NetEase oversaw Blizzard games in China for 15 years, but their agreement expired in January 2023, leading to the likes of Hearthstone and Starcraft shutting down in the country. The two sides had kept discussions going over the last year and they finally reached a new deal.

It’ll take a little while for Blizzard and NetEase to resolve technical issues and get things in place for the relaunch, but the games are expected to come back online in China starting this summer. According to Bloomberg, players will be able to resume progress they’d previously made on their accounts.

Blizzard could be set for a notable boost to its bottom line with its games coming back to China. Overwatch is one of its more popular games there — the country is said to have made up most of the Overwatch League’s viewership in the circuit’s later seasons. One pro team based in China didn’t play at all during OWL’s final season in 2023.

In addition, Chinese players will for the first time officially be able to play Diablo IV, which Blizzard released last June and was an instant hit. (Diablo Immortalremained available in China during the spat with NetEase as that game was subject to a separate agreement.)

Meanwhile, Blizzard’s parent company Microsoft has struck a separate deal with NetEase. They’ll explore the possibility of bringing NetEase games to Xbox consoles and other platforms.

“Blizzard and NetEase have done incredible work to renew our commitment to players — Blizzard’s universes have been part of players’ lives in the region for many years,” Phil Spencer, CEO of Microsoft Gaming, said in a statement. “Returning Blizzard’s legendary games to players in China while exploring ways to bring more new titles to Xbox demonstrates our commitment to bringing more games to more players around the world.”

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The regulator has reportedly told China Mobile and China Telecom, along with all other state-owned carriers, to check their networks for any semiconductors that weren’t manufactured locally. It then asked them to determine a timeline to replace them. The Journal’s sources said that it’s now possible to switch to domestic chips, thanks to improvements in their quality and performance over the past few years. Chinese companies like Huawei were forced to design their own semiconductors after getting hit by trade sanctions, in order to be self-sufficient and in case they’re no longer able to import chips from the US and its allies. The Chinese government, in turn, is supporting their efforts and is raising $40 billion in funds to help the domestic semiconductor industry.

This latest move by China follows its ban on the use of Intel and AMD processors in government computers. Prior to that, China also prohibited the use of US-made tech in all government institutions and public bodies and banned local firms from buying chips made by US memory manufacturer Micron Technology. Intel and AMD will most likely suffer heavy losses from this latest development, since they provide most of the chips used for mobile networks around the world. China was also Intel’s largest market in 2023 and accounted for 27 percent of its revenue. In addition to losing some of their biggest customers, the companies will now have to face competition from Chinese manufacturers, as well.

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"Advancements in sensitive technologies and products in these sectors will accelerate the development of advanced computational capabilities that will enable new applications that pose significant national security risks, such as the development of more sophisticated weapons systems, breaking of cryptographic codes, and other applications that could provide these countries with military advantages," the executive order states.

The White House described the move as “narrowly targeted,” saying it was meant to bar the funding of “entities that engage in specific activities related to these technology areas that pose the most acute national security risks.” As The Washington Post notes, responsibility for enforcing the executive order would fall on the Treasury Secretary.

The executive order, which won’t go into effect until 2024, is hardly the first time the US has sought to limit the influence of Chinese tech firms in recent years. Both Biden and his predecessor imposed significant restrictions on Huawei. The White House has also limited the sale of supercomputing technology to Chinese firms and sought to block China’s access to advanced chip-making equipment. The Biden Administration has also pressured ByteDance, the Chinese owner of TikTok, to sell the popular app.

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Tower has seven fabrication facilities (located in Israel, Italy, the US and Japan) that build 6-inch, 8-inch and 12-inch chip wafers. While the company doesn’t manufacture cutting edge mobile and other process, its clients don’t necessarily need the latest technology. Instead, Tower focuses on reliably manufacturing large volumes of chips for automakers, equipment manufacturers, medical industries and others.

Before announcing its Tower acquisition, Intel was reported to be in talks to purchase the much larger chip manufacturer and AMD spinoff GlobalFoundries for around $30 billion. Intel launched its foundry services as a separate business unit back in 2021, committing $20 billion to build two Arizona factories. It also revealed plans to build a massive semiconductor facility in Ohio designed to become “the largest silicon manufacturing location on the planet.”

Intel said its still executing its roadmap “to retain transistor performance and power performance leadership by 2025,” with the aim of becoming the second-largest global external foundry by 2030. “Our respect for Tower has only grown through this process, and we will continue to look for opportunities to work together in the future.” As part of its merger agreement, Intel will pay a termination fee of $353 million to Tower.

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About 60 billion yuan ($8 billion) is expected to come from China's finance ministry. The other contributors aren't yet known, though past backers included China Telecom and China National Tobacco Corporation. Much of the fund itself will specifically focus on creating instruments for chip manufacturing.

The news comes only a few days after Huawei, a Chinese electronics company, announced its new smartphone, the Mate 60 Pro, complete with homegrown chips. Huawei partnered with chipmaker Semiconductor Manufacturing International Corp (SMIC) to create a new Kirin 9000s chip, according to a report from analysis firm TechInsights. SMIC's high-level 7nm technology appears to provide the Mate 60 Pro with download speeds beyond those seen in typical 5G phones.

The entire Mate 60 Pro announcement and subsequent proof of its power stands in direct contrast to the efforts made by the US, Japan and the Netherlands to restrict China's chip access and limit their production abilities. As recently as August, President Biden signed an executive order further limiting investments in Chinese firms working with technology like semiconductors. Previous restrictions have specifically targeted Huawei, including a January ban on licenses for exporting US tech to the Chinese company.

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It’s likely that both phones are also powered by Huawei’s mysterious HiSilicon Kirin 9000S, the 7nm process node of which has raised concerns on whether the local chip supplier, SMIC (Semiconductor Manufacturing International Corporation), has violated US sanctions to access foreign chip-making technology. Huawei did not immediately respond to requests for comments about the specs of these new phones or the chip.

A recent Kirin 9000S teardown conducted by TechInsights for Bloomberg confirmed SMIC’s 7nm process, which was thought to be impossible given the import ban on key manufacturing equipment — namely the EUV lithography machines from Dutch firm ASML (Advanced Semiconductor Materials Lithography). Before the US import ban, Huawei relied on TSMC (Taiwan Semiconductor Manufacturing Company) for its 5nm process, which was enabled by ASML’s machines.

It is unlikely that SMIC procured such advanced machinery from ASML — at least not directly — without raising alarms. According to Bits & Chips, ASML CEO Peter Wennink recently expressed that “the Mate 60 Pro shouldn’t come as a surprise to anyone, as the restrictions essentially forced the Chinese to double down on innovation.” Thus implying that SMIC could well have developed its own high-end lithography machine.

Benchmarks conducted by Chinese tech blog Geekerwan suggest that the Kirin 9000S’ performance is close to Qualcomm’s Snapdragon 888, meaning it’s around two generations behind. The site added that the CPU here features one big core and three middle cores based on Huawei’s own “TaiShan” architecture, in addition to four little cores based on Arm’s efficient Cortex-A510. As a bonus, the Kirin 9000S is the first mobile processor to support multi-threading — running eight cores with 12 threads, though apparently apps will require further optimization to make use of this feature. As for the GPU, Huawei added its own Maleoon 910, which is allegedly on par with the one in the Snapdragon 888.

Much like the Mate 60 Pro, the higher-end Mate 60 Pro+ supports satellite call service by China Telecom and satellite messaging using BeiDou. The only notable differences (that we can see for now) are the different “nanotech metallic double dye process” and better rear cameras. As for the Mate X5 foldable, it’s almost identical to the super slim Mate X3, except for the switch to Huawei’s fancier Kunlun Glass on the external screen (hence a 2g bump in weight), as well as the slightly tweaked appearance of the rear camera island. Huawei has yet to reveal prices for either model, though pre-orders will start at 6:08PM local time today.

If all four of Huawei’s latest smartphones are indeed powered by Kirin 9000S, it would suggest that Huawei is confident with its chip yield — potentially adding a further blow to the US sanctions. Rumors suggest that we’ll be hearing more about these devices towards the end of September — conveniently avoiding the iPhone 15 rush.

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It offers impressive specs for that sum, including a Navi 31 XL GPU with 80 compute units (5120 stream processors), 160 AI accelerators and 16GB of GDDR6 memory. That's just a bit less than the 20GB of GDDR6, 96 compute units and 168 AI accelerators in the 7900 XT. With that, it offers 26 to 46 FP32 TFLOPS, a bit lower than the 700 XT's 32 to 51.6 FP32 TFLOPS. However, that means it also consumes less power — 260W TGP compared to the XT's 315W.

All of that should make it a powerhouse at its 1440p resolution sweet spot. AMD claims it offers 14 percent more FPS per dollar at 1440p settings than the $549 RTX 4070 12GB. That includes games like Call of Duty Modern Warfare 3, Cyberpunk 2077 and others at 4K. In some settings (comparable DLSS/FSR modes), it outperforms the NVIDIA RTX 4070 Super, AMD claims.

At the same time, the 7900 GRE comes with new AI accelerators as part of the unified AMD RDNA 3 compute unit. With 160 AI accelerators and 16GB of DDR6 memory, it can generate Stable Diffusion images in less than a second, AMD said, or let you load your own large language model (LLM).

The 7900 GRE isn't exactly an unknown entity, as it has been sold with PC builds (and even standalone), in Europe for awhile now as well as China. In general, you can expect better performance and lower power consumption than the 7800 XT (for just $50 more), and about a 20 percent drop off compared to the 7900 XT (for $350 less).

The 7900 GRE goes on sale starting tomorrow (February 27, 2024) for $549. That's likely to be a sweet spot for a lot of US buyers, so if you're looking to get one, act quickly. And if you want to spend a bit less, AMD is also lowering the US price of the RX 7700 XT to $419, $40 less than the original price, starting today.

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The lawsuit compares TikTok to a slot machine that provides “dopamine manipulation” trigged by swiping up on videos. That addictive nature is particularly harmful for the “not-yet-fully-developed” brain of young users and can create a dependence on the app, the state claims. It noted that the US Surgeon General has warned about mental health harms around social media, and cited excessive TikTok usage based around the company’s own (redacted) figures.

“What these children (and their parents) do not know is that TikTok is lying to them about the safety of its app and exploiting them into checking and watching the app compulsively, no matter the terrible effects it has on their mental health, their physical development, their family, and their social life,” the complaint states.

The lawsuit also delves into TikTok’s links to China. “To avoid scrutiny from its users (and regulators), TikTok has also misled Utah consumers about the degree to which TikTok remains enmeshed with and under the control of ByteDance, it’s China-based parent company.”

TikTok previously said that it has dedicated more than $1.5 billion on data security, and has rejected allegations that it’s spying for the Chinese government. The company also recently opened a Transparency and Accountability Center in an effort to fend off regulators and potential bans.

The federal government has yet to take any concrete action against social media platforms, but states have been more active. Utah recently passed a law requiring parents to get permission before teens can create accounts on TikTok, Snap and other platforms. It also mandates curfew, parental controls and age verification features. The state didn’t go as far as Montana, however, which outright banned the use of TikTok. Tomorrow, a judge will hear arguments in TikTok’s lawsuit seeking to overturn that ban — a case that could open the company up to more scrutiny and set precedent around the US.

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The new headset would be more powerful than the Quest 2, but use lower-quality optics than the Quest 3, according to the report. The more budget-oriented headset may also be sold in other regions. Meta would reportedly take a larger share of headset sales, while Tencent pull in more of the content and service revenue, “like software subscriptions and game sales.”

The deal would open up a huge market for Meta’s VR division, which has been hemorrhaging money and could certainly use the boost. However, it’s not clear whether Tencent would require government approval to sell the devices. Gaming is a popular VR activity, but China’s strict rules have already had a significant impact on Tencent, the world’s largest video game company.

China may not be a panacea for Meta’s weak VR division, either. TikTok owner ByteDance is China’s virtual reality leader with its Pico headset, but is struggling with sales in China just as Meta is elsewhere. And Tencent itself was reportedly on the brink of disbanding its own VR division, but supposedly built it back up once the Meta deal seemed inevitable. Headset sales across the globe fell nearly 45 percent this quarter compared to the same period last year.

If the deal goes through, Meta would regain a foothold in China after 14 years with no direct presence there. The company has a 50 percent worldwide share of the VR market, with Sony’s PlayStation VR2 and Pico’s VR headset in second and third place. Apple is about to enter the market with its $3,500 Vision Pro headset, but isn’t likely to have a serious presence until it releases a cheaper version down the road.

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However, the US government recently issued an updated set of restrictions that puts a limit on how much computing power a chip can have when it’s meant for export to the aforementioned countries. The A800 and the H800 are no longer eligible for export under the new rules, along with NVIDIA’s other products, which include its top-of-the-line RTX 4090 consumer GPU. Some reports even suggest that the company could end up canceling over $5 billion worth of advanced chip orders in China.

The new chips meant for the Chinese market are called the HGX H20, the L20 and the L2, based on the specs sent to distributors. While the H20 is supposed to be the most powerful model out of the three, all of them don’t go beyond the computing power threshold set by the US government’s new export rules. That means customers using them for AI applications may need more chips than they would if they had access to higher-spec models.

Chinese companies, including Baidu, Huawei, Xiaomi and Oppo, have already started designing their own semiconductor to prepare for a possible future wherein they could longer be able to import chips from the US and other countries. Old NVIDIA customers may prefer sticking to the company’s components, however, due to its reputation and its software, which The Journal says is some of the most robust for AI development. NVIDIA, according to the source, may announce the new chips as soon as November 16 and start selling them before the year ends.

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