Connect with us

Published

on

CHONGQING, CHINA – MAY 4, 2023 – Young technicians test the quality of electronic chips at a dust-free production workshop in Chongqing, China, May 4, 2023.

CFOTO | Future Publishing | Getty Images

Industry analysts are optimistic that Chinese chip makers will develop their own advanced semiconductors despite Washington’s attempts to cut the country off from accessing or manufacturing the technology.

“I don’t underestimate China’s ability and resolve to find a way to build next generation technologies and to also utilize some lagging technologies to still build really important products,” Daniel Newman, CEO and principal analyst at research firm Futurum Group, told CNBC.

related investing news

Ark Invest's flagship fund sold Nvidia before its big rally. Here's why

CNBC Pro

Chinese companies such as Huawei and Alibaba are studying methods to develop cutting-edge artificial intelligence performance with fewer or less powerful semiconductors, or combine different chips to reduce reliance on a single hardware, according to a report by The Wall Street Journal.

U.S.-China chip war: Need to figure out how to 'play nice in the sandbox,' investment officer says

Industry experts believe it will be a “challenge” for these Chinese tech firms, but some experiments have shown “promise,” the WSJ reported.

Paul Scharre, vice president and director of studies at the think tank the Center for a New American Security, said that “nothing’s impossible”

“I certainly think in the long run, we should expect the Chinese to be able to make these technological advancements. It’s quite possible that they’re able to do so faster than maybe others might expect,” he said.

In a retaliatory move to Washington’s efforts to cut China off from advanced chip tech, China banned key infrastructure operators in the country from buying products from U.S. chip giant Micron Technology in May. Washington also reportedly urged South Korea to not let its chip makers fill Micron’s void in China.

Nvidia founder and CEO Jensen Huang said last week that the resources China is dedicating into its chip industry is “quite massive, so you can’t underestimate them.”

China is pouring more than 1 trillion Chinese yuan ($140 billion) into its chip industry, according to a Reuters report. Domestic chip makers already benefit from government subsidies and state-backed research projects.

As a result, there are “many GPU startups in China” and existing players have to “run very fast ourselves” in order to stay in the competition, Huang told media at the Computex Taipei 2023 event last week. GPUs, or graphics processing units, are used to power AI applications.

The alternative

China could also pursue dominance in legacy chips where it is already making headway, analysts believe.

“China is showing good progress in making chips based on mature technology,” said Charles Shi, a principal and senior semiconductor analyst at asset management firm Needham & Company.

Mature technology refers to processes involved in making 28-nanometer or larger chips — generally considered legacy chips, with higher numbers denoting older technology. “These chips are increasingly important for the automotive industry,” said Shi. These 28-nanometer chips are widely used in automobiles, consumer electronics, among other products.

U.K.-based analysis provider Total Telecom said that China has acquired competency in 28-nanometer and 14-nanometer chip manufacturing back in 2021.

The demand for 28-nanometer chips is expected to more than triple by 2030, creating a market worth $28.1 billion, according to consultancy International Business Strategies Inc.

“I certainly think that big Chinese chip makers will be able to survive building legacy chips and there’s a very healthy market for legacy, older model chips,” said Scharre.

“There’s absolutely a lot of money to be made and opportunity in legacy chips versus China’s ability to manufacture the most advanced chips, which, at least in the near term, they’re not going to be able to do and will take a really focused amount of resources and attention and human capital to get to,” he added.

Continue Reading

Technology

How quantum could supercharge Google’s AI ambitions

Published

on

By

How quantum could supercharge Google’s AI ambitions

Inside a secretive set of buildings in Santa Barbara, California, scientists at Alphabet are working on one of the company’s most ambitious bets yet. They’re attempting to develop the world’s most advanced quantum computers.

“In the future, quantum and AI, they could really complement each other back and forth,” said Julian Kelly, director of hardware at Google Quantum AI.

Google has been viewed by many as late to the generative AI boom, because OpenAI broke into the mainstream first with ChatGPT in late 2022.

Late last year, Google made clear that it wouldn’t be caught on the backfoot again. The company unveiled a breakthrough quantum computing chip called Willow, which it says can solve a benchmark problem unimaginably faster than what’s possible with a classical computer, and demonstrated that adding more quantum bits to the chip reduced errors exponentially. 

“That’s a milestone for the field,” said John Preskill, director of the Caltech Institute for Quantum Information and Matter. “We’ve been wanting to see that for quite a while.”

Willow may now give Google a chance to take the lead in the next technological era. It also could be a way to turn research into a commercial opportunity, especially as AI hits a data wall. Leading AI models are running out of high-quality data to train on after already scraping much of the data on the internet.

“One of the potential applications that you can think of for a quantum computer is generating new and novel data,” said Kelly. 

He uses the example of AlphaFold, an AI model developed by Google DeepMind that helps scientists study protein structures. Its creators won the 2024 Nobel Prize in Chemistry. 

“[AlphaFold] trains on data that’s informed by quantum mechanics, but that’s actually not that common,” said Kelly. “So a thing that a quantum computer could do is generate data that AI could then be trained on in order to give it a little more information about how quantum mechanics works.” 

Kelly has said that he believes Google is only about five years away from a breakout, practical application that can only be solved on a quantum computer. But for Google to win the next big platform shift, it would have to turn a breakthrough into a business. 

Watch the video to learn more.

Continue Reading

Technology

Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

Published

on

By

Nintendo Switch 2 retail preorder to begin April 24 following tariff delays

An attendee wearing a Super Mario costume uses a Nintendo Switch 2 game console while playing a video game during the Nintendo Switch 2 Experience at the ExCeL London international exhibition and convention centre in London, Britain, April 11, 2025. 

Isabel Infantes | Reuters

Nintendo on Friday announced that retail preorder for its Nintendo Switch 2 gaming system will begin on April 24 starting at $449.99.

Preorders for the hotly anticipated console were initially slated for April 9, but Nintendo delayed the date to assess the impact of the far-reaching, aggressive “reciprocal” tariffs that President Donald Trump announced earlier this month.

Most electronics companies, including Nintendo, manufacture their products in Asia. Nintendo’s Switch 1 consoles were made in China and Vietnam, Reuters reported in 2019. Trump has imposed a 145% tariff rate on China and a 10% rate on Vietnam. The latter is down from 46%, after he instituted a 90-day pause to allow for negotiations.

Nintendo said Friday that the Switch 2 will cost $449.99 in the U.S., which is the same price the company first announced on April 2.

“We apologize for the retail pre-order delay, and hope this reduces some of the uncertainty our consumers may be experiencing,” Nintendo said in a statement. “We thank our customers for their patience, and we share their excitement to experience Nintendo Switch 2 starting June 5, 2025.”

The Nintendo Switch 2 and “Mario Kart World bundle will cost $499.99, the digital version “Mario Kart World” will cost $79.99 and the digital version of “Donkey Kong Bananza” will cost $69.99, Nintendo said. All of those prices remain unchanged from the company’s initial announcement.

However, accessories for the Nintendo Switch 2 will “experience price adjustments,” the company said, and other future changes in costs are possible for “any Nintendo product.”

It will cost gamers $10 more to by the dock set, $1 more to buy the controller strap and $5 more to buy most other accessories, for instance.

WATCH: Nintendo has ‘a lot of work to do’ to convince casual users to upgrade to Switch 2: Kantan Games

Nintendo has 'a lot of work to do' to convince casual users to upgrade to Switch 2: Kantan Games

Continue Reading

Technology

Etsy touts ‘shopping domestically’ as Trump tariffs threaten price increases for imports

Published

on

By

Etsy touts 'shopping domestically' as Trump tariffs threaten price increases for imports

An employee walks past a quilt displaying Etsy Inc. signage at the company’s headquarters in the Brooklyn.

Victor J. Blue/Bloomberg via Getty Images

Etsy is trying to make it easier for shoppers to purchase products from local merchants and avoid the extra cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.

In a post to Etsy’s website on Thursday, CEO Josh Silverman said the company is “surfacing new ways for buyers to discover businesses in their countries” via shopping pages and by featuring local sellers on its website and app.

“While we continue to nurture and enable cross-border trade on Etsy, we understand that people are increasingly interested in shopping domestically,” Silverman said.

Etsy operates an online marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The site, which had 5.6 million active sellers as of the end of December, competes with e-commerce juggernaut Amazon, as well as newer entrants that have ties to China like Temu, Shein and TikTok Shop.

By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to allow for negotiations. Trump also signed an executive order that will end the de minimis provision, a loophole for low-value shipments often used by online businesses, on May 2.

Temu and Shein have already announced they plan to raise prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, many of whom source their products from China, have said they’re considering raising prices.

Silverman said Etsy has provided guidance for its sellers to help them “run their businesses with as little disruption as possible” in the wake of tariffs and changes to the de minimis exemption.

Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the company’s fourth-quarter earnings call in late February that he expects Etsy to benefit from the tariffs and de minimis restrictions because it “has much less dependence on products coming in from China.”

“We’re doing whatever work we can do to anticipate and prepare for come what may,” Silverman said at the time. “In general, though, I think Etsy will be more resilient than many of our competitors in these situations.”

Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass some of those costs on to consumers.

Etsy shares are down 17% this year, slightly more than the Nasdaq.

WATCH: Amazon CEO Andy Jassy says sellers will pass cost of tariffs on to consumers

Amazon CEO Andy Jassy: Sellers will pass increased tariff costs on to consumers

Continue Reading

Trending