SEMICONDUCTORS
AI chip alliance formed
The output of artificial intelligence (AI) chips is expected to reach NT$500 billion (US$16.1 billion) in 2022, which would benefit Taiwan, as the nation enjoys advantages in semiconductor and information technology development and is a trusted partner for global tech brands, Minister of Economic Affairs Shen Jong-chin (沈榮津) said at the launch of the AI on Chip Taiwan Alliance in Taipei yesterday. Alliance chairman Nicky Lu (盧超群) said that he hopes Taiwan’s AI chips could establish a significant foothold in the world in four years, accounting for one-fourth of the global market. Lu is also president and CEO of Etron Technology Inc (鈺創科技), a local chip designer.
MANUFACTURING
Sentiment continues to fall
Sentiment regarding the local manufacturing sector in May signaled contraction for a seventh consecutive month amid lingering worries over trade frictions between the US and China, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said in a report yesterday. The composite index for the manufacturing sector fell 0.6 points from a month earlier to 9.12, the institute said. In May, out of the five factors in the composite index, only the subindex on costs moved higher, up 0.07 points from a month earlier, the institute said. The subindices on purchases of raw materials, demand, pricing and the general business climate moved lower by 0.32, 0.18, 0.12 and 0.04 points respectively, it said.
CHIPMAKERS
RichWave income up 15.7%
Radio frequency IC supplier RichWave Technology Corp (立積電子) yesterday reported net income of NT$22.8 million for May, an annual increase of 15.7 percent, or earnings per share of NT$0.38. In April and May, cumulative net income reached NT$33.8 million, compared with a net loss of NT$11.03 million in the first quarter, RichWave said. Rising demand from Chinese customers helped turn around the company’s business in the first two months of the second quarter, compared with the loss-making first quarter, it said.
E-COMMERCE
Activists raid Amazon offices
Environmental activists who have been joined by some “yellow vest” protesters have disrupted Amazon.com Inc sites in France, accusing the online company of destroying jobs and harming the planet. A few dozen demonstrators yesterday climbed a fence and forced their way into Amazon offices in northern Paris, images shared on social media showed. They spoke with employees and staged a sit-in at the security gates. Regional media also reported protests in the southern city of Toulouse and near the northern city of Lille. Organizers said that they oppose three new Amazon warehouses scheduled to open around France. Amazon did not immediately comment on the protests.
FOOTWEAR
Nike pulls Air Max 1 USA
Nike Inc pulled Fourth of July sneakers from stores because they had a “Betsy Ross flag” that some people view as offensive, pulling the sports apparel maker once again into the US’ culture wars. Former NFL quarterback Colin Kaepernick was among the people who asked Nike to remove the shoe, the Wall Street Journal reported. The Air Max 1 USA was intended as a celebration of the US’ Independence Day, with a flag that featured 13 white stars in a circle on the heel. The design was created during the American Revolution and is often called the Betsy Ross flag.
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to