It looks like Sony is joining Xbox in the development of a standalone handheld gaming console to compete with the likes of the Nintendo Switch and Valve Steam Deck. According to a Bloomberg's insider sources, a Sony gaming handheld is already in development, and would be designed with Sony PlayStation 5 games in mind. Unlike the PlayStation Portal, the future gaming console wouldn't be dependent on game streaming and would, instead, run games locally, meaning it would likely need significantly more powerful hardware than the Portal has. This would be Sony's first true foray into the portable gaming console market since the likes of the PS Vita, which is largely considered to be a commercial disappointment.

Sony isn't the first of the console giants looking into creating its own gaming handheld after Nintendo's Switch. Obviously, Valve, traditionally more of a software company, already has the immensely popular Steam Deck, but we also recently reported that Microsoft is in the early stages of developing its own handheld gaming console. Details on the future Sony gaming handheld are scant, and there has been no official word from Sony about the console. That said, it wouldn't be surprising to see it equipped with an AMD APU, similar to the likes of the Steam Deck and the PS5, since Sony already has history and a commercial relationship with AMD hardware.

Intel Altera's FPGA unit is attracting a lot of attention in the semiconductor industry according to a recent report by Bloomberg, Lattice Semiconductor emerging as a potential buyer for the entire division. Bloomberg reports that Lattice actively works with advisers and seeks private-sector backing to support their bid. However, Intel's preference appears to be leaning toward selling only a small portion of its Altera shares instead of selling everything and this can be a decisive factor in upcoming negotiations. The potential sale has attracted interest from many outside Lattice Semiconductor, including major private equity firms such as Francisco Partners, Bain Capital, and Silver Lake Management. Qualcomm has also expressed interest in acquiring parts of Intel's design business.

Bloomberg also reports that selling just a portion of Altera's shares would likely require complex financial arrangements, while private equity firms are considering investing about $3 billion through instruments. This could result in Intel's valuation being lower than the original purchase price. Intel CEO Pat Gelsinger has indicated plans to close the Altera transaction in early 2024, with the company valuing the nearly $16.7 billion Intel paid for Altera in 2015 at approximately $17 billion. Lattice's market value of $7.48 billion is certainly smaller and can challenge Lattice's ambitions for complete control of Altera. The Intel board discussed Altera's future last week and prefers to sell only a minority stake, with a decision expected soon.

Microsoft has long been rumored to be working on a gaming handheld to compete with the likes of Valve's Steam Deck and the ASUS ROG Ally and Lenovo Legion Go, but all we've had to go on until now is unfounded rumors and leaks. Now, Phil Spencer, head of Microsoft Gaming, has confirmed that the software giant is actively working on a Steam Deck challenger, although details are scant, and the timeline is unclear at best.

In a recent interview with Bloomberg, Spencer confirmed that Microsoft is working on an Xbox handheld, although he was very careful to not overpromise or provide any firm release dates, going so far as to confirm that an Xbox handheld is still years away from release. Spencer reiterated in the review that Microsoft was still looking to grow its presence in the gaming industry, which is one of the company's motivations for getting into the gaming handheld market, in the first place. He also confirmed that Microsoft will be pursuing further mergers and acquisitions in the future as part of its gaming push—a move that might not be looked upon favorably by many gamers and regulatory bodies.

Despite the recent successful launch of Dragon Ball Sparking! Zero, which sold 3 million units in 24 hours, it looks as though Bandai Namco is pressuring 200 of its 1,300 employees in Japan to voluntarily resign in what is being called a short-sighted move to boost profits. According to a recent Bloomberg report, the Japanese game developer is skirting strict labor laws in Japan by removing all work responsibilities from 200 of its employees. Allegedly, nearly 100 of those staff being pressured into resignation have already left the company. Along with the layoffs, Bandai Namco has apparently cancelled three new games that were in development, namely, new Dragon Ball, One Piece, and Naruto games.

This shift at Bandai Namco comes in spite of a booming Japanese game industry, which will reportedly grow by 6.66% annually until 2029. Game Developer attributes Bandai Namco's coerced "voluntary" layoffs to the losses generated by the consistently underwhelming performance of the company's online division, which supposedly generated a net loss of an equivalent to $51.35 million in the last fiscal year. If our recent reporting is any indication, there seems to be a shift in the overall gaming market, in which younger audiences predominantly seem to prefer multiplayer (specifically PvP) games. Second to PvP is single-player gaming, which was consistently the preferred game type for more than 30% of gamers, regardless of age groups. This latter niche is seemingly where Bandai Namco's strengths and audience seem to lie, along with many of its other Japanese game studio competitors, like From Software, Nintendo, and Capcom.

Intel could get a substantial multibillion-dollar investment from Apollo Global Management Inc., according to a recent report by Bloomberg which relies on inside information from people familiar with the matter. It is said that Apollo is willing to invest up to $5 billion in Intel, and it is worth noting that this came up just after rumors about Qualcomm's intentions for a friendly takeover of Intel emerged last week. Intel and Apollo representatives have declined to comment thus far, however, it is said that Intel executives have been weighing Apollo's proposal.

Apollo is not a newcomer to the chipmaking industry; in 2023, the New York-based company made a $900 million investment in Western Digital buying convertible preferred stock. As for Intel and Apollo, they are no strangers to each other. Just this past June, Intel agreed to sell a stake in a joint venture that controls Intel's Fab 34 plant in Ireland to Apollo for $11 billion. While rumors come and go, one thing is for sure: Intel's short-term future relies on the success of its upcoming products like Arrow Lake desktop architecture to be released on October 24, and its foundry business division.

According to sources close to Bloomberg, Intel plans to cut 10,000 jobs from its global workforce. The news comes amid heavy pressure on the semiconductor giant, which has been on a steady decline over the years, while other industry rivals like AMD and NVIDIA have been rising and taking market share in various areas from Intel. It is reported that Intel currently has 110,000 employees globally, and reducing the workforce by 10,000 would net Intel around 100,000 global employees left. These figures exclude employees from spun-out units like Altera FPGA company, which is under Intel's ownership. Intel's aim to reduce its workforce is expected to come with a significant cost benefit to the company, with projected savings of $10 billion by 2025.

The news isn't yet official, but it is expected to see the light of the day as soon as this week. As Intel's CEO Pat Gelsinger invests heavily into the fab construction and development of next-generation products, there have been a few notes that Intel would have to overcome some challenges shortly to reach its long-term goals like more advanced silicon manufacturing facilities and new products for AI/HPC and client sector. One of those short-term measures is reducing the workforce to cut down expenses. Intel has reduced its workforce before. In 2022, the company announced reduced spending in non-critical areas and reducing the workforce, and in 2023, cut the workforce by 5% to 124,800 employees last year, only to be left with 110,000 employees in 2024.

The recent launch of Copilot+ PCs, a collaboration between Microsoft and Qualcomm, has taken an unexpected turn in the market. While these devices were promoted for their artificial intelligence capabilities, a Bloomberg report reveals that consumers are primarily drawn to them for their impressive battery life. The Snapdragon X-powered Copilot+ PCs have made a significant impact, securing 20% of global PC sales during their launch week. However, industry analyst Avi Greengart points out that the extended battery life, not the AI features, is driving these sales. Microsoft introduced three AI-powered features exclusive to these PCs: Cocreator, Windows Studio Effects, and Live Captions with Translation. Despite these innovations, many users find these features non-essential for daily use. The delay of the anticipated Recall feature due to privacy concerns has further dampened enthusiasm for the AI aspects of these devices.

The slow reception of on-device AI capabilities extends beyond consumer preferences to the software industry. Major companies like Adobe, Salesforce, and SentinelOne declined Microsoft's request to optimize their apps for the new hardware, citing resource constraints and the limited market share of AI-capable PCs. Gregor Steward, SentinelOne's VP for AI, suggests it could take years before AI PCs are widespread enough to justify app optimization. Analysts project that by 2028, only 40% of new computers will be AI-capable. Despite these challenges, Qualcomm remains optimistic about the future of AI PCs. While the concept may currently be more on the marketing side, the introduction of Arm-based Windows laptops offers a welcome alternative to the Intel-AMD duopoly. As the technology evolves and adoption increases, on-device AI features may become more prevalent and useful. The imminent arrival of AMD Ryzen AI 300 series and Intel Lunar Lake chips promises to expand the Copilot+ PC space further. For now, however, it appears that superior battery life remains the primary selling point for consumers.

NVIDIA is eying a comeback to the client processor business, reveals a Bloomberg interview with the CEOs of NVIDIA and Dell. For NVIDIA, all it takes is a simple driver update that exposes every GeForce GPU with tensor cores as an NPU to Windows 11, with translation layers to get popular client AI apps to work with TensorRT. But that would need you to have a discrete NVIDIA GPU. What about the vast market of Windows AI PCs powered by the likes of Qualcomm, Intel, and AMD, who each sell 15 W-class processors with integrated NPUs capable of 50 AI TOPS, which is all that Copilot+ needs? NVIDIA held an Arm license for decades now, and makes Arm-based CPUs to this day, with the NVIDIA Grace, however, that is a large server processor meant for its AI GPU servers.

NVIDIA already made client processors under the Tegra brand targeting smartphones, which it winded down last decade. It's since been making Drive PX processors for its automotive self-driving hardware division; and of course there's Grace. NVIDIA hinted that it might have a client CPU for the AI PC market in 2025. In the interview Bloomberg asked NVIDIA CEO Jensen Huang a pointed question on whether NVIDIA has a place in the AI PC market. Dell CEO Michael Dell, who was also in the interview, interjected "come back next year," to which Jensen affirmed "exactly." Dell would be in a front-and-center position to know if NVIDIA is working on a new PC processor for launch in 2025, and Jensen's nod almost confirms this

To bring cutting-edge artificial intelligence capabilities to its flagship product, Apple is said to be finalizing a deal with OpenAI to integrate the ChatGPT technology into the upcoming iOS 18 for iPhones. According to Bloomberg, multiple sources report that after months of negotiations, the two tech giants are putting the finishing touches on a partnership that would be an important moment for consumer AI. However, OpenAI may not be Apple's only AI ally. The company has also reportedly been in talks with Google over licensing the Gemini chatbot, though no known agreement has been reached yet. The rare team-up between the fiercely competitive firms underscores the intense focus on AI integration across the industry.

Apple's strategic moves are a clear indication of its recognition of the transformative potential of advanced AI capabilities for the iPhone experience. The integration of OpenAI's language model could empower Siri to understand and respond to complex voice queries with deep contextual awareness. This could revolutionize the way Apple's customers interact with devices, offering hope for a more intuitive and advanced iPhone experience. Potential Gemini integration opens up another realm of possibilities around Google's image and multimodal AI capabilities. Future iPhones may be able to analyze and describe visual scenes, annotate images, generate custom imagery from natural language prompts, and even synthesize audio using AI vocals - all within a conversational interface. As the AI arms race intensifies, Apple wants to position itself at the forefront through these partnerships.

While everyone has been focused on shipping an AI-enhanced product recently, one tech giant didn't appear to be bothered- Apple. However, according to Mark Gurman from Bloomberg, Apple is readying an overhaul of its Apple Silicon M-series chips to embed AI processing capabilities at the processor level. As the report indicates, Apple is preparing an update for late 2024 and early 2025 with the M4 series of chips, which will reportedly feature AI processing units similar to those found in other commercial chips. There should be three levels of the M4 series, with the entry-level M4 codenamed Donan, the mid-level M4 chip codenamed Brava, and the high-end M4 chip codenamed Hydra.

Sales of Apple Macs peaked in 2022; the following year was a sharp decline, and sales have continued to be flat since. The new AI PCs for Windows-based systems have been generating hype from all major vendors, hoping to introduce AI features to end users. However, Apple wants to be part of the revolution, and the company has already scheduled the World Wide Developer Conference for June 10th. At WWDC this year, Apple is supposed to show a suite of AI-powered solutions to enable better user experience and increase productivity. With M4 chips getting AI enhancement, the WWDC announcements will get extra hardware accelerations. However, we must wait for the exact announcements before making further assumptions.

Embracer Group AB, a highly controversial Swedish gaming company, has started to sell off a wider portfolio of internal development studios—Jason Schreier (via Bloomberg) reported on speculative details late last month, but some of the suggested/initial numbers have changed since then. Yesterday, web sleuths noticed that Saber Interactive's official site no longer sports any references to Embracer. The latter has just announced—to investors—that Saber is being sold to Beacon Interactive (a private investment collective). Interestingly, this organization was started by Matthew Karch; a Saber Interactive co-founder. Their agreement signals Embracer's withdrawal from Russian territories—this morning's financial call revealed that this decision will assist in the reduction of the company's "geopolitical risk."

The latest announcement did not mention Gearbox Entertainment—Embracer will retain ownership of several studios, but the Borderlands developer is expected to be sold off in the near future. Insiders reckon that Embracer leadership was weighing up options as far back as last September, following a period of financial insecurity. Returning to the present day—Lars Wingefors, co-founder and Group CEO of Embracer stated: "I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us. This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership. At the same time, we keep key companies, valuable IPs and future publishing rights. Cash flow is immediately improved, and we remain committed to reducing net debt."

Lee Kang-Wook, Vice President of Research and Development at SK Hynix, has discussed the increased importance of advanced chip packaging with Bloomberg News. In an interview with the media company's business section, Lee referred to a tradition of prioritizing the design and fabrication of chips: "the first 50 years of the semiconductor industry has been about the front-end." He believes that the latter half of production processes will take precedence in the future: "...but the next 50 years is going to be all about the back-end." He outlined a "more than $1 billion" investment into South Korean facilities—his department is hoping to "improve the final steps" of chip manufacturing.

SK Hynix's Head of Packaging Development pioneered a novel method of packaging the third generation of high bandwidth technology (HBM2E)—that innovation secured NVIDIA as a high-profile and long term customer. Demand for Team Green's AI GPUs has boosted the significance of HBM technologies—Micron and Samsung are attempting to play catch up with new designs. South Korea's leading memory supplier is hoping to stay ahead in the next-gen HBM contest—supposedly 12-layer fifth generation samples have been submitted to NVIDIA for approval. SK Hynix's Vice President recently revealed that HBM production volumes for 2024 have sold out—currently company leadership is considering the next steps for market dominance in 2025. The majority of the firm's newly announced $1 billion budget will be spent on the advancement of MR-MUF and TSV technologies, according to their R&D chief.

The US government is reported to be preparing a very healthy $3.5 billion investment in Intel Corporation—a mid-week published Bloomberg article proposes that the White House has authored a new "fast-moving spending bill." Congressional aides believe that Team Blue—upon official approval/signing off of funds—will be tasked with the production of advanced semiconductors for military and intelligence programs. Bloomberg posits that the resources will be sourced from a "Secure Enclave" project, seemingly linking to a wider tranche of funds within the US government's CHIPS and Science Act. The agreement/contract is expected to run over a period of three years. According to Bloomberg: "the Senate is expected to pass the legislation by a Saturday (March 9) deadline."

Reports from last November suggested that Intel leadership and US government representatives had engaged in negotiations regarding funds for military and intelligence chip applications—the construction costs for new manufacturing facilities were estimated to be in the $3 billion to $4 billion range. A Commerce Department statement was submitted to Bloomberg, but they only commented on an overall $10 billion budget: "We are still reviewing the effect of the appropriations text on the program...(we look) forward to continuing to work with Congress on implementing the Chips and Science Act in a manner the promotes our economic and national security." TSMC, Micron and Samsung are expected to receive "multi-billion-dollar awards" in the near future—these multinational corporations will assist in a bolstering of North American chip manufacturing capabilities.

According to the latest report from Bloomberg, AMD has hit a roadblock in offering its top-of-the-line AI accelerator in the Chinese market. The newest AI chip is called Instinct MI309, a lower-performance Instinct MI300 variant tailored to meet the latest US export rules for selling advanced chips to China-based entities. However, the Instinct MI309 still appears too powerful to gain unconditional approval from the US Department of Commerce, leaving AMD in need of an export license. Originally, the US Department of Commerce made a rule: Total Processing Performance (TPP) score should not exceed 4800, effectively capping AI performance at 600 FP8 TFLOPS. This rule ensures that processors with slightly lower performance may still be sold to Chinese customers, provided their performance density (PD) is sufficiently low.

However, AMD's latest creation, Instinct MI309, is everything but slow. Based on the powerful Instinct MI300, AMD has not managed to bring it down to acceptable levels to acquire a US export license from the Department of Commerce. It is still unknown which Chinese customer was trying to acquire AMD's Instinct MI309; however, it could be one of the Chinese AI labs trying to get ahold of more training hardware for their domestic models. NVIDIA has employed a similar tactic, selling A800 and H800 chips to China, until the US also ended the export of these chips to China. AI labs located in China can only use domestic hardware, including accelerators from Alibaba, Huawei, and Baidu. Cloud services hosting GPUs in US can still be accessed by Chinese companies, but that is currently under US regulators watchlist.

Tech giant Microsoft and Paris-based startup Mistral AI, an innovator in open-source AI model development, have announced a new multi-year partnership to accelerate AI innovation and expand access to Mistral's state-of-the-art models. The collaboration will leverage Azure's cutting-edge AI infrastructure to propel Mistral's research and bring its innovations to more customers globally. The partnership focuses on three core areas. First, Microsoft will provide Mistral with Azure AI supercomputing infrastructure to power advanced AI training and inference for Mistral's flagship models like Mistral-Large. Second, the companies will collaborate on AI research and development to push AI model's boundaries. And third, Azure's enterprise capabilities will give Mistral additional opportunities to promote, sell, and distribute their models to Microsoft customers worldwide.

However, an investment in a European startup can not go smoothly without the constant eyesight of the European Union authorities and regulators to oversee the deal. According to Bloomberg, an EU spokesperson on Tuesday claimed that the EU regulators will perform an analysis of Microsoft's investment into Mistral after receiving a copy of the agreement between the two parties. While there is no formal investigation yet, if EU regulators continue to probe Microsoft's deal and intentions, they could launch a complete formal investigation that could lead to the termination of Microsoft's plans. Of course, the formal investigation is still on hold, but investing in EU startups might become unfeasible for American tech giants if the EU regulators continue to push the scrutiny of every investment made in companies based on EU soil.

Nintendo has published its quarterly financial results for the period ending March 31 (2024)—the numbers indicate that their trusty Switch hybrid console has continued to sell surprisingly well, despite industry watchdogs anticipating a sharp decline in late 2023. A Bloomberg Japan report has extracted crucial information from an important corporate investor call—Shuntaro Furukawa, the current company president, announced another sales milestone. The Switch has reached 139.36 million units sold (as of 31st December 2023) since its original rollout back in March 2017—it has the potential to outsell Sony's classic PlayStation 2 home console. Nintendo's CEO adhered to his company's strict script and did not address the big red elephant in the (conference) room—the highly anticipated Switch successor is an industry open secret—instead focusing on the current iteration being their "main business" going into FY2024-2025.

Despite recent "better than expected" financial figures, the Nintendo Switch is on a sales decline (going back several years)—the gaming community expected improved hardware to arrive at some point before 2024, but the House of Mario is in no rush to take on current generation Sony and Microsoft home console models. Furukawa-san stated that Nintendo will discuss its plans for the financial future during a May earnings briefing—this is largely in line with past declarations, the "Switch 2" is not arriving before Spring 2024. The latest reports suggest that the next Nintendo Direct presentation is scheduled for next week—perhaps February 15. Microsoft's Phil Spencer has teased a major Xbox "business update" announcement within the same timeframe.

AI is reshaping industries, society and the "very fabric of innovation"—and Canada is poised to play a key role in this global transformation, said NVIDIA founder and CEO Jensen Huang during a fireside chat with leaders from across Canada's thriving AI ecosystem. "Canada, as you know, even though you're so humble, you might not acknowledge it, is the epicenter of the invention of modern AI," Huang told an audience of more than 400 from academia, industry and government gathered Thursday in Toronto.

In a pivotal development, Canada's Industry Minister François-Philippe Champagne shared Friday on X, formerly known as Twitter, that Canada has signed a letter of intent with NVIDIA. Nations including Canada, France, India and Japan are discussing the importance of investing in "sovereign AI capabilities," Huang said in an interview with Bloomberg Television in Canada. Such efforts promise to enhance domestic computing capabilities, turbocharging local economies and unlocking local talent. "Their natural resource, data, should be refined and produced for their country. The recognition of sovereign AI capabilities is global," Huang told Bloomberg.

Bloomberg broke the news about Raspberry Pi leadership's lofty ambitions earlier this week—the news outlet reported on the UK-based "personal computer maker" appointing "bankers at Peel Hunt and Jefferies to prepare a London initial public offering (IPO)." In their opinion: "a listing that would be a win for the UK capital after an exodus of companies to the US." The Raspberry Pi 5 single-board computer launched last autumn, and proved to be a hit with hardware enthusiasts thanks to improved silicon delivering significant CPU and GPU uplifts (over Pi 4), and an in-house controller chip granting a fancier interface feature set. The Raspberry Pi Limited company is enjoying its many success stories, including an estimated valuation of ~$560 million and strategic investments courtesy of long-term partner, ARM Ltd.

Eben Upton, CEO of Raspberry Pi (Trading) Ltd., responded to a Tom's Hardware query regarding the Bloomberg news piece. He confirmed that banking firm "Peel Hunt and Jefferies" is involved in the preparation of an upcoming IPO, but nothing has been set in concrete. They expect to proceed: "when the market is ready. Right now there is no target valuation or a firm date." Upton discussed his firm's recent motivations: "We believe that London is the natural listing location for a company like Raspberry Pi, and that it wouldn't be an impediment to attracting US (or other international) investment, provided we're prepared to do the work to educate foreign investors." The listing is not expected to affect normal day-to-day operations, although he does not rule out the potential for growth: "If we do IPO at some point, I don't anticipate any changes to what Raspberry Pi Ltd does. Regardless, we're going to keep doing good engineering, designing the sorts of products we'd like to buy ourselves, and selling them to people (and companies) like us. Of course the Foundation would be able to use any money raised to do what it does at an even larger scale, which would be a great outcome."

Earlier today, Bloomberg published a report that covers expert analysis of the Nintendo Switch successor's alleged display credentials. The media outlet cites claims made by Hiroshi Hayase—Research Manager (of Small Medium Displays) at Omdia. The analyst proposes that Nintendo's hardware design team has selected an eight inch LCD screen for their "Switch 2" games console, he also believes that the launch model is due at some point this year. Hayase-san has gleaned information from supply chain insiders—the Switch successor could double shipments of entertainment-oriented "small displays." Sharp Corporation is believed to be Nintendo's main supplier, according to interpretations of deliberately vague company statements.

Nintendo's 2017 launch model sported a 6.2-inch LCD display, a more portable Lite version arrived in 2019 with a 5.5-inch display, and a larger 7-inch OLED iteration was released back in 2021. Gaming communities have long speculated about an abandoned "Switch Pro" model—many believe that the project was dropped due to ongoing supply chain problems during lockdown periods. The Switch OLED (plus its modernized dock station) is believed to be an interim gap fill. Nintendo has revealed little about their next generation gaming console, but development partners have been making some noise lately. According to a 4Gamer.net interview article, workers at Japanese studios (CAPCOM, Koei Tecmo, and Spike Chunsoft) have expressed major excitement about the upcoming model's prospects. GDC's 2024 State of the Game Industry report revealed that 240 respondents have admitted that they are actively working on Switch 2 games software.

OpenAI CEO, Sam Altman, had a turbulent winter 2023 career moment, but appears to be going all in with his company's future interests. A Bloomberg report suggests that the tech visionary has initiated a major fundraising initiative for the construction of OpenAI-specific semiconductor production plants. The AI evangelist reckons that his industry will become prevalent enough to demand a dedicated network of manufacturing facilities—the U.S. based artificial intelligence (AI) research organization is (reportedly) exploring custom artificial intelligence chip designs. Proprietary AI-focused GPUs and accelerators are not novelties at this stage in time—many top tech companies rely on NVIDIA solutions, but are keen to deploy custom-built hardware in the near future.

OpenAI's popular ChatGPT system is reliant on NVIDIA H100 and A100 GPUs, but tailor-made alternatives seem to be the desired route for Altman & Co. The "on their own terms" pathway seemingly skips an expected/traditional chip manufacturing process—the big foundries could struggle to keep up with demand for AI-oriented silicon. G42 (an Abu Dhabi-based AI development holding company) and SoftBank Group are mentioned as prime investment partners in OpenAI's fledgling scheme—Bloomberg proposes that Altman's team is negotiating a $8 to 10 billion deal with top brass at G42. OpenAI's planned creation of its own foundry network is certainly a lofty and costly goal—the report does not specify whether existing facilities will be purchased and overhauled, or new plants being constructed entirely from scratch.

The Chinese semiconductor industry is advancing, and interestingly, it is growing rapidly under sanctions, even with the blacklisting of companies by the US government. China's semiconductor industry is mainly represented by companies like Semiconductor Manufacturing International Corp (SMIC) and Huawei Technologies, who are leading the investment and progress in both chip manufacturing and chip design. According to the latest interview with Bloomberg, former TSMC Vice President Burn J. Lin said that the US government and its sanctions can not stop the advancement of Chinese semiconductor companies. Currently, Lin notes that SMIC and Huawei can use older machinery to produce more advanced chips.

Even so, SMIC could progress to 5 nm technology using existing equipment, particularly with scanners and other machinery from ASML. Development under sanctions would also force China to experiment with new materials and other chip packaging techniques that yield higher performance targets. SMIC has already developed a 7 nm semiconductor manufacturing node, which Huawei used for its latest Mate 60 Pro smartphone, based on Huawei's custom HiSilicon Kirin 9000S chip. Similarly, the transition is expected to happen to the 5 nm node as well, and it is only a matter of time before we see other nodes appear. "It is just not possible for the US to completely prevent China from improving its chip technology," noted Burn J. Lin.

Haruhiro Tsujimoto, Capcom's chief operating officer, spoke to Bloomberg during last week's Tokyo Game Show. The discussion touched upon several subject matters, but the key takeaway was his refusal to accept any outside bid for complete ownership of Capcom's development and publishing arms. Sony and Microsoft have been hoovering up studios over the past three years, but the COO stated that any approach or bid for Capcom would be "gracefully declined." Tsujimoto was presented with a hypothetical situation: "How would Capcom respond to an acquisition offer from Microsoft?" A continuation of their existing relationship was his preference going forward: "I believe it would be better if we were equal partners."

He revealed that offers were made in the past: "There was a time (when) we were a target." Capcom desires internal "organic growth," rather than rapid expansion through acquisitions. It will occasionally rely on the third parties to develop games: "I also believe we can utilize external partners...but we have no intention of acquiring companies." Returning to the subject of growth—Capcom has not yet implemented a major price hike for its AAA titles, unlike other (rival) publishers—gamers are now paying up to $70 for (base/standard edition) big-budget interactive experiences on the latest-gen consoles and PCs. The house of Resident Evil and Street Fighter is seemingly ready to follow suit—as reported by Nikkei; Tsujimoto-san stated: "Development costs now are about 100 times more than they were during the Famicom era, but software prices haven't gone up to that extent...There's also a need to raise wages in order to attract talent. Seeing as wages are rising in the industry as a whole, I think raising unit prices is a healthy business model."

Insiders claim that a potential merger between Western Digital and Kioxia is closer to happening—following longer than anticipated negotiation between involved parties, including Bain Capital and Toshiba. Technicalities have prolonged proceedings—an August 2023 sign off date was expected—but Kioxia Holdings' lenders seem motivated to get everything over the finish line. According to a Bloomberg report, at least three Japanese banks are ready to submit a commitment letter (next month) for the refinancing of ¥2 trillion ($14 billion) in loans—anonymous sources suggest that Sumitomo Mitsui Financial Group, Mizuho Financial Group and Mitsubishi UFJ Financial Group are involved. These organizations hope to fund the merger with Western Digital's flash memory business.

Representatives for Western Digital, Kioxia, Bain Capital and (so far named) Japanese banks have declined to provide statements in response to the Bloomberg report. Allegedly, part of the loan will be used to pay special dividends to Kioxia's shareholders. A Reuters summary of said conditions reads: "Under the terms of the deal being negotiated, Western Digital will hold about 50.5% of the combined company with the remaining 49.5% held by Kioxia...Of the 2 trillion yen loan, 400 billion yen will likely be funded through loan commitments and the Development Bank of Japan will provide a loan of 300 billion yen. The rest will likely be equally split between the three megabanks." Bloomberg's insiders believe that Western Digital's hard drive business is not being offered up.

Arm's impending IPO, valued between $60 billion and $70 billion, has reportedly garnered substantial backing from industry giants such as Apple, NVIDIA, Intel, and Samsung, as per sources cited in a Bloomberg report. This much-anticipated public offering serves as a litmus test for investor interest in new chip-related stocks and could reshape the tech industry landscape. While the information remains unofficial, it underscores the significant support Arm has received from major licensees, including Apple, AMD, Cadence, Intel, Google, NVIDIA, Samsung, and Synopsys, with each potentially contributing between $25 million and $100 million, a testament to their confidence in Arm's future prospects. Originally, SoftBank aimed to raise $8 billion to $10 billion through the IPO, but a strategic shift to retain a larger Arm stake revised the target to $5 billion to $7 billion.

This IPO's success holds paramount importance for SoftBank and its CEO, Masayoshi Son, particularly following the Vision Fund's substantial $30 billion loss in the previous fiscal year. Masayoshi Son is reportedly committed to maintaining significant control over Arm, planning to release no more than 10% of the company's shares during this initial phase, aligning with SoftBank's recent acquisition of the Vision Fund's Arm stake and reinforcing their belief in Arm's long-term potential. Arm has enlisted renowned global financial institutions such as Barclays, Goldman Sachs Group, JPMorgan Chase & Co., and Mizuho Financial Group to prepare for the IPO, highlighting the widespread interest in the offering and the anticipated benefits for these financial institutions.

According to the report coming from Bloomberg, European Union has approved as much as 8.1 billion Euros (about 8.6 billion USD) for research of advanced semiconductors. Accompanied by the 13.7 billion Euros in private funds, the total investment for boosting domestic semiconductor manufacturing in the EU is almost 22 billion Euros. As part of the European CHIPS Act, the project aims to develop Europe as the world's semiconductor powerhouse, with as much as 20% of all semiconductors produced in the EU by 2030. This ambitious goal is backed by state subsidies, as well as investors creating private pools of funds to aid companies in creating semiconductor manufacturing facilities on European soil.

This Important Project of Common European Interest (IPCEI) on Microelectronics and Communication Technologies is an essential step for Europe's semiconductor independence. Internal Market Commissioner Thierry Breton noted, "In a geopolitical context of de-risking, Europe is taking its destiny into its own hands. By mastering the most advanced semiconductors, the EU will become an industrial powerhouse in markets of the future." Companies like Intel, Infineon, STMicroelectronics, GlobalFoundries, and Wolfspeed announced European investments, with TSMC considering a production facility in Germany. German Economy Minister Robert Habeck has noted that Germany has 31 projects in 11 regions, adding, "We can thus increase resilience across Europe in this important field and secure value creation and jobs."