Key facts
- Sony and TSMC plan to jointly produce next-generation image sensor chips in Japan, with production potentially starting as early as 2029.
- The joint venture will be approximately 60% owned by Sony and 40% by TSMC.
- China's Unitree, a high-profile humanoid robot maker, has attracted significant retail investor interest ahead of its Shanghai IPO.
- China's CXMT, a memory-chip maker, has been added to the MSCI China All Shares Index.
- ByteDance is reportedly training an AI model with up to 10 trillion parameters.
- China's 'national team' of state-owned investment companies intervened in the market with $8.9 billion to support stocks.
Sony Group and Taiwan Semiconductor Manufacturing Co. (TSMC) are set to establish a joint venture in Japan to mass-produce advanced image sensor chips, potentially as early as 2029. This collaboration aims to supply sharper sensors for devices like Apple's iPhone and support the growing demand for "physical AI" in robots and vehicles.
The joint venture, expected to be about 60% owned by Sony and 40% by TSMC, is anticipated to be formed by the end of fiscal 2026. For Sony, this move is strategic for maintaining its lead in the CMOS image sensor market against rivals like China's OmniVision and South Korea's Samsung, while adopting a 'fab-light' manufacturing model. TSMC, in turn, diversifies its production and strengthens its presence in Japan, betting on future AI chip demand.
In China, the technology sector is experiencing a surge in interest, particularly in hardware applications of AI. Unitree, a prominent maker of humanoid robots, has seen exceptionally high retail demand for its upcoming Shanghai IPO, with an allocation rate below 0.0181%. This enthusiasm reflects a broader trend of investment shifting from AI models to physical systems that can deploy AI, despite U.S. import bans on Chinese humanoids due to security concerns.
The rally extends to other hardware segments, with Chinese memory-chip maker CXMT being added to the MSCI China All Shares Index. This inclusion highlights the company's rapid ascent from being a target of U.S. sanctions to a significant index constituent.
Meanwhile, China's ByteDance is reportedly training an AI model with up to 10 trillion parameters, a scale that could rival advanced systems like Anthropic's Mythos 5. While parameter count is not the sole determinant of AI capability, this effort underscores China's ambition to compete with and potentially surpass U.S. AI leaders.
China's stock market has seen volatility in AI valuations, prompting intervention from state-owned investment firms. Around July 19, these entities deployed $8.9 billion to support the market, particularly chip stocks. This intervention has provided temporary stability, with CXMT shares experiencing a significant debut surge and the Shanghai Composite showing resilience compared to declines in South Korea and Japan. ETFs tracking Chinese tech boards also saw substantial net buying in July.
Looking ahead, upcoming listings of YMTC, Unitree Robotics, and AI company MiniMax are expected to further test the tech-heavy market. Policymakers are reportedly focused on preventing sharp sell-offs and margin calls, reminiscent of the 2015 market crash.
In the realm of critical minerals, China's dominance in rare-earth exports is prompting global efforts to establish alternative supply chains. India is investing $765 million in domestic rare-earth magnet production, though challenges remain in building a complete supply chain and securing refining capacity. Australia is attracting U.S. investment, with Sunrise Energy Metals receiving a conditional $400 million loan for its scandium project. However, China's established advantage in refining and processing these materials remains a significant hurdle for other nations.