Tech, AI and Semiconductor Industry News: Aug Week 3

1. Trending

i. Black Myth: Wukong’s Mania Lifts Partners’ Sales

China’s first AAA video game, Black Myth: Wukong, has achieved record-breaking success, attracting 1.4 million concurrent players within its first three hours of release. The figures outperform globally popular single-player games like Cyberpunk 2077, Elden Ring, and Baldur’s Gate 3 and propelled it to No. 3 on Steam’s all-time concurrent players chart. Developed by Tencent-backed Game Science, the game is inspired by Journey to the West and took six years to develop. The founder of the game’s studio, Feng Ji, is a legendary figure who transitioned from a career in biomedical engineering to game development, driven by his passion.

Tech Industry: The mania has spurred a significant surge in consumer demand for gaming hardware in China, with some vendors experiencing a 300% increase in searches and a notable jump in transactions. Sony’s PlayStation 5 (PS5) is in particularly high demand, as the game runs best on this console.

F&B Industry: Meanwhile, Luckin Coffee’s “Cloud Americano”, launched in collaboration with the game, gained significant attention due to its unique packaging and 3D visual effects, resulting in a rapid sell-out. The collaboration’s success was further amplified by the game’s producer endorsing it on social media.

Capital Market: The excitement also spilt into capital markets, with stocks of related companies like Huayi Brothers and Zhejiang Publishing Media surging.

Takeaway: This release marks a significant milestone for China’s gaming industry, filling a long-standing gap in the global AAA game market. The game’s popularity highlights the growing capabilities of Chinese developers in producing high-quality, globally recognised games and the potential ripple effects on other industries in China.

Despite the hype, the broader game investment landscape has been in decline since 2018, with limited interest from traditional investors. Industry insiders note that the market is saturated, with a few dominant players controlling most of the revenue. As such, while Black Myth: Wukong has generated massive interest, its impact is unlikely to change the entrenched industry dynamics.

Read the full paid article about Black Myth: Wukong’s performance.

Read the full paid article about the increase in sales for gaming hardware.

Read the full Chinese article about Luckin Coffee’s Black Myth:Wukong merchandise.

ii. AI Glasses Gain Traction Among Chinese Tech Companies

The rapid development of AI has led to a surge in AI-powered smart glasses in China, with companies like Xiaomi-backed Superhexa introducing affordable options to meet growing consumer demand. These glasses integrate generative AI, enabling features like real-time translations and intelligent chat capabilities. While established brands like Ray-Ban and Meta have seen success with their premium models, Chinese competitors are targeting a broader audience by offering similar functionality at lower costs.

Takeaway: However, making these products more appealing to a broader consumer base requires overcoming challenges in areas like weight reduction, improved usability, and battery life. For sustained growth, manufacturers must balance functionality with comfort and style while overcoming barriers related to consumer adoption beyond early tech enthusiasts.

Read the full paid article about Chinese firms’ interest in AI glasses.

2. Business Moves

i. Mubadala Invests in London-Based Data Centre Developer Yondr

Mubadala Investment is making a strategic investment in London-based Yondr Group, a data centre developer, to capitalise on the growing demand for cloud services and AI-driven technologies. Data centres are increasingly critical as digital economies expand, with demand projected to grow at an 11% compound annual growth rate by 2032.

Takeaway: The deal is part of Mubadala’s broader push into the data centre sector, where over US$20 billion has been invested globally this year. The investment aligns with the UAE’s broader ambition to position itself as a hub for AI as part of broader economic diversification plans.

Read the full article about Mubadala’s investment in Yondr.

ii. FPT Invests $174m in Vietnam-Based AI Centre

Vietnam’s leading tech firm FPT is investing US$174 million in a major AI project in Binh Dinh province. The development will include an AI centre and educational and urban zones. It will focus on research, digital transformation, software development and cybersecurity. This follows the company’s recent announcement to build a US$200 million AI factory using Nvidia technology.

Takeaway: FPT’s investment reflects its strategy to position itself as a major player in AI research and applications, both domestically and globally.

Read the full article about FPT’s AI centre in Vietnam.

iii. AWS to Invest US$6.2b in Malaysia and launch APAC office

Amazon Web Services (AWS) made a commitment to invest US$6.2 billion in Malaysia by 2038. The move comes as it launches a new AWS Asia Pacific Region in the country.

Takeaway: This move is expected to significantly boost Malaysia’s digital economy by providing local businesses access to advanced cloud technologies, including AI and machine learning. The investment also aligns with Malaysia’s Industrial Master Plan 2030, which aims to enhance innovation, digital infrastructure, and skill development. The project is projected to add US$12.1 billion to Malaysia’s GDP and create over 3,500 jobs annually.

Read the full article about AWS’s US$6.2b investment in Malaysia.

iv. South Korean AI Chip Firms Rebellions and Sapeon to Join Hands

Two South Korean AI chip makers, Rebellions Inc. and Sapeon Korea Inc., have finalised a merger. Sapeon is backed by South Korea’s largest telecom company, SK Telecom, and the world’s second-largest memory chipmaker, SK Hynix. Rebellions recently raised $15 million from Wa’ed Ventures, an investment arm of Saudi Aramco, pushing its total funding to over $225 million.

Takeaway: The merger represents a significant move in the global AI chip race, showing how South Korean firms are pooling resources to enhance competitiveness against established giants like Nvidia.

Read the full article about Rebellions and Sapeon’s merger.

v. Bytedance Launches Search App

ByteDance, the owner of TikTok, has launched a standalone app called Douyin Search in China to compete in the internet search space. The app leverages the popularity of Douyin (the Chinese version of TikTok) and focuses on searching for short video content. It utilises ByteDance’s AI-based recommendation system, offering strong search capabilities and personalised content.

Takeaway: This is ByteDance’s fifth attempt at a search app, reflecting ongoing competition among major tech players to challenge dominant players in China’s search market.

Read the full article about Bytedance’s video search tool.

3. People Moves: Intel, Google, Starhub and Xpeng

Intel: Intel’s board member Lip-Bu Tan, a key figure brought in two years ago to assist with the company’s turnaround, has stepped down unexpectedly. Tan cited the need to reprioritise commitments as the reason for his departure while still expressing support for Intel’s work. His exit comes as Intel reduces its workforce by 15%.

Google: Google appointed Noam Shazeer, co-founder of Character.AI and a former Google researcher, to co-lead its AI project, Gemini. Shazeer will work alongside Jeff Dean and Oriol Vinyals. Shazeer rejoined Google from Character.AI, which Google was previously in talks about investing in it. Gemini is part of DeepMind’s AI models and is integrated into products like Google Search and Pixel smartphones. Shazeer’s past contributions include co-authoring the 2017 research paper that fuelled the AI boom and which was utilised by Character.AI.

Starhub: StarHub has made two senior appointments

• Senior DBS executive Han Kwee Juan was named an independent director effective September 1. Han will also join the risk and sustainability committee. Although he lacks prior experience as a director of a listed company, he will undergo training to fulfil his new role. Han’s background includes senior leadership roles at DBS and Citibank Singapore.
• StarHub’s CFO, Dennis Chia, is stepping down after nine years for personal reasons and will continue as an advisor until the end of 2024.
• Jacky Lo, the current CFO of Indonesia’s GoTo Group, will succeed Chia. Lo has a background in finance across the tech, fast food, and consulting industries. He has held leadership roles at Ping An’s OneConnect and Yum China.

Xpeng: Xpeng Motors recently made two key executive hires.

• Lei Su, formerly from AutoNavi, has joined as Senior Director overseeing the product experience team for Xpeng’s intelligent cockpit.
• Jiankun Liang, who has been with Xpeng for over six months, now leads the Data Intelligence Centre. Liang was the university classmate and former colleague of He Xiaopeng, and he be responsible for IT operations, data, and information systems.

Read the full article about Lip-Bu Tan’s exit from Intel.

Read the full article about Google’s co-leader for Gemini.

Read the full article about Starhub’s executive from DBS.

Read the full article about Starhub’s FO from GoTo.

Read the full article about Xpeng’s two executive hires.

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Image Source:

• 3DMGame
• AWS
• Reuters