Tech Roundup: White House’s Squeeze on Chip Exports Is Turning Into a Win for Huawei, Xiaomi Raises EV Production Target

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Staff inspect cars produced by Xiaomi in Beijing on March 25. Photo: VCG

Welcome to the Daily Tech Roundup — a briefing of the top technology news making headlines in China and the rest of Asia.

White House’s squeeze on Nvidia chip exports is turning into a win for Huawei

The lower-end artificial intelligence (AI) chips that Nvidia Corp. is exporting to China in order to skirt U.S. export controls are so underwhelming that local tech firms are turning to Huawei Technologies Co. Ltd.

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**Nvidia vs. Huawei**: Nvidia's lower-end AI chips are prompting Chinese tech firms to switch to Huawei’s chips, although the migration is challenging.
**Xiaomi’s EV Goals**: Xiaomi aims to deliver 120,000 SU7 electric vehicles this year, raising its target to compete with Tesla, amid its highest quarterly revenue growth in two years.
**Battery Manufacturing Moves**: Two Chinese battery parts firms, Capchem and Kedali, plan to build factories in the U.S. as tariffs increase.

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Who’s Who

Nvidia Corp.: Nvidia Corp. is exporting lower-end AI chips to China to circumvent U.S. export controls. These chips are less powerful, prompting Chinese tech firms to switch to Huawei Technologies for their AI chip needs. This switch is challenging due to the complexity of migrating from Nvidia's AI ecosystem.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is benefiting from increased demand for AI chips in China as local tech firms switch from Nvidia due to U.S. export controls. Despite challenges in migrating from Nvidia's AI ecosystem, desperation for AI chips to train large language models is driving this shift.

Xiaomi Corp.: Xiaomi Corp. aims to deliver 120,000 SU7 electric vehicles (EVs) this year, raising its target for the EV. President Lu Weibing announced this after Xiaomi reported a 27% revenue increase to 75.51 billion yuan ($10.5 billion) for the March quarter. This growth reflects improved smartphone sales and indicates confidence in Xiaomi's $10 billion investment in the EV market.

Tesla Inc.: Tesla Inc. is being targeted by Xiaomi Corp. with its SU7 electric vehicle (EV). Xiaomi aims to deliver 120,000 units of the SU7 this year, up from an expected 100,000, indicating confidence in competing with Tesla in the EV market.

Boeing: Boeing has suspended aircraft deliveries to China while the country's civil aviation regulator reviews the batteries powering the cockpit voice recorder. The company is coordinating with Chinese clients on delivery timing, pending the review's completion. The system had prior certifications from the FAA and EASA.

Shenzhen Capchem Technology Co. Ltd.: Shenzhen Capchem Technology Co. Ltd., through its subsidiary Capchem Technology USA Inc., plans to invest $350 million in Louisiana to build an integrated carbonate solvent and lithium-ion battery electrolyte manufacturing facility. The project has received local government subsidies, including a 10-year $71.3 million tax break and infrastructure construction subsidies.

Kedali Industry Co. Ltd.: Shenzhen-based Kedali Industry Co. Ltd. is a manufacturer of precision structural parts for power batteries. The company recently announced plans to invest $49 million to build a plant in Indiana, USA, in response to rising tariffs on Chinese-made batteries and parts.

Samsung Electronics Co. Ltd.: The article mentions that South Korea has unveiled a $19 billion package of incentives to bolster its chip sector, benefiting companies like Samsung Electronics Co. Ltd. This financial support and tax incentives aim to help Samsung and SK Hynix Inc. stay competitive in the chip industry.

SK Hynix Inc.: SK Hynix Inc. stands to benefit from South Korea's unveiled $19 billion incentive package aimed at bolstering its chip sector. This comprehensive support includes significant financial backing and tax incentives, helping companies like SK Hynix remain competitive in the aggressively evolving technology landscape.

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