Daily Tech Roundup: BYD Hits Accelerator on Smart Driving, ASML China Sales Surge as U.S. Threatens Tighter Curbs

The Daily Tech Roundup brings attention to significant developments in technology across Asia, emphasizing China's tech landscape.

BYD Co. Ltd., initially a battery maker, has transformed into a leading electric vehicle manufacturer, competing closely with Tesla Inc. in the automotive market. Initially focused on handset and laptop batteries, BYD pivoted to automobiles in 2003 by acquiring a small automaker and ventured into new energy vehicles in 2008 with the F3DM plug-in hybrid [para. 2][para. 4]. Despite its past, BYD now aims to emulate Tesla's success in smart driving technology as the industry grows more competitive [para. 3].

ASML, a Dutch company renowned for manufacturing lithography machines essential for semiconductor production, reported surging sales to China in the second quarter, which accounted for nearly half of its revenue [para. 8]. This surge highlights the limited immediate impact of current U.S. export restrictions. However, the Biden administration is considering stricter curbs to prevent China's access to advanced semiconductor technology [para. 9].

In another part of the semiconductor industry, U.S. sanctions have led to a price war among Chinese chipmakers producing lower-end chips. These firms have increased the production of mature process chips, typically used in a wide range of electronic devices but not in high-end smartphones or AI technology [para. 11]. This escalation has resulted in a glut and subsequent price war, with more production capacity expected to come online soon [para. 12].

Xiaomi Corp. emerged as the fastest-growing brand among the top five global smartphone vendors in the second quarter of 2024. According to a Counterpoint Research report, Xiaomi's market share rose to 14% from 12% year-on-year, maintaining its position as the third-largest smartphone seller globally [para. 14]. The company's growth has been attributed to the popularity of its Redmi 13 and Note 13 series and a streamlined product portfolio, alongside a stronger push for premium models [para. 15].

Hong Kong is set to introduce a licensing regime for stablecoin issuers. Stablecoins, which track the price of fiat currencies, will require issuers to obtain a license from the Hong Kong Monetary Authority. This new regulatory measure aims to ensure such stablecoins are fully backed by reserve assets, with issuers mandated to publish monthly proofs of these assets, verified by third-party auditors [para. 16][para. 17]. Christopher Hui, the Secretary of the Financial Services and the Treasury Bureau, mentioned that this regime will bolster Hong Kong’s regulatory framework for virtual assets [para. 18].

In summary, key industry players in Asia are navigating competitive landscapes and regulatory changes. BYD is striving to match Tesla’s advancements in smart driving technology [para. 3][para. 4][para. 5][para. 6], ASML faces geopolitical risks while thriving in Chinese markets [para. 8][para. 9], and Chinese chipmakers wrestle with price competition due to U.S. sanctions [para. 11] [para. 12]. Meanwhile, Xiaomi celebrates significant growth in the recovering global smartphone market [para. 14][para. 15], and Hong Kong moves to tighten regulations on stablecoins with new licensing requirements [para. 16][para. 17][para. 18].