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Zhaoxin's KX-7000 8-Core Processor Tested in Detail, Bested by 7 Year Old Core i3

PC Watch recently got hands-on with Shanghai Zhaoxin's latest desktop processor for some in depth testing and published a less than optimistic review comparing it to both the previous generation KX-U6780A and Intel's equally clocked budget quad-core offering from 2017, the 3.6 GHz Core i3-8100. Though Zhaoxin's latest could muscle its way through some multithreaded tests such as Cinebench R23 due to having twice the core count, the single core performance showed to be nearly half that of the i3 in everything from synthetic tests to gaming.

PC Watch tested with the Dragon Quest X Benchmark, a DX9.0c title, to put the spotlight on single core gaming performance even in older games as well as with Final Fantasy XIV running the latest Golden Legacy benchmark released back in April of this year to show off more modern multithreaded gaming. With AMD's RX 6400 handling graphics at 1080p the KX-7000/8 scored around 60% of the i3-8100 in Dragon Quest X, and in Final Fantasy XIV it scored 90% of the i3. The result in Final Fantasy XIV was considered, "somewhat comfortable" for gameplay but still less than optimal. As a comparison point for a modern budget gaming PC option the Ryzen 5 5600G was also included in testing, where in Final Fantasy XIV it was 30% ahead of the KX-7000/8. PC Watch attempted to put the integrated ZX-C1190 to work in games but found that despite supporting modern APIs and features, the performance was no match for the competition.
KX-7000 CPU-Z - Credit: PC Watch

PC Refresh Cycle and Tablets in Emerging Markets Expected to Spur Demand in Coming Quarters, Report

A new forecast from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker shows shipments of personal computing devices are expected to grow 2.6% year over year in 2024 to 398.9 million units. The traditional PC market will remain flat in 2024 with 261 million units shipped while the tablet market is forecast to grow 7.2% year over year as a refresh cycle and project investments are expected to drive the market.

For traditional PCs, the global market excluding China is expected to grow 2.8% in 2024 as China continues to suffer through a confluence of macroeconomic challenges, including high youth employment, deflation, and a tumultuous real estate market. However, China's economic concerns have largely impacted just the PC market as tablet demand has proven to be more resilient thanks to Huawei's efforts.

Dutch Semiconductor Export Controls Spark Tension with China, Could Reflect Badly on Cooperation

The Netherlands government announced additional export controls on advanced chipmaking equipment on Friday. This decision, which specifically targets ASML's DUV immersion lithography tools, has drawn sharp criticism from Beijing. The new regulations, aligning with similar restrictions imposed by the US last year, will require additional licensing for the export of ASML's 1970i and 1980i models. China's Commerce Ministry swiftly responded to the announcement, expressing dissatisfaction with what it perceives as unwarranted restrictions on trade. In a statement released Sunday, the ministry accused the United States of leveraging its global influence to pressure allies into tightening export controls, describing it as an attempt to maintain "global hegemony" in the semiconductor industry.

The Chinese government urged the Netherlands to reconsider its position, calling for a balance between security concerns and the preservation of mutually beneficial economic ties. Beijing emphasized the importance of safeguarding the "common interests" of businesses in both countries and warned against potential damage to Sino-Dutch cooperation in the semiconductor sector. Dutch Trade Minister Reinette Klever defended the decision, stating it was made "for our safety." However, this move could have significant implications for ASML, which has already faced restrictions on exporting its most advanced systems to China. ASML receives as much as 49% of its revenue from China, meaning that additional export regulations could significantly reduce revenues if licenses aren't approved.

Chinese GPU Maker XCT Faces Financial Crisis and Legal Troubles

Xiangdixian Computing Technology (XCT), once hailed as China's answer to NVIDIA at its peak, is now grappling with severe financial difficulties and legal challenges. The company, which has developed its own line of GPUs based on the Tianjun chips, recently admitted that its progress in "development of national GPU has not yet fully met the company's expectations and is facing certain market adjustment pressures." Despite producing two desktop and one workstation GPU model, XCT has been forced to address rumors of its closure. The company has undergone significant layoffs, but it claims to have retained key research and development staff essential for GPU advancement. Adding to XCT's woes, investors have initiated legal proceedings against the company's founder, Tang Zhimin, claiming he failed to deliver on his commitment to raising 500 million Yuan in Series B funding.

Among the complainants is the state-owned Jiangsu Zhongde Services Trade Industry Investment Fund, which has filed a lawsuit against three companies under Zhimin's control. Further complicating matters, Capitalonline Data Service is reportedly suing XCT for unpaid debts totaling 18.8 million Yuan. There are also claims that the company's bank accounts have been frozen, potentially impeding its ability to continue operations. The situation is further complicated by allegations of corruption within China's semiconductor sector, with reports of executives misappropriating investment funds. With XCT fighting for survival through restructuring efforts, its fate hangs in the balance. Without securing additional funding soon, the company may be forced to close its doors, which will blow China's GPU aspirations.

China Bought More Chipmaking Tools in the First Half of 2024 Than US, Taiwan, and South Korea Combined

According to a recent report from Nikkei, China has claimed the number one spot as the single highest spender on chipmaking tools. As the data from SEMI highlights, China spent a whopping $25 billion on key semiconductor tools in the first half of 2024, more than the US, Taiwan, and South Korea combined. And the train of acceleration for the Chinese semiconductor industry doesn't seem to be slowing down, as the country is expected to spend more than $50 billion for the entire year 2024. However, this equipment is not precisely leading-edge, as Chinese companies are under Western sanctions and are unable to source advanced EUV lithography tools for making sub-7 nm chips.

Most of the spending is allocated to mature node chipmaking facilities. These so-called "second tier" companies are driving the massive expenditures, and they are plentiful. Nikkei reports that there are at least ten firms that operate with mature nodes like 10/12/16 nm nodes. Being the biggest spender, China is also one of the primary revenue sources for many companies. For the US chipmaking tool companies like Applied Materials, Lam Research, and KLA, Chinese purchases accounted for 32%, 39%, and 44% of their latest quarterly revenue, respectively. Tokyo Electron recorded orders to China accounting for 49.9% of its revenues in June, while the Netherlands giant ASML also attributed 49%. Perhaps even more interesting is the expected outlook for 2025, which shows no signs of slowing down. The Chinese semiconductor industry must establish complete self-sufficiency, and massive capital expenditures are expected to continue.

Huawei Reportedly Developing New Ascend 910C AI Chip to Rival NVIDIA's H100 GPU

Amidst escalating tensions in the U.S.-China semiconductor industry, Huawei is reportedly working on a new AI chip called the Ascend 910C. This development appears to be the Chinese tech giant's attempt to compete with NVIDIA's AI processors in the Chinese market. According to a Wall Street Journal report, Huawei has begun testing the Ascend 910C with various Chinese internet and telecom companies to evaluate its performance and capabilities. Notable firms such as ByteDance, Baidu, and China Mobile are said to have received samples of the chip.

Huawei has reportedly informed its clients that the Ascend 910C can match the performance of NVIDIA's H100 chip. The company has been conducting tests for several weeks, suggesting that the new processor is nearing completion. The Wall Street Journal indicates that Huawei could start shipping the chip as early as October 2024. The report also mentions that Huawei and potential customers have discussed orders for over 70,000 chips, potentially worth $2 billion.

Intel Announces Arc A760A Automotive-grade GPU

In a strategic move to empower automakers with groundbreaking opportunities, Intel unveiled its first discrete graphics processing unit (dGPU), the Intel Arc Graphics for Automotive, at its AI Cockpit Innovation Experience event. To advance automotive AI, the product will be commercially deployed in vehicles as soon as 2025, accelerating automobile technology and unlocking a new era of AI-driven cockpit experiences and enhanced personalization for manufacturers and drivers alike.

Intel's entry into automotive discrete GPUs addresses growing demand for compute power in increasingly sophisticated vehicle cockpits. By adding the Intel Arc graphics for Automotive to its existing portfolio of AI-enhanced software-defined vehicle (SDV) system-on-chips (SoCs), Intel offers automakers an open, flexible and scalable platform solution that brings next-level, high-fidelity experiences to the vehicle.

Chinese Firm Launches Advanced Consumer Processor with 45 TOPS NPU and 12-Core CPU

Cixin Technology, a Chinese tech firm, has introduced the Cixin P1 (CP8180), the region's first AI-centric consumer processor. This new chip aims to disrupt domestic markets by capitalizing on the growing AI PC trend, featuring up to 45 TOPS. According to IT Home, Cixin needed 15 months of research and development, 4 months for production, and 3 months of testing for their first CPU.

The Cixin P1 utilizes ARM-based architecture, similar to Qualcomm's successful Snapdragon X Elite CPUs. Built on a 6 nm process, the chip boasts a 12-core ARM CPU configuration, with eight performance cores and four efficiency cores, with a maximum frequency of 3.2 GHz.

Chinese Memory Manufacturer YMTC Sues Micron Over 3D NAND Patents

Chinese memory manufacturer YMTC has filed a lawsuit against U.S.-based Micron in California, alleging infringement of 11 patents related to 3D NAND Flash and DRAM products. YMTC seeks to halt Micron's sales of the allegedly infringing products in the U.S. and demands royalty payments. Founded in Wuhan, China, in 2016, YMTC is a key player in China's efforts to develop a domestic chip industry. However, in October 2022, the U.S. government placed YMTC on its Entity List, restricting its access to advanced U.S. manufacturing equipment for 3D NAND chips with 128 layers or more.

Before these restrictions, YMTC had obtained certification from Apple for its 128-layer 3D NAND chips, with the US tech giant considering using YMTC chips to reduce costs and diversify its supply chain beyond Samsung, SK Hynix and Micron. The lawsuit specifically targets Micron's 3D NAND Flash products with 96, 128, 176, and 232 layers, as well as certain DDR5 SDRAM products. This legal action follows a similar suit filed by YMTC against Micron in November, alleging infringement of eight U.S. patents related to 3D NAND Flash. With government backing, Chinese firms are increasingly engaging in patent litigation both domestically and internationally. Last year alone, Chinese courts handled over 5,000 technical intellectual property and monopoly cases.

Gaming Monitor Market Expected to Reach 27.4 Million Units by 2028

New insights from Omdia's Desktop Monitor Intelligence Service show the gaming monitor market, featuring refresh rates over 120 Hz, is expected to grow by 9% YoY to 24.7 million units in 2024. Meanwhile, the smart monitor market, equipped with operating systems and streaming service portals, is projected to expand by 63% YoY to 1.2 million units.

In 1Q24, desktop monitor shipments hit 30.7 million units, a 5% increase year-on-year (YoY). The industry has been growing steadily since 3Q23, overcoming post-pandemic logistical disruptions. Notably, the gaming monitor market and smart monitors are expanding rapidly. This growth is driven by added value and high functionality, particularly in both monitor categories.

NVIDIA to Sell Over One Million H20 GPUs to China, Taking Home $12 Billion

When NVIDIA started preparing the H20 GPU for China, the company anticipated great demand from sanction-obeying GPUs. However, we now know precisely what the company makes from its Chinese venture: an astonishing $12 billion in take-home revenue. Due to the massive demand for NVIDIA GPUs, Chinese AI research labs are acquiring as many as they can get their hands on. According to a report from Financial Times, citing SemiAnalysis as its source, NVIDIA will sell over one million H20 GPUs in China. This number far outweighs the number of home-grown Huawei Ascend 910B accelerators that the Chinese companies plan to source, with numbers being "only" 550,000 Ascend 910B chips. While we don't know if Chinese semiconductor makers like SMIC are capable of producing more chips or if the demand isn't as high, we know why NVIDIA H20 chips are the primary target.

The Huawei Ascend 910B features Total Processing Performance (TPP), a metric developed by US Govt. to track GPU performance measuring TeraFLOPS times bit-length of over 5,000, while the NVIDIA H20 comes to 2,368 TPP, which is half of the Huawei accelerator. That is the performance on paper, where SemiAnalysis notes that the real-world performance is actually ahead for the H20 GPU due to better memory configuration of the GPU, including higher HBM3 memory bandwidth. All of this proves to be a better alternative than Ascend 910B accelerator, accounting for an estimate of over one million GPUs shipped this year in China. With an average price of $12,000 per NVIDIA H20 GPU, China's $12 billion revenue will undoubtedly help raise NVIDIA's 2024 profits even further.

Report: China's PC Market to Contract 1% in 2024 Before 12% Rebound in 2025

The PC (desktops, notebooks, and workstations) market in Mainland China is forecast to contract by 1% in 2024 according to the latest Canalys data. The first quarter of the year already saw a sharp decline, with shipments down 12%, in contrast to the global market which returned to growth. Desktop shipments are expected to perform well in 2024, growing 10% annually as they benefit from commercial sector refresh demand, especially from large state-held enterprises and local governments. Notebook shipments are set to drop 5%, as demand from consumers and the private sector is anticipated to remain cautious on short-term expenditure such as PCs.

China's PC market trajectory is diverging from global trends in its recovery journey. In Q1 2024, the commercial sector bore the brunt of the market downturn, undergoing a 19% decline due to weak IT spending by large enterprises. The decline in consumer shipments was milder, with shipments dropping 8%. However, despite the muted performance in 2024, significant local developments point to a stronger market in 2025, in which PC shipments are expected to grow 12%.

Zephyr Unveils ITX-sized Sakura Blizzard RTX 4070 Graphics Card

PC enthusiasts who crave powerful graphics in compact systems have a new option from Zephyr. The Chinese manufacturer has launched the world's first ITX-sized GeForce RTX 4070 graphics card. Dubbed the Sakura Blizzard, this GPU packs NVIDIA's AD104-250 chip and 12 GB of GDDR6X memory into a footprint of just 172 x 123 x 42 mm. While slightly taller than standard PCIe brackets, the two-slot cooler should fit most Mini-ITX cases. The card's cute pink shroud and solitary cooling fan give it a unique aesthetic. But don't let the pink looks fool you - Zephyr claims this compact powerhouse can keep the GPU and memory up to 10°C cooler than some dual-fan RTX 4070 designs, which needs to be taken with a grain of salt. Thermal testing videos show the fan spinning at 2,400 RPM to maintain GPU temperatures around 73°C under load in a 25°C room. Meanwhile, synthetic benchmarks reportedly demonstrate no performance compromises versus full-sized RTX 4070 implementations.

Zephyr's initial production run has already sold out in China. However, a second batch is slated for mid-July availability to meet the apparent higher demand for small form factor RTX 40-series GPUs. The launch comes just weeks after NVIDIA unveiled new "SFF-ready" design guidelines at Computex 2024. As the power-hungry RTX 40 lineup hit the market, many voiced concerns over the cards' ever-growing dimensions. NVIDIA's renewed SFF PC focus signal options like the Sakura Blizzard could become more common. For space-constrained enthusiasts, having top-tier GPU muscle in a properly-cooled Mini-ITX card is a big win. Zephyr's ITX-sized RTX 4070 shows powerful things can come in small packages, and we hope more manufacturers follow this philosophy.

Taiwanese Chipmakers Expand Overseas to Capitalize on Geopolitical Shifts and De-Sinicization Benefits

On June 5th, Vanguard and NXP announced plans to jointly establish VisionPower Semiconductor Manufacturing Company (VSMC) in Singapore to build a 12-inch wafer plant. TrendForce posits that this move reflects the trend of global supply chains shifting "Out of China, Out of Taiwan"(OOC/OOT), with Taiwanese companies accelerating their overseas expansion to improve regional capacity flexibility and competitiveness.

TrendForce noted that the semiconductor supply chain has been diversifying over the past two years to mitigate geopolitical and pandemic-related risks, forming two major segments: China's domestic supply chain and a non-China supply chain. Recent US tariff increases have accelerated this shift, leading to increased orders from American customers.

China Launches Massive $47.5 Billion "Big Fund" to Boost Domestic Chip Industry

Beijing has doubled down on its push for semiconductor self-sufficiency with the establishment of a new $47.5 billion investment fund to accelerate growth in the domestic chip sector. The fund, officially registered on May 24th under the name "China Integrated Circuit Industry Investment Fund Phase III", represents the largest of three state-backed vehicles aimed at cultivating China's semiconductor capabilities. The announcement comes as tensions over advanced chip technology continue to escalate between the U.S. and China. Over the past couple years, Washington has steadily ratcheted up export controls on semiconductors to Beijing over national security concerns about potential military applications. These measures have lent new urgency to China's quest for self-sufficiency in chip design and manufacturing.

With a war chest of 344 billion yuan ($47.5 billion), the "Big Fund" dwarfs the combined capital of the first two semiconductor investment vehicles launched in 2014 and 2019. Officials have outlined a multipronged strategy targeting key bottlenecks, focusing on equipment for chip fabrication plants. The fund has bankrolled major projects such as flash memory maker Yangtze Memory Technologies and leading foundries like SMIC and Huahong. China's homegrown chip industry still needs to catch up to global leaders like Intel, Samsung, and TSMC. However, the immense scale of state-directed capital illustrates Beijing's unwavering commitment to developing a self-reliant supply chain for semiconductors—a technology viewed as indispensable for economic and military competitiveness. News of the "Big Fund" sent Chinese chip stocks surging over 3% on hopes of fresh financing tailwinds.

Biden Administration to Revive Trump-Era Tariffs on China-made GPUs and Motherboards

The US Trade Representative (USTR) under Biden administration is preparing to reinstate tariffs on certain technology products imported from China, including GPUs and motherboards. The 25% duties, initially imposed by the Trump administration in 2019 but later suspended, are being revived as part of broader efforts to address concerns over China's economic and trade practices. The tariffs are intended to protect American companies from what the administration describes as unfair Chinese trade actions like intellectual property theft and forced technology transfers that undermine U.S. competitiveness. While no specific effective date was provided, the reinstated tariffs are expected to impact major Chinese computing component suppliers significantly. The revival of the Trump-era tariffs marks a reversal from the previous administration's move to temporarily suspend the duties in 2020 as a goodwill gesture during broader trade negotiations with Beijing.

However, those talks ultimately stalled amid the COVID-19 pandemic and rising bilateral tensions over economic and national security issues. Industry groups have expressed concerns that reviving the tariffs could disrupt tech supply chains, increase costs for U.S. companies and consumers, and potentially invite further Chinese retaliation. The tariffs would apply to GPUs, motherboards and other computing components assembled in China regardless of whether the raw components themselves originated from the country. With tensions already elevated over issues like Taiwan and advanced semiconductor production, the tariff announcement could set the stage for further economic friction between the world's two largest economies absent a negotiated resolution on tech trade.

Phison Announces Pascari Brand of Enterprise SSDs, Debuts X200 Series Across Key Form-factors

Phison is arguably the most popular brand for SSD controllers in the client segment, but is turning more of attention to the vast enterprise segment. The company had been making first-party enterprise SSDs under its main marquee, but decided that the lineup needed its own brand that enterprise customers could better discern from the controller ASIC main brand. We hence have Pascari and Imagin. Pascari is an entire product family of fully built enterprise SSDs from Phison. The company's existing first-party drives under the main brand will probably migrate to the Pascari catalog. Imagin, on the other hand, is a design service for large cloud and data-center customers, so they could develop bespoke tiered storage solutions at scale.

The Pascari line of enterprise SSDs are designed completely in-house by Phison, feature their latest controllers, firmware, PCB, PMIC, and on-device power-failure protection on select products. The third-party components here are the NAND flash and DRAM chips, which have both been thoroughly evaluated by Phison for the best performance, endurance, and reliability, at their enterprise SSD design facility in Broomfield, Colorado. Phison already had a constellation of industry partners and suppliers to go around with, and the company's drives even power space missions; but the Pascari brand better differentiates the fully-built SSD lineup from the ASIC make. Pascari makes its debut with the X200 series high-performance SSDs for high-access heat data. The drive leverages Phison's latest PCIe Gen 5 controller technology, the most optimized memory components, and availability in all contemporary server storage form-factors.

TOP500: Frontier Keeps Top Spot, Aurora Officially Becomes the Second Exascale Machine

The 63rd edition of the TOP500 reveals that Frontier has once again claimed the top spot, despite no longer being the only exascale machine on the list. Additionally, a new system has found its way into the Top 10.

The Frontier system at Oak Ridge National Laboratory in Tennessee, USA remains the most powerful system on the list with an HPL score of 1.206 EFlop/s. The system has a total of 8,699,904 combined CPU and GPU cores, an HPE Cray EX architecture that combines 3rd Gen AMD EPYC CPUs optimized for HPC and AI with AMD Instinct MI250X accelerators, and it relies on Cray's Slingshot 11 network for data transfer. On top of that, this machine has an impressive power efficiency rating of 52.93 GFlops/Watt - putting Frontier at the No. 13 spot on the GREEN500.

Huawei Aims to Develop Homegrown HBM Memory Amidst US Sanctions

According to The Information, in a strategic maneuver to circumvent the constraints imposed by US sanctions, Huawei is accelerating efforts to establish domestic production capabilities for High Bandwidth Memory (HBM) within China. This move addresses the limitations that have hampered the company's advancements in AI and high-performance computing (HPC) sectors. HBM technology plays a pivotal role in enhancing the performance of AI and HPC processors by mitigating memory bandwidth bottlenecks. Recognizing its significance, Huawei has assembled a consortium comprising memory manufacturers backed by the Chinese government and prominent semiconductor companies like Fujian Jinhua Integrated Circuit. This consortium is focused on advancing HBM2 memory technology, which is crucial for Huawei's Ascend-series processors for AI applications.

Huawei's initiative comes at a time when the company faces challenges in accessing HBM from external sources, impacting the availability of its AI processors in the market. Despite facing obstacles such as international regulations restricting the sale of advanced chipmaking equipment to China, Huawei's efforts underscore China's broader push for self-sufficiency in critical technologies essential for AI and supercomputing. By investing in domestic HBM production, Huawei aims to secure a stable supply chain for these vital components, reducing reliance on external suppliers. This strategic shift not only demonstrates Huawei's resilience in navigating geopolitical challenges but also highlights China's determination to strengthen its technological independence in the face of external pressures. As the global tech landscape continues to evolve, Huawei's move to develop homegrown HBM memory could have far-reaching implications for China's AI and HPC capabilities, positioning the country as a significant player in the memory field.

US Weighs National Security Risks of China's RISC-V Chip Development Involvement

The US government is investigating the potential national security risks associated with China's involvement in the development of open-source RISC-V chip technology. According to a letter obtained by Reuters, the Department of Commerce has informed US lawmakers that it is actively reviewing the implications of China's work in this area. RISC-V, an open instruction set architecture (ISA) created in 2014 at the University of California, Berkeley, offers an alternative to proprietary and licensed ISAs like those developed by Arm. This open-source ISA can be utilized in a wide range of applications, from AI chips and general-purpose CPUs to high-performance computing applications. Major Chinese tech giants, including Alibaba and Huawei, have already embraced RISC-V, positioning it as a new battleground in the ongoing technological rivalry between the United States and China over cutting-edge semiconductor capabilities.

In November, a group of 18 US lawmakers from both chambers of Congress urged the Biden administration to outline its strategy for preventing China from gaining a dominant position in RISC-V technology, expressing concerns about the potential impact on US national and economic security. While acknowledging the need to address potential risks, the Commerce Department noted in its letter that it must proceed cautiously to avoid unintentionally harming American companies actively participating in international RISC-V development groups. Previous attempts to restrict the transfer of 5G technology to China have created obstacles for US firms involved in global standards bodies where China is also a participant, potentially jeopardizing American leadership in the field. As the review process continues, the Commerce Department faces the delicate task of balancing national security interests with the need to maintain the competitiveness of US companies in the rapidly evolving landscape of open-source chip technologies.

China Circumvents US Restrictions, Still Acquiring NVIDIA GPUs

A recent Reuters investigation has uncovered evidence suggesting Chinese universities and research institutes may have circumvented US sanctions on high-performance NVIDIA GPUs by purchasing servers containing the restricted chips. The sanctions tightened on November 17, 2023, prohibit the export of advanced NVIDIA GPUs like the consumer GeForce RTX 4090 to China. Despite these restrictions, Reuters found that at least ten China-based organizations acquired servers equipped with the sanctioned NVIDIA GPUs between November 20, 2023, and February 28, 2024. These servers were purchased from major vendors such as Dell, Gigabyte, and Supermicro, raising concerns about potential sanctions evasion. When contacted by Reuters, the companies provided varying responses.

Dell stated that it had not observed any instances of servers with restricted chips being shipped to China and expressed willingness to terminate relationships with resellers found to be violating export control regulations. Gigabyte, on the other hand, stated that it adheres to Taiwanese laws and international regulations. Notably, the sale and purchase of the sanctioned GPUs are not illegal in China. This raises the possibility that the restricted NVIDIA chips may have already been present in the country before the sanctions took effect on November 17, 2023. The findings highlight the challenges in enforcing export controls on advanced technologies, particularly in the realm of high-performance computing hardware. As tensions between the US and China continue to rise, the potential for further tightening of export restrictions on cutting-edge technologies remains a possibility.

Report: Global PC Shipments Return to Growth and Pre-Pandemic Volumes in the First Quarter of 2024

After two years of decline, the worldwide traditional PC market returned to growth during the first quarter of 2024 (1Q24) with 59.8 million shipments, growing 1.5% year over year, according to preliminary results from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. Growth was largely achieved due to easy year-over-year comparisons as the market declined 28.7% during the first quarter of 2023, which was the lowest point in PC history. In addition, global PC shipments finally returned to pre-pandemic levels as 1Q24 volumes rivaled those seen in 1Q19 when 60.5 million units were shipped.

With inflation numbers trending down, PC shipments have begun to recover in most regions, leading to growth in the Americas as well as Europe, the Middle East, and Africa (EMEA). However, the deflationary pressures in China directly impacted the global PC market. As the largest consumer of desktop PCs, weak demand in China led to yet another quarter of declines for global desktop shipments, which already faced pressure from notebooks as the preferred form factor.

U.S. Updates Advanced Semiconductor Ban, Actual Impact on the Industry Will Be Insignificant

On March 29th, the United States announced another round of updates to its export controls, targeting advanced computing, supercomputers, semiconductor end-uses, and semiconductor manufacturing products. These new regulations, which took effect on April 4th, are designed to prevent certain countries and businesses from circumventing U.S. restrictions to access sensitive chip technologies and equipment. Despite these tighter controls, TrendForce believes the practical impact on the industry will be minimal.

The latest updates aim to refine the language and parameters of previous regulations, tightening the criteria for exports to Macau and D:5 countries (China, North Korea, Russia, Iran, etc.). They require a detailed examination of all technology products' Total Processing Performance (TPP) and Performance Density (PD). If a product exceeds certain computing power thresholds, it must undergo a case-by-case review. Nevertheless, a new provision, Advanced Computing Authorized (ACA), allows for specific exports and re-exports among selected countries, including the transshipment of particular products between Macau and D:5 countries.

China Pushes Adoption of Huawei's HarmonyOS to Replace Windows, iOS, and Android

According to ChinaScope, an effort is currently underway to strengthen Huawei's HarmonyOS platform's presence. The local government of Shenzhen has unveiled an ambitious program aimed at supercharging the development of native applications for the operating system. The "Shenzhen Action Plan for Supporting the Development of Native HarmonyOS Open Source Applications in 2024" outlines several key goals to foster a more robust and competitive ecosystem around HarmonyOS. One primary objective is for Shenzhen-based HarmonyOS apps to account for over 10% of China's total by the end of 2024. To facilitate this, the city plans to establish at least two specialized industrial parks dedicated to HarmonyOS software development across various application domains.

Furthermore, the initiative calls for over 1,000 software companies in Shenzhen to obtain HarmonyOS development talent qualifications, underscoring the city's commitment to cultivating a skilled workforce for the platform. Perhaps most impressively, the action plan encourages eligible companies to ramp up their outsourcing services for HarmonyOS app development, with a lofty target of reaching 500,000 HarmonyOS developers. This would represent a significant influx of developer talent focused on the platform if achieved. The Shenzhen government's push aligns with China's broader strategy to reduce reliance on foreign technologies and promote the adoption of domestic alternatives like HarmonyOS. While initially launched by Huawei as a workaround for U.S. sanctions, HarmonyOS has since expanded to power many devices, including smartphones, tablets, smartwatches, and TVs.

MSI Intros GeForce RTX 4060 Gaming Duke Graphics Card as a China-exclusive

MSI brought back its Gaming Duke line of graphics cards with a GeForce RTX 4060 model meant for the Chinese market. The Duke line of graphics cards have historically held the bottom-end of the company's custom-design product stack, and the same appears to be the case with the new card. The RTX 4060 Gaming Duke looks long and premium, thanks to its 2-slot, triple-fan cooling solution that uses a slender aluminium fin-stack heatsink. MSI has given this cooler its webbed TorX fans that guide all their airflow axially. There are some decent aesthetic touches such as a carbon fiber-print cooler shroud, and a metal backplate. There is no RGB lighting on offer, except a white illuminated MSI logo on the top. The card sticks to NVIDIA reference clock speeds of 2460 MHz boost, and 17 Gbps (GDDR6-effective) memory.
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