US investigates whether TSMC has really cut ties with Huawei – Asia Times

By:
On:
In: Asia

Taiwan Semiconductor Manufacturing Company ( TSMC) reportedly broke US export regulations by producing chips for Huawei Technologies, which has been subject to sanctions from the US Commerce Department. &nbsp,

The Commerce Department contacted TSMC on Friday to inquire whether it was providing Huawei with smartphone and artificial intelligence ( AI ) chips in a direct or indirect manner, The Information reported. &nbsp,

A key emphasis of the research is the Kirin 9000s found inside Huawei’s Mate60 phones, which were launched in late August 2023 during US Commerce Secretary Gina Raimondo’s China vacation. The issue is whether they were shipped after the 2020 deadline for Huawei to stop supplies.

The research will also assess whether TSMC is making Huawei’s Ascend computers.

TSMC, the country’s biggest device deal company, said in a speech that it is a “law abiding business”, which is committed to complying with laws and regulations, as well as US export controls.

The company stated that “if we have any reason to believe there are possible problems,” that we will take immediate action to assure compliance, including conducting studies and actively communicating with relevant events, including users and regulatory officials, as needed.

The statement about the investigation appeared to have intact TSMC stock, which was intact. They increased 4.83 % to TW$ 1, 085 on Friday after the company announced forecast-beating third-quarter profits. The shares have gained 83 % so far this year. &nbsp,

A Chinese tech journalist wrote an article titled” After TSMC and Huawei split upward, Huawei may achieve personal sufficiency” on October 9th. The Information’s report followed.

” A significant topic has just arisen in the technology sector. TSMC, a well known’ great brother’ in the chip-making sector, has split up with Chinese tech giant Huawei and will no more make cards for Huawei”, the poet says.

” The duo used to be very near friends,” they said. He claims that TSMC has now made the decision to leave Huawei alone and increase its purchase in the US. ” It’s possible that TSMC made some of the 5G and Ascend chips that Huawei is still using today.” When Huawei runs out of these cards, it will have to make them regionally”.

He claims that because China is prohibited from importing deep ultraviolet ( UV) or the conventional deep ultraviolet ( DUV) lithography machines, it is difficult for Chinese chipmakers to catch up with TSMC. &nbsp,

” Actually Huawei and TSMC had had a really close collaboration. But issues have become complicated after the US intervened,” a Jiangsu-based author using the surname” Summer” says in an article published on October 15. &nbsp,

He claims that TSMC had been begging the US to allow it to continue its partnership with Huawei for a while. Eventually, TSMC made the decision to end its assistance with Huawei by choosing to mate with Amkor Technology. ” &nbsp,

He continues, noting that the split-up between TSMC and Huawei may not be a bad thing because both companies may look for new opportunities while Foreign chip designers will receive more agreements from Huawei. &nbsp,

TSMC and Amkor

A non-binding primary document of words was signed by the US Commerce Department and Amkor Technology on July 26. It states that the government will grant Amkor up to US$ 400 million in proposed immediate cash under the CHIPS and Science Act. &nbsp,

The funding will support Amkor’s investment of approximately US$ 2 billion and create 2, 000 jobs in a project in Peoria, Arizona, the Biden administration said in a statement.

According to the statement,” Companies like TSMC, Apple, and GlobalFoundries will be able to package and test their essential chips domestically, enabling the US to have a full end-to-end cycle of the chip manufacturing process.” &nbsp,

Advanced packaging is widely believed to be the next frontier of innovation in the industry because it can drive increased power and performance as chip design approaches the technical limits of Moore’s Law, which suggests that the number of transistors on a semiconductor doubles every two years. &nbsp,

On October 4, TSMC and Amkor signed a memorandum of understanding to work together to provide Arizona with advanced packaging and testing capabilities. &nbsp,

The close collaboration and proximity of TSMC’s front-end fab and Amkor’s back-end facility will accelerate overall product cycle times, the two companies said in a joint press release.

According to industry analysts, the new partnership between TSMC and Amkor is a win-win situation because they can work together to win contracts, particularly in the field of AI chip manufacturing.

In Arizona, TSMC is constructing two advanced fabs. In the first half of the year, the first one will start making 4 nanometer chips. In 2028, the second will begin producing 2 and 3 nm chips. In order to produce 2nm chips in 2030, TSMC has also announced a plan to establish a third fab in Arizona. &nbsp,

After Taiwan-based ASE Technology Holding Co Ltd., Amkor is the second-largest outsourced semiconductor assembly and test company by revenue in the world. Its major clients include Apple and automakers like Siemens. &nbsp,

Kirin 9000 chips

Huawei and its 70 affiliates were added to the US Commerce Department’s so-called Entity List in May 2019 on national security grounds. On September 15, 2020, TSMC stopped producing Kirin chips, resulting in a countdown for HiSilicon’s chip inventory. &nbsp,

In its most recent shipment to mainland China, some Chinese media reported that TSMC could have shipped about 30 million units of the 5nm Kirin 9000 chips. &nbsp,

Due to having a 0 % share in the global smartphone chipset market in the third quarter of 2022, HiSilicon should have exhausted all of its stock. &nbsp,

But last December, Huawei’s newly-launched Qingyun L540 laptop used a Kirin chip called 9006C, which was later found to be a modified Kirin 9000 chip made by TSMC in 2020. Is it still unknown whether HiSilicon has Kirin 9000 chips in stock. &nbsp,

The Commerce Department’s latest probe is expected to check whether any of the Kirin 9000 chips in the so-called” last shipment “were delivered after the deadline of September 15, 2020.

Read: Huawei struggling to make enough chips for Mate70

Follow Jeff Pao on X: &nbsp, @jeffpao3

Continue Reading

Why Apple’s not decoupling from China – Asia Times

By:
On:
In: Asia, Technology

Apple’s latest move to compete with a resurgent Huawei and strengthen its position in the world’s largest smartphone market has resulted in the opening of a new research and development ( R&amp, D) center at Apple’s Shenzhen facility. It is Apple’s five product R&amp, D hospital in China.

The action demonstrates that Apple continues to put investor interests before the interests of anti-China US officials. It also undercuts rumors that Apple is leaving China for India, when in reality, it is just adding India to its long list of important areas and factories while even strengthening its presence in China.

Apple’s third-largest local market, after the Americas and Europe, is in Greater China, where sales have just decreased as a result of orders to outlaw iPhone use in some government and state office locations. In the nine months to June 29, 2024, Greater China accounted for 17.5 % of Apple’s entire profits, down from 19.6 % a year earlier.

Apple’s Greater China sales by volume were down 9.7 % year-on-year, while its total sales increased by 0.8 % over the same nine-month period. In the third quarter alone, Apple reported a 6.5 % year-on-year decline in sales by volume in Greater China, compared with a 4.9 % increase in total sales.

The decline came as a result of state directives mandating that employees of the government and the state-owned enterprise ( SOE ) stop bringing iPhones and other foreign smartphones to the office. As of December last season, the technical war-tinged proclamation extended across at least eight regions, including rich coastal regions, Bloomberg reported. &nbsp,

That’s evidently given local manufacturers a dynamic increase. In August, according to Chinese consulting company CINNO Research, the value of Huawei’s mobile smartphone sales in China exceeded those of Apple for the first time in 46 weeks. In product words, Huawei overtook Apple in the first fourth of 2024, according to statistics compiled by Singapore-based business research firm Canalys.

According to the report from the Huawei Central Newsroom, Apple and Huawei are “locked ears” in the race to win the top spot in the Foreign Double 11 shopping festival, which runs through November 11.

All of the leading 10 high-end phones sold on China’s JD.com browsing site are from either Apple or Huawei. The checklist includes the phone 15 Pro Max, phone 16 Pro Max, phone 16 Pro, Huawei Mate 60 Pro, Huawei Pura 70 Pro, phone 15, phone 16, Huawei Pura 70 Pro , Huawei Mate 60 Pro and Huawei Mate X5.

Huawei made a splash on September 10 with the release of its Mate XT Ultimate Design dual-hinge, three-panel sliding handset. Priced at US$ 2, 800 or more depending on storage capacity, it preempted the release of Apple’s iPhone 16 in China with its 10.2-inch highest screen size and another top-of-the-line capabilities.

Apple announced on October 10 that its fresh “advanced software R&amp, D center” would be located in the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone in response to this competitive environment.

The facility will be Apple’s key applied research lab in the Guangdong-Hong Kong-Macao Greater Bay Area, succeeding an older service established in 2016. Apple maintains another R&amp, D locations in Beijing, Shanghai and Suzhou.

According to The Shenzhen Daily,” The test is intended to contain the business operations of Apple Greater China, including the R&amp, D operations originally planned for the Asia Pacific, which will further strengthen Shenzhen’s key role in Apple’s smart manufacturing and supply chain.”

Back in 2016, Apple CEO Tim Cook said,” We realized the skill level of Shenzhen’s factories was gradually leading other places in the world” .&nbsp, This is even more the case now.

Over 1, 000 employees at the center will work on technology advancement, smart developing and testing for iPhones, iPads and other products. Additionally, they may work with local manufacturers to improve supply chains.

China’s Communist Party-run Global Times quoted Li Yong, a senior research fellow at the China Association of International Trade, saying,” This is a reasonable decision made by Apple amid]a ] complex global political and economic environment”.

For Apple to maintain its position in the lucrative Chinese market, it should be reasonable and likely needed. According to Global Times, Apple has increased its operations in China despite the US government’s continued efforts to “decouple” relations with China with more severe sanctions, false accusations, and repeated provocations against Chinese businesses,” according to Global Times.

According to the content, Apple’s chief operating officer Jeff Williams traveled to China in July, shortly after the Communist Party’s next ministerial conference approved a resolution calling “opening up” to the outside world a “defining characteristic of Chinese development.”

Williams claimed that more than 70 Apple suppliers are headquartered in Guangdong province only,” which determines the particular impact of the Guangdong place centered on Shenzhen to Apple’s offer network.” ( Guangdong was one of the coastal provinces that mandated government and state firm employees to stop bringing iPhones to work. )

Of 187 suppliers that accounted for 98 % of Apple’s direct spending on materials, manufacturing and assembly last fiscal year, 157 had operations in China and 56 were Chinese-owned. In comparison, only 14 were Indian-owned. Despite recent rapid growth, India still accounts for less than 5 % of Apple’s total revenues.

Apple and its CEO, Cook, have received a lot of negative feedback from US politicians who oppose the company’s business practices in China.

Senators Ted Cruz of Texas, Ron Wyden of Oregon, Tom Cotton of Arkansas, and Marco Rubio of Florida, as well as representatives Alexandria Ocasio-Cortez of New York, Mike Gallagher of Wisconsin, and Tom Malinowski of New Jersey, wrote to Cook in October to “exprim our strong concern about Apple’s censorship of apps, including a prominent app used by protesters in Hong Kong, at the behest of the Chinese government,” respectively.

Senator Josh Hawley of Missouri wrote in November 2022,” I want to know why Apple continues to support and abet the totalitarian regime in China. [Apple’s ]” activities in China pose significant material risks to your stakeholders.

Congressman John Moolenaar of Michigan, the head of the Chinese Communist Party’s House Select Committee, wrote to Defense Secretary Lloyd Austin in late September 2024 about the alleged threat posed by Chinese flat panel displays. Earlier in the month, Apple had begun sourcing OLED displays from China’s BOE Technology, a company that Moolenaar identifies as linked to the Chinese military.

However, reports in October suggested that the Biden administration is discussing renewing the US-China Science and Technology Agreement, which expired in August. The US side does not want to completely decouple from China, but rather wants to modify the agreement to better protect US intellectual property.

On the other hand, Moolenaar contends that” We absolutely should not encourage further scientific or technological collaboration with the Chinese Communist Party.” Before the US presidential and congressional elections in the coming months, how Moolenaar and other politicians ‘ anti-China sentiments might impact Apple is likely to be known.

Follow this writer on&nbsp, X: @ScottFo83517667

Continue Reading

China vows to catch up with Elon Musk’s Starlink – Asia Times

By:
On:
In: Asia

Chinese state media have launched a campaign to promote China’s accomplishments in developing its own Starlink-like technique following tech giant Elon Musk’s SpaceX’s success in October when its returning Super Heavy capsule was captured by a gigantic piece of mechanised” sticks.”

In China, at least three companies are trying to catch up with SpaceX’s Starlink, which aims to send 42, 000 satellites to low Earth orbit ( LEO ) in the coming decades. So much 6, 426 Starlink satellites have been sent. &nbsp,

One of the group is China Satellite Network Group Co, a Hebei-based state-owned-enterprise. It operates the GW program, which refers to GuoWang or actually means” National Networks” in Taiwanese, and aims to build a Chinese version of Starlink with about 13, 000 satellites.

Shanghai Weixiao Satellite Engineering Center, a division of the Chinese Academy of Science, is another one. Its G60 or Qianfan strategy aims to deliver 12, 000 observatories to LEO by 2027.

The second one is Shanghai Lanjian Hongqing Technology Co, in which the Beijing-based LandSpace has a 48 % interest. Zhang Changwu, a former national at the Ministry of Land and Resources, founded the privately held company LandSpace. Lanjian Hongqing’s Honghu-3 plan may send 10, 000 observatories to LEO.

” After seeing SpaceX’s successful launch on October 13, many foreign media have mocked China”, Lei Xiangping, a commentator with the state-owned China Central TV (CCTV ), says in an opinion piece published on Thursday. ” Fortunately, China has already fought back in the following three days” .&nbsp,

Lei claims that China has stretched its muscle by launching the Gaofen-12 05 distant sensing dish on Wednesday via a Long March-4C aircraft jet in Gansu and sending 18 conversation satellites for the Qianfan system via a Long March-6A jet in Shanxi on Tuesday. &nbsp,

By 2030, he claims, Taiwanese companies will send more than 15, 000 satellites to LEO. &nbsp,

There will be no more room and speed in the orbit for other places when Starlink’s plan for sending 42, 000 observatories to LEO is finished, he claims. China may accelerate its spacecraft start plans in order to compete for resources in LEO.

He even claims that Beijing needs to move quickly with its Qianfan system, which will allow the People’s Liberation Army to conduct high-resolution military surveillance missions all over the world. &nbsp,

” In this emerging field, whoever has the most advanced technologies and controls the sources may like a proper edge”, he says. &nbsp,

The latest two powerful satellite launches, according to The Global Times, demonstrated China’s growing expertise in space technology and exceedingly strong capabilities for space applications on Wednesday.

” This success reflects the dedication of China’s aircraft workers in upholding the soul of the’ Two explosives, one dish,'” the newspaper said. &nbsp,

China’s” Two weapons, one dish” system refers to the barrages of the country’s first nuclear weapon in 164 and second gas bomb in 1967 and the release of its first satellite in 1970. &nbsp,

Who mocked China?

Gao Tianwei, a technology columnist with China’s Guancha.cn, on Monday commented on the SpaceX booster’s successful landing.

In its most recent flight launch, SpaceX significantly improved. Should China follow suit and speed up its development”? Gao says.

He claims that China should not be in a rush to launch its Long March 9, a super heavy carrier rocket that is similar to SpaceX’s Super Heavy booster but has a nine-meter diameter and parallel engines. He claims that this is because the nation has already become the No. 1 nation in the world. 2 in terms of aerospace technology.

He also says China would prefer to invest in projects that have been proven feasible, for example, reusable medium-lift launch vehicles like SpaceX’s Falcon 9. &nbsp,

Gao only reiterates Beijing’s official position that Long March 9 will not be accessible until 2033, so there is no such thing as a problem with his remarks. &nbsp,

But when the China Times, a Taiwanese newspaper, on Monday cited Gao’s comments, it used a negative headline and said that China will have to wait for a long time before it can achieve SpaceX’s breakthroughs. &nbsp,

Lianhe Zaobao, a Singaporean newspaper, on Tuesday published a commentary with the title” Did Musk’s Starship outshine China’s rockets”? According to the statement, some Chinese media members worry that China wo n’t be able to compete with the US in space technology. &nbsp,

On Wednesday and Thursday, Chinese state media responded to all these media reports. &nbsp,

Mo Jiangli, a Shandong-based writer, says it’s unfair that foreign media only praised Musk’s Starship but not LandSpace’s Zhuque-3 reusable test rocket, which successfully completed a 10 kilometer vertical takeoff on September 11. &nbsp,

Separately, Jiangsu Deep Blue Aerospace Technology, another private firm like LandSpace, is developing a reusable launch vehicle called Nebula-1. During its first test on September 22, the vehicle had a difficult landing.

Read more: China and SpaceX have various plans for Mars.

Follow Jeff Pao on Twitter at&nbsp, @jeffpao3

Continue Reading

Now’s not the time to short the yuan – Asia Times

By:
On:
In: Asia

As the” Trump business” returns to create fear of political upheaval great once, global hedge funds are racing to little China’s yuan money.

They are betting that Trump’s designed combination of tax and business measures will boost local rise if elected, and that China may seek to become more dynamic.

However, betting on a weaker yuan could prove to be a lot of a mistake if the last several decades of the Xi Jinping age are any link.

Let’s begin with the Trump estimate. Obviously, the November 5 US vote is a true toss-up. One time, polls suggest Kamala Harris ‘ Democrats may emerge. The second, hp emerges to telephone a Trump 2.0 White House is coming.

This year, the speed seems to be on Trump’s part. In the US$ 300 billion dollar options business, hedge funds are placing higher stakes on a weaker renminbi. Yuan uncertainty is currently at its highest level since the middle of 2022.

However, it seems as though Trump’s 2017-2021 phrase will be forgotten due to fears that he might prefer a stronger dollar. Trump was unwaveringly in favor of a lower US transfer rate to benefit American companies and stifle China.

It’s also worth remembering Trump’s abuse on the US Federal Reserve. Trump was angry that his chosen Fed chair, Jerome Powell, continued father Janet Yellen’s price hikes. He then browbeat Powell into cutting rates, adding stimulus in 2019 that the economy did n’t need.

On top of the Fed’s broken trust, the US federal debt soared under Trump and present President Joe Biden, then topping$ 35 trillion.

Include social fragmentation to the picture until January 20, 2025, when the next management will take office. Even if Trump loses, no significant journalist thinks he will go away quietly.

One of the causes of Fitch Ratings ‘ cancellation of its AAA standing on US bill, joining Standard & Poor’s, was the fallout from the uprising on January 6, 2021, which Trump fomented. The next rating agency to assess America AAA is now Moody’s Investors Service, the source of the current query.

The Beijing component of this riddle is more crucial, though. There are at least four causes why Beijing is unlikely to help the yuan to fall very little.

One, a falling yuan may make payment on onshore bill more difficult for very obliged organizations like home builders. That would boost proxy risks in Asia’s biggest market. The last thing Xi wants is to see# ChinaEvergrande trending once more in the internet.

Two, the economic easing needed to sustain the yuan’s declines — especially with the Fed cutting rates, also— could harm Xi’s deleveraging efforts. Xi’s interior group has made significant strides over the past few years in eradicating financial abuse.

This explains why Xi and Premier Li Qiang have been reluctant to permit the People’s Bank of China ( PBOC ) to cut rates more forcefully, despite China Inc.’s reputation for deflationary pressures.

Three, increasing the yuan’s global usage is probably Xi’s biggest economic transformation achievement since 2012. In&nbsp, 2016, China&nbsp, won a place for the yuan in the International Monetary Fund’s” special&nbsp, drawing&nbsp, right” box, joining the dollar, yen, euro and pound.

Since next, the stock’s apply in business and banking has soared. Increased easing then may dent trust in the yuan, slowing its headway toward reserve-currency position.

Fourth, it may produce China a more contentious and important issue during a distinctly divisive US election. Trump’s Republicans and Democrats who are close to Harris concur that they must be strong with Beijing.

Beijing’s claims that it is manipulating the renminbi lower could stoke bipartisan support in Washington. especially in light of the Trump administration’s plan to impose 60 % taxes on all products made in China.

” As well as levies, the badge of ‘ money manipulator’ may be a second red flag for an Eastern economy”, said Robert Carnell, Asia-region head of research at ING Bank.

A weaker renminbi would be used by Xi to sign a sense of anxiety and anguish. Certainly the stories Xi wants international investors to be thinking about as the year 2025 draws near.

Otherwise, Xi and Li have been ratcheting up the signal without triggering sounds of 2015, 2008 and additional past incidents of large pro-growth “bazooka” storms.

Earlier this month, Beijing cut borrowing costs, slashed businesses ‘ supply need numbers, reduced mortgage costs and unveiled market-support resources to put a floor under share costs. Bolder fiscal stimulus steps are being mulled, too.

On Thursday ( October 17 ), Team Xi raised the loan quota for unfinished housing projects to 4 trillion yuan ($ 562 billion ), nearly double the previous amount.

The bump was less than markets wanted, as evidenced by Chinese stocks falling into” correction” territory this week. The&nbsp, CSI 300 Index&nbsp, ended Tuesday down 1.1 %, bringing its declines since an October 8 high to roughly 11 %.

The bigger issue, of course, is repairing the balance sheets of giant property developers.

” They’re still trying to talk the talk, with more noise about stabilizing the property market”, said Stephen Innes, an economist at SPI Asset Management.”

As Thursday’s housing moves were” rolled on, it was clear: traders were not thrilled,” Innes said”. Let’s be honest, though – China’s property mess is n’t something that can be patched up with a few speeches and half-baked measures.”

According to Morgan Stanley economist Robin Xing, “resolving the debt issue is a crucial step in stopping a key deflationary downward spiral,” while adding that direct demand stimulus is equally crucial.

Team Xi has made several commitments over the past few years to develop a method to remove toxic assets from property developers ‘ balance sheets.

Beijing has in fact demonstrated what is required to turn things around: a bold plan to boost the finances of high-quality developers, encouraging mergers and acquisitions, promoting property investment so that more people no longer consider real estate as their only option, and establishing social safety nets to encourage households to spend more and save less.

Indeed, over the past few decades, there have been numerous crises from which to draw lessons. They include Japan’s efforts to remove toxic loans from banks ‘ balance sheets in the early 2000s, as well as the US’s use of the Troubled Asset Relief Program, or TARP, to deal with troubled assets after 2008.

More fundamentally, Xi’s reform team must step up efforts to recalibrate growth engines away from exports toward innovation and high-niche industries.

Investors should be reassured that the brutal crackdowns on tech companies have ended in 2020. China also needs to shed its adversity toward the fundamental level of economic transparency that the world’s funds demand.

But as Xi and Li understand, a weaker yuan wo n’t bring about any of these big-picture reforms. It might give China a little more time to achieve its 5 % growth goal this year, but at a cost that Chinese leaders appear unwilling to pay.

There are myriad other reasons why, in the US, one reason is to believe that the dollar’s outlook will be more red ink than black.

One of the issues with the US national debt, which is now twice the size of China’s annual gross domestic product, is that it is two times that large. However, there are a good chance that Trump will backtrack on some of the financial planning moves he made during the first, only to have them halted by economic advisers in a second term.

One was Trump considering canceling large sums of the US owed to Beijing in order to punish Xi’s economy in the midst of trade negotiations. These considerations were hardly ever out of the blue.

In May 2016, six months before he was first elected, &nbsp, Trump, a serial bankruptcy offender as a businessman, floated reneging on US debt in a&nbsp, CNBC&nbsp, interview.

” I would borrow, knowing that if the economy crashed, you could make a deal,” &nbsp, Trump&nbsp, said”. And if the economy was good, it was good. So therefore, you ca n’t lose.”

Moody’s Analytics economist Mark Zandi spoke for many when he called the idea of reneging on US debt” complete craziness” that” would be financial Armageddon.”

Trump&nbsp, 1.0 considered a dollar-to-yuan devaluation of the kind that Argentina or Vietnam might employ. In April, for example, Politico&nbsp, reported that Trump 2.0’s inner circle is” actively debating” an Argentina-like pivot at the behest of advisors like&nbsp, Robert&nbsp, Lighthizer, Trump’s former international trade representative.

Yet, instead of” America first,” such a detour might do more to advantage China in the longer run. Buenos Aires would be operating a Group of Seven economy if devaluation were a method for prosperity. Turkey and Zimbabwe would be booming. As Asia’s largest economy, Indonesia would be giving China a run for its money.

To China’s advantage, the US trying this gambit would increase inflationary pressures and expose the dollar’s status as a reserve currency.

Investors generally believe that the policies they are proposing to promote US reindustrialization, such as steep tariffs on goods imported, will tend to result in dollar strength in comparison to other currencies, according to a note from Global Analysts.

But, they added, the” likely consequences of this disconnect include a potential conflict between the White House and Fed, and a diplomatic drive to&nbsp, weaken the US dollar, possibly involving a new version of the 1985 &nbsp, Plaza&nbsp, Accord.”

Trying such a gambit in 2024 would be extraordinarily destabilizing. The odds are very low that Xi would choose to pursue it. China recalls how Japan’s acceptance of a stronger yen ravaged its economy for decades to come, aside from the Communist Party’s aversion to being pushed around.

Even so, hedge funds that are betting on a weaker yuan in the months ahead might be ignoring the bigger picture of the Xi era.

Follow William Pesek on X at @WilliamPesek

Continue Reading

Borong to invest US.4mil to boost Sarawak’s MSMEs and digital economy

By:
On:
In: Technology
  • Strengthen footprint directly, grow globally via cross-border digitisation
  • Target 60k MSMEs that offer online tools to move their businesses from offline to online

SDEC CEO Ir. Ts. Sudarnoto Osman (left) with Aizat Rahim, co-founder of Borong at the signing.

At today’s 7th International Digital Economy Conference Sarawak, five other companies, including Sarawak Digital Economy Corporation ( SDEC ), and leading startup Macro Tech Ventures Sdn Bhd, which operates in the market under the name” Borong brand,” and a collaboration between five other companies. Many of the state’s MSMEs are now under the radar.

In a MOU signing Borong committed to invest US$ 17.4 million ( RM75 million ) via Digital Niaga, a credit financing scheme in collaboration with development banks BSN, Bank Rakyat, and Agrobank, to enable digitalization across Sarawak’s MSMEs, boosting local businesses growth.

The relationship between Borong and SDEC, according to Aizat Rahim, co-founder of Borong, is a good step in the direction of innovation and developing businesses in the modern time to improve Sarawak’s economic growth. ” We are committed to invest in Sarawak’s MSMEs to improve their footprint directly and grow globally via cross-border automation”.

SDEC CEO Ir. Ts. Sudarnoto Osman said,” The MOUs ( with Borong and the other five companies ) represent a critical step in Sarawak’s journey toward becoming a digital economy powerhouse. These partnerships are about more than just technology—it’s about empowering the group through modernization. By integrating digital options, we are equipping our regional businesses with the knowledge, support, and funding to thrive”.

Borong aims to transform over 60 000 Enterprises by providing online tools and resources that enable them to move their companies from offline to online. With an estimated average monthly purchase of US$ 92.8 ( RM400 ) each, with Borong providing RM1, 200 of credit financing for each MSME for three months, the RM75 million financing, “is just the beginning for us to catalyse the growth of these MSMEs in Sarawak”, said Lennise Ng, co-founder and CEO of Borong.

]RM1 = US$ 0.232 ]

” We are very satisfied with the outcomes when we have a stronger foundation to entice other colleagues to make more investments in MSMEs, not just in Sarawak but throughout Malaysia,” she continues. &nbsp,

Along with SDEC, Borong will carry knowledge, online training, and onboarding activities. These small businesses are being trained to use Borong’s retail and industry platforms to expand their global reach and profitability. Borong earns a small 2.5 % split from deals on its platform.

When incorporated into the Borong ecosystem, these Enterprises will have easy access to affordable financing that can be as low as 2.5 % per year. Borong and its banking partners have so far allocated over RM300 million in SME financing that is willing to be used and deployed.

Continue Reading

PM courts China on 6G launch base

By:
On:
In: South-East Asia

Envoy speaks business, 50th season of relations

PUBLISHED: 17 Oct 2024 at 05: 24

Chinese Ambassador Han Zhiqiang, left, pays a courtesy call on Prime Minister Paetongtarn Shinawatra, right, at Government House on Wednesday. (Photo: Government House)
Foreign Ambassador Han Zhiqiang, left, pays a kindness visit on Prime Minister Paetongtarn Shinawatra, straight, at Government House on Wednesday. ( Photo: Government House )

As both nations make to celebrate the 50th anniversary of diplomatic ties next time, China has been asked by Prime Minister Paetongtarn Shinawatra to set up a satellite launch center to provide 6G systems to Thailand.

China, meanwhile, will give a new pair of large penguins as kindness diplomats to celebrate the anniversary.

Han Zhiqiang, the Taiwanese Ambassador to Thailand, paid a kindness contact on the top at Government House on Friday. Following their debate, the minister, on behalf of the Chinese Embassy and the Thai-Chinese Chamber of Commerce, donated 7.2 million baht to help flood survivors in Thailand.

According to Indian government official Jirayu Huangsab, Ms. Paetongtarn expressed her joy at welcoming the Chinese ambassador, noting the” Golden Month of Friendship” of next year.

Ms Paetongtarn said Thailand is ready to engage with China in elevating socially beneficial connections, especially in business, investment in emerging companies, as well as social markets.

Mr. Han praised her for taking over as prime minister, and reaffirmed China’s devotion to strengthening bilateral cooperation and compassion.

He praised the fruitful discussions Ms. Paetongtarn and the Chinese Premier Li Qiang had during the most current Asean Summit in Laos.

Mr. Jirayu claimed that both parties agreed to hold social exchanges in the course of the activities into 2025.

Additionally, a new pair of large panda will be delivered to Thailand in exchange for a temporary enshrinement of China’s spiritual Buddha Tooth Relic for 73 nights starting on December 4.

Ms. Paetongtarn thanked China for approving the Guanlei Port on the Mekong as a berry buy station in southwestern Yunnan province in late July, and the two sides reached a compromise to improve business ties.

She also urged Chinese businesses to make additional investments in Thailand by creating low-orbit satellites and data centers as well as electric vehicle ( EV ) manufacturing facilities.

The minister confirmed that China is willing to negotiate for Ms. Paetongtarn’s standard meeting with Chinese President Xi Jinping and Mr. Li.

Continue Reading

Govt launches rebuild drive

By:
On:
In: South-East Asia

Recovery energy aims for B110bn increase

PUBLISHED: 17 Oct 2024 at 04: 45

Prime Minister Paetongtarn Shinawatra speaks at the launch of the government's latest project to create a sustained economic stimulus chiefly targeting small-scale businesses that could generate up to 110 billion baht for the economy. (Photo: Chanat Katanyu)
Prime Minister Paetongtarn Shinawatra addresses the president’s most recent initiative to create a sustained economic stimulus aimed primarily at small-scale companies, which may bring in up to 110 billion ringgit for the business. ( Photo: Chanat Katanyu )

With the aim of increasing the economy by up to 110 billion baht, the state has launched a global economic recovery program, enlisting big companies to help smaller operators.

The campaign, which runs from September this year until January, has three parts: reducing costs, generating income, and creating opportunities with a focus on small operators, who account for 90 % of the country’s business operations and serve as the backbone of the economy.

Prime Minister Paetongtarn Shinawatra affirmed the government’s dedication to stimulating economic engagement at the start on Wednesday, citing the government’s dedication to promoting consumer investing and creating company opportunities. Last season’s 10, 000-baht cash handout marked a significant step in this regard.

According to Ms. Paetongtarn, the state anticipates the effort will boost the economy by up to 110 billion baht, noting that the private sector backs the execution while the public sector is the driving force behind it.

In terms of lowering rental charges for operators who book spaces owned by condition agencies and participating companies, the government has pressed for assistance from state agencies and businesses. 12 business operators in Bangkok who collaborate with the Bangkok Metropolitan Administration have agreed to cover the cost of half the rental charges for about 11, 000 suppliers until the close of the year.

Additionally, Thailand Post and participating partners have agreed to lower transportation costs because the Commerce Ministry and various state organizations have agreed to waive rental charges for over 3, 000 sellers.

Ms. Paetongtarn argued that the running of a company requires significant expenses like transportation and rental charges. She said that the Defense Ministry and the Interior Ministry does make certain areas at military outposts and municipal rooms into areas as a result of the government’s efforts to boost the number of small-scale businesses. More than 1, 300 sites will be created globally.

Additionally, the government is working with key manufacturers and wholesalers to lower the cost of consumer goods and hold reduction events. More than 130 users with over 100, 000 trees may take part in this system, she said. The state may offer both short- and long-term programs to boost the economy, according to the prime minister.

The kick-off was joined by Deputy Prime Minister Phumtham Wechayachai, Commerce Minister Pichai Naripthaphan, Deputy Commerce Minister Suchart Chomklin and staff from the personal business including CP Group, The Mall Group, BJC, Big C, PT, PTT Oil and Retail Business Plc, Sea Value, Thai Union and OSOTSPA.

Mr. Pichai referred to the economic recovery strategy as the first step in the healing process as a result of the country’s efforts to attract investments from a range of industries. He claimed that investments in electronic circuit boards totaling 150 billion ringgit were made last year, while data center purchases totaling 160 billion baht were made this month, excluding investments of 30 billion ringgit from Google and another 30 billion ringgit from the UAE.

Ms Paetongtarn’s subsequent visits to Qatar and Laos even drew funding interest in many areas including food safety, he added. The projected 110-billion-baht number is expected to come from three solutions. Of the full, 78.7 billion ringgit may stem from increased paying among vulnerable groups who received a 10, 000 bass money flyer. This group is expected to spend about 54 % of the flyer on cheap items as part of the economic recovery job.

On 18.7 billion ringgit will be used to reduce business costs and expand opportunities for little operators through festivals and other unique events to encourage saving. The remaining 14.4 billion ringgit will be generated by manufacturer cost reductions and sales activities at section businesses and retail/wholesale stores. Meanwhile, KKP Research has revised its economic forecast for 2024, increasing the GDP projection from 2.6 % to 2.8 %, and for 2025, from 2.8 % to 3.0 %.

Continue Reading

Malaysia’s public EV charging target is more a dream.. ‘We are very lonely’

By:
On:
In: Technology
  • Govt’s encouraging rhetoric is n’t supported by practical steps to aid infra construction
  • Norway’s shift to EVs took 2 years of&nbsp, govt&nbsp, help before tapering down bonuses

All Malaysian interstate highways need to have sufficient public EV charging sites. But Charge Point Operators face many issues.

Talk is low. Even more so when it comes from the state, which therefore lacks the necessary policy, regulation, and funding resources to getting things moving quickly. Take Malaysia’s electric vehicle ( EV ) public charging ambitions which paint a picture of a green, sustainable future. &nbsp,

A vision, detached from reality

The government’s ambitious&nbsp, target, announced by Malaysian Green Technology Corp ( MGTC ) in late 2020, of 10, 000 public charging stations ( separate from home EV charging ) by 2025 reflects a nation ready to embrace the EV revolution. &nbsp,

But, the reality on the ground, where as of the first quarter of this year, just 2, 214 EV charging stations have been installed, based on Ministry of International Trade and Industry information, tells a starkly different story. As one Charge Point Operator ( CPO ) bluntly puts it:” We are very lonely”.

CPOs are organizations that install and maintain EV charging stations and offer charging service to EV owners. Businesses that sell house Electric charging stations are exempt from this definition. &nbsp,

This registration demonstrates the criss link between lofty objectives and the challenging challenges faced by those who have assumed the responsibility of creating Malaysia’s electric vehicle potential, mainly without government support. &nbsp,

It should come as no surprise that CPOs are struggling due to high import duties and a lack of power infrastructure, regulation challenges, and many agencies fighting for dominance in the sector.

One of the biggest burdens is the large import taxes that must be paid for transported equipment.

” We still have to pay at least 10 % buy duty”, says Puvanendren Maniam, COO of ChargEV Sdn Bhd, a leading Executive. These responsibilities, ranging between 10%-15 %, significantly increase prices for users.

Another key challenge is posed by the lack of sufficient power infrastructure, especially along highways where quick charging is most required to lessen “wait anxiety.” ” For 600 megawatts, you need to throw in a small power sub-station and that would cost us at least around RM300, 000″, Puvanendren said, illustrating the size of the problem.

And then there is the regulation confusion. ” There are no distinct requirements. There’s just rules”, Puvanendren points out. ” I may post everything according to the guide, and we can also get rejected”. This lack of clarity creates an environment of doubt, deterring funding and slowing development.

Malaysia's public EV charging target is more a dream.. ‘We are very lonely’No surprise that Chua SengTeong ( pic ), Managing Director of chargEV and Puvanendren’s boss, says that the road to electrification is fraught with obstacles.

Add to this the view problem. Chua documents,” the fact is, we’re building a key national network. Yet, we ( public EV charging players ) are viewed as startups ( by the government )”.

He shares some similarities with the mobile operators, who spent billions on developing wireless networks in the first to mid-1990s and received government support through low spectrum licensing costs. The government has little support for the expensive and labor-intensive project to build out open EV charging points, and there is no cash to bridge the gap while the market develops.

The essential requirement vehicle around, EV ownership is rarely at 2 % of total vehicles owned in Malaysia, according to 2023 Road Transport Department information. A sprinkling of optimism comes from recent studies by EY that shows 25 % of Malay are interested in purchasing EVs. Can the people EV charging companies survive while a market burgeons, though?

The three major players with 70 % market reveal

This explains why a small number of people dominate Malaysia’s people EV charging ecology, with chargEV and Gentari Sdn Bhd having deep-pocket kids. Yinson Bhd, an oil and electricity infrastructure person listed on Bursa Malaysia, which made RM6.3 billion in revenue in FY25 and RM741 million in key income, holds the majority of the stock in ChargeEV.

Gentari is owned by the federal fuel company, Petronas. Enough said.

A third player, EV Connection Sdn Bhd ( EVC ) which operates under the brand, JomCharge, has managed to carve some market share as well. EV Connection was founded in 2016 and is now owned by its leader, Lee Yuen How, who stated to DNA,” We have been successful as a business since Day One but on the CPO area we are still in the dark.” Gentari provided cash for the business in 2022. JomCharge has around 621 people demand items. &nbsp,

The Energy Commission of Malaysia established Charge EV in 2015, with Yinson purchasing a majority interest in 2023 for an undisclosed amount in 2021 after taking a majority interest in it. &nbsp,

Petronas founded Gentari in June 2022 with the intention of producing net-zero carbon pollution solutions using solar energy, gas, and clean mobility.

EVC&nbsp, is an EV charging and solar photovoltaic ( PV ) systems company. &nbsp, It installs, operates and maintains EV chargers for professional clothes, and communities and got into the business of operating its own people Vehicle demand points in 2022.&nbsp,

It is thought that the three people collectively control 70 % of the business.

The actuality- no obvious pathway to profitability

Public EV charging is not a market for the faint of heart especially when the government's three-year tax break incentive is deemed to be poorly thought out. With the main players expecting to be breakeven in eight years time, how many will be around to benefit from this 'incentive'?

While neither chargeEV, or EV Connection, nor Gentari have formally stated how much they have invested into their common Vehicle charging system, all three expect to see breakeven in about eight years time. &nbsp,

Public EV getting is not a business for the timid or those who have short-term objectives, especially when an “incentive” from the government is deemed to be terribly conceived. &nbsp,

The three-year duty crack incentive is simply no happening for us because we simply expect to break even eight years later, Chua said, referring to the government’s tax exemption that fails to address the long-term economic challenges faced.

Gentari sounds this attitude, drawing parallels with Norway’s EV trip. Its director claimed that it took nearly 20 years of continued efforts and government assistance before slashing the incentives. This demonstrates the time and effort required for for a change, suggesting that Malaysia’s EV charging infrastructure may require similar ongoing support to maintain and grow. But will the federal recognize this and act in response to it?

Gentari acknowledges that reaching the 10, 000-charging level destination by 2025 is ambitious, but it is doable, with the right regulation support, it said, despite operating the largest network of EV charging stations in Malaysia, with over 520 charging points spread across 131 locations nationwide. These include people points that are available to all EV drivers and secret points with access to certain users. &nbsp,

The Gentari spokesperson emphasized that” streamlining regulatory processes, particularly reducing approval times for projects, would be crucial to accelerating charger installation”.

The Ministry of Transportation ( MOT ) is the government entity best suited to cut through the bureaucracy, according to Prof. Dr. Vinesh Thiruchelvam, chief innovation and enterprise officer at Asia Pacific University, who also leads its renewable energy initiatives. &nbsp,

” MOT is best placed to govern ( policies, mandates, etc ) but the best agency for actual implementation should be under the Road Transport Department (RTD ) where planning is done, locality determined and specification outlined”.

RTD will undertake the task of working with power utility, TNB, along with locality ownership ( i. e R&amp, R PLUS etc ) with installation based on RTD/Sustainable Energy Development Authority specs so that on-road and in-premise ( hotels, malls, commercial buildings etc ) sites have the same standard implementation he added.

Gentari, while acknowledging the various challenges, has taken a proactive approach. The company is focused on strategically placing fast chargers in high-demand locations, including major cities and highways. To reduce range anxiety and set up multiple charging points at each location to accommodate growing demand, they want to install charging stations every 100 kilometers so that waiting times can be shorter.

‘ Contribution fee’ to TNB

The substantial upfront costs that CPOs must bear include costs for power infrastructure that they do n’t even own. According to Chua, CPOs are required to pay for the construction of substations and other types of power infrastructure, which then become TNB’s property. &nbsp,

For example, a compact substation capable of delivering 600 to 700 kilowatts of power can cost around RM300, 000. This is considered a” contribution fee” to TNB, but the CPOs do n’t retain ownership or control over this infrastructure. In other words, if another company wants to use the same substation later to power their EV charging points, they can contact TNB without paying the CPO who installed it or who installed it. &nbsp,

CPOs who must invest in infrastructure they do n’t own are now a significant financial burden, which could benefit their future competitors. Small wonder that the landscape is rife with smaller players, all of whom are struggling with the high capital demands and the rapidly evolving technology, according to an industry observer. &nbsp,

This underscores the urgent need for a more supportive government approach to building Malaysia’s public EV charging infrastructure, with the leading CPOs optimistic that Budget 2025 will bring them good news. &nbsp,

Zero education

The complete absence of public education and awareness campaigns is perhaps Malaysia’s most obvious oversight of its EV strategy. Unlike the concerted efforts seen in promoting 5G technology, there has been virtually no government-led initiative to educate the public about EVs and the charging infrastructure.

Due to the lack of accurate information, the field is vulnerable to misinformation and fear-mongering, especially on social media. According to Chua, “our team is responding to random questions based on the negative online impressions” for the most part. The lack of authoritative, fact-based education has allowed myths and misconceptions about EV safety and practicality to proliferate unchecked.

The national JomCharge network under, EV Connection. Lee Yuen How, CEO of EV Connection says that while the EV task force he is part sees the government and the agencies pushing hard to speed up the approval processes, there are some regulations that need to be amended and it will take some time for this to happen.

The only way forward

Despite the daunting challenges, industry leaders see a path forward for Malaysia’s public EV charging infrastructure. This path, however, demands a shift in approach and policy. Chua emphasizes the need for a holistic strategy:” We need a public-private partnership, whatever that means or what form, but it needs to happen otherwise, you know, it’s not going to work”.

The urgent need for regulatory clarity is at the heart of this strategy. Operators are thrown a maze of uncertainty due to the current patchwork of guidelines across various jurisdictions. ” The question we ask is very simple: who’s the guy that we actually talk to? There is n’t anyone dedicated to carrying the game”, Puvanendren said. &nbsp,

Lee of EVC&nbsp, said,” As part of the EV task force and also technical committee, we observe the government and the agencies are really pushing hard to speed up the approval processes. Some laws require amendments, and it will take some time for this to occur.

Another important pillar of the journey is financial incentives. The government needs to reevaluate how it goes about supporting this developing sector. The industry needs long-term support mechanisms, such as tax breaks and import duty exemptions for businesses installing charging facilities, to support it as it progresses.

Gentari advocates for more incentives for charging networks, such as tax breaks or subsidies for businesses that invest in EV charging infrastructure. In these incentives, they also recommend including Battery Energy Storage Systems ( BESS) to increase system flexibility and reliability. &nbsp,

Additionally, they suggest tax exemptions and cash incentives for battery electric vehicles ( BEVs ), as well as policies to encourage the gradual electrification of vehicle fleets, particularly for business operators. &nbsp,

Equally crucial is the solution to the issue of power infrastructure, and Puvanendren suggests a novel strategy that could speed up charging stations ‘ deployment. ” We could encourage the businesses ( retailers ) to get tax exemptions if they install charging facilities”. This approach could not only make charging stations more affordable, but it also reduced the burden on CPOs to spend. &nbsp,

Puvanendren elaborates that by incentivizing retailers to invest in charging infrastructure, the government could create a win-win situation. Retailers would gain from more customers and foot traffic, while CPOs could concentrate on running and upkeep the stations rather than having to pay the installation’s entire cost.

Gentari has already put in place a similar model, which offers a zero-capex model for public chargers, enabling businesses to host EV chargers at their preferred locations for public use with the least amount of money upfront.

Despite the daunting challenges, industry leaders see a path forward for Malaysia's public EV charging infrastructure. This path, however, demands a shift in approach and policy that emphasizes a holistic strategy.

Continue Reading