Intel Core Ultra 200S series processor family [Intel]

The R&D World Index climbed modestly this week, thanks to Intel’s substantial gains and strategic expansions in Asia, while automotive heavyweight Honda faced significant setbacks, highlighting a week of contrasting fortunes in the R&D landscape.

The R&D World Index (RDWI) for the week ending November 8, 2024 closed at 3,918.29 for the 25 companies in the RDWI. The Index was up 1.62% (or 63.64 basis points). Twelve RDWI members gained value last week from 1.02% (Merck & Co.) to 12.93% (Intel). Thirteen RDWI members lost value last week from -0.33% (Bristol-Myers Squibb) to -11.52% (Honda).

Technology R&D

The Freevoy Super Hybrid Battery from CATL redefines offers a pure electric range over 400 km and ultra-fast 4C charging.

Chip-based R&D expanding in Asia

CATL (Contemporary Amperex Technology Co.), Fujian, China, announced last week that it is accelerating its all solid-state battery project and has expanded its R&D staff by more than 1,000 employees in 2024. Its advanced battery technology is now in trial production with a 10 Ah verification platform. The company expects to begin small-volume production of the new battery by 2027. It expects to create batteries with an energy density of up to 500 Wh/kg for lithium ternary batteries which is a 40% improvement over current technologies. Charging speed and cycle life, however, require optimization before mass production can begin according to the company.

Apple debuts subsidiary in India

Apple Inc., Cuptertino, California, announced last week the opening of its first subsidiary in India, Apple Operations India in Bengaluru, Karnataka. The subsidiary is expected to focus on research, design, testing and support for third-party manufacturers by providing hardware, software and other services. According to regulatory filings, the subsidiary plans to procure engineering equipment, lease facilities, hire engineers and provide failure analysis services to Apple’s group companies.

Bengaluru, India [Adobe Stock]

Taiwan to block GPU shipments to Chinese customers

Taiwan Semiconductor Manufacturing Company (TSMC), Hsinchu Science Park, Taiwan, has been sent a letter from the U.S. Department of Commerce (DOC), Washington, DC, to halt shipments of advanced chips to Chinese customers that are often used in artificial intelligence (AI) applications starting last week. The DOC letter stated that the U.S. would impose export restrictions on certain sophisticated chips of 7 nm of more of advanced designs that power AI accelerator and graphics processing units. The letter was posted one week after TSMC notified the DOC that one of its chips had been found in a Huawei AI processor, as reported in Reuters. Technology research firm Tech Insights, Ottawa, Canada, had taken apart the Huawei product, revealing the TSMC chip and apparent violation of export controls.

LG Twin Towers in Seoul

LG bolsters R&D In Vietnam

LG Electronics, Seoul, South Korea, announced last week that it was strengthening its R&D capabilities in Vietnam, expanding its local research program into areas including vehicle components, the webOS platform and home appliances. LG established its local R&D network in Vietnam in 2016 with the opening of its R&D center in Hanoi, followed by additional branch R&D offices in Haiphong and Danang in 2020. The company reorganized and expanded its Vietnam research structure which has now become one of the company’s key research institutes in Southeast Asia.

DuPont sees growth in AI

DuPont de Nemours Inc., Wilmington, Delaware, announced growth in quarterly sales and profits last week as its AI-based businesses in semiconductor products expanded. The company’s profit in the third quarter was $454 million — a significant jump from the $319 million in the same quarter last year.  Chip-making is a key industry for the chemical and materials making company with a 20% sales increase based largely on growing demand in China. According to the company, China has half of the global semiconductor factories currently being built and some are stocking up on DuPont products before they open. DuPont said it would complete the spinoff of its water and electronics businesses by the end of 2025.

Automotive R&D

Current model Prius [Toyota]

Toyota cuts forecast thanks to slumping sales

RDW Index member Toyota, Toyota City, Japan, announced last week that it cut its annual forecast for group vehicle sales after its second quarter profit was reduced by half due to weaker global sales. Toyota had been benefiting from a shift in U.S. customers to hybrid vehicles amid concerns about charging problems and higher prices associated with pure electric vehicles (EVs). EVs and hybrid vehicles made up nearly half of the company’s sales in the second quarter, up from a third in 2023. The changes in sales forecasts was not expected to immediately affect the company’s overall annual R&D investments of $20 billion according to analysts.

Corporate news

[Image sources: Adobe Stock]

China approves $1.4T local debt rescue package

China’s top legislative body approved a 10 trillion yuan ($1.4 trillion) package last week to help local governments restructure their mounting off-balance debts. The package, focused on debt restructuring rather than direct stimulus, disappointed Chinese investors who had hoped for broader economic support measures. Market concerns were further amplified by potential economic challenges ahead, particularly regarding Donald Trump’s trade policies. Trump has proposed tariffs as high as 60% on Chinese imports, significantly higher than the current average level of 12.5%, though most economists expect a more moderate increase to 20% to 22% if implemented.

[Adobe Stock]

TSMC eyes next-gen EUV tools

TSMC last week stated that it is currently prioritizing the acquisition of high numerical aperture (NA) extreme ultraviolet (EUV) scanners for use in its R&D operations. The company’s EUV tool count was ten times higher in 2023 compared to 2019 and accounted for 56% of the global installed base. TSMC plans to bring its high-NA EUV tools first for R&D applications to develop the associated infrastructure and patterning solutions needed for customers. TSMC is expected to receive its first shipment of the EUV tools from ASML, Veldhoven, Netherlands, by the end of 2024. ASML is the only global manufacturer of these tools which cost about $350 million each. The machines won’t go immediately into production—they require extensive testing, calibration, and engineering work to optimize their high volume operations. Even then, they may not go into commercial production until after 2030 when TSMC is expected to introduce its A10 node, which is currently still several generations away from introduction.

The R&D World Index

R&D World’s R&D Index is a weekly stock market summary of the top international companies involved in R&D. The top 25 industrial R&D spenders in 2020 were selected based on the latest listings from Schonfeld & Associates’ June 2020 R&D Ratios & Budgets. These 25 companies include pharmaceutical (10 companies), automotive (6 companies) and ICT (9 companies) who invested a cumulative total of nearly 260 billion dollars in R&D in 2019, or approximately 10% of all the R&D spent in the world by government, industries and academia combined, according to R&D World’s 2021 Global R&D Funding Forecast. The stock prices used in the R&D World Index are tabulated from NASDAQ. NYSE, and OTC common stock prices for the companies selected at the close of stock trading business on the Friday preceding the online publication of the R&D World Index