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Archive for March 18th, 2021

China news; Cadence Sigrity X; DARPA initiatives; AI in process control; Northvolt-Volkswagen deal

Thursday, March 18th, 2021

News from the rapidly evolving Chinese semiconductor industry open our roundup this week. More updates span across EDA, U.S. defense research, chip manufacturing, and electric vehicles.

China semiconductors updates: Baidu, ByteDance, CSIA

Chinese Internet giant Baidu has reportedly said that its artificial intelligence chip unit Kunlun has recently completed a fundraising round, which values the business at about $2 billion. According to the same source, Baidu is considering commercializing its AI chip design capabilities, with the aim of making the Kunlun unit a standalone company.

Another important Chinese Internet player, ByteDance, has reportedly begun hiring employees for semiconductor-related job openings. The company – best known for its TikTok app – confirmed it is exploring initiatives in this area, including the development of Arm-based server chips. According to another press report, ByteDance has also established a team to explore the development of artificial intelligence chips.

Semiconductor-related initiatives from companies like Baidu and ByteDance fit into a context where the Chinese government is playing an important role. During the recent National People’s Congress, the government reportedly committed to boost spending and research in advanced chips and artificial intelligence, to reduce reliance on foreign technologies.

In fact – as noted by market research firm IC Insights – despite being the largest consuming country for ICs since 2005, China still holds a small share as a producer. Of the $143.4 billion worth of ICs sold in China in 2020, only 15.9% was produced in China. Of that amount, China-headquartered companies produced only 5.9%.

Despite this scenario of increased international competition, the U.S. and Chinese industry groups have launched a collaboration initiative. The China Semiconductor Industry Association (CSIA) reportedly said in a recent statement on its website that it will form a working group with the U.S. Semiconductor Industry Association (SIA). According to the statement, ten chip companies from each nation will meet twice a year to discuss topics ranging from export policies to supply-chain safety and encryption technology.

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