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Below are news flashes for the week starting December 20, 2023.

1. Generative AI smartphone shipments are expected to exceed 100 million units in 2024

The smartphone industry is set to be revolutionized with the introduction of devices based on generative artificial intelligence. Counterpoint Research pointed out in its latest report "Generative AI (GenAI) Smartphone Shipments and Insights" that the next year will be a critical year for generative AI smartphones.

The report initially predicts that its shipments will exceed 100 million units in 2024. By 2027, GenAI smartphone shipments will reach 522 million units, with a compound annual growth rate of 83%.

The agency's definition of "generative AI mobile phones" is classified under the category of AI smartphones, which means that generative AI can be used to create original content and AI models can be run locally.

Institutions predict that Samsung may occupy nearly 50% of the market share in the next two years, followed by major Chinese OEMs such as Xiaomi, vivo, Honor and OPPO. Samsung earlier highlighted the use cases of its Galaxy AI on smartphones. This is an example of how OEMs can differentiate their upcoming smartphones, and GenAI will play a key role in this differentiation process.

2. China's Ministry of Commerce and Ministry of Science and Technology announced a list of prohibited export technologies: rare earth and integrated circuit technologies are included

On December 21, China’s Ministry of Commerce and Ministry of Science and Technology announced the “Catalogue of China’s Export Prohibited and Restricted Technologies”.

After the revision, the "Catalogue" was compressed from 164 items to 134 items, including 24 prohibited items and 110 restricted items.

The Ministry of Commerce pointed out that in accordance with the "Foreign Trade Law of the People's Republic of China" and the "Technology Import and Export Administration Regulations of the People's Republic of China", the "China's Export Prohibited and Restricted Technologies Catalog" is now announced and will be implemented from the date of publication. Announcements from the Ministry of Commerce and the Ministry of Science and Technology No. 38 of 2020 ("Adjustment Contents of China's Catalog of Export-Prohibited and Restricted Technologies") will be abolished at the same time. Technologies that are dual-use for both military and civilian use are subject to export control management.

It is understood that technologies that are prohibited from export in the Catalog are not allowed to be exported. Technologies that are subject to export restrictions are subject to license management. No export is allowed without permission. Technologies that are subject to free export are subject to contract registration management.

Among them, rare earth and integrated circuit technology are prohibited from export.

3. Toyota recalls 1.12 million cars, subsidiaries stop selling all models due to quality fraud

Toyota announced on the 20th that it would recall 1.12 million vehicles worldwide due to a sensor problem that may cause the passenger side airbag to fail to deploy correctly.

The automaker noted that the recall applies to certain 2020-22 gasoline and hybrid vehicles (HV), including Toyota's Avalon, Camry, Corolla, Highlander, RAV4, including the "Sienna" and Lexus' ES ” and “RX”.

Toyota explained that dealers will inspect the sensors and replace them free of charge if necessary. Owners of affected vehicles are expected to receive notifications in mid-February 2024.

On the same day, Toyota announced that its subsidiary Daihatsu had been found to have falsified safety tests and announced that it would stop selling all cars. It is reported that Daihatsu Motor is Toyota's small car division and produces many light vehicles that are very popular in the Japanese market.

It is understood that the third-party committee investigating quality violations at Daihatsu Industrial Co., Ltd. also issued a report on the same day, saying that the targets of quality violations expanded to almost all models, including Toyota Motor and other company brand vehicles, and there were 64 violations. car model. The investigation found that the airbag control units used by Daihatsu Motor in airbag testing of certain models were different from those used in publicly sold cars.

The third-party committee also pointed out that through the investigation, it discovered 174 new violations, including false records in documents, and the target models also include cars supplied to Mazda and Subaru in the form of OEM production. All 11 models currently on sale, including Daihatsu's Tanto, as well as 8 models including Toyota's RAIZE, 6 Subaru models, and 2 Mazda models, have been suspended from domestic shipments due to violations.

Toyota said reviving Daihatsu would require "fundamental reforms" and a review of its safety testing and certification operations.

4. Foxconn invests 500 million yuan to establish new energy vehicle industry company

On the evening of the 19th, Hon Hai Group announced that its Chinese subsidiary Foxconn New Business Development Group had invested RMB 500 million to establish Henan Foxconn New Energy Automobile Industry Development Company, with a shareholding ratio of 100%.

According to the announcement, Hon Hai Group subsidiary Hongfujin Precision Electronics (Zhengzhou) invested RMB 1.2 billion to increase capital in Foxconn New Business Development Group, and then Foxconn New Business Development Group invested RMB 500 million to establish Henan Foxconn New Energy Automobile Industry Development company. Hon Hai stated that the main purpose of this investment is long-term investment, mainly using its own funds.

5. BYD pure electric vehicle sales expected to surpass Tesla in fourth quarter

According to a recent global passenger electric vehicle sales tracking report released by Counterpoint, global passenger pure electric vehicle (BEV) sales increased by 29% year-on-year in the third quarter of 2023, driven by Europe and the expanding Southeast Asian market.

In the quarter, China's pure electric vehicle sales increased by only 11%, lower than the global average. But in overseas markets, Chinese brands sold more than 130,000 pure electric vehicles, a fourfold increase from the same period last year. According to the Counterpoint report, as the world's best-selling pure electric vehicle group, Tesla, BYD Auto and Volkswagen rank among the top three in the industry. Among them, BYD Auto (excluding Denza) has caught up with Tesla in sales and is expected to surpass Tesla in the fourth quarter and become the new global leader.

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