WEEKLY NEWS

1. Hungary Accelerates the Development of the EV Industry

The Hungarian government recently announced the implementation of a subsidy plan valued at 60 billion HUF (approximately $174 million) to promote the widespread adoption of electric vehicles.

As part of the Hungarian government's subsidy plan for electric vehicles, over the next two and a half years, the government plans to invest 30 billion HUF in the construction of 170 high-capacity charging stations across the national highway network. An additional 30 billion HUF will be allocated as subsidies for sole proprietorships, vehicle-sharing companies, and taxi drivers purchasing electric vehicles, small electric vans, or electric pickup trucks.

The share of electric vehicles in Hungary's new car market has seen rapid growth this year. Data indicates that in the first quarter of this year, the market share of electric vehicles increased from 4.4% to nearly 6%. Some industry insiders suggest that a 5% market share represents a critical threshold for the development of the electric vehicle industry within a country. This signifies the onset of widespread adoption, with consumer technology preferences poised for rapid transformation.

Comment: Notably, several major electric vehicle and battery manufacturers from China, including CATL, BYD, and EVE Energy, have entered the Hungarian market, bolstering Hungary's electric vehicle industry development.

2. China's Home Appliance Exports to Return to Growth This Year Driven by Emerging Markets

Home appliance exports from China soared over 13% to USD7.24 billion in November from a year earlier, up for the fourth consecutive month. In the first 11 months of the year, the figure rose 2.8% to USD80.37 billion from the same period last year, and it is poised for annual growth.

Comment: This year, the growth rate of China's household appliance exports to Europe and the United States has slowed down, prompting the industry to actively seek new growth opportunities. On one hand, there is an expansion into emerging markets along the Belt and Road Initiative in Southeast Asia, the Middle East, and Africa, alongside the development of green products such as heat pumps. Simultaneously, leading Chinese household appliance enterprises continue to enhance their global supply chain layout while steadily increasing overseas production bases.

3. Google Launches AI System MedLM Focused on Healthcare

Google stated that an early user of MedLM, HCA Healthcare, has been testing the model alongside physicians to assist in drafting patient notes in hospital emergency rooms. Another testing company, BenchSci, has integrated MedLM into its "Evidence Engine" for identifying, classifying, and arranging new biological markers.

Google, along with key competitors Microsoft and Amazon, is contending for dominance in the healthcare AI market, projected to potentially be worth hundreds of billions of dollars by 2032.

Recently, Amazon unveiled AWS HealthScribe, utilizing generative AI to transcribe, summarize, and analyze records of doctor-patient conversations. Meanwhile, Microsoft is experimenting with various AI healthcare products, including a medical assistant application built on large-scale language models.

Comment: Market observers remain cautious about this technology due to the mixed impact of AI in healthcare. For instance, Babylon Health, an AI startup supported by the UK's National Health Service (NHS), faced scrutiny over claims that its disease diagnosis technology outperformed doctors. Additionally, IBM suffered losses and had to divest its AI-focused Watson Health division due to technical issues leading to deteriorating client relationships.

4. Modest Growth for the Global MLCC Market is Predicted with a 3% Increase Projected in 2024

In 2023, the global demand for MLCC (Multi-Layer Ceramic Capacitors) is estimated to experience a modest annual growth rate of approximately 3%, standing at?an?expected?demand of about 4.193 trillion units, as indicated by TrendForce's report. The industry is transitioning into a phase of slower growth with limited expansion opportunities. The primary application markets for MLCCs include smartphones, automobiles, and PCs. Given the uncertain global economic landscape, both OEMs and ODMs are adopting a cautious outlook on market conditions. It is projected that the demand for MLCCs will marginally increase by roughly?3% in 2024?to?around 4.331 trillion units.

Comment: MLCC suppliers are facing lower-than-expected demand for seasonal orders, and concerns persist regarding the sustained impact of a weakened global economy in the first half of 2024 on the market's growth momentum.

5. International giants?to expand?their capacity in power semiconductors?like?Rohm and Toshiba

Recently, major Japanese electronic component manufacturers, Rohm Semiconductor and Toshiba, announced a statement confirming a substantial joint investment of around $2.7 billion aimed at co-producing power chips. This collaboration marks their first joint initiative since Rohm's involvement in the acquisition of Toshiba for $14 billion.

According to the statement, Rohm and Toshiba will intensively invest in silicon carbide (SiC) and silicon (Si) power devices, respectively, to significantly bolster their supply capabilities and leverage each other's production capacities. Rohm is slated to?allocate nearly $2.037 billion?for its dominant SiC wafer production and to?establish a new factory in Miyazaki Prefecture in the southern part of Kyushu Island. Meanwhile, Toshiba intends?to plunge?about $698 million?to build a state-of-the-art 300mm wafer manufacturing facility in Ishikawa Prefecture in central Japan.

Comment: In the realm of power devices, Japanese manufacturers including Toshiba, Rohm, Renesas, Mitsubishi Electric, Fuji Electric, and Resonac possess strong global competitiveness. These companies have been actively expanding their presence in the power semiconductor area?in recent years.

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