Tech, AI and Semiconductor Industry News: Oct Week 3
Tech, AI and Semiconductor Industry News: Oct Week 3
1. Deals
i. Horizon Robototics’ IPO Attracts Tech Giants’ Investment
Horizon Robotics, a Chinese company specialising in autonomous driving technology, is planning an IPO in Hong Kong. Horizon Robotics is led by Kai Yu, an AI expert formerly at Baidu who played a vital role in the company’s autonomous driving initiatives. Major investors include Alibaba, Baidu, French billionaire Rodolphe Saade’s CMA CGM, and a Ningbo government fund, with investments totalling US$220 million. The company aims to raise up to US$800 million and achieve a valuation of US$6 billion. Horizon Robotics has previously secured significant backing from other firms like BYD and CATL.
Takeaway: Alibaba, Baidu, and other Chinese technology companies are ramping up investments in advanced sectors that Beijing identifies as strategic, including autonomous driving, semiconductors, and AI. Baidu, in particular, is heavily investing in self-driving cars and robotaxis, alongside its expansion into generative AI. Horizon has exceeded its initial fundraising expectations—a promising sign for investors amid a slowdown in IPO activity.
ii. Fuji Soft Founder Supports Buyout by Bain
Hiroshi Nozawa, founder and shareholder of Fuji Soft, publicly endorsed Bain Capital’s buyout offer of 9,450 yen per share, valuing the company at $4 billion. This bid surpasses KKR’s offer of 8,800 yen by about 7%. Despite this, Fuji Soft’s board has recommended KKR’s offer, citing no discussions with Bain regarding terms. Nozawa urged the board to reconsider, emphasising that Bain’s higher price is in shareholders’ best interests. Bain has positioned itself as a supportive partner, while KKR claims backing from major shareholders for its bid.
Takeaway: Shares of Fuji Soft closed at 9,630 yen, indicating market confidence above both offers.
2. Business Moves
i. Proofpoint Sets Up a Data Centre in Singapore
US cybersecurity firm Proofpoint plans to open a new data centre in Singapore in 2025 to help local businesses comply with data residency regulations. The centre will offer AI-driven cybersecurity solutions to combat threats like ransomware, social engineering and business email compromise. This new facility is Proofpoint’s 28th data centre worldwide.
Takeaway: Proofpoint’s establishment of a data centre in Singapore comes as more global tech giants are investing in the region. It also mirrors moves by peers. For instance, ST Engineering announced its intention to launch data centres in Singapore in June.
ii. Lenovo Collaborates with Meta and Nvidia for AI Outside of China
Lenovo announced strategic partnerships with Meta and Nvidia to enhance its AI offerings in markets outside China. At the Lenovo Tech World conference, CEO Yang Yuanqing introduced “AI Now,” a personal AI assistant for PCs built on Meta’s Llama 3.1 model. This assistant operates locally without internet access and can perform various tasks, which Lenovo believes will differentiate it in the competitive market.
Additionally, Lenovo is expanding its collaboration with Nvidia to launch enterprise AI solutions, including the ThinkSystem SC777 V4 Neptune server. However, this will not be available in China due to US restrictions on technology exports.
Takeaway: By creating distinct AI software for different regions, the company positions itself to navigate geopolitical challenges while enhancing its product offerings to maintain its market competitiveness.
iii. Apple Launches Largest Research Lab Outside of the US in China
Apple opened its largest research lab outside the US in Shenzhen, China. The new facility, covering 20,000 square metres, will enhance research and testing for products like the iPhone, iPad, and Vision Pro headset and support collaboration with local suppliers. Apple aims to employ over 1,000 talents at this hub, which will serve as its primary R&D centre in the Greater Bay Area.
Takeaway: The move is aimed at helping Apple to strengthen its presence in the world’s biggest smartphone market amid increasing competition. Despite diversifying its supply chain, Apple’s investment in China reflects the region’s importance.
3. People Moves
Microsoft: Microsoft’s VP of GenAI research, Sebastien Bubeck, is leaving the company to join OpenAI. His future role at OpenAI has yet to be defined. Microsoft expressed its support for his decision and indicated a desire to maintain a relationship with him in his new position. Despite Bubeck’s departure, his colleagues who co-authored research on Microsoft’s Phi LLMs will remain at Microsoft to continue developing these models. This move comes amid a series of high-profile departures from OpenAI, although CEO Sam Altman has denied any connection to company restructuring.
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Image Credits:
- Techopedia
- South China Morning Post