YouTube pairs up with Shopee to attack TikTok Shop in Southeast Asia
YouTube pairs up with Shopee to attack TikTok Shop in Southeast Asia
It’s all about social commerce—plus TSMC gets busy in US, TikTok goes to court
Welcome back,
I’m recovering from a tiring week in Singapore at Token2049, but the show goes on.
This week we are taking a detailed look at YouTube’s partnership with Shopee in Southeast Asia, the early sparring between ByteDance and the US government over its potential ban, the big deal that is TSMC manufacturing on US soil with Apple and much more.
In case you missed it, last week’s ATR Original story was a look at how Korea’s crypto market is recovering from the colossal collapse of Terra-Luna two years ago. Elaine Ramirez went to Korea Blockchain Week and found signs of recovery via regulation, institutional adoption and, of course, developers.
That’s all for this week—see you in a few days for our next Original.
Best,
Jon
Follow the Asia Tech Review LinkedIn page for updates on posts published here and interesting things that come our way. If you’re a news junkie, the ATR Telegram news feed has you covered with news as-it-happens or join the community chat here.
News in Focus
YouTube teams up with Shopee to take on TikTok
It’s coming up on a year since TikTok Shop and Tokopedia merged to create a major social commerce player in Indonesia and now we have a counter from two major names. Sea, the e-commerce firm, and YouTube are pairing up to let content creators promote, tag and sell products from their YouTube videos on Shopee.
The exact details of how this will happen are not clear, and Shopee is the first partner so this tie-up will not be exclusive. But it does show how far the needle has moved when it comes to social commerce.
We’ve seen the likes of Shopee and Lazada try live video and multimedia in Southeast Asia, so this could take it to the next level. The question may be whether YouTube can execute on this given the speed at which Google can (can’t) move. I wonder, also, whether YouTube can be a destination for shopping. Users open TikTok for very different reasons to YouTube. YouTube has tried short video with YouTube Shorts, but it remains to be seen whether it can build a strong commerce use case. TikTok is quite unique in that respect.
But it is exciting to see Southeast Asia at the forefront of new features for YouTube. The trial will start in Indonesia before expanding to Thailand and Vietnam. There’s no word on other markets yet.
TSMC reportedly begins US production alongside Apple
Here’s a scoop from a Substack journalist. Tim Culpan, former Bloomberg columnist and friend of Asia Tech Review, reports that TSMC has reportedly begun producing its first chips at its Arizona facility, with Apple leading the charge by manufacturing mobile processors using a 5nm process.
Tim’s newsletter is free and you should subscribe:
This is a BFD. TSMC Arizona is the marquee project of the US government’s $39 billion CHIPS for America Fund under the CHIPS Act. Six months ago, I thought Apple might tap Arizona for a less-consequential chip like the H-series used in AirPods. I was surprised when I heard it was the A16. The fact that they went for the most-advanced chip they could manage on US soil, in terms of both technology and volume, shows Apple and TSMC want to start big.
Tim’s writing style is fun but these are important topics. Chip tech isn’t sexy but it underpins much of the world we live in and the businesses that make it work. So, go subscribe.
TikTok US court case moves forward
The future of TikTok in the US remains uncertain, with less than six months left before a deadline that could force a ban or a sale in the country. Last week, a court heard arguments on whether a ban would be possible, The New York Times reported the main findings:
The hearing, before the US Court of Appeals for the District of Columbia Circuit, lasted roughly two hours
Three judges asked probing questions of both TikTok and the government about an April law that forces ByteDance to sell TikTok to a non-Chinese company before January 19 or face a ban in the US
The lawyers have asked the judges to deliver a decision in the case before December 6, and legal experts anticipate the losing party will appeal to the Supreme Court
Two of the judges expressed some scepticism around TikTok’s arguments that Congress lacks the authority to pass such a law, and its defence that it was being unfairly singled out
Neomi Rao, one of the judges, said the company’s legal position relied on “a very strange framework for thinking about” congressional authority
ByteDance has claimed there will be “staggering” consequences for free speech if it is forced to exit the US. In more practical terms, it seems challenging to break off and sell the US portion of the service. Still, there are some eye-catching pieces: Forbes’ Emily Baker-White (who is writing a book on TikTok) reports how a former ByteDance employee said in a sworn statement filed in the court that Chinese police kidnapped and intimidated his father as retribution for an interview that he gave to Western press about censorship at TikTok. link
Politics and tech is never an easy combination.
SMIC, Transsion and Shein profiled
Asia tech companies don’t get as attention as they should, so here are three insightful profiles that dropped this week and are worth reading:
Whether China can advance and outrace the United States technologically now hinges on SMIC, a partly state-backed company that is the sole maker of advanced chips in the country and has become its de facto national semiconductor champion. SMIC pumps out millions of chips a month for other companies that design them, such as Huawei, the Chinese technology firm under U.S. sanctions, as well as American firms like Qualcomm.
Transsion now commands roughly half the African smartphone market and an even bigger share of feature phones. It’s also found success expanding into parts of Asia and the Middle East; the company now draws most of its revenue from regions outside Africa, highlighting the global potential of the Transsion model. In India, for example, its budget 5G phones are catching on, and it’s invested significantly in local manufacturing and marketing. Meanwhile, its Spotify-like music service, Boomplay, has more than 90 million monthly active listeners worldwide, and it also has news and payments apps.
The FT has a detailed story (for subscribers) which looks at the model behind the business, the need to put distance between the firm and China and how Shein differs from Temu and others.
AND two book recommendations offering an inside look at SoftBank and its founder, Masayoshi Son:
The mystery of Masayoshi Son, SoftBank’s great disrupter: He has won and lost fortunes with his bets on technology. So is the investor a visionary — or a gambler who got lucky? link
In his memoir The Money Trap, ex-SoftBank executive Alok Sama chronicles the company’s rise as a tech investor through the $100 billion Vision Fund
China
The FBI has seized control of a botnet consisting of hundreds of thousands of internet-connected devices, including cameras and routers, operated by a Chinese government hacking group known as Flax Typhoon link
ByteDance is reportedly fast-tracking the development of its own AI chips to gain an edge in China’s AI chatbot market. It aims to mass-produce two chips by 2026, in partnership with TSMC link (ByteDance denied the report)
China announced a breakthrough in homegrown chipmaking equipment—state-linked groups are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, an improvement on the previous 90nm equipment link
China’s YMTC has made progress in replacing foreign chipmaking technology with homegrown alternatives link
However, China has been hit hard by new Dutch export controls on ASML chip-making equipment link
A Chinese security conference may have turned a typical hacking contest into a covert espionage operation, using participants to gather intelligence from an unknown target, according to two Western researchers who reviewed the event's unusual competition structure link
The US Commerce Department plans to unveil rules banning Chinese and Russian hardware and software in connected vehicles link
India
Physics Wallah raised $210M at $2.8B valuation even as edtech funding remains scarce link
India is investigating the business practices of Netflix's local operations, including allegations of visa violations and racial discrimination, according to a government email sent to a former executive link
Indian government officials want to understand the ownership structures of quick-commerce firms and their dark stores since foreign direct investment rules don’t allow foreign-funded online marketplaces to own inventory or control sellers on their platforms link
The Competition Commission of India (CCI) has requested financial statements from Amazon and Flipkart as their antitrust case nears its conclusion, according to sources link
Now, online fashion platform Myntra is betting on 4-hour delivery amid India’s quick commerce boom link
European fintech Revolut plans to launch in India next year, having just received approval from India's central bank for prepaid cards and wallets link
Lenovo has begun producing AI servers in southern India link
Fleet operator Everest Fleet—which has over 18,000 vehicles—is raising $50M, it has collected $30M led by the Indian arm of ride-hailing major Uber link
IPO soon? Oyo acquired Motel 6, one of America’s top lodging brands, for $525M as part of its US expansion plans link
Livspace, a home decor startup backed by Ikea, is preparing for an IPO as soon as next year by shifting its domicile from Singapore to India link
Amazon named long-time executive Samir Kumar as the new head of its India consumer business link
Vahan.ai, an AI-driven recruiter for gig workers, raised $10 million led by Khosla Ventures link
M2P Fintech, a SaaS provider for banks, is raising $80M at a valuation of $850M-$900M link
Financial services startup Kaleidofin raises $13.8M link
Southeast Asia
Netflix is doubling down and betting on Southeast Asia as peers Amazon and Disney reduce focus on programming from the region link
GoTo reached a 5-year agreement with Alibaba to use its cloud services in exchange for Alibaba not selling shares—Alibaba’s ownership decreased from 9% to 7.5% after recent sells as GoTo’s share price has dropped link
The US is reportedly urging Vietnam to avoid Chinese firms like HMN Technologies in its plans to build 10 new undersea cables by 2030 link
Ninja Van suspended the operations of a subsidiary firm in Vietnam after delayed salary and social insurance payments for employees there link
Indonesia's tax agency is investigating claims of a data leak affecting 6 million taxpayer—tax ID numbers are said to be on sale on forums link
Crypto platform BingX lost $44M due to a hack link
South Korea
Terraform Labs received court approval to wind down its operations in bankruptcy after agreeing to settle a US SEC lawsuit link
Japan
AI startup Sakana, backed by Nvidia, is now valued at $1.5B following a round from Japanese investors Iink
Opinion: As the world looks to Singapore, don’t sleep on Japan for Web3 link
Taiwan chip industry suppliers set sail for Japan's 'Silicon Island' link
TSMC’s new chip plants on the southern island of Kyushu have triggered Japan’s fastest rises in land prices for the second straight year, in an indication of the project’s impact on the economy link
Taiwan
Gogoro, the Taiwanese electric scooter manufacturer and battery-swapping giant, said its CEO and chairman Horace Luke has stepped down amid subsidy fraud allegations link
Gogoro allegedly used Chinese parts for e-scooters to reduce manufacturing costs, despite reporting that it used locally made parts to qualify for government subsidies. In a filing, Gogoro said internal investigations identified “certain irregularities” in the supply chain that caused it to “inadvertently incorporate certain imported components in some of its vehicles.”
Rest of Asia
Kazakhstan aims to boost output of metals needed for EV batteries and is issuing hundreds of new exploration licences to attract fresh investment in the sector link
Another reminder that Bhutan, a Himalayan nation with fewer than 1 million people, has accumulated over $780M in Bitcoin throw mining—that’s nearly one-third of its GDP link