Internet of Things Headlines

1. 35 supply chain manufacturers have followed TSMC's investment in Japan

According to the Taiwan Economic Daily News on September 7th, the construction of TSMC's plant in Kumamoto, Japan is nearing completion. At the Investment Forum for Enterprises Going to Japan hosted by Citibank, Katsuo Kudo, the chief examiner of the Kumamoto Economic Bureau, stated that three industrial sites have been developed and prepared in Kumamoto City, with facilities expected to be constructed as early as 2025. The total area of these industrial sites is approximately 480,000 square meters. As for whether TSMC will establish its second factory in Kumamoto, it is still under evaluation, and Kumamoto is awaiting TSMC's decision before determining if the factory will be located there.

Regarding the investment effects brought about by TSMC's presence in Kikuyo-cho, Kumamoto Prefecture, Katsuo Kudo estimates that it can generate a total investment value of 4.3 trillion yen over the next 10 years, and it has already stimulated the advancement of many supply chains. Yang Mingxiang, the General Manager of Citibank, mentioned that due to factors such as supply chain restructuring and geopolitical tensions, countries like Japan actively seek to attract TSMC and UMC to establish factories. It is currently known that at least 35 supply chain manufacturers are either planning or have followed TSMC's investment in Japan.

Industry Trends

2. Zhongke Ke Kong's 'Intelligent Computing Next Generation Artificial Intelligence Open Innovation Service Platform' approved for establishment

On September 7th, Zhongguancun Online reported that Zhongke Ke Kong's application for the establishment of the "Intelligent Computing Next Generation Artificial Intelligence Open Innovation Service Platform" was approved in the first batch of 25 "National New Generation Artificial Intelligence Public Computing Power Open Innovation Platforms (including those under construction)" announced by the Ministry of Science and Technology. The construction of national public computing power open innovation platforms for new generation artificial intelligence is an important part of the "National Development Plan for New Generation Artificial Intelligence" (State Council [2017] No. 35). These platforms provide inclusive computing power for technological innovation and industrial intelligent transformation, serving as important carriers for theoretical innovation, industrial promotion, talent aggregation, and ecosystem construction to better serve the innovation of artificial intelligence and the economic and social development of our country.

The Intelligent Computing Next Generation Artificial Intelligence Open Innovation Service Platform, led by Zhongke Ke Kong, is planned and constructed based on a "one center, multiple platforms" architecture. The "one center" refers to the intelligent computing center, which integrates a series of hardware and software infrastructure to realize the production, aggregation, scheduling, and release of computing power. The "multiple platforms" mainly promote the innovative development of artificial intelligence applications and industries through data and ecosystem platform operations. This includes the data sharing platform (for basic technology research and computing power interconnection) and the industry development platform (for application incubation and industry promotion), among others.

3. Tesla warning: Global factory shutdowns will lead to a decline in production and delivery volumes in the third quarter

NetEase Technology, September 7th - Despite the recent release of the refreshed version of Model 3 that could boost Tesla's profits, the company's performance in the third quarter may fall below expectations. Emmanuel Rosner, an analyst at Deutsche Bank, revealed in a report that Tesla issued a warning during an investor conference held in Munich, Germany. Tesla experienced some planned global factory shutdowns and upgrades in the third quarter, which could limit production and delivery volumes. Rosner commented that the market's average expectation for Tesla's third-quarter delivery volume is expected to be flat compared to the second quarter, but there is a downside risk.

Rosner believes that considering Tesla's continued discounting of inventory cars and the limited effectiveness of cost-saving measures, the company's profit in the third quarter is at risk. Tesla stated that demand for the new Model 3 might stabilize after the third quarter. On the day the report was released, Tesla's stock price fell by nearly 4.5% during early trading. The stock closed at $251.92 per share, down 1.78%. Tesla CEO Elon Musk had previously mentioned during the second-quarter earnings call that if the economic environment continues to deteriorate, Tesla may continue to lower car prices to ensure sales volume.

To be continued...