(AOF) – US officials have told AMD that the artificial intelligence chip the company designed for the Chinese market is too powerful to be sold without a license from the Commerce Department, Bloomberg reports. The United States has restricted the export of advanced semiconductors and semiconductor manufacturing equipment to curb China’s technological and military advancements.
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Growing market and price tensions
According to SIA, global chip sales stood at $151.7 billion in the first quarter of 2022, an increase of 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly exceed supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good room for maneuver and benefit from reinforced negotiating power. However, wage increases and component prices could weigh on future performance.
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The strategic niche of foldable smartphones
Chinese smartphone manufacturer Honor, now independent from Huawei, recently launched its latest foldable model, already available in China. Leader in its national market, Honor wants to make Europe its second market. It is counting on foldable smartphones to achieve this, while specialists predict that this market segment should represent 39% of the premium market in 2027. Honor, which believes that these smartphones should become market standards, wants to take its place from Samsung of world leader. In Western Europe, Honor entered the global top 5 in July 2023, becoming the fourth player in the market behind Samsung, Apple, and its compatriot Xiaomi, according to GfK.
Sector sheet – Electronics
Large TVs booming
If specialists expected less appetite for large televisions after the health crisis, this is clearly not the case. The IFA highlighted the development of this equipment, with screens that can reach up to 120 inches. This market segment should see its activity driven by next summer’s Olympic Games. Leader for seventeen years in the television market, Samsung offers the most complete technological range. Large televisions are rather standard products for the Korean giant. As for the Chinese TCL, which took second place in the world market from LG, it is banking on the accessibility of its products, with prices significantly lower than those charged by Samsung. The group achieved growth of nearly 68% between the first half of 2021 and 2022 in the segment over 65 inches. Over one year, the average size of screens marketed by TCL increased from 46.3 to 49.9 inches. Another Chinese player, Hisense, is also seeking to gain market share in this niche.