US export restrictions strengthen China’s resolve for innovation

US  claws at China's chip industry fanning flames on tech confrontation. Cartoon: Carlos Latuff

Despite the challenges posed by the US-led technological blockade and various forms of international pressure, confidence in China's semiconductor industry has markedly strengthened, driven by encouraging developments and substantial policy support.

The CSI Semiconductor Index surged to a gain of 6.84 percent on Monday, touching the highest level since December 2021, while the CSI Integrated Circuits Index's gain stood at one point at 5.44 percent on Monday.

The significant gains on Monday came right after the news over the weekend that the US Department of Commerce had sent a letter to TSMC imposing export restrictions on certain sophisticated chips - of 7-nanometer or more advanced designs - destined for Chinese mainland customers, the South China Morning Post reported. 

Surprisingly, the market's initial reaction far exceeded many analysts' expectations. Rather than exhibiting panic, investors responded with optimism, believing that this external pressure would serve as a catalyst for accelerating self-reliance and fostering independent innovation among Chinese mainland companies in the semiconductor sector. 

This positive market response reflects an affirmation of the progress made by China's semiconductor industry and also underscores the high expectations surrounding its potential for development across various dimensions, including but not limited to technological innovation as well as the optimization and upgrading of the industrial supply chain.

In recent years, the US has continuously stepped up export controls on advanced technology and relevant products to China, presenting significant challenges for the Chinese semiconductor industry. 

However, it is precisely in facing such adversity that Chinese semiconductor companies have demonstrated remarkable resilience and self-development capabilities. In the face of external pressures, the self-sufficiency rate of China's semiconductor industry has been steadily increasing. 

If anything, this trend indicates that China's position in the global semiconductor industry is gradually improving and reflects the acceleration of China's independent innovation and localization processes in the semiconductor field.

As the global semiconductor market is projected to exceed $1 trillion by 2030, the growth potential in the Chinese market is significant and cannot be ignored, offering substantial opportunities for independent innovation in China's semiconductor industry. 

While ramping up research and development (R&D) efforts and promoting domestic production, China's semiconductor industry is also accelerating its procurement of semiconductor equipment. According to the latest data from SEMI, China's spending on chip manufacturing equipment reached a record-breaking $25 billion in the first half of 2024, surpassing that of countries such as the US and South Korea. 

Amid a global economic slowdown, China is the only country where spending on chip manufacturing equipment continued to increase year-on-year in the first half of this year. The figures underscore the determination of the Chinese semiconductor industry to enhance its production capacity and technology.

While Chinese semiconductor companies have made notable strides in the low- to mid-end market, it is essential to acknowledge that significant challenges remain for breakthroughs in semiconductor technology. The heightened US export controls, although strengthening China's resolve to carry out independent innovation in the short term, present a substantial long-term challenge for the Chinese semiconductor industry - that is, achieving advancements in high-end technology.

For example, there remains a significant gap between China's technological capabilities and the world's most advanced lithography equipment. If breakthroughs in core semiconductor technologies, such as domestically produced lithography machines, do not materialize as anticipated, it could negatively affect the capacity expansion and production plans of domestic chip manufacturers.

The journey for Chinese semiconductor companies in the high-end sector remains long and arduous. On the one hand, there is a need to continue increasing R&D investment, focusing on breakthroughs in core technologies and enhancing self-controllable capabilities. This requires not only the efforts of the companies themselves but also support from the government, universities and research institutions. On the other hand, it is also necessary to strengthen international cooperation, participating in the development of the global semiconductor industry chain.

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Shrinking homes, rising prices

                                                                                                                    CLICK TO ENLARGE

PETALING JAYA: More young property buyers, especially those about to start their own families, may be forced to purchase their first homes in the outskirts of the Klang Valley, such as Rawang and Dengkil, as residential properties in prime city locations suffer from “shrinkflation”.

Shrinkflation refers to the sustained increase in property prices even though new units are smaller than they used to be.

While analysts and industry observers generally welcome Budget 2025’s homeownership measures, the consensus is that more needs to be done because many younger generation workers still find it difficult to buy their first property.

Licensed financial planner Stephen Yong said the supply of affordable housing, particularly in urban areas with manageable commutes, is limited.

ALSO READ: Homes beyond the reach of most M’sians

“Buyers would usually need to save up to 25% of the property’s price to pay for costs like down payment, legal fees, renovations and furnishing – all of which pose a considerable financial burden.

“Young Malaysians also encounter hurdles in securing housing loans due to lower income levels, rising expenses and strict debt service ratio requirements.

“This difficulty is even more pronounced for freelancers and gig economy workers, as banks often impose stricter conditions on applicants without stable, predictable incomes,” said Yong, who is also the executive director of Wealth Vantage Advisory.

The National House Buyers Association (HBA) opined that there is a need to define “affordable housing” to ensure the term is “not abused” by property developers who deem prices of RM500,000 as “affordable”.

ALSO READ: ‘Lock in perks for higher-priced homes’

Its honorary secretary-general Datuk Chang Kim Loong said the government has previously reiterated that affordable housing must meet three criteria: for it to be priced between RM150,000 and RM300,000; must have a minimum built-up of 800sq ft (excluding balcony space) and have at least two bedrooms; and must be located in areas with good public transportation links and amenities.

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“Whatever schemes are introduced will not make houses affordable if prices are not checked and costs (of doing business) are not addressed.

“Let’s face it, owning a house is beyond the reach of most Malaysians. We need to address the root cause and not pander to parties that caused the hike.

“HBA hopes that the current Housing Minister will always put the interest of the rakyat and country first before the interest of housing developers,” said Chang.

Rahim & Co International Sdn Bhd estate agency chief executive officer Siva Shanker said he welcomes Budget 2025 measures to promote homeownership, especially first-time buyers.

“However, the measures announced are not substantial enough,” he said.

ALSO READ: Tax relief timing for first-time home buyers is crucial

Among the measures announced in Budget 2025 was a RM5bil step-up financing scheme introduced under the Housing Credit Guarantee Scheme (SJKP), which offers a lower repayment rate in the first five years of the mortgage term.

SJKP will also guarantee loans for first-time home buyers of up to RM500,000 for homes developed on wakaf land. To support individuals purchasing their first home, Budget 2025 also proposed an individual tax relief on mortgage interest payments.

There is also a tax relief of up to RM7,000 for residential properties valued up to RM500,000, while a relief of up to RM5,000 will be given for residential properties priced between RM500,000 and RM750,000.

This relief can be claimed for three consecutive years of assessment on sale and purchase agreements completed between Jan 1, 2025, and Dec 31, 2027.

Siva said the real problem affecting first-time homebuyers, especially the bottom 40% income earners (B40), is the difficulty in securing a down payment for the housing loan.

“When you apply for a 90% housing loan but the bank only approves 80%, it means you need a down payment of 20% from the house value. Many people don’t have the cash in hand.

“Perhaps the government can consider a policy where banks will provide 100% loans for first-time B40 homebuyers,” he added.

Malaysian Youth Council executive committee member Eow Shiang Yen said Budget 2025’s step-up financing scheme indicates the government’s commitment to easing the financial burden of the youth.

“However, the success of this scheme requires interactions of other relevant components such as improved financial literacy, building passive and secondary incomes, relevant competence development and competitive salaries,” said Eow.“The youth still need to cope with increasing living costs and other expenses. A strict supervision and ongoing enforcement are also required to ensure that initiatives such as People’s Residency Programmes, People’s Housing Projects, and Rumah Mesra Rakyat are not misused.”

Yong concurred with Eow on the need for financial literacy to make homeownership a reality for young Malaysians.

“In addition, incentives like stamp duty reductions, first-time homebuyer grants, and flexible loan structures with extended tenures would make homeownership more accessible,” he said.

Commenting on the proposed tax relief on mortgage interest payments, Chang said it should be given to all existing homeowners with outstanding housing loans, not just first-time buyers.

The three-year tax relief should start from the date of property handover instead of the date of sale and purchase agreement, he said.

“The tax relief on interests should be applied strictly for first-time buyers irrespective of purchasers from housing developers or from the secondary market or sub-sale,” he added.

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Regional alliance drives semiconductor growth

 

(From left) EY Shanghai partner Derick Yap, InvestPenang chief executive officer Datuk Loo Lee Lian, Wang, Zairil, Wong, IBM Malaysia general manager Dickson Woo and Shanghai Fengmi Cloud Media Technology Co Ltd chairman Steven Huang launching 2024 Asia-Pacific Semiconductor Summit and Expo in Penang.

STRONG regional partnerships can drive growth, innovation and advancements in the semiconductor sector.

By leveraging each other’s expertise and ecosystems, stakeholders will be better positioned to stay at the forefront of this rapidly evolving industry.

Penang infrastructure, transport and digital committee chairman Zairil Khir Johari said this while launching 2024 Asia-Pacific Semiconductor Summit and Expo (APSSE) in Penang.

The recent two-day event held at Setia SPICE Convention Centre in Bayan Lepas, Penang, brought together over 30 exhibitors and 600 delegates from nine countries.

It was organised by Malaysia Semiconductor Industry Association (MSIA) and Penang government, in partnership with Shanghai Fengmi Cloud Media Technology Co Ltd.

Zairil said the semiconductor industry was the backbone of the modern economy, powering everything from smartphones to electric vehicles and machinery.

“There is almost nothing today that doesn’t have a chip in it.

“And with changes brought on by the 4th Industrial Revolution, potential applications would only continue to expand.”

He said the global semiconductor industry was valued at US$544bil (RM2.36tril) in 2023, and this was projected to exceed US$1tril (RM4.34tril) by 2030.

“There are opportunities for everyone, which makes events like APSSE 2024 a good platform for industry players and government to exchange ideas and explore collaborations,” Zairil said in his opening address.

He highlighted the long-standing and successful collaborations between Malaysian and Chinese firms as proof that such regional partnerships could be mutually beneficial.

“Indeed, 2024 marked the 50th anniversary of bilateral diplomatic relations between the two countries.

Zairil (front, centre), Wong (second from right) and other delegates observing a virtual reality application by one of the exhibitors.

“Around half of APSSE 2024’s exhibitors are from China.

“Together, we can drive innovation, enhance global supply chain resilience and shape the future of the semiconductor landscape.

“Malaysia is committed to deepening economic ties with China, especially in advancing technologies such as semiconductors, electric vehicles and green energy,” he added.

Zairil also praised various stakeholders for keeping the industry resilient in spite of various challenges in recent years, such as the pandemic and global geopolitical tensions.

“We have long been a key player in the semiconductor value chain, contributing approximately 13% of global assembly, testing and packaging. Of that number, almost half comes from Penang,” he said.

From 2019 to 2023, Zairil revealed that Penang attracted RM170bil of foreign direct investments, which was more than double the preceding decade.

“This showed how much growth was achieved in the last five years.

“We have become a trusted partner of many leading global firms,” he added before touring exhibitor booths in the arena.

MSIA president Datuk Seri Wong Siew Hai said the semiconductor industry was a cornerstone of the local economy, contributing over 40% of total exports in the electronics sector.

“With over 50 years of experience in the industry, a strategic location, strong ecosystem, cost-competitiveness, skilled talent and business-friendly government, we have been able to attract billions of ringgit in investments from tech giants across the world.

“But competition is intense and we must keep pace.

“Government initiatives like the National Semiconductor Strategy (NSS) and New Industrial Master Plan (NIMP) 2030 will allow us to move the industry into higher value areas.

“MSIA recently launched the Advanced Technology Equipment Cluster (ATEC) to consolidate expertise to meet ever changing demands and keep us as a market leader,” said Wong.

He noted that APSSE 2024 was the first time many of the participating Chinese firms had exhibited outside their country.

He said most people took it for granted, but everything they use had semiconductor components of varying complexities inside.

“Mobile phones and smart TVs are the most obvious examples. Other things like your air-conditioner remote, ceiling fans, water heater and even the thermal flask you use to make a cup of coffee, need such components to operate.

“An electric vehicle has over 3,000 semiconductors.

“It’s a key component of green energy. If you live in a rural area without running power, the solar panels that allow you to power things also need semiconductors.

“Go to any hospital and all the medical devices used to test you have lots of semiconductors inside.

“Global e-commerce would not be possible either without these tiny chips.

“The only difference is that we’re constantly coming up with newer materials that allow each piece to perform more functions at a lower cost,” Wong added.

ACM Research (Shanghai) Inc chairman Dr David Wang Hui said such globalisation would continue to be a fundamental driving force for the industry.

“Many Chinese companies are interested in coming to Malaysia.

“This would not only bring investment and create local jobs, but also drive innovation, technology, product quality and better manufacturing systems,” he added.

The APSSE event featured a series of panel talks, with topics on “Global Semiconductor Outlook”, “Transitioning from Local to International Outbound Investments”, “Artificial Intelligence”, “Asia-Pacific Semiconductor Strategies”, “Advancing ESG Through Innovations”, “Intellectual Property”, “Advanced Packaging” and “Strategies for STEM Talent Development”.

Business matching sessions and tours of several industrial sites were also held.

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Web design WOES, function needs come before form, beautiful and fancylooking

 
In the era of ai-enhanced design, experts caution that businesses often prioritise beauty over functionality, resulting in stunning websites that don’t drive sales.

Why Your Pretty New Homepage Is Probably a Waste of ...

Why Your Pretty New Homepage Is Probably a Waste of Money 

A pair of web design experts with decades of experience between them explain why most homepage redesigns fail miserably, especially now. 

Say you’re searching the web one day and you come across a truly beautiful website. The image is striking, the copy inspirational, the design meticulous. You could frame the thing and hang it above your couch. Are you likely to click and buy whatever that page is selling? 

Not according to veteran designer and author Michal Malewicz, who has been designing websites for companies large and small for more than 20 years. 

Thanks to an explosion of image generators and other fancy new tools, the web has recently become chock-full of extremely pretty websites that do a terrible job of actually selling anything, he argued on Medium recently. 

He and other experts insist that it’s the latest AI-fueled version of a problem as old as the web — business owners wasting tremendous amounts of money on ineffective but beautiful websites. And any entrepreneur who actually wants to make money should be warned.  :42 

Wasting money on fancy homepages is an internet tradition

Bad homepages are, of course, nothing new. Elena Verna, a startup veteran who worked in growth roles at companies like SurveyMonkey and Dropbox for 15 years before becoming an entrepreneur herself, has written about this problem in her newsletter, Elena’s Growth Scoop.

Over the course of her career, she has seen more than her fair share of failed homepage redesigns. “What usually happens?” writes Verna. “A multi-month effort ensues, involving everyone and their mother’s opinions, and the result often doesn’t fail to lift sign-ups — it can crash them.” 

The problem, she explains, is two-fold. One, many potential customers make up their mind about a purchase long before they go Googling homepages, meaning the expense and effort of these huge redesign projects often fails to move any meaningful needle. 

But also, when companies redesign their website they generally want to make them more beautiful and fancy-looking. Verna’s word for this is “aspirational,” and she claims it rarely works out. Nice-looking words and images usually just end up confusing those looking to make a purchase. 

Across the many, many redesigns Verna has encountered, “I’ve never seen one that had a major positive impact,” she says. 

Why the problem is worse now 

All of which is a long-winded way to confirm that businesses have been wasting money on bad homepage designs basically since there were homepages to design. But according to Malewicz’s detailed Medium post, the problem is more acute these days for two reasons: technology and design trends. 

Like Verna, he too has observed that business owners have long fallen into the trap of prioritizing good looks over results. 

“When making websites for clients, we may think they want to get as many sales as possible. After 25 years of doing that, I can assure you it’s mostly not the case,” he writes. “Regular people treat design as close to art. They want a pretty painting on their domain most of the time.”

The job of the designer is, in part, to talk them out of “just pretty” in favor of effective and pretty. But recently, many designers have been seduced by a new rage for artistic, inspirational, and animated homepages and forgotten this basic truth. 

“Currently we see a trend of pretty images merged with mediocre UI exploding on social media,” cautions Malewicz. 

He signals out a few particular examples for constructive criticism in his post. If you’re actively thinking about revamping your website, I’d recommend you take time to read his whole analysis. But the bottom line for business owners is a simple warning. 

Devoting a lot of time and money to creating a more eye-catching website has always been seductive — it seems like such a straightforward way to grow your business. And it’s even more seductive with all the fancy new tools designers have to play with at the moment. 

But if you care about results more than artistic merit, it’s also almost sure to disappoint. Pretty is nice, but function needs to come before form. 

SAY you’re searching the Web one day and you come across a truly beautiful website. The image is striking, the copy inspirational, the design meticulous. You could frame the thing and hang it above your couch. Are you likely to click and buy whatever that page is selling?

Not according to veteran designer and author Michal Malewicz, who has been designing websites for companies large and small for more than 20 years.

Thanks to an explosion of image generators and other fancy new tools, the Web has recently become chock-full of extremely pretty websites that do a terrible job of actually selling anything, he argued on Medium recently.

He and other experts insist that it’s the latest Ai-fuelled version of a problem as old as the Web – business owners wasting tremendous amounts of money on ineffective but beautiful websites. And any entrepreneur who actually wants to make money should be warned.

The tradition of fancy homepages

Bad homepages are, of course, nothing new. Elena Verna, a startup veteran who worked in growth roles at companies like Surveymonkey and Dropbox for 15 years before becoming an entrepreneur herself, has written about this problem in her newsletter, Elena’s Growth Scoop.

Over the course of her career, she has seen more than her fair share of failed homepage redesigns. “What usually happens?” writes Verna. “A multi-month effort ensues, involving everyone and their mother’s opinions, and the result often doesn’t fail to lift sign-ups – it can crash them.”

The problem, she explains, is two-fold. One, many potential customers make up their minds about a purchase long before they go Googling homepages, meaning the expense and effort of these huge redesign projects often fails to move any meaningful needle.

But also, when companies redesign their websites, they generally want to make them more beautiful and fancylooking. Verna’s word for this is “aspirational”, and she claims it rarely works out. Nice-looking words and images usually just end up confusing those looking to make a purchase.

Across the many, many redesigns Verna has encountered, “I’ve never seen one that had a major positive impact,” she says.

Why the problem is worse now

All of which is a long-winded way to confirm that businesses have been wasting money on bad homepage designs basically since there were homepages to design. But according to Malewicz’s detailed Medium post, the problem is more acute these days for two reasons: technology and design trends.

Like Verna, he too has observed that business owners have long fallen into the trap of prioritising good looks over results.

“When making websites for clients, we may think they want to get as many sales as possible. After 25 years of doing that, I can assure you it’s mostly not the case,” he writes. “Regular people treat design as close to art. They want a pretty painting on their domain most of the time.”

The job of the designer is, in part, to talk them out of “just pretty” in favour of effective and pretty. But recently, many designers have been seduced by a new rage for artistic, inspirational, and animated homepages and forgotten this basic truth.

“Currently we see a trend of pretty images merged with mediocre UI exploding on social media,” cautions Malewicz.

He signals out a few particular examples for constructive criticism in his post. But the bottom line for business owners is a simple warning.

Devoting a lot of time and money to creating a more eye-catching website has always been seductive – it seems like such a straightforward way to grow your business. And it’s even more seductive with all the fancy new tools designers have to play with at the moment.

But if you care about results more than artistic merit, it’s also almost sure to disappoint. Pretty is nice, but function needs to come before form. – Inc./tribune News Service

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