Tech Roundup: PDD’s Bare-Knuckle Tactics Upend E-Commerce Landscape, SMIC Accelerates Capacity Buildout as Chip War Intensifies

The Tech Roundup provides an overview of prominent technology news in China and Asia [para. 1]. The briefing begins with a story about Temu, the international brand of PDD Holdings Inc., known for its affordable online marketplace and aggressive advertising strategies. Outside China, Temu has a strong presence, noted for its campaigns on platforms like Instagram and the Superbowl [para. 2]. However, in China, Temu has recently come under scrutiny due to merchant protests in Guangzhou. These merchants accuse it of imposing "after-sales fines" for product defects without substantiating such claims [para. 3]. Temu's parent company, PDD Holdings Inc., a well-known player in the Chinese e-commerce sector, only entered the market in 2015. It managed to become the most valuable e-commerce firm by leveraging group-buying and gamification tactics, even overtaking Alibaba Group Holding Ltd. last year [para. 4]. Despite its achievements, PDD faces criticism for harsh pricing strategies and dubious penalty systems, which are reportedly detrimental to merchants and disrupting the industry. For instance, data from a group of 100 Temu sellers indicate that the company has exacted fines totaling 142 million yuan. Other allegations point to a recommendation system that supports intellectual property infringement [para. 5].

Meanwhile, Pinduoduo's founder Colin Huang has re-emerged as China's richest person, as per the Bloomberg Billionaires Index. His fortune, which had plummeted by 87% due to the economic fallout from the COVID-19 pandemic and China's regulatory crackdown on private sectors, saw a reversal due to PDD Holdings Inc.'s international growth under the Temu brand. Huang's wealth is now estimated at $48.6 billion, surpassing bottling tycoon Zhong Shanshan [para. 7][para. 8][para. 9].

In another significant development, U.S. tech giant Intel has launched a new discrete graphics processing unit (GPU) designed specifically for electric vehicles (EVs) in China. The Intel Arc Graphics for Automotive aims to be commercially available by next year and promises to enhance the AI-driven cockpit experience and personalization features. This GPU adds to Intel's range of AI-enhanced automotive chips [para. 10][para. 11][para. 12].

Additionally, Semiconductor Manufacturing International Corp. (SMIC) is accelerating its capacity building in response to increasing restrictions by a U.S.-led multinational campaign that limits China’s access to advanced technologies. According to SMIC Co-CEO Zhao Haijun, the company is advancing at a faster pace than initially planned, motivated by geopolitical shifts in supply chains [para. 13]. The Chinese government has been urging companies to use domestically developed products to achieve self-sufficiency in strategic areas such as automotive chips. Although Zhao did not specify any customers, Huawei Technologies Co. Ltd. is implied to be a significant partner, especially after collaborating with SMIC to produce a 7-nanometer processor for its Mate series last year [para. 14][para. 15].

Finally, Malaysia and China are enhancing their collaboration in the semiconductor sector through the first Asia-Pacific Semiconductor Summit and Expo, planned for October in Penang, Malaysia. The event is organized by the Malaysia Semiconductor Industry Association and the China Electronic Production Equipment Industry Association. It aims to bolster Malaysia's chip industry and strengthen Beijing’s supply chains. Malaysian exhibitors are expected to constitute around 40% of the participants, with 30% coming from China and the remaining 30% from other regions [para. 16][para. 17][para. 18][para. 19].