JULYASIA BUSINESS OUTLOOK8BYTEDANCE & BROADCOM TO JOINTLY DEVELOP AI PROCESSORSINDIA'S ELECTRONIC MANUFACTURING TO HIT $500B VALUATION BY 2030ByteDance, the Chinese company behind TikTok, is collaborating with Broadcom, a US chip designer, to develop a cutting-edge artificial intelligence processor. This partnership aims to ensure ByteDance has reliable access to high-performance chips amidst ongoing tensions between the US and China. The 5-nanometer chip in development is a customized ASIC (application-specific integrated circuit) designed to comply with US export regulations. According to sources familiar with the matter, the chip will be manufactured by Taiwan Semiconductor Manufacturing Company (TSMC).Since the introduction of export controls by Washington in 2022 for state-of-the-art semiconductors, there have been no publicly disclosed collaborations between Chinese and US companies focusing on chip development using 5nm or more advanced technology. Generally, agreements between the US and China in this sector involve significantly less advanced technologies.Repeated requests for comment from ByteDance and Broadcom went unanswered. TSMC chose not to comment as well. Similar to many international tech companies, ByteDance has significantly ramped up its efforts in generative AI. However, ByteDance and other Chinese firms face a much more restricted supply of AI chips compared to their global counterparts. India needs to take critical actions to transform its electronics sector from an "import-dependent, assembly-led manufacturing" model to "component-level, value-added manufacturing," according to a report by the Confederation of Indian Industry (CII).In 2023, the demand for components and sub-assemblies reached $ 45.5 billion, supporting $ 102 billion worth of electronics production. This demand is projected to rise to $ 240 billion to support $ 500 billion worth of electronics production by 2030. Priority components and sub-assemblies, including Printed Circuit Board Assemblies (PCBAs), are expected to grow at a robust CAGR of 30 percent, reaching USD 139 billion by 2030.Five priority components and sub-assemblies--batteries (lithium-ion), camera modules, mechanical parts, displays, and PCBs--are identified as high priority for India. These components accounted for 43% of the demand in 2022 and are expected to grow to $ 51.6 billion by 2030. Currently, these components have either minimal production in India or are heavily import-dependent. Sustaining this trend of importing key components is not feasible for India. The PCBA segment, in particular, is highlighted as having high potential for domestic production, with demand expected to grow by 30 percent, leading to a demand of around $ 87.46 billion by 2030. NEWSROOM
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