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Tag: Nikkei Asia

  • Dell Will Eliminate Chinese Chips From Its Products

    Dell Will Eliminate Chinese Chips From Its Products

    Dell will reportedly no longer use Chinese-made chips in its computers beginning in 2024, the latest challenge to China’s semiconductor industry.

    China has faced mounting pressure on its semiconductor industry as the US and allies have tried isolating China and restricting the country’s access to leading technology. Much of the action is driven by concerns over surveillance and espionage, with many Chinese companies having close ties to Beijing and it’s spying apparatus.

    According to Nikkei Asia, Dell plans to eliminate the use of chips made by Chinese firms. What’s more, the company also plans to phase out chips manufactured in China by non-Chinese companies.

    “The goal is quite aggressive. The determined shift involves not only those chips that are currently made by Chinese chipmakers but also at the facilities in China of non-Chinese suppliers,” one person with direct knowledge of the matter told Nikkei. “If suppliers don’t have responding measures, they could eventually lose orders from Dell.”

    HP has evidently has also expressed an interested in reducing or eliminating its dependence on China-based manufacturing facilities, but Dell’s move has certainly made waves in the industry.

    “There are thousands of components for notebook computers, and the ecosystem was so mature and complete in China for years,” a chip supplier exec that works with both Dell and HP told Nikkei. “Previously we knew Dell kind of had plans to diversify from China, but this time it is kind of radical. They don’t even want their chips to be made in China, citing concerns over the U.S. government’s policy. … It’s not just an evaluation, it’s not crying wolf. It’s a real and ongoing plan, and this trend looks irreversible.”

    China’s semiconductor was reportedly on the verge of collapse as a result of US sanctions. China is already planning a $143 billion package to buoy its chipmaking industry. If other companies follow Dell’s example, however, it could result in the wholesale devastation of what remains.

  • US Pressures Allies to Restrict Chip Exports to China

    US Pressures Allies to Restrict Chip Exports to China

    The US is ramping up pressure on China, asking its allies to restrict semiconductor exports to the country.

    The US has been trying to limit China’s access to advanced semiconductors, even using its recently passed CHIPS Act to force companies that accept funding not to provide China with their latest tech. According to Nikkei Asia, the US is trying to convince its allies to follow suit.

    “We were talking to our allies. No one was surprised when we did this, and they all know that we’re expecting them to cover likewise,” said Alan Estevez, undersecretary of commerce for industry and security.

    Japan is already considering similar measures, and is looking to see what action other countries may take. Should Japan move forward with restrictions, it will be a significant step given that it has an even larger share of the semiconductor market than the US. According to Nikkei, the US holds 12% and Japan holds 15%. Taiwan and South Korea each have roughly 20% of the market.

    Should Japan follow the US’ lead, experts believe it could result in much closer ties and trade between the two countries.

    “I expect of addressing a common concern about China, then that creates an opportunity for the Japan and the U.S. governments to reduce barriers on trade between Japan and the United States,” said Kevin Wolf, former assistant secretary of commerce for export administration under the Obama administration.

    “This will actually result in even better cooperation between Japan and the United States and fewer restrictions on joint development and production of advanced node items,” Wolf added.

  • Apple Testing MacBook and Apple Watch Production in Vietnam

    Apple Testing MacBook and Apple Watch Production in Vietnam

    Apple is looking to expand its manufacturing presence in Vietnam, testing MacBook and Apple Watch production.

    Apple has been working to diversify its manufacturing process and reduce its dependence on China. The pandemic’s lockdowns highlighted the inherent risks of Apple having its entire manufacturing process in a single country.

    According to Nikkei Asia, the company is looking to expand its manufacturing footprint in Vietnam, including the manufacture of its most complex device, the Apple Watch. Despite the complexity of the iPhone and iPad, the Apple Watch presents even greater challenges due to its smaller size.

    According to the report, Apple’s efforts include doing production test runs with both Luxshare Precision Industry and Foxconn. The transition is presenting some challenges, however, especially with the MacBook. China has been a hub of computer manufacturing for so long that virtually all of Apple’s MacBook supply chain is located in that country, and the supply chain is already optimized and cost-effective. As a result, moving production to Vietnam is taking longer than might be expected.

    Nonetheless, Apple’s focus on Vietnam is a big win for a country looking to establish itself as a center of tech manufacturing.

    “AirPods, Apple Watch, HomePod and more … Apple has big plans in Vietnam, apart from iPhone manufacturing,” one of the people with direct knowledge of the situation told Nikkei. “The components for MacBooks have become more modularized than in the past, which makes it easier to produce the laptops outside of China. But how to make it cost-competitive is another challenge.”

  • Apple Has Filed Nearly 250 Automotive Patents

    Apple Has Filed Nearly 250 Automotive Patents

    In its push for the Apple Car, Apple has applied for 248 patents related to automotive development.

    Apple’s bid to create the Apple Car, code-named Project Titan, is an open secret in the industry. Numerous automakers have been rumored to be in talks with the Cupertino company to build the Apple Car, although nothing has been confirmed. That hasn’t stopped Apple from pushing ahead, with Nikkei Asia reporting on the company’s trove of automotive patents.

    According to the report, Apple’s patents fall into a number of categories, including battery and heat management, connectivity, self-driving, interior comfort, and communication and navigation.

    It appears that Apple’s automotive-related patents began to increase in 2008, following the release of the iPhone. Many of the early patents focus on connectivity between phone and car. Later, however, the nature of the patents began to shift to ones more directly related to vehicle function, especially autonomous driving.

    No one knows when an Apple Car may finally debut, despite plenty of speculation on the topic. More recent reports indicate the Project Titan team has shifted its focus from a limited self-driving approach to developing a fully autonomous vehicle.

  • China Exported 500,000 Electric Vehicles in 2021, Leading the World

    China Exported 500,000 Electric Vehicles in 2021, Leading the World

    China is the leading electric vehicle (EV) exporter, exporting some 500,000 units in 2021 alone.

    Western countries have been eying China as the country has taken the lead in manufacturing, 5G, and other industries, and as its GDP continues to grow. There’s now another area where China is leading, namely in the EV export market.

    According to Nikkei Asia, China’s exports were bolstered by affordable models that made their way into Europe and Southeast Asia.

    Automakers around the world are racing to transition to EVs. It remains to be seen, however, if other countries will catch up and overtake China’s lead.

  • Teslas Poised to Get a Range Upgrade, Thanks to New Panasonic Batteries

    Teslas Poised to Get a Range Upgrade, Thanks to New Panasonic Batteries

    Teslas are poised to receive a significant range upgrade, as early as 2023, with new batteries from Panasonic.

    Panasonic has been working on new batteries for Tesla for some time, with the new batteries boasting five times more capacity, despite only being twice the size. In addition, Independent reports the new batteries will cost half as much as the current generation.

    Nikkei Asia is reporting that Panasonic is preparing to begin mass production, with the batteries expected to make their way into Teslas as early as 2023.

    With a 15% increase in range, this would take the Model S from roughly 404 miles to approximately 465 miles on a full charge, a significant, real-world increase for the average user.

  • TSMC Set to Raise Prices

    TSMC Set to Raise Prices

    TSMC is preparing to raise prices on its chip production, a move that will have a global impact on the price of electronics.

    TSMC is already the world’s most important semiconductor manufacturer. The company builds chips for Apple, Intel, Samsung, Qualcomm, Nvidia and others. As a result of its size and economy of scale, the company has been slower than its smaller rivals to raise prices, but that appears to be changing.

    According to Nikkei Asia, TSMC is preparing its biggest price hike in a decade, driven largely by the company’s commitment to increased investment over the coming years. TSMC has previously promised to spend $100 billion over the next three years, and is looking to pass some of that expense on to its clients.

    According to Nikkei, response to TSMC’s decision has been mixed.

    “We are glad that TSMC eventually adjusted prices so that it could fend off the practice of double-booking, when industry players race to secure enough chip production capacity during a shortage,” K.S. Pua, chairman and CEO of Phison Electronics, told Nikkei.

    “We are still short of supplies and want more chip capacity to support our growth for the second half of 2021,” Pua said.

    Others were less enthusiastic.

    “We are all in a great shock and all of our account managers need to speak to our customers to see if we can renegotiate some of the contracts,” another chip executive told Nikkei. “We haven’t seen TSMC introduce such a broad rate increase in over a decade.”

    Either way, it’s a safe bet that some of the most popular phones, tablets and computers may be at least a little more expensive over the next couple of years.

  • Google Working on Its Own M1 Rival for Chromebook

    Google Working on Its Own M1 Rival for Chromebook

    Google is reportedly following Apple’s lead, working on its own chip to power future Chromebooks.

    Apple rocked the computer industry when it announced it would transition away from Intel to its own M1 architecture. The M1 is based on the same Arm designs the company has used for years in the iPad and iPhone.

    Because of Apple’s Arm license, it has the freedom to heavily modify Arm’s designs to gain a competitive advantage. In its Mac line of computers, the M1 has been a smashing success, posting impressive benchmarks, while offering efficiency and battery life that Intel can’t match.

    Google is now looking to replicate Apple’s success by creating its own line of chips for its Chromebook laptops, according to Nikkei Asia, with the chips expected to be available in 2023.

    “Very few players have the skills or financial resources to design their own chips, so the typical players considering this path tend to be extremely large players, like the cloud service providers, or have very valuable applications for these specially designed chips,” Peter Hanbury, a partner at consulting firm Bain & Co., told Nikkei Asia.

    Google already has some experience in this field, with its Tensor chips. The company originally designed them for use in cloud servers, but recently announced the chips would also power the upcoming Pixel 6 line of smartphones.

  • MacBook Pro and iPad Pro Facing Delays Due to Chip Shortage

    MacBook Pro and iPad Pro Facing Delays Due to Chip Shortage

    Apple may be delaying production of the highly-anticipated MacBook Pro and iPad Pro amid a global semiconductor shortage.

    The coronavirus pandemic sparked a series of events that have led to a severe shortages of chips. At the outset, production was hurt as companies were forced to shut down their factories due to lockdown measures. As the pandemic drug on, however, stay-at-home orders and remote work helped drive a significant increase in demand for computers, gaming consoles and tablets.

    Companies in many industries have been experiencing the impact of the chip shortage. Some automakers have had to halt production due to the shortage, and some vehicles are shipping without the usual slate of chips, impacting their long-term fuel mileage.

    The shortage may now be impacting Apple’s upcoming products, according to Nikkei Asia, causing production delays for the upcoming MacBook Pro and iPad Air. Apple is expected to be on the verge of releasing a MacBook Pro 16”, as well as the biggest iPad Pro update ever. Unfortunately, it appears the MacBook production has been delayed at the point where the components are mounted on circuit boards. Meanwhile, the iPad production has hit delays as a result of shortages of displays and display components.

    As a result, Apple is pushing back some of the component orders from the first half of the year to the second half. If the report is true, we may see both devices previewed at WWDC in June, but not released until sometime between August and October.

    The news is even worse for the industry as a whole, given Apple’s legendary supply chain efficiency. If Apple is experiencing significant delays, smaller companies, and ones without as efficient a supply chain, will likely be impacted far worse.