China’s ‘lifeline’ labs and rich Asians’ crypto craze

Good day, everybody! That is Cheng Ting-Fang, your #techAsia host for this week, sending greetings from Taipei as we kick off the primary working week of the lunar 12 months of the Snake.

In the event you reside in a Mandarin-speaking place like Taiwan or China, the spring pageant, which celebrates the lunar new 12 months, is crucial vacation of the 12 months. Throughout this time, households historically collect for lavish feasts. After I was a baby, our celebration would begin within the late afternoon on New 12 months’s Eve at my grandparents’ residence within the countryside. We loved scorching pots, marinated beef, slices of abalone, freshly steamed shrimp and fish, mullet roe and dumplings, all with limitless servings of fried turnip pancakes and candy glutinous rice muffins.

Through the years, many households have progressively stopped cooking at residence for the spring pageant as a result of making ready so many dishes will be overwhelming. Final 12 months, we tried one thing new and took a visit abroad. Nonetheless, with US President Donald Trump having simply taken workplace and the chance that I must work over the vacation, we determined to remain in Taipei this 12 months and dine out. As a result of we left the choice till simply two weeks earlier than New 12 months’s Eve, I ended up calling round 30 eating places — together with Indian, Japanese, Thai and Italian spots (Chinese language and Taiwanese eating places had been undoubtedly full) — till I may discover a desk. In the long run, we settled for a resort buffet, the place we had steak and lobster, together with fries and macaroons served with English breakfast tea and low for our New 12 months’s Eve dinner. My cousins later informed me that that they had made their reservation at a conventional Taiwanese restaurant in one other metropolis as early as October to ensure a desk.

However Trump was not the one newsmaker throughout the vacation season. DeepSeek was additionally a prime matter of dialog. Even my dad and mother, who don’t work within the tech trade, have been asking what DeepSeek is all about and what it means for Taiwan Semiconductor Manufacturing Firm and Nvidia.

At the start of the 12 months of the Snake, I visited a famend temple in my hometown of Tainan in southern Taiwan. Courting again greater than 460 years, this historic website is known for internet hosting Taiwanese President William Lai when he was on the marketing campaign path and on many different events. The temple was packed, however I used to be ready to participate in a particular ritual the place guests crossed a “fortune and luck” bridge, and I additionally acquired a sprinkling of “fortunate water”.

One other spotlight of the vacation was a Lunar New 12 months’s Day interview with Christophe Fouquet, CEO of ASML, the highest European chip gear maker. He supplied insights into AI and Japan’s efforts to rebuild its semiconductor trade. What a memorable — and busy — begin to the 12 months!

Labs as a lifeline

China has many inventive methods to get round US commerce restrictions. One less-reported methodology is thru “pilot manufacturing strains” at state-backed laboratories throughout the nation, Cheng Ting-Fang and Lauly Li of Nikkei Asia write.

These labs and universities, which regularly have higher entry to international gear than US-blacklisted chipmakers, are enjoying a key function in advancing the nation’s know-how. They’re quickly establishing pilot strains and buying machines for small-scale manufacturing, enabling them to benchmark domestically made gear and confirm designs for chipmakers and start-ups.

A notable instance is Hubei Yangtze Reminiscence Labs in Wuhan, the place many engineers from main Chinese language chipmaker YMTC, which was added to the US Entity Listing in 2022, conduct trials and take a look at samples. Comparable labs specializing in superior chip packaging and rising silicon photonics applied sciences are additionally sprouting up in cities like Ningbo and Wuxi.

Beijing’s initiative truly goes past semiconductors, with state-backed labs inspired to launch pilot manufacturing strains in areas from superior supplies and robotics to aerospace and satellites, in response to a authorities doc seen by Nikkei.

Investigations and negotiations

China has revived antitrust investigations into know-how giants Google and Nvidia and can be contemplating a brand new probe towards Intel as Beijing seems to be for leverage in talks with Trump.

China’s State Administration for Market Regulation on Tuesday introduced it had opened a contest investigation into Google, write the Monetary Instances’ Zijing Wu, Cheng Leng and Ryan McMorrow.

Two individuals conversant in the matter stated the probe would deal with dominance of the US group’s Android working system and any hurt prompted to Chinese language phonemakers, comparable to Oppo and Xiaomi, which use the software program.

Chinese language regulators, who introduced the same antitrust investigation into Nvidia in December, had been now additionally taking a look at launching a proper probe into Intel, stated two individuals conversant in the scenario. Nonetheless, the character of the probe into the US chipmaker remained unclear, one of many individuals stated, including whether or not it was formally launched might be affected by the state of US-China relations.

Beijing’s transfer to construct circumstances towards outstanding US tech firms comes as they’re more and more caught within the crossfire of rising tensions between the 2 international powers.

The Google probe, which regulators first started in 2019, had been shelved for years, however was reopened in December, stated two individuals conversant in the matter. That transfer got here simply earlier than Trump, who had campaigned on guarantees of imposing steep tariffs towards Chinese language items, was sworn in as US president.

Vacation spot: Mars?

Over the previous few years, key tech suppliers to Apple, HP and Nvidia have shifted manufacturing from China to Thailand, India, Vietnam, Mexico and Taiwan, consistent with US stress to diversify away from Asia’s largest economic system. Nonetheless, this “friend-shoring” technique is now underneath risk from Trump’s unpredictable tariff insurance policies.

In response to an evaluation by Nikkei Asia’s Lauly Li and Cheng Ting-Fang, commerce deficits with these economies have considerably widened over the previous few years on account of provide chain shifts, at the same time as America’s commerce imbalance with China has improved. As a result of Trump typically criticises commerce deficits and vows to appropriate them, investments on pleasant shores might not be as safe as they as soon as appeared, creating uncertainty and doubtlessly larger prices all through the availability chain.

Chairman TH Tung of Pegatron, a key provider to each Apple and Tesla, even joked that the one method to be actually protected from new tariffs can be to maneuver to Mars.

Loopy wealthy crypto buyers

Wealthy Asian buyers, significantly in Singapore and elsewhere in south-east Asia, are turning their eyes to cryptocurrency investments, pushed by Trump’s re-election and the rise in bitcoin’s worth, Nikkei Asia’s Dylan Loh writes. In response to a survey by Aspen Digital, extra rich people — as much as 76 per cent of respondents — had invested in digital property in Asia for 2024 in contrast with the same ballot in 2022.

This surge has led to rising competitors amongst cryptocurrency platforms and conventional monetary establishments vying for deep-pocketed, high-asset shoppers. Whereas the potential for important returns is attracting substantial funding, dangers stay, together with cryptocurrency’s excessive volatility, geopolitical uncertainties underneath Trump and a altering regulatory setting in Singapore, the place mass-marketing to retail shoppers is strongly discouraged.