Beyond Horizons
Trailblazing Tales from Asia
Your exclusive gateway to the latest developments across transportation and space, and most importantly, how to finance it all - debt, equity, and defi! We follow and forecast where the money’s at.
Join us as we navigate through the latest roundup to uncover key developments across the region.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**
Summary
Financing & Investments: Google Reportedly Eyes Billion-Dollar Smartphone Investment in Tamil Nadu; Alibaba Invests $230 Million in Lazada eCommerce Platform; Source Code Capital Plans $300 Million Fund for AI Investments; Alibaba Cloud Expands With New Cloud Regions, AI Advancements, and Educational Partners; Thinkuvate Launches INR 100 Crore Fund For Indian Tech Startups; AstraZeneca to Invest $1.5 Billion in Singapore Facility for Advanced Cancer Therapies; Sri Lankan Airlines Privatization Shortlists Three Bidders; and SIA to Redeem Half of 2021 Convertible Bonds as Pandemic Recovery Strategy
Semiconductor Industry: South Korea Unveils $19 Billion Support Program for Semiconductor Industry; Rapidus Corp. Partners with Esperanto Technologies to Develop AI Semiconductors; and TSMC Forecasts 10% Annual Revenue Growth for Global Semiconductor Industry
Cryptocurrency: Global Crypto Exchanges Withdraw License Bids in Hong Kong Amid Growing Trend
Artificial Intelligence: Korean Air Partners with AWS to Develop AI-Powered Contact Center Platform
Environmental Sustainability: China's First Quarter Clean Energy Investment Surpasses 100 Billion Yuan; Australia and China Collaborate to Develop Sustainable Aviation Biofuels; Australia's 2024 Budget Supports SAF and Hydrogen Development; China's 2030 SAF Policy Set to Spur Billion-Dollar Investments; and PAL Partners with OpenAirlines to Implement AI-Powered Fuel Management Solution
Aviation: MJets Partners with WingsOverAsia to Expand Private Jet Services in Southeast Asia; ADE Cambodia Earns AMO Certification; and Boost for Western Sydney Airport and Regional Aviation in Australia's Federal Budget
Aerospace: China Unveils Upgraded MA 60 Weather Modification Aircraft for Meteorological Missions
Electric Vehicles: Gotion High-Tech Unveils Cost-Effective Cylindrical and Ultra-Fast Charging Prismatic Batteries; Nio's Unit CHJ Limited Joins Singapore Exchange Securities Lending Program; and Tesla Breaks Ground on Shanghai Energy Storage Super Factory
Space: Korea to Launch KASA, Aiming to Join Global Space Race; ESA Initiates European Version of SpaceX with Commercial Cargo Contracts; and South Korea Successfully Launches First Nanosatellite NEONSAT-1
Finance & Investments
India
Bloomberg reports that Google is planning to invest billions in Tamil Nadu to establish smartphone manufacturing facilities in a move to expand its manufacturing operations in India. The tech giant is set to collaborate with Foxconn Technology Group to begin assembling Pixel phones in the state, as per sources cited in the report.
💡As of writing, neither Google nor Foxconn has officially confirmed these developments.
China-Southeast Asia
Chinese multinational technology company Alibaba has invested $230 million in its Southeast Asia-focused eCommerce platform, Lazada, as reported by Alternative.pe, a data platform for private funds. The recent injection follows previous investments, with $353 million in April 2023, $845.4 million in July 2023, and another $634 million in December 2023.
Apart from Lazada, Alibaba's media arm, Alibaba Digital Media and Entertainment Group (DME), pledged HK$5 billion over five years to revitalize Hong Kong’s cultural scene. The investment includes funding for locally produced TV dramas, movies, events, and training for young creatives, making Hong Kong the second base for Alibaba Pictures under the "Hong Kong Cultural and Art Industry Revitalisation Programme."
💡Last year, Alibaba injected a total of $1.8 billion into Lazada.
China
Source Code Capital, known for backing tech giants like ByteDance, is set to launch a new $300 million fund centered on artificial intelligence (AI). Founded by Cao Yi, a former investor at Sequoia China, the firm manages around $5 billion in assets, according to Bloomberg.
💡The fund is expected to target early to mid-stage AI startups, offering them the necessary capital and support to scale up operations and drive innovation.
China-Global
Alibaba Cloud is expanding its presence by launching its first cloud region in Mexico and establishing additional data centers in key markets like Malaysia, the Philippines, Thailand, and South Korea over the next three years. The investment aims to bolster its cloud and AI product suite globally while fostering partnerships and nurturing AI talent for future digital advancements.
In addition to the expansion plans, Alibaba Cloud announced on May 23 that its premier generative AI development platform, Model Studio, will soon be accessible to international customers via Availability Zones in Singapore. The platform offers access to Alibaba Cloud's Qwen family of large language models, catering to the development of custom generative AI applications. Further model finetuning and inferencing tools will be introduced in the second half of the year.
Meanwhile, Alibaba Cloud has strengthened its partnership with SAP to introduce an all-in-one enterprise solution tailored for small and medium-sized enterprises (SMEs) in Asia.
💡 Alibaba Cloud is also partnering with Demos Group to offer online courses in cloud computing, data analytics, and AI. Additionally, it's collaborating with OxValue.AI from the University of Oxford and several international universities—University of Reading, Singapore University of Social Sciences, King Mongkut’s University of Technology Thonburi, Arovy University, and University Saint Thomas Mozambique—to introduce cloud computing and AI courses.
Singapore-India
ThinKuvate, a Singapore-based angel investment network, has obtained a SEBI license to launch its debut fund, ThinKuvate India Fund – I, with an INR 100 crore corpus. The fund will target early-stage tech startups, providing seed to pre-Series A investments of up to INR 3 crore per startup.
With plans to back 12 to 15 startups annually, ThinKuvate will initially focus on emerging startup hubs like Nagpur, Raipur, Bengaluru, and Chennai. To initiate fundraising, the network will organize investor-focused roadshows in these cities, anticipating the first close of the fund within this quarter.
The fund intends to attract high-net-worth individuals and family offices in India as limited partners, projecting a capital distribution of 60% from overseas and 40% from local investors.
💡ThinKuvate’s current portfolio includes 22 startups, 40% of which have progressed to Series B rounds and one poised for listing on the Australian Stock Exchange, Indian startups in their portfolio include CureSkin, Vidyakul, and QubeHealth.
Singapore
Pharmaceutical giant AstraZeneca has unveiled plans to invest $1.5 billion in establishing a new manufacturing facility for antibody-drug conjugates (ADCs) in Singapore. This will be AstraZeneca’s first facility to encompass the entire ADC production process, enhancing its capability to produce these advanced, targeted cancer therapies, of which it already has an extensive portfolio.
💡Supported by the Singapore Economic Development Board (EDB), construction of the facility is slated to begin by the end of 2024, with the plant expected to be operational by 2029.
Sri Lanka
According to media reports, the Cabinet of Ministers has advanced the privatization of Sri Lankan Airlines, narrowing the field to three bidders: Sherisha/Supreme Global Consortium, Air Asia Consulting, and Hayleys PLC.
💡The Sherisha/Supreme Global Consortium includes Supreme Global Holdings and Sherisha Technologies Pvt Ltd, backed by MBS Investments from Sheikh Nayef Bin Eid Al Thani's private office in Qatar.
Singapore
Singapore Airlines (SIA) is redeeming half of its mandatory convertible bonds (MCBs) issued in June 2021, following the full redemption of its 2020 MCBs just six months prior. The bonds were issued to bolster the company's balance sheet during the pandemic-induced travel downturn.
The redemption will cover approximately $3.4 billion, meeting the accreted principal amount payable of 108.243%. The redemption will occur on a pro-rata basis, with eligible bondholders receiving payment on June 26. SIA will finance this redemption using its existing cash reserves, which totaled $15.4 billion as of December 31, 2022.
The MCBs were part of a $15 billion rights issue approved by SIA shareholders in April 2020, comprising $5.3 billion in 2020 rights shares, $3.5 billion through 2020 rights MCBs, and $6.2 billion through 2021 rights MCBs.
💡The move is part of SIA's post-pandemic liquidity strategy and balance sheet recalibration to bring liquidity levels back to normal. The redemption also reduces the risk of shareholder dilution.
Semiconductor Industry
Korea
South Korea, home to the world’s two largest memory chipmakers, Samsung Electronics Co. and SK Hynix Inc., has announced a record 26 trillion won ($19 billion) state support program for its semiconductor industry. The package includes financial aid, a new chip fund, and extended tax breaks, benefiting both major and smaller chipmakers, fabless design houses, and foundries.
The initiative surpasses previous support plans and aims to provide 17 trillion won in financial aid via the Korea Development Bank for large-scale facility construction. The program also extends tax benefits for chip investments and launches a 1 trillion won chip industry ecosystem fund to support fabless design firms and equipment makers.
💡South Korea is concurrently developing a “mega chip cluster” in Yongin, projected to be the world’s largest high-tech chipmaking complex, driven by Samsung, SK Hynix, and other local companies.
Japan
Japanese chip-maker Rapidus Corp. has signed a Memorandum of Cooperation (MOC) with U.S.-based Esperanto Technologies Inc. to develop and manufacture low-power artificial intelligence (AI) semiconductors for data centers.
In September, Rapidus commenced the construction of the Innovative Integration for Manufacturing (IIM) facility in Chitose City, Hokkaido. The facility will be Japan’s first to produce state-of-the-art 2nm logic semiconductors and beyond.
Concurrently, Rapidus has dispatched researchers to the Albany Nanotech Complex in New York to collaborate with IBM on developing 2nm logic semiconductor technologies. The company also plans to acquire EUV lithography technology from Belgium’s imec, which is crucial for advanced semiconductor production. Rapidus aims to start a pilot production line at IIM-1 by April 2025, with mass production scheduled for 2027.
In separate news, Rapidus has announced that its semiconductor plant in Hokkaido will be operational by April 2025. The company plans to produce two-nanometer chips at the facility, with a budget of 5 trillion Japanese yen ($32 billion) allocated for both production and research and development. Founded in August 2022, the Rapidus consortium receives funding from the Japanese government and comprises eight major Japanese manufacturers, including Toyota and Sony.
💡Esperanto specializes in high-performance, energy-efficient computing solutions for AI and machine learning, using the open standard RISC-V instruction set architecture.
Taiwan-Global
Taiwanese contract chipmaker TSMC, a major supplier to Apple and Nvidia, forecasted an annual revenue growth of 10% for the global semiconductor industry, excluding memory chips, reported Reuters. In April, TSMC adjusted its outlook for the global semiconductor industry excluding memory, lowering the expected growth rate to around 10% from a previous forecast of more than 10%.
💡The World Semiconductor Trade Statistics has forecast a growth of 13.1% for the global semiconductor market in 2024.
Cryptocurrency
Hong Kong
Subsidiaries of two major global exchanges, Gate.io and OKX, have withdrawn their applications for operational licenses in Hong Kong. The move mirrors a larger trend, with eight firms, including exchanges backed by Binance and HTX, also halting their licensing endeavors, as reported on the Securities and Futures Commission (SFC) website. The regulatory body continues to assess applications from various other cryptocurrency exchanges, such as Crypto.com, Bullish, and Matrixport.
Gate.io clarified that their decision is part of a broad platform overhaul strategy, which involves suspending the registration of new users, deposits, and marketing activities in Hong Kong. Furthermore, the platform plans to delist all major tokens, such as Bitcoin, Polkadot, Ethereum, among others. They announced the cessation of all trading services by May 28 and urged users to withdraw their assets before August 28.
OKX has issued a notice advising its customers to avoid making deposits after May 31, cautioning that these deposits might not be processed automatically. Additionally, the exchange has set an August 31 deadline for users to withdraw their assets from its platform.
💡The SFC has granted licenses to only two exchanges in the region: OSL and HashKey.
Artificial Intelligence
South Korea
Korean Air has partnered with Amazon Web Services (AWS) to develop an AI Contact Centre (AICC) platform that incorporates advanced artificial intelligence (AI) technologies to enhance customer service. The AICC is a cloud-based intelligent customer service platform that uses AI to power voice bots and chatbots and will complement direct customer interactions by analyzing call logs to improve service quality.
💡 Korean Air aims to streamline its call center operations by consolidating its current infrastructure into a single AWS Cloud platform by September this year. Following this, the airline intends to further refine its services with the integration of machine learning and generative AI by next February.
Environmental Sustainability
Australia-China
Over the next two years, aviation experts from the University of South Australia (UniSA) will collaborate with their counterparts in China to establish a sustainable aviation biofuel industry in both nations. The Department of Foreign Affairs and Trade (DFAT) announced this partnership on Saturday, following a $1.7 billion Federal Budget commitment to focus on renewable aviation fuels for the next decade.
💡Leading the initiative, UniSA Aviation Professor Shane Zhang has secured a $230,000 grant from the National Foundation for Australia-China Relations. The project will investigate the commercial viability of using bio feedstock to create 'green' fuel as an alternative to traditional kerosene jet fuels.
China
Per China Daily, China's clean energy sector experienced substantial growth in the first quarter of this year, with a construction scale of 512.05 million kilowatts, marking a 30.97% year-on-year increase. Investment in clean energy also surged, reaching 117.3 billion yuan, representing a 6.64% year-on-year rise.
💡The Research Report on the Environmental, Social, and Governance (ESG) System of the Electric Power Industry, recently released by the China Electric Power Enterprise Federation, states nearly 90% of listed power companies have issued ESG-related reports.
Australia
Industry stakeholders, including the Tourism and Transport Forum (TTF), Airbus, and AMSL Aero, have embraced the measures introduced in Australia’s 2024 federal budget to boost sustainable aviation fuel (SAF) and hydrogen development. The budget allocates $1.7 billion over a decade to assist the Australian Renewable Energy Agency (ARENA) in commercializing net-zero technologies, with a focus on low-carbon liquid fuels.
Additionally, $18.5 million over four years will be dedicated to establishing a certification scheme for these fuels, including SAF, while $1.5 million over two years will fund analyses of SAF mandates and other demand-side measures. Renewable hydrogen production has also been incentivized with a $6.7 billion tax incentive.
💡 The initiatives build on the government's previous commitment, announced last year, of $30 million in grants through ARENA to support domestic SAF production.
China
Per Reuters, China is poised to unveil its sustainable aviation fuel (SAF) policy for 2030 this year, potentially prompting significant investments amounting to billions of dollars. In line with this, biofuel firms are currently investing over $1 billion to establish China's first plants for converting waste cooking oil into aviation fuel, catering to both export markets and domestic needs following Beijing's mandate to reduce aircraft emissions.
Preparations are underway for companies like Junheng Industry Group Biotech, Zhejiang Jiaao Enprotech, and Tianzhou New Energy to launch plant operations within the next 18 months. Collectively, they aim to produce over one million metric tons per year (tpy) of SAF, representing approximately 2.5% of China's current annual demand for aviation fuel.
Executives from these companies have highlighted that once operational, these projects would utilize supplies of used cooking oil (UCO) feedstock, which China presently exports as the world's largest exporter. In the previous year, China exported a record 2.05 million tons of UCO, primarily to destinations like the United States and Singapore, where it serves as feedstock for biofuel refiners such as Finnish firm Neste.
💡China is the world's second-largest aviation market, accounting for approximately 11% of global jet fuel consumption.
Philippines
Philippine Airlines (PAL) has teamed up with France’s OpenAirlines to integrate SkyBreathe OnBoard, an AI-driven fuel management solution, into its operations.
SkyBreathe OnBoard features a "Direct Assistant" that provides pilots with real-time notifications about potential in-flight shortcuts. By utilizing historical flight data, machine learning, and artificial intelligence, the system takes into account current flight constraints and previously approved routes by air traffic control to suggest the most efficient shortcuts to pilots.
💡 The use of this technology is expected to save 1% of fuel per flight, providing a quick return on investment.
Aviation
Singapore-Thailand
MJets Limited, Thailand's sole full-service private jet provider, is partnering with Singapore's WingsOverAsia (WOA) to enhance aviation infrastructures and meet regional demands. The investment in WOA is valued at approximately S$17 million. MJets currently operates flights to Thailand, Myanmar, and Cambodia, with plans to expand to New Delhi, India, in the near future. Further partnerships and expansions are expected as part of MJets' ASEAN growth strategy. Additionally, the company plans to purchase two larger aircraft to upgrade its fleet next year.
💡According to Mordor Intelligence, ASEAN's private jet and general aviation markets are expected to grow at an annual rate of 14.36%, with market value increasing from US$463.39 million (16.83 billion baht) in 2024 to $906.39 million by 2029.
Cambodia
Asia Digital Engineering (ADE), the maintenance, repair, and operations (MRO) arm of Capital A, announced that ADE Cambodia Co Ltd (ADE Cambodia), its joint venture with Sivilai Asia Co Ltd, has received the Approved Maintenance Organization (AMO) certification from Cambodia’s State Secretariat of Civil Aviation (SSCA). The milestone marks the first time an ADE entity outside Malaysia has obtained business approvals in Cambodia.
💡ADE Cambodia aims to enhance the aviation ecosystem in Cambodia by providing MRO services to AirAsia Cambodia and other airlines at major Cambodian airports.
Australia
Australia’s federal budget is boosting Western Sydney Airport and regional aviation with $302.6 million over five years, along with $53.5 million annually for the airport and $102 million for regional airport upgrades.
Western Sydney Airport will receive $237.4 million over four years for border security, plus $13 million over five years for regulatory oversight. Infrastructure projects, including rapid buses and rail link planning, will be funded; the Remote Airstrip Upgrade Program and the Regional Airports Program will receive extensions and funding.
💡Savings of $8.4 million over five years will come from terminating programs
Aerospace
China
China's Aviation Industry Corporation (AVIC) has unveiled an upgraded version of the MA 60 weather modification aircraft, designed to enhance its capabilities for meteorological missions. According to AVIC, the new A-configuration variant of the MA 60 has successfully completed airworthiness compliance flight tests.
The latest model incorporates atmospheric detection equipment developed domestically to meet the specifications of the China Meteorological Administration. Testing began in late April at an airport in Suining city, Southwest China's Sichuan province, to validate its performance. During the developmental flight tests, the aircraft underwent eight flights to assess various functions, including controllability, stability, stall warning, air-ground communication, and the dispersal of flame strip, liquid nitrogen, and powder for atmospheric detection purposes.
💡The MA 60 weather modification aircraft is part of the MA60 "Modern Ark" family, developed by AVIC XAC Commercial Aircraft Co Ltd in Xi'an, Northwest China's Shaanxi province.
Electric Vehicles
China
Construction has begun on Tesla's Shanghai Energy Storage Super Factory in Lingang New Area, with production expected to commence in the first quarter of 2025. Once operational, the factory will produce 10,000 units of the Megapack energy storage system annually, totaling nearly 40 gigawatt hours of storage capacity.
This marks Tesla's first energy storage facility outside the United States and represents a significant investment in China, following the establishment of the Shanghai super factory.
💡With the capacity to manufacture over 950,000 electric vehicles annually, the Shanghai Super Factory serves as a production hub and export center for Tesla worldwide.
Singapore
Electric vehicle maker Nio announced last Tuesday that its unit "CHJ Limited" is participating in the Singapore Exchange (SGX) Securities Lending Program. According to the filing, CHJ Limited will lend up to 2,000,000 of Nio’s Class A ordinary shares, which represent only 0.1 percent of the total outstanding shares.
💡As of the end of 2023, Nio had 1,932,063,749 Class A ordinary shares and 148,500,000 Class C ordinary shares outstanding, per the company's annual report.
China
China’s Gotion High-Tech has introduced new advanced batteries, including a Tesla-like cylindrical battery at a lower cost and a prismatic battery with ultra-fast charging, reports Tech Node.
Mass production of the 4695 cylindrical battery, targeting luxury vehicle producers, will begin in the fourth quarter, with overseas shipments first. The nickel cobalt manganese (NCM) battery offers an energy density of 285 Wh/kg, charges from 10% to 70% in nine minutes, and retains 70% capacity for 2,500 cycles.
Gotion's "G-Current" battery, now in mass production, features a 5C charge rate, recharging to 80% in under 10 minutes, and supports various chemistries, including NCM and cheaper lithium iron phosphate (LFP).
💡Gotion also announced its efforts in developing all-solid-state batteries to keep up with global advancements. During their annual technology conference, the management highlighted plans for global expansion despite geopolitical challenges.
Space
South Korea
Korea is opening its own space agency, the Korea AeroSpace Administration (KASA), on May 27 in a bid to enter the global space race, reports Korea Times. KASA, akin to the United States' NASA, is based in Sacheon, about 300 kilometers south of Seoul. With a team of 293 members, the agency aims to lead the nation's space programs, including moon and Mars exploration, while enhancing the competitiveness of Korean companies in the global space industry.
The primary focus of KASA is to transition from government-led space projects to supporting the private sector in leading space development initiatives. As part of this strategy, Korea plans to land a domestically developed spacecraft on the moon by 2032 and on Mars by 2045, to become one of the top five global space powers.
💡Korea intends to develop the next-generation rocket, KSLV-III, and conduct three launches in 2030, 2031, and 2032. The third launch is planned to carry a spacecraft destined for the moon.
Europe-Global
The European Space Agency (ESA) has initiated plans to establish a European counterpart to SpaceX by selecting two companies to provide commercial cargo services to the International Space Station (ISS).
The Exploration Company (TEC), a Franco-German venture established three years ago, and Thales Alenia Space, a Franco-Italian space systems supplier, have been awarded an initial €25 million each to develop a reliable service to low Earth orbit by 2028. The second round of funding, expected to be in the hundreds of thousands of euros, will be decided at ESA's next ministerial meeting in 2025.
💡The move marks ESA's first step in adopting a strategy similar to NASA's, which involves procuring flight services from commercial entities rather than developing rockets and spacecraft internally.
South Korea
The Ministry of Science and ICT (MSIT) announced the successful launch of the nation's first nanosatellite, NEONSAT-1, from a spaceport in Mahia, New Zealand, on April 24. Four hours and 25 minutes post-launch, the Daejeon ground station of the Korea Aerospace Research Institute confirmed the deployment of the satellite’s solar panels and stable power supply. Further communication with the Antarctic King Sejong Station verified bidirectional communication, confirming the success of the launch.
NEONSAT-1, developed under the NEONSAT project initiated in 2020 by KAIST with support from MSIT and the National Intelligence Service, will begin preliminary operations and various function checks. Over May, KAIST will assess the satellite’s performance in orbit and monitor observation images for five months.
💡The satellite is set to commence its Earth observation mission in November 2024, focusing on high-frequency, precise monitoring of the Korean Peninsula and surrounding maritime areas, and rapid response to national security events and disasters.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**