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Lianhe Zaobao: Nokia Reportedly Laying off Nearly 2,000 Employees in China

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, Finnish telecoms giant Nokia has laid off nearly 2,000 employees in China as part of the company’s cost-cutting plan announced last year. According to an internal report from Nokia, as of the end of 2023, the company employed approximately 10,400 employees in Greater China and 37,400 employees in Europe. Nokia’s layoffs in China account for about one-fifth of its workforce in the region.

China used to be Nokia’s second largest market, but in recent years, with the competition from China’s domestic communications manufacturers and the ban on Huawei in European and American countries, the number of contracts between Chinese telecom operators and Nokia and Ericsson has decreased. In 2019, approximately 27 percent of Nokia’s net sales came from Greater China. Now the company’s total share of the Chinese communications equipment market dropped to less than 5 percent.
Nokia also plans to cut 350 jobs in Europe as it continues to reduce costs. And Nokia’s rival Ericsson is also cutting costs (including layoffs) to combat sluggish sales.

Source: Lianhe Zaobao, October 18, 2024
https://www.zaobao.com.sg/news/china/story20241018-5180057

Briefings | | |   Geo-Strategic Trend Information/Technology

BBC Chinese: Huawei Announces HarmonyOS 5, Declares Independence from Android

BBC Chinese reported that Chinese telecommunication giant Huawei just announced its HarmonyOS 5.0 mobile operating system which, according to Huawei, is completely and independently developed domestically. Huawei claimed this is the third largest mobile operating system in the world, after iOS by Apple and Android by Google.

In the context of U.S. technology sanctions, the announced of HarmonyOS 5.0 attracted attention from experts who wonder whether Huawei can truly remove its past reliance on Android and even challenge the huge market share of Apple’s iOS ecosystem. Analysts expressed the belief that it is still very difficult for the HarmonyOS system to gain favor in markets outside China, and its expected popularity in China will not be seen as a surprise, as any new products by Huawei are backed by the Chinese government’s support for the electronics and semiconductor industry to be “independent.”

Previous HarmonyOS versions had compatibility with Android apps. Starting 5.0, Harmony apps must be rewritten in Huawei’s own programming language ArkTS. The extent to which app authors will support the new system remains to be seen, as the entire HarmonyOS Chinese market share is only 17 percent. At the moment, the new operating system has only completed testing and is not yet officially available in the global retail market.

Source: BBC Chinese, October 24, 2024
https://www.bbc.com/zhongwen/simp/business-69438203

Briefings | | |   Information/Technology

China Unveils Ambitious Space Science Development Plan for 2024-2050

On October 15, 2023, the Chinese Academy of Sciences, the National Space Administration, and the manned space engineering office jointly released China’s first national space science plan, titled “National Space Science Medium and Long-term Development Plan (2024-2050).”

The plan outlines five major themes and 17 priority development directions, along with a roadmap for space science development leading up to 2050, divided into three phases:

Phase One (up to 2027): Focus on operating the Chinese space station and executing manned lunar exploration, the fourth phase of lunar exploration, and planetary exploration missions. This phase aims to assess and initiate 5-8 space science satellite missions and produce several significant original outcomes with international influence.

Phase Two (2028-2035): Building on achievements from Phase One, this phase will maintain the operation of the space station and pursue additional scientific tasks, including manned lunar exploration, establishing a lunar research station, and exploring the outer solar system. About 15 space science satellite missions will be planned.

Phase Three (2036-2050): By this phase, China aims to reach a leading global level in key areas of space science. It will evaluate and implement 5-6 large-scale missions, along with approximately 25 medium-sized and opportunistic projects.

Overall, the plan aims to position China as a key player in global space science by establishing a comprehensive and ambitious framework for future exploration and research.

Source: Sputnik News (Russia), October 15, 2024
https://sputniknews.cn/20241015/1062052529.html

Briefings | | |   Information/Technology

India-Made iPhone 16 Set for Global Sales

Well-known Chinese news site Sina (NASDAQ: SINA) recently reported that India’s Minister of Electronics and Information Technology issued a statement saying Apple’s latest iPhone 16 will be produced in Indian factories and sold globally. Prime Minister Modi’s “Made in India” plan is currently promoting the creation of iconic products for the world. Apple has been working hard to move its supply chain to India. The Indian government is also encouraging more companies to manufacture locally in India, and has reduced the import tax on parts required for mobile phone production from 15 percent to 10 percent. Apple currently plans to produce more than 50 million iPhones in India this year, including the iPhone 15 and iPhone 16 series.

Previously, it was reported that the yield rate of Indian factories is only 50 percent, which is far from Apple’s standards, and the sanitary conditions of the manufacturing facilities are unqualified. However, Foxconn Chairman explained that the yield rate of iPhones produced in India is no different from that in China. The 50 percent yield rate refers to the production of iPhone cases manufactured in factories affiliated to the Tata Group, not the iPhone yield rate.

There are currently four foundries for the iPhone 16 series, namely Foxconn, Luxshare, Pegatron and Tata Group. Foxconn and Pegatron have factories in both China and India, while Luxshare only has factories in China and Tata only has factories in India. From the perspective of production location allocation, China and India already have a 1:1 ratio. However, as Apple requires Foxconn and other OEMs to invest in India, it is likely that by the time the iPhone 17 is released next year, India’s iPhone production capacity will surpass China’s.

Source: Sina, September 12, 2024
https://www.163.com/dy/article/JBSQMSK10511DG68.html

Briefings | | |   Geo-Strategic Trend Information/Technology

Xinhua: Starlink Helps US Navy Increase Internet Speed Twentyfold

Xinhua recently reported that the U.S. Navy will soon begin the full-scale deployment of SpaceX’s Starlink satellites. This will provide high-speed internet connections to all its bases and ships. Satellite internet connectivity is expected to facilitate naval operational improvements. Currently the U.S. Navy uses Department of Defense satellites for connectivity. However, the six geostationary satellites for Internet access provide slow connection speeds. To achieve faster speeds, the U.S. Navy recently began using Starlink and Britain’s Eutelsat OneWeb. Low-Earth orbit satellites can improve the Navy’s connectivity capabilities, with on-ship speeds expected to reach about 1Gbps. This new capability is called Sailor Edge Afloat and Ashore (SEA2) by the U.S. Department of Defense. SEA2 operates 20 times faster than any other satellite before. It’s worth noting that SEA2 received the cybersecurity certification that has never been issued to such services before. Rob Wolborsky, Chief Engineer at U.S. Information Warfare Systems Command, stated that “this is a once-in-a-lifetime transition, and we’re working to deliver it to the fleets as quickly and aggressively as possible.”

During the COVID-19 period, the U.S. Navy recognized the need for increased connectivity. Due to pandemic-era restrictions, ships were not allowed to dock in many ports across the globe, cutting them off from the rest of the world. The U.S. Navy is likely to receive Starlink access through the StarShield program, which was established under a contract signed last year between the Department of Defense and SpaceX to provide satellite Internet connections to the U.S. Armed Forces.

Source: Xinhua, September 5, 2024
http://www.xinhuanet.com/milpro/20240905/dc67d657e8ba43bd80fb5955475ffd5e/c.html

Briefings | | |   Defense/Military Information/Technology US-China Relations

CNA: TSMC Breaks Ground on German Factory

Primary Taiwanese news agency Central News Agency (CNA) recently reported that Taiwan’s TSMC recently held a groundbreaking ceremony in Germany to commence construction of its first ever wafer fab on the European continent. German Prime Minister Olaf Scholz attended the ceremony and delivered a speech. EU Executive Committee Chairman Ursula von der Leyen also attended, saying that the development represented a true win-win situation.

Earlier, the EU approved Germany’s subsidy plan for TSMC’s factory construction. Last year, TSMC announced that it would set up a joint venture with Bosch, Infineon and NXP in Dresden, Germany to jointly invest in the European Semiconductor Manufacturing Company (ESMC), with a total investment of approximately 10 billion euros. Scholz said semiconductors were key to Germany’s industrial survival and climate goals, and stressed the importance of increasing production in Germany to make Europe less dependent on other regions in global supply chains.

Germany provided a five-billion-euro subsidy plan to TSMC’s wafer fab joint venture. This is the largest amount of state subsidy currently granted under the European Chips Act, and it is also Germany’s first subsidy program. TSMC funded 70 percent of the ESMC private investment. Nearly 2,000 ESMC employees will be recruited locally.

In order to assist factory construction, hundreds of TSMC engineers will be dispatched to Dresden in the next three to five years. TSMC has launched talent training projects with universities and local governments in Germany. German students will be invited to Taiwan for training at universities and TSMC training facilities.

Source: CNA, August 20, 2024
https://www.cna.com.tw/news/afe/202408200361.aspx

Briefings | | |   Geo-Strategic Trend Information/Technology

HP Comments on Reports Saying That it Will Reduce Production Footprint in China

According to well-known Chinese news site Sina (NASDAQ: SINA), some recent media reports have said that HP was seeking to move more than half of its PC production out of China. HP responded by calling these reports incorrect. Instead, HP confirmed that “In China, HP’s PC manufacturing business still maintains a pivotal position.” However, HP also indicated in the same response that “to further enhance the resilience of the supply chain, we are actively optimizing our strategy and enhancing flexibility to better serve our global customer base.”

Earlier, Nikkei Asia reported that HP is considering moving more than half of its PC production out of China and setting up a “backup” design center in Singapore, citing “geopolitical risks.” The Nikkei Asia article did point out that the move is HP’s most aggressive move to “diversify its supply chain.” At present, most of HP’s PCs are produced in China. Nikkei Asia reported that HP is currently negotiating with suppliers on the migration and plans to achieve this target within two to three years. The company has even set an internal goal to eventually have 70 percent of its laptops produced outside of China. Nikkei Asia also reported that HP’s main destination for this relocation is Thailand. At least five HP suppliers are building new manufacturing plants or warehousing centers in Thailand.

Source: Sina, August 8, 2024
https://finance.sina.com.cn/roll/2024-08-08/doc-inchxefi8595209.shtml

Briefings | | |   Information/Technology US-China Relations

China Successfully Launches First Batch of Satellites for Massive Internet Constellation to Compete with Starlink

On August 6, China’s Long March 6 rocket was launched from the Taiyuan Satellite Launch Center, successfully placing the Qianfan Polar Orbit 01 satellite group (18 satellites) into the designated level of orbit.

According to Reuters, China intends to build a massive internet constellation to compete with the Starlink satellite network operated by U.S.-based SpaceX. Starlink is an expanding commercial broadband satellite constellation with approximately 5,500 satellites in space, providing service to consumers, businesses, and government agencies.

The recent Chinese rocket launches are part of the “Qianfan Constellation (千帆星座)” plan, also known as the “G60 Starlink” plan, which aims to deploy over 15,000 low-orbit satellites. The “Qianfan Constellation” is one of three “Ten-Thousand-Star Constellation” projects that China hopes will help narrow its gap with SpaceX. The Qianfan Constellation plan aims to launch 108 satellites this year, 648 satellites by the end of 2025, to provide “global network coverage” by 2027, and to complete the deployment of 15,000 satellites by the end of 2030.

Source: Xinhua, August 7, 2024
http://www.news.cn/milpro/20240807/c7833a3629cd4ba18d1c363d7d7c56ea/c.html

Briefings | | |   Information/Technology