Tech, AI and Semiconductor Industry News: July Week 3

1. China Lays Out 300 Reforms for Next Five Years, Tech to Be Key Focus

China unveiled a comprehensive plan with 300 reform measures for the next five years, aiming for sustainable and innovation-driven growth. Key focuses include industrial upgrading, science and tech innovation, and self-reliance in core technologies. The reforms will bolster education to nurture locals and attract overseas talent, improve links between universities and industries, and support both state-owned and private enterprises in innovation. Other key measures include enhancing the entrepreneurial environment, improving access to credit for private firms, and encouraging foreign investments. National security reforms will bolster cybersecurity, artificial intelligence in surveillance, and strategic deterrence capabilities.

Read the full paid article about China’s 300 reform measures.

2. Business Expansions

i. Data Centre Equinix Eyes Expansion in Southeast Asia

Equinix acquired three data centres from Total Information Management in the Philippines to strengthen its presence in Southeast Asia (SEA), a region with high growth potential. The US-based company, already established in Indonesia and Malaysia, plans further expansion in Singapore as it is awarded data centre capacity by the country. The favourable environment in SEA, with its strong growth potential, tech-savvy population, and cost advantages, has attracted significant investments from global tech giants like Google, Microsoft, and Amazon. Equinix also announced upcoming expansions into new markets, such as Jakarta, Indonesia, and India, later this year.

Read the full article about Equinix’s plans to expand in SEA.

ii. Studio Behind Marvel’s Effects to Launch Hong Kong R&D Centre

Digital Domain Holdings, a Hong Kong-listed firm renowned for its Oscar-winning visual effects work in Hollywood films, plans to invest HK$204 million to establish an R&D centre at Hong Kong Science Park in Sha Tin. The new facility will focus on developing AI-powered virtual humans and AI video production technology. Leveraging its extensive digital asset libraries, the company aims to file five Hong Kong patents to drive technological innovation. Digital Domain aims to support Hong Kong’s film industry and expand its VR technology applications to sectors like banking, education, elderly services, and tourism.

Read the full paid article about Marvel’s effects studio’s entry into Hong Kong.

iii. iFlytek Invests HK$400m in Hong Kong to Set Up HQ

Chinese AI company iFlytek announced a HK$400 million investment in Hong Kong and the establishment of its international headquarters at Cyberport. The investment contributes to the setup of a 150-member R&D team focused on large language models (LLM) and AI applications in speech, education, and healthcare. iFlytek plans to collaborate with local companies and expand its market in Hong Kong and beyond, targeting the Middle East and SEA.

Read the full paid article about iFlytek’s investment in Hong Kong.

iv. Grab Buys Restaurant Reservation Platform Chope

Grab acquired the restaurant reservation platform Chope to enhance its support for small and medium-sized businesses. This acquisition is expected to help these businesses grow and manage operations more efficiently by leveraging Chope’s products and services. The move is expected to bolster Grab’s omni-commerce strategy and capture the dining-out opportunity. Chope, which started in 2011 and operates in seven cities, has over 13,000 restaurants in its network. The acquisition follows Grab’s previous purchase of the food review and reservation site HungryGoWhere in 2022.

Read the full article about Grab’s acquisition of Chope.

3. AI Business Moves

i. Baichuan Secures US$700m in Funding from Tech Giants

Chinese artificial intelligence (AI) startup Baichuan AI completed a significant funding round, raising around 5 billion yuan ($689.6 million). The firm is supported by major Chinese tech firms like Alibaba, Tencent, and Xiaomi, as well as state-backed entities, bringing the company’s valuation to over $2.7 billion. Founded in April 2023 by former Sogou CEO Wang Xiaochuan, Baichuan AI has quickly become China’s second most valuable AI startup after Moonshot AI. Alibaba, which holds stakes in the country’s top four AI firms, has been particularly active in the AI startup scene.

Baichuan AI is developing LLM, including the Tongyi Qianwen series and an open-source version named Qwen, to strengthen its position in the competitive AI market. The recent funding follows the launch of Baichuan’s new LLM and a digital assistant aimed at transforming its Baixiaoying chatbot app into a comprehensive digital life platform similar to Tencent’s WeChat.

Read the full article about Baichuan’s funding.

ii. Nvidia Developing Flagship AI Chips for China

NVIDIA is developing a version of its new flagship AI chips, the “Blackwell” series, specifically for the Chinese market to comply with current US export controls. This includes a chip tentatively named “B20,” expected to be released in the second quarter of 2025, in collaboration with the Chinese distributor Inspur. The “Blackwell” series, particularly the B200 chip, boasts significant performance improvements over previous models. The move aims to counteract challenges from Chinese companies like Huawei, which have made progress in the domestic AI processor market amid tighter US export restrictions. Despite a rough start, NVIDIA’s H20 chip sales in China are growing, with projections to sell over a million units worth US$12 billion this year. NVIDIA’s efforts come as the US tightens export controls on advanced semiconductors and seeks similar measures from allies.

Read the full article about Nvidia’s China-targeted chips.

iii. Tencent, Alibaba Integrate Meta’s New Llama 3.1

Chinese tech giants Alibaba and Tencent have quickly integrated Meta’s new Llama 3.1 AI model into their cloud services. Llama 3.1, an open-source LLM from Meta, has generated significant interest. Alibaba’s cloud platform offers a month of free computing resources for using Llama 3.1, while Tencent has incorporated the model with enhancements for various applications. Meta provides Llama 3.1 in three sizes based on their parameter count, promising advanced capabilities. Despite concerns over reliance on Meta’s models, Meta CEO Mark Zuckerberg advocates for open innovation, claiming future Llama models will be industry-leading.

Read the full paid article about Llama 3.1.

iv. Google Makes Progress in AI for Math

Alphabet’s Google introduced two new AI systems, AlphaProof and AlphaGeometry 2, which showed significant progress in solving complex mathematical problems. These AI models, part of Google’s DeepMind unit, tackled questions from the 2024 International Math Olympiad, solving four out of six questions. While one question was solved in minutes, others took up to three days, exceeding the competition’s time limit. Despite this, these results are the best achieved by AI in such a competition. AlphaProof, which combines the language model Gemini with AI AlphaZero, solved three problems, including the hardest one, which only five out of over 600 human contestants managed to solve. AlphaGeometry 2 solved an additional problem. This development underscores advancements in AI’s reasoning capabilities, with similar efforts being made by Microsoft-backed OpenAI.

Read the full article about Google’s progress with AI for math.

4. People Moves: Porsche

Porsche: Porsche appointed Alexander Pollich as the new president and CEO of Porsche China, Hong Kong, and Macao, based in Shanghai. He will focus on implementing a growth strategy aligned with the brand’s values, enhancing collaboration with local dealers, and optimising internal processes. Pollich succeeds Michael Kirsch. Pollich has been with Porsche for over 23 years and has extensive experience in various management roles, including at Porsche Deutschland GmbH. He has also significantly contributed to Porsche’s growth in Canada and the UK. Until Pollich’s successor is found, the German market will be managed by Karsten Sohns and Thomas Illner.

Read the full article about Pollich’s promotion to CEO and president.

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Image Sources:

• TechFundingNews
• The Economic Times