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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.

Square Enix Artist Discusses Rebirth's Modernization of Final Fantasy VII 3D Assets

It'd be fair to say Final Fantasy VII Rebirth's next-gen makeover of characters, monsters, and more from the 1997 original has been a spectacular glow-up. The modern console era has returned an iconic cast and world to us with a level of realism in gameplay that even pre-rendered cutscenes over 25 years ago couldn't match. We asked Square Enix if they could crunch some numbers and share some insight into the changes nearly three decades of technological advancement have wrought. Here, main character modeler and lead character artist Dai Suzuki walks us through a selection of characters, creatures, weapons, and more.

Dai Suzuki: When people think of Cloud, most think of his gigantic sword and his unique hairstyle. Because it is so iconic, we needed to put special effort into creating Cloud's hair for Final Fantasy VII Remake, to properly express his personality. The hair was an extremely high-priority element and in fact accounted for half of the total polygon count for the whole model. In Final Fantasy VII Rebirth, the hardware has been changed to PS5, allowing for a higher polygon count to be used than in Final Fantasy VII Remake.

Paradox Unveils First Wave of "Cities: Skylines 2" Modifications

With Mods (short for modifications), you can tailor your gaming experience to your unique preferences. Uploaded by creators all over the world, you can pick between anything to create the city of your dreams. Along with Beach Properties, the first wave of Cities: Skylines II Modding will be available. The Beta release of Modding will initially support Map and Code mods. With the Map Editor, you can make maps with the Terraforming Tools you're used to, import hightmaps to create highly accurate depictions of your hometown, and upload your creations to Paradox Mods.

With the Code Tools, you can show off your coding skills and create Code Mods to meet your heart's desire! Future updates will improve on these tools and come to include support for Asset Mods. As we've talked about before, there will be updates to these tools that we are currently working on, and we will see some updates before the 1.0 release. We will be taking your opinion into consideration when we continue to work on the editor and are looking forward to seeing the feedback that you might have. If you're curious on what the process of Modding will look like you can already check it out on the Cities: Skylines II Wiki here.

"Twinsen's Little Big Adventure" Development Transferred to Unity Engine

2:21, a French development team is well versed in Unreal Engine 5-based games development—as of last year they were in the process of utilizing Epic's tech to remake Adeline Software's classic duo of Little Big Adventure (1994) and Little Big Adventure 2 (1997), as well as a now cancelled series reboot. Following on from recent-ish good news—regarding a new publication deal—CEO Ben Limare has announced that his team is moving away from UE5: "In June 2023, you experienced an initial prototype on Proxima Island, developed in a short time by a small team. Despite its imperfections, this prototype was a crucial springboard for engaging with you and understanding your expectations. This prototype was built using Unreal Engine 5, with an almost manual reconstruction of the island. Faced with the challenge of replicating this method for a larger world in a limited time, we opted for a complete overhaul of the game, based on new foundations."

Limare revealed to long-term fans that development of "Twinsen's Little Big Adventure" has already quietly transferred over to the Unity Engine—a strange choice given last year's fallout over "Runtime Fees." Unity Technologies is not winning any popularity contests in modern times—CEO John Riccitiello resigned last October, during payment plan upheavals. 2.21 developers did their very best to carry on with UE5, but legacy code demanded a pivot to a compatible foundation. Limare has roped in another Adeline Software veteran: "The answer lies in the work of Sébastien Viannay, a developer on the original games, as well as the mobile port. It was during the work on the latter that Seb developed a small tool to setup the pathfinding—that is, the ability to tap a point on the screen and have Twinsen follow that direction. This tool interprets the original game's data to reconstruct the level and identify obstacles."

"S.T.A.L.K.E.R. Legends of the Zone Trilogy" Announced During Xbox Partner Preview

Today, during the latest Xbox Partner Preview broadcast—as a surprise for Xbox gamers everywhere—GSC Game World launched the S.T.A.L.K.E.R. Legends of the Zone Trilogy for Xbox One and Xbox Series X|S (via backwards compatibility). That's right - it's available today! The Legends of the Zone Trilogy bundle—available on the Microsoft Store for $39.99 USD—includes all three iconic games that make up the original S.T.A.L.K.E.R. Trilogy: Shadow of Chernobyl, Clear Sky, and Call of Pripyat—or you can pick up each of the games individually for $19.99 USD each. Every element from the original games has been maintained and faithfully ported to console thanks to the hard work of GSC Game World and their partners at Mataboo. This all makes for a great opportunity for Xbox gamers everywhere to get some foundational knowledge of S.T.A.L.K.E.R.'s universe in the lead-up to the launch of S.T.A.L.K.E.R. 2: Heart of Chornobyl, coming day one to Game Pass on September 5, 2024.

But translating these hardcore PC games to an Xbox controller has been no small feat. For a series that is known for blending a variety of genres like horror, first-person shooter, exploration, and immersive sim, it was important for the team to get it right. Speaking with GSC Game World PR Specialist Zakhar Bocharov, we wanted to learn more about what this process was like, bringing these cult-classic, hardcore PC titles to console, and some of the innovative design and UI adjustments the team had to make to bring all three games to Xbox.

NVIDIA Readying H20 AI GPU for Chinese Market

NVIDIA's H800 AI GPU was rolled out last year to appease the Sanction Gods—but later on, the US Government deemed the cutdown "Hopper" part to be far too potent for Team Green's Chinese enterprise customers. Last October, newly amended export conditions banned sales of the H800, as well as the slightly older (plus similarly gimped) A800 "Ampere" GPU in the region. NVIDIA's engineering team returned to the drawing board, and developed a new range of compliantly weakened products. An exclusive Reuters report suggests that Team Green is taking pre-orders for a refreshed "Hopper" GPU—the latest China-specific flagship is called "HGX H20." NVIDIA web presences have not been updated with this new model, as well as Ada Lovelace-based L20 PCIe and L2 PCIe GPUs. Huawei's competing Ascend 910B is said to be slightly more performant in "some areas"—when compared to the H20—according to insiders within the distribution network.

The leakers reckon that NVIDIA's mainland distributors will be selling H20 models within a price range of $12,000 - $15,000—Huawei's locally developed Ascend 910B is priced at 120,000 RMB (~$16,900). One Reuters source stated that: "some distributors have started advertising the (NVIDIA H20) chips with a significant markup to the lower end of that range at about 110,000 yuan ($15,320). The report suggests that NVIDIA refused to comment on this situation. Another insider claimed that: "distributors are offering H20 servers, which are pre-configured with eight of the AI chips, for 1.4 million yuan. By comparison, servers that used eight of the H800 chips were sold at around 2 million yuan when they were launched a year ago." Small batches of H20 products are expected to reach important clients within the first quarter of 2024, followed by a wider release in Q2. It is believed that mass production will begin around Spring time.

China's Chip Imports See Record 15.4% Plunge in 2023

According to new data from Chinese Customs, China's imports of integrated circuits suffered their steepest annual drop on record in 2023, falling 15.4% to $349.4 billion. The decline marks the second straight year of falling chip imports and can be attributed to economic uncertainty and US export controls on advanced semiconductors. Shipment volumes of imported chips also saw a substantial 10.8% year-over-year decrease as demand within China stagnated. The country's important tech manufacturing sector has struggled under strict zero-Covid policies and a lackluster recovery post-pandemic. Flagship manufacturing companies like TSMC recorded modest declines in 2023 sales, though TSMC still forecasts overall growth this year.

Sentiment plunged further when the Biden administration heightened restrictions on China's access to cutting-edge AI-capable chips from NVIDIA and other top American suppliers. The escalating US export controls have choked off China's pipeline to advanced semiconductors needed for AI and supercomputing applications. However, early positive signs for global semiconductor demand have emerged, with worldwide chip sales rising for the first time in over a year this past November. The increase was driven by growing demand for AI and other emerging technologies that rely on advanced computing chips. While the US seeks to limit China's progress in this key strategic area, an inflection point for the battered global chip sector may be nearing.

China Ramps Up Semiconductor Imports Ahead of Export Restrictions

China has sharply increased imports of semiconductor manufacturing equipment in recent months, customs data reveals. The country's purchases of chip production tools surged to record highs of nearly $5 billion in June and July, a 70% increase versus the same period last year, which amounted to $2.9 billion. The spike comes right before export restrictions on advanced chipmaking equipment are implemented by the U.S. and its allies. The moves aim to slow China's technological advancement, but Chinese chipmakers are stockpiling to avoid disruptions. Much of the equipment comes from the Netherlands and Japan, which have imposed licensing requirements on certain tool exports. While it's unclear how many are affected, the rush suggests China wants to expand production capacity and buffer against supply chain issues.

Chinese firms like SMIC and YMTC rely heavily on U.S., Dutch, and Japanese suppliers for cutting-edge manufacturing equipment. They are utilizing imported tools to boost the output of mature chips not subject to controls, particularly for electric vehicles, renewable energy, and industrial applications. Significantly, imports from the Netherlands doubled as lithography machines were delivered to Chinese foundries. Purchases from Japan also rose as companies procured etching tools and wafer coaters after 2020 U.S. restrictions. Newly established foundries backed by local governments contributed as Beijing pushed chip production expansions. Despite export control challenges, China aims to keep advancing its semiconductor capabilities. The import spike highlights intensified efforts to build self-sufficiency using older technology not covered by current limits.

India Imposes Import Restrictions on Prebuilt PCs

The Indian Government on Thursday announced restrictions on the import of pre-built laptop and desktop PCs, tablets, and convertibles. These restrictions take effect immediately. The decision is designed to get major PC manufacturers such as Dell, HP, Acer, Lenovo, and Apple, to manufacture their devices on Indian soil, or subject each individual PC model through a lengthy import licensing regime—essentially a penalty for not manufacturing locally. The new restrictions find several parallels to India's 2020 decision to restrict import of TVs, which caused major consumer electronics firms to rush to set up local assembly lines to keep up with the country's market demand.

The restrictions on the import of PCs is seen as complicating things for PC manufacturers, especially as the country heads into its biggest consumer cycle with Diwali (Q4-2023). India's current import restrictions on smartphones and TVs have caused most consumer electronics giants to set up assembly lines in India; however these lines barely contribute 20% of value-addition to the product (i.e. much of the product comes knocked down and is simply put together); however manufacturers are incentivized to localize more of their value-addition, through the country's performance-linked incentives (PLI) scheme. Certain whitebox ODMs have localized even PCB placement, and display panel manufacturing. India's ICT imports for the period of just Q2-2023 stood at $19.7 billion, the country clocks roughly $75-90 billion in ICT/PC sales per year.

SK Hynix to Expand Wuxi Fab Legacy Production Capacity, Consumer DRAM Prices Struggle to Recover

Last October, the US Department of Commerce imposed semiconductor restrictions on Chinese imports of equipment for processes of 18 nm and below. SK hynix's Wuxi fab was granted a one-year production license, but geopolitical risks and weak demand prompted the company to reduce wafer starts by about 30% per month in 2Q23, according to TrendForce's latest research.

TrendForce reports that SK hynix had planned to transition its Wuxi fab's mainstream process from 1Y nm to 1Z nm, decreasing the output of legacy processes. However, due to limitations imposed by the US ban, the company instead opted to increase the share of its 21 nm production lines, focus-ing on DDR3 and DDR4 4Gb products. SK hynix's long-term strategy involves shifting its capacity expansion back to South Korea, while the Wuxi fab caters to domestic demand in China and the legacy-process consumer DRAM market.

Nintendo of Russia Staffer Continues Sale of Products Via Unaffiliated Operation

Nintendo ceased selling products and wound down its operations in Russia last March, soon after the invasion of Ukraine by Russian military forces. Other notable games software and hardware companies also announced their withdrawal at a similar time. Microsoft/Xbox, Sony/PlayStation, Activision Blizzard, Electronic Arts, CD Projekt, Sega, Ubisoft and Take-Two Interactive are among a group that discontinued the sale and distribution of games products in Russian territory markets. Lawmakers within Russia have taken a fairly lax stance on the import of consumer and industrial goods - it is legal to do so, even minus a rightsholder's approval. It seems that a couple of Nintendo of Russia employees have taken advantage of loose import regulations in the past few months.

According to a news piece published online by Kommersant (a Russian politics and business newspaper) a relatively new operation registered under the company name "Achivka LLC" is involved in the sale and distribution of Nintendo games in Russian territories. Nintendo Russia CEO Yasha Haddaji is reported to be the leader and majority owner of Achivka LLC, and former corporate events manager Ksenia Kachalova is listed as being a minority stakeholder in the company. The operation's premises appear to match the exact address for Nintendo of Russia. The firm is involved in the importing (from an unknown source) and selling of Nintendo games - the Kommersant article includes photographic evidence - a physical copy of Metroid Prime Remastered is demonstrated as bearing an Achivka stick-on label. The English translation of the company name is Achievement, which is an appropriate word association in the world of high score driven computer games.

Update Apr 18th: Nintendo has confirmed that Yasha Haddazhi, CEO of the Russian Office, remains as a current employee of the international company - but only on a temporary basis. Nintendo continues to distance itself from Achivka LLC and the selling of rebadged products in Russian territories. See below for more details.

NVIDIA to Lose Two Major HPC Partners in China, Focuses on Complying with Export Control Rules

NVIDIA's presence in high-performance computing has steadily increased, with various workloads benefiting from the company's AI and HPC accelerator GPUs. One of the important markets for the company is China, and export regulations are about to complicate NVIDIA's business dealing with the country. NVIDIA's major partners in the Asia Pacific region are Inspur and Huawei, which make servers powered by A100 and H100 GPU solutions. Amid the latest Biden Administration complications, the US is considering limiting more export of US-designed goods to Chinese entities. Back in 2019, the US blacklisted Huawei and restricted the sales of the latest GPU hardware to the company. Last week, the Biden Administration also blacklisted Inspur, the world's third-largest server maker.

In the Morgan Stanley conference, NVIDIA's Chief Financial Officer Colette Cress noted that: "Inspur is a partner for us, when we indicate a partner, they are helping us stand up computing for the end customers. As we work forward, we will probably be working with other partners, for them to stand-up compute within the Asia-Pac region or even other parts of the world. But again, our most important focus is focusing on the law and making sure that we follow export controls very closely. So in this case, we will look in terms of other partners to help us." This indicates that NVIDIA will lose millions of dollars in revenue due to the inability to sell its GPUs to partners like Inspur. As the company stated, complying with the export regulations is the most crucial focus.

KIOXIA and HPE Team Up to Send SSDs into Space, Bound for the International Space Station

Today, KIOXIA America, Inc. announces its proud participation in the Hewlett Packard Enterprise (HPE) Spaceborne Computer-2 (SBC-2) program. As part of the program, KIOXIA SSDs provide robust flash storage in HPE Edgeline and HPE ProLiant servers in a test environment to conduct scientific experiments aboard the International Space Station (ISS).

"By bringing KIOXIA's expertise and its SSDs, one of the industry's leading NAND flash capabilities, with HPE Spaceborne Computer-2, together we are pushing the boundaries of scientific discovery and innovation at the most extreme edge."

Foundry Revenue is Forecasted to Drop by 4% YoY for 2023, TrendForce Notes

TrendForce's recent analysis of the foundry market reveals that demand continues to slide for all types of mature and advanced nodes. The major IC design houses have cut wafer input for 1Q23 and will likely scale back further for 2Q23. Currently, foundries are expected to maintain a lower-than-ideal level of capacity utilization rate in the first two quarters of this year. Some nodes could experience a steeper demand drop in 2Q23 as there are still no signs of a significant rebound in wafer orders. Looking ahead to the second half of this year, orders will likely pick up for some components that underwent an inventory correction at an earlier time. However, the state of the global economy will remain the largest variable that affect demand, and the recovery of individual foundries' capacity utilization rates will not occur as quickly as expected. Taking these factors into account, TrendForce currently forecasts that global foundry revenue will drop by around 4% YoY for 2023. The projected decline for 2023 is more severe when compared with the one that was recorded for 2019.

GPU Prices Safe For Now as USTR Extends Tariff Exclusion

The feared import tariff increase that could've taken place in the US in the new year, has been pushed thanks to the Office of the United States Trade Representative (USTR). As such, graphics cards won't see a price hike in the new year, alongside a range of other products in 352 different categories, which also includes other types of PCBs and computer hardware. The tariff exclusion is known as Section 301 and was supposed to run its course by the end of this year, but will be extended for another nine months.

As to what will happen after the nine months extension, is anyone's guess at this point in time, as the USTR is having a review of the effectiveness of Section 301. The USTR has already had a first review, where parties that have benefitted from the tariffs have been able to leave feedback, early next year, parties that have been opposed to the tariff will also be able to leave their feedback. After the review, it'll be up to the US government to decide the future of the tariffs imposed against Chinese made products. This could lead to even more expensive computer components in the future in the US, but for now, nothing will change.

US Might Reimpose GPU Import Tariffs in the New Year

Currently, the US has an exclusion in place when it comes to import tariffs relating to graphics cards and GPUs imported from China, but the exclusion is set to expire on the 31st of December this year. So far, the US government has been quiet on whether or not the import tariff will be reinstated or not. If the tariff was to be reinstated, US consumers are looking at a 25 percent import duty on graphics cards, starting on the 1st of January, 2023.

There's no easy way to circumvent the tariff either, as it includes items like "printed circuit assemblies, constituting unfinished logic boards," according to Tom's Hardware. Not all graphics cards are made in China though, but the majority of graphics cards are today. It's possible that NVIDIA's move of its logistics center from Hong Kong to Taiwan could have some relation to this as well, as NVIDIA would then be shipping products out of Taiwan, rather than China, depending on how the US Customs classifies Hong Kong these days. We should know what happens in a month's time, but a 25 percent import duty on graphics cards will likely kill most sales, as most people already find them overpriced. This would of course affect AMD and NVIDIA, as well as their partners in the same way, unless they make their graphics cards outside of China.

Microsoft Updates Surface PC Models with the Latest Hardware

Today, we shared our vision for the next era of the Windows PC, where the PC and the cloud intersect and tap into innovative AI technology that unlocks new experiences. So that each of us can participate, be seen, heard and express our creativity.

For nearly 40 years, the Windows PC has held a place at the center of our lives. It's contributed to new levels of productivity, kept us all connected, and unlocked our creativity and potential through innovations we couldn't have imagined when we first began this journey. Just think about how far we've come in how people interact with it. From the very first text-based keyboard input to the precision of point and click with the mouse, up to today, where touch, voice, pen and gestures all help people use the Windows PC more naturally and intuitively. From its inception, Surface has been a catalyst for that change.

ASML Reports €5.4 Billion Net Sales and €1.4 Billion Net Income in Q2 2022

Today ASML Holding NV (ASML) has published its 2022 second-quarter results. Q2 net sales of €5.4 billion, gross margin of 49.1%, net income of €1.4 billion. Record quarterly net bookings in Q2 of €8.5 billion. ASML expects Q3 2022 net sales between €5.1 billion and €5.4 billion and a gross margin between 49% and 50%. Expected sales growth for the full year of around 10%.

The value of fast shipments*in 2022 leading to delayed revenue recognition into 2023 is expected to increase from around €1 billion to around €2.8 billion.
"Our second-quarter net sales came in at €5.4 billion with a gross margin of 49.1%. Demand from our customers remains very strong, as reflected by record net bookings in the second quarter of €8.5 billion, including €5.4 billion from 0.33 NA and 0.55 NA EUV systems as well as strong DUV bookings.

Russia to Use Chinese Zhaoxin x86 Processors Amidst Restrictions to Replace Intel and AMD Designs

Many companies, including Intel and AMD, have stopped product shipments to Russia amidst the war in Ukraine in the past few months. This has left the Russian state without any new processors from the two prominent x86 designers, thus slowing down the country's technological progress. To overcome this issue, it seems like the solution is embedded in the Chinese Zhaoxin x86 CPUs. According to the latest report from Habr, a motherboard designer called Dannie is embedding Chinese Zhaoxin x86 CPUs into motherboards to provide the motherland with an x86-capable processor. More precisely, the company had designed a BX-Z60A micro-ATX motherboard that embeds Zhaoxin's KaiXian KX-6640MA SoC with eight cores based on LuJiaZui microarchitecture. The SoC is clocked at a frequency range of 2.1-2.7 GHz, carries 4 MB of L2 cache, 16 lanes of PCIe 3.0, and has integrated graphics, all in a 25 Watt TDP.

As far as the motherboard is concerned, it supports two DDR4 memory slots, two PCIe x16 connectors, M.2-2280 and M.2-2230 slots, and three SATA III connectors for storage. For I/O you have USB ports, DisplayPort, HDMI, VGA/D-Sub, GbE, 3.5-mm audio, and additional PS/2 ports. This is a pretty decent selection; however, we don't know the pricing structure. A motherboard with KaiXian KX-6640MA SoC like this is certainly not cheap, so we are left to wonder if this will help Russian users deal with the newly imposed restriction on importing US tech.

Blackmagic Design Announces New Blackmagic Cloud Store Mini

Blackmagic Design today announced Blackmagic Cloud Store Mini a new network storage solution with the high performance of 4 M.2 flash memory in a RAID 0 configuration. With its built in 10G Ethernet, the Blackmagic Cloud Store Mini is extremely fast so it allows multiple users to collaborate on video editing in software such as DaVinci Resolve. Plus with Dropbox sync, multiple units can be synchronized across different geographic locations. Blackmagic Cloud Store Mini is available immediately from Blackmagic Design resellers worldwide for US$2,995. Blackmagic Cloud Store Mini is the perfect network storage solution for any use. It's great for film and television where large media files need to be shared between multiple users for editing, color correction, audio post and VFX work. It even handles massive 12K Blackmagic RAW digital cinema files. Each user gets zero latency and they don't need to store files on their local computer. It's the perfect solution for DaVinci Resolve.

Blackmagic Cloud Store Mini features a compact rack mount design that's very portable and whisper quiet. Internally it has an array of 4 flash memory cards working in parallel for higher speed. The 10G Ethernet port and the 1G Ethernet port operate as a 2 port network switch. There is also an HDMI monitoring output so customers can watch a live graphic view of the storage operating on a TV or monitor. The Blackmagic Cloud Store Mini is available with 8 TB of flash memory, so customers have lots of space for their files. That's fantastic for television production, as it's small enough to be portable, but it has enough storage space for lots of video media. M.2 flash memory cards are used for extreme reliability, high access speeds and zero seek times. Plus the four M.2 cards are arranged in a parallel RAID 0 group so they can operate much faster than a single card. That ensures enough speed to keep up with the 10G Ethernet connection.

Thousands of Mislabeled XFX Graphic Cards Worth $3.15M Seized by Chinese Customs Authorities

The Chinese division of XFX may be in hot water with Chinese customs authorities, after a shipment of 5,840 graphics cards was intercepted in the border between Hong Kong and Shenzhen. An initial inspection of the shipment revealed mislabeling of at least three of its graphic cards, with the card's original model and specifications apparently hidden by stickers that declared other, supposedly lower-value models. A subsequent inspection concluded that all graphics cards in the shipment had been mislabeled this way. According to MyDrivers, this purposeful mislabeling of imported goods is a relatively regular occurrence.

The Chinese customs services from Meilin and Huanggang reported the event, declaring that the total value of the mislabeled shipment was accounted at around ¥20 million ($3.15 million). The Chinese customs authorities didn't name XFX as the driving force of the attempted unlawful import, but the company's Chinese branch website has been down following the incident, and the company's web presence over at Alibaba-run, online retailer Tmall has been shuttered as well. At least some of the mislabeled cards were XFX Speedster Qick 319 Radeon RX 6700 XT GPUs.

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