These are the most-read DIGITIMES Asia stories in the week of April 29 – May 3.
China's chip self-sufficiency dream a 21st Century Great Leap Forward? How much longer can it subsidize?
Can China successfully build a domestic semiconductor supply chain as it did with solar cells, EVs, and lithium batteries? How long can China subsidize its industries to establish a self-sufficient semiconductor supply chain when it is facing a slowdown in economic growth and a real-estate bubble burst,? Guo-chen Wang, an assistant research fellow at Taiwan's Chung-hua Institution for Economic Research, said semiconductors are highly complex and cannot have all the materials, equipment, components, and chips in the entire processes manufactured by a single country.
Intel faces a transition dilemma as foundry business unlikely to break even in 3 years
According to semiconductor supply chain sources, Intel Foundry would need at least three years before breaking even. The company still has to ask TSMC to manufacture its 3nm and 2nm chips to maintain profitability, operational efficiency, and cost control. Intel reported financial results for the first quarter of 2024 that disappointed shareholders due to widening Intel Foundry losses and lackluster performance of its PC and server product lines.
Qualcomm, MediaTek unfazed by Huawei rebound
Huawei has gained sales momentum in China's smartphone market since the second half of 2023, narrowing its gap to leading vendors despite US trade sanctions. The tech giant powers its handsets with in-house developed chips, which may undermine SoC shipments from Qualcomm and MediaTek if their Chinese customers lose market shares to Huawei. However, industry sources said these two top handset chip vendors are unlikely to be alarmed by Huawei's fast rebound.
Sharp reportedly plans to set up display fab in India
India-based news outlets reported that Sharp discussed with the country's Ministry of Electronics and IT about investing US$3 billion to US$5 billion to establish a display fab. The facility, which may be India's first display fab, will likely be eligible for the semiconductor incentive scheme. Sharp reportedly intends to manufacture displays in different sizes, including those for TVs, but not small-sized products for mobile devices.
Intel's AI ambitions stumble as Nvidia dominates
Analysts estimated that Nvidia's AI accelerator will generate US$40 billion of revenue for the company in 2024, which is 80 times what Intel was estimated to reach in the same segment, US$500 million. Intel's latest financial report reiterated that its foundry business revenue is projected to reach US$15 billion by 2030, with external customer contributions expected to play a significant role. Intel's forecasted foundry revenue still pales compared to TSMC's estimated US$178 billion and lags behind Samsung Foundry.
Catching up the smartphone craze in China: Huawei, Xiaomi, Oppo, and Vivo take actions
Huawei reported its best financial performance since the imposition of US sanctions in the first quarter of 2024, with revenue growing by 37% and net profit surging 564% year over year. Analysts said the strong resurgence of Huawei's smartphone business facilitated the company's financial performance. Competitors like Xiaomi, Vivo, and Oppo have all made achievements in the smartphone sector in 2024. Chinese brands' collective efforts are expected to drive the demand for handsets quarter by quarter in the latter half of this year.
US probe into China's RISC-V role casts shadow on Samsung's AI chip ambitions and foundry biz expansion
An ongoing investigation by the US Department of Commerce (DOC) into potential national security risks resulting from China's proactive involvement in RISC-V could hamper Samsung Electronics' RISC-V ecosystem development plans for next-generation AI chips. Media reported that the DOC is also assessing possible countermeasures while highlighting the need to avoid harming US companies engaged in RISC-V development. Qualcomm, Google, Intel, and Nvidia hold a Premier Membership status in the RISC-V International, while China-based Alibaba, Huawei, Tencent, and ZTE are also Premier Members.
