GANDHINAGAR, India: China has not given an encouraging response so far on reaching a common understanding with the G20 bloc on the issue of restructuring the debt of vulnerable countries, a source aware of the matter said on Sunday (Jul 16). G20 nations are also not keen on a one-size-fits-allContinue Reading
OTTAWA: Canada’s corporate ethics watchdog on Tuesday (Jul 11) launched separate investigations into Nike Canada and mining company Dynasty Gold to probe allegations that they used or benefited from forced Uyghur labour in their supply chains and operations in China. The investigations were launched after an initial assessment of complaints aboutContinue Reading
SEOUL Netflix co-CEO Ted Sarandos pledged on Thursday (Jun 22) that its bumper investment in South Korean content would not bypass young local talent, after calls by some lawmakers for the streaming giant to share more profits with creators. South Korea has created some of the Californian company’s biggest shows,Continue Reading
The US Commerce Department said it would speak directly with authorities in Beijing to clarify their actions.
“We also will engage with key allies and partners to ensure we are closely coordinated to address distortions of the memory chip market caused by China’s actions,” the department said.
China’s announcement on its Micron review helped boost shares in some local chipmaking-related firms on Monday, as state media reported that domestic players could benefit from the move.
Shares in companies including Gigadevice Semiconductors, Ingenic Semiconductor and Shenzhen Kaifa technology opened up between 3 per cent and 8 per cent.
Micron’s major rivals also saw their shares gain, with South Korea’s Samsung Electronics and SK Hynix rising 0.7 per cent and 2 per cent, respectively, versus a 0.9 per cent rise in the broader market.
“As China’s domestic memory suppliers are not competitive in technologies and capacity, China would need to resort to Samsung, SK Hynix, Kioxia, Western Digital or other foreign suppliers as the alternative to Micron,” Bernstein analysts said in a note.
It said Samsung and SK Hynix, which have chip factories in China, may gain more traction with Chinese customers. Both Samsung and SK Hynix had no comment.
However, Jefferies analysts expected limited impact on Micron as its major customers in China are consumer electronics firms such as smartphone and computer manufacturers, not infrastructure suppliers.
“Since Micron’s DRAM and NAND products are much less in servers, we believe most of its revenue in China is not generated from telcos and the government. Therefore, the ultimate impact on Micron will be quite limited,” they said in a note.
It generated US$5.2 billion of revenue from China including US$1.7 billion from Hong Kong last year, about 16 per cent of its total revenue, according to Jefferies.
Bernstein said a 2 per cent hit to sales was the most realistic estimate given Micron’s exposure to the enterprise and cloud server segment is relatively small.
Beijing has broadly defined industries it considers “critical” as ones such as public communication and transport but has not specified just what type of business these apply to.
China, the world’s biggest semiconductor buyer, has gradually reduced its reliance on foreign-made chips in a multi-year campaign to boost its self-sufficiency.
Its DRAM chip output accounted for 15 per cent of global supplies last year, up from 10 per cent in 2018, according to research firm TrendForce.
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China’s cyberspace regulator will conduct a cybersecurity review of products sold in the country by US memory chip manufacturer Micron, the regulator said on Friday (Mar 31). The move, which comes amid a spat over chip technology between Washington and Beijing, is aimed at protecting the security of the supplyContinue Reading
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SINGAPORE: Asian stocks tumbled on Thursday (Mar 16), and investors bought gold, bonds and the US dollar as fear of a banking crisis was reignited by fresh troubles at Credit Suisse, leaving markets on edge ahead of a European Central Bank (ECB) meeting later in the day. Japan’s Nikkei fellContinue Reading
However, the developments sent shivers through Asian markets as memories of the 2008 global financial crisis came flooding back. Among banks, Japan’s Sumitomo Mitsui Financial and Mitsubishi UFJ Financial shed more than 2 per cent apiece, while South Korea’s Hana Financial Group gave up more than 3 per cent andContinue Reading
SHANGHAI: China’s science and technology policies should aim to build the country’s strength and self-reliance, while companies take the lead in pushing innovation, Premier Li Keqiang said on Sunday (Mar 5). The country effectively countered external attempts to suppress and contain China’s development over the past five years by promotingContinue Reading