be liked or respected? As an entrepreneur and leader, earning respect is paramount,” Zhang said. “Ultimately, admiration and even reverence will follow, creating a powerful force.” 

During the session, Zhang mentioned an intriguing perspective on the subconscious advantages of women. She said that a woman’s strong intuition “stems from potent subconscious information processing.”  

“Over 90% of decisions are subconscious, yet we struggle to rationalize how it captures and computes data,” she said. “Besides computational power, women’s heightened awareness, driven by deep-seated insecurities, leads to heightened data capture. For instance, when walking alone at 2 a.m., women are more alert, consciously collecting data on their surroundings. Conversely, men might overlook potential dangers due to a perceived sense of safety.” 

Tina Tao, president and partner at Sinovation Ventures, oversees daily operations and professional services, including fundraising, finance, and business development. With previous work experience at Microsoft, IBM, and Google, she manages the incubation function at the Al Institute of Sinovation Ventures. 

Founded in 2009 by Kai-Fu Lee, Sinovation Ventures manages over $2 billion in Assets Under Management across various technology sectors. 

“Thirty years ago, we started with only a few female students, and now we’ve reached a significant proportion,” Tao said. “Reflecting on the presence of female university students, which has existed for just over a century, it’s remarkable how women have become a dominant force in education. In the past hundred years, from the first female university student to today, women have nearly become half the student population. Compared to the thousands of years of human civilization history, this rate of progress is incredibly rapid, even remarkably fast.” 

Dialogue with Olympian DENG Yaping

Table tennis icon Deng Yaping has clinched 18 world championships, including four Olympic golds, in her stellar 14-year career. With a record for the longest reigning top-ranked female table tennis player in the world, spanning eight years from 1991, her dominance in the sport is unmatched. 

Post-retirement, Deng pursued academic excellence, earning undergraduate, postgraduate, and doctoral degrees from Tsinghua University, the University of Nottingham, and the University of Cambridge, respectively.

During the conversation, Deng reflected on the perception gap between her public and private persona. While renowned for her athletic prowess and post-career contributions to sports development, she said she is approachable and gentle, contrary to the fierce demeanor often perceived on the table tennis court. 

Deng attributes her success to early challenges and perseverance, highlighting the crucial role of her father’s encouragement amid initial setbacks. She said that failure — including losing a critical match — taught her invaluable lessons in preparation and resilience. 

Speaking on the investment in the sports industry, Deng emphasized China’s sports marketing landscape was evolving and she seeks to promote Chinese brands globally through events like the Beijing Olympics. 

Deng said one of the most common questions she receives is: “Why are Chinese female athletes so strong?”

“Traditional Chinese culture plays a significant role,” Deng said. “Despite centuries of restrictions and oppression, it instilled resilience in women. Through the teachings of grandmothers and mothers, Chinese women learn to endure hardship and persevere, both at home and in society. Talent aside, the key factor in athletic success is grit. Chinese female athletes exhibit remarkable training intensity and exceptional endurance, reflecting their formidable willpower.” 

Business leaders at the Middle East Oasis Forum of BEYOND EXPO 2024 shared valuable insights on combining creativity and strategic confidence, highlighting their experiences in accelerating sustainable development and robust economic progress in the region. 

The panelists at the “Confidence with Imagination” included host Andre Kwok, founder of Good City Foundation and chief of staff at Tsangs Group, along with Jackson Zhang, the assistant to the chairman and manager of International Affairs at DeepRock Group and Biosphere 3, and Yamin Xu, dean of Tomorrow.City Institute at the Smart City Expo World Congress.

Navigating Middle Eastern markets with confidence and humility

There has been a significant shift in mindset among Chinese entrepreneurs over the years, Xu said.

Historically, Chinese business leaders admired Western companies and focused primarily on American and European markets. However, with China’s rise and the success of its infrastructure development strategies like the Belt and Road Initiative, Chinese entrepreneurs have found new confidence in doing business globally. 

Xu noted that while this confidence is beneficial, it sometimes borders on arrogance. He said entrepreneurs need to adopt a “more mature and balanced worldview, recognizing the importance of understanding local histories, cultures, and economic contexts when expanding into new markets.”

Xu also expressed optimism about the younger generation of Chinese entrepreneurs, adding that they are better equipped to navigate the complexities of the global business landscape due to their broader experiences and open-mindedness. 

However, he cautioned other entrepreneurs to be alert to global changes and avoid harboring outdated mindsets. Xu concluded that a successful global expansion not just requires confidence but also understanding and respecting diverse markets and cultures. 

“In the journey of Middle East expansion, humility and respect are our guiding lights,” Xu said. “With a balanced worldview and openness to diverse cultures, we forge connections that transcend borders, ensuring enduring success and mutual prosperity.” 

Embracing confidence for Middle Eastern ventures

Zhang said Chinese companies expanding globally should strategize integrating resources to form corporate communities for better handling challenges in foreign markets. He highlighted that DeepRock Group leverages its experience in green building and energy management to upgrade and transform local regions.

Zhang added that Chinese enterprises venturing into international markets must be confident in their global expansion, adding that companies should thoroughly prepare and understand their target market’s cultural nuances and business environment. 

To illustrate his point, Zhang shared examples, including DeepRock Group’s involvement in the Masdar City project in the United Arab Emirates. He said he has noticed the evolving mindset of Chinese entrepreneurs and the shift toward a more global outlook.

However, Zhang also urged investors to be wary of the socio-political events of countries in the region — while Egypt is currently under military rule and faces political challenges, Libya, endowed with abundant oil resources and high per capita income, flourished during the era of Gaddafi, and Iran, a densely populated country with a high level of education, has high unemployment rates. 

“Although my understanding of these three countries is limited, I believe Iran maintains a positive attitude toward investment from China,” he said.

Zhang reiterated that as investors embark on their Middle East ventures, they should “harness the power of confidence tempered with cultural sensitivity.”

“By understanding local nuances and embracing diversity, we pave the way for meaningful collaboration and sustainable growth in international markets,” Zhang said.

On Friday, BEYOND EXPO organizers invited a group of distinguished entrepreneurs for the Asia-Latam Tech Forum, aiming to explore opportunities for collaboration in business and technology, while promoting cultural exchange and understanding between Asia and Latin America.

The Asia-Latam Tech Forum featured discussions on trade, investment, innovation, and ideas, providing a platform for stakeholders from both continents to explore avenues for growth and prosperity. 

Below are key insights from the three discussion panels held during the forum. 

Panel 1: Latam: The next hotbed of venture capital investments

William Mimassi Pedroso is a partner at Monashees, an early-stage venture capital firm, where he has worked since 2020 and manages relations with the company’s limited partners globally. Pedroso has worked in various capacities, from law to CFO roles, in Brazil and China. He holds a law degree with honors from the University of São Paulo, with proficiency in multiple languages. 

Founded in 2005, Monashees is a renowned early-stage venture capital firm in Latin America. The company invests in innovative startups across various sectors, providing crucial support and resources for their growth and success. With a strong track record, Monashees is a leading player in the region’s vibrant startup ecosystem.

Pedroso expressed optimism about Latin America’s potential for growth in the venture capital sector, given the region’s favorable regulatory environment and increasing digitalization. He highlighted areas such as fintech and clean tech as particularly promising, noting the region’s natural resources and innovative potential. However, he acknowledged that the need for technical talent and English proficiency among developers remains a challenge. 

Pedroso said he sees Latin America as a burgeoning market with ample room for expansion, especially with the right investments and support.

Panel 2: Latam’s innovation ecosystem and collaboration opportunities with Asia

Ingrid Barth is a seasoned economist and entrepreneur with a background in finance, technology, and advocacy. Formerly with JPMorgan and Santander, she founded Linker, a pioneering digital bank for businesses, later acquired by Omie. Additionally, she holds influential roles in fintech regulation and startup development, including representing Brazil in G20 initiatives.

During the panel discussion, Barth spoke about effective communication methods in changing perceptions about Brazil’s business landscape. She advocated for highlighting Brazil’s strengths, such as its innovative potential and natural resources, to attract foreign investors and foster collaboration. 

Barth stressed the need for confidence in Brazil’s capabilities and encouraged entrepreneurs to seek the right local partners when entering the Brazilian market. She also underscored the significance of understanding cultural nuances and navigating regulatory frameworks. 

Barth admitted the role of public policies in shaping business environments and suggested learning from China’s dynamic ecosystem and strategic initiatives. Meanwhile, she called for a proactive approach to showcasing Brazil’s opportunities and fostering international partnerships for mutual growth.

Panel 3: Rising unicorns and IPOs in Latam

Eduardo L’Hotelier, a Brazilian computer engineering graduate, founded GetNinjas in 2011, growing it into Latin America’s largest service marketplace. He led multiple successful fundraising rounds with renowned firms like Monashees Capital and Tiger Global. In 2021, L’Hotelier took GetNinjas public on the Brazilian stock exchange (NINJ3) but sold his stake in the company in January 2023.

GetNinjas is a Brazilian online platform connecting clients with freelance professionals in various fields, including home services, events, classes, and more. The company has revolutionized how people find and hire services, simplifying the lives of millions of users in Brazil.

L’Hotelier attributed Latin America’s booming market to being fueled by its young demographic and tech adoption. He said Brazil’s robust social media usage offers ample opportunities for startups, adding businesses need to understand local laws and culture, while partnerships help to navigate the market. 

L’Hotelier also noted the growing interest from Asian investors in Latin American startups, particularly in Brazil. He said that Brazilian entrepreneurs demonstrate resilience despite bureaucratic hurdles, adding that there is a shift toward a global mindset with more startups eyeing international expansion.

L’Hotelier said the company wishes to help their global partners achieve similar results by leveraging their expertise and technological advancements.

Jason Ho, the Co-founder of BEYOND Expo, invited Jon Creyts, the CEO of Rocky Mountain Institute (RMI), to discuss the urgent need for global cooperation, investment, and innovative technology to address climate change on Wednesday at the BEYOND Expo 2024 opening ceremony.

Please find below the transcript of the opening day speech from Jon Creyts. The following transcript has been edited for clarity:

1. Jason: Looking ahead, what key policy changes or initiatives do you believe are essential for driving technology and the adoption of different solutions globally?

Jon: When we think about climate change, it impacts more than just the environment. This is about health, livelihoods, and thriving communities. When we think about SDGs (Sustainable Development Goals), they’re all interconnected. We have to address climate change in ways that enhance all aspects of society and tackle all the SDGs simultaneously.

We’ve talked a lot about EVs here. Certainly, when you look at a place like Delhi, the current health issues related to pollution are largely the result of vehicular traffic. Today, in Delhi, driving an EV costs only 1/4th of what it does to operate an internal combustion engine vehicle. However, the system isn’t set up to support that right now. You actually pay three times the interest rate on an electric vehicle compared to an internal combustion engine vehicle. However, if we make this transition, we can actually save significant amounts of money, minimizing local air pollution, and creating new economies and abilities to grow.

This is true not just in India but throughout the global South, like in Nigeria. If you switch to two- and three-wheeled electric vehicles, you wind up saving about $1,000 for one person over the eight-year lifetime of that vehicle. That’s a massive boost, almost half a year’s worth of pay in Nigeria that you’re saving, by shifting and embracing some of these new technologies.

2. Jason: How can we ensure climate tech innovations are accessible and affordable for people in need in these developing countries?

Jon: This is not just a challenge, this is an opportunity. When we think about it, the scale of the investment that is required here is approximately $100 trillion over the next 25 years. Right now, that investment is massively skewed when we look at the overall geography. For instance, the United States, as a country, invests about 60 times more than Africa as a continent. We have to rectify that, we have to shift and introduce some strategic interventions that effectively redirect capital flow within the system. 

That capital has to accomplish three major objectives. Firstly, there are carbon-intensive assets out there that cannot run to the end of their life cycle. We have to shut them down before they become economically viable as we can’t afford to release all that carbon into the atmosphere. We need to create mechanisms like carbon trading and other supportive measures to help support that transition. Initiatives like the Just Energy Transition partnerships in regions like Indonesia and Vietnam are currently helping to create some of the funds and financing mechanisms to support these countries in their transition efforts. 

We have to do two other things. We have to accelerate innovation, especially in hard-to-abate sectors such as steel, cement, aluminum, heavy freight, shipping, etc. These ideas are going to come from all over the world, and we need to ensure that there is alignment between venture capital, equity investment, and bank financing to support these innovations. 

Thirdly, we have to scale existing solutions. This is the area where significant reform needs to happen so that we can mitigate the risk associated with project pipelines, throughout the global south, where projects are necessary to enable leapfrogging, as Siddharth mentioned earlier, to achieve new economic paradigms. That has to be done through coordinated multilateral bank support to de-risk projects alongside private capital investment. This ensures initiatives like mini-grids, microgrids, solar energy, and electric vehicles are rapidly deployed in  the places that need them the most, which are the fastest-growing areas of the world requiring that support.

3. Jason: What role do you see for public and private partnerships in scaling up investment and developing climate tech solutions?

Jon: Public-private partnerships are at the core of how this whole energy transition needs to happen. When we think about scaling, I was here yesterday at the Southern China Hydrogen Energy Association, a group in Guangzhou, that is focused specifically on how to bring a hydrogen economy into being. For that to happen, you have to align research, you have to align capital, and you have to ultimately get whole sets of infrastructure to jump at the same time to a wholly different cost space. When you start doing that as a system, you end up actually creating the conditions for something new to thrive, grow, and compete.

That doesn’t happen on its own. It requires an independent nonprofit or a collaboration between the government, for-profit and civil society institutions to align all the different stakeholders. That’s true for hydrogen, that’s true if you want to realign the global aviation industry, and that’s true if you want to deal with global shipping. You need to get the industry, the customers, the financiers, and the policymakers together to build the ratchet mechanism that then allows everything to move just a little bit differently. And then, ultimately, you’re able to transform.

We’re seeing that happen in aviation and some of the leadership related to staffing. We’re seeing that happen in shipping and in some of the new work that the IMO is doing to move toward zero-carbon fuels. Going forward, we will be seeing that happen in steel. where you will see buyers aligning on different aspects of what exactly constitutes low carbon steel and how to certify it, track it, and trace it. These are all necessary impacts, but they are made easier when you actually have some coordination, and entities like the UN, and the South China Hydrogen Energy Association, are working to help bring about change in the whole system.

4. Jason: If you could have any superpower to combat climate change, what would it be?

Jon: Fossil fuels have gotten us to where we are today. But I wish I could just snap my fingers and have everybody forget and stop believing that they are the source of safety and security in the world. Because the truth is, when we look at where we are today, the conflicts, the concentration of wealth, the air pollution, the climate pollution that we’re seeing, fossil fuels are not serving us well anymore. In fact, when we look at renewable sources, wind and solar are the cheapest new forms of energy for 95% of the people on the planet.

When you start combining that with some of the innovations that are happening in batteries that we heard Robin (CATL CEO) talk about earlier, we can see our pathway to a much cleaner, more sustainable, and secure energy future. We can just let ourselves believe that it can happen and drive toward it, rather than believe that we have to constantly go back to  trusting that fossil fuels are more secure.

On Tuesday, Chinese tech giant Tencent released its earnings report for the first quarter of 2024, which ended on March 31. Tencent’s revenue from the international gaming market increased by 3% year-on-year to RMB 13.6 billion ($1.88 billion) during the period, while revenue from the domestic gaming market decreased by 2% year-on-year to RMB 34.5 billion ($4.77 billion). Tencent attributed the domestic year-on-year decline to the impact of deferred revenue.

Why it matters: Over reliance on older hits such as Honor of Kings and Peacekeeper Elite may have led Tencent Games to stagnation, reduced player engagement, and increased its vulnerability to competitors launching new, innovative games. The lack of new hit titles from Tencent may risk diminishing the firm’s long-term growth and revenue potential in a rapidly evolving gaming market.

Details: Tencent’s gaming revenue totaled RMB 48.1 billion ($6.66 billion) in the first three months of 2024, marking a 17.6% increase quarter-on-quarter and a 0.41% decrease year-on-year. A yearly revenue drop but a quarterly rise may signal seasonal trends and indicate the company’s recent improvement in performance despite broader market challenges, including intensified industry competition, economic instability, and declining consumer demand.

• “During the first quarter of 2024, several of our leading games in China and internationally started to benefit from team reorganizations we put in place,” Tencent CEO Ma Huateng said in the financial report, “resulting in an increase in games’ gross receipts and creating a foundation for our games revenue to resume growth in future quarters.”
• In the first quarter, Honor of Kings and Peacekeeper Elite, two of Tencent’s flagship games, experienced a year-on-year decline in revenue. Tencent blamed this on a high base from the Chinese New Year period last year for the former, and weaker commercial content in the second half of 2023 for the latter. However, both games saw a year-on-year revenue increase in March.
• During the quarter, several domestic games achieved their highest-ever gross totals, with titles such as Fight of the Golden Spatula, CrossFire Mobile, and Arena Breakout leading the way, according to the company. Recently released overseas games, including VALORANT and Lost Ark, both exhibited robust growth, the firm said.
• Supercell, a Finnish game development company that Tencent acquired in June 2016, experienced growth in both usage and gross receipts in the overseas gaming market during the reporting period. The multiplayer online battle arena shooter game Brawl Stars’ daily active users more than doubled compared to the previous year, while gross receipts more than quadrupled year-on-year internationally for the title.

Context: In the first quarter, Tencent’s total revenue reached RMB 159.5 billion ($22.08 billion), reflecting a 6% year-on-year increase, while adjusted net profit amounted to RMB 50.27 billion ($6.96 billion), showing a notable 54% year-on-year growth.

• In the first quarter of 2023, Tencent’s revenue from games reached RMB 48.3 billion ($6.9 billion), up 11% up year-on-year. Tencent’s domestic gaming revenue during the period rose 6% year-on-year to RMB 35.1 billion ($5 billion), while its overseas gaming revenue rose 25% to RMB 13.2 billion ($1.8 billion).

Shanghai-based chip foundry Semiconductor Manufacturing International Corporation (SMIC) on Thursday unveiled its first quarter financial results, revealing that the state-owned company achieved a revenue of $1.75 billion, representing a 19.7% year-on-year increase. This result marks the first time that SMIC surpassed both United Microelectronics Corporation (UMC) and GlobalFoundries in quarterly revenue, with the two Taiwan-based firms reporting revenues of $1.71 billion and $1.549 billion respectively for the same period.

The ranking does not include IDM (Integrated Device Manufacturer) companies such as Intel and Samsung.

Why it matters: Amid US sanctions on Chinese chip development, SMIC’s growth signals China’s efforts to strengthen its domestic semiconductor capabilities and reduce reliance on foreign suppliers.

Details: Its first quarter financial results place SMIC second among the world’s wafer foundries, albeit with a considerable gap to TSMC, which reported a revenue of $18.262 billion for the same period.

• In the first quarter, SMIC shipped 1.79 million units of 8-inch wafers, a 7% increase compared to the previous quarter. The company’s capacity utilization rate reached 80.8%, up by 4% quarter-on-quarter.
• Revenue distribution across chip-related business segments is as follows: smartphones account for 31.2%, computers and tablets for 17.5%, consumer electronics for 30.9%, IoT (Internet of Things) and wearables for 13.2%, and industrial and automotive for 7.2%. 
• Revenue from China makes up 81.6% of the firm’s total, while the US contributes 14.9%, and the EMEA (Europe, Middle East, and Africa) region accounts for 3.5%.
• However, SMIC’s net profit for the quarter plummeted by 68.9% compared to the previous year, to $71.8 million. The semiconductor industry as a whole witnessed a substantial decline in profits in early 2024 due to product price drops and inventory backlog, according to local media outlet Jiemian. SMIC told Jiemian that this net profit decline was primarily due to shifts in product assortment, depreciation, and diminished investment returns.
• SMIC CEO Zhao Haijun disclosed that the company received urgent orders from customers in the smartphone and computer sectors in the first quarter, the same Jiemian report said. Efforts are underway to coordinate orders from lower-priority customers for delayed processing, and the 12nm chip production line is almost at full capacity, Zhao said.

Context: Thanks to the AI-related needs of Nvidia and AMD, orders of TSMC’s advanced packaging capacity, including Chip-on-Wafer-on-Substrate (CoWoS) and System-on-Integrated-Chip (SoIC), have been fully booked for 2024 and 2025, according to an Economic Daily News report from last week. TSMC predicts a compound annual growth rate of 50% for AI chips over the next five years. By 2028, AI chip orders are expected to contribute over 20% to the company’s total revenue.

On Tuesday, MediaTek held the MediaTek Dimensity Developer Conference (MDDC) 2024 in Shenzhen, where the Taiwan-based semiconductor company unveiled its latest flagship 5G chipset, the Dimensity 9300+. With a theme of “AI Empowers Everything,” MDDC 2024 delved into the applications and advances in artificial intelligence technology across various domains, and the possibilities it brings to terminal devices.

Why it matters: MediaTek introduced the Dimensity 9300+ less than two months after the launch of Qualcomm’s Snapdragon 8s Gen 3. Amid slow growth in the smartphone industry, MediaTek is aggressively competing for Qualcomm’s market share of mobile chipsets. 

Details: The Dimensity 9300+ chipset and generative AI were the main highlights at MDDC 2024.

• The Dimensity 9300+ has adopted TSMC’s third-generation 4nm process technology, according to MediaTek. The new chip boasts big-core CPU architecture, housing an octa-core CPU comprising four Cortex-X4 ultra-large cores clocked at up to 3.4 GHz, and four Cortex-A720 large cores operating at 2.0 GHz.
• MediaTek claims that the full big-core CPU ensures low power consumption across varying application loads and enables smartphones to deliver sustained high performance over extended periods by combining high speed with energy efficiency.
• The Dimensity 9300+ supports on-device LoRA (Low-Rank Adaptation) Fusion and NeuroPilot LoRA Fusion 2.0 technology that allows developers to quickly introduce new generative AI applications with text, voice, imagery, and music, the company said. This translates to smartphones equipped with the Dimensity 9300+ chip offering enhanced AI functionalities.
• The flagship processor integrates a 2nd-gen hardware ray-tracing engine with an Arm Immortalis-G720 GPU, delivering 60 frames per second (FPS) ray-tracing and console-grade global illumination effects for gamers, according to the official website. MediaTek HyperEngine technologies further enhance the gaming experience, according to the company, with MediaTek Adaptive Gaming Technology optimizing power efficiency for longer battery life. Furthermore, HyperEngine’s Network Observation System improves dual-network concurrency and offers up to 10% power savings and 25% cellular data savings.
• During the event, MediaTek unveiled the Dimensity AI Pioneer Program for global developers, collaborating with industry partners such as Alibaba Cloud, Baichuan Intelligence, Transsion, Oppo, Honor, Vivo, and Xiaomi. The program aims to offer resources, technical support, and business opportunities for global developers to create innovative generative AI experiences on Dimensity-powered devices.
• At the same time, MediaTek partnered with Alibaba Cloud, Baichuan Intelligence, Huya, Kugou Music, Oppo, Tencent AI Lab, and Vivo to jointly release a Generative AI Smartphone Industry White Paper. The white paper defines Generative AI smartphones as devices utilizing large-scale, pre-trained generative AI models to achieve multi-modal generation, context awareness, and evolving human-like capabilities.
• The white paper signals a strong integration trend in generative AI for smartphones and explores the AI strategies of various chip manufacturers, phone makers, large model developers, and developers in the generative AI ecosystem. Industry analysis firm Counterpoint forecasts rapid growth for generative AI phones in the coming years, with a global user base of around one billion expected by 2027.

Context: In the fourth quarter of 2023, MediaTek maintained its lead with a 36% share of the global smartphone chipset market, followed by Qualcomm at 23% and Apple at 20%, according to data provided by Counterpoint‘s Global Smartphone AP-SoC Shipments & Forecast Tracker by Model.

• On March 18, California-based chip firm Qualcomm launched the Snapdragon 8s Gen 3, the company’s latest flagship chipset, equipped with several on-device AI capabilities. The new 4nm chipset arrives as a more affordable version of the top-of-the-line Snapdragon 8 Gen 3 chip launched last October.

Chinese battery manufacturer and technology company Contemporary Amperex Technology Co. Limited (CATL) revealed on Monday that it is committed to the research and mass production of solid-state batteries, with the aim of achieving small-scale production by 2027, according to local media outlet Jiemian. However, overcoming challenges related to cost is essential for realizing large-scale production, the company said.

Why it matters: Presenting a promising solution to conventional lithium-ion battery limitations, producers maintain that solid-state batteries offer enhanced safety, higher energy density, improved performance, increased durability, and reduced environmental impact. They have the potential to transform various industries, including electric vehicles, portable electronics, and renewable energy systems.

Details: The company’s current level of research on solid-state batteries stands at 4, on a scale of 1-9 for technical and manufacturing maturity, CATL’s chief scientist Wu Kai disclosed at a battery technology seminar. CATL plans to achieve a rating of 7-8 by 2027, the year the company plans to be able to produce solid-state batteries on a small scale, Wu told Jiemian.

• Compared to liquid lithium batteries, solid-state batteries demonstrate better performance in terms of energy density. Currently, liquid lithium batteries can reach 350 watt-hours per kilogram, while solid-state batteries are expected to achieve up to 500 watt-hours per kilogram, according to the chief scientist.
• The technological pathways for solid-state batteries primarily include polymers, oxides, and sulfides. Wu claimed that CATL is currently investing more in research and development of the sulfide option, likely to be the first in mass production.
• Sulfide electrolytes exhibit high conductivity and good process ability, but they are also prone to generate toxic gasses when exposed to water and involve high costs due to complex production processes, Wu further explained.
• Wu stated that CATL is striving towards the goal of solid-state batteries representing 1% of the global battery market share. Tech challenges remaining include solid-solid interfaces, lithium metal anodes, solid-state electrolytes, and other manufacturing processes, the scientist added.

Context: Last September, Japanese automaker Toyota announced a development plan for solid-state batteries. Toyota plans to bring electric vehicles equipped with solid-state batteries to market as early as 2027, enabling them to drive around 1,200 kilometers on a charge of under 10 minutes.

Chinese universities and research institutions were still able to purchase servers equipped with the restricted GPU (Graphics Processing Unit) chips as of Feb. 28, despite US export restrictions on the chips being in place since October 2022 and tightened in November 2023, according to an exclusive report by Reuters.

Why it matters: The Reuters report reveals loopholes in the US export restrictions on high-performance GPU chips to China. The findings have raised concerns within the US government about the efficacy and enforcement of these regulatory measures.

Details: Ten Chinese entities acquired advanced Nvidia chips integrated into server products produced by Super Micro Computer, Dell Technologies, and Taiwan’s Gigabyte Technology after the US tightened licensing rules for chip exports on Nov. 17 2023, the Reuters review of tender documents revealed.

• In China, trading in GPU chips coming from the US is not illegal. Chinese retailers may have fulfilled orders using stockpiles acquired before the US tightened chip export restrictions in November.
• The buyers included the Chinese Academy of Sciences, the Shandong Artificial Intelligence Institute, Hubei Earthquake Administration, Shandong and Southwest universities, a tech investment firm owned by the Heilongjiang provincial government, a state-run aviation research center, and a space science center.
• Nvidia responded by stating that the relevant tenders were for products exported and widely used before Nov. 17 2023. Sales may have included inventory previously exported to Chinese distributors, and the documents did not indicate that any of its partners violated export control regulations, Nvidia said. The US chip giant added that it would conduct further investigations into the matter.
• Dell told Reuters it had not seen any evidence of servers containing restricted chips being shipped to China after the embargo was implemented. “If we become aware of a distributor or reseller that is not complying with these obligations, we take appropriate actions, including termination of our relationship,” a Dell spokesperson said.
• Gigabyte said in an email to Reuters that the company consistently complied with related laws and international regulations. It did not reply to inquiries regarding tenders that identified its products as a source of banned Nvidia chips.

Context: Last October, the US government announced new export regulations to prevent the sale of advanced artificial intelligence chips to China, impacting on sales for US companies such as Nvidia, Broadcom, AMD, and Intel.

• Last December, Nvidia unveiled a Chinese version of the RTX 4090 graphics card to adhere to US regulations, in an effort to maintain its market presence. The Chinese version of the graphics card has a 12.8% smaller CUDA core (down to 14,592 from 16,384) and consumes 5.9% less power (425W from 450W) compared with the standard RTX 4090.

On Thursday, Huawei unveiled a letter on the Chinese X-like social media platform Weibo to announce the Pura 70 Series Pioneer Program, a scheme for people to purchase devices from its latest mobile phone series without holding a launch event. The new range was launched with minimal marketing, in a similar approach to the one the Chinese tech giant took when launching the Mate 60 series last August. The Pura 70 Pro/Ultra models went on sale in China on Thursday, while the Standard/Pro+ models will be available on April 22.

Huawei’s flagship lineup is currently categorized into the Mate and Pura series. The Mate line focuses on high-end flagship devices and targets business users, while the Pura range leans towards imaging capabilities and aesthetic design.

Why it matters: Huawei intentionally chose April 18 to launch the Pura 70 series, as it marks the 12th anniversary of the launch of Huawei’s first Pura series device, the Ascend P1. The latest Pura series smartphones are equipped with Huawei’s self-developed Kirin chip, an effort to counteract US chip sanctions.

Details: Similar to the Mate 60 series, Huawei’s Pura 70 series hit the market without a launch event. The first batch of Pura 70 series products sold out within minutes on Huawei’s e-commerce platform. A number of tech bloggers have managed to acquire the Pura Pro and Pura Ultra models first hand for phone performance tests, but Huawei has not publicly disclosed the specific chip details of the Pura 70 smartphone series.

• The tech blogger Digital Chat Station revealed that the processors in the Pro and Ultra models are both identified as the Kirin 9010. The Kirin 9010 processor achieved a single-core score of 1,442 and a multi-core score of 4,471 on Geekbench, a cross-platform benchmarking tool used to measure and compare the performance of CPUs and GPUs across various computing devices. For comparison, the iPhone 12 Pro obtained a single-core score of 2,101 and a multi-core score of 4,936 on Geekbench.
• The Kirin 9010 adopts the same 2+6+4 architecture design as the Kirin 9000s (Mate 60 series), with two cores clocked at 2.30GHz, six cores clocked at 2.18GHz, and four small cores clocked at 1.55GHz. It seems to be a slight upgrade over the Kirin 9000s, the blogger said.
• The Pura 70 series features a distinctive triangular camera module on the rear, along with Huawei’s self-developed HarmonyOS 4.2 operating system. The premium Ultra model supports BeiDou satellite network functions, including text messages, image messages, and satellite calls. 
• The Ultra model also boasts a mightier camera setup with a 1-inch main sensor with retractable lens and variable aperture. Its camera system offers a 50MP 1-inch primary sensor, a 40MP ultra-wide sensor, and a 50MP macro telephoto shooter.
• In terms of pricing, the Ultra model comes in two storage variants: 16GB + 512GB priced at RMB 9,999 ($1,382), and 16GB + 1TB priced at RMB 10,999 ($1,520). The Pro model is available in three versions: 12GB + 256GB priced at RMB 6,499 ($898), 12GB + 512GB priced at RMB 6,999 ($967), and 12GB + 1TB priced at RMB 7,999 ($1,105). 
• Currently, the Pura 70 series phones are limited to sale in the Chinese market. The market intelligence firm TechInsights predicts that Huawei’s smartphone shipments in China will exceed 50 million units in 2024, with its market share increasing from 12% in 2023 to 19% in 2024. The Pura 70 series is expected to ship over 10 million units in 2024, positioning it as a major competitor to the iPhone 15 and 16 series, according to TechInsights.

Context: The Huawei P series was rebranded as the Huawei Pura range on Monday, with the Pura 70 series becoming the first device under the new name. Huawei did not explain the meaning of Pura. However, “Pura” in Spanish translates to “pure” or “clean”, and it can also mean “genuine” or “true” in certain contexts.

Intel is preparing to launch modified Gaudi 3 chips for the Chinese market when it releases the new generation AI accelerator chip this year, according to British technology media outlet The Register. Intel has disclosed the existence of the two China-exclusive models in its Gaudi 3 white paper, with HL-328 set to launch on June 24 and HL-388 on September 24.

Why it matters: Intel’s launch of customized Gaudi 3 chips for China is part of the American chip giant’s efforts to work within US sanctions on chip exports to China.

Details: Based on the information provided in Intel’s Gaudi 3 white paper, the Chinese editions of the Gaudi 3 models may ultimately require a reduction of around 92% in AI performance to comply with US export controls. 

• Due to US export restrictions, high-performance AI chips need a computing performance below 4,800 TPP (total processing power) to be eligible for export to China. This implies that the 16-bit performance of the Chinese editions of the Gaudi 3 chips will not exceed 150 teraflops.
• Similar to the Nvidia’s Chinese-edition H20 chip, the two modified Intel chips will offer a 148 teraflops of FP16/BF16 performance, just below the permitted limit.
• According to Intel, the original version of the Gaudi 3 chip can achieve 1,835 teraflops in FP16/BF16, formats used in computing to represent a balance between accuracy and efficiency for chips commonly used for AI to process large amounts of data quickly and efficiently. 
• Compared to the original version, the HL-328 and the HL-388 versions have the same 96 MB cache, 128GB of HBM2e memory with a bandwidth of 3.7TB/s, PCIe 5.0 x16 interfaces, and decoding standards. However, both models are capable of just 450 watts of thermal design power (TDP), while the original versions of respective models have a higher TDP of 600 watts and 900 watts.

Context: In the first quarter of 2024, Nvidia strategically re-entered the Chinese market with the H20 AI chip. In terms of performance, the modified-for-China H20 chip’s AI computing power is slightly less than 15% of the H100, the original version of the chip available in the rest of the world.

At Huawei’s spring product launch event on Thursday, Consumer BG CEO Yu Chengdong introduced the MateBook X Pro, a slim lightweight laptop featuring cutting-edge technology such as the Intel Core Ultra 9 processor and Pangu AI integration. Huawei did not disclose any information about its next-generation Huawei P70 flagship smartphone at the event however, despite it becoming a trending topic on Chinese social media in recent days.

Why it matters: The MateBook X Pro stands out from other laptops produced by the Chinese tech giant as the first PC to integrate its Pangu large language model. Huawei has collaborated with AI-model partners such as Baidu’s ERNIE Bot, WPS AI, and iFLYTEK’s Spark on the new computer.

Details: The MateBook X Pro is currently the sole laptop weighing less than one kilogram to be equipped with the Intel Core Ultra 9 processor, according to Yu.

• The 2024 slimline model has a thickness of 13.4mm and weight of 980g. An image shown at the event indicated that the 14.2-inch design is lighter than the 13.6-inch Apple MacBook Air (1.24kg). 
• The new model comes in two chip variants: the first generation Intel Core Ultra 9 185H processor and the Ultra 7 155H processor. These variants are paired with an Intel Sharp Graphics card, with options for 16GB or 32GB of RAM, and either 1TB or 2TB of NVMe PCI storage. Notably, the latest Intel Ultra 9 processor can enhance the device’s performance with up to 40W of power.
• The device supports the latest Pangu AI model, which provides artificial intelligence features including AI Minutes, AI Subtitles, and AI Eyes. AI Minutes can make rapid recordings, while AI Subtitles translates texts in real-time. AI Eyes is a photo enhancement software that can analyze and adjust images.
• The 2024 Huawei MateBook X Pro introduces a 14.2-inch OLED screen with a 3:2 ratio and a 3,120 x 2,080 pixel resolution. It boasts a peak brightness of 1,000 nits, a 120Hz refresh rate, and 1.07 billion color display.
• The MateBook X Pro is equipped with a 70Wh lithium polymer battery and supports fast charging at 140W. A 10-minute charge powers the device for up to three hours, the company claimed. 
• It is available in China in three configurations: the Ultra7 model with 16GB RAM and 1TB storage priced at RMB 11,199 ($1,658), the Ultra7 model with 32GB RAM and 1TB storage priced at RMB 12,499 ($1,727), and the Ultra9 model with 32GB RAM and 2TB storage priced at RMB 14,999 ($2,072).

Context: During the nearly two-hour launch event on Thursday, Yu did not once mention “far ahead,” a phrase that he had consistently used at previous product launches and which had gone viral on Chinese social media. Huawei has allegedly stopped him from using this term to describe products, according to local media outlet IThome. 

• Huawei President Ren Zhengfei has allegedly imposed a fine of RMB 10,000 for anyone from the company using the phrase “far ahead,” IThome reported. However, Yu previously denied the existence of such an order.

The US Department of Commerce and the semiconductor foundry TSMC jointly announced on Monday that they have reached a preliminary agreement to provide the Taiwanese manufacturer with up to $6.6 billion in subsidies under the US CHIPS Act to support the construction of advanced semiconductor manufacturing facilities in Phoenix, Arizona. As part of the agreement, TSMC will also construct its third fab in Phoenix, bringing its total investment in the US to over $65 billion.

Why it matters: The agreement supports TSMC’s expansion in the US while also demonstrating a strategic partnership to strengthen advanced semiconductor manufacturing in the country as it concurrently looks to limit China’s development in the field.

Details: Following the subsidy announcement, TSMC revealed plans for a third fab in Arizona to introduce 2nm process chip technology or more advanced processes, with production beginning by the end of the decade.

• TSMC Arizona’s first fab is set to gear up for production of 4nm chips by the first half of 2025, while the second fab will produce both 2nm and 3nm chips in 2028.
• TSMC Arizona will establish a cutting-edge cluster, generating 6,000 direct manufacturing roles, over 20,000 construction jobs, and tens of thousands indirect employment opportunities in the next decade, according to the US Department of Commerce.
• With this new funding, TSMC’s total investment in the US has increased from $40 billion to $65 billion. This investment represents the largest foreign direct investment in Arizona history, and the largest foreign direct investment in a greenfield project in US history, TSMC said in the statement.
• “Our US operations allow us to better support our US customers, which include several of the world’s leading technology companies. Our US operations will also expand our capability to trailblaze future advancements in semiconductor technology,” said TSMC Chairman Dr. Mark Liu. 
• TSMC is the fifth company to receive public subsidies from the US government since the enactment of the CHIPS Act in 2022, and the only foreign entity to date, according to Chinese media outlet Jiemian. The other four companies are BAE Systems, Micron, Qualcomm, and Intel, which received subsidies of $35 million, $162 million, $1.5 billion, and $8.5 billion respectively.
• TSMC holds over 60% of the global orders for advanced process chip manufacturing, with nearly 70% of its clients coming from the US, the same Jiemian report said. According to TSMC’s previous financial conference calls, the focus of the Arizona factory is to serve clients in the US.

Context: The current construction of two fabs by TSMC in Phoenix is experiencing delays due to issues such as a shortage of skilled workers, as revealed by Chinese media outlet Icsmart.

• Fab 1’s production of 4nm technology has been delayed from 2024 to 2025, while Fab 2’s 3nm production, initially planned for 2026, is now scheduled for 2028. The two fabs are intended to produce over 600,000 wafers per year, potentially generating a market value exceeding $40 billion annually.

US sports camera firm GoPro has filed a complaint against Chinese camera maker Shenzhen Arashi Vision (Insta360) with the United States International Trade Commission (USITC) under Section 337 of the Tariff Act of 1930, according to information obtained by Chinese media outlet Jiemian. GoPro is claiming patent infringement and asking USITC to investigate the matter and halt the US sale of certain Insta360 cameras, software, and accessories.

Why it matters: GoPro is seeking intervention from USITC to investigate and prevent the sale of the disputed products in the US.

Details: GoPro has submitted evidence of patent infringements to the commission covering nearly all the consumer products sold by Insta360 in the US.

• The products mentioned by GoPro are Insta360’s ONE X, ONE R, ONE R1-inch, ONR X2, ONE RS, ONE RS 1-inch 360, X3, GO3, Ace, and ACE Pro, according to the Jiemian report.
• The Section 337 investigation initiated by GoPro, also known as an “unfair import” investigation, is an administrative inquiry conducted by USITC under the provisions of the Tariff Act of 1930 and its amendments. It targets intellectual property infringement and other unfair competitive practices by goods importers.
• Compared to normal patent litigation in the US, which can last over two years, 337 investigations generally resolve faster. However, they require companies to swiftly gather evidence, hire lawyers, and bear costs that can total millions of dollars.
• The Jiemian report suggests that GoPro’s market share has declined due to the rise of Insta360, which was founded in 2015. By the end of 2021, Insta360 held a leading market share of 41% in the global market for panoramic cameras, followed by Japan’s Ricoh at 22%, while GoPro ranked third with 19%, according to consulting firm Frost & Sullivan.
• Established in 2002, GoPro’s latest market value is $331 million, over 97% lower than its peak market value of $13 billion in June 2014, when GoPro listed on the NASDAQ. Insta360’s overseas markets account for nearly 70% of its overall revenue, which were around $280 million in 2022.

Context: In 2023, USITC undertook investigations into 72 Chinese companies, of which 48 chose to respond, the Jiemian report said.

• California-based GoPro manufactures action cameras and develops its own mobile apps and video-editing software. The company focuses on the connected sports genre, developing action cameras and video editing software for outdoor activities. 
• Arashi Vision, better known as Insta360, is a camera company headquartered in Shenzhen, with offices in Los Angeles, Tokyo, and Berlin. It makes action cameras, 360-degree cameras, editing software for mobile and desktop and 180-3D cameras.

On March 29, Chinese tech company Roborock hosted its global launch event in Beijing, unveiling two flagship cutting-edge robotic vacuums: the V20 and G20S (S8 MaxV Ultra), both of which are intelligent automatic sweeping and mopping robot cleaners. The V20 features a dual-vision 3DToF (three-dimensional time of flight) solid-state lidar (light detection and ranging) system, giving it advanced navigation and obstacle avoidance capabilities.

Why it matters: A leading brand in the field of robotic vacuum cleaners, Roborock is looking to use technology from China’s rapidly developing self-driving car sector in the hopes that the country’s consumers are ready for robotic home appliances and labor-saving devices. 

Details: At the launch event on the eve of the company’s 10th anniversary, Roborock CEO Quan Gang said the firm’s robotic vacuum cleaner sales revenue has clinched the global top spot, based on data from the first three quarters of 2023, according to market research firm Euromonitor. “Our goal is to bring Roborock robotic vacuum cleaners into one hundred million households worldwide,” he said.

• Currently available only in China, the V20 is the world’s first robotic vacuum cleaner to feature a dual-vision 3DToF solid-state lidar navigation and obstacle avoidance system, which utilizes modulated light reflections to enhance depth accuracy for more intuitive floor mapping.
• Roborock, in partnership with industry leaders PMD Technologies, Infineon, and OFILM, jointly developed this dual-vision 3DToF solid-state lidar system. It emits an instant matrix laser that enables simultaneous far and near field visibility, achieves precise map restoration, and ensures ultra-accurate obstacle avoidance. Alongside this system, the V20 also applies AI to match users with a suitable cleaning method.
• The G20S features the FlexiArm Design Side Brush, an innovative robotic arm designed to clean corners, and an additional side mop for edges. It also includes Reactive AI 2.0 obstacle recognition, a built-in intelligent voice assistant, and RockDock Ultra, which automatically replenishes the robot cleaner using hot water and heated air, as well as intelligent mop re-washing and re-mopping capabilities.
• The company said the Roborock app, which controls the robotic vacuum cleaners, boasts over 11 million users, with one million daily active users. The Roborock app’s room map is designed with intensive color contrast for visually impaired users.
• Catering to China’s animal lovers, the app has recently introduced a Pet Mode that can remotely search for and photograph pets at home with the robotic vacuum. 
• Roborock has developed a case library that covers over 50 wall and baseboard materials and over 200 carpet materials, according to data provided by the company. This library is used to develop and test its products’ mapping and navigating capabilities.

Context: Founded in July 2014, Roborock is a Beijing-based tech company known for its robotic sweeping and mopping devices and handheld cordless stick vacuums. Xiaomi played a key role in the company’s founding.

• From 2019 to 2023, Roborock invested over RMB 1.9 billion ($260 million) in research and development, according to figures provided by the company. The firm currently operates three major R&D bases, with over half of its workforce consisting of highly skilled R&D employees. Currently, Roborock products are available in more than 170 countries, including the US, Germany, France, and Spain.
• According to Roborock’s latest financial earnings report, the brand recorded a revenue of RMB 8.65 billion last year ($1.22 billion), with robot vacuum shipments surpassing 2.6 million units.

Chip giant TSMC is seeing increasing orders from its three major clients – Apple, Intel, and AMD – for its 3nm chips, according to Taiwanese media outlet Economic Daily News. TSMC launched its 3nm process in late 2022, but up until the fourth quarter of 2023, Apple was its only customer for the technology, as the foundry slowly ramped up its production. As that situation changes, TSMC’s revenue share from 3nm chips is expected to surpass 20% of its total this year, positioning them as the company’s second-largest revenue contributor after its 5nm chips according to the Economic Daily News report.

Why it matters: With orders for its 3nm chips from major clients continuing to rise, TSMC is expected to experience significant short-term revenue growth and cement its dominance in the advanced semiconductor manufacturing sector.

Details: The Economic Daily News has analyzed the order status of TSMC 3nm chips from three key clients: Apple, Intel, and AMD.

• The upcoming iPhone 16 series by Apple will feature the new A18 series processor, while its new Mac processor (the M4 series) is expected to launch in the first quarter of 2025. Both are 3nm chips scheduled for production by TSMC starting in the second quarter of this year.
• In the second quarter of 2024, Intel will start the mass production of Lunar Lake CPUs (central processing units), GPUs (graphics processing units), and high-speed Input/Output chips at TSMC. This marks the first time that Intel has outsourced its complete range of chips for mainstream consumer platforms to TSMC. The CPU/GPU cores may also adopt 3nm technology, representing a new source of orders for TSMC’s 3nm process this year.
• AMD this year will unveil its new Zen 5 architecture platform, which is expected to greatly enhance AI applications. The report suggests that AMD’s Zen 5 architecture utilizing TSMC’s 3nm process is scheduled for a release in the second half of 2024.
• In the fourth quarter of last year, TSMC’s revenue contribution from 3nm chips already rose to about 15%, driven by the order of the 3nm A17 Pro processor for the Apple iPhone 15 series, according to TSMC’s financial reports.

Context: TSMC has secured over 90% of the total global AI chip foundry orders, as tech giants such as Nvidia, Google, Intel, Qualcomm, Microsoft, and AMD compete fiercely in the AI chip market, Economic Daily News reported.

• Driven by the high demand for AI chips, the high utilization rates of advanced processes of 6nm, 5nm, 4nm, or 3nm will further improve TSMC’s performance, a company insider told Economic Daily News. TSMC’s revenue in 2024 may increase by 24% to 26% year-on-year, the source claimed.

On Thursday evening, Apple CEO Tim Cook attended the grand opening of the Apple Shanghai Jing’an store and engaged with a crowd of Apple fans who had flocked to the downtown location. The retail store is the second-largest Apple Store worldwide and the largest in Asia. The Jing’an store’s opening was part of a two-day visit to Shanghai from Cook, which comes amid falling iPhone sales in China. 

Why it matters: Cook’s presence at the opening of the Shanghai store was intended to demonstrate the brand’s commitment to the China market.  The country also plays a crucial role in Apple’s supply chain and manufacturing operations.

Details: During his two days in Shanghai, Apple CEO Cook shared various PR activities on the Twitter-like social media platform Weibo, where “Tim Cook encounters actor Zheng Kai” trended as a hot topic on Wednesday. 

• Cook wrote on his Weibo post, “Nonghao Shanghai! [Nonghao is hello in Shanghainese] Spent the morning walking the Bund with Zheng Kai and enjoying a classic Shanghai breakfast. I’m always so happy to be back in this remarkable city.”
• Cook shared another photo on Weibo on Wednesday afternoon showing him being briefed on gaming products by Papergames staff and accompanied by Papergames CEO Yao Runhao. Known for mobile hits such as dress-up role-playing game Shining Nikki and female-centered romance game Mr. Love: Queen’s Choice, the company is a major developer on Apple’s App Store. 
• Later, Cook met with BYD CEO Wang Chuanfu at Apple’s Shanghai headquarters. During the visit, Apple suppliers BYD Electronics, Lens Technology, and Everwin Precision Technology exhibited advanced manufacturing technologies and manufactured components for Apple products. “BYD, Lens, and Everwin are great examples of companies who are pushing the boundaries of what’s possible every day and we’re excited for the opportunities ahead,” Cook said on Weibo.
• On Thursday morning, Cook visited Shanghai Jiao Tong University’s Xuhui campus to communicate with student programmers. He then posted about meeting winners of the App Contest and Swift Student Challenge, highlighting their use of coding to address challenges and preserve traditional culture. The Swift Student Challenge from Apple is an annual event that invites student developers to showcase their coding skills by utilizing Swift programming. The Swift Student Challenge 2024 introduces a new category to honor 50 outstanding winners who submit exceptional works, according to Apple.
• On Thursday evening, Cook opened the Shanghai Apple Jing’an store, as a crowd of customers gathered in front of the retail space, eager to be among the first to enter. With over 30 years of history in China, Apple has created over five million job opportunities through direct employment, supply chain business, and iOS app related businesses, according to data provided by the company to China Economic Weekly.

Context: In 2023, Apple achieved its highest-ever market share of 17.3% and secured the top spot in the Chinese smartphone market for the first time, according to market intelligence firm IDC. The report revealed that China’s smartphone shipments totaled 271.3 million units in 2023, a 5.0% year-on-year decline compared to 2022, marking the lowest volume in a decade due to sluggish economic recovery and weak consumer sentiment.

• However, in the first six weeks of 2024, China witnessed double-digit declines in smartphone sales for Apple, Oppo, and Vivo, according to Counterpoint Research. During these six weeks, Apple’s iPhone sales in China declined by 24% year-on-year, ranking fourth among Chinese smartphone suppliers.

On March 15, the annual 315 Evening consumer rights TV broadcast co-hosted by state media China Central Television (CCTV) and a number of national government departments, exposed an illegal industrial chain producing motherboards for the mass manipulation of smartphones. In the undercover journalists’ secretly recorded footage, manufacturers boast that their motherboards can be used to assemble multiple smartphone mainboards, allowing one person to control multiple phones to perform identical operations on one computer. These motherboards are touted as being able to participate in and control all the network functions of the connected smartphones via the computer.

Why it matters: CCTV’s 315 show has been broadcast since 1991 and has regularly created headlines with its high profile investigations into companies undermining consumer rights. This latest scandal could have implications for China’s e-commerce, gaming, and social media sectors.

Details: According to CCTV’s exposé, specialized motherboard manufacturers assemble dozens of smartphone mainboards to integrate them into a single motherboard that can be controlled by connecting it to a computer, enabling a single user to control multiple devices, each with its own IP (Internet Protocol) address.

• “You can become a king of controlling everything in the online world,” a company executive told an undercover journalist at one point during the broadcast. Buyers can manipulate various IP addresses for purposes such as placing fake orders, posting fake comments or likes, and manipulating online voting through a large number of motherboard devices. 
• Undercover journalists discovered that clients using motherboard devices engage in various online activities, such as promoting advertisements, gaming and e-commerce related behavior, faking active interactions from different users in livestreaming rooms, and boosting traffic for certain public relations articles.
• The report also mentioned a company planning to build a facility with tens of thousands or more motherboards, which would equate to having hundreds of thousands of fake IP addresses.
• The price of the motherboard devices ranges from RMB 3,000 ($417) to RMB 6,000 ($834), with each set containing 20 smartphone mainboards. In the secretly recorded footage shown on CCTV, an employee of a motherboard manufacturer even invited the undercover journalist to experience the powerful device on-site.
• The customized version of the motherboard violates article 12 of the Anti-Unfair Competition Law of China, which states: “Business operators shall not use technical means to hinder or disrupt the normal operation of network products or services provided by other operators through influencing user choices.”
• The CCTV report mentioned three companies: Yunji Xia Technology, Shenzhen Yuncheng Future Technology, and Hunan Yundou Technology. The data agency Tianyancha indicates that 320 companies are currently engaged in motherboard production in China, according to a report by local media outlet Jiemian. In terms of regional distribution, Guangdong, Jiangsu, and Jiangxi have the highest concentration of companies related to motherboard business, with 230, 14, and 12 companies respectively.

Context: The 315 Evening this year also exposed a range of other illegal activities and disreputable business practices, including fire-resistant glass that isn’t fireproof, fire extinguishers that cannot put out fires, tainted preserved pork, deceptive practices on matchmaking platforms, unsettling sounds from BMW transmission shafts, and the installment of loan lending platform scams via gift cards. 

NetEase is expected to announce the return of Blizzard to the Chinese gaming market by late March or early April, sources have told local media outlet CoreEsports. The revival of NetEase and Blizzard’s relationship would be a remarkable turnaround after the World of Warcraft developer ended its long-running agreement with the Chinese gaming giant in January last year. The break-up of the two after 15 years working together resulted in acrimony and lawsuits, but they now seem set to repair relations and enter a new agreement.

Why it matters: The player base for Blizzard’s games in China is substantial, and with the added value of its gaming IP, NetEase stands a good chance of securing the rights to develop mobile versions of Blizzard’s titles if the pair resume collaboration.

Details: NetEase Games will manage operations for Blizzard’s games, while NetEase’s gaming subsidiary Leihuo Technology will handle the marketing, according to CoreEsports.

• The mobile version of Naraka：Bladepoint, developed by NetEase’s Leihuo 24 Entertainment, is scheduled for release on April 1, aligning closely with NetEase’s announcement of Blizzard’s return to Chinese servers, according to the report. This timing suggests the possibility of a coordinated marketing effort.
• As for the specific timing of Blizzard’s return, insiders suggest it will be synchronized with updates to World of Warcraft. In 2024, World of Warcraft has four major updates: version 10.2.5, version 10.2.7, the pre-11.0 version, and version 11.0. Based on this schedule, the earliest potential return of the game to Chinese servers could coincide with the rollout of the 10.2.7 update by the end of March, possibly on the same day as the launch of Naraka: Bladepoint on April 1.
• After the return of Blizzard, NetEase’s Leihuo may look to secure the IP rights for World of Warcraft and develop a new mobile version. NetEase has been eager to collaborate with Blizzard on mobile adaptations, with Diablo Immortal being their only joint venture currently available.
• NetEase will no longer establish a dedicated firm to manage Blizzard games but will integrate them into the NetEase Interactive Entertainment (another name for NetEase Games) operationally, in a similar fashion to other collaborative gaming titles at NetEase. Notably, Diablo Immortal, the sole ongoing collaborative project between the pair, is also developed by NetEase Interactive Entertainment’s Guangzhou team.

Context: On Jan. 24, 2023, Blizzard’s Chinese servers were shut down, marking the end of their 15-year partnership with NetEase Games in China. Last December, news of a potential revival of the cooperation between the two giants surprised many domestic gamers, given the previously sour ending to their relationship.

• Following the shutdown, an estimated three million players of World of Warcraft in China were deprived of access to a game many had enjoyed since childhood, according to US media outlet Rest of World. Additionally, over one million Chinese players sought refunds.

Semiconductor giant TSMC has revealed that subsidies obtained from the Japanese and Chinese governments reached NT$47.545 billion ($1.51 billion) in 2023, marking a 5.74-fold increase year-on-year, according to Taiwanese media outlet Economic Daily News. With its ongoing expansion of overseas facilities, TSMC anticipates further subsidies from Japan this year, along with potential new subsidies from the US and Germany.

Why it matters: As nations compete to enhance their domestic semiconductor manufacturing sectors via subsidies, TSMC has become a key target for government investment in local facilities.

Details: In 2023, TSMC’s Japanese subsidiary JASM and its mainland Chinese counterpart in Nanjing secured subsidies from the respective governments of Japan and China, which primarily for real estate, building factories, purchasing equipment, and funding production facility costs.

• In 2022, subsidies from the Japanese and Chinese governments reached around NT$7.051 billion ($220 million), soaring 574% to NT$47.545 billion ($1.51 billion) in 2023. Although TSMC did not specify the exact breakdown of the subsidies, previous data indicates that the Japanese government decided to grant TSMC’s Kumamoto Fab 1 JPY 476 billion ($3.2 billion) in phased subsidies, as reported by Chinese media outlet Icsmart. 
• TSMC’s 2023 subsidies from mainland China primarily originated from the expansion project at its Nanjing plant, the Icsmart report added. In April 2021, TSMC announced a plan to invest $2.88 billion in expanding its 28nm process manufacturing at the Nanjing facility, to meet a rising demand for automotive chips and the global chip shortage.
• TSMC is currently investing $40 billion to construct a semiconductor fab in Arizona, with plans to manufacture 4nm and 3nm chips. A recent Bloomberg report suggests that Intel may receive around $10 billion in subsidies under the US’s CHIPS Act. According to analysis by Icsmart, using Intel’s investment and estimated subsidy amount as a reference point, TSMC could potentially receive nearly $10 billion in subsidies as well.
• TSMC is also collaborating with Infineon, NXP Semiconductors, and Bosch to invest €10 billion in constructing a semiconductor factory in Dresden, a city in eastern Germany. The German government is also expected to give about €5 billion in subsidies, according to news agency Focus Taiwan.

Context：TSMC’s Kumamoto Fab 1 started operations on Feb. 24 and is aiming to mass-produce 28/16/12nm chips in the fourth quarter of 2024. By the end of this year, TSMC plans to establish a second fab in Kumamoto, targeting production by late 2027, with a focus on 7/6nm processes.

• After the opening ceremony of Kumamoto Fab 1, Japan’s Minister of Economy, Trade and Industry, Ken Saito, announced that the government will subsidize TSMC with JPY 732 billion ($4.94 billion) for the construction of Kumamoto Fab 2 on the site.

The latest data from Steam‘s monthly hardware and software survey has revealed that Simplified Chinese has become the primary language on the gaming platform, accounting for 32.84% of players in February. The shift may be attributed to a substantial increase in Chinese gamers taking to the site during China’s Lunar New Year holiday (Feb. 9 – Feb. 16). 

Why it matters: The language trend reflects the growing influence of Simplified Chinese-reading players within the Steam community, and highlights strong demand for the Steam platform and PC games in the Chinese market.

Details: Steam conducts a monthly optional and anonymous survey to gather data on the computer hardware and software utilized by its customers. This information aids the platform in determining investment priorities for developing new technologies and offering products. In February, the top five most commonly used languages among Steam players based on this survey were Simplified Chinese at 32.84%, English at 32.12%, Russian at 9.27%, Spanish at 4.10%, and Portuguese at 3.45%. 

• This language ranking marks the second time Simplified Chinese has topped the charts, with the first instance dating back to the popularity of the multiplayer online battle royale game PlayerUnknown’s Battlegrounds in 2017, when Simplified Chinese players accounted for over 60% of Steam’s user base, according to local media outlet IThome.
• Operating system: Windows 10 remains the most widely used system among Steam users, accounting for a significant 54.19%. Despite the release of Windows 11 in October 2021, players may be choosing to continue using Windows 10 due to considerations of stability and compatibility.
• Hardware configuration: 49.04% of players’ computers have 16GB of system memory, making this the most prevalent setup. As gaming hardware demands rise, 16GB of memory has become the standard for ensuring smooth gameplay across a majority of gaming titles.
• Display resolution: The majority of players, some 58.82%, prefer a resolution of 1920 x 1080. This data indicates that 1080p remains the mainstream choice for gamers, despite the gradual popularity of 4K resolution. For most players, 1080p offers a more cost-effective option.
• Graphics card: The RTX 3060 has become the most widely used graphics card with a 6% share, suggesting the widespread popularity of Nvidia’s RTX30 series graphics cards due to their performance and ray-tracing technology.

Context: The US currently leads in the number of Steam users, with 13.7 million people using the platform to share and play games, while China follows closely as the second-highest user base, with 11.4 million users, according to World Population Review.

• The most played Steam games of 2023 (where the peak player count exceeded 300,000) include titles such as Apex Legends, Baldur’s Gate 3, Counter-Strike 2, Destiny 2, Dota 2, Goose Goose Duck, Hogwarts Legacy, Lost Ark, PUBG: Battlegrounds, Sons Of The Forest, and Starfield. While not exclusively a Chinese game, PUBG: Battlegrounds was published and distributed in China by Tencent Games.

Situated in Barcelona, the Mobile World Congress (MWC) 2024 saw Chinese tech companies such as Lenovo and Tecno presenting their latest products from February 26 to 29.

Why it matters: The Mobile World Congress is one of the largest gatherings in the mobile technology sector, attracting industry leaders, professionals, and enthusiasts from around the world. Chinese tech companies often use the event as an opportunity to showcase their new innovations, products, and technologies. 

Details: Below are some of the most compelling new products spotlighted at the four-day exhibition by Lenovo and Tecno, two of the main Chinese firms in attendance.

• Chinese PC giant Lenovo and American electronics manufacturer Motorola co-showcased a concept wrap phone with a flexible screen that users can bend to wear on their wrist. The prototype phone features AI scene recognition capability, which adjusts screen size, recommends applications based on different scenarios and phone bending, and supports automatic phone wallpaper changes according to the user’s outfits.

• Lenovo also introduced the ThinkBook Transparent Display Laptop Concept, the world’s first laptop with a 17.3-inch Micro-LED transparent display. The device features a borderless screen, transparent keyboard area, and a seemingly floating touchpad design. By utilizing AI technology, transparent screens can integrate physical objects with digital information, allowing devices to naturally blend into their surroundings. The display provides a transparency of up to 55% when its pixels are turned off and set to black. As the pixels light up, the transparency gradually decreases and the display appears as an opaque white surface with a peak brightness of 1,000 nits.

• Chinese phone brand Tecno, a subsidiary of Transsion, unveiled an AI-enhanced quadruped robot dog, the Dynamic 1. The dog is inspired by the German shepherd and is able to climb stairs, bow, and extend its paw for handshakes, similar to a real dog. With four microphones and AI algorithms in its head, the robot dog recognizes audio commands for user interaction akin to traditional pets. Tecno envisions its utility in entertainment, assistance, education, and training, declaring it the ideal companion of the future. 

• The Tecno Dynamic 1 features an 8-core ARM CPU powering its AI system, HyperSense Fusion, which corrects its movements during operation. It also includes an Intel RealSense S430 depth camera and dual optical infrared sensors for obstacle recognition and fall recovery.

Context: MWC 2024 hosted around 2,400 exhibitors and 1,100 speakers, with nearly 300 Chinese companies in attendance, according to Chinese state media Xinhua News Agency. 

• Themed around Future First, this year’s MWC focused on the integration of AI across devices and networks, advances in 5G and 6G technologies, and the improvement of connectivity. GSMA, the event organizer, anticipated about 95,000 attendees from various parts of the globe at the Barcelona venue this year.

TSMC’s first Japanese plant began operations in the southern prefecture of Kumamoto on Feb. 24, as the company confirmed plans for a second factory in the country within the year. TSMC’s 92-year-old founder, Morris Chang, attended the opening ceremony in Kumamoto, and Japan’s Prime Minister Fumio Kishida sent a congratulatory video message.

Why it matters: TSMC’s decision to build factories in Japan was hastened by incentives provided by the Japanese government, aiming to accelerate the growth of the local semiconductor industry by fostering collaborations with international foundries. Additionally, TSMC was enticed by Japan’s abundance of water resources and concentration of related tech companies that the firm needs to thrive in the sector, as suggested by industry analysis.

Details: TSMC founder Morris Chang, Chairman Mark Liu, CEO C.C. Wei, and other senior executives attended the opening ceremony of its majority-owned subsidiary JASM (Japan Advanced Semiconductor Manufacturing), according to a company announcement.

• Japan’s Prime Minister Kishida said in his video message broadcast at the event that the Japanese government has chosen to support the expansion of JASM in the context of the Domestic Investment Promotion Package announced in December 2023. Other distinguished attendees included Japanese Minister of Economy, Trade and Industry Ken Saito, and Chairman of the Liberal Democratic Party’s group on semiconductor strategy Akira Amari.
• Representatives from key partners such as Sony CEO Kenichiro Yoshida, Denso President Shinnosuke Hayashi, Toyota Chairman Akio Toyoda, and Kajima President Hiromasa Amano also leant their support to the chip-maker’s Japanese subsidiary by attending the factory opening.
• In his speech, TSMC founder Morris Chang recalled being invited to establish the chip factory in Japan back in 2019. Five years later, he said, the factory was a reality, with JASM expected to enhance the resilience of the chip supply chain and contribute to the revitalization of the local semiconductor industry, he said.
• The first plant, backed by a JPY 476 billion ($3.16 billion) subsidy from the Japanese government, will produce chips using 28/16/12-nanometer processes, while the second plant will specialize in 7/6-nanometer processes, according to Taiwanese media outlet Economic Daily News. JASM is expected to start construction of the second plant by the end of this year and be making chips there from the end of 2027.
• TSMC claims that the Japanese government’s investment in JASM will surpass $20 billion, and the establishment of the two fabs will provide at least 3,400 jobs.

Context: Sony, Denso, and Toyota also invested in JASM. Building of the first plant in Kumamoto began in April 2022, as reported by the media outlet Jiwei. 

• TSMC holds around a 70% stake in JASM, with Sony, Denso and Toyota as secondary investors. The plant expects to ramp up to a planned monthly production capacity of 55,000 12-inch chips.

On Thursday, Huawei launched the Huawei Pocket 2, a sleek flip foldable phone seemingly targeted at a young, predominantly female demographic, hitting the shelves after a 16-month gap since the previous generation. The Pocket 2 stands out as the industry’s first foldable flagship to support messaging via China’s Beidou satellite, facilitating communication in regions lacking ground network signal. The device also represents Huawei’s first foldable device equipped with its self-developed Kirin chipset.

Why it matters: Foldable smartphones, an emerging product range in the smartphone industry, have huge market potential in the Chinese market compared to traditional models – although overall phone shipments in China saw a decline in 2023, the foldable category experienced a sharp rise in sales.

Details: Alongside two-way satellite messaging through the Beidou satellite, Huawei claims the Pocket 2 is the world’s first flip foldable smartphone with four cameras on its cover and featuring a self-developed rocket-steel material water-drop hinge.

• The Pocket 2 is equipped with Huawei’s Kirin 9000S chip, a 7nm processor also featured in the company’s latest flagship phones. Paired with 12GB of RAM, it offers storage options ranging from 256GB to 1TB.
• The Pocket 2 boasts a Xuanwu water-drop hinge, which increases its flatness by 62%, and a double-arm lever gear that enhances support force by 41%, according to the company. Huawei states that the rocket-steel design improves drop resistance by 112%.
• Huawei has equipped the interior with a 6.94-inch foldable OLED screen, while the cover features a 1.15-inch circular screen positioned next to the camera island. The 6.94-inch OLED screen offers a resolution of 2,690 x 1,136 pixels and a variable refresh rate from 1Hz to 120Hz, delivering a peak brightness of 2,200 nits.
• The imaging system includes a 50MP main camera (with f/1.6 aperture, OIS), a 12MP ultra-wide macro lens (with f/2.2 aperture), an 8MP periscope telephoto camera (with 3x optical zoom, f/2.4 aperture), and a hyperspectral camera that can detect ultraviolet intensity to provide suggestions on sunscreen protection.
• The Huawei Pocket 2 is available in four color variants: gray, white, purple, and black. The flip phone starts from RMB 7,499 ($1,042) for the standard 256GB model, while the 512GB and 1TB models cost RMB 7,999 ($1,112) and RMB 8,999 ($1,251) respectively.

Context: Chinese consumers are increasingly inclined to try foldable smartphones as related technologies mature and prices become more affordable. 

• In 2023, foldable smartphone shipments in China reached around 7 million units, reflecting a year-on-year growth of 114.5%, according to market intelligence firm IDC. Huawei took the top spot in the domestic foldable market last year with a market share of 37.4%, while Oppo secured second place with an 18.3% market share.

On Feb.18, Wang Hua, Xiaomi’s public relations manager, declared on the Twitter-like social media platform Weibo that the company does not intend to implement any mass layoffs but is focused on routine personnel adjustments aligned with annual performance evaluations. Wang’s statement followed reports that the company was considering substantial layoffs by the end of February, providing an N+1 compensation package without negotiation. 

In China, N+1 compensation is a common severance compensation standard, where N represents the number of years the laid-off employee has worked for the company. For example, if an employee with five years of tenure is terminated, they would receive a severance package equivalent to six months’ salary.

Why it matters: The economic slowdown has led to decreased demand in the smartphone industry, which in turn has raised the specter of layoffs within the sector. 

Details: On Feb. 18, the first working day of the Chinese Year of the Dragon, Xiaomi PR manager Wang Hua denied rumors of mass layoffs on Weibo and shared a photo of a red envelope, a traditional Chinese gift that contains cash and symbolizes good fortune.

• A Xiaomi employee anonymously claimed on Feb.6 that the tech company was planning a large-scale layoff on Feb. 29, with a compensation of N+1, according to local media outlet Jiwei. The employee criticized Xiaomi’s lack of social responsibility, claiming the move could deprive employees of their year-end bonuses, which are expected to be issued on March 5.
• “On the first day back to work,” said Wang Hua via the Weibo post, “I confirmed from multiple departments that there are no plans for any layoffs. There are only normal personnel adjustments based on annual performance evaluations.” Some employees spread rumors of layoffs to cover up their shortcomings, as they do not want to admit to their poor performance, he added in a comment under the post.
• An internal Xiaomi employee informed a Jiwei reporter that the current restructuring does not mean a large-scale layoff, but falls within the regular scope of annual personnel-optimization efforts, impacting a small number of employees.

Context: On Feb. 18, Xiaomi CEO Lei Jun announced the commencement of operations for the firm’s Beijing Changping Smart Factory, which will specialize in producing Xiaomi’s flagship smartphones. It boasts an annual production capacity exceeding tens of millions of units, making it the company’s first large-scale self-owned facility.

• Shipment in China’s smartphone market hit approximately 271 million units in 2023, a year-on-year decline of 5.0% and the lowest shipment volume in nearly 10 years, according to market intelligence firm IDC. Chinese phone brands Oppo, Vivo, and Xiaomi ranked third, fourth, and fifth, respectively.

Nvidia is making a strategic return to the Chinese market by introducing its China-specific H20 AI chip, a move that comes after US policies affected the company’s sales in China. Nvidia has begun taking pre-orders from distributors for its H20 AI chips, priced almost on par with Huawei’s Ascend 910B, according to Reuters.

Why it matters: To address challenges posed by the US’s bans on the sale of certain GPUs (Graphics Processing Units) to China, Nvidia has launched cut-down variants compliant with American export policies. Amid concerns about potential limitations on accessing Nvidia’s products, Huawei’s chip is widely acknowledged as the leading alternative AI offering in China.

Details: Prior to the US curbs, Nvidia held over 90% of the AI chip market in China, according to the Reuters report. However, it is now facing growing competition from local competitors such as Huawei. The H20 AI chip is priced at $12,000 to $15,000, positioning itself as a competitor to Huawei’s Ascend 910B. 

• In October 2023, the US government imposed new restrictions on the export of advanced AI chips, leading Nvidia to immediately halt shipments of high-performance AI chips including the A100, A800, H100, H800, and L40S products. Subsequently, Nvidia initiated the development of new AI chips specifically designed for the Chinese market, including the H20, L20, and L2. All three chips are modified versions of Nvidia’s H100 AI chip.
• While the H20 is expected to provide less computing power than Nvidia’s flagship H100 AI chip, specifications suggest its performance is also inferior to Huawei’s Ascend 910B in certain key aspects. Notably, the H20 may lag behind the 910B in FP32 performance, a critical metric that measures processing speed, and is rated at less than half of its competitor’s capability, the source behind the Reuters report told the news agency.
• However, the H20 is likely to have an edge over the 910B in terms of interconnectivity speed, with the H20 being competitive in applications that require the connection of a large number of chips to function as a system, the report explained.
• In terms of performance, the H20 chip’s AI computing power is slightly less than 15% of the H100, according to US media outlet Wccftech. The H20 AI chip features 96GB memory capacity operating at up to 4.0 Tb/s, 296 TFLOPs computing power, and a performance density of 2.9 TFLOPs/die, compared to the H100’s 19.4 TFLOPs/die.
• Distributors have reportedly informed clients that they can start deliveries of H20 products in small batches during the first quarter of 2024, with larger quantities available from the second quarter. Last month, it was reported that Nvidia intends to mass produce the H20 in the second quarter of this year.

Context: On Jan. 20, Nvidia CEO Jensen Huang visited the company’s offices in Shenzhen, Shanghai, and Beijing for the annual parties held in celebration of China’s Lunar New Year holiday, with the company clarifying that the visit did not involve business operations.

Chinese AR (augmented reality) glasses manufacturer XREAL has recently secured a new round of strategic financing valued at $60 million, bringing its total funding to $300 million, according to an exclusive report by Chinese media outlet 36Kr. The report asserted that XREAL’s current valuation has surpassed $1 billion, as indicated by industry analysts.

Why it matters: As a major player in the global AR device sector, XREAL’s devices are considered potential competitors to Apple’s Vision Pro and Meta’s Quest 3. This strategic financing empowers XREAL to pursue vital growth initiatives, such as expanding its AR glasses production.

Details: The new financing, which is dedicated to product R&D (research and development) and the expansion of the firm’s optical production base, will enable XREAL’s AR glasses production to reach two million units per year by 2025, the 36Kr report said.

• XREAL has not disclosed the specific investors behind the new $60 million financing. Previous major investors in XREAL have included Alibaba, Kuaishou, NIO Capital, Yunfeng Capital, Sequoia China, Gentle Monster, Hillhouse Group, Hongtai Aplus, CICCcapital, Shanghai GP Capital, Shunwei Capital, CPE Asset Management, China Growth Capital, and iQiyi.
• XREAL’s Founder and CEO, Xu Chi, has declared that the company aims to deliver wearable augmented reality displays to global audiences, as AR has revolutionized user experiences in gaming, movies, TV, in-car entertainment, displays, and work.
• From Jan. 9 to Jan. 12, XREAL exhibited its latest XREAL Air 2 Ultra glasses during the 2024 CES (Consumer Electronics Show) in Las Vegas, featuring six degrees of freedom (6DoF) via dual 3D environment sensors with computer vision capabilities. 
• The global release of the Air 2 Ultra glasses is scheduled for March, with a starting price of $699, and pre-orders are already available. Despite the increased cost compared to the previous Air headset, which was priced below 500 dollars, the Air 2 Ultra glasses still present a more budget-friendly option than Apple’s Vision Pro, which is priced at $3,499.

Context: The XREAL Air series of products are compatible with a variety of mainstream gaming and streaming entertainment devices, including Microsoft Xbox, Sony PlayStation, Nintendo Switch, Valve Steam Deck, ASUS ROG Ally, iOS, Android, Windows, and Mac.

• On Jan. 4, XREAL announced a total shipment of 350,000 AR glasses since its establishment in 2017. The company claimed to currently hold a 45% share of the global AR market, a statement that came after market intelligence firm IDC confirmed XREAL secured a 51% market share in the global AR segment during the third quarter of 2023.

The National Press and Publication Administration (NPPA) of China released its first batch of domestic game licenses for 2024 in the early hours of this morning, with its approval of 115 games sparking hope for a stable and positive regulatory environment in the industry this year.

Why it matters: Over the last two years, the average monthly issuance of domestic game licenses was around 80, with January 2023 only reaching 88. Today’s approvals represent the highest number of monthly licenses granted for two years. 

Details: The batch of 115 approved games includes 100 mobile games, eight dual-end (PC and mobile) games, four PC games, one PS game, and one web-page game.

• The main gaming titles are Need for Speed by Tencent Games, Etheria: Restart by X.D.Network, My Three Body: 2277 by YOOZOO Interactive, Call of Dragons by Lilith Games, Wait a Minute by 37 Interactive Entertainment, Anno: Mutationem by Leiting Games, and Youxing Continent by Bingchuan Network.
• The Three-Body Problem is an international award-winning science fiction novel written by Liu Cixin, widely acclaimed for its profound ideas, captivating storyline, and scientific precision. As the first officially licensed Three-Body Problem game, the turn-based strategy title My Three Body: 2277 has consistently garnered attention in China. In October 2023, details of the gameplay were unveiled, accompanied by the opening of online pre-registration, and the game is scheduled for a launch for both mobile and PC platforms in the first half of this year, according to Cailian Press.
• Launched globally in March 2023, Call of Dragons, developed by LEGOU Games and distributed by Lilith Games, is available for overseas markets on Android, iOS platforms, and PC. Call of Dragons is a multiplayer Western-style fantasy strategy game with 3D modeling, initially positioned for international audiences. Currently, the game has gained between 5 million and 10 million downloads on the Google Play Store in the global market, according to market intelligence firm SensorTower. However, it remains to be seen whether the game will find similar success with Chinese audiences.
• Additionally, the NPPA approved a number of previously-licensed games on new platforms for 2024. NetEase’s card collection role-playing game Harry Potter: Magic Awakening and Perfect World’s turn-based role-playing game Persona 5: The Phantom X have both added a PC version, while X.D.Network introduced the Nintendo Switch version for its puzzle adventure game Moncage.

Context: In 2023, the NPPA released 977 domestic game licenses, representing a year-on-year growth of 108.76%. 

• In December 2023, an industry report from The China Game Industry indicated that the revenue of the domestic gaming market reached RMB 3,029.64 billion ($426.83 billion) in 2023, a year-on-year growth of 13.95% and the first time that China’s gaming market has surpassed three trillion RMB. The user base also reached a historic high of 668 million.

Last week’s global launch of Papergames’ Love and Deepspace, a title touted as the first otome game to feature 3D modeling, has sparked a battle over the female-focused romance games market, with China’s major gaming companies weighing in with a raft of special offers and promotional events.

Otome games are typically targeted towards female players, with the Japanese term translating to maiden or young lady. The games often involve a female protagonist who interacts with male characters, and the gameplay focuses on developing romantic relationships with one or more of these characters.

Why it matters: Having previously found success with otome game Mr. Love: Queen’s Choice, Papergames’s new title aims to provide players with a more realistic interactive experience through its iterative improvements in 3D character modeling. The release has sparked intense competition in the sector.

Details: On January 18, the day Love and Deepspace launched, China’s major domestic gaming companies all unveiled new promotional activities within their respective otome games. Light and Night from Tencent Games, HoYoverse’s Tears of Themis, and For All Time by NetEase Games are among the genre’s most popular titles, alongside Papergames’ Mr. Love: Queen’s Choice.

• On the day of the Love and Deepspace’s release, a trending hashtag #0118决战国乙之巅# (Battle for the Peak of Chinese Otome Games on January 18) appeared on China’s Twitter-like platform Weibo. Posts under the hashtag listed the various promotional activities and benefits of domestic otome games, as Chinese players expressed their excitement over the developments.
• In order to compete for potential new players, NetEase’s new otome game Beyond the World, originally scheduled for a public beta release on January 26, announced on January 16 that it would bring its open testing period forward to January 18. NetEase also offered various in-game promotional events and benefits that were similar to those available in Love and Deepspace.
• Also coinciding with the Love and Deepspace’s launch, Tencent Games held its largest celebration event for the Light and Night since its launch in 2022, showering players with free benefits. Players can even receive animated video calls from game characters as part of the new offerings. Furthermore, Light and Night announced an ancient-style gacha event, a gameplay mechanic where players spend in-game currency to obtain random rare virtual characters. 
• Love and Deepspace had already received over 14 million pre-registrations before its official release, according to Papergames. At time of writing, the game is in the top ten iOS free-download games in the Chinese region. The game’s estimated revenue from iOS on the first day reached RMB 5.27 million ($740,000), while iOS downloads amounted to 890,000 during the same period, according to market intelligence firm DataEye.

Context: Otome games are popular in Asia due to culturally resonant narratives, attractive character designs, and targeted marketing towards female players. They align with animated gaming trends in the region, providing escapism through romantic fantasy scenarios.

• According to Qimai Data, Mr. Love: Queen’s Choice, generated a revenue of RMB 760 million ($108 million) in 2023.
• In September 2023, SensorTower released its State of Mobile Games Preferred by Women insights report (in Chinese), stating that the annual revenue for 2023 from female players was expected to exceed $16 billion.

On Thursday, Huawei announced open applications for its developer preview version of HarmonyOS NEXT, with plans to release a more feature-complete developer beta version in the second quarter and a commercial version by the fourth quarter of 2024 as it looks to cut its ties with Android.

Why it matters: While all previous consumer versions of Huawei HarmonyOS have been compatible with Android, HarmonyOS NEXT will break away from Android architecture, establishing itself as a truly independent operating system.

Details: Huawei began the development of HarmonyOS in 2015 and subsequently released different versions from HarmonyOS 1.0 to 4.0. HarmonyOS NEXT will be the Chinese tech giant’s first OS not to accommodate Android applications and will not support the opening of APK files (Android application packages), according to statements made at Huawei’s launch event. Huawei opened recruitment for the HarmonyOS NEXT developer preview version on Monday, allowing users of its Huawei Mate 60, Mate 60 Pro, and Mate X5 phones to sign up.

• Huawei plans to partner with enterprises, universities, and institutions to train over 100,000 HarmonyOS developers each month. The company is introducing the Yaoxing Plan, with an investment exceeding 7 billion RMB ($9.84 billion), to incentivize innovation in the HarmonyOS ecosystem, including native applications and SDKs (software development kits).
• At the time of writing, more than 200 software companies have initiated the development of native HarmonyOS applications, making up 90% of the leading applications in the domestic sector, according to Huawei. Huawei aims to achieve a short-term goal of reaching 5,000 collaborative apps by the end of this year, and anticipates exceeding 500,000 applications to join the native HarmonyOS ecosystem in the long term.
• Huawei’s Consumer BG CEO, Yu Chengdong, mentioned at the event that HarmonyOS has made breakthroughs in core technologies, including AI frameworks, large-scale models, design systems, programming frameworks, programming languages, and compilers.
• Huawei first introduced HarmonyOS to address user experience issues arising from US sanctions. However, the company is now seeking to break free from the constraints of the existing Android framework, and create an integrated architecture that combines software, hardware, and cloud services, according to the president of Huawei Consumer BG software department Gong Ti.

Context: In June 2023, according to local media outlet Zaker, Huawei stated that a 16% market share in the operating system is a critical threshold for success, based on the developmental history of the PC and mobile industries.

• Due to Huawei’s current inability to integrate GMS (Google Mobile Services), the 16% goal primarily refers to the Chinese market, where HarmonyOS has already captured a 13% share, as reported by CounterPoint Research.

On Jan. 13, Tencent announced that its hit game Honor of Kings would resume livestreaming on Douyin (China’s TikTok sibling) five years after it was banned following a copyright infringement case. In 2016, Tencent sued ByteDance for livestreaming the online game on its subsidiary video platform Xigua. In 2019, a court ruling in Guangzhou stated that ByteDance platforms were prohibited from livestreaming Honor of Kings without Tencent’s permission.

Why it matters: The return of Honor of Kings to Douyin signifies a further thawing of the relationship between Tencent and ByteDance. Tencent has been gradually lifting restrictions on ByteDance, as its competitor has begun scaling back its gaming interests in recent months.

Details: Tencent’s Honor of Kings is expected to start livestreaming on Douyin on Jan. 21, with game streamers invited to participate in the splashy return, as announced on the game’s page on China’s Twitter-like platform Weibo.

• Tencent Games plans to conduct testing of Honor of Kings on Douyin from Jan. 14 to Jan. 17, aimed at avoiding technical issues that may arise during the first live broadcast. From Jan. 18 to Jan. 20, Honor of Kings will host various game-themed activities on Douyin, with invited gaming influencers heading livestream sessions and handing out in-game benefits.
• A gaming industry insider said Tencent’s efforts to reconcile with Douyin stem from a noticeable slowdown in Tencent’s gaming revenue growth since 2022, according to Sina. New player growth and revenue for Honor of Kings have been weaker than in previous years, leading to immense pressure on Tencent’s gaming team, the insider said. 
• Another of Tencent’s hit games, PUBG Mobile, has also seen a decline in users, but there are currently no other new hit games to make up for the loss, the same insider added. In December 2023, Tencent released DreamStar, a new party game with the potential to challenge its domestic rival NetEase’s Eggy Party. At this stage it remains uncertain if it will emerge as the firm’s next hit game.
• Both parties may seek further collaboration in the future, as ByteDance has the potential to work with Tencent in areas including joint operations and distribution partnerships, according to the same Sina report. Douyin currently plays a crucial role in the gaming industry in China as a major channel for advertising and new player acquisition, and Tencent cannot afford to ignore it, the Sina report said.

Context: On Jan. 9, TikTok owner ByteDance said it was engaged in discussions with various potential buyers, including Tencent Games, for its gaming assets, according to Reuters. The two giants are discussing a deal involving major games published by ByteDance’s gaming unit Nuverse, as the TikTok owner looks to step back from the gaming industry.

• In November 2023, ByteDance unveiled plans to scale down its Nuverse gaming unit and sell related gaming assets in a strategic shift away from the gaming industry.
• Honor of Kings, a hit multiplayer online battle arena (MOBA) game, generated nearly $1.48 billion in 2023 for Tencent, but saw a notable decline compared to the $1.8 billion achieved in 2022, according to market intelligence AppMagic.

On Tuesday, the world’s largest and most influential consumer electronics show CES 2024 kicked off in Las Vegas. Generative AI, AI-powered PCs, AI chips, emerging display technologies, XR, robots, wearable devices, and smart driving software are among the highlights of this year’s four-day exhibition. There are over 4,000 participating companies at CES 2024, with more than a quarter coming from China, according to CES.

Why it matters: Chinese companies at CES gain global exposure, connecting with international partners and potential investors to showcase their products and expand markets. The premier tech event, which enhances Chinese brand visibility and provides insights into the global innovation ecosystem, fosters a healthy global competitiveness.

Details: Here are some of the most influential Chinese exhibitors and their products:

• Of the Chinese corporations attending, TCL has the largest exhibition space of nearly 1,700 square meters, showcasing the world’s largest 115-inch QD-Mini LED high-end TV as its centerpiece. The technical challenge of the TV lies in its massive screen, which still achieves a high display brightness of up to 5,000 nits. TCL has also introduced a self-developed Mini LED image quality enhancement chip called AiPQ ULTRA, which is expected to enter mass production later this year.
• Lenovo has unveiled more than 10 PC models equipped with AI capabilities, including the ThinkPad X1 Carbon business laptop that features built-in CPU, GPU, and NPU engines. Another notable product is the ThinkBook Plus Gen 5 Hybrid, which switches fluidly between Windows and Android systems. On the software front, Lenovo has also unveiled AI Now, a PC assistant developed on Alibaba’s answer to ChatGPT TongYi QianWen, which the company says enables natural language interaction in scenarios related to work, study, and device management. AI Now is expected to launch in the first half of 2024 and will be integrated into the latest ThinkPad products.
• ASUS launched the 2024 edition of the Zenbook S 13 OLED laptop (UX5304), featuring Intel Core Ultra 5/7 chips and claimed as the world’s thinnest 13.3-inch laptop as part of the show. Thinner than the MacBook Air M2 at 11.3mm, the ASUS Zenbook S 13 OLED laptop is extremely lightweight at just 1kg.
• Asus Republic of Gamers (ROG) also announced its latest gaming smartphone, the ROG Phone 8 series, featuring a Snapdragon 8 Gen 3 processor and AI functions. Its AI Grabber feature can directly extract text from games, while its Semantic Search enables contextual searches within the user’s photo album on their device using keywords.
• Dreame used CES 2024 to release the Robotic-mower A1, a lawn mower that can assess its surroundings and intelligently identify objects it encounters. The A1 saves homeowners hours of time, the company says, and features patented high-precision 3D laser sensor technology, an OmniSense 3D ultra-sensing system, and a U-Path mowing plan program. With centimeter-level positioning, the company claims effective mowing is guaranteed.
• BOE is showcasing its game-changing automotive display technologies, such as the oxide TFT, flexible OLED, 8K, Mini LED, and BD Cell, at the fair. In terms of oxide TFT (thin-film-transistor) technology, the company debuted the world’s first 45-inch 9K oxide TFT Mini LED display. Another innovation is the 14.6-inch 2.5K oxide TFT display, which boasts high transmittance, high contrast ratios, a wide color gamut, slim bezels, and high cost-effectiveness.
• Ecovacs, a robot vacuum company, is presenting a diverse range of products at CES 2024. These include the Winbot W2 Omn (a robot window cleaner), the Deebot X2 Combo (a wireless handheld stick vacuum designed for the Deebot X2 Omni), and a robotic lawn mower. The Deebot X2 Combo comes with upgraded hands-free capabilities and precision for cleaning floors, drapes, ceilings, and more, according to the company, which adds that their products enable users to “enjoy a fully automated era of whole-house cleaning.”

Context: In January last year, 493 Chinese companies took part in CES 2023, less than half the number from three years earlier, according to South China Morning Post. The absence of leading Chinese companies at the time was attributed to geopolitical tensions and pandemic-related travel restrictions.

Get ready for the annual insights from TechNode Content Team! The year 2023 can be considered a groundbreaking year in the field of technology. As wrapping up this year, we gathered different insights from our content team. We’ll be presenting nine Q&As, with timely updates every Wednesday and Friday in the following weeks!

Our first Q&A comes from Jessie Wu, our reporter at TechNode. Jessie is a tech reporter based in Shanghai. She covers consumer electronics, semiconductors, and the gaming industry for TechNode. 

1. Which company has impressed you the most in 2023?

Huawei introduced the Mate60 series featuring the cutting-edge Kirin 9000S chip, manufactured in China by Semiconductor Manufacturing International Corporation (SMIC). This chip marks a significant advancement as it is the first chip from the Chinese manufacturer to be built on a 7nm node process.

2. Which company has surprised you the most in 2023?

ByteDance has scaled down its gaming business following reports of significant job cuts. ByteDance currently struggled to deliver high-grossing games and grab gaming market share, despite entering the gaming market in 2019 to challenge the domestic industry leaders like Tencent and NetEase.

3. Which industry professional/entrepreneur/startup founder has left the most profound impression on you in 2023?

Xiaomi CEO Lei Jun set a record by making a cash donation of RMB 1.3 billion ($183 million) to his alma mater, Wuhan University. This contribution, the largest ever from an alumnus to a Chinese university, is expected to support computer science innovations, students’ development, and research across six fundamental disciplines.

4. What is the most memorable overseas event for you in 2023?

ChatGPT can generate unique images based on a conversation. If users describe the vision, ChatGPT will provide related visuals and further revisions within the chat.

5. If you were to recommend one significant industry trend for everyone to follow, what would it be?

In June 2023, the Dutch government implemented additional export controls on specific advanced semiconductor production equipment. Consequently, ASML needs to apply for licenses for selling advanced chip-making machines to China due to this ban.

6. What industry buzzword have you encountered the most in 2023?

AI is being employed by companies to enhance employee productivity. AI can manage repetitive tasks throughout an organization, allowing employees to concentrate on innovative solutions, complex problem-solving, and meaningful work.

7. Which phrase or sentence best summarizes your perspective on the field you’ve been following in 2023?

Challenge. Huawei and Xiaomi are focusing on creating their own operating systems for devices, as domestic tech companies may face potential restrictions on accessing crucial hardware or software of US origin.

8. What product/company/technology/industry are you most looking forward to next year?

Black Myth: Wukong is an upcoming action role-playing game by Chinese developer Game Science, based on the classical 16th-century Chinese novel Journey to the West. This martial arts title might be China’s very first AAA game.

9. Do you believe AI has the potential to threaten humanity?

Currently, I think that AI is not a threat for humans. Because we are currently in the stage of capitalist society, and the essence of capitalist society is built on consumption. However, AI itself cannot consume, which means it is destined to be unable to fully replace humans.

On Monday, Oppo launched its Find X7 and Find X7 Ultra flagship smartphones in China, emphasizing their innovative camera features. The Find X7 Ultra stands out as the world’s first device to feature dual periscope zoom cameras with a 1-inch Sony LYT-900 sensor, and claims to have the largest telephoto sensor ever integrated in a smartphone. With the Find X7 Ultra, Oppo also becomes only the second domestic brand after Huawei to offer a satellite phone function.

Why it matters: Oppo is hoping to capitalize on consumer excitement for new technology at the dawn of 2024, seeking a competitive edge by introducing hi-spec innovations at a time when China’s mobile phone market is increasingly saturated.

Details: The Find X7 Ultra debuts Oppo’s quad main camera and advanced 1-inch Sony LYT-900 sensor, combining breakthroughs in camera hardware with its HyperTone camera system and pro-grade Hasselblad tuning.

• The Find X7 Ultra packs in four 50MP main cameras, including two equipped with a periscope zoom lens, bridging the zoom gap between optical focal lengths. The 50MP 3x periscope zoom camera features a 1/1.56” Sony IMX890 sensor, an f/2.6 aperture, and a 65mm focal length. This sensor is approximately three times the size of cameras found in major competitors’ phone systems, with Oppo claiming it as the largest telephoto sensor in any smartphone currently on the market.
• The wide camera features an advanced second-generation Sony LYT-900 1-inch sensor, touted as having improved power efficiency compared to its predecessor. With a customized lens with an f/1.8 aperture and optical image stabilization (OIS), it also promises a 50% reduction in reflection, all at a versatile 23mm optical focal length.
• When users need to zoom out, the ultra-wide camera comes into play with its 50MP Sony LYT-600 sensor. This camera delivers expansive and detailed shots at a focal distance of as near as 4cm, thanks to its large size focal length and fast f/2.0 aperture, according to Oppo.
• The Find X7 Ultra also includes software additions like the HyperTone Image Engine, giving users advanced computational photography options and features for high-quality photos.
• The flagship is equipped with Qualcomm’s Snapdragon 8 Gen 3 processor, featuring a large 5,000mAh battery capable of fast 100W wired charging and 50W wireless charging. Its 6.82-inch display offers a 1440p resolution, a maximum refresh rate of 120Hz, and a peak brightness reaching 4500 nits for HDR content.
• The Find X7 Ultra will be available in three colors: black, blue, and brown. Currently, the phone remains exclusive to the Chinese market, with no release planned for Europe or the US. Prices start at RMB 5,999 ($845) for a model with 12GB of RAM and 256GB of storage, going up to RMB 6,999 ($986) for 16GB of RAM and 512GB of storage.

Context: In the third quarter of 2023, the global smartphone market fell 1% year-on-year, to 299.8 million units sold, according to research firm Counterpoint. Today’s top five global phone brands are Samsung (with a 20% market share), Apple (16%), Oppo (14%), Xiaomi (14%), and Vivo (7%).

US chip giant Nvidia is gearing up to mass produce a range of AI chips including its H20 model for China in the second quarter of 2024, with Taiwanese electronics manufacturer Wistron picked as the major supplier of these GPU (graphics processing unit) substrate orders, according to US media outlet Wccftech.

Why it matters: Despite the US government’s ban on high-performance AI chip exports, Nvidia has developed modified AI chips for the Chinese market and is ready to ship limited sales of less powerful AI chips to China as long as they adhere to regulatory standards.

Details: Nvidia is modifying its latest AI chips specifically for the Chinese market, including the HGX H20, L20 PCle, and L2 PCle. The three chips are based on the Nvidia H100, but allow the company to comply with the latest US export control policies announced last October.

• Nvidia originally planned to start selling a modified version of these AI chips by the end of 2023, but postponed the launch to early 2024 as the China-US chip war escalated, the Wccftech report said. 
• Since then, the US government has adopted a softer stance on commercial sales in China, and Nvidia has assured the government that their chips will fully meet compliance guidelines established by US trade and commerce authorities. Last week, Nvidia launched its China-exclusive GeForce RTX 4090D, a less powerful version of the flagship RTX 4090 GPU it sells elsewhere.
• The H20 AI chip is a scaled-down version of the H100 GPU, equipped with 96 GB memory capacities that operate at speeds of up to 4.0 Tb/s, according to Nvidia. It offers computing power of 296 TFLOPs and a performance density of 2.9 TFLOPs/die, in contrast to the H100’s 1,979 TFLOPs and 19.4 TFLOPs/die.

Context: Last October, the US government issued a new ban, further restricting the export of high-performance AI chips by Nvidia. Subsequently, the chip giant announced an immediate halt to the shipment of its A100, A800, H100, H800, and L40S products.

• In December 2023, during an interview with Reuters, US Secretary of Commerce Gina Raimondo stated that the government was in discussions with Nvidia about allowing the chip firm to sell AI chips to China under certain conditions. Raimondo emphasized that the government would stop Nvidia from exporting its most complex and powerful AI chips, but would not curb its chip sales to China altogether. 

China imported 42 lithography systems (chip-making equipment) with a total value of $8.168 billion in November, mostly from the Netherlands and Japan, according to South China Morning Post. Included among them were 16 lithography machines imported from the Netherlands valued at $7.627 billion, representing a year-on-year increase of 1,050% in value of such equipment from the European chip machinery powerhouse.

Why it matters: Lithography machines are a core type of equipment in chip manufacturing, with advanced models available only at extremely high cost. The Chinese demand for lithography machines is increasing rapidly as the domestic semiconductor industry is being boosted in an effort to offset the impact of tighter US chip export controls. At the high end, only a few companies worldwide are capable of producing them.

Details: China aims to stock as much advanced lithography equipment as possible before the Netherlands’ export restrictions come into full effect in January 2024. 

• Among the 42 lithography machines imported by China in November, 16 are from the Netherlands’ ASML, the world’s largest lithography machine manufacturer, as reported by SCMP. 15 machines are from Japan’s Canon and Nikon, while the remaining 11 are reported to have come from second-hand equipment dealers in other countries.
• Although the quantity of lithography machines imported from the Netherlands in October was higher at 21 units, the total value was only $672.5 million, significantly lower than the total value of $7.627 billion for the 16 lithography machines imported in November, an average 46% more.
• The monthly unit price difference suggests that Chinese companies are continuing to acquire more advanced chip-making systems despite the US’s attempts to limit such purchases, according to SCMP. 
• Most of the equipment shipped in November obtained approval from the Dutch government by the end of 2022 or early 2023, said Jan-Peter Kleinhans, director of technology and geopolitics at Stiftung Neue Verantwortung, a German non-profit think tank based in Berlin. ASML’s lead time in 2023 was around 18 months, indicating that equipment shipped in the fourth quarter of 2023 would have been ordered in either the second or third quarter of 2022, he added.

Context: In June this year, the Netherlands announced export controls, placing restrictions on the shipment of ASML’s chip-making machines to China. Starting from September 1, ASML has been required to acquire a license for the export of its deep ultraviolet (DUV) lithography systems to China.

• Following the new rules, ASML announced that its existing licenses allowed it to continue shipping DUV lithography machines to China until the end of 2023, despite export restrictions in the Netherlands taking effect from September. 
• ASML’s export licenses necessary for shipping these systems to Chinese customers will become invalid from January 1, 2024, and are unlikely to be renewed.
• As of 2021, domestically manufactured lithography systems made up less than 5% of those used in Chinese fabs, according to SCMP’s report.

The US game developer Activision Blizzard, which has recently been in discussions with several domestic game companies regarding the revival of its Chinese service after a one-year absence, has decided to re-establish collaboration with Chinese game publisher NetEase, as reported exclusively by local media outlet 36Kr.

Why it matters: The split between NetEase and Blizzard was a major event in the gaming industry this year. On Jan. 24, 2023, the Chinese servers of Blizzard’s gaming platform were shut down, ending the World of Warcraft publisher’s 15-year partnership with NetEase in China. On Monday, most domestic gamers were shocked to hear about the potential revival of cooperation between the two gaming giants, especially after their previous relationship ultimately ended in acrimony.

Details: The relaunch of Blizzard’s games in China may have to wait for at least six months, as NetEase and Blizzard need to rebuild their domestic operations team and test the new servers after once any new deal is confirmed, according to 36Kr. 

• The return of Blizzard suggests a full restoration of gaming titles under its brand in mainland China, including World of Warcraft, Hearthstone, Warcraft III: Reforged, Overwatch, the StarCraft series, Diablo III, and Heroes of the Storm.
• News of Blizzard’s return instantly topped the trending topics chart on Twitter-like platform Weibo on Monday, with Chinese players expressing their shock at the quick reunion. NetEase declined to comment on the story, while Blizzard China stated that the company currently does not have any information or updates to share, according to Sina Tech.
• NetEase Dashen, a gaming community app, has begun to gradually update with new content on World of Warcraft since Dec. 20, as reported by Southern Metropolis Daily. Additionally, the app no longer displays previous news items regarding NetEase’s discontinuing of the operation of World of Warcraft.
• Blizzard has also been in contact with several other major Chinese gaming companies this year, including Tencent, ByteDance, and Bilibili, regarding the takeover of its domestic service, according to Cailianpress. Tencent denied the possibility of a deal, while ByteDance is currently preparing to sell its entire gaming sector, making a move highly unlikely. As for Bilibili, the performance of its games business is not very satisfactory at present, the report claimed.

Context: Blizzard announced in November 2022 that it would suspend its game services in China due to the expiration of its licensing agreements with NetEase. However, Microsoft’s acquisition of Blizzard this year and the upcoming resignation of Blizzard’s CEO have brought about a turning point in the relationship between Blizzard and NetEase.

• Bobby Kotick, the CEO of Blizzard, will resign from his position as the leader of the video game company On Dec. 29, as communicated in an internal memo from Phil Spencer, the CEO of Microsoft Gaming. The leadership transition was expected after Microsoft’s completion of the $69 billion acquisition of Blizzard in October, as reported by CNBC.

In the recently released 2023 EU Industrial Research and Development (R&D) Investment Scoreboard put together by the European Commission, Chinese tech giant Huawei has maintained its position among the top five global companies that made the highest R&D investments in 2022.

Why it matters: Huawei has been increasing R&D investment to strengthen its technological self-reliance in the face of US sanctions. This strategic move allows the telecoms behemoth to mitigate the impact of sanctions while preparing itself for long-term development amid geopolitical challenges.

Details: The European Commission’s report provides statistics on research and development (R&D) investment for the top 2,500 ranked companies. It indicates that these enterprises collectively increased their R&D expenditure by 12.8% in 2022 compared to 2021, reaching a record-breaking total of 1,249.9 billion euros. Although Huawei dropped one spot compared to the 2021 list but still secured fifth position, with an investment of 20.925 billion euros.

• In 2022, Huawei, TSMC (Taiwan Semiconductor Manufacturing Company), and CATL (Contemporary Amperex Technology Co. Limited) secured positions among the top ten in R&D investment within the Information and Communication Technology (ICT) sector. The ICT sector covers computing services, semiconductors, telecommunications, and multimedia.
• In 2022, Huawei invested 20.925 billion euros, with a year-on-year growth of 11%, while TSMC invested 4.985 billion euros, demonstrating a significant year-on-year growth of 31%. Meanwhile, CATL invested 3.072 billion euros, an explosive year-on-year increase of 110%.
• The top three countries represented on the list are the US, China, and Japan. The US leads with 827 companies on the list, investing a substantial 526.5 billion euros, while China follows closely with 679 companies who have allocated a total of 222 billion euros to R&D endeavors. Japan boasts 229 companies on the list, with a total R&D expenditure of 116.2 billion euros.
• In terms of distribution of R&D investment across regions, the US, China, and the European Union occupied the top three positions, securing shares of 42.1%, 17.8%, and 17.5%, respectively.

Context: The Chinese Academy of Engineering issued its list of 2023 Global Top Ten Engineering Achievements on Wednesday, with Huawei’s self-developed operating system HarmonyOS being recognized among them. The other nine selected achievements were ChatGPT, the Chinese space station, AMD’s Frontier (a supercomputer capable of 100 billion x billion calculations per second), the Baihetan hydropower station, the double-asteroid redirection test, the RTS,S/AS01 malaria vaccine, Spot & Atlas robots, lithium-ion power batteries, and unmanned aerial vehicles.

• In August 2023, Huawei released HarmonyOS 4.0 as a public beta version, in an effort to compete with Android and iOS. Currently, there are over 400 partners participating in co-building on and sharing of the technical foundation of HarmonyOS, according to Huawei. 
• Huawei plans to commence construction of its first European factory in France in 2024, as reported on Dec. 11. The facility is expected to focus on 4G and 5G equipment production, reinforcing Huawei’s presence in Europe.

Unitop Fitness, a Chinese fitness equipment maker, unveiled the U-trainer Plus in September, at a price of $649. Our team was given a fortnight to review the home gym. 

The U-trainer Plus enables users to exercise on their own schedule with real-time performance tracking and built-in workouts. It eliminates the need for gym memberships and, despite this meaning the lack of a supportive fitness community, the personalized nature of the smart equipment enhances individualized training. 

Assembly at home

The difficulty of assembling home fitness equipment can vary widely depending on the type of equipment, the manufacturer’s instructions, and your own level of experience and comfort with assembling items.

The U-trainer Plus arrives in two relatively large, heavy  boxes.

The entire assembly process, including unpacking, reading the instructions, watching the assembly video, and manually assembling the equipment, took four hours. Although the fitness equipment includes installation tools, the tester, with limited assembly experience, still found the process somewhat challenging. For added convenience, it is recommended to have two people to work on the assembly together, especially since some parts of the equipment are quite heavy.

It’s also worth noting that the equipment takes up a sizable space in the home. Here are some of its basic specifications:

Packaging size: 1,445 x 490 x 275mm
Folded: 702 x 992 x 2,105mm
Expanded: 1,450 x 992 x 2,105mm
Net weight (main parts): 47kg
Gross weight (including accessories): 58kg
Resistance level: 100 levels
Maximum resistance: 50kg on each side
Resistance range: 2-50kg
Maximum weight capacity: 110kg

Customized app for home workouts

The U-trainer Plus comes with an app called Unitop, which features built-in programs and the option to customize workouts according to individual fitness levels and goals.

Through the app, users can establish a Bluetooth connection between their equipment and their chosen device, enabling them to choose from various training programs and set up personalized training plans. 

Different combinations of exercises, repetition rates, and the resistance weight of the equipment are all customizable. Each training exercise in the app comes with instructional videos and detailed explanations, providing assistance for beginners and alleviating concerns about confusion during workouts.

The equipment includes a barbell rod, wrist straps, handles, deltoid ropes, and a waist belt. Users have the flexibility to choose to use the appropriate accessories based on their individual training goals. However, some functions in the app require paid membership, and the one-year membership fee is an additional expense not included with purchase of the equipment.

Motivational partner mode

The U-trainer Plus offers adjustable resistance on both sides, enabling users to exercise together with friends or family members. Although this function was not tested during our two week trial, it is an interesting option for home fitness. Typically, exercising with friends or family is more motivating than working out alone.

Dual electromagnetic motors

The U-trainer Plus is equipped with dual electromagnetic motors, ensuring a friction-free workout experience without any physical wear and tear. It allows independent adjustment for each side, with the motors supporting 100 levels of resistance weight increments, precisely adjustable at 0.5kg per level. This enables users to train with a maximum resistance weight of 50kg on each side, totaling 100kg.

Workout at home with ease

The U-trainer Plus suits individuals who are seeking privacy, convenience, and a focused exercise environment at home. It enables users to engage in personalized workouts without the distractions or potential discomfort associated with public gyms. 

The equipment set seamlessly transitions between different functions, serving as a cable machine, a rowing machine, or a boxing machine. This provides users with the opportunity to engage in a comprehensive, low-impact workout that effectively targets a wide range of muscle groups throughout the body.

While home workouts offer convenience and flexibility, they may lack the social element found in traditional gym settings, which can serve as a significant source of motivation for some individuals. 

Therefore, the potential impact and value for money of this fitness equipment varies completely based on an individual’s personality, as some people may lack the motivation to exercise at home. While it provides virtual coaching and tutorials, it may not be a substitute for in-person guidance from a certified fitness professional, especially for beginners who need more personalized instruction and support.

Conclusion

The choice between using smart fitness equipment at home or going to a traditional gym depends on individual preferences, lifestyle, and fitness goals. It is essential to weigh the advantages and disadvantages to determine the best fit for an individual’s needs.

But the U-trainer Plus is suitable for fitness enthusiasts with a basic level of exercise awareness who enjoy working out at home. Beginners or those who prefer the atmosphere of a gym should carefully consider their purchase.

Pros:

Convenient and flexible at home option
Individualized training to fit different fitness levels
Customized app with built-in programs
Motivational partner mode
Dual electromagnetic motors
Comprehensive workouts targeting all muscle groups

Cons:

Assembly may be challenging for one person
Extra charges for certain features in the app
Lack of social element compared with traditional gyms
Challenging for beginners who need in-person guidance

Xiaomi on Tuesday released a statement refuting an apparent claim made by senior Huawei executive Yu Chengdong that Xiaomi’s dragon bone hinge technology for its foldable phones is a direct copy of Huawei’s dual rotating water drop hinge. Yu, the CEO of Huawei’s consumer department, made these comments during a company event last week; Xiaomi has said the accusation is “seriously inconsistent with the facts.”

Why it matters: One of the key elements of foldable phones lies in their unique hinge design, which directly influences the phone’s folding mechanism and screen creases. The controversy between Huawei and Xiaomi, two of China’s biggest phone brands, reflects intensifying competition in the foldable phone market.     

Details: In the statement, Xiaomi posted detailed comparisons, including the application dates, publication dates, and technical features of relevant patents. Both the design concept and mechanical structure of their dragon bone hinge are completely different from Huawei’s dual rotating water drop hinge, according to the statement, which was posted to the company’s account on the Twitter-like Weibo platform.

• “Some companies directly copy our technology and then claim it as their own invention. The concept of the dragon bone hinge is fundamentally non-existent, as they’ve transformed our double rotating water drop hinge into a dragon bone hinge,” said Yu during an annual Huawei event on Dec.10. “Once competitors make modifications, this technology becomes their own,” he added.
• While he didn’t explicitly name the rival phone brand, Yu’s remarks were widely interpreted as an attack on Xiaomi, which launched its new generation of foldable flagship, the Xiaomi MIX Fold 3, in August and is the only phone brand on the market to use what it terms a dragon bone hinge.
• According to Xiaomi’s statement, the dragon bone hinge was patented on September 18, 2020, and received patent authorization on January 5, 2021. Huawei’s dual-rotating water drop hinge was only publicly disclosed on June 18, 2021, though it was patented on December 13, 2019. 
• Xiaomi’s dragon bone hinge features a “three-level rod, five-component, seven-low-friction design,” the statement continued, while Huawei’s dual rotating water drop hinge is described as a “two-level rod, three-component, four-low-friction design.” 
• Furthermore, Huawei’s current three-level rod patent was applied for on October 29, 2021, and was publicly disclosed on May 5, 2023, but it has not yet entered mass production, according to Xiaomi.
• In the concluding part of the statement, Xiaomi emphasized that Yu Chengdong should adhere to “the basic principles of science” and refrain from misleading the public.

Context: Research firm TrendForce‘s report indicates that the anticipated shipment of foldable smartphones in 2023 is around 18.3 million units, with a year-on-year increase of 43%. Huawei’s estimated shipment of foldable smartphones this year is expected to reach 2.5 million units, according to the same report.

• The Xiaomi MIX Fold 3 set a new record for Xiaomi upon its release, with sales increasing 2.25 times compared to the previous generation, according to the company’s second quarter financial report.
• In the third quarter of 2023, sales of foldable smartphones in the Chinese market reached 1.98 million units, representing a year-on-year increase of 175%, according to CINNO Research. In terms of brand ranking, Huawei occupied the top spot with a market share of 28.6%, while Xiaomi was in sixth place with a market share of 8.7%.

A recent report by Taiwanese media outlet DigiTimes suggests that Chinese panel manufacturer BOE is facing challenges in expanding its OLED (organic light-emitting diodes) supply for Apple’s iPhone 15 models, primarily due to light leakage issues. 

Why it matters: If BOE fails to address the light leakage problem, there is a high possibility that they may lose potential orders for the iPhone 15 and iPhone 16 from Apple.

Details: The current yield rate of BOE’s OLED panels for the iPhone 15 has dropped to 30% on the back of the issue, causing a decrease in production output, according to the DigiTimes report. 

• BOE has been selected to supply OLED panels for the iPhone 15 and iPhone 15 Plus. However, the supplier encountered a problem with light leakage, specifically in the panels designed for the standard models. The issue revolves around the Dynamic Island on the OLED display, where the hole punch and the pill-shaped cutout housing the TrueDepth camera sensor and FaceID are located.
• Given the light leakage issue and potential impact on iPhone sales, BOE may face challenges in expanding orders from Apple, which in turn would impact its revenue. According to industry analysis, BOE was expected to supply 5 million to 15 million panels for the iPhone 15 this year. However, due to lower production yields, the actual supply may be limited to a range of 2 million to 3 million panels.
• As Apple shifts its focus to the next-generation iPhone 16 series, avoiding light leakage is becoming more challenging, especially with larger panels. The iPhone 16 and 16 Plus are expected to feature OLED panels similar to the iPhone 15 and 15 Plus, while the Pro series may sport larger sizes, according to US media outlet Wccftech. The iPhone 16 Pro is anticipated to come with a 6.3-inch display, larger than the 6.1-inch display on the iPhone 15 Pro.

Context: Samsung also manufactures OLED panels for the iPhone 15 lineup, holding a dominant 91% share of the supply from June to August this year, according to DigiTimes. If the issue of light leakage persists, Samsung’s greater efficiency would become a significant concern for BOE in the short term.

• In terms of the foldable panel market, Samsung is anticipated to uphold its leading position during the third and fourth quarters of this year, commanding a 74% market share, according to Korean media outlet Business Korea. While this represents an increase from the second quarter’s 63%, it marks a decline of 17% from the 91% share it held during the same period last year. 
• BOE, which previously held a 4% market share in the foldable panel market during the third and fourth quarters of 2022, is projected to surge to 18% in the same period this year. This growth can be attributed to its supply to Chinese foldable smartphone manufacturers such as Huawei, Honor, and Oppo.

On Tuesday, Oppo smartphone subsidiary OnePlus unveiled its flagship series OnePlus 12 just in time to celebrate the brand’s tenth anniversary on Dec. 16. To showcase the specifications of the new device, OnePlus China’s CEO Li Jie spent a full three hours describing it in detail at the launch event, making regular comparisons to Xiaomi’s 14 Pro throughout.

Why it matters: The launch of OnePlus’ new flagship is a direct challenge to Xiaomi and its subsidiary Redmi, as the Oppo sub-brand looks to focus on high-quality smartphones with cutting-edge features offered at competitive prices. 

Details: At the launch event, OnePlus repeatedly compared the OnePlus 12’s software and hardware capabilities with those of the Xiaomi 14 Pro, emphasizing its starting price of RMB 4,299 ($606), compared to the latter’s RMB 4,999 ($705).

• The OnePlus 12 features a 2K BOE screen with medical-grade eye protection, the Find imaging system created in collaboration with Hasselblad, and the latest Snapdragon 8 Gen 3 chipset.
• OnePlus claims to have worked with Chinese display panel maker BOE for the past two years to create the 2K BOE screen for the OnePlus 12. The screen boasts medical-grade eye protection and industry-leading peak brightness of 4,500 nits. 
• The OnePlus 12 offers a camera setup that includes a 50 MP Sony LYT-808 sensor, a 48 MP IMX481 ultra-wide-angle lens, and a 64 MP Omnivision OV64B periscope telephoto lens with 3x optical zoom. For selfies and video calls, it is equipped with a 32 MP Sony IMX615 sensor at the front. The Find camera system is enhanced with Hasselblad branding and tuning technology, ensuring a high-quality imaging experience, according to OnePlus.
• The new flagship comes with a Qualcomm Snapdragon 8 Gen 3 processor under its hood. Working in conjunction with the Adreno GPU, the smartphone aims to achieve an improved gaming performance, thanks to the PixelWorks X7 Visual processor, as claimed by the company.
• The phone has a 5,400 mAh dual-cell battery, marking the largest capacity ever applied in a OnePlus device. It can charge at up to 50W via the company’s self-developed AirVOOC technology, which is three times faster than the 15W rate of Apple’s MagSafe wireless chargers. 
• The entry level model with 12GB RAM + 256GB storage is priced at RMB 4,299 ($606), while the premium version of 24GB RAM + 1TB storage is available at RMB 5,799 ($818). The phone is available in black, green, and white.

Context: In June 2021, OnePlus announced it had merged teams with Oppo, its parent company, to streamline its operations. 

• According to market research platform Counterpoint, Oppo and Xiaomi accounted for 14% of each of global smartphone shipments in the third quarter of 2023, with both firms shipping around 41.5 million units. Oppo’s data includes figures for its OnePlus brand.
• The Xiaomi 14 and 14 Pro, the first phones to feature the Qualcomm Snapdragon 8 Gen 3 chipset, were launched on Oct. 26 in China. The two smartphones are currently only available in China but are expected to launch globally in early 2024.
• OnePlus founder and chief product officer Liu Zuohu stated at the anniversary event that OnePlus smartphones are available in 10,000 Oppo offline stores in China.

Chinese-owned semiconductor company Nexperia announced on Monday that the Dutch government has approved its acquisition of Nowi, a Dutch semiconductor startup. Previously, the Dutch government had been investigating the transaction on the grounds of national security.

Why it matters: In June, the Dutch government introduced the Act on Security Screening of Investments, Mergers and Acquisitions (Vifo Act), which includes the scrutiny of sensitive technologies such as photonics, quantum technology, and semiconductors. However, despite the influence of export sanctions led by the US, the Dutch government’s approval of Nexperia’s acquisition indicates that the Netherlands may still be open to business with China.

Details: The Dutch Minister of Economic Affairs Micky Adriaansens stated in a letter to the Dutch parliament on Nov. 27 that there are no legal objections to the acquisition of Nowi by Nexperia, according to Bloomberg. 

• Established in 2016, Nowi, is a semiconductor startup based in Delft, in the western Netherlands. The company specializes in manufacturing power management chips capable of harnessing ambient energy sources such as light or vibrations, offering a promising solution to eliminate the reliance on batteries in basic electronic devices. In November 2022, the company announced that it would be acquired by Nexperia. 
• In June of this year, the Dutch government initiated an investigation into the Chinese firm’s takeover of Nowi, based on the Vifo Act that came into effect on June 1. The Dutch government stated at the time that it would order the cancellation of the transaction if the deal was found to affect national security.
• On Monday, Nexperia issued an announcement in response to the Dutch government’s final decision. The retrospective effect of the Vifo Act is applicable only to military or dual-use items, and it is evident from the government’s assessment that Nowi’s products do not fall within this category, the company said. After a “period of uncertainty,” Nexperia and Nowi are “able to further realize their ambitions in the Dutch chip ecosystem,” the announcement added.
• In the current climate, it is crucial to establish a well-defined policy that enhances the investment environment in the Netherlands, said Charles Smit, director of Nexperia Netherlands. A transparent and fact-based communication channel between the government and businesses is essential during these times, he asserted.
• Having access to the production, sales and marketing infrastructure of a leading chip manufacturer allows Nowi to bring products to market faster and therefore have a greater impact, according to Simon van der Jagt, co-founder and former CEO of Nowi.

Context: Based in the Netherlands, Nexperia is a subsidiary of the partially state-owned Chinese company Wingtech Technology. The semiconductor firm has a workforce of over 15,000 spread across Europe, Asia, and the US. Nexperia’s components are used in automotive, industrial, mobile, and consumer industries.

Chinese mobile phone company Honor issued an internal announcement on Wednesday stating that the former Huawei sub-brand plans to optimize its equity structure and attract diversified capital through an initial public offering (IPO), as reported by local media outlet Icsmart. Honor has not announced a timeframe or a location for the upcoming listing.

Why it matters: The announcement comes three years after Huawei was effectively forced to sell Honor in November 2020 to help the sub-brand bypass the restrictions imposed upon Huawei by US sanctions. Bought by a state-owned enterprise in Shenzhen, Honor has since emerged as a leading phone brand in the Chinese market.

Details: As part of its preparations for the IPO, Honor has made adjustments to its board of directors: Wu Hui will serve as the new chairperson, while the former chair Wan Biao becomes vice chairperson.

• Following Xiaomi and Transsion, Honor may become the third domestic phone company to go public, according to Jiemian. Xiaomi is listed on the Hong Kong stock exchange and currently holds a market capitalization of HKD 377.8 billion ($48.87 billion), while Transsion’s market capitalization is valued at RMB 95.6 billion ($13.36 billion). 
• Ever since Honor’s spin off from Huawei, there has been speculation in the industry about a possible listing for the handset maker, including the possibility of a backdoor listing through Transsion.
• Honor resumed allocation of shares around June of this year, primarily targeting distribution partners at the municipal level in each province, according to the aforementioned report from Jiemian. Additionally, Honor has initiated an employee stock allocation program, with high expectations for the company’s listing among its staff.
• At the end of 2022, Honor completed another round of strategic financing, adding six new shareholders, with leading display-panel industry player BOE among them.
• The newly appointed chair, Wu Hui, previously served in the Shenzhen municipal committee office, before later being transferred to work in the Hubei provincial government and the municipal government in Xianning, a city in Hubei. In April 2021, Wu Hui returned to Shenzhen and took on the role of chairman of Shenzhen Environmental Water Group.
• Vice chair Wan Biao was once a key figure in Huawei’s consumer business department. He joined Huawei in 1996 and held various positions such as president of Huawei’s wireless product line, president of its terminal company, and COO of its consumer business department. In November 2020, Wan Biao joined Honor and became its chairperson.

Context: In the third quarter of 2023, Honor secured the top spot in the domestic smartphone market with a shipment share of 19.3%, according to research firm IDC. 

• During July to September of this year, Honor released three foldable devices, namely the Magic V2, V Purse, and Magic Vs2, aiming to establish a strong presence in the high-end phone segment. 
• In the third quarter of 2023, the Chinese foldable smartphone market continued its rapid growth trend, reaching a shipment volume of 1.96 million units, an increase of 90.4% year-on-year, according to the same report from IDC. Honor captured a market share of 15.1%, ranking fourth in this segment.

Oppo launched its latest high-end foldable phone, the Find N3, on Oct. 19, highlighting advances in screen, imaging, security, and system interaction. The 12GB+512GB variant is priced at RMB 9,999 ($1,392), while the collection edition with 16GB+1TB storage costs RMB 12,999 ($1,810). The new device comes in three colors: green, gold, and black. Our team was given a fortnight to review a black 12GB+512GB model.

The Find N3 is a stylish device, albeit slightly weighty in the hand, with a dual high-resolution display, and a processor that plays to its visual prowess. The Snapdragon 8 Gen 2 processor ensures a steady performance, placing it among the top foldable smartphones currently available. 

Mature leathery design

The leather case with a discernible grain offers users a comfortable grip and a pleasant feel. In terms of dimensions, when folded, the device feels hefty both in the hand and pocket compared with other non-foldable devices’ lightweight profiles. However, for a foldable device, the Find N3 surprises with its relatively lightweight, coming in at approximately 239 grams. The device boasts a thin profile, measuring a mere 5.8mm when unfolded and 11.7mm when closed.

In terms of overall appearance, the Find N3 leans towards the classic, giving it a business look. This is an aesthetic geared somewhat towards older generations.

LTPO technology and durable hinges

The Find N3 unfolds to a 7.82-inch screen with a resolution of 2,440 x 2,268 pixels, and the outer cover screen measures 6.31 inches with a resolution of 2,484 x 1,116 pixels. LTPO (low-temperature polycrystalline oxide) technology makes a smooth 1-120Hz dynamic refresh rate possible for fluid scrolling and gameplay, with up to 2,800 nits peak brightness.

Both screens are covered in toughened glass, improving drop resistance and strength. In addition to IPX4 splash resistance, the Find N3 is the first phone to be independently tested to withstand one million folds by TÜV Rheinland, according to Oppo. The phone’s crease is not visible unless you look at it from a certain angle.

Enhanced imaging performance

The Find N3’s camera system is branded by Hasselblad and sets new benchmarks in its category. It features two selfie cameras, with a 20MP camera inside and a 32MP camera on the cover screen. On the back, there is a 48MP LYTIA-T808 sensor from Sony, which is a 1/1.43″ sensor equipped with dual-layer transistor technology. This technology ensures great light sensitivity and ultimately leads to improved image quality.

The device’s day and night time photography capabilities stand out within the foldable phone category, as evidenced by the following images. In portrait mode, photos have a great sense of contrast, even in low light.

Snapdragon 8 Gen 2 powers high-performance gaming

The Find N3 features the Snapdragon 8 Gen 2 with 16GB of LPDDR5X RAM and 512GB. Qualcomm unveiled the Snapdragon 8 Gen 3 at its Snapdragon Summit on Oct. 24 but as no foldable phone currently on the market features the new processor yet, the N3 is the most powerful in its category. Our two-hour test of the mobile game Honor of Kings revealed stable performance without any overheating. Stereo speakers also enhance gameplay.

Users can play the same game on two different screen sizes: unfolded and folded. Although the display size and games have been adjusted to some extent, the gaming experience may feel quite different to what users are used to when the phone is unfolded. Gaming enthusiasts be warned that, folded, it also takes some time to get used to the phone’s thickness.

High-capacity battery 

The Find N3 is equipped with a high-capacity 4,850mAh battery. For reference, the iPhone 15 Pro features a battery rated at 3,274mAh. Our practical tests have shown that the new Oppo phone’s battery life can support a full day’s use even under moderate or high-intensity usage. The phone also supports 67W fast charging technology and can be fully charged in around an hour.

Privacy protection and office functions

The Find N3 offers multiple privacy protection functions, including a security chip with national encryption certification, file encryption technology, and end-to-end cloud transmission encryption. The device is equipped with a button on the side, allowing users to easily switch to “VIP” mode, which disables the camera, microphone, and location permissions in one go. 

On the software interaction front, the Find N3 improves office efficiency by enabling users to directly access files made in Apple’s office trio Keynote, Pages, and Numbers, as well as CAD engineering drawings. This breaks down a barrier between Android and Apple, enabling seamless file sharing.

Conclusion

The Oppo Find N3 performs well in terms of chipset performance, screen quality, camera capabilities, and battery life, setting a new benchmark in the foldable smartphone category. It is just as well that the Find N3 is suitable for business professionals, as its relatively high price excludes many other consumer groups.

Pros

• Thin and lightweight entrant in the foldable category
• Leathery design for a firm grip
• LPTO screen with 120Hz adaptive refresh rate
• Great camera performance for a foldable phone
• Large battery and 67W fast charging technology
• Self-developed security chip

Cons

• Slightly heavy for long-time use and carrying in the pocket 
• Gaming on the device takes some getting used to
• No wireless charging support
• Expensive

In the third quarter of 2023, the import of chip-making equipment by China surged by 93% compared to the same period last year, reaching a total value of RMB 63.4 billion ($8.75 billion), according to data from China’s customs authorities, as reported by Japanese media outlet Nikkei. In terms of product categories, the import of lithography equipment, a key part of the chip-making process, skyrocketed nearly fourfold.

Why it matters: The US began attempts to control the export of advanced chip-making equipment to China last October, with Japan and the Netherlands following suit this year, but these new figures show the issues with enforcing such controls rapidly. As the lead time for chip-making equipment from order placement to delivery is between six months to one year, many Chinese manufacturers had already placed a large number of orders for chip-making equipment from the latter two countries last year, likely in anticipation of a ban.

Details: Although the Netherlands has implemented policies restricting the export of advanced semiconductor equipment to China, imports of semiconductor equipment by China from the country in the third quarter nevertheless increased rapidly. 

• According to data presented by Nikkei, the US accounted for only 9% of semiconductor equipment imported into China in the third quarter, significantly lower than its 17% share during the same period in 2021. Japan’s share also decreased from 32% to 25%, while the Netherlands saw an increase from around 15% to 30%.
• The data from China’s customs authorities reveals that the import value from the Netherlands skyrocketed by over six times in the third quarter compared to the same period last year, rising to 2.44 billion euros. A significant portion of this increase is attributed to lithography machines produced by Dutch market leader ASML. Imports of these machines from Japan grew by approximately 40%, while lithography equipment imports from the US increased by 20%.
• Compared with the second quarter of 2023, ASML’s sales revenue from China doubled from 24% to 46% of the firm’s total in the third quarter, amounting to 2.44 billion euros, according to the company’s financial report. In the first quarter of this year, ASML’s proportion of sales revenue generated by China was only 8%.

Context: According to the Netherlands’ new regulations on semiconductor exports, ASML’s lithography systems require an export license from the Dutch government for shipment. However, a statement from ASML indicated that the company believes its existing licenses still allow it to continue delivering lithography machines to China until the end of 2023, despite the export restrictions taking effect in September.

• ASML dominates the lithography market with an 82.9% market share followed by Canon and Nikon. It holds a market share that is over eight times greater than second-place Canon.

Following a year of negotiations, Tencent and Meta have made a deal for Tencent to  exclusively sell Meta’s VR (virtual reality) glasses in China from late 2024, The Wall Street Journal has reported.

Why it matters: As social media platforms Facebook and Instagram are banned in China, the return of Meta to the Chinese market is unexpected. It remains unclear if Tencent requires government approval to sell Meta’s devices due to the absence of VR-related government regulations in China.

Details: The agreement provides Meta with a fresh opportunity to tap into China’s expansive consumer market, a door that closed when access to Facebook was restricted in China in 2009.

• The VR glasses will offer consumers more affordable lenses compared to Meta’s existing Quest 3 headset, which is currently priced at around $500 in the US, according to The Wall Street Journal. The less expensive device is scheduled for sale in various international markets in addition to China in 2024. 
• Insiders told the WSJ that Meta will receive a larger share of hardware revenue, while Tencent will obtain a higher proportion of revenue from content and services. The Chinese version of the VR headset will offer games and apps distributed by Tencent.
• Meta’s current lineup of VR headsets includes the 2023-released Quest 3, the 2022-unveiled Quest Pro, and the Quest 2, which went on sale in 2020. The upcoming VR device from Meta may be named Meta Quest 3 Lite, with an estimated price of $199 for the basic model, according to Chinese media outlet Cailian Press. This new product may feature a modified chip that will impact upon its performance due to its low cost.
• In its third-quarter financial report on Oct. 25, Meta disclosed that its Reality Labs unit, which develops metaverse-related technologies, experienced an operating loss of $3.74 billion. Revenue in the virtual reality and augmented reality division dropped 26% during the reporting period, falling to $210 million from $285 million a year earlier.

Context: Global shipments of augmented reality and virtual reality headsets went through a decline for the fourth consecutive quarter in the second quarter of 2023, dropping by 44.6% year-on-year, according to data from market research firm IDC.

• Meta emerged as the dominant player in the headset market during this period, occupying an approximately 50% market share, according to the same report from IDC. Sony and Pico (the headset division of TikTok parent ByteDance) secured second and third places, respectively.
• On Nov. 7, in response to a decline in global demand for VR headsets, Pico reportedly initiated a significant round of job cuts, marking its most substantial overhaul since being acquired by TikTok’s owner two years ago.

The CEO of Chinese GPU (graphics processing unit) maker Moore Threads, Zhang Jianzhong, sent an open letter to staff on Monday, stating that the company would begin layoffs within a week, according to a report by local media outlet Icsmart. In the letter, which comes just weeks after the company was added to the US government’s restricted Entity List, Zhang also said “There are no darkest hours for Chinese GPU makers, only boundless possibilities.” 

Why it matters: On Oct. 17, the US government implemented a series of new restrictions, limiting the export of more advanced AI chips and semiconductor equipment to China. As one of 13 Chinese companies now added to the Entity List, Moore Threads and its subsidiaries have been substantially impacted by the policy.

Details: In his letter, Zhang directly blamed the impact of US sanctions on Moore Threads’ personnel cuts. The company will now undergo a restructuring, with plans to establish two new divisions: an AI strategy group and a metaverse computing strategy group.

• The exact number of employees facing layoffs at Moore Threads has not been disclosed, and the size of the company’s total workforce before the job cuts remains unknown. However, the company’s LinkedIn page shows a range of 500 to 1,000 employees.
• In the open letter, Zhang claimed that the entire domestic GPU and AI chip industry has been severely impacted by the new limits, but that nothing could deter the company’s determination to move forward. Moore Threads will continue to build high-quality GPUs in China at the juncture between challenges and opportunities, he stated.
• To address the challenges brought by the external environment and policy changes, Zhang announced a three-year plan. The company will focus on four key areas: accelerating independent research and innovation, refining high-quality products, promoting application implementation, and building efficient teams.
• On Oct. 31, the spokesperson for the China Council for the Promotion of International Trade, Zhang Xin, stated that the US measures violate market economic principles and international trade rules, exacerbating fragmentation and risks in the global semiconductor supply chain. 

Context: Established by Zhang, the former global vice-president of Nvidia and general manager of Nvidia China, in October 2020, Moore Threads is a Chinese technology company specializing in graphics processing unit design. The firm has developed two consumer-grade cards for China’s domestic gaming segment, including the MTT S80 and the MTT S70. 

• Chinese retailers are currently offering promotions for the annual 11.11 Singles’ Day shopping festival. Among these deals, the MTT S80 and MTT S70 GPUs are available at their lowest prices ever. The MTT S80 has been reduced from RMB 2,999 ($412) to RMB 1,199 ($165), while the company has cut the original price of the MTT S70 from RMB 2,499 ($343) to RMB 899 ($124).

On Thursday, China’s Ministry of Industry and Information Technology issued guidelines on developing humanoid robots, stating that the robots may be the next groundbreaking products to reach consumers after computers, smartphones, and new energy vehicles. The government’s “Opinions on the Innovation and Development of Humanoid Robots” outlines goals and timelines for the new sector in China.

Why it matters: Humanoid robots incorporate advanced technologies, including artificial intelligence, high-end manufacturing, and new materials. With the potential to be a new competitive frontier in future industries, the government plans to promote innovation in key technologies by strengthening policies and mobilizing resources, given that China’s humanoid robot industry is in its budding phase.

Details: According to the guidelines, China expects to have a domestic ecosystem for humanoid robots established by 2025. By that time, robotic products are likely to be in mass production, fast catching up with international contenders.

• The ministry’s guidelines outline ambitious goals. By 2025, the country aims to nurture two to three world-beating companies, establish a cluster of specialized small- and medium-sized enterprises, and create two to three industrial development hubs. 
• By 2027, China is expected to establish a reliable industrial supply chain, with products from this sector seamlessly integrated into the real economy, as stated in the guidelines.
• The guidelines propose promoting artificial intelligence technologies with a focus on breakthroughs in key areas such as the “brain”, “cerebellum” and “limbs.” The “brain” encompasses core technologies of humanoid robots based on large AI models, while the “cerebellum” involves the robot’s environmental perception, behavior control, and human-machine interactive abilities. The “limbs” refers to humanoid mechanical arms, hands, legs, and feet. The emphasis is on addressing key technologies, including lightweight skeletons, high-strength body structures, and high-precision sensors.
• The guidance also outlines measures for expanding the application of humanoid robots in specific areas, including electronics, automotive, healthcare, services, agriculture, logistics, and even specialized industrial environments where humans currently undertake dangerous tasks in harsh conditions.

Context: The global market for humanoid robots, valued at $1.11 billion in 2022, is projected to experience a compound annual growth rate (CAGR) of 21.1% from 2023 to 2030, according to a report by Grand View Research. There is already rising demand from public and corporate subsidy funds for specific goals, guiding research in humanoid robotics, as well as progress in various fundamental aspects of this field like improved AI, natural language processing, and robot dexterity.

Chinese telecom giant Huawei has applied to register the trademark Far Ahead in the fields of transportation tools and scientific instruments, according to China’s trademark platform Tianyancha. “Far ahead” became a trending term on the Chinese internet after the surprise early release of Huawei’s Mate 60 series of smartphones in August, which came with advanced chipsets despite the Chinese tech company being a major target of US sanctions. The trademark is currently pending review. 

Why it matters: Having seen its tech capabilities limited by US chip sanctions, Huawei has ridden a wave of nationalist approval in China following the release of its Mate 60 line, which came equipped with a better chip and higher processor power than many industry observers had thought possible. 

Details: Yu Chengdong, CEO of Consumer Business at Huawei, has repeatedly used the phrase “far ahead” to describe the tech gap between Huawei and its competitors during product launches. Huawei fans often use the phrase as a rallying call on social media. Huawei’s detractors have also utilized this term to satirize the company’s advertising and messaging.

• Huawei’s use of the term “far ahead” first came at the launch event of its Mate 40 smartphone in 2020, according to local media outlet ThePaper. During a presentation of the Mate 40’s features, Yu used the phrase 14 times. Last year, Yu again used “far ahead” to describe the advanced satellite messaging function of the Huawei Mate 50 series, further boosting the popularity of the phrase in China.
• In August 2023, Huawei launched the Mate 60 Pro series, featuring the self-developed Kirin 9000s chip, manufactured in China by Semiconductor Manufacturing International Corp (SMIC). Related short videos with the tag “Far Ahead” went viral on the Chinese internet. For instance, videos on Douyin (the Chinese version of TikTok) with this tag have gained 960 million views.
• Huawei reportedly plans to ship between 60 to 70 million smartphones in 2024. Sources have told local media outlets that Huawei has placed sufficient orders from its supply chain to guarantee the fulfillment of this shipment goal for the year 2024.
• On Oct. 27, Huawei released details of its sales performance for the first three quarters of 2023. During this period, the firm achieved sales revenues of RMB 456.6 billion ($62.39 billion), representing a year-on-year increase of 2.4%, with a net profit margin of 16%. Huawei stated that these results were in line with expectations, though the company did not disclose specific figures for its various business streams during the period.

Context: Thanks to the newly launched Mate 60 series, Huawei’s domestic shipments in the third quarter increased by 37% compared to the same period last year, according to market research firm Counterpoint. Huawei’s share of China’s smartphone market has risen to 14%, making it the fifth largest company in the sector. 

• On Monday, Huawei announced that downloads of its HarmonyOS 4, which was unveiled in August, had topped 100 million. One of the key updates in HarmonyOS 4 is the ability to customize the home screen, allowing users to change system fonts, colors, clock styles, and widgets according to their preferences.

Xiaomi Group on Thursday unveiled its new operating system, the Xiaomi HyperOS, and its new flagship smartphone Xiaomi 14 series. CEO Lei Jun said the company’s strategy had moved beyond “smartphone connections to AIoT (Artificial Intelligence of Things)”, and now entailed having the “phone, home, and vehicle all within an ecosystem.”

Why it matters: The Xiaomi 14 smartphone series showcases the Xiaomi HyperOS, an Android operating system that uses Xiaomi’s self-developed Vela system that enables the phone to connect with other AIoT devices. The lineup is touted by Xiaomi as the first flagship smartphone driven by Qualcomm’s latest processor Snapdragon 8 Gen 3, unveiled on Wednesday.

Details: In the next two years, Xiaomi HyperOS will replace its MIUI operating system across every Xiaomi smart device, as the company seeks to build a comprehensive ecosystem.

• Xiaomi plans to invest RMB 100 billion ($13.66 billion) in research and development (R&D) over the next five years, Lei Jun revealed at the launch event. Xiaomi also revealed that in 2022 it had invested RMB 16.2 billion ($2.21 billion), or 0.53% of its national R&D expenditure. 
• Xiaomi HyperOS is a cross-platform operating system that has been in development for seven years, involving 5,000 engineers, according to the company. Aiming to create a “people-vehicle-home” interactive ecosystem, Xiaomi has integrated its self-developed Vela system with a modified Linux system.
• The Xiaomi 14 series comprises the Xiaomi 14 and Xiaomi 14 Pro, both carrying the latest Qualcomm Snapdragon 8 Gen 3 chipset, as well as Xiaomi’s own Loop LiquidCool technology for heat dissipation. Both models feature Leica Summilux optical rear lenses.
• The latest Snapdragon 8 Gen 3, built using TSMC’s cutting-edge 4nm processor, is designed for AI applications and gaming, and comes with enhanced audio and camera features. The Gen 3 offers a notable improvement on its predecessor, being 30% faster and 20% more energy-efficient. Additionally, the chipset supports LPDDR5x memory at speeds up to 4,800 MHz and can accommodate up to 24 GB of RAM.
• Xiaomi has opted for a smaller sensor for the 14 Pro, introducing the Light Hunter 900 coupled with a custom Leica Summilux lens. Despite being approximately 44% smaller than last year’s 13 Pro 1-inch sensor, the new setup is up to 80% brighter, according to Xiaomi.
• Depending on storage requirements, a new Xiaomi 14 will cost from RMB 3,999 ($546) to RMB 4,999 ($683), with the pro version costing between RMB 4,999 ($683) and RMB 5,999 ($820).

Context: At the launch event, Lei also mentioned Xiaomi’s commitment to environmental protection and social responsibility, reiterating a pledge made in August to achieve carbon neutrality and to switch to 100% renewable energy by 2040. 

• According to intelligence firm Counterpoint, Xiaomi ranked fifth place in the Chinese phone market in the second quarter of 2023 with a 14% market share.

On Tuesday, US chip giant Nvidia revealed that the US government has instructed it to immediately halt the export of certain high-end artificial intelligence chips to China, as regulators have expedited the enforcement of new restrictions, which were originally scheduled to take effect from Nov. 16.

Why it matters: The US withdrew Nvidia’s 30-day exemption period for chip exports to China on Oct. 23, implementing the new regulation 24 days earlier than expected. Currently, Chinese customers, such as Tencent and ByteDance, can no longer obtain any AI-related products from Nvidia. 

Details: The US government notified Nvidia of the immediate implementation of export restrictions on AI chips starting Oct. 23, as per Nvidia’s announcement to the US Securities and Exchange Commission. The affected products include five GPUs (graphics processing units): A100, A800, H100, H800, and L40S.

• On Oct. 17, the US Department of Commerce announced a series of new restrictions on chip exports, addressing loopholes identified after the US imposed export limitations on chips last October. These new regulations broaden the definition of advanced AI chips and impose additional licensing requirements on chip products destined for over 40 countries and regions, aiming to prevent resale to China. According to the regulations, the new restrictions will take effect from Nov. 16.
• Following the implementation of the new regulations, Nvidia must cease shipping A800 and H800 chips to China unless it has express permission from the US government. A800 and H800 chips are alternative solutions Nvidia offered in place of the originally prohibited A100 and H100 chips, following the initial AI chip export restrictions imposed by the US last October. The Nvidia L40S, an advanced GPU for data centers, will also be affected by the new restrictions.
• Due to the widespread global demand for these products, the sudden acceleration of US restrictions is not expected to have a short-term impact on the company’s financial performance, Nvidia said in its announcement. 
• However, Nvidia CEO Jensen Huang earlier stated that the new ban is expected to significantly impact Nvidia’s sales in the Chinese market, though he added that the company remains committed to complying with US regulations. 
• Several AI industry professionals in China have voiced concerns and doubts over the new measures, according to a report by local media outlet TMTPost. They worry about the potential impact of the new restrictions on the future training of large-scale AI models in China, which could result in a tech gap compared to US-based AI companies like OpenAI.

Context: In August, Nvidia reported a fourfold increase in its Data Center revenue over the last two years, establishing itself as a leader in AI chips with a market share of over 70%. Nvidia’s stock continues to rise, as the company achieved a market cap of $1 trillion earlier in 2023.

• The data center sector comprises processors such as central processing units (CPUs), data processing units (DPUs), and graphic processing units (GPUs). GPUs are favored for AI applications due to their ability to handle multiple tasks simultaneously.

Chinese phone maker Oppo released its new generation foldable the Find N3 on Thursday, combining a lightweight folding design with flagship imaging capabilities for the first time. 

Why it matters: Foldable phones may offer flexible displays and portability, but their camera performance has long been a concern for customers comparing them to conventional models. The Oppo Find N3 has ushered in a “new era of foldable imaging”, the company claimed at the launch event.

Details: The camera setup on the Oppo Find N3 features Hasselblad branding and is looking to set a new standard in the foldable category. 

• On the rear, it incorporates Sony’s cutting-edge 48MP LYTIA-T808 pixel-stacked sensor, which is a 1/1.43″ unit equipped with dual-layer transistor technology. Essentially, this sensor boasts a redesigned pixel architecture that enhances light sensitivity, leading to better image quality.
• On the front, the Find N3 offers two selfie cameras: a 20MP camera inside and a remarkable 32MP camera on the cover screen. The device also includes a 48MP 1/2″ sensor paired with a 14mm f/2.2 ultrawide lens with autofocus. In terms of the zoom camera, it features a 64MP 1/2″ sensor with a 3x 70mm f/2.6 stabilized periscope lens, enabling hybrid zoom capabilities of up to 6x or 145mm.
• Under the hood, the Oppo Find N3 operates on the cutting-edge Snapdragon 8 Gen 2 flagship processor, coupled with a substantial 16GB of LPDDR5X RAM and 512GB of storage. It packs a 4,805mAh battery that supports 67W fast charging, achieving a full charge in 42 minutes, according to Oppo.
• The model follows the trend of compact, wide book-style foldable smartphones. On its exterior, it features a 6.31-inch AMOLED display with a resolution of 2484×1116 pixels and a variable refresh rate ranging from 10 to 120 Hz. The screen adopts a 20:9 aspect ratio and delivers a peak brightness of up to 2,800 nits. When unfolded, the Find N3 reveals a larger 7.82-inch display with a resolution of 2440×2268 pixels and a dynamic refresh rate varying from 1 to 120 Hz, along with the same maximum brightness level.
• The Find N3 boasts another distinctive feature in its self-developed Flexion Hinge. This hinge has undergone extensive testing of 1,000,000 folds, the company says, demonstrating the enduring durability and reliability of the foldable hinge over an extended period.
• The standard model of 12GB+512GB storage is priced at RMB 9,999 ($1,366), while the premium edition of 16GB+1TB is priced at RMB 12,999 ($1,776). It comes in four colors: red, black, gold, and green.

Contexts: In the second quarter of 2023, the global market for foldable smartphones witnessed a 10% year-on-year increase, reaching a total of 2.1 million units, as reported by Counterpoint. This growth stands in sharp contrast to the overall global smartphone market, which experienced a significant 9% year-on-year decline in shipments during the same period. 

• Notably, the Chinese foldable smartphone market saw an impressive surge of 64% year-on-year, totaling 1.2 million units. As a result, China now dominates the global foldable smartphone market, holding a substantial 58.6% share.
• On August 29, Oppo unveiled the Find N3 Flip in China, marking it as the world’s first clamshell foldable smartphone, equipped with a trio of cameras on its cover.

Apple is set to become TSMC’s largest customer for the N3E process, with plans to integrate the upgraded 3nm chip technology into its forthcoming iPhone 16 models next year, as revealed by DigiTimes on October 13. The report also mentions that the sales of 3nm chips is expected to account for 4% to 6% of TSMC’s 2023 revenue, amounting to a total value of $3.4 billion.

Why it matters: The development of advanced chips incurs significant costs, particularly in initial stages where 3nm process technology is still maturing and yield rates are low. While most companies cannot afford the high manufacturing costs of TSMC’s 3nm chips, Apple stands out with the capability to drive TSMC’s advanced chip technology forward.

Details: TSMC aims to promote mass production of the second generation of 3nm chips (N3E process) in 2024, with the iPhone 16 series slated to be the first smartphone using N3E technology, according to the exclusive DigiTimes report.

• TSMC’s second generation 3nm node, N3E, offers improved affordability and higher yield rate compared to its predecessor, N3, featured in the A17 Pro chip of Apple’s iPhone 15 Pro models launched in September 2023. The N3E process is specifically designed to enhance chip performance and reduce power consumption in devices.
• TSMC has initiated large-scale production of N3E, with plans to replace the N3 entirely with the upgraded version by 2024, according to insider information from DigiTimes. All major chip manufacturers, except Samsung, are set to adopt the second generation N3E. TSMC has secured orders from various clients, with Apple being the largest among them.
• TSMC is anticipated to gain 4% to 6% of its total revenues in 2023 from 3nm manufacturing, primarily due to substantial orders from Apple for N3 chips powering the iPhone 15 Pro models. Apple’s orders alone are projected to account for up to $3.4 billion in sales for TSMC this year.
• Jeff Pu, an analyst covering companies in Apple’s supply chain, claims that all four iPhone 16 models will feature A18-branded chips. The A17 Pro processor in the iPhone 15 Pro models is a transitional design, and the upcoming iPhone 16 models will all incorporate A18 chips, leveraging TSMC’s N3E technology, he said.

Contexts: In July, TSMC faced efficiency challenges with its new 3nm manufacturing process, achieving a yield rate of only 55%, well below the expected standard. Due to this low yield, Apple opted to pay for qualified wafer batches instead of entering into a fixed rate agreement with TSMC.

• TSMC is expected to further enhance the transistor density of the N3 family with N3P following N3E, according to TSMC. N3P, an advanced process node, will empower chip designers to enhance performance by 5% without increasing leakage, or alternatively, achieve a 5% to 10% reduction in power consumption while maintaining the same speed.

The Indian financial enforcement agency Enforcement Directorate (ED) has arrested four executives involved in the smartphone industry, including a Chinese citizen working at Vivo India, on charges related to illegal remittances, Reuters reported on Tuesday.

Why it matters: Since the border conflict between China and India in June 2020, Indian authorities have increasingly targeted Chinese companies, particularly smartphone manufacturers. The recent arrests, coupled with previous actions such as surprise raids and freezing of funds, indicate a gradual escalation of restrictions on Chinese businesses in India.

Details: Vivo responded to the arrests by expressing deep concern and stating that it will take all available legal measures to address the matter, according to the report. The company said in a statement on Tuesday that it firmly abides by the law at all times.

• Earlier on the same day, two sources told Reuters that four employees from Vivo had been arrested. However, during a court hearing, it was revealed that only one Vivo employee, identified as Guanwen Kuang, a Chinese national, had been arrested. Additional information regarding the investigation remains unclear. The ED’s counsel, Manish Jain, requested a ten-day custody period for the arrested individuals, but the judge granted only three days.
• On Wednesday, the foreign ministry of China stated that it was closely monitoring the alleged money laundering case involving Vivo in India, Reuters reported. The ministry also expressed China’s hope for India to provide a fair, transparent, and unbiased business environment for Chinese companies.
• On July 5, 2022, the Indian ED announced in a statement that it had conducted surprise inspections at Vivo India, covering 23 affiliated companies and 48 business locations. During the search operation, employees of Vivo India, including some Chinese citizens, did not cooperate with the search procedure and attempted to remove the digital devices found by the search team, according to the ED.
• In the statement, the ED mentioned a company related to Vivo India called GPICPL (Grand Prospects International Communication Pvt. Ltd.), which was registered and established in India in 2014 by three Chinese citizens named Zhengshen Ou, Bin Lou, and Zhang Jie. The ED accuses the shareholders of GPICPL of using forged identification documents and addresses during the establishment of the company. After its establishment, Bin Lou registered approximately 18 companies across various states in India, it is claimed.
• GPICPL allegedly transferred a significant amount of funds to Vivo India, according to ED. Vivo India then allegedly transferred approximately 50% of its local sales revenue ($7.87 billion) to overseas destinations, primarily mainland China. The ED states that these transfers were made to create substantial losses for the registered company of Vivo India, in order to avoid taxation in India.
• The ED accuses Vivo of violating India’s Prevention of Money Laundering Act (PMLA). As a result, the authority has frozen 119 bank accounts belonging to Vivo in India, with a total value of approximately RMB 390 million ($53 million). 
• On July 13, 2022, the Delhi High Court in India allowed the unfreezing of Vivo’s bank accounts, provided that Vivo provided a guarantee of RMB 800 million ($110 million) to the banks, according to Icsmart. The court also instructed Vivo to maintain a balance of 2.5 billion rupees ($30 million) in the accounts.

Context: In July 2023, the Indian government requested Chinese mobile phone manufacturers to induct Indian equity partners in their local operations. The companies, including Xiaomi, Oppo, and Vivo, have also been asked to appoint Indian executives in key roles such as chief executive officer, chief operating officer, chief financial officer, and chief technical officer.

• In July 2023, the Indian Ministry of Finance told the Indian parliament that major Chinese smartphone manufacturers, such as Xiaomi, Vivo, and Oppo, had evaded tariffs and illegally transferred at least 80 billion rupees ($980 million) out of India.

Huawei has obtained a smartphone microscope-camera technology patent, with the lens magnifying the photographed object from 20 to 400 times by a minimum distance of approximately 5 millimeters and the phone able to analyze the image for bacteria, according to a recently published report by the United States Patent and Trademark Office (USPTO). 

Why it matters: As competition in the phone market continues to intensify, Huawei has been striving to capture the attention and loyalty of consumers by introducing new features, and will be hoping that its microscope-camera can give it a competitive edge.

Details: At present, Huawei has not announced whether the microscope-camera patented technology will be used in the next generation of its flagship phones, but the patent has already provided details of the microscope lens and how it could be used.

• The advanced feature utilizes two cameras: one regular camera for capturing images and another micro-camera for analyzing hygiene. In the provided screenshot, the phone captures an image that includes an apple and a hand. When put into micro mode, the phone will use voice, text, or other prompts to describe the health status of the object and provide suggestions for maintaining hygiene.

• Huawei’s patent also outlined several use cases for the micro-camera, including food safety assurance, kitchen utensil maintenance, personal hygiene assessment, children’s toys inspections, and pet hygiene monitoring. For example, users could utilize the micro-camera at home to detect bacteria on a vegetable’s surface or to monitor the cleanliness of kitchen utensils and appliances, such as coffee machines and microwaves. 
• Huawei submitted this camera patent application in 2021, according to the USPTO file. The patent description specifically highlights the identification of bacterial quantities in captured images and the provision of hygiene recommendations as particular concerns, especially as the patent was filed during the height of the Covid-19 pandemic.
• In 2021, Oppo introduced the Find X3 Pro, which is capable of magnifying subjects by a maximum of 60 times. But such a function is limited to macro photography instead of microscopic images.

Context: Over 350 companies have obtained licenses for Huawei’s patents through patent pools. Under these licenses, Huawei’s licensing revenue amounted to $560 million in 2022.

• In September, Huawei and Xiaomi announced a global patent cross-licensing agreement that covers multiple communications technologies including 5G.
• In August, Huawei launched the Mate 60 series with satellite call technology, which allows users to make or receive calls without the use of traditional terrestrial signals.

TSMC is urgently seeking equipment suppliers from whom it can buy CoWoS (Chip on Wafer on Substrate) machines, as Nvidia, AMD, and Amazon expand orders for AI chips, local media outlet Economic Daily News exclusively reported on Monday. TSMC has increased its equipment orders for CoWoS by 30% to meet growing AI-fueled demand, the report claimed.

Why it matters: The AI boom has reshaped the semiconductor landscape, positioning chip-making companies as critical enablers of the tech revolution while presenting complex challenges related to supply chain resilience and technological advancement. 

Details: CoWoS is a high-density advanced packaging technology developed by TSMC for high-performance chips. The current shortage of CoWoS packaging capacity has become the main bottleneck in the production chain for AI chip orders.

• Nvidia is TSMC’s largest customer of CoWoS advanced packaging, accounting for 60% of the production capacity, according to the report. Recently, in response to the strong demand for AI computing, Nvidia has increased its orders from TSMC, while AMD, Amazon, and Broadcom have also been placing urgent orders.
• Due to its shortage of CoWoS machines, TSMC has sought the assistance of local equipment suppliers including Scientech Corporation, AllRing-Tech, Grand Process Technology, E&R Engineering Corporation, and Group Up Industrial. TSMC has increased its original equipment orders by up to 30%, with delivery expected in the first half of 2024. Mass production will commence in the second half of 2024.
• Currently, TSMC’s monthly capacity of CoWoS advanced packaging is approximately 12,000 units, sources familiar with the matter told Economic Daily News. To accommodate the proposed production expansion, the monthly capacity of CoWoS will be increased to between 25,000 and 30,000 units.
• Major customers such as Nvidia and AMD have increased their orders of TSMC wafers in the third quarter, boosting TSMC’s 7nm and 5nm advanced process capacity utilization.
• Pressure on CoWoS production capacity is expected to ease after next summer, TSMC’s president C. C. Wei stated during a recent earnings call. The Economic Daily News report revealed that TSMC has been expanding its facilities at plants including Zhuke, Zhongke, Nanke, and Longtan, so as to increase CoWoS production capacity.

Context: On September 24, Chinese media outlet IThome reported that Qualcomm’s next generation Snapdragon 8 Gen 4 may have been manufactured using TSMC’s N3E process technology, as indicated by leaked documents from Qualcomm.

• On September 8, TSMC announced net revenue for August 2023 of approximately NT$188.69 billion ($5.87 billion), representing an increase of 6.2% from the previous month.

The Asian Games 2023 will take place in Hangzhou, China, from September 23 to October 8. Esports (online gaming), included as an official event of the Asian Games for the first time, will offer seven gold medals across seven gaming titles. 

Why it matters: The 19th Asian Games have introduced Esports as a medal event, giving global recognition to this emerging form of sport alongside more familiar physical activities. In recent years, Esports has gained significant popularity worldwide, demanding a comparable level of  skill, strategy, and dedication to traditional sports.

Details: Over 15 days of competition, the Hangzhou Asian Games will award a total of 481 gold medals, including seven gold medals for Esports. 

• A total of 45 countries have registered for the Asian Games 2023, with 31 countries and regions participating in Esports, according to Tencent Games. Over 500 Esport athletes will compete for gold medals at the Hangzhou Esports Center. Completed in 2022, the Hangzhou Esports Center covers an area of 80,000 square meters, and can accommodate up to 5,000 spectators. It was designed specifically for the Asian Games Esports events and resembles a sci-fi spaceship when viewed from above.
• The Esports lineup comprises: League of Legends, DOTA 2, Honor of Kings (also known as Arena of Valor), PUBG, FIFA Online 4, Street Fighter V, and Dream Three Kingdoms 2. Of these, two gaming titles were developed by Chinese game developers. Honor of Kings was developed by Timi Studio Group (a subsidiary of Tencent Games), while Dream Three Kingdoms 2 was published by Hangzhou Electronic Soul Network Technology.
• League of Legends, DOTA 2, and Honor of Kings belong to the multiplayer online battle arena (MOBA) game genre. They involve two teams competing against each other to destroy an enemy base while defending their own base. MOBA games combine elements of strategy, teamwork, and individual skill, offering a wide range of heroes, each with unique abilities.
• PUBG, which stands for Player Unknown’s Battlegrounds, is an online multiplayer battle royale game. Players are dropped onto a remote island along with 99 other players, where they must scavenge for weapons, armor, and supplies while eliminating other players. The ultimate goal is to be the last player or team standing. The game features a shrinking play zone that forces players into closer and more intense encounters as play progresses.
• FIFA Online 4 is a free-to-play online football simulation game, belonging to the popular FIFA series. Players can create and manage their own virtual football teams, compete against other players in online matches, and participate in various game modes, including league play, tournaments, and more. The game includes a wide range of real-life football players, teams, and leagues from around the world.
• Street Fighter V features a roster of diverse characters, each with their own unique fighting styles and special moves. Players engage in one-on-one battles, utilizing a combination of punches, kicks, and special abilities to defeat their opponents. Success hinges on precise timing, strategy, and the execution of combo moves to outmaneuver opponents.
• Dream Three Kingdoms 2 is a strategy game set in ancient China. It challenges players to navigate the intricacies of diplomacy, warfare, and resource management to build their kingdoms and defeat their rivals.

Context: Originally scheduled to take place in 2022, the 19th Asian Games were delayed until this month due to COVID-19 travel restrictions.

• Vivo’s sub-brand iQOO has been chosen as the official Esports gaming phone provider, which means that all contests at the international event will use their flagship smartphones.

Chinese phone maker Honor on Tuesday released its Honor V Purse, a smartphone designed to resemble a handbag. Using optimized hinges and batteries, the new Honor V Purse is the slimmest foldable phone on the market, with a body measuring 8.6mm in its folded state and 4.3m when unfolded.

Why it matters: Three years on from its forced split with Huawei, Honor continues to try and establish its own brand identity and differentiate itself from other Chinese smartphone makers. Meanwhile, the competition for foldable smartphones is steadily increasing as more manufacturers enter this niche market; in recent weeks, major Chinese players Oppo and Huawei have introduced their own foldable devices, namely the Oppo Find N3 Flip and the Huawei Mate X5. Honor’s “handbag” design may help it stand out in an increasingly competitive market.

Details: While the Honor V Purse’s design is certainly eye-catching, its record-breakingly thin body has meant compromises have been made on performance. 

• The V Purse is powered by the Snapdragon 778G. Qualcomm released this mid-range chipset in May 2021 and updated it to the Snapdragon 7s Gen 2 on Monday. The phone’s use of an older generation of chips means that the V Purse is unlikely to be the first choice of those seeking high-performance gaming capabilities.
• In its folded state, the phone measures 156.5 x 74.7 x 8.6mm and weighs 214g. For comparison, the iPhone 15 Pro Max is 159.9 x 76.7 x 8.3mm and 221g. 
• The device offers a 7.71-inch 2K OLED display with a peak brightness of 1,600 nits,  2,160Hz high frequency PWM dimming, and a 90Hz refresh rate. The silicon-carbon batteries provide a capacity of 4,500mAh, which can last for around eight hours of regular usage.
• Designed to be worn like a handbag, the phone comes with a strap or chain and can be customized with different wallpapers on its outer screen. Honor is also selling a leather phone case to complete the purse feel.
• The V Purse comes in three color options: gold, blue, and black. The 16GB RAM smartphone provides two storage variants, 256GB and 512GB, which are priced at RMB 5,999 ($822) and RMB 6,999 ($959) respectively.
• At the product launch, Honor’s CEO Zhao Ming presented a set of data for foldable phones showing that global shipments of the devices exceeded nine million units in 2021, accounting for 4% of the high-end phone market. Shipments of foldable phones are predicted to exceed 100 million units in 2027, and make up 39% of high-end phone sales by that time, according to the data presented by Zhao. 
• Zhao also refuted recent reports that Honor is set to return to the Huawei fold. Zhao labeled Honor’s former parent company “a respected competitor” and said that competition between the two brands was a positive for the industry.

Context: In August, market intelligence firm IDC released a report that indicates the foldable phone market in China has experienced rapid growth, albeit from a low base. In the first half of 2023, 2.27 million foldable phones were shipped, a year-on-year increase of 102%.

• In the second quarter of 2023, the shipment of foldable phones in China reached 1.26 million units, an increase of 173% year-on-year. The leading five brands were Huawei (with a 43% market share), Vivo (19.7%), Oppo (15.9%), Samsung (8.9%), and Honor (7.2%).

Chinese telecoms giant Huawei is set to complete a month of high-profile statement-making moves with its autumn product launch on September 25, with the company confirming the event on Chinese microblogging platform Weibo on Thursday. The date marks the anniversary of the return to China of Sabrina Meng (Meng Wanzhou), Huawei’s chief financial officer, who was under house arrest in Canada for three years due to an extradition request from the US, where she faced fraud charges.

The announcement comes after Huawei’s much-hyped surprise launch of pre-sales for its Mate 60 Pro phone, during the visit to China of US Secretary of Commerce Gina Raimondo. The phone features a self-developed Kirin 9000S chip that uses 7nm technology despite US sanctions aimed at limiting China’s chip-developing capabilities. 

Why it matters: Huawei is hoping to re-establish itself in the mobile phone market after three years of US restrictions. The autumn launch also pits the company against two major Chinese phone manufacturers, Xiaomi and Oppo. 

Details: The launch of the new Mate series means that Huawei, Oppo, and Xiaomi have now all updated their flagship phones ahead of November 11, a major shopping festival in China. 

• Oppo launched its latest foldable offering the Find N3 Flip on August 29, the day Huawei started pre-sales of its Mate 60 Pro without warning. The following day, trending topics on Weibo were dominated by discussion around whether the Huawei Mate 60 Pro was 5G-capable or not. Huawei unveiled the Mate 60 Pro+ and Mate X5 foldable on September 8, coinciding with the official sales release of the Oppo Find N3 Flip.
• Some industry analysts have speculated that Huawei picked these dates for maximum marketing value. It was not the first time that Huawei appears to have picked a strategic date. On August 23, several industry sources said Huawei planned to hold a product launch event on September 12, the same day as Apple’s latest product launch.
• Huawei may have invested heavily in promoting its brand and products on Weibo over the last two weeks. Various hashtags related to Huawei products have featured prominently on the platform’s trending topic list, for instance #HuaweiMate60 (1.5 billions views and 238,000 discussions), #HuaweiMatex5 (600 million views and 40,000 discussions), and #HuaweiProductLaunch (200 million views and 29,000 discussions). Discussion figures are a combination of  posts, likes, comments, and forwards. 
• Xiaomi has been discreetly preparing to release its annual flagship Xiaomi 14 series at the same time. The device will be the first Android phone powered by Snapdragon 8 Gen 3 on the global market. On Wednesday, sources told IThome that Xiaomi will release its Xiaomi 14 series in early November, with products positioned in a similar manner to the iPhone 15 Pro/Pro Max. Orders placed with online and physical stores have increased by 60% compared with the same period last year, the IThome report added.
• There has been no official announcement regarding products Huawei will showcase at its upcoming launch event, though there has been speculation that the firm may introduce the Mate 60 series and Mate X5 foldable. The centerpiece of the event will be the unveiling of the Kirin 9000S 5G processor, according to local media outlet IThome.

Contexts: Huawei has enjoyed a wave of nationalistic support in China, with backing for its new products from numerous official channels and state media accounts on social media. 

• On Tuesday, Martin Yang, an analyst from US-based financial firm Oppenheimer, said that Huawei’s new flagship phones may lead to a decrease in iPhone shipments in 2024 by 10 million units.
• On Thursday, Huawei increased its 2023 mobile phone shipment target to at least 40 million units, according to industry sources.

TSMC is working with Broadcom and Nvidia to develop silicon photonics and co-packaged optics (CPO), after the  AI craze has lifted demand for data transmission, local media outlet Economic Daily News exclusively reported on Monday. The company has already formed an R&D team of over 200 employees to target emerging opportunities in high-speed computing chips based on silicon photonics technology, with production expected to start as early as the second half of next year. TSMC declined to comment on this matter.

Why it matters: The semiconductor industry has been under pressure to achieve faster data transmission speeds with zero signal delay, as AI applications flood most tech fields. This means that the traditional method of using electricity as a signal transmission medium is no longer sufficient. The cutting edge technology of silicon photonics works by converting electricity into light, significantly improving data transmission speeds.

Details: TSMC asserts that silicon photonics represents a new era for semiconductors. Douglas Yu, vice president of TSMC, stated that two key problems, energy efficiency and AI computing power, can be solved if TSMC succeeds in developing an applicable silicon photonics integration system in the upcoming years.

• SEMICON Taiwan 2023 held its grand exhibition in Taipei from September 6 to September 8, with TSMC and Advanced Semiconductor Engineering (ASE) addressing topics related to silicon photonics. Intel, Nvidia, Broadcom, and other leading semiconductor companies have all successively launched development programs for silicon photonics and co-packaged optical components, according to Economic Daily News. The overall market is projected to grow from as soon as 2024.
• TSMC is partnering with Broadcom, Nvidia, and other major customers to develop new products related to silicon photons and co-packaged optical components, citing sources familiar with the matter. These will include chip processes from45 nm to 7 nm, and are expected to enter mass production in 2025.
• TSMC has assembled a team of 200 R&D employees to target silicon photonics, aiming to introduce the new technology into CPU, GPU, and other computing processes in the future. Due to faster transmission speeds enabled by light, the computing power of these new products will be several times greater than existing computing processors. 
• With rapid advancements in transmission speeds, managing power loss and heat dissipation become the next big issues. A solution proposed by the semiconductor industry involves integrating silicon photonics components and application-specific integrated circuits (ASIC) into a single module through co-packaged optics (CPO) technology, a method both Microsoft and Meta have adopted in their new-generation network architecture.

Context：Silicon photonics is the study and application of photonic systems, which use silicon as an optical medium. Silicon photonics technology was introduced by Intel in 2010, with the challenge being the conversion from traditional electricity. Due to its relatively high cost, it is currently limited to data centers and server markets.

ASML, the Netherlands-based producer of the world’s most advanced lithography systems (chip-making equipment), has asserted that it is capable of fulfilling its contracts with Chinese customers before the end of this year, according to Bloomberg, despite the Dutch government’s new export control measures for chip-manufacturing equipment coming into effect on September 1. Under the new regulations, Dutch companies need to apply for export licenses from Dutch customs in advance if they intend to export certain high-end semiconductor-related items outside the EU. A spokesperson from ASML added that the company cannot obtain export licenses to export these products to China in 2024.

Why it matters: ASML’s commitment to fulfilling its China orders up to the end of the year will help ease some of the pressure on the country’s chip sector, which has been the subject of a series of stringent export control measures on semiconductor-related items from first the US and subsequently Europe and Japan. From January next year, the export ban on ASML’s advanced DUV (deep ultraviolet) equipment is expected to have a far-reaching impact on China’s domestic semiconductor industry chain.

Details: On June 30, the Dutch government officially introduced new semiconductor export controls, with the measures set to take effect on September 1, 2023. Prior to this date, ASML was permitted to submit export license applications to the Dutch government.

• On August 31, ASML said that the company owned licenses to ship restricted chip-making machines to China until the end of the year, despite the new export restrictions coming into effect in September. Industry observers have therefore speculated that ASML had already applied for export licenses in advance. 
• ASML is the exclusive EUV (extreme ultraviolet) lithography supplier for chip-making below 7nm, according to a report from TMTpost. The company’s most advanced EUV products were already banned from being exported to China even before the Dutch government’s new regulations. Instead, ASML mainly exports DUV lithography for chip-making above 7nm. However, in 2024, the firm will discontinue the export of DUV equipment to China since it is unlikely that new licenses will be approved by the Dutch government beyond the end of this year.
• On July 19, ASML announced its second-quarter financial report for 2023. Sales to China accounted for 24% of ASML’s total revenue in the second quarter, representing an increase of 200% year-on-year, according to the company’s financial report.
• CEO Peter Wennink stated on an earnings call that the new export control measures were unlikely to have a significant impact on the company’s revenue performance in 2023.

Context: At present, China’s import of lithography equipment depends heavily on the Netherlands. In response to new restrictions in 2024, China may increase its imports in the remaining four months of this year. However, this is clearly not a long-term solution.

• China’s lithography imports reached $3.96 billion in 2022, with the Netherlands accounting for 64.3% ($2.54 billion) of this total, according to data from China Customs. From January to July in 2023, lithography imports from the Netherlands amounted to $2.58 billion, marking a significant increase of 64.8% year-on-year.

On Tuesday, Huawei launched pre-sales of its Mate 60 Pro flagship phone on its official website without any advance publicity and two weeks before the official launch event, catching the domestic smartphone industry off guard and triggering heated online discussions. Currently, consumers can directly purchase one of a limited batch of Mate 60 Pro models with 12GB+521 GB storage, priced at RMB 6,999 ($960). This is the first time in Huawei’s history that the company has started the sale of the annual flagship before the product launch event and was reportedly in response to online leaks in advance of the device’s official unveiling in mid-September. 

Huawei did not disclose any specific details about the processor, leaving many Chinese citizens curious about the rumored return of its 5G connectivity. Currently, as far as the multi-party test results are concerned, the peak network speed of the Mate 60 Pro meets 5G network speed standards.

Why it matters: In 2019, the US government imposed a trade ban on Huawei, citing national security concerns. This move barred the company from purchasing advanced chips and using Google services for its new smartphones, causing Huawei’s smartphone sales to plummet. However, the Mate 60 Pro model, which reportedly incorporates a self-developed 5G processor, could pave the way for Huawei to recapture some of its lost share of the smartphone market.

Details: On Tuesday, the total number of Huawei Mate series mobile phones shipped worldwide reached 100 million units, according to a post from Huawei’s Weibo account. The company said that to celebrate this milestone, it was launching the Huawei Mate 60 Pro Pioneer Program, giving customers the chance to try out the latest flagship device in advance.

• Following the official release, thought to be taking place on Sept. 12, consumers will have the option to purchase the Mate 60 Pro either in physical stores or online on Vmall. Many Chinese tech bloggers have already tested the new device firsthand, confirming that its internet speed can reach up to 5,00 Mbps, similar to the speed of the iPhone 14 Pro.
• The software benchmark platform AnTuTu identified the Huawei Mate 60 Pro processor as the Kirin 9000s, Huawei’s self-developed chipset. The Kirin 9000s is designed with a 12-core configuration using a 2+6+4 architecture. It consists of two A34 cores, six customized A78AE cores, and four A510 cores. The highest clock speed it can achieve is 2.62GHz. Notably, it obtained an AnTuTu benchmark score of 699,783, surpassing the iPhone 12 Pro’s score of 683,146. For comparison, the AnTuTu benchmark score for the iPhone 14 Pro is 935,157 for overall performance.
• The new model’s CPU performance outperformed the Snapdragon 888, although it did not quite match up to the Snapdragon 8 Gen 1 and Snapdragon 8+, according to the same report from AnTuTu.
• In another noteworthy feature, the Mate 60 Pro offers support for satellite calls and messaging, albeit likely limited to China. The device uses China’s Tiantong-1 satellite system for its satellite calling feature, enabling users to make phone calls without relying on conventional terrestrial signals. 
• The Huawei Mate 60 Pro also features a 6.82-inch OLED screen with a screen resolution of FHD+ 2720 x 1260 pixels. It is equipped with a triple rear camera system, comprising a 50MP main camera with an adjustable aperture (ranging from f/1.4 to f/4.0), a 48MP 3.5x telephoto camera (with f/3.0 aperture and macro mode), and a 12MP ultrawide lens.

Context: In the second quarter, the top five smartphone brands in the global market were Samsung with a 20% market share, followed by Apple at 17%, Xiaomi at 12%, Oppo at 10%, and Vivo at 8%, according to Counterpoint.

On Thursday, NetEase announced in its unaudited financial results for the second quarter that it had generated RMB 24 billion ($3.3 billion) in revenue, a 3.7% increase on the same period in 2022. Net revenue from games and related value-added services amounted to RMB 18.8 billion ($2.6 billion), representing a 3.6% year-on-year increase.  Games accounted for 78.3% of the company’s total revenue.

Why it matters: In the second quarter, NetEase’s games, including flagship titles Fantasy Westward Journey series and Eggy Party, performed steadily. NetEase’s two new hits Justice and Racing Master were only launched in late June so their contributions to the company’s gaming revenue will show in the next quarter. With the revenue from the new titles, NetEase Games’ third quarter performance is expected to accelerate. 

Details: According to the financial reports, NetEase’s net revenue from mobile games accounted for approximately 73.6% of its online games income in the second quarter. 

• Eggy Party continues to explore the combination of UGC (User Generated Content) ecology and AI technology. Game makers recently updated the UGC map editing function using AI, drawing in 26 million players to participate in creating new gaming maps, according to NetEase’s WeChat account. Declaring that Eggy Party was China’s most downloaded mobile game in Q2, as reported by local media outlet GameLook, NetEase now hopes to  promote it in the European, North American, and Japanese markets this year.
• Released on June 30, open-world martial arts game Justice gained around 40 million domestic players in July. The game employs AI generated avatars and dialogues. Young players have flocked to the game, generating huge amounts of UGC content on social media. On micro-blogging platform Weibo’s discussion forum, Justice ranked fourth in terms of popularity for mobile games at time of writing, with 544,000 posts from players.
• Racing Master topped the iOS download list in China for 10 days following its domestic debut on June 20. According to the game’s Weibo account, its pre-registered players exceeded 30 million on June 17. The company is expected to start overseas testing soon.
• NetEase took the opportunity of unveiling its latest results to announce a brand new free-to-play open-world RPG title Project Mugen, for which pre-registration opened for players globally on Thursday.
• A trailer for the action-adventure game highlighted its anime stylings and a high-quality open cityscape supported by Nvidia DLSS 3 technology, according to GameLook. Project Mugen reportedly marks the first domestic GTA (Grand Theft Auto) game using AI technology that combines racing, parkour, role-playing, and combat in the open-world of an urban city. The industry is viewing it as an upcoming competitor to HoYoverse’s Genshin Impact in revenue terms.

Context: In July, NetEase’s Justice secured third place in the global mobile game market by revenue with a figure of $113 million, according to analytics firm SensorTower. 

• As for July’s iOS mobile game revenue charts in China, NetEase’s Justice, Racing Master, and Eggy Party ranked second, ninth, and eleventh respectively.

Semiconductor giant Qualcomm is set to work with both TSMC and Samsung simultaneously to create a new 3nm version of its Snapdragon 8 Gen 4 chip, Taiwanese media outlet Commercial Times reported on Aug 17. It seems likely that Qualcomm will only be able to secure around 15% of TSMC’s 3nm production capacity for its chips, with Apple’s upcoming iPhone 15 Pro series expected to dominate the Taiwanese firm’s output. Samsung’s 3nm process yield has significantly improved in recent months, allowing it to catch up with sector leader TSMC.

Why it matters: Adopting 3nm technology will allow Android devices using Qualcomm’s Snapdragon 8 Gen 4 to narrow the performance gap with the forthcoming iPhone 15 Pro series and its A17 Bionic chip. Qualcomm’s Snapdragon system on chip (SoC) lineup currently powers the majority of Android smartphones on the market, with the Snapdragon 8 Gen 4 processor scheduled to launch in 2024. 

Details: Qualcomm looks set to adopt a dual-source approach by partnering with both TSMC and Samsung for next year’s Snapdragon 8 Gen 4. 

• TSMC has indicated that demand for its 3nm process remains strong. The process will support HPC (High-Performance Computing) and smartphones in the second half of this year, accounting for an estimated 4% to 6% of TSMC’s wafer revenue in 2023. The firm has already received customized orders for its N3E process, its latest 3nm offering, which has successfully passed verification and is expected to start mass production in the fourth quarter.
• To meet the demand for Apple’s A17 Bionic chip, TSMC aims to reach a monthly production capacity of 100,000 units for the 3nm process by the end of the year. Compared to the 5nm process, the 3nm process is set to deliver an 18% increase in speed, while reducing power consumption by up to 30% under the same performance conditions, according to TSMC.
• Qualcomm’s Snapdragon 8 Gen 3 and MediaTek’s Dimensity 9300 are expected to be released in October using TSMC’s N4P (4nm) process, according to the report from Commercial Times. Both companies are projected to adopt the N3E (3nm) process in 2024. 
• According to Wccftech, a leak of the Qualcomm Snapdragon 8 Gen 4’s specs shows that it will feature custom Phoenix cores and TSMC’s N3E technology. The report mentioned that Qualcomm will apply its self-developed Nuvia CPU architecture to the new chipset.
• Qualcomm opted for the 4nm process for this year’s Snapdragon 8 Gen 3 due to the high cost of TSMC’s 3nm process. Currently, Apple dominates the allocation of these cutting-edge 3nm wafers, according to media outlet Wccftech. 
• In July, Korean media outlet KMIB claimed that Samsung now boasts a 60% yield rate for its 3nm process, slightly higher than TSMC’s 55%. TSMC’s low yield rate has reportedly led Apple to commit to only paying for qualified wafer batches, instead of establishing a standard rate with TSMC.

Context: In the first quarter of 2023, the top three brands in terms of global smartphone chipset shipments were Mediatek with a 32% market share, Qualcomm with 28%, and Apple with 26%, according to market research firm Counterpoint.

Crystal of Atlan (CoA), the new action role-playing game developed by ByteDance’s video game company Nuverse, was the eighth best-selling mobile game on iOS in China in July, according to local media outlet GameLook, despite only launching on July 14. 

Why it matters: The new game has the potential to be a breakout hit for ByteDance, which has been aiming to develop its own successful mobile title in the wake of HoYoverse’s global success with Genshin Impact. In the second half of July, Crystal of Atlan’s revenue only ranked behind Tencent’s Honor of Kings, NetEase’s Justice Online, and Tencent’s PUBG Mobile, GameLook reported. Fueled by the success of the new game, Nuverse’s July revenue saw a remarkable 109% month-on-month increase.

Details: Based on data from Sensor Tower, CoA’s iOS revenue surpassed RMB 210 million ($29 million) in July. GameLook predicted that the revenue across all platforms amounted to RMB 600 million ($83 million) for the same month.

• Crystal of Atlan is an action role-playing DNF (Dungeon ’n’ Fighter) game that uses 3D graphics and open-world scenarios. Its anime style resembles Genshin Impact and Honkai: Star Rail, both of which were launched by HoYoverse.
• In May, according to CoA’s official Weibo account, the number of pre-registered players reached 8 million.
• ByteDance is actively promoting the game on its short-video platform Douyin (the Chinese version of TikTok), using internal advertising resources to enhance the game’s visibility. A large number of gaming KOLs introduced the gameplay via videos and broadcasts on Douyin to attract domestic players. 
• As of August 8, the hashtags #CoA and #CrystalofAtlant have collectively reached more than 3.5 billion views on Douyin, according to a report by 36Kr. Additionally, ByteDance also recruited KOLs on Chinese broadcast platforms Huya and Betta, to increase publicity for the game. Given the outlay on marketing, some analysts have suggested that maintaining the title’s high profile may prove a challenge in the months ahead.

Context: ByteDance established Nuverse in 2019, announcing its entry into the gaming sector. In 2021, ByteDance acquired game studio Moonton and C4games for RMB 10 billion and equity worth RMB 15 billion, according to 36Kr.

• On July 13, Moonton launched the fantasy role-playing card game Watcher of Realms in the global market. The revenue of this game reached approximately RMB 70 million ($9.6 million) in the first month, according to GameLook.
• In 2023, NetEase’s Justice Online and HoYoverse’s Honkai: Star Rail are the two most prominent new titles in China’s mobile game market.
• In July, Justice Online, the martial arts role-playing game launched by NetEase on June 30, ranked seventh with a revenue of $63.3 million.
• In May, Hoyoverse’s new hit game Honkai: Star Rail earned approximately RMB 1.2 billion ($168 million) in the first month since its global launch on April 26.

Huawei achieved sales revenue of RMB 310.9 billion ($43 billion) in the first half of 2023, with a year-on-year increase of 3.1%, according to its H1 business results announced on August 11. During the first half of this year, the Chinese telecom giant’s net profit rate reached 15%, in contrast to the mere 5% achieved in the same period last year. Huawei attributed the rising profits to its enhanced management, improved operational efficiency, strategic sales adjustments, and product optimization. The company launched the flagship phones P60 series, Mate60 series, and foldable MateX3 in H1.

Notably, Huawei’s revenue from its consumer business (terminal devices) in the first half of 2023 increased by 2.2% year-on-year, reversing the downward trend observed since 2021. 

Why it matters: Huawei’s phone business has experienced a relatively tumultuous trajectory in recent years, primarily due to the stringent chip sanctions imposed by the US since 2019. According to company data, in the first half of 2021 and 2022, the revenue growth of Huawei’s consumer business was -47% and -25.4%, respectively. While the 2.2% increase in consumer business revenue signals a turnaround for Huawei, the growth is still relatively modest. The figures come at a time when Huawei has been trying to regain its market share in the mobile phone business, while simultaneously exploring new directions and growth prospects for other business departments.

Details: Sabrina Meng, the rotating chairperson of Huawei, described the company’s business performance in the first half of the year as “stable”, according to Beijing Business Today. Huawei’s business structure comprises five key components, which include its ICT (Information and Communications Technology) infrastructure business, terminal devices, digital energy, cloud services, and the newly added smart vehicle segment.

• In the first half of 2023, the ICT infrastructure business led Huawei’s positive results with a revenue of RMB 167.2 billion ($23.12 billion). The firm’s terminal business generated revenue totaling RMB 103.5 billion ($14.31 billion), while the cloud services and digital energy services garnered RMB 24.1 billion ($3.33 billion) and RMB 24.2 billion ($3.35 billion), respectively. However, Huawei’s car business, which was established in 2019, only achieved a relatively modest revenue of RMB 1 billion ($140 million).
• Next year, Huawei will launch a comprehensive range of commercial 5.5G network equipment aimed at facilitating the commercial deployment of 5.5G technology, the company revealed at the Mobile World Congress Shanghai 2023 in June.
• Huawei did not disclose the detailed shipment figures for its smartphones. According to a July report by IDC, Huawei has reclaimed its position among China’s top five smartphone brands in terms of revenue, with a year-on-year rise of 76% in domestic sales in the second quarter of 2023. Huawei’s return to prominence can be attributed to the impressive sales performance of its P60 series and foldable Mate X3 model, according to the report.
• Launched on August 4, Huawei’s self-developed operating system HarmonyOS 4 saw over one million downloads in three days, according to the company. The HarmonyOS ecosystem currently includes more than 700 million connected smart devices, said Richard Yu,  the CEO of Huawei’s consumer department. 
• In July, Huawei announced the launch of its Pangu Models 3.0 along with AI cloud services. This offering comprises a set of pre-trained models that can be quickly customized for various businesses. Currently, Pangu models are being used across multiple sectors, such as finance, manufacturing, pharmaceutical R&D, coal mining, and railways.
• Aito, the car brand co-developed by  Huawei and Cyrus, saw sales decline significantly, according to its latest results. Despite recording monthly sales of 12,000 units last October, according to Beijing Business Today,  this figure plummeted to fewer than 3,000 units in February and March. 

Context: Huawei has maintained its substantial investment in R&D as it strives for a new growth point. In 2022, the company’s R&D expenditure was approximately RMB 161.5 billion ($22.33 billion), accounting for 25.1% of the company’s annual revenue, according to its 2022 annual report.

Foxconn, Apple’s biggest supplier, has secured an exclusive order to supply Apple’s AI servers, which will ship from the company’s Vietnamese factory, Taiwanese media outlet Economic Daily News reported on Monday. Apple’s demand for AI servers and data centers has increased significantly as the company expands its investment in AI development.

Why it matters: The upsurge of generative artificial intelligence products has swept the technology industry in 2023. ChatGPT, the large language model from OpenAI, was estimated to have 100 million monthly active users in June, making it the fastest-growing application in history. In due course, Apple plans to apply its heavy investment in AI research to products including the iPhone and iPad, according to the Financial Times. 

Details: As Apple’s largest supplier, Foxconn not only assembles iPhones but also acts as a server supplier for Apple’s data center, according to the Economic Daily News report. With Apple’s recent stepping up of its interest in AI applications, the need for Foxconn’s support has increased.

• Foxconn has taken the global lead in the AI server market. The manufacturer already accounts for approximately 40% of the global server market, according to Reuters. Foxconn also provides AI servers for major tech companies including OpenAI, Nvidia, and Google.
• Apple CEO Tim Cook confirmed last week that the company has been studying various AI technologies including generative language models for years. Industry observers have speculated that the tech giant’s increase in AI investment may have contributed to its R&D expenditure reaching $22.61 billion last quarter.
• Apple is reportedly building a large-scale voice model named Ajax and is expected to launch a generative chatbot soon. Given Apple’s large user base around the world, this puts potential pressure on Google and Microsoft as the tech titans also look to launch similar AI offerings.
• There are more than 1.46 billion active iPhone users worldwide as of 2023, according to data from analytics firm Demand Sage. iPhone users account for 21.67% of the world’s total smartphone population, according to the same report. Apple’s mature App Store ecosystem also gives it an advantage over other companies in rolling out AI applications.
• Foxconn’s server revenue reached RMB 1.1 trillion ($138.64 billion) last year. According to industry estimates cited by the Economic Daily News, its AI server-related orders surged by billions of dollars in 2022.
• Apple is recruiting for dozens of AI-related jobs in its offices across California, Seattle, and Paris. New recruits are expected to engage in the research of large language models that can generate text, images, or codes in response to simple user prompts.

Context: Securing an AI server order from Apple has solidified Foxconn’s leading position as a supplier of AI servers. On August 4, Nvidia shifted some of its AI server orders from its manufacturing partner Wistron to a subsidiary of Foxconn, due to concerns over Wistron’s insufficient production capacity.

The Cyberspace Administration of China (CAC), the national internet regulator, on Wednesday issued new draft regulations aimed at preventing minors from becoming addicted to their phones. The rules seek to create a healthy online environment for minors by broadening the scope of supervision to include smart terminals and app stores. The draft is open for public comment until Sept. 2, 2023.

Why it matters: Safeguarding the online experience of minors is a key concern of authorities overseeing China’s entertainment and internet industries. In 2019 and 2021, CAC introduced laws that curbed the amount of time young people could spend playing video games. If approved, the new regulations would impact a range of industries, including gaming, streaming, hardware, and other internet-connected sectors, confronting companies with a wave of challenges as the government sets increasingly stringent rules for mobile terminals and internet content providers.

Details: The draft regulations require internet companies to create customized designs for minors on different mobile platforms, including mobile smart terminals, apps, and app stores. Content and functions will need to be tailored to different age groups.

• The minor protection mode, initially focused on video, live broadcasts, and games, will soon be an essential built-in setting for mobile phones, smart watches, learning machines, and VR/AR wearable devices. When users set up their mobile devices for the first time, they will be prompted to activate a minor mode based on their ID information.
• Internet content providers will be required to modify their offerings according to different under-18 age groups. The customized designs for minors will be divided into five age ranges: under 3 years old, 3 to 8 year-olds, 8 to 12 year-olds, 12 to 16 year-olds, and 16 to 18 year-olds.
• Minor mode settings should be easy for parents to locate, the draft regulations state. Users will be able to access minor mode via a power-on reminder, desktop icon, and system setting. To exit minor mode, parents will need to verify their ID information by using their password, fingerprint, or facial recognition.
• Mobile terminals are required to provide differentiated time management for minors of different age groups. By default, mobile devices will limit usage to 40 minutes each day for those under 8 years of age, and allow a maximum of two hours for those between 8 and 18 years of age. In minor mode, access to mobile devices will be restricted between 10 pm and 6 am. However, parents will be able to exempt their children from the restrictions if they prefer.

Context: In recent years, the Chinese authorities have implemented strict measures to limit minors’ game-playing time.

• In 2019, CAC passed a law restricting minors to less than 1.5 hours of online gaming time on weekdays and three hours on weekends, with no game playing allowed between 10 pm and 8 am. Additionally, the amount minors could spend on virtual gaming items each month was limited, with maximum amounts ranging from RMB 200 to RMB 400 ($28 to $56), depending on age.
• In 2021, CAC further limited minors to an hour of gameplay from 8 pm to 9 pm on Fridays, weekends, and public holidays.

Chinese tech giant Tencent has acquired Japanese game developer Visual Arts (Kabushikigaisha Bijuaru Atsu), a specialist in galgame (female anime character-based games) and visual novels. The Osaka-based developer announced the news on Chinese social platform Weibo on Thursday. 

Why it matters: With Tencent’s acquisition, Visual Arts has said it will be able to reach a wider audience and explore new growth opportunities. Tencent, meanwhile, will further its aim of becoming a global gaming powerhouse by acquiring another reputable developer after a series of such moves in recent weeks. 

Details: Visual Arts’ announcement on Thursday coincided with confirmation of the retirement of its founder Takahiro Baba, which was initially revealed last year. Baba has reportedly transferred his controlling stake to Tencent, with Genki Tenkumo announced as the new CEO. 

• Founded in 1991, Visual Arts was at the forefront of the Japanese animation style galgame, a subgenre of dating games and visual novels focused on romance, typically marketed to heterosexual men. 
• Visual Arts is the parent company of Key, which is known for creating acclaimed works such as Kanon, AIR, and Clannad.
• Most Visual Arts games are characterized by a sentimental storyline. Kanon, AIR, and Clannad are all titles that were adapted into animations by Japanese studio Kyoto Animation, which has significant influence among ACG (anime, comics and games) groups.
• Heaven Burns Red, the company’s 2022 turn-based role-playing game, once topped Japan’s iOS bestsellers list, according to Jiemian.
• In the announcement of the Tencent deal, Takahiro Baba said the company was “in the best condition ever.” With the help of Tencent’s investment, Visual Arts hopes to create classics that spread across the world, he added.

Context: Tencent, China’s biggest gaming firm, has been expanding its international footprint in recent months, adding to its majority ownership of Riot Games with a series of major deals. 

• On July 5, Tencent invested an unspecified amount in Lighthouse Games, which will support the UK game studio to build an as yet unnamed forthcoming title. Lighthouse Games is a recently-opened triple-A studio from Playground Games co-founder Gavin Raeburn.
• Weeks later, on July 24, Tencent announced that it had become the majority shareholder in Techland, the Polish studio behind the popular game Dying Light. 

The Indian Ministry of Finance informed the Indian parliament that prominent Chinese smartphone manufacturers, including Xiaomi, Vivo, and Oppo, evaded tariffs and illegally remitted a minimum of 80 billion rupees ($980 million) in India, according to a CNBC report on July 21. The report also stated that the Indian tax authorities were able to retrace only 18% of the total amount evaded by these companies.

Why it matters: With its vast population and rapid economic development, India has become an attractive destination for numerous international enterprises seeking to enter the local market. In recent years, Chinese mobile phone manufacturers have achieved significant success in the Indian market. However, the issue of tax evasion has gradually emerged as a prominent concern, drawing the attention of Indian authorities.

Details: According to the CNBC report, Chinese mobile phone brands are accused of evading taxes by manipulating financial data, engaging in fictitious transactions, and overpaying fees to affiliated companies. 

• India’s Ministry of Finance reported that the combined turnover of Chinese phone brands in India, which also includes Transsion, Realme, and OnePlus, amounted to 15 billion rupees ($180 million) from 2021 to 2022, leading to the creation of 75,000 employment opportunities for local citizens. Furthermore, these companies have employed 80,000 sales and operation staff across India.
• Xiaomi’s total tax evasion reached 11.37 billion rupees ($140 million) during 2019-2023, while Oppo evaded tariffs to the value of 44.03 billion rupees ($540 million), according to Indian authorities. 
• The Indian Ministry of Finance claimed that there have been a total of 13 similar cases involving tax evasion on goods and services by these companies from July 2017 to June 2023. Specifically, Xiaomi was reported to have paid interest amounting to 3.17 million rupees ($39,000) and a fine of 1.33 million rupees ($15,000) from 2019 to 2020.
• In April 2022, Indian authorities accused Xiaomi of illegally transferring money to foreign entities in the form of royalty payments since 2015, freezing the company’s funds of 55 billion rupees ($680 million) in the bank accounts of its Indian subsidiaries. Xiaomi refuted these allegations and stated that these royalty payments were made for the licensed technology and intellectual property used in the Indian versions of its products. Despite Xiaomi’s re-appeal to address the situation, the Indian government rejected the firm’s demand to unfreeze its funds.
• In July 2022, India’s financial crime agency blocked 119 bank accounts linked to Vivo’s India business, which collectively held 4.65 billion rupees ($58.76 million). This move came as part of an investigation into alleged money laundering activities. The Indian authorities conducted raids at 48 locations belonging to Vivo and 23 entities connected to the company. The allegations suggested that the proceeds of Vivo India’s sales were being transferred out of the country to evade taxes. While Vivo presented arguments in their defense and managed to recover access to the bank accounts, they were required to pay a guarantee of $119 million to the Indian government.
• In July 2022, the Directorate of Revenue Intelligence (DRI) stated that Oppo’s Indian subsidiary had improperly obtained tax-free benefits amounting to 29.81 billion rupees ($360 million) through false declarations of certain imported goods.

Context: According to market analyst firm Canalys, four Chinese phone brands entered the top five by market share in India in the second quarter of 2023, behind Korean brand Samsung. Vivo was second, shipping 6.4 million units, and Xiaomi held the third spot by shipping 5.4 million units, while Realme and Oppo (excluding its sub-brand OnePlus) ranked fourth and fifth by shipping 4.3 million and 3.7 million units respectively.

OnePlus launched its Nord Buds 2 globally at a budget-friendly price of $59 in April. Our team received a gray model for a two-week trial. Here’s our take on the new earbuds. 

The Nord Buds 2, may cost $20 more than their predecessors, but they’re still some of the most affordable earbuds on the market and deliver solid audio quality and impressive active noise cancellation (ANC). Equipped with four microphones, the stylish earbuds – also available in white – come with a 12.4mm dynamic titanium driver, a 36-hour battery life, and IP55 water and dust resistance.

Stylish design and comfortable fit

With a stylish look and sustainably sourced materials, the Nord Buds 2 ought to appeal to a younger consumer base. The smooth, eye-catching design is augmented with speckled accents on the buds’ bodies, though at first glance this can be mistaken for specks of dust.

The compact, oval-shaped charging case and earbuds may be made of plastic, but they feel durable. There are three sizes of silicon tips available, the buds weighing 4.7 grams per earpiece, and despite somewhat chubby stems, they sat in my ears comfortably. 

The snug fit, combined with an IP55 rating which means they are resistant to light sweat and rain, makes the earbuds suitable for wearing during exercise. Over the fortnight I had them, I walked and jogged with them in and they didn’t fall out. 

Audio quality and active noise cancellation

For the price, the Nords Buds 2 deliver a relatively crisp sound quality with clear vocals, soothing treble, and convincing deep bass. The plus-sized 12.4 mm drivers feature a larger diaphragm with titanium coating, meaning users rarely need to turn the volume up beyond 50%. 

Impressively, the Nord Buds 2 are the first Nord product with up to 25dB2 of active noise cancellation. While noise-canceling is a standard feature in more expensive wireless earbuds, it is still not common in earbuds costing less than $100. ANC is effective at muting consistent low-frequency sounds, and can block some high-pitch frequencies too, without eliminating them. 

A surprising drawback is that the earbuds lack in-ear detection, meaning they are unable to automatically detect if they are being worn or removed. 

Battery life and tap controls

The Nord Buds 2 come with a 480 mAh battery that gives you seven hours of usage. With the case, they work for up to 36 hours. However, when using ANC, the battery life is reduced to five hours for the earbuds and 27 hours with the charging case. 

The earbuds support fast-charging and can gain five hours more battery life on just a 10 minute charge. Based on our test, the buds can support a two-hour commute every day and only need to be charged once a week.

The Nord Buds 2 come with built-in controls for quick adjustments, such as:

• One tap: Play or pause your music
• Double tap: Skip forward
• Triple tap: Skip backward
• Press and hold: Turn noise-canceling on or off

There is no tap control for volume however, and sometimes you can trigger commands without meaning to: when we went to adjust the earbuds to fit our ears, we accidentally turned off the noise-canceling mode. There is also no option to seamlessly switch between devices while wearing the buds. Each time you change from a laptop to a phone or tablet, you have to reconnect the earbuds, adding a degree of inconvenience. 

Conclusion

In general, the Nord Buds 2 are great value at $59. They deliver good sound quality and functional noise-canceling, despite lacking in-ear detection and seamless connectivity.

Pros

• Stylish design
• Lightweight and comfortable fit
• Dust and water resistant
• Great audio performance with convincing bass
• Impressive noise-canceling for the price
• Long-lasting battery
• Fast-charging support

Cons

• Speckled design looks dusty
• No in-ear detection
• Connectivity issues

TSMC is struggling with the efficiency of its new 3nm manufacturing yield, with the semiconductor giant currently hitting a yield rate of just 55%, far below the standard expected, according to a July 13 report in technology media outlet wccftech. The low yield rate has reportedly led Apple to only pay for qualified wafer batches instead of establishing a standard rate with TSMC. Apple occupies 90% of TSMC’s 3nm process production capacity for its A17 Bionic and M3 chips. 

Why it matters: The iPhone 15 Pro and iPhone 15 Pro Max are widely expected to become the first smartphones powered by TSMC’s 3nm process chipset. However, TSMC’s yield rate of 55% may cause it to lose customers to competitors such as Samsung, which has reported a 60% to 70% yield rate with its 3nm process.

Details: Brett Simpson, senior analyst at Arete Research, claimed that TSMC and Apple have reached a special deal, through which Apple will only pay for functional circuits, rather than paying standard pricing for the entire wafer. If the 3nm yield rate improves to a regular 70%, the deal may be adjusted so that Apple pays up to $17,000 per wafer in the second half of 2024.

• The monthly production of TSMC’s 3nm wafers is expected to reach 100,000 pieces by the end of 2023 to meet the demand for the iPhone 15 series smartphones. 
• In 2024, Apple may switch to TSMC’s N3E process technology instead of N3B process technology, due to the lower production cost and higher yield rate of the N3E, according to the wccftech report. However, the N3E process may reduce the processor performance of the A17 Bionic and M3, and a final decision has therefore not yet been made. N3B is the original 3nm node created in partnership with Apple, while N3E is the simpler version produced for the majority of TSMC’s customers.
• The iPhone 15 series will begin mass production in August, with the iPhone 15 Pro and iPhone 15 Pro Max using the A17 Bionic processor. As Apple’s first chip manufactured with a 3nm process, the A17 Bionic is expected to bring major performance and efficiency improvements over its predecessors the A14, A15, and A16 chips, which used a 5nm process.
• Apple plans to release a 13-inch MacBook Pro with its M3 chip, as well as 14-inch and 16-inch models of the MacBook Pro with M3 Pro and M3 Max chips, according to a report from Bloomberg.

Context: In May, Samsung said in its first quarterly earnings report that its 3nm chip process had an impressive 60% to 70% yield rate. Samsung previously struggled with its 4nm process, which caused Qualcomm to partner with TSMC for the Snapdragon 8 Plus Gen 1 and Snapdragon 8 Gen 2 over the Korean company.

• TSMC’s 4nm process yield rate was reported to be around 70% to 80%, while Samsung only achieved approximately 50%, according to Digitimes. As Samsung gradually improves its 3nm and 4nm process yield rates, the company may regain former customers it lost to TSMC.

On Wednesday, Chinese phone brand Honor launched its third-generation foldable phone the Honor Magic V2 at a new product launch event. The company announced it as the slimmest foldable on the market, measuring an ultra-thin 9.9mm in foldable state and weighing just 231 grams. 

Why it matters: Honor claims its new device breaks the boundary between regular smartphones and foldable phones. The Magic V2 is comparable in size to a standard smartphone – for comparison, the iPhone 14 Pro Max is 7.85mm thick and weighs 240 grams. 

Details: When smartphone makers first introduced new generation foldable phones in 2019, the devices’ foldable state was commonly around 16mm. By 2022, the thinnest model on the market, the Xiaomi Mix Fold 2, measured 11.2mm. The Honor Magic V2 is the first such device with a thickness below 1cm when folded. 

• Despite the thinner design, the phone offers a large 5,000mAh battery that can be fast-charged at 66W. Equipped with the Snapdragon 8 Gen 2 processor, it has three rear cameras including a 50MP main camera, a 50MP ultra-wide camera, and a 20MP telephoto camera.
• The Magic V2 utilizes a light titanium hinge and has been certified by Swiss testing and inspection authority SGS as being able to withstand more than 400,000 folds, according to Honor.
• The Magic V2 comes with a 7.92-inch primary screen and a 6.43-inch cover screen, both utilizing an OLED panel with a refresh rate of 120Hz. It features a high-frequency 3,840Hz PWM dimming function, which the company says eliminates flickering and ensures smooth animations. 
• The phone is available in three colors: black, gold, and purple. There are actually three black models, including the basic black version, a silk black version coated in vegan leather, and what the brand calls the ultimate black version, which comes with a golden brand logo.
• The device is priced from RMB 8,999 to RMB 11,999 ($1,255 to $1,674), with storage of up to 1TB.
• The Magic V2 is currently only available in China, though an international release is anticipated later this year. Its predecessor the Honor Magic Vs was introduced in China in November 2022, followed by a global release in February 2023. 
• In addition to Magic V2, Honor also unveiled the MagicPad 13, Magic Watch 4, and Honor Smart Screen 5 at the launch event. 

Context: According to research platform Counterpoint, global foldable shipments grew 64% year-on-year to 2.5 million units in the first quarter of 2023, while the overall global smartphone market faced a 14.2% year-on-year decline during the same period.

• In the first quarter of 2023, Honor shipped 9.7 million units globally, making it the fourth-biggest mobile phone maker by global market share, ranking after Apple, Oppo, and Vivo, according to market analysts firm Canalys.

Chip giant TSMC plans to construct a second chip plant in the Kumamoto Prefecture of Japan to manufacture 12nm chips by the end of 2026, Japanese media outlet Nikkan Kogyo Shimbun reported on Tuesday. TSMC will reportedly invest 1 trillion yen ($7.1 billion) for the second plant, which is expected to start construction in April 2024.

Why it matters: In recent years, the Japanese government has gradually realized the limitations of its own chip industry, especially with the world transitioning to EV and the automobile industry’s increasing demand for advanced chips. TSMC’s further expansion in Japan may make it eligible to receive huge subsidies from the local government, and improve the company’s production capacity by utilizing local water and power resources. 

Details: In June, TSMC’s chairman Mark Liu revealed that the company was evaluating the possibility of another plant aimed at producing mature-process chips in Kumamoto Prefecture, near the company’s first facility.

• On June 9, Yasutoshi Nishimura, the Minister of Economy, Trade and Industry of Japan, responded to the news by saying that the Japanese government would consider providing financial aid to a potential second TSMC plant in Japan.
• In June, Sony CEO Terushi Shimizu told a round-table conference that TSMC’s first plant in Japan had been unable to fulfill an order for his firm, after receiving a large order from electric vehicle makers such as Honda. He also said that Sony has not yet decided to invest in the second plant.
• On June 30, at a press conference held in Yokohama Japan, Kevin Zhang, TSMC’s Senior Vice President, said the company did not rule out the possibility of manufacturing advanced process chips in Japan in the future.
• Last year, TSMC and Sony invested approximately $7 billion to build the first semiconductor factory in Kumamoto Prefecture, while the Japanese government decided to provide 476 billion yen ($3.38 billion) in subsidies.
• TSMC has already started the construction of its first plant in Japan and is targeting local production in 2024, according to the Nikkan Kogyo Shimbun report. Japan Advanced Semiconductor Manufacturing, a joint venture with TSMC, is in charge of Japan’s business operations, with Sony, Honda, and Denso all investing. According to TSMC, the first factory will produce 55,000 wafers a month by the end of 2024, using 12nm, 16nm, 22nm, and 28nm process technologies.

Context: Last December, TSMC announced it would increase its planned investment of $12 billion to $40 billion for two new factories in Arizona, US. For its US factories, the company plans to start producing 4nm chips in 2024 and 3nm chips in 2026, respectively.

• The US passed the CHIPS and Science Act last August to offer around $52 billion in incentives for US-based chip manufacturing.

NetEase’s new mobile martial arts game Justice has rapidly gained popularity after launching in China on June 30. The role-playing game has consistently ranked in the top three of the App Store’s free download game list and best-selling game list since its release.

Why it matters: Justice is being tipped as NetEase’s answer to Tencent’s Honor of Kings and HoYoverse’s Genshin Impact. The Chinese gaming giant also used AI to generate in-game dialogue and interactions with non-player characters (NPCs). 

• NetEase’s flagship game in 2023, Justice achieved 40 million pre-registrations before its launch, according to its official account on social media platform Weibo. A flood of about one million online players crashed the game’s servers temporarily on the first day of its launch. On July 7, it topped the best-selling iOS game charts. 

Details: Set in China’s Song dynasty, Justice’s mobile version integrates diversified elements of imperial Song culture, including martial arts, mythical creatures, and traditional architecture. NetEase has said it will update the game regularly for at least the next ten years in a bid to build an adventurous martial arts fantasy world and serve millions of mobile players.

• Players can customize their characters’ avatar through AI-powered settings, choosing various facial features, graphics, and literal descriptions. For instance, when players upload a portrait of themselves or input the requirements of ideal facial features, the system will generate a unique character in seconds.
• Set in an expansive open world, players can choose from a range of game modes, such as instance dungeon, battles, puzzles, relationships, card collection, architecture building, farming, and map exploration.
• Currently only available in China, Justice’s other significant feature is the use of AI to generate in-game dialogue and enable unique reactions from NPCs. Every action taken by players may have an impact on the game plot, the open world’s order, and NPCs’ behavior, NetEase has said.
• Justice’s advertising budget amounted to RMB 46.2 million solely on June 20, a source from the game project has revealed. The general advertising fee of RMB 170 million ($23.49 million) on all platforms includes RMB 23 million ($3.17 million) on Douyin (the Chinese version of TikTok) and RMB 20 million ($2.76 million) on Weibo.
• According to market analysis platform DataEye, the iOS version of Justice reached an estimated RMB 25.85 million ($3.57 million) in revenue on the first day of its launch.

Context: NetEase’s net revenues from games and related value-added services were RMB 74.56 billion ($10.8 billion) for the fiscal year 2022, with mobile games accounting for approximately 67% of net revenues from the operation of online games.

• On May 20, NetEase unveiled 11 new games and updated 35 existing titles at its annual product launch event. In addition to Justice, the company also plans to launch another wuxia (martial arts fantasy) game called She Diao in the second half of this year.

Apple’s orders for the iPhone 15 series’ 3nm chips may boost TMSC’s revenue in the third quarter of 2023 by 11%, with a company representative estimating that the firm’s second quarter revenue will reach approximately $17 billion, according to Economic Daily News. Apple is the largest customer for TSMC and the consumer tech giant’s chip orders accounted for 23% of TSMC’s revenue in 2022, according to its yearly financial report. This proportion may be even higher this year.

Why it matters: With Apple’s new iPhone 15 series set to be released in September, industry analysts are predicting that iPhone 15 series shipments may reach 85 million units, which is 9% higher than the 78 million units of the iPhone 14 series shipped last year. This marks a growth opportunity for TSMC, as the company is the exclusive manufacturer of Apple’s 3nm advanced processor.

Details: Apple is widely expected to switch to a 3nm process for its A17 Bionic chip in this year’s flagship iPhone 15 Pro and iPhone 15 Pro Max. TSMC’s 3nm process is expected to lead to a combination of performance and efficiency improvements.

• In order to meet the mass production requirements of the new iPhone 15 series, Foxconn has been stepping up its recruitment in Zhengzhou, the central Chinese city home to its largest facility. Currently, the number of recruits per day has reached around 1,000, according to Economic Daily News. The report suggested that the peak production period will run from July to September, by which time recruitment may reach 10,000 new workers per day.
• Compared to the current 4nm process used in Apple’s iPhone 14 Pro chips, the ‌3nm‌ process brings both speed and efficiency improvements. The ‌3nm‌ technology is predicted to achieve a 35% power efficiency improvement and 15% faster performance compared to 4nm. Additionally, Apple’s M3 chip for new Macs and iPads is expected to use the ‌3nm‌ process, according to MacRumors. 
• Apple has booked nearly 90% of chip supplier TSMC’s first-generation 3nm process capacity this year for future iPhones, Macs, and iPads, according to industry sources cited by DigiTimes.
• Due to the strong demand for the 3nm process, TSMC’s 3nm production capacity is in short supply, although the company has not announced many details about its monthly production capacity. The industry estimates that TSMC’s 3nm production capacity needs to increase to 100,000 pieces per month if they want to fully meet customer demand this year.

Context: On June 23, the US Department of Commerce announced the expansion of subsidies for the Chip Act, according to the Wall Street Journal. Originally, the subsidies were only for companies building new fabs in the US, but they now include support for supply chain manufacturers such as those working in chemicals, materials, and semiconductor equipment.

• By the end of 2022, TSMC’s new production base in the US had attracted dozens of chip-related suppliers to follow suit by building factories in the area, including Dutch ASML, US Applied Materials, US Lam Research, Tokyo Electron, and Sunlit Fluto & Chemical.

Senior executives from TSMC will gather in Shanghai this week for the company’s annual tech forum TSMC Technology Symposium on June 21, where the chip giant will share details of its forthcoming products and technologies, according to media outlet icsmart. The visiting group includes TSMC CEO C.C. Wei, vice president of business development Kevin Zhang, and deputy general manager of technology research Cliff Hou. As part of their trip, the trio plans to visit Chinese chip design companies such as Alibaba and Biren Technology, the report said.

Why it matters: This will be the first time that TSMC executives have been able to visit the company’s customers in mainland China in person since 2020. The company’s mainland China events were all held online during the last three years due to the Covid-19 pandemic.

Details: A number of significant customers for the chip maker are set to attend the TSMC Technology Symposium in Shanghai, which comes one month after similar events in Taiwan and Europe and a week before another symposium in Japan.

• TSMC representatives will visit Alibaba and Biren. Alibaba has a chip unit called T-Head, which specializes in designing chips for cloud computing and various other applications.  Biren is a fabless semiconductor design company founded in 2019 by Lingjie Xu and other former NVIDIA and Alibaba employees.
• Currently, the Chinese mainland market accounts for 10% to 15% of TSMC’s overall revenue, only second to its North American business, according to the firm’s first-quarter financial report. 
• In 2016, TSMC established a factory in Nanjing, the capital of eastern China’s Jiangsu province. The facility manages a 12-inch wafer fab and a design service center. The firm also operates a factory in Shanghai, which was established in 2002 and includes an 8-inch wafer fab.
• On Wednesday, in addition to providing a showcase of TSMC’s advanced chip process technology, the forum is expected to focus on how to reduce cost and increase efficiency, with prices for everything from building factories to purchasing equipment and even neon gas rising due to global inflation, according to media outlet Vocus.
• On April 26, TSMC held its 2023 North America Technology Symposium, introducing its latest technology developments including progress on 2nm technology and new products in its industry-leading 3nm technology range.

Context: Last October, TSMC secured a one-year license to continue ordering US chipmaking equipment for its expansion in China, allowing it to avoid the US’s export controls to China. Recently, senior officials from the US have reportedly indicated that the government may extend the one-year exemption for TSMC, which may enable the company to pursue its expansion plan in China.

• TSMC started pre-production operations on its 2nm process in June, and the company plans to start mass production of the advanced 2nm chip in 2025.
• TSMC claims that compared to the 3nm chip technology (N3 series), the speed of its 2nm chips will increase by 15% using the same power consumption and that power consumption will be reduced by 30% when used at the same speed.
• At a shareholders’ meeting in June, President of TSMC Mark Liu said that TSMC holds a key role in calming geopolitical tensions between China and the US.

Major Chinese phone brands operating in India including Xiaomi, Oppo, Vivo, and Realme, are being required by Indian authorities to appoint Indian nationals in executive roles such as chief executive officer (CEO), chief operating officer (CPO), chief financial officer (CFO), and chief technical officer (CTO), according to Indian media outlet ET Telecom.

Why it matters: In light of ongoing geopolitical tensions, India and China have increased scrutiny of each other’s businesses, causing significant economic turbulence in recent years. The Indian government has again tightened restrictions on Chinese technology companies in the last few months, with experts predicting this will inevitably dampen investment by Chinese companies in the Indian market. 

Details: The tussle between Indian authorities and Xiaomi has been escalating since the former launched an investigation into the latter last year. On June 9, the Enforcement Directorate (ED), an Indian financial law enforcement agency, issued a show-cause notice to Xiaomi India chief financial officer Sameer Rao, former global vice president Manu Kumar Jain, and three banks for alleged illegal remittances of 55.51 billion rupees ($673.2 million), according to a report by Indian news agency Press Trust of India. 

• On June 13, the Indian government requested major Chinese phone brands involve local companies in the manufacturing process and develop local distributors for exports, according to Indian media outlet ABP News.
• On the same day, Xiaomi India responded to this announcement by saying that the company’s operations were compliant with local laws and regulations, according to Chinese media outlet National Business Daily. 
• Last April, the ED summoned former Xiaomi global vice president Jain, who resigned this January, to cooperate with the federal investigation, alleging that the company had made illegal remittances by falsely presenting them as royalty payments to foreign entities. Xiaomi has since claimed that the royalty payments were for in-licensed technologies and intellectual property applied to Indian phone products.
• As part of the investigation, it is possible that the substantive frozen funds from three banks – Citibank, HSBC Bank and Deutsche Bank AG – may be confiscated by ED.

Context: In the first quarter of 2023, the top three phone brands in India were Samsung (with 20% of the market), Vivo (18%), and Xiaomi (17%), according to research platform TechInsights. Chinese phone brands account for about 50% of sales in the Indian phone market.

• Last December, a Vivo shipment of 27,000 cellphones from India to neighboring markets was detained by Indian officials. The shipment, worth nearly $15 million, was delayed for over a week because of an alleged misdeclaration of the device models and their value.
• Last June, the Indian government issued a show-cause notice to Oppo for allegedly evading customs duty of $550 million. Oppo says it has cooperated with the investigation since then; a final ruling in the case has not yet been announced.

Asus subsidiary ROG (Republic Of Gamers) launched its first handheld gaming console called the Asus ROG Ally at a summer product launch event on Monday. Equipped with a customized AMD Ryzen Z1 Extreme processor, the company claimed  its new product’s performance was on a par with the PS5 game console. 

The handheld device runs on a Windows 11 system, supporting game platforms Steam, Epic Games, Xbox, and GOG among others. Gamers can also explore Android mobile games through the software Tencent mobile game simulator. Asus initially unveiled a global version of the ROG Ally on May 11, priced at $699; the device will sell at a comparable price point in China.

Why it matters: The Asus ROG Ally is one of the most widely anticipated handheld gaming consoles to launch this year, with the company positioning the device as a rival to the Steam Deck and Nintendo Switch. Asus has been a major player in the PC space for years and will hope to boost the reputation of its new venture by making a positive impact in the world’s biggest gaming market.

Details: With multiple functions, the ROG Ally is essentially akin to a portable Windows 11 PC rather than a handheld gaming console. Players can play games, browse the internet, download files, and run programs. 

• Built on a cutting-edge 4nm processor, the customized AMD Ryzen Z1 Extreme processor features both Zen 4 architecture and RDNA 3 graphics. The Ally boosts high frame rates and strong image quality. 
• The ROG Ally screen features a 7-inch LCD display with 1080p resolution, a 16:9 aspect ratio, 500 nits of peak brightness, and a 120Hz refresh rate. Asus claims a 7ms response time and 100% coverage of the sRGB color space.
• The device weighs approximately 608 grams and is equipped with two fans, allowing better cooling at slower speeds to keep noise to a minimum.
• The new console comes with dual Dolby Atmos speakers and AI Noise Cancellation, which processes both incoming and outgoing audio to filter errant background noises from voice chats.
• The console comes with a 40Wh battery that Asus claims gives it up to two hours of life when playing heavy gaming titles. The ROG Ally comes with 16GB of LPDDR5 memory and 512GB of solid state storage, and can be upgraded with a microSD card. It is fully compatible with Steam, Xbox Game Pass, Epic, and GOG, among other platforms.

Context: Established in 1989, Asus is a Taiwan-based company known for personal computers and monitors. It founded ROG as a gaming brand n 2006. 

• According to market analyst firm Canalys, as global PC shipments declined by 16% year-on-year to 285 million units in 2022, Asus ranked in the top five, albeit also declining on 2021 shipments by 4%. Asus occupied a 7.2% share of the global PC market in 2022, selling 20.61 million units.

On Thursday, Xiaomi released a Disney-themed Civi 3 to celebrate Disney’s 100th anniversary. The limited-edition phone is based on Xiaomi’s mid-range Civi 3, which debuted in China on May 25. The limited edition model incorporates elements from Disney’s classic Mickey Mouse character into the design and features a Disney 100 logo on the back. 

Why it matters: As China faces a slowdown in consumer electronics consumption, phone makers are looking for new ways to encourage sales and brand exposure. 

Details: The limited edition phone marks the first collaborative product between Xiaomi and Disney. It is also the first time that a phone brand has cooperated with Disney on actual device design. Currently, Xiaomi’s Disney 100th anniversary series products are offered exclusively in China, with a global launch yet to be announced.

• In addition to the device design and a Disney-themed phone case, the limited edition Civi 3 offers a built-in Mickey theme, including a charging animation, lock screen clocks, wallpaper, filter, and stickers. In terms of hardware, it sticks with the same specs as the ordinary Civi 3 model.

• The limited edition Civi 3’s back panel houses a triple camera setup positioned at the top-left corner and is encircled by a Mickey Mouse design and the Disney 100 logo.
• The device only comes in a 12GB + 512GB storage and is priced at RMB 2,899 ($407). The whole package includes the mobile phone, customized stickers, exclusive limited certificates, customized card pins, and Mickey-themed phone cases.
• The phone is equipped with a MediaTek Dimensity 8200 Ultra chipset, a 4,500 mAh battery, 67W fast charging, and a 6.55-inch OLED curved screen with a 120Hz refresh rate. Additionally, the camera boasts a 50MP Sony IMX800 sensor with an f/1.77 aperture and optical image stabilization (OIS). 
• In celebration of Disney’s 100th anniversary, Xiaomi also unveiled a range of Disney anime-style products, including Xiaomi true wireless noise cancellation headphones 3, a 10,000mAh charger, Xiaomi smart band 8, and a 20-inch travel case.

Context: On March 28, Redmi, a subsidiary owned by Xiaomi, launched the world’s first Harry Potter-themed smartphone. The Redmi Note 12 Turbo Harry Potter edition comes with customized Harry Potter design elements such as the lightning scar, golden snitch, and the iconic Hogwarts logo.

On Monday, leading chip manufacturer TSMC started pre-production operations on its 2nm process, according to Taiwan-based media outlet Economic Daily News. Sources revealed that the chip maker will use an advanced AI system to improve energy efficiency and accelerate efficiency. Apple and Nvidia are expected to be among the first batch of customers for the Taiwan-headquartered company’s 2nm production, putting significant pressure on its competitors such as Samsung.

TSMC did not comment on specific details in response to the report, but stated that the development of 2nm technology is progressing well and aims to hit mass production by 2025.

Why it matters: TSMC’s 2nm plan could bring it into head on competition with Samsung. Samsung, which beat TSMC to be the first chip manufacturer to widely employ 3nm processes, also announced last year that it expects to have 2nm chips in mass production by 2025.

Details: According to the report, TSMC is estimated to begin test producing hundreds of 2nm chips this year, laying the foundation for mass production in 2025. The 2nm production base will be established at TSMC’s Fab 20 at Hsinchu Science Park, with subsequent expansion to Taichung Science Park, encompassing a total of six phases of engineering. 

• TSMC has already begun to dispatch engineers to the Hsinchu Science and Industrial Park for the 2nm process, building a research and development team of over 1,000 employees, according to Economic Daily News. 
• In the initial stages, TSMC will set up a small trial-production line at its Hsinchu headquarters, with a target of taping out around 1,000 2nm chip pieces by the end of this year, the report said. 
• On April 26, TSMC showcased its latest technology developments at its 2023 North America Technology Symposium, including in the fields of 3nm and 2nm technology. 
• The 2nm process will be the first process node at TSMC to employ gate-all-around (GAA) transistors, nanosheet transistors which TSMC says will boost performance, energy efficiency, and transistor densities. The company claims this will offer an improvement in speed of up to 15% over 3nm at the same power, and up to 30% power reduction at the same speed.
• Nvidia’s CEO Jensen Huang previously said at GTC 2023 that TSMC will bring the AI system that Nvidia and TSMC and other partners worked on into 2nm trial production this June. The system promises a computation time that is 1/40th of its predecessor.

Context: Samsung expects to have 2nm chips in mass production by 2025 and plans to deliver mass production using a 1.4nm process by 2027.

• TSMC reported record revenue for 2022 of NT$2.26 trillion ($74.25 billion), a rise of 42.6% from 2021. It was the first time the world’s largest contract chip manufacturer reached NT$2 trillion in revenue for a year.
• The Apple iPhone 15 Pro will be powered by the A17 Bionic chip based on TSMC’s 3nm technology, according to product review site Tom’s Guide. The chip is also expected to debut in this year’s upcoming MacBook models.

On Monday, Chinese game developer HoYoverse announced its first ever international tournament for hit game Genshin Impact, with an event entitled Astra Carnival: The Prince Cup. The qualifying round for the tournament is already underway, with regional games being played over the next few months in Europe, North America, South America, Japan, South Korea, and Southeast Asia.

Why it matters: This is the first international tournament to be held by HoYoverse and marks the Chinese game developer’s first foray into e-sports. Genshin Impact has been hugely  popular since launching worldwide in September 2020.

Details: Astra Carnival: The Prince Cup will bring together players from across the globe to compete for a prize pool of $270,000. Three cross-regional invitational tournaments are scheduled to take place in June, August, and December.

• The tournament will be based around Genius Invokation TCG, the card game mode of Genshin Impact. Genius Invokation TCG released its  game version 3.3 in December 2022 based on the Genshin Universe, using existing lore, quests, and characters. In the latest Genshin Impact 3.7 version update, released on May 24, over 60 new cards and two game modes have been added.
• The trading card game uses turn-based battles. Players need to build a deck with a combination of three character cards and 30 action cards, and win by knocking down all the opponent’s character cards. 
• The North America regional competition began on Monday. It will run until June 17, with 32 players battling it out in online qualification matches. The top eight will be invited to Los Angeles to participate in offline championship matches, with all travel expenses covered, according to HoYoverse’s announcement.

• HoYoverse has said that the matches will be livestreamed on AstraCarnival’s social media channels, including on Twitter, Twitch, TikTok, and YouTube.

Context: In 2022, there were approximately 50 million players playing Genshin Impact on a monthly basis, according to ActivePlayer. 

• By September 2022, two years after its launch, Genshin Impact had generated $3.7 billion in revenue across the App Store and Google Play, making it the third-highest revenue-generating mobile game worldwide, according to Sensor Tower.
• China’s biggest gaming company Tencent Games has been involved in major tournaments for hit titles such as League of Legends for the past decade. In April, Tencent Games announced the 2023 Honor of Kings International Championship, featuring a prize pool of $10 million, the biggest prize pool ever for a mobile game event.

On Monday, phone maker Honor introduced its new mid-range flagship models Honor 90 and 90 Pro in China. The lineup is the successor to last year’s Honor 80 series and features a 200MP camera sensor, a quad-curved screen, a 5,000mAh battery, and the Qualcomm Snapdragon chipset. It is priced at RMB 2,499 ($350) for the standard model with 12GB + 256GB RAM. 

Honor also announced that the two devices will have GMS (Google Mobile Services) included in the global versions. 

Why it matters: As China approaches a major mid-year shopping festival known as 618 (June 18), many phone makers are releasing new affordable models to boost sales. In addition to Honor, Oppo launched its mid-range Reno10 series on May 24, while Vivo will unveil its Vivo S17 series on May 31. 

Details: As part of Honor’s new mid-range phone line, the Honor 90 series boasts a high-performance imaging system and display.

• Both models adopt a 200MP sensor for the primary rear camera and a 50MP selfie camera, while the Pro version features an additional 32MP portrait camera. 
• The Honor 90 features a 6.7-inch OLED curved-screen with 2,664 x 1,200 pixels, 1,600 nits peak brightness, 1 billion colors, and a 120Hz refresh rate. It is powered by the Snapdragon 7 Gen1 chipset. The Pro variant offers a Snapdragon 8+ Gen 1 chipset and a 6.78 inch display with a resolution of 2,700 x 1,224 pixels. 
• Both models support what Honor says is the industry’s first 3,840Hz ultra-high frequency pulse-width modulation (PWM) dimming technology to protect eye health. PWM is a common dimming feature used to adjust the current in white-LED driver devices. The company claims the phone is the most eye-health-friendly device on the market. 
• The Honor 90 Pro packs a massive 5,000mAh battery and supports 90W fast charging. Honor said it takes 15 minutes to reach 56% power. The 90 model only supports 66W fast charging. 
• Both models go on sale on June 7 in China; their global launch date has yet to be disclosed.

Context: Due to a slowdown in domestic consumption, China’s smartphone shipments declined 8% year-on-year in the first quarter of 2023, reaching their lowest level since the first quarter of 2020, according to Counterpoint. 

• The top five vendors in the first quarter of 2023 were Apple (with a 20% market share), Oppo (18%), Vivo (16%), Honor (16%), and Xiaomi (12%).
• Honor was established by Huawei as a budget smartphone brand in 2013. It was sold by Huawei in late 2020, partly in an attempt to ensure it avoided US sanctions targeting the Chinese telecommunications giant. 

China’s biggest deepfake scam to date has led to warnings of a rise in fraud cases using AI tools such as face-swapping and voice mimicking. In the widely-discussed case, a Fuzhou tech firm’s legal representative was allegedly defrauded of RMB 4.3 million ($610,000), after receiving a video call from a “friend,” who turned out to be a fraudster using AI face-swapping technology. The case became a hot topic on social media after police confirmed its details, highlighting how AI can be used to con well-educated adults within minutes. 

Why it matters: AI regulation is still a developing subject in China. In mid-April, the country’s internet regulator issued a draft regulation on the use of generative AI and sought public feedback on the proposed measures. Initial excitement around the potential of ChatGPT and similar AI products in China has given way to concerns over how AI could be used to supercharge criminal activity.

Details: According to disclosures by police in the eastern Chinese city of Fuzhou, on April 20, a fraudster stole an individual’s WeChat account and used it to make a video call to a businessman, an existing contact on the individual’s WeChat app. They used AI to deepfake the individual’s face and told the businessman they needed to make a bank transfer. The businessman subsequently transferred RMB 4.3 million to the fake friend’s bank account without verifying their true identity.

• After the fraud victim alerted the authorities, Fuzhou and Baotou police helped intercept some of the stolen funds, however multiple media outlets have reported that around RMB 1 million is yet to be recovered and that the case is thought to be biggest such scam to date. The police’s investigations are ongoing. 
• The fraudster utilized tools that could steal audio visual information to generate  convincing AI voice and image material, police said. 
• The fraud sparked widespread discussion on Chinese social media. On Tuesday, the trending hashtag #AI crime overwhelms the country#, which had a total of 180 million views, was seemingly removed from the social media platform Weibo amid fears that the case may inspire copycat crimes.
• China Youth Net, a Communist Youth League of China-backed media outlet, was among those to later post a warning to the public about the dangers of AI scams.
• Face-swapping technology has also been used by online livestreamers to produce deepfakes of popular celebrities, according to local media outlet China Economic Network, raising related issues around fraud and intellectual property rights.

Context: The global buzz surrounding the launch of ChatGPT has seen a spate of AI-related product launches in China, with the country’s tech majors rushing to prove they can offer similar technology. However, the Fuzhou fraud case has combined with other high profile deepfake incidents to remind people of the potential downsides to such advances in artificial intelligence.

• In a much-reported incident that is testing the boundaries of China’s copyright laws, famous Mandopop singer Stephanie Sun has seen an AI version of her voice used to produce new covers of popular songs in recent weeks. “AI Stephanie Sun” has nearly a thousand videos on Chinese video-sharing platform Bilibili, with the Singaporean star’s voice being used on everything from folk songs and nursery rhymes to anime theme tunes. Some covers, like ‘Rainy Day’ and ‘Hair Like Snow‘, have garnered over a million hits.
• On Monday, Sun responded on Chinese social media by asking fans to stay true to themselves and recognize the futility of “arguing with someone who releases an album every minute.” AI “poses a threat to thousands of jobs, such as the legal, medical, accounting, and other industries, as well as the one we are currently discussing, singing,” Sun added.

NetEase Games unveiled 11 new games and updated 35 existing titles at its annual product launch event, held online on May 20. Particularly notable among them were two new wuxia (martial arts adventure) games — Justice and She Diao — based on classic novels by renowned authors Woon Swee Oan and Jin Yong.

Why it matters: In recent years, wuxia games have become a hugely popular genre in China. NetEase is also looking to bring some of its most successful games to international markets and to emulate the recent success of Eggy Party, which saw the highest number of daily active users in NetEase history in February. To increase its global appeal, the event was also streamed in English and Japanese via YouTube and Twitter.

Justice and She Diao: NetEase has invested RMB 800 million ($114 million) over the last four years into the development of Justice, an MMORPG (massively multiplayer online role-playing game) wuxia title. 

• Set in a world of martial arts, magic, and ancient Chinese mythology, Justice sends players on a journey to uncover the truth behind a great conspiracy and fight their way through hordes of enemies. The game is based on the famous wuxia literature works of writer Woon Swee Oan (also known as Wen Rui’an). 
• Justice is being billed as having the first intelligent NPC (non-player character) system in China’s gaming industry. Players can interact with AI-controlled NPCs as they explore the game’s world.
• The game will be launched on June 30, with the number of pre-registration players already exceeding 30 million.
• Another anticipated open-world wuxia game is She Diao, which is based on the famous martial arts novel The Legend of The Condor Heroes, written by Jin Yong. According to NetEase, the game uses classic characters and novel plots, and allows players to explore the landscape of the Song Dynasty with a suite of exclusive martial arts moves. A release date for She Diao has not yet been announced.
• Other new game titles released in the event are real-time simulation racing game Racing Master, role-playing game Raid: Shadow Legends, open-world fantasy game Qi Feng Travelers, competitive survival shooter game Badlanders, basketball game Dunk City Dynasty, 2v4 competitive stealth game Mission Zero, multiplayer online role-playing game Lord of Dragon, geo-strategic simulation game Infinite Borders, and post-apocalyptic shooter game Ashfall.

Context: NetEase’s net revenues from games and related value-added services were RMB 74.6 billion ($10.8 billion) in 2022, compared with RMB 67.8 billion ($9.64 billion) the year before, representing a 10% yearly increase, according to its fourth-quarter financial report.

• In March 2023, Eggy Party demonstrated huge potential by becoming the 18th highest-revenue mobile game globally despite still only being available in the China market.
• Eggy Party is a casual game for mobile devices that involves competing against other players to reach the end of each stage while avoiding various obstacles. The game earned nearly $30 million in March, which helped NetEase become the second biggest Chinese mobile game publisher by revenue, according to Sensor Tower. 
• Recently, NetEase announced the overseas launch of Eggy Party on April 21, starting in the Philippines, with more regions and platforms to follow this year.

Chinese tech giant Tencent reported strong growth in gaming revenues in its first quarter earnings released on Wednesday. Overseas gaming revenue was up 25% year-on-year to RMB 13.2 billion ($1.88 billion), while gaming revenue in the Chinese market rose by 6% year-on-year to RMB 35.1 billion ($5 billion). 

Overall, Tencent surpassed analysts’ expectations with its first-quarter financial results. Total revenue for the company amounted to RMB 150 billion ($21.8 billion), representing an increase of 11% year-on-year. Net profit came in at RMB 33.4 billion ($4.9 billion) on a non-IFRS basis, up 27% yearly. 

Why it matters: The gradual recovery of Tencent’s gaming business was a key factor in the tech major’s upbeat performance, with the unit reversing its trend of negative growth in the last three quarters. Tencent’s release of new games such as Triple Match 3D and updates to existing hit games has helped generate healthy revenues for its overseas gaming business.

Details: In the first quarter of 2023, Tencent’s revenue from games reached RMB 48.3 billion ($6.9 billion), up 11% up year-on-year. The company’s average daily gaming revenue exceeded RMB 500 million ($71 million) in the first quarter of 2023, according to the figures.

• Tencent’s domestic gaming revenue during the period rose 6% year-on-year to RMB 35.1 billion ($5 billion), while its overseas gaming revenue rose 25% to RMB 13.2 billion ($1.8 billion). 
• Revenue from domestic games came mostly from established titles such as Honor of Kings, Dungeon and Fighter, CrossFire Mobile, and Arena Breakout. In the first quarter of 2023, Honor of Kings released new paid-for skins based on Shan Hai Jing (a classic compilation of mythological Chinese geography and beasts) using targeted marketing, which the firm credited with helping Honor of Kings boost its income. In January 2023, Honor of Kings earned $250 million globally from Apple’s App Store and Google Play, ranking first in the global mobile game best-selling list, according to market intelligence firm Sensor Tower. Revenue from iOS downloads in China accounted for 94.1% of this total.
• Fight of the Golden Spatula, Tencent’s self-developed mobile auto battler spin-off of the popular Teamfight Tactics released in 2021, was another highlight for the company, increasing its gross revenue by 30% year-on-year in the first quarter and topping 10 million average daily active users in April 2023.
• Revenue from Tencent’s international games was mainly driven by the strong performance of Valorant and PUBG Mobile. The first-person tactical hero shooter game Valorant increased monthly active users with the release of a new map and a new agent during the first quarter. Tencent’s financial report stated that the title’s gross revenue increased by 30% year-on-year in the first quarter, helped by popular Japanese- and alien-themed weaponry.
• PUBG Mobile ensured its growth in daily active users during the first quarter with new combat features and enhanced multi-player modes. Tencent introduced a map editing tool to facilitate user-generated content, increasing the game’s user engagement and time played.
• The report also provided an update on Tencent’s protection program for underage players. Minors accounted for 0.4% of total time played and 0.7% of total gross earnings for domestic games during the first quarter, down by 96% and 90% respectively from the same period three years ago. The Chinese government introduced a set of regulations in August 2021 ordering gaming companies to ban underage users from playing on weekdays and allow them only an hour of play time between 8 p.m. and 9 p.m. on Fridays, weekends, and public holidays.

Context: At Tencent’s annual gaming conference Spark 2023 this week, the Chinese tech giant introduced updates on 15 previously announced titles and revealed 20 new projects. The previous titles included Honor of Kings, Arena Breakout, Moonlight Blade, and SYNCED. The conference also featured more renowned imported titles, namely Valorant, Lost Ark, and Alchemy Stars. The company was keen to emphasize the “social value” of its gaming arm at the event, as the industry continues to emerge from a lengthy period of regulatory scrutiny.

• The National Press and Publication Administration (NPPA), China’s gaming regulator, announced 86 new licenses for domestic games on April 20 this year. Currently, 347 domestic games and 27 imported games have been issued with licenses so far in China in 2023, compared to 513 game licenses for the whole of 2022. The renewed issuance of licenses is seen as  a significant sign for the recovery of China’s gaming industry.
• In the fourth quarter of 2022, Tencent’s domestic gaming revenue was RMB 27.9 billion ($3.9 billion), a decline of 6% year-on-year. Revenue from international games reached RMB 13.9 billion ($1.9 billion) during that period, representing an increase of 5% year-on-year.

On Monday, Tencent Games held its annual gaming conference Spark 2023 online, introducing dozens of new gaming-related titles and projects. The Chinese gaming giant also highlighted a slew of “social value” projects using gaming technology, in an attempt to show that the gaming industry can have a positive impact upon society as it emerges from a lengthy period of regulatory scrutiny in China. 

Why it matters: China’s gaming industry has faced heavy regulation since the summer of 2021 but saw signs of this easing earlier this year as licenses for new games continued to return to regular levels. Tencent Games, the leading company in China’s gaming sector, is eager to prove to the regulators that the industry can provide value to society, outside of just producing popular entertainment. 

Details: Tencent introduced a series of new projects using gaming technology for “social value,” including a flight simulator, a game-driven robot-learning project, a 3D online tour of the Great Wall, and games related to clinical research. The gaming unit also announced 26 updates on its more traditional gaming titles, including new games and new updates on hit titles such as Honor of Kings.  

• Tencent will launch a full-motion flight simulator next month. The simulator is based on a gaming engine developed by Tencent Games’ CROS (Common R&D and Operation Systems) unit and was created jointly with Nanhang Xiangyi, a subsidiary of China Southern Airlines. Tencent said during the event that the simulator aims to create a more realistic and efficient training scenario for pilots.
• A new robot-learning project initiated by Tencent Games’ START Team and Tencent Robotics X Lab was also announced. It uses AI to generate the actions and decision-making of the robots, combining gaming and robot development. Tencent claims that the training efficiency of a single robot is improved by 20 times after CPU optimization via the project.
• Tencent’s online tour of the Great Wall combines photo-scanning modeling, game engine, and cloud gaming technologies. The project uses gaming technology to achieve fine-detailed rendering and immersive digital imagery usually seen only in AAA games rather than cultural heritage projects. The tour is accessible through a mini-program on WeChat and has received more than 40 million views since it was launched last June. The project won one of the 2022 Global Awards for World Heritage Education Innovative Cases awarded by the United Nations Educational, Scientific and Cultural Organization. The gaming giant also unveiled a similar project featuring detailed scans of the historic Buddhist artworks at the Unesco-protected site of the Mogao grottoes near Dunhuang.
• Another “social value” project came with the showcasing of narrative puzzle game Pavlov: Brain’it On, which looks to harness clinical research to “help players exercise various cognitive capacities, such as attention, thinking speed, memory, inductive reasoning, and spatial imagination,” according to Tencent. The title was developed by the Chinese tech giant’s Social Value Exploration Center in collaboration with NExT Studios and the Tianqiao and Chrissy Chen Institute (TCCI).
• The firm’s Social Value Exploration Center also worked on Room 301 NO.6, which aims to help the public better understand the world of Alzheimer’s patients. The narrative game “allows users to experience, feel, and understand the lived experience of patients with Alzheimer’s,” Tencent claims.
• In terms of new out-and-out gaming titles, Valorant and Lost Ark attracted significant attention at the event. Valorant is a first-person tactical hero shooter game developed and published by Riot Games in 2019, but which will now be available in China for the first time after Tencent announced a distribution deal. Valorant hit a new record with an estimated total of more than 20 million active players throughout April 2023, according to Tracker Network. The China version will start beta testing in June.
• Lost Ark is a 2019 MMO (massively multiplayer online) action role-playing game co-developed by Tripod Studio and Smilegate. Lost Ark will be launched for the Chinese market this summer, with unlimited pre-release reservations now open. In February, Lost Ark recorded more than 1.3 million concurrent players on Steam, according to Studio Loot. With this number, it overtook CS:GO to claim second place in the all-time concurrent peak charts, behind leader PUBG.

Context: The National Press and Publication Administration (NPPA), China’s gaming regulator, announced 86 new licenses for domestic games in April, the latest sign that the licensing freeze that spanned August 2021 to April 2022 has now thawed. But despite a return to relative normalcy, many gaming companies are still feeling the pressure of a tighter approval environment. 

• Facing heavy regulation and stagnant growth at home, Tencent Games has been accelerating its expansion in overseas markets in recent months. In March, it brought its highest-grossing mobile game in China, Honor of Kings, to Brazil, where it quickly became the most downloaded mobile game in the country.

At the BEYOND Expo 2023 tech conference in Macau on Thursday, the co-founder of phone maker Nothing, Carl Pei, held a fireside talk with Richard Lai, a senior reporter at Engadget, to discuss the challenges and development of the brand. 

Previously the co-founder of Chinese smartphone company OnePlus, Pei founded Nothing Technology Limited in London in October 2020. Positioning itself as a design-focused phone brand, Nothing’s first mid-range model, the Nothing Phone(1), was released in July 2022. It was particularly notable for the array of lights on its back, known as the Glyph. The Glyph functions as a notification system, flashing in different combinations and colors, and accompanied by varying vibrations.

Late last year, Nothing opened its first physical store, in London’s Soho district, featuring products such as the Ear(1) wireless earbuds and Nothing Phone(1). In October, Nothing will celebrate its third anniversary with the launch of its new flagship device, the Nothing Phone(2). It will also use this launch to enter the US market, having to date targeted India, Germany, and the UK for its phones.

Richard Lai, a senior reporter at tech media outlet Engadget, interviewed Pei about the development of Nothing as part of a fireside chat at BEYOND. The below excerpts highlight the key segments of their 30-minute discussion. Pei’s quotes have been edited and condensed for clarity.

In the beginning, the main challenge to kickstart the business was the shortage in the supply chain, coupled with being a new company and lacking trust in the market. However, we managed to overcome these issues over time. We simply spoke about our ambitions and explained why we had a chance at being successful. Thankfully, we were able to convince some people to support us and release our products. It unlocked the next phase of our journey, with supply chain resources and capital issues resolved.

We recognized an opportunity within the phone industry, considering that there are only a few big companies like Apple, Samsung, and a few Chinese brands. When a company becomes big and successful, it would not want to take substantial risks. The company knows its customers  and the kind of products they want, so the barrier to entry is high. This situation positions us as the only company that can do things differently. Smartphones have been around for almost 20 years, and have become monotonous of late. No matter who you talk to, whether it’s our team, consumers, or even our sales partners or carriers, everybody is afraid that there’s no more innovation. So I think that’s what we really want to play with, for example: how can we make technology more fun? Again, I think we’re in a very unique position to do that.

We have a strong design team. One of our co-founders started out from a well-known fashion brand. We also have the former head of design from Dyson, who joined us to lead our design efforts. Although I have a good eye for design, I’m more like an editor. I only intervene in very extreme cases, when they’re obviously going down the wrong path, but normally, I’m pretty hands off when it comes to design.

We have big ambitions, but as a company, we operate in a practical and pragmatic manner. When building our first phone, we did not have the engineering capabilities that we really wanted. We were actually hiring the team as we were building the product. A lot of the engineering work had to be outsourced to third parties. We needed time to become more confident in our engineering capabilities. People have very high expectations when you’re selling a flagship, but our company started off with a mid-range product (Nothing Phone 1). We always wanted to make a flagship device, but we just needed to take a step-by-step approach. Over the past year, our engineering team has gotten ten times stronger. Our design team has become stronger as well, and we can now finally take the step to create a genuine flagship product.

We are headquartered in London with a team of 450 employees. We really believe in leveraging the strengths of different regions. Prior to moving to London, I stayed in Shenzhen for 12 years. We have strategically distributed the hardware team and supply chain in Shenzhen, while building the software team in Taipei. Additionally, we have our manufacturing in India and small-sale offices in the Middle East. Our central thought is to connect the world’s best talent and strength from different fields.

When it comes to our products, we are already in two big product categories, audio and smartphone. Therefore, rather than diversifying into numerous products, I think, we should focus on expanding our penetration and market share within the products we already have. 

For our first phone, we lacked sufficient engineering capabilities on the software side. So, when we asked our users about the primary reason they bought our product, the number one answer was design. I think our first phone primarily stood out due to its hardware design. However, this year, we’re excited to bring that design expertise to the software side as well. I’m looking forward to this because if people already appreciate us for our design, imagine the impact when we apply it to our software too.

The Glyph Interface consists of five light components on the back of Phone(1) that provide you with a new way to communicate and interact with the Phone(1). That’s the concept of calm technology. You don’t have to actively engage with the phone, but it still gives you important information. For instance, when you’re driving a plane as a pilot, there are signals and lights in your periphery. You need to focus on what is ahead of you, but you can still see what is going on around you. There are so many features that we are looking forward to updating in the Glyph interface. We’ve been criticized a lot that it’s just a phone with some funky lights on the back. Hopefully, we will optimize this feature.

The real evolution is coming soon. Basically, it will allow you to set different light patterns depending on who’s calling you. So you can see whether it is your significant other, your boss, or somebody less important, and then decide whether you need to answer it or not. When you charge wireless on the back, it lights up to signal your charging state. But I think we’re barely scratching the surface. Our intention is to enable users to put their phones down, for instance, during dinner with friends, Nothing phone can notify you about what’s going on without you paying too much attention to it.

Even big companies are starting to take inspiration from us, companies that are way more successful. At least we’re moving up the value chain in that regard. We want to ignite change, then inspire others to be a part of that change. Overall, the industry is getting more interesting.

Following the global success of Genshin Impact, Chinese game developer HoYoverse published new title Honkai: Star Rail on April 26. The game is an anime-styled science-fiction gacha title. Players of gacha games, a reference to Japanese toy vending machines, use in-game currency to purchase virtual boxes that contain a randomized selection of characters, weapons, and other rewards. 

Honkai: Star Rail is available on PC, PlayStation 4 and 5, iOS, and Android devices. In this new title, HoYoverse blends open-world and turn-based mechanics to create a different type of anime game to its famous predecessor. At first glance, Genshin Impact players might find some familiarity due to style and user interface, but a deeper exploration of Honkai shows it offers a genuinely alternative experience. 

An unskippable storyline

Honkai: Star Rail is the fourth instalment of the Honkai series, drawing on characters from Honkai Impact 3rd and Tears of Themis, and gameplay elements from Genshin Impact. New players who are not familiar with the previous titles in the series might be a bit overwhelmed to start, with novices needing some time to digest wordings and worldview settings. But the game’s narrative becomes simpler after the prologue, as the story transitions into the stage of planetary adventures.

The game is set in a fantasy universe where humanity follows in the paths of godlike beings called “Aeons,” in an attempt to stop a pervasive corrupting force, the “Fragmentum.” In the game, players take on the role of “Trailblazers,” waking up without memory aboard a space station. You discover your body contains a destructive matter called “Stellaron” and join a band of adventurers, traveling between planets aboard the “Astral Express,” a space-train.

The game’s characters have distinct personalities and the main story is fast-paced. Humor is a key feature of HoYoverse’s game, with NPCs messaging you to lighten the mood while the main storyline unfolds. Some players may feel like the asides, seen in props and messages, waste time or aren’t especially funny, preferring pure combat. Others will enjoy chatting to NPCs to deepen the sense of immersion.

The game’s plot and script have room for improvement. Not being able to skip along in the plot and having to wait for a character’s action to finish before clicking on the next line of dialogue can be frustrating. Additionally, players can only obtain the first accessory character gifted by the system after several hours of story, by which time an impatient beginner may have abandoned the game due to perceived lack of progress. 

An array of gacha characters

Honkai: Star Rail currently offers 28 characters, categorized in the following seven elements: lightning, ice, fire, wind, imaginary, quantum, and physical. Thus, players have plenty of choice when it comes to building a team. 

Desired characters and weapons acquired through the gacha system are called Warps, and you need to spend specific types of in-game currency to get a Star Rail Pass. With this, players can unlock four or five star characters. In-game lolly accumulates the more you play, or you can choose to accelerate the process with fiat currency.

It’s possible to complete the entire game without spending a cent, but it’s hard to ignore the temptation of in-game purchases. It is especially difficult to resist the urge to buy Star Rail Passes if you’re obsessed with character collection or weapons upgrading.

The alternative is putting in long hours and putting up with a degree of drag in the story. 

Strategy over action

The major difference between Genshin Impact and Honkai: Star Rail is how combat works. Genshin Impact is a third-person real-time action game, whereas Honkai is a turn-based strategy game. Players build up and control a team of four characters in turn-based combat. 

When in combat, you take turns attacking each character and performing actions one by one. The same rules apply to your enemies. You therefore have to rely more on strategy to win your battles. Different character skills, elements, and order of play may have a different impact. The battle scenes are compelling, but there’s also an option for double-speed and automatic mode for these scenes, enabling you to speed the battles along if you want.

Players can move around various locations to explore tasks, but it is not a fully open-world game. There are various locations where you can teleport from one region to another but they are not interconnected.

Stunning visuals

The aesthetics and immersive worlds that HoYoverse has previously built have been major factors in the company’s  success. Like Genshin Impact, Honkai has stunning graphics, with detailed character designs and lush environments, making it a treat for the eyes. The exquisite surroundings and backgrounds keep you engaged in the anime sci-fi world. 

Each location is markedly different from the others, again keeping exploration enticing. The treasure chests in the anime world are abundant as well, continuously motivating you to find out more. 

Conclusion

Overall, Honkai: Star Rail has done its makers proud, meeting the high standards set by Genshin Impact. With an intriguing sci-fi narrative, high-quality visuals and an addictive gameplay system, its players should be satisfied for some time to come. In terms of content optimization, HoYoverse needs to put its mind to work if the company wants to emulate its most famous title’s popularity and keep active players hooked for the foreseeable future.

Oppo released the flip foldable phone Find N2 Flip globally in February as the brand’s first foray into the flip foldable smartphones. The device has been on sale in Europe and Asia since March, with a price of 849 euros ($978). The phone comes with 8GB RAM and 256GB storage and in two colors: purple and black. Our team received a black model for review and tried it out for a fortnight. 

The Find N2 Flip is the smaller flip foldable in Oppo’s first foldable release. The Find N2 is a bigger standard foldable that gives users twice the usual screen space. The Find N2 Flip is well-designed, likely to appeal to younger customers with lightweight design, large secondary display, and pocketable size. 

The key specs

Powered by a MediaTek Dimensity 9000+ processor, the Find N2 Flip offers a 6.8-inch AMOLED main screen and a 3.26-inch external screen. Flip phones tend to have small batteries due to their compact bodies and large hinges, but the Find N2 Flip managed to use a large battery of 4300mAh. In addition, the camera system includes a 50MP main camera with a Sony IMX890 sensor, 8MP ultra-wide camera, and a 32MP front camera.

Cute outer display and pocketable

The Find N2 Flip is surprisingly thin and light, weighing just 191g and measuring 7.45mm when folded. The device’s size when folded resembles a small makeup mirror – it’s delicate and compact and can be easily placed in a small bag or pocket. When handled in the palm of the hand, the Find N2 flip delivers a smooth and natural feel. 

With 3.26 inches, the Find N2 Flip’s external screen is the largest of any flip smartphone currently available. Despite the device’s lightweight and pocketable size, its external screen is big enough to showcase meaningful information and also allows users to check notifications, play music, answer calls, and take photos, so there’s no need to flip open the phone constantly. The Find N2 Flip offers six widgets for its cover screen, including weather, timer, audio recorder, camera, calendar, and earbud controls. Though the cover screen functions are currently limited, Oppo has repeatedly promised that it will expand the selection over time. 

Once opened up, the device feels a bit less convenient, the phone seems a little long and isn’t as easily swipe-able, especially after easy access on the external screen. The size of Find N2 Flip after unfolding is 166.2mm x 75.2mm x 7.45mm, while the 6.8-inch AMOLED inner screen has a ratio of 21:9. 

Adding to its cuteness factor and a clear attraction for younger users, the Find N2 Flip comes with five exclusive cartoon pet wallpapers. Users can choose different animals to display on the external screen, with cartoon pets displaying different animated states based upon how the device is being used. For example, when listening to a song, the pets on the wallpaper will “listen along.” Users can also click on the screen to “interact” with the pets.

Oppo uses a new Flexion Hinge, which ensures better resistance to dust, leaves little gap when closing the device and makes the fold barely visible. Although we admittedly only used the device for two weeks, we could hardly see the crease of the inner screen from the front and could only view a faint hint from the side under bright lighting. According to the company, even after 216,000 folds and unfolds, lab tests found that the crease remains almost imperceptible from most angles.

Durable battery and standard performance

When it comes to smartphone design, less space usually means less room for other components, like batteries. The improved, miniaturized hinge in Find N2 Flip made room for a high-capacity, fast-charging battery. To improve battery performance further, Oppo also worked closely with MediaTek to create an optimized version of the Dimensity 9000+ chip. In addition to the large battery capacity of 4300mAh, 44W SUPERVOOC fast charging allows users to go from nearly empty to 50 percent in just 23 minutes, and to 100 percent within one hour. Under normal usage conditions with screen time of between four and five hours, we were easily able to make the batter last for a day and a half or even two days. However, the device does not support wireless charging. 

The phone handles multitasking with ease and glides through multiple apps without a stutter. It’s unfortunate that the Find N2 flip is only available in a single memory and storage configuration of 8GB RAM/256GB internationally. In the Chinese market, the phone options are more diversified with 12GB RAM or 16GB RAM and 512GB of storage.

Photo friendly

The Oppo Find N2 Flip is equipped with a 50MP main camera with a Sony IMX890 sensor, an 8MP ultra-wide-angle lens, and a 32MP front camera. The 50MP main camera performs well in the day, offering detailed, crisp, and natural-colored imagery. Oppo’s self-developed MariSilicon X imaging system introduces better night shooting capabilities. 

Here are some examples of the device’s daylight and nighttime photography capabilities from our trial: 

The Find N2 Flip’s foldability also expands its photography features. With the cameras still operable when the device is partially folded, the phone can be placed on a surface for stable photography or video recording without the use of a tripod. It can also be used as a sort of camcorder when opened up to 90º, making for a more stable filming experience compared to the standard smartphone.

Conclusion

Although the Find N2 Flip is Oppo’s first flip foldable phone, it provides a mature product experience. The elegant design, compact body, weight, strong camera performance, and large battery all make Find N2 Flip an impressive option in the foldable phone category. 

Pros

• Large external screen
• Unnoticeable crease
• Decent 50MP main camera
• Large battery capacity for a flip phone

Cons

• Limited functions on the external screen
• No wireless charging
• No water resistance

HoYoverse, the developer behind smash hit Genshin Impact, has seen its latest game, Honkai: Star Rail, leap to the top of Apple’s App Store download charts following its launch on April 26. Initially teased on April 23 and now available worldwide in beta mode, the game has already garnered high expectations, amassing more than 30 million pre-download reservations after it was first announced. 

HoYoverse is also exploring the use of AI tools to achieve a better immersive game experience for the new title, according to National Business Daily. For example, the team has been trying to incorporate AI technology into the behavior patterns of NPC (non-play characters) in Honkai: Star Rail. 

Why it matters: HoYoverse’s Genshin Impact, an anime-style role-playing game (RPG), has consistently brought in sizable revenue for the company. This new game has the potential to widen HoYoverse’s lead in anime RPG games. On April 23, Honkai: Star Rail topped the free download list in Apple’s App Store in more than 113 countries and regions including the US, Japan, and South Korea, according to Chinese media outlet National Business Daily. 

Details: The fourth installment of the Honkai series, Honkai: Star Rail is a space fantasy game featuring fantasy elements with myths and legends integrated into a sci-fi storyline. Players can control up to four characters and form a team by themselves. The game includes elements of open-world, dungeon exploration, and turn-based strategic combats.

• HoYoverse is keen to emphasize that Honkai: Star Rail is not a direct sequel to its previous title Honkai Impact 3rd. While the two games share themes, elements, and characters, the producer says the new title is an independent game and players don’t need previous knowledge of other Honkai titles. 
• Honkai: Star Rail and Genshin Impact do share some similarities, but the two games differ in their combat scenarios. Genshin Impact is more of a third-person action RPG, whereas Star Rail is a turn-based RPG.
• Honkai: Star Rail released an official trailer called Interstellar Journey on YouTube on Tuesday, reaching 1.3 million views in around 24 hours. 
• HoYoverse plans to widely market the game in the following months, introducing the new title at  events including LA’s Anime Expo, Japan Expo, Germany’s Gamescom, and Tokyo Game, according to an official press release. 

Context: Genshin Impact ranked third on the global list of highest-earning mobile games in March 2023, according to Sensor Tower. The same data showed that 50.2% of the title’s revenue comes from the Chinese iOS market, with the Japanese market accounting for 20.2% and the US market accounting for 9%.

Extended reality chip startup GravityXR has completed a pre-A+ worth millions of dollars, according to local media outlet LatePost. The round of financing was led by Goertek’s Tongge Fund and joined by ByteDance’s VR headset maker Pico and gaming companies HoYoverse and 37 Interactive Entertainment, among others. These companies are leaders of the XR industry chain, with Goertek the world’s largest manufacturer of XR glasses.

GravityXR has plans to expand its team, develop next generation XR chips, and carry out another round of financing. Combined with previous fundraising, the company has raised nearly RMB 1 billion ($1.45 billion) in total since its founding in September 2021.

Why it matters: Extended reality (XR) is a catch-all term for augmented, virtual, and mixed reality. The technology combines with or mirrors the physical world via a digital twin world, and enables interaction between them. Many consumer tech giants see XR devices as having the potential to become the next-generation of ubiquitous computing platforms, a role dominated by smartphones today. 

• Devices equipped with XR have already started mass production in the games and entertainment industries. Last year, 8.8 million VR devices were sold worldwide, alongside 42 million game consoles. Some of the better-known firms are Oculus, acquired by Meta in 2014, and Pico, acquired by ByteDance in 2021.

Details: GravityXR develops metaverse interfaces, hardware chips, and related algorithms, offering new XR user experiences. 

• GravityXR claims its first generation product will be in mass production by the end of 2024. The firm is currently developing a co-processing chip for XR devices, which can optimize the display, sensor, and other components of an XR device. The new chip will provide real-time image rendering, sensor data processing, and mixed-reality interaction functions, according to LatePost.
• GravityXR’s first XR co-processor chip will adopt 14nm or above advanced technology. Its core function is to help render and reduce the load of the main chip, as the GravityXR chip can coordinate with the customized XR device chips made by semiconductor giants Qualcomm and Mediatek. GravityXR’s self-developed algorithm reduces motion sickness during the XR experience and improves display quality, the company told LatePost.
• GravityXR has previously received investment from Gaorong Capital, Sequoia Capital, IDG Capital, GSR Ventures, Lenovo Capital, and Incubator Group. A core member of GravityXR’s founding team previously worked in Apple’s XR team for eight years, while other co-founders came from leading companies such as Huawei, Meta and Amazon, and specialize in chips, displays, optics, and algorithms. The company has about 200 employees.
• Goertek, a Chinese manufacturer and an Apple supplier of electronic components, launched its Tongge Fund in May 2022.

Context: The global extended reality market reached $35.14 billion in 2022 and is projected to hit around $345.9 billion by 2030, growing at a compound annual growth rate of 33.09% from 2022 to 2030.

• In the fourth quarter of 2022, the top three XR manufacturers globally were Meta (with 81% of the market), DPVR (7%), and Pico (7%), according to a report from market research firm Counterpoint. 
• Apple originally planned to launch its VR headset in 2021, but delayed the move until this year. The California-headquartered tech giant plans to equip its forthcoming headset with games, fitness apps, and even a virtual reality reading function, according to a report by Bloomberg. 

Vivo released two new foldable flagship phones on Thursday, a large Vivo X Fold2 and a clamshell foldable Vivo X Flip, the first time the brand has released a smaller-style flip phone. The second generation of Vivo’s foldable line, the Vivo X Fold 2 is the first foldable smartphone powered by Snapdragon 8 Gen 2. The phone is now available for pre-order in the Chinese market and will start shipping on 28 April.

Why it matters: As the larger smartphone market sees a sustained period of slowing growth, brands are increasingly looking to foldable devices to boost flagging sales and diversify their offerings. In 2022, sales of foldable phones in the Chinese market reached 2.83 million units, up 144% year-on-year, according to research firm CINNO. Smartphone shipments in China in 2022 experienced a 22% drop from the year before, hitting 272 million. Despite strong growth, foldable still remains a niche sector however.

Details: With the inclusion of a Snapdragon 8 Gen 2 chipset, the first time Qualcomm’s high-end processor has been used on a foldable phone, the X Fold 2 is being positioned as a major flagship smartphone by Vivo.

• The Vivo X Fold 2 comes with a 2K+E6 Samsung dual screen, including a 8.03-inch E6 AMOLED main screen, providing a resolution of 2,160 x 1,916 pixels, a 120Hz refresh rate, and a peak brightness of 1,800nits. The external screen measures about 6.53 inches, with 2,520 x 1,080 pixels resolution, up to 1600 nits brightness, and a 120Hz refresh rate. Both screens support 3D ultrasonic screen fingerprints.
• In terms of performance, the Vivo X Fold 2 is equipped with Snapdragon 8 Gen 2 and LPDDR5X + UFS 4.0 memory. It also comes with a self-developed V2 imaging chip, first used on the Vivo X90 series, for improved camera and gaming performance. It has a large battery of 4,800mAh and 120W dual-core flash charge, which can be charged to 100% in 26 minutes.
• The phone weighs 279.5 grams, 31.5 grams lighter than the first generation. Folded, the phone measures 161.29 x 73.42 x 13.2mm; expanded, it measures 161.29 x 143.43 x 5.95mm.
• The triple-camera system includes a 50MP main camera with OIS support and an f/1.75 aperture, a 12MP ultra-wide lens and a 12MP telephoto camera. The primary 50MP main camera with Sony IMCX 866 sensor has a Zeiss T* coating.
• Additionally, the company claims the X Fold 2’s new self-developed hinge can take up to 400,000 folds without breaking. 
• The X Fold 2 is priced at RMB 8,999 ($1,306) for 12GB/256GB storage and RMB 9,999 ($1,452) for 12GB/512GB storage. It comes in three colors: black, blue, and red.
• The Vivo X Flip is the company’s first clamshell foldable, featuring a three-inch external display. It has a 6.74-inch 120Hz OLED inner screen with 1,200 nits brightness. Powered by a Qualcomm Snapdragon 8+ Gen 1, the new flip phone starts at RMB 5,999 (around $870) for the basic 12GB RAM + 256GB model.

Context: Vivo has a lot of catching up to do in the foldable sector, ranking fifth in China’s foldable market in 2022 and taking just a 5.8% share of a market dominated by Huawei and Samsung, according to CINNO. Huawei’s  share of the market last year was 51%, followed by Samsung at 22.8%, and Oppo at 7.7%. 

• Oppo is also seeing quick growth of its foldable phones this year, capturing a 30% market share in January 2023, overtaking market leader Huawei in that month. This growth is attributed to the strong performance of Oppo’s Find N2 and Find N2 Flip models.

On Thursday, Xiaomi released the upper-end version of its flagship phone, the Xiaomi 13 Ultra. Working with Leica, the Chinese smartphone maker is attempting to position the device as more like professional camera in a smartphone rather than a smartphone with powerful cameras. The 13 Ultra features a rear camera with four lenses, while the main camera uses a 50MP 1-inch Sony IMX989 sensor, offering a physical aperture that opens as wide as f/1.9. The phone is priced from RMB 5,999 to RMB 7,299 ($870 to $1,142). 

Why it matters: This update to the Ultra series, which has long been Xiaomi’s smartphone offering, indicates the firm’s continuing ambition to push smartphones more into the realm of professional camera devices, with photography seen as the main selling point over other functionalities.  

Details: To back up its pro-camera ambition, the Xiaomi 13 Ultra cameras use Leica’s newly designed Vario-Summicron lens, with the device also offering manual aperture and optical stabilization. Xiaomi has also added professional photography accessories, including a wireless handle with built-in buttons and dial to give the phone a more camera-like grip.  

• The main camera of the phone features a one-inch 50MP Sony IMX989 sensor with a variable aperture, optical image stabilization (OIS), and Leica’s Vario-Summicron lens. Users can manually change the physical aperture on the main camera from f/1.9 to f/4.0, allowing for greater depth of field or more light. Three supporting 50MP rear cameras include a 75mm telephoto camera, a 120mm super-telephoto camera, and a wide-angle 12mm camera with macro mode. 
• Summicron indicates a maximum lens aperture of f/2.0. The term was originally assigned to the most popular focal lengths in Leica’s M-System: 28 mm, 35 mm, 50 mm, 75 mm, and 90 mm, according to Leica. 
• Xiaomi is also offering professional photography kits to accompany the phone for an extra $116. These photography kits include a protective case made of nano-skin technology and a wireless photography handle, giving users a physical shutter button. The protective case also comes with a 67mm adapter ring for the camera, allowing users to attach other lenses, and comes with a lens cap and camera strap. 
• The 13 Ultra is equipped with a 6.73-inch dust and water-resistant 1440-pixel OLED screen and is powered by a Snapdragon 8 Gen 2 processor. The 5,000mAh battery can be fast-charged wirelessly.
• The 13 Ultra is released in China this month, ahead of its launch in international markets. The device comes with a vegan leather coating in green, black, or white and offers three storage options: 12GM RAM + 256GB, 16GM RAM + 512GB, 16GB RAM + 1TB.

Context: Xiaomi’s income slid significantly in 2022, totaling RMB 280 billion ($40.68 billion), a decrease of 14.7% year-on-year, according to its financial results. But the firm said it had still managed to increase investment in research and development. In 2022, Xiaomi invested about RMB 16 billion ($2.32 billion) in R&D, an increase of 21% year-on-year, CEO and founder Lei Jun announced at this week’s launch event. Lei reiterated that the brand’s focus on the high-end phone market will not change in the long term. Lei estimated that the firm’s investment will reach RMB 200 billion ($29 billion) this year.

• Xiaomi’s financial report for the fourth quarter of 2022 shows that the company’s high-end smartphone shipments increased by 6.8% year-on-year during the period.
• Xiaomi and Leica first announced their collaboration on advanced camera-centric smartphones last year. The 12S Ultra became the first Xiaomi smartphone to offer an entirely new imaging system developed by Leica when it was released in November.

China’s largest gaming firm Tencent can finally advertise on ByteDance apps, according to online gaming analytics platform DataEye, a new milestone in the two companies’ relationship. ByteDance and Tencent have competed fiercely over the years, barring each other from cross-promotion and regularly engaging in legal wrangles. As a result, Tencent games have had limited exposure on ByteDance platforms, while ByteDance’s apps have had little publicity on Tencent platforms. 

The latest advertising data shows that Tencent’s war game Return to the Empire and multiplayer role-playing game Naruto have been advertised on Bytedance’s Douyin (China’s TikTok twin), news app Toutiao, and Xigua Video in the past seven days. 

Why it matters: The relationship between Tencent and ByteDance has long been tense due to their rivalry in content, video, and gaming. Recent developments show the two companies are moving toward a reconciliation after years of bitter competition. 

• On Feb. 7, Douyin and Tencent Video announced an unexpected cooperation, in which the two parties will jointly explore the promotion of videos and the secondary creation of short videos. Tencent has issued a long-term video copyright authorization to ByteDance and clarified secondary video creation rules. On Tuesday, Tencent was able to register the official account of Tencent Video on Douyin. The partnership deal between the two companies has even become a hot topic on microblogging platform Weibo. 
• Such reconciliation was unthinkable a few years ago. In the second half of 2021 alone, Tencent sued Douyin 168 times for video rights infringements, with compensation reaching almost RMB 3 billion (or $430 million). 

Details: Tencent’s game Return to the Empire has started to place advertisements on ByteDance’s Toutiao and Xigua Video in recent days. The game had previously been advertised mostly within Tencent’s platform, according to DataEye statistics. In addition, ByteDance’s Douyin accounted for about 15% of the gaming ads distribution for another Tencent game Naruto.

• The reconciliation will potentially benefit both sides. Traffic from ByteDance platforms may head in Tencent games’ direction. At the same time, Tencent’s ubiquitous app WeChat could open up to ByteDance and introduce new users to ByteDance apps.
• The promotion of bestselling Tencent games (like Honor of Kings) in Douyin may enrich ByteDance content.
• The move will have repercussions in livestream gaming too. In the future, ByteDance-based games may also enter the WeChat network and WeChat video channel.

Context: Sharing a focus on content and entertainment, Tencent and ByteDance were the top-grossing publishers in global mobile app stores in the first half of 2022. Tencent was the top-grossing publisher in the game and non-game categories, earning about $3.3 billion in the first half of 2022. The figure is almost 153% higher than ByteDance, which came second with $1.3 billion in revenue. Their disputes have been long-lasting: 

• In January 2023, Tencent super app WeChat temporarily blocked users from accessing links to ByteDance-owned short video app Douyin. 
• In June 2021, ByteDance criticized Tencent’s practice of blocking links to its products on WeChat and QQ in an online post, attaching a 59-page PDF file chronicling incidents of blocking in the past three years. 
• In May 2019, Tencent filed two lawsuits against ByteDance, requesting the owner of Douyin stop streaming Tencent’s hit titles CrossFire and Honour of Kings.
• In June 2019, Tencent filed six new lawsuits against ByteDance, demanding the company delete all Honour of Kings gameplay videos from the accounts of six specified users on Toutiao and Douyin. It demanded  ByteDance pay RMB 10.8 million (around $1.56 million) in damages.

Vivo, the Chinese phone maker known for its budget-friendly devices, released its new V27 series in India in early March, priced from $289 to $459. The mid-range smartphone lineup consists of the V27, V27 Pro, and V27e, with the V27 Pro being the premium model. TechNode has been trying V27 Pro out for the last fortnight and below are our thoughts.

The specs

The V27 Pro features a 6.78-inch 120Hz AMOLED screen, 50MP front and rear cameras, a 4,600mAh battery, 66W fast charging support, and a FunTouch OS 13 system based on Android 13. The Aura Light Portrait System is equipped with a Sony IMX766V Sensor and OIS (Optical Image Stabilization) support, which can create clear natural night photos in low-light environments. 

Powered by Dimensity 8200, a competitive 4nm chip, the V27 Pro is available in two colors, namely the Magic Blue and Noble Black. It offers three storage variants: 8GB + 128GB, 8GB + 256GB, 12GB + 512GB; the prices are respectively  37,999, 39,999, and 42,999 rupees ($462, $486, $523).

Sleek design

The V27 Pro’s most unique design features include its incredibly thin body design, color-changing back panel glass, and a 3D curved display with a 120Hz refresh rate. 

Vivo shaved the device’s thickness down to 7.4mm, making the V27 Pro the thinnest phone with a curved edge screen in the company’s history. The thickness of the Noble Black edition is 7.36mm while the thickness of the Magic Blue edition is 7.4mm. The thin design also makes the phone lightweight, weighing only 182g. But the phone does feel occasionally slippery in hand without a case, however. So the accompanying transparent phone case is a must if you want to ensure a good grip on the device. 

The phone’s back cover can change colors from light blue to dark blue depending on the light, adding to the phone’s stylish feel. 

The V27 Pro offers a 6.78-inch 3D curved screen with a refresh rate of 120Hz and ultra-high brightness. The 120Hz refresh rate and a visual enhancement feature provide a smooth gaming and video-watching experience. The 3D curved screen offers rich detail, but the device lacks stereo speakers, meaning the sound quality of the phone is average at best.

Beautiful night shooting

The V27 Pro features a 50MP primary rear camera with an f/1.9 aperture and OIS (optical image stabilization). It is assisted by an 8MP ultra-wide lens, a 2MP macro camera, and a ring-shaped dual-LED flash. On the front, the phone gets a 50MP selfie camera with an f/2.5 aperture and autofocus support.

The rear camera of V27 Pro has a 50MP OIS Ultra-Sensing Camera with Sony IMX766 sensor, which allows users to shoot clear, natural, and atmospheric night photos with ease. In addition, OIS allows for a longer exposure and increases light intake by six times, producing more stable snapshots and boosting image quality in low-light conditions. 

The following are some night street scenes we took with the device:

On cloudy days, the V27 Pro struggles to accentuate and enhance the natural light. Images taken in overcast conditions can therefore look a little dull and mediocre. However, the camera performs much better in warmer, brighter climates. Here are some photos we took to demonstrate the contrast between cloudy days and sunny days shooting with the phone:

The V27 Pro comes with a new wedding-style portrait feature, which is inspired by styles from Indian weddings. We did not have the opportunity to shoot a wedding, but this feature is worth exploring. The mode allows users to select three different filters, such as Prosecco, New Retro, and Pastels. Each one creates unique aesthetics, allowing users to choose the best style based on their preferences.

Performance and software

The V27 Pro is powered by a MediaTek Dimensity 8200 (4nm) chipset as its core processor, which is paired with 8GB/12GB of LPDDR5 RAM and 128GB/256GB UFS 3.1 storage. The storage isn’t expandable. The V27 Pro scored 839,769 points on the AnTuTu software benchmarking system, which is a good performance for mid-range phones in similar price ranges. As a reference, the Apple iPhone SE 2022 (iPhone SE 3) AnTuTu overall benchmark score is 762,983. Daily tasks such as watching videos, screen scrolling, sending messages, and playing games are relatively smooth compared to other mid-range phones. However, the phone does slow down and heat up a bit when running multiple apps in the background or playing high-performance games for more than an hour.

The V27 Pro comes pre-installed with the latest version of FunTouch OS 13, which is based on Android 13. It is a highly-customized mobile OS system based on Android. The “app pinning” feature helps to secure sensitive data that is convenient when someone else uses your phone. It is the capability to lock an application on the device’s screen and restricts the user from accessing anything else on the phone. However, this feature comes with a certain limitation as you will affect other functions on your device such as incoming calls, notifications & alarms.

Its split-screen mode is also effective, especially when wanting to copy information from one app to another, or when sending a message without interrupting the video-playing. 

While the phone comes with a 4600 mAh battery and support for 66W fast charging, it lacks wireless charging capability. Another downside is that the phone comes pre-installed with a slew of unnecessary apps. Also disappointing is the phone’s lack of dust and water resistance, making it less adaptable to different conditions.

Conclusion

The V27 Pro is an attractive phone with a decent design and impressive nighttime photography capabilities.  It can be a good mid-range phone for customers with a limited budget. 

Pros

• Elegant design and color-changing back panel
• Takes high-quality photos in low light
• 66W fast charging support
• 3D curved AMOLED screen with 120Hz refresh rate
• Triple camera system with a 50MP main camera

Cons

• Slippery without phone case
• Lack of stereo speakers
• No wireless charging support
• Lacks water and dust resistance
• Comes with unnecessary pre-installed apps

On Thursday afternoon, Huawei updated its flagship smartphones P series and Mate series with P60 and Mate X3. The phone release was part of Huawei’s spring product launch, which took place in Shanghai. In a bid to show its relevance and strength in consumer electronics, Huawei released 10 new products. The entire event lasted for more than four hours, and was livestreamed via the Chinese telecom giant’s Weibo account and its official website, with views on the former peaking at 600,000. 

Why it matters: The release of so many new devices was seen as an attempt by Huawei to demonstrate that its product research and development capabilities have not been dented by years of controversy and constraints. “We have been sanctioned for four years, but the spring is warm and the future is promising,” Yu Chengdong, the CEO of Huawei’s Consumer Business Group, said at the product launch. Other Chinese tech executives, such as founder of the Chinese internet portal Sohu Zhang Chaoyang and Weibo CEO Wang Gaofei, also attended the launch event.      

Details: The Huawei P60 series and Mate X3 mark the first time that the two flagship series have been updated at the same time. The launch also appeared to dispel previous reports that Huawei was considering selling its mobile phone unit.  

• In addition to the two phones, Huawei also released its Huawei Watch Ultimate smartwatch, Huawei smart-band B7, Huawei FreeBuds5 and Huawei FreeBuds Pro 2+ earbuds, Huawei Mate Pad11 tablet, Huawei Enjoy 60 phone, Huawei Q6 router, and Huawei Qingyun G540 laptop. 
• The Huawei P60 series consists of the regular P60, the P60 Pro, and the premium P60 Art, with prices ranging from RMB 4,488 to RMB 10,988 ($653 to $1599). It features the world’s first smartphone with two-way satellite communication technology, which supports the sending and receiving of messages without a mobile network signal. 
• The camera system is made up of a 48-megapixel main camera, a 13-megapixel ultra-wide camera, and a 48-megapixel telephoto camera with night vision. Huawei claimed that the Ultra Lighting Main Camera, boasting an F1.4–F4.0 auto-adjustable physical aperture, helps produce high-quality images in both daylight and night conditions.
• The Huawei Mate X3 foldable range includes a basic model and a premium model priced at RMB 12,999 and RMB 15,999 ($1892 and $2329). Both feature a lightweight body, IPX8 waterproof design, dual 120Hz screen displays and a triple camera setup, which is set to rival other leading foldable phones on the market. The Mate X3 weighs 239 grams, a little heavier than the 233-gram Oppo Find N2, but 10% lighter than the Samsung Galaxy Z Fold4. 
• The Huawei P60 series and Mate X3 foldable are both powered by a Snapdragon 8+ Gen 1 processor and support 4G only. They run on the new operating system HarmonyOS 3.1, which will allow users to customize the lock screen with new options and different display features.

Context: “2023 will be Huawei’s first year of returning to normal operations, despite ongoing US restrictions becoming the new norm,” Huawei’s rotating chairman Eric Xu said in an annual New Year’s message to employees at the end of 2022.

• In 2022, Huawei announced it signed more than 20 new or extended licensing agreements for its patents. The company ranked fourth last year by the number of patent grants in the US, according to IFI Claims Patent Services.
• Sales of foldable phones in the Chinese market surged 144% in 2022 over the previous year, growing faster than overall phone sales. According to the latest report from market research organization IDC, Huawei ranked first in China’s foldable phone market, with a share of 47.4%; Samsung ranked second with a market share of 16.5%.

Oppo released two flagship phones, the Find X6 and the Find X6 Pro, at its new product launch event on Tuesday afternoon. The Find X6 series features a triple camera design, with a wide angle lens with large 1-inch sensor, a periscope telephoto lens, and an ultra wide angle lens, as Oppo looks to dramatically upgrade its products’ imaging capabilities. 

Why it matters: In the past two years, rivals Vivo and Xiaomi have made significant progress in imaging, with the latter working with Leica for example, while Oppo’s camera systems have been seen as lagging behind as the company prioritized aesthetics. The new Find X6 phones, which are being positioned as high-end flagship models, are an attempt to regain the ground lost.

Details: The new X6 series was launched in the mainland China market only on Tuesday with prices starting from RMB 4,499 ($652). Equipped with three main cameras and advanced optical technology, the Find X6 series brings what Oppo claimed is “unprecedented image quality to both photo and video shooting on all three cameras.” 

• With its 1-inch sensor, the Find X6 Pro’s wide camera has the largest photosensitive sensor area of any smartphone camera. Similarly, the phone’s ultra wide camera is larger than any wide-angle smartphone camera to date. The two cameras are joined by a periscope telephoto camera, which is designed to capture images in low-light environments. 
• In terms of performance, the Oppo Find X6 uses the Dimensity 9200 flagship chip, while the Pro is powered with the Snapdragon 8 Gen 2. Both models have LPDDR5X memory and USF 4.0 flash memory. In addition, the Find X6 series is equipped with Oppo’s self-developed MariSilicon X chip, which is tailor made to improve imaging quality.
• Compared with its predecessor the Find X5 Pro, the Find X6 series offers a very different approach to design. Crafted from glass and aluminum, the centerpiece rounded lens module gives the Find X6 series a sleek appearance. The Find X6 features a 6.74-inch OLED screen, with a resolution of 2,772 by 1,240 pixels and supporting a peak brightness of 1,450 nit. The Find X6 Pro features a 6.82-inch screen with a 120Hz refresh rate and a resolution of 3,168 by 1,440, supporting a peak brightness of 2,500 nit.
• In addition to its flagship phones, Oppo also launched wireless noise-canceling earbuds Enco Free3 and its Oppo Pad2 at the event.

Context: According to market analysis platform StatCounter, Oppo accounted for 5.53% of China’s mobile phone market in February 2023, with Vivo making up 8.15% and Xiaomi 7.14%. 

• Oppo’s two main domestic rivals have both focused on imaging technology in recent years. In December 2022, Xiaomi launched its flagship Xiaomi 13 series phones with Leica optics.
• Vivo launched its flagship series the X90 for the global market last month, partnering with optical giant Zeiss to develop its camera sensors and lenses.

On March 8, the highest-grossing mobile game in China, Honor of Kings (HoK), launched in Brazil, marking the Tencent TiMi Studio Group game’s first foray into the global market. The number of pre-registered HoK players in Brazil before the MOBA (multiplayer online battle arena) title’s launch exceeded 2 million, quickly making it the most downloaded free mobile game in the country, according to a report from Chinese financial media outlet Baijing.

Why it matters: The Brazilian launch is a key part of Tencent’s global expansion as the Chinese gaming giant looks to overseas markets amid continued uncertainty at home due to heavy regulation and sluggish consumer spending. The team behind Honor of Kings hopes its experience in Brazil will lay a solid foundation for its future launch in other regions, such as Mexico, Egypt and Turkey, according to Tencent’s overseas game distributor Level Infinite.

• Tencent is increasingly relying on the overseas gaming market for growth. In its 2022 third-quarter financial report, Tencent’s global market revenue reached RMB 11.7 billion, more than one-third of its domestic game revenue RMB 31.2 billion.

Details: HoK released a series of high-quality cinematic trailers on YouTube ahead of its Brazilian launch. The pre-registration trailer Hey Brazil received 2.3 million views on YouTube in its first month.

• Tencent has set up dedicated servers in Brazil for a smoother gaming experience in the country. The firm also employed well-known Brazilian voice actors for the characters in the Brazilian version of Honor of Kings, alongside localization of in-game text, user interfaces, and character designs.
• HoK was released in Brazil on the iOS App Store, Google Play Store for Android, and Samsung Store, with the title offering 5v5 Matchmaking, 5v5 Quick Mode, 5v5 Ranked Match, 1v1 Solo Mode, and a newly created Casual Mode called the Infinite Brawl.
• Level Infinite first announced on Twitter last June that HoK would be launched globally by the end of 2022. However, this was later postponed until this year, with the company partly blaming the Covid-19 pandemic. 

Context: In February 2023, Tencent’s Honor of Kings remained the highest-grossing game app in China, earning about $113 million in monthly revenue. In 2022, Honor of Kings generated over $2.2 billion in revenue, making it one of the top-grossing mobile games of all time.

• At an event celebrating Honor of Kings’ seventh anniversary held in November 2022, Tencent provided new details on its plans to build a “universe” around the hit game, teasing a range of spin-off titles including chess and Street Fighter-style battle games.
• According to Chinese media outlet Sina, Brazil is the largest gaming market in Latin America, generating $1.84 billion in revenue in 2022. Among the gamer population in Brazil, the proportion of young players aged between 18 and 24 is relatively high, accounting for more than 20%, which benefits MOBA games that need a high level of DAUs (daily active users) and appeal to this demographic.
• In recent years, Chinese gaming companies have increasingly looked to overseas markets for growth. In the top 100 list of highest-grossing mobile games in the global market, Chinese game publishers account for 40% of the US market, 43.1% of the Japanese market, and 49.1% of the Korean market, according to Chinese data research firm CNG’s Global Mobile Game Market 2022 report.
• Chinese gaming giant Tencent doubled its stake in AAA game title developer and publisher Ubisoft to around 10% in 2022, a move it followed by taking a 20% stake in Korean studio Shift Up.

READ MORE: Chinese gaming companies go overseas as home growth slows

OnePlus, a Chinese phone brand owned by Oppo, revealed its new Ace 2V at a product launch on Tuesday, highlighting its high performance stats and low price tag as it looks to accrue market share in a segment long dominated by Xiaomi.

Why it matters: The Ace 2V provides a new threat to Xiaomi’s Redmi series when it comes to price sensitive consumers, a field where the latter has traditionally excelled. The basic Redmi K60 model is priced at RMB 2,999; the standard Ace 2V undercuts it by RMB 700. 

• Lu Weibing, Xiaomi’s president, announced a price cut for the Redmi K60 series on his Weibo account on Feb. 7, the same day that the OnePlus Ace 2V was revealed. A week later, president of OnePlus China Li Jie posted on his Weibo account, “Don’t give in to mediocrity, this is a victory for effort,” and “We won’t sacrifice specs and user experience to profit” (our translations).

Details: The Ace 2V phone began pre-sales on Mar. 7, though is currently only available in China. According to OnePlus, it will be renamed OnePlus Nord 3 in overseas markets, but its global release date is as yet unknown.

• OnePlus has priced its three Ace 2V models (12GB RAM + 256GB, 16GB RAM + 256GB and 16GB RAM + 512GB) at RMB 2,299, RMB 2,499 and RMB 2,799 respectively.
• The OnePlus Ace 2V offers a Dimensity 9000 chip, 12/16 GB of RAM and 256/512 GB of UFS 3.1 storage. At a press conference demonstration, the OnePlus Ace 2V achieved a score of 1.05 million on the AnTuTu software benchmarking system, the highest of any Dimensity 9000 phone to date. The company says that such specs will ensure a smooth gaming experience.
• The phone features support for 5G, Wi-Fi 6, Bluetooth 5.3, NFC, and several navigation systems. It includes an infrared port and 80W fast charging port, with a battery capacity of 5,000 mAh. It also offers a 6.74-inch OLED display with 2,772 x 1,240 resolution and a 120Hz refresh rate and comes with a three camera system featuring a 64 megapixel main camera, 8 megapixel ultra-wide angle lens, and 2 megapixel macro lens.

Context: In December last year, major Chinese phone maker Oppo announced that it would be investing RMB 10 billion ($1.43 billion) over three years as part of a “dual primary” strategy aimed at enhancing and clarifying OnePlus’ status. The two firms merged in 2021. 

• According to data from technology market research firm Counterpoint, Oppo was the third highest selling smartphone brand in China in the fourth quarter of 2022, taking 16% of the market and ranking behind Apple and Vivo. Oppo’s sales figures include those for OnePlus. Xiaomi’s market share was 12% for the same period. 
• In December, it was reported that Xiaomi was undertaking large-scale layoffs after a persistent decline in its phone sales over the course of 2022.

As China and its economy regain momentum after three years of strict Covid control policies, the country’s top lawmakers and political leaders are meeting in Beijing this week to discuss the country’s governance, economy, budget, and various key issues. The meeting is part of a week-long annual gathering known as the “two sessions,” or lianghui.

Increasing domestic demand is a top priority for the government in 2023. In 2022, China failed to reach the 5.5% GDP growth rate target it set last year (China grew 3% instead). For 2023, China has set an annual GDP growth target of 5% and hopes that its people will spend more to support the country’s economy. 

Much of this year’s growth plan is centered around stimulating consumer spending. Particularly in areas related to technology, the country is relying on people to make more big-ticket purchases like cars, and spend more on various shopping platforms, while building more network infrastructure this year. These include continuing to increase the steady growth of new energy vehicles and charging stations, supporting newer models of e-commerce, building 5G network infrastructure in smaller cities, and constructing national data centers in planned regions. 

Buy more EVs

China will continue to push the adoption of electric vehicles as part of its stimulus package to boost consumption and to “enhance its leadership position” in the new energy vehicle industry, policymakers said in this year’s annual government work report. It will also promote the wider use of battery swap technology and continue to support the battery industry.

The two sessions is also an opportunity for enterprise leaders (both private and state-owned) to present policy recommendations to the country’s top political and advisory bodies. 

Most proposals from leaders of domestic auto companies have echoed the government line. Feng Xingya, general manager of GAC, a manufacturing partner of Toyota and Honda in China, urged the government to roll out supportive policies to reduce the construction cost of battery swap facilities and push for a standard battery design among different manufacturers. CATL chairman Zeng Yuqun called for the establishment of a quality assessment framework to pave the way for the spread of lithium-ion batteries for grid energy storage.

Lei Jun, CEO of Xiaomi and also a delegate to China’s top legislative body the National People’s Congress (NPC), suggested that China issue data security standards for automobiles and promote data sharing among companies for intelligent connected vehicles. In addition, He Xiaopeng, CEO of Xpeng Motors, called for new legislation to clarify liability in traffic accidents involving autonomous driving cars. 

Shop more online 

Expanding consumption is key to China’s 5% economic growth this year, as the country tries to recover after stringent Covid-19 controls slowed economic growth. The country’s economic planner sees huge potential for e-commerce platforms as drivers of growth.

Strong export growth in the first half of 2022 has boosted China this year, with the country’s total trade of goods reaching a record high of RMB 42.07 trillion ($6 trillion). In particular, cross-border e-commerce exports grew by 11.7%, reaching RMB 1.55 trillion in 2022, reflecting the rise of overseas retail as a major component of China’s export trade. This year, the government pledged more support for cross-border e-commerce and overseas warehouse development in the annual report. 

For the domestic market, Chinese authorities vowed to guide the development of new models such as live commerce and on-demand retail, and lead the sector towards high-quality growth.

Wang Yinxiang, an NPC deligate from Cao county, a garment and coffin manufacturing hub in eastern Shandong province, found in her search that e-commerce in her rural county has helped increase the average lifespan of people in the region. The county is known for being a Taobao village (where at least 50 households own shops on Alibaba’s e-commerce platform Taobao).

Build more 5G, data centers, and other infrastructure 

This year, China will continue to upgrade to modern infrastructure systems such as 5G, data centers, and the Internet of Things. Specifically, China will focus on expanding internet networks in small- and medium-sized cities. The government aims to accelerate the development of 5G and broadband networks, and achieve greater integration of cloud networks. In addition, the country will continue the expansion of data centers and data hubs planned under the national data center project the “East-to-West Computing Capacity Diversion Project,” aiming to move more data processing from the country’s prosperous but land-scarce eastern regions to the country’s less-developed but sparse western regions.

In addition to networking and data infrastructure projects, the country also said in its work report that it plans to support the construction of smart highways, civilian space infrastructure, and a commercial space launch center on the southern island of Hainan. 

Voice recognition company iFlytek CEO Liu Qingfeng proposed that China should accelerate the construction of artificial intelligence models to enjoy the AI boom. Liu pointed out that while Chinese institutions and enterprises have published a series of large-scale models, the intelligence level of the large-scale models is still significantly lower than OpenAI’s ChatGPT. He asked China to accelerate the development of AI.

CapCut, an all-in-one video editing app owned by TikTok parent company ByteDance, has surpassed 200 million monthly active users, according to a report from Chinese financial media outlet Baijing. 

Why it matters: CapCut’s success comes amid an increasingly hostile climate for China-developed apps in the US and European markets, with ByteDance’s TikTok facing restrictions and investigations on multiple fronts. 

• The figures make CapCut the second overseas-focused product from ByteDance to achieve more than 100 million MAUs.

Details: CapCut was originally developed by Shenzhen Lianmeng Technology, a startup which ByteDance acquired in 2018 for $300 million. Launched as Jianying in China and designed for both mobile and PC, it offers a range of video editing functions, filters, audio and visual effects, and video templates and is compatible for use with TikTok.

• ByteDance released an overseas version of Jianying in April 2020, rebranding it to CapCut in December 2020.
• According to data from Chinese app analysis platforms Diandian and Data.ai in Baijing’s report, CapCut had more than 200 million MAUs in January. That month also saw CapCut enter the top 30 non-game apps list for iOS and Android devices in China. Its global revenue in January was $800,000, with the US market accounting for more than half of this figure. Although CapCut still has a revenue gap to Meitu’s editing tool BeautyPlus, which tops the list with over $2 million in monthly revenue, it has seen impressive growth, managing to achieve significant monetization in just four months. 
• CapCut has largely gained users through in-app promotions on Douyin, the Chinese version of TikTok, and by making its services available for free for two years. Since September 2022, CapCut started charging for premium features, which users can access by monthly or annual subscription packages.
• CapCut Pro’s charges revolve around cloud storage and premium features. The monthly cost of cloud storage is $0.99 for 10GB, $1.99 for 100GB, and $5.99 for 1,000 GB. The premium features are priced at $9.99 for a single month, $7.99 for a continuous monthly subscription, and $74.99 for a full year.
• In October 2022, as part of an update, CapCut launched a PC version, which is compatible with most mainstream social media platforms overseas, making it more attractive to both private customers and enterprise businesses.
• The app also runs a creator recruitment program whereby video creators making popular templates can earn up to $1,000. 

Context: TikTok reportedly set a goal of topping 1 billion daily active users worldwide by the end of 2022, testament to the app’s continued growth even as it faces a number of investigations and restrictions around the world. 

• On Feb. 27, Canada announced that it was banning the use of TikTok on government-owned devices, following similar moves in the US. The ban came just days after the EU announced similar restrictions for its staff. 
• In September, the UK Information Commissioner’s Office (ICO) warned that the ByteDance-owned video platform could face a $29 million fine for failing to protect child privacy.
• Earlier this year, ByteDance moved Douyin vice president Zhi Ying to TikTok to head up the latter’s products and content businesses, as the Beijing-based company looked to involve more of its successful executives in TikTok’s development.

Major Chinese consumer electronics brands have a strong presence at this year’s Mobile World Congress 2023 (MWC 2023) in Barcelona, as China reopens after three years of Covid-19 related restrictions.

The industry event brings together the world’s leading telecom operators and equipment manufacturers to showcase their latest products and technologies, including 6G, WiFi-7, satellite communication, and brand new consumer electronics devices. This year’s conference is expected to attract 80,000 attendees over the course of its four days, with more than 2,000 exhibitors from around the world, according to MWC.

Chinese gadget makers Honor, Huawei, Xiaomi, Oppo, and ZTE all showcased new products at the conference. Here’s a rundown of what they had to offer. 

1. HONOR

Honor launched its Magic Vs Foldable to the global market at the event. The foldable phone was first released in China three months ago. The Magic Vs Foldable is powered by a Snapdragon 8+ Gen 1 chip, Android 13 Magic UI 7.1 system, and a 5000mAh battery and comes with 66W fast charging and dual symmetrical speakers. It supports a 1920Hz PWM high-frequency eye protection mode and has a 6.45-inch 120Hz external screen with up to 1200nit brightness, as well as a 7.9-inch 90Hz 800nit interior screen with 2K HD resolution. Its cameras include a rear 54-megapixel main camera, a 50-megapixel ultra-wide angle lens, and 3x optical zoom lens. The phone was launched with a price tag of 1,599 euros (RMB 11,753) for 12GB+512GB storage, and comes in two color options: cyan and black.

2. HUAWEI

Huawei released the industry’s first commercial 50G PON (Passive Optical Network) at this year’s MWC, which can process signals without power supply. The nodes within the PON are composed of delicate and compact optical fiber components. The Chinese telecom giant says that the 50G PON can meet the increasing bandwidth requirements of offices, campuses, industrial sites, enterprises, and households.

Huawei also released their FTTR F30 (Fiber to the Room), which it claims is the industry’s first all-optical home networking product based on C-WAN architecture. C-WAN stands for Classified Wide Area Network, which features five major updates:

• A design upgrade with four colors and three installation modes.
• A speed improvement with hardware acceleration and 2000Mbps for the whole house.
• A coverage upgrade with multi-beam smart antenna coverage increased by about 30%.
• Improved roaming with unique SRCN (Seamless Roaming Coordinated Network) for senseless roaming.
• A concurrency upgrade with multi-terminal collaboration technology, which allows a maximum of 128 devices to be connected simultaneously.
  

3. Xiaomi

Xiaomi displayed its new wireless AR glasses at the conference. The glasses feature two Micro-OLED screens supporting 1,200 nits of brightness and full HD FHD visuals. Three forward-facing cameras map the surroundings directly in front of the wearer. The AR glasses are lightweight, made of carbon fiber and magnesium alloy, and run on Xiaomi’s self-developed silicon-oxygen anode battery, which weighs less than conventional lithium-ion. 

The glasses are powered by a Qualcomm Snapdragon XR2 Gen 1 chip and have no storage, so they must be connected to a device. The advertised latency is only 50ms. According to testers from the Chinese gadget review site ITHome, after 20 minutes of video watching, the latency is indeed very low with barely any lag and no degradation in picture quality.

In addition, Xiaomi also unveiled the BE7000, a high-performance WiFi 7 router. Equipped with Qualcomm Networking Pro 820, the quad-core A73 1.5GHz processor delivers 28,800 DMIPS of computing power, outperforming most flagship WiFi 6 routers on the market. It also comes with four 2.5G ports and one USB 3.0.

4. Oppo

Oppo brought its Find N2 series to MWC, as well as the self-developed Mariana MariSilicon Y chip, smart glasses Air Glass 2, home health detector OHealth H1, and its 45W liquid cooled radiator.

In addition, Oppo also showcased its first router product, the Wi-Fi 6 Router AX5400. The router uses Qualcomm’s 216 immersive home networking platform to support Wi-Fi 6 AX5400 standard and dual bands of 2.4GHz and 5GHz. Its high-gain antenna, combined with Oppo’s own anti-jamming algorithm and network directional acceleration technology, can boost Wi-Fi signal coverage and make connections more stable, the company says.

The Find N2 Flip series overseas version was initially launched in London on Feb. 28, at a starting price of 899 euros. But Oppo ensured it got plenty of attention at MWC as well by bringing in retired footballers Michael Owen and Luis Garcia to announce that the Oppo Find N2 Flip is now the official UEFA Champions League phone.

5. ZTE

ZTE launched the nubia Pad 3D tablet, in collaboration with Leia Inc., a company that develops naked-eye 3D technology. The Chinese firm says the tablet can support rich 3D application scenarios such as AI face tracking, real-time perspective matching, and real-time AI content processing, transforming 2D into 3D, thanks to Leia’s original 3D light field display technology and powerful AI computing engine.

It has a large 12.4-inch 2.5K screen and four panoramic speakers from Dolby. With a rich 3D content ecosystem, ZTE says that the nubia Pad 3D allows users to enjoy the industry’s first 3D enhanced video chat, private 3D cinema, and immersive 3D games. The tablet is powered by a Snapdragon 888 chip and a 9070mAh battery, and features a 33W quick-charge combination.

TechNode got hold of Vivo’s X90 Pro, the premium product of the Chinese phone maker’s new flagship series launched globally on February 3, and spent the last fortnight trying it out. Below are our thoughts on the phone.

The X90 Pro excels at visual capture. This is unsurprising given Vivo’s collaboration with optics master Zeiss and the phone’s 1-inch camera sensor. The X90 Pro introduces consumers to Vivo’s own optical image stabilization (OIS) technology, allowing for more intelligent and precise stabilization correction. It also boasts improved light sensitivity, aperture size, and natural color processing. The phone uses MediaTek Dimensity 9200 as the core processing chip, which we found gave it plenty of power for daily use plus enough left over to indulge in high-performance gaming.

The series was first released in China last November, starting with the X90 Pro. Now, you can buy the X90 in China and Southeast Asia, while the X90 Pro has reached stores in Southeast Asia and Europe. The new series ranges in price from $600 to $950, depending on model, storage, and where in Asia you’re shopping.

If you’re thinking of buying a new phone, it’s also worth comparing other offerings in a similar price range to Vivo’s X90 series. For example, Xiaomi’s 13 series will be launched globally on Feb. 26, costing an estimated $650 to $1,000.

Professional visuals with help from Zeiss 

For the series, Vivo partnered with German optical firm Zeiss to develop a large 1-inch IMX989 sensor. On the X90 Pro, the effort resulted in a stunning imaging system that excels in various scenarios and offers a wide aperture that opens up to f/1.75. 

Apart from Zeiss components, the X90 Pro is equipped with Vivo’s exclusively customized V2 Chip, which provides four major functional improvements on the imaging front. For example, the chip adopts a newly upgraded AI noise reduction algorithm, which boosts the main chip for further enhanced resolution in photos and videos captured at night. Some of our sample images were shot on a drizzling, foggy night in Shanghai, but the phone still managed to capture crisp, vivid images.

X90 Pro handled nighttime photography well in our tests. With a clean and depth-enhanced output, the camera displayed a similar level of professional, vivid imagery to photos taken with a large DSLR camera. In a richly lit environment, we can see the light and shadow effect between the buildings in great detail.

It is worth mentioning that when we shot a street lamp at night, the halo effect was minimized, and glare was almost absent. The phone also produces little noise in low-light settings. 

X90 Pro also uses ZEISS Natural Color 2.0 color profile, giving photos a realistic look. The two daylight photos above were taken in a natural tone setting. Many Android phones tend to render photos too bright, but the X90 Pro avoids this issue. 

A screen kinder for the eyes and a vegan leather back

X90 Pro features a 6.78-inch 3D curved screen with eye protection mode. With refinement of software and hardware, the screen decreases flicker and automatically adjusts brightness according to the ambient light and time of day, thereby reducing eye fatigue in dark environments. Besides, the new luminescent material reduces the level of harmful blue light.  

However, the X90 Pro only has a curved screen option, which may not be the first choice for users who favor a flat screen.

The X90 Pro features vegan leather which feels good in the hand and is dirt-proof. But this may not be popular with younger customers. Moreover, it’s a bit heavy to hold and somewhat lengthy to carry in the pocket. 

High gaming performance, cluttered UI

Vivo used a dual-chip setup for the new X90 series, including MediaTek Dimensity 9200 and vivo V2 Chip. With Dimensity 9200, X90 Pro, and X90 have ultrahigh AnTuTu Benchmark scores (a cell phone specs testing site) of 1.26 million and 1.22 million, representing a massive leap in performance.

We played Genshin Impact for 30 minutes, a mobile game known for its high demand on phone systems, setting it at the highest quality of 60 frames per second. The display was smooth when running pictures and fighting monsters. During playtime, the phone’s temperature was around 42 Celsius (107.6 Fahrenheit).

The phone’s user interface could use some improvement, as its default setting is a little crowded with all the recommended apps, games, and advertisements.

The X90 Pro offers a 120w wired fast charge and a 4,870 mAh large battery that takes only 29 mins to charge to 100%. For now, the series doesn’t support wireless charging.

Conclusion

In about two weeks’ use, the biggest advantage of the Vivo X90 Pro we found was its camera. It’s a good choice for photographers and can help hobbyists take better snaps. The vegan leather case design makes the phone unique. Its dual-chip setup assures smooth daily use and entertainment. As for long-term performance, it may need further observation when comparing MediaTek Dimensity 9200 with the Snapdragon 8 Gen 2. Below, TechNode summarized the main advantages and drawbacks we found with the Vivo X90 Pro: 

Pros

• Powerful camera system with Zeiss
• Dual chip technology MediaTek Dimensity 9200 and Vivo V2 chip
• Innovative design with the vegan leather
• High performance for gaming with eye protection screen
• 120W Dual-Cell FlashCharge

Cons

• No flat screen version, only rounded
• Inconvenient to carry in the pocket due to long screen
• Rear camera with protruding lens may cause dissenting views
• No support for wireless charging
• Too many built-in apps after startup

On Thursday, Chinese tech giant Tencent dismissed reports claiming that it was disbanding parts of its XR team, with the Shenzhen-based company saying that it is set to change the hardware development path of its XR business by making some personnel adjustments.

Why it matters: Tencent is the latest tech company to overhaul its metaverse-related activity, a move that comes less than a year after the company established its XR unit and follows its failed attempts to acquire AR hardware maker PICO and gaming phone maker Black Shark. XR hardware usually requires large amounts of capital over a long period of time, but as Tencent continues to cut costs and focus mainly on software, the company has been more cautious with its investments.

Details: Local media outlet 36Kr first reported on Thursday that Tencent was disbanding part of its XR team, which was established in June 2022. The report said that employees in the unit would be given two months to find new opportunities inside or outside of the company. However, Tencent later dismissed the report, saying it was simply making personnel adjustments within the unit.

• As of January 2023, there were still about 300 employees working on Tencent’s XR business, including tasks related to basic platform, content, Vision Labs, media technology, art and design, business decision, and spatial audio technology, according to 36Kr.
• Shen Li, previously the head of Tencent’s XR project, left the company in November 2022, with part of Tencent’s XR business suspended in January, 36Kr reported. 
• Shen, previously head of Tencent game studio NExT Studios, was one of the few people in the company’s XR unit with experience in VR hardware development, due to his work at French video game developer Ubisoft and at Epic Games before joining Tencent in 2013.
• Sources told 36Kr that Tencent’s XR project has few employees with hardware backgrounds and that the tech giant is hesitant about developing its hardware business.
• In early 2022, it was reported that Tencent intended to acquire gaming phone maker Black Shark, but the plan was abandoned a few months later, seemingly after the deal failed to get approval from the authorities.

Context: The global metaverse frenzy, kickstarted in 2021, caused Chinese tech firms to race to become front-line players in the sector, but lower-than-expected sales and user metrics are making them reconsider and adjust their investments.

• Tencent’s founder Pony Ma warned all employees at the end of 2022 that any business unit within the company could be cut if it isn’t self-sustaining.
• Pico, a Chinese VR headset maker acquired by ByteDance in 2021 and reportedly a one-time Tencent target, has also cut hundreds of jobs, with some teams reduced by as much as 30%, South China Morning Post reported on Thursday, citing two unnamed sources.
• ByteDance rolled out new VR headsets Pico 4 and 4 Pro last September, with Pico founder and president Henry Zhou saying he expected to eventually sell more than 1 million headsets. While the TikTok owner is yet to reveal sales or shipment figures, International Data Corporation (IDC) shows Pico’s market share reached about 15% in the third quarter of 2022; Meta’s market share fell to about 75% from 90% a year ago according to IDC.
• Microsoft ended its industrial metaverse project recently with the company reportedly shifting its focus to prioritize short-term projects instead. Redundancies at its metaverse team were part of the firm’s broader layoff of 10,000 employees announced in January, The Information reported on Feb. 9.

On Feb. 10, China’s National Press and Publication Administration (NPPA) released its approval list of domestic online games for February 2023 on its official website, with titles by Tencent, ByteDance, and NetEase among those given the green light.

Why it matters: The new list is the ninth batch of games approved in China since the NPPA resumed its issuing of licenses in April 2022 following an eight month pause. As with January, the number of new licenses this month exceeded 80, higher than any month in 2022 and a sign that China’s gaming regulators may be returning to a more consistent approach to approvals after months of uncertainty. 

Details: Some 87 new domestic games have been granted licenses by the NPPA, including 79 mobile games, seven PC titles, and one game for Nintendo Switch. 

• Tencent’s high-profile new game King Chess, a strategy battle mobile game that is part of the company’s attempts to build an Honor of Kings “universe,” was among those gaining approval. The official WeChat account for the game claimed on Feb. 10 that it is still in development and will undergo beta testing in the near future. 
• NetEase, another Chinese gaming giant that has struggled for new title approvals in the past 18 months, saw the mobile version of its massively multiplayer online role-playing game Fantasy Westward Journey make the list of February approvals.
• ByteDance has three new titles on the list: The Leader of the Battle from its publisher Ohayoo; Matrix: Out of Control by wholly-owned subsidiary Nuverse; and Hyper Instant Connection by its newly acquired company C4Games (all titles our translations). 

Context: China’s gaming industry has been sluggish over the past year due to tightening regulations on the industry and strict limits on young gamers.

• The total revenue of the video games market in China slumped 10.33% to RMB 265.9 billion in 2022, while game users declined slightly, down 0.33% year-on-year to 664 million, according to a report by the country’s semi-official games industry association.
• In August 2021, Chinese authorities restricted the weekly gaming hours for minors under the age of 18 to one hour a day on Fridays, weekends, and public holidays.
• China’s eight-month gaming license freeze was lifted in April 2022, but new approvals remained limited throughout the year. Just 513 game licenses, including 468 domestic games and 45 imported games, were issued over the course of 2022, 38% fewer than in 2021 and only a third of those approved in 2020, according to Caixin’s calculations. Tencent, one of the biggest gaming companies in the world, didn’t receive its first major approval of the year until November.

Despite not being officially available in China, the AI chatbot service ChatGPT has dominated headlines in the country. This week, days after search engine giant Baidu announced it will launch its own ChatGPT-like service in March, at least five other major Chinese tech firms revealed plans to tool up with the powerful AI technology. 

Starting with Alibaba, the e-commerce giant Alibaba said it is developing its own AI chatbot. NetEase’s online learning unit Youdao said it will launch a similar AI service focused on the education industry, and JD, another e-commerce major, boasted that its rich experience in AI means it can soon incorporate these technologies into its services. 

Developed by OpenAI, ChatGPT is an AI chatbot that can answer natural language questions with human-like responses. It is built on GPT-3, the third iteration of a language model trained on a large amount of data. 

The feverish popularity of ChatGPT has sent investors chasing related stocks on China’s stock market. The market is already experiencing a boost in so-called “ChatGPT concept stocks.” 

On Chinese social and search platforms, ChatGPT has also become the top search keyword. On Feb. 4, daily searches for “ChatGPT” on WeChat increased 515.7% to nearly 38 million, and the search volume kept growing rapidly in the following days,  seeing 2.5 times the number or 95 million searches only five days later. 

As advanced AI technology gains momentum to disrupt the status quo, Chinese tech companies are not the only ones racing to prove their ChatGPT-like abilities. Google introduced on Tuesday its AI chatbot Bard,  while ChatGPT’s main investor Microsoft launched a new version of its search engine Bing on Tuesday with ChatGPT built in. 

Baidu: Baidu said on Tuesday that it will launch its own AI chatbot tool called “ERNIE bot” or Wenxin Yiyan in Chinese. The bot will be built based on the company’s large language model ERNIE, which was launched in 2019. Some see Baidu’s service as the most likely one to come close to ChatGPT. 

NetEase: NetEase’s online education team Youdao said it has been working on applying AIGC (AI-generated content) technology to teaching scenarios such as AI oral English teaching and Chinese essay revision. The company expects to launch a relevant demo version of the product soon, which will mark the first landing of AIGC technology and a ChatGPT-like model in China’s online education scene.

iFlytek: Responding to investors’ questions, the company that specializes in speech recognition and natural language processing technologies said it has a solid accumulation of relevant AI technology. For example, in 2022, iFlytek won first place in the authoritative evaluation of several cognitive intelligence fields such as CommonsenseQA 2.0 and OpenBookQA. Meanwhile, iFlytek has developed a series of pre-training language models which include 40 general fields of cognitive intelligence.

Alibaba: The online retail major said on Wednesday that it’s conducting internal testing on a ChatGPT-like service, and the tool is likely to be used in combination with the group’s workplace communication and collaboration tool DingTalk.

JD: Beijing-based e-commerce platform JD said it sees ChatGPT as an “exciting and cutting-edge exploration,” adding it will incorporate the related methods and technology into its products, especially in customer service.