Taiwan's legacy chip sector contemplates future as China eats into share
When Taiwan's Powerchip Technology entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access to the promising Chinese market.
Nine years later, however, that Chinese foundry, Nexchip, has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing's localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels.
Nexchip is among Chinese foundries quickly winning market share in the crucial $56.3 billion industry of so-called legacy or mature node chips made on 28-nanometer technology and larger, a trend that prompted the administration of former U.S. President Joe Biden to initiate an investigation and is alarming Taiwanese industry.
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Kyodo News
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- Kyodo News
Young Japanese brewers promote sake in Beijing ahead of 3-day event
BEIJING - Young Japanese sake brewers promoted their products Thursday at the Japanese Embassy in Beijing ahead of a three-day event in the capital from the following day to pitch the drink in China, Japan's largest overseas market by value. At the "Sake Jump" event in Beijing, the second of its kind to be held outside of Japan following one held in Hong Kong in June, 23 brewers from 14 prefectures will showcase their sake. Shintaro Tsuruno, 36, representative of a brewery in Noto, Ishikawa Prefecture, said he decided to join the event as part of efforts to revive his brewery, which was devastated by a major earthquake that struck the Noto Peninsula in central Japan on New Year's Day in 2024. As his company jointly brewed sake with other makers following the quake, Tsuruno said he felt the need to turn to overseas markets. "I want to learn what kind of flavor Chinese consumers like and reflect their opinions back in Japan," he said. Li Peng, one of the Chinese organizers of the event, said he hopes more Chinese people will learn about sake so that it will be provided not only at Japanese restaurants but also in daily meals and parties, especially among urban youth. Japanese Ambassador to China Kenji Kanasugi pointed out that the number of Chinese tourists to Japan has been steadily increasing and the market for sake in China is expected to expand with those who tasted it in the neighboring country seeking it again after returning home. "I strongly hope people in the sake industry in Japan and China cooperate with each other and create new chances," the envoy said. In 2024, Japanese sake exports totaled some 43.5 billion yen ($300 million), with about 11.7 billion yen shipped to mainland China, according to official data.
The Diplomat
2 hours ago
- The Diplomat
How Bangladesh is Beckoning South Korean Capital
By leveraging its robust population, strategic geographic location, and a clear vision for digital transformation, Bangladesh is positioning itself as a transformative hub. Chief Adviser of Bangladesh's interim government Muhammad Yunus (right) shakes hands with Park Young-sik, South Korean ambassador in Bangladesh, during a meeting at Yunus' office in Dhaka, Bangladesh, November 4, 2024. Often overshadowed by its larger neighbors, Bangladesh is quietly positioning itself as a strategic economic power by attracting foreign direct investment (FDI). China, Bangladesh's largest trading partner, currently leads the charge with regard to investing in the country. It has announced plans to invest in two new special economic zones tailored for Chinese investors in manufacturing products such as textiles, ceramics, and renewable energy. However, South Korea's growing footprint in Bangladesh signals a greater strategic alignment that leverages Bangladesh's aspiration for digital transformation and both countries' desire for economic growth. With investments totaling around $1.56 billion, South Korea is currently ranked as Bangladesh's third-largest source of FDI. Its ranking has been improving year-on-year since 2023. This upward trend highlights Bangladesh's increasing appeal to South Korean investors. Political Challenges Amid Economic Potential Protests and unrest in 2024 led to the resignation of Bangladesh's longtime Prime Minister Sheikh Hasina and the appointment of Nobel laureate Muhammad Yunus as head of a caretaker government. While this political upheaval initially triggered hesitation among foreign investors, the subsequent promise of reforms under Yunus' government has resulted in renewed interest in the country, as evident from the near-2,500 participants in Bangladesh's Investment Summit 2025. Assuming Bangladesh sustains its current reform-minded trajectory, it will present a compelling value proposition for foreign capital, particularly from South Korea. Bangladesh's strategic location, young population, and growing economic potential continue to stand out despite its political challenges, with a focus on sectors like technology, renewable energy, and infrastructure. South Korean Investments in Bangladesh's Emerging Sectors South Korean investors have made significant inroads into Bangladesh's manufacturing and renewable industries, as well as emerging sectors like semiconductors and digital electronics. This diversification reflects a strategic move by Korean firms to tap into Bangladesh's evolving industrial landscape and growing consumer market. Recent developments underscore these trends. In April 2025, a delegation of Korean investors, including officials from LG, visited Bangladesh's Korean Export Processing Zone (KEPZ) in Chattogram. The KEPZ is a flagship economic zone hosting manufacturing and green energy production facilities. Notably, manufacturing conglomerate Youngone formalized investments in KEPZ's textile and solar energy facilities. Just one month earlier, in March 2025, Hyundai announced a partnership with DX Group to enter the Bangladeshi market for consumer electronics and appliances. Similarly, Samsung has been working with Bangladesh's Fair Group to manufacture electronics, including mobile phones, televisions, and air conditioners. These ventures signal Korea's growing footprint in Bangladesh in manufacturing, technology, and other industries, signaling a long-term commitment to the country's economic development. Bilateral Innovation Supporting Bangladesh's Growth Both the South Korean and Bangladeshi governments have been supportive of the startup ecosystem in Bangladesh. This can be seen through initiatives like the 2023 launch of a virtual desk platform in Bangladesh's embassy in Korea to attract IT-specific FDI to Bangladesh, as well as a joint effort between Bangladesh's ICT Division and the Korea Productivity Center to establish a mentoring initiative aimed at facilitating startup growth in Bangladesh. Official collaborations within other sectors, including healthcare, and the establishment of cross-border governmental standards, underscore the commitment of both governments to bilateral economic growth. These supportive governance frameworks have spurred the growth of cross-border startup ventures. One example is the Korean-founded food-tech startup, MFM Korea, which provides job opportunities for Bangladeshi women through resource recycling. Similarly, Chardike, a Bangladesh-created Korean products platform, highlights this organic interest in cross-border startup development. Beyond just startups, established enterprises are also leveraging the power of cross-border partnerships. In April 2025, Global Brand PLC, a Bangladesh-based IT product distributor, and Hyosung TNS, a Korean-based fintech provider, announced a partnership to modernize Bangladesh's banking infrastructure. Previously, South Korean giant Woori Bank also entered into partnerships with digital wallet startup bKash and Bankcomparebd, a Bangladesh product recommendation site. Unlocking Future Growth Bangladesh's economic evolution extends beyond its manufacturing roots, with its desire to transform into a digital economy presenting opportunities for South Korean and Bangladeshi startups alike, with key use-cases to include digital payments, e-commerce, and smart city infrastructure. A prime example of these synergies is Mirsharai, located in southeast Bangladesh, which is being developed into a National Special Economic Zone (NSEC) with a smart city emphasis by leveraging South Korea's expertise in smart city development. South Korea envisions transforming Mirsharai by 2028, drawing inspiration from successful coastal cities like Ulsan and Shenzhen, which have grown into significant industrial hubs and economic drivers. Key special economic zones like Mirsharai offer significant potential for startups and large enterprises alike. The relative proximity to both Chittagong's seaport and airport enables the city to be a self-sustaining digital ecosystem, with parallel growth tracks in both traditional goods and digital services. This example highlights just how important it will be for Bangladesh to leverage its digital economy alongside its manufacturing-based one. Therefore, it is key for Bangladesh to partner with Korean startups and enterprises alike to fully ensure economic growth and digital modernization. Conclusion In an increasingly complex and interconnected Indo-Pacific, Bangladesh is emerging as a dynamic and strategic partner, poised to play a significant role in Asia's next growth narrative. By leveraging its robust population, strategic geographic location, and a clear vision for digital transformation, Bangladesh is positioning itself as a transformative hub. For South Korea, deepening this engagement offers a vital opportunity to diversify its regional economic strategy, foster innovation, and contribute to the stability and prosperity of a crucial South Asian nation. This burgeoning partnership between Seoul and Dhaka exemplifies a mutually beneficial relationship that transcends trade, pointing toward a future of shared economic progress and strategic alignment in the Indo-Pacific. The views expressed in this article are personal. It does not contain information of an official nature, nor does the content represent the official position of any government, organization, or group.
The Diplomat
2 hours ago
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Indonesian State Investment Fund to Pursue Railway Debt Restructuring
Indonesia's new sovereign fund Danantara is working on a debt restructuring plan for the China-backed Jakarta-Bandung High-Speed Railway, which has left the country with a heavy debt burden. The $7.3 billion rail line, which links the capital Jakarta to the city of Bandung in West Java, began operations in October 2023. With a maximum speed of 350 kilometers per hour, the train, which is officially known as Whoosh, has cut travel time between the two cities from three hours to around 40 minutes. While the rail line recorded 2.9 million passengers in the first half of this year, a 10 percent increase on the same period in 2024, the project has created a considerable debt burden for the Indonesian government. Since its inception in 2015, the railway project has been spearheaded by PT Kereta Cepat Indonesia China (KCIC), a joint venture between a consortium of Chinese state-owned companies and a consortium of four Indonesian state-owned companies. Of the total estimated cost of $6 billion, 75 percent was contributed by a $4.5 billion loan from the China Development Bank, while the remaining 25 percent was contributed by Indonesian and Chinese shareholders in KCIC. However, the project experienced a series of delays and cost overruns due to the COVID-19 pandemic and complications in land acquisition. In February 2023, the Indonesian and Chinese governments agreed on a cost overrun of 18 trillion rupiah (around $1.2 billion). According to an article by ThinkChina, this officially made the Whoosh the most expensive infrastructure project undertaken under the aegis of China's Belt and Road Initiative, 'more so than the China-Laos Railway, the Addis Ababa-Djibouti Railway, and the Mombasa-Nairobi Railway, all built by China, at a price range of US$4-6 billion each.' While China set a 2 percent annual interest rate for the original portion of the loan, it has charged a higher 3.4 percent annual interest rate for the money borrowed to pay the cost overrun. According to a report in the Jakarta Globe, Danantara's head, Rosan Roeslani, told reporters on Tuesday evening that the agency was trying to find ways to change the terms to make the loans easier to pay back. 'We are evaluating [the project]. If we carry out a corporate action, we completely take care of it [the debt], and not just postpone it,' the paper quoted Rosan as saying. 'However, we will find ways on how we can restructure Whoosh's [debt].' Rosan did not disclose the specifics of how Danantara would seek to reduce the debt burden, either by a reduction in the interest rate or the extension of the loan term. The Jakarta-Bandung high-speed railway has the distinction of being Southeast Asia's first fully-fledged high-speed railway. (The Laos-China Railway, another Chinese-backed project that began operations in late 2021, runs at a slightly slower speed.) It therefore occupies an important place in China-Indonesia relations, something that probably ensures that Indonesia will be able to negotiate a debt restructuring of some kind, but also probably imposes limits on how hard it can afford to push. Meanwhile, President Prabowo Subianto is reportedly mulling plans to extend the line eastward to Surabaya, the capital of East Java. In late July, Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono announced that the government is preparing a new regulatory framework for the extension of the line. 'President Prabowo has given clear instructions to expand the Jakarta-Bandung high-speed train line to Surabaya,' he said, according to the state news agency Antara. He said that Prabowo wished to integrate further the island of Java, and that 'the key to this vision is to strengthen the Bandung-Surabaya corridor.'
