Hello everyone! Lauly here, wishing you a brighter day amidst the gloomy weather in Taipei. It’s been a month since my last update on #techAsia, a period marked by personal health challenges and turbulent tech industry news.
Health Challenges and Lingering Impact of Holidays
Taiwan experienced a nine-day Lunar New Year holiday, typically a peaceful break. However, this time my family, including my toddler, suffered from gastroenteritis. We had to visit the emergency room twice. The country has been grappling with waves of flu and gastroenteritis, causing disruptions across the board.
Access to vaccines also posed a challenge. I spent a week searching for clinics with flu shots and COVID vaccines in stock, finding them depleted due to high demand. The government had to import supplies to meet the influx of patients.
Tech Turmoil: Tariffs and Trade Talks
The tech industry faced its share of challenges, including the emergence of China’s AI model DeepSeek and President Donald Trump’s threats of tariffs on imports, targeting China, Canada, and Mexico. Trump emphasized Taiwan, accusing it of taking “chip business away,” threatening a 25% or higher tariff on semiconductor imports.
Taiwan President Lai Ching-te responded with a live-streaming press conference, assuring Taiwanese citizens of the island’s relationship with the U.S. President Lai vowed to enhance Taiwan’s investment in the U.S., boost defense spending, and collaborate with Washington on AI and advanced semiconductor development.
Uncertainty in Supply Chain Planning
A recent conversation with an executive from an Apple and Nvidia supplier highlighted the current challenges. The executive expressed frustration over the unpredictable nature of tariffs and its impact on long-term planning. The uncertainty makes it difficult for companies to move production capacities efficiently.
Moreover, China has intensified scrutiny over exports of equipment and materials for American tech companies, hindering expansion efforts in Southeast Asia and India. This added another layer of complexity to supply chain diversification.
Big Shifts in Small Packages: ASE Technology
ASE Technology Holding, the world’s largest chip packaging and testing supplier, is setting up its largest overseas operation in Malaysia. CEO Tien Wu emphasized Malaysia’s stability and neutral positioning between the U.S. and China, making it an attractive location for chip investment.
ASE also plans to invest $200 million in next-generation chip packaging technology, using square substrates instead of traditional wafers, aimed at enhancing AI computing performance.
Apple’s Bets on India
Apple is implementing a “China plus one” strategy by doubling down on India as a manufacturing partner for its flagship iPhone. Tata Electronics is among the potential partners, aiming to produce 25% of iPhones in India by 2027. Challenges remain, including visa issues for Chinese employees, logistics for components, and addressing gender-based violence in the workforce.
Huawei’s Comeback Attempt in Southeast Asia
Huawei hosted a smartphone launch event in Kuala Lumpur, aiming to regain consumer electronics market share amidst U.S. sanctions. The launch event includes the tri-fold Mate XT phone. Southeast Asia and the Middle East are crucial markets for Huawei to maintain business, particularly in telecom equipment.
DeepSeek: Revolutionizing Chatbots
Tencent is testing DeepSeek, an AI model developed by Chinese internet giant DeepSeek, on its WeChat app. Tencent’s move is expected to reshape China’s chatbot market, with similar efforts from competitors like Baidu, Huawei, NetEase, BYD, and ByteDance’s Lark.
These integrations turn up the heat on Baidu and ByteDance’s Doubao, as users shift towards alternative search platforms.
Tech Latest Podcast
Don’t miss the Tech Latest podcast, featuring Katey Creel and Akito Tanaka, providing the latest tech trends and news. The latest episode delves into the recent collapse of Honda-Nissan merger talks and future prospects for these Japanese car manufacturers.
Listen on Apple Podcasts | Spotify | Amazon Music | Voicy | YouTube | YouTube Music
Suggested Reads
1. Tesla braces for delay to China licence as Trump trade tensions mount (FT)
2. TikTok reels in voters for far right ahead of German election (Nikkei Asia)
3. Nvidia partner Siam AI chases digital sovereignty with 100MW data center (Nikkei Asia)
4. Bain concedes to KKR in $4bn fight for Japan’s Fuji Soft (FT)
5. DeepSeek shows open-sourcing AI models boosts adoption: Baidu CEO (Nikkei Asia)
6. China tightens grip on tech, minerals and engineers as trade war spirals (FT)
7. Arm to launch its own chip in move that could upend semiconductor industry (FT)
8. SoftBank’s AI strategy becomes clearer but chip ambitions remain cloudy (Nikkei Asia)
9. Made-in-Japan drones to be supplied to Indo-Pacific partners (Nikkei Asia)
10. Shein IPO plans hit by Trump’s low-cost parcels crackdown (FT)
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