The Huawei Lianqiuhu Research and Development Center, located in Western Shanghai, is divided into multiple areas with a total of 8 groups served by tram.
Shanghai residents can now hail a ride in a completely driverless robotaxi, part of China’s aggressive push to lead the autonomous vehicle race. The development is a milestone for China’s autonomous vehicle industry, as Shanghai joins other major cities like Beijing, Shenzhen, and Guangzhou in allowing robotaxis to operate without safety operators physically present in the vehicles.
This news comes as tech giant Huawei unveils a sprawling new R&D center (pictured) designed to accommodate more than 35,000 scientists, engineers, and other workers.
More on Shanghai’s robotaxis
The Chinese government has added Shanghai to its growing list of cities where driverless robotaxis operate without safety supervisors. Residents in the city can now book free rides in robotaxis of four companies: Baidu, SAIC Motor-owned Saike Technology, Pony.ai, and Auto X. The program covers parts of Shanghai’s Pudong district, covering 205 kilometers of roads (circa 127.3 miles)
These programs aim to compete with U.S.-based Tesla and Alphabet/Google-backed Waymo’s similar programs operating on the west coast of the U.S.
While the development offers new options for residents, some taxi drivers in China are worried, as CNBC has noted. Baidu’s Apollo Go robotaxi service has gained significant traction, particularly in Wuhan, where over 70% of rides were fully driverless as of April 2024. CNBC noted that Apollo Go, Baidu’s robotaxi unit, recently became one of the top 10 trending hashtags on social media platform Weibo following rapid user adoption in Wuhan city, where the company began operating fully driverless vehicles in certain districts continuously in March. Despite these concerns, the Chinese government continues to support the development of autonomous vehicles, with multiple cities allowing robotaxi testing and operations.
| Company | Ticker | Exchange | 2020 R&D billion$ | 7/5/24 | 7/12/24 | 7/5/24 to 7/12/24 | 1/1/22 to 7/12/24 |
|---|---|---|---|---|---|---|---|
| Alphabet/Google | GOOGL | NASDAQ | 27.303 | 190.60 | 186.62 | -2.09% | 28.84% |
| Microsoft | MSFT | NASDAQ | 17.198 | 467.56 | 453.70 | -2.96% | 34.90% |
| Volkswagen | VWAGY | OTC | 17.259 | 12.12 | 12.55 | 3.55% | -57.02% |
| Apple | AAPL | NASDAQ | 18.667 | 226.34 | 230.54 | 1.86% | 29.83% |
| Meta Platforms | META | NASDAQ | 13.874 | 539.91 | 498.12 | -7.74% | 48.10% |
| Intel | INTC | NASDAQ | 14.503 | 32.02 | 34.50 | 7.75% | -33.01% |
| Johnson & Johnson | JNJ | NYSE | 13.750 | 146.48 | 149.88 | 2.32% | -12.39% |
| Roche | RHHBY | OTC | 14.143 | 34.03 | 35.69 | 1.04% | -30.95% |
| Merck | MRK | NYSE | 11.381 | 126.45 | 127.76 | 1.04% | 66.70% |
| Novartis | NVS | NYSE | 9.387 | 108.13 | 111.70 | 3.30% | 27.70% |
| Toyota | TM | NYSE | 10.724 | 206.45 | 207.59 | .55% | 12.03% |
| Pfizer | PFE | NYSE | 8.336 | 28.05 | 28.92 | 3.10% | -51.02% |
| Alibaba | BABA | NYSE | 6.006 | 74.52 | 79.65 | 6.88% | -32.95% |
| General Motors | GM | NYSE | 6.727 | 46.52 | 49.01 | 5.35% | -16.41% |
| Honda | HMC | NYSE | 8.806 | 32.45 | 32.59 | 0.43% | 14.55% |
| Ford | F | NYSE | 9.340 | 12.84 | 14.03 | 9.27% | -32.45% |
| AbbVie | ABBV | NYSE | 13.949 | 167.25 | 170.28 | 1.81% | 25.76% |
| Sanofi | SNY | NYSE | 7.750 | 49.66 | 51.33 | 3.36% | 2.45% |
| Cisco | CSCO | NASDAQ | 6.331 | 46.65 | 47.38 | 1.56% | -23.65% |
| Bristol Myers Squibb | BMY | NYSE | 7.130 | 39.66 | 40.46 | 2.02% | -35.11% |
| AstraZeneca | AZN | NYSE | 6.056 | 77.34 | 79.22 | 2.43% | 36.00% |
| IBM | IBM | NYSE | 5.368 | 172.02 | 182.83 | 3.87% | 36.79% |
| Oracle | ORCL | NYSE | 6.928 | 144.83 | 144.77 | -0.04% | 66.00% |
| Eli Lilly | LLY | NYSE | 8.606 | 914.57 | 948.40 | 3.70% | 243.34% |
| Stellantis | STLA | NYSE | 5.309 | 19.56 | 20.31 | 3.83% | 3.94% |
Huawei’s billion-dollar innovation bet
Echoing China’s tech ambitions, Huawei Technologies Co., Shenzhen, China, announced last week that it had completed its Lianqiu Lake R&D Center. The facility cost $1.4 billion and covers 2,600 acres on which more than 40,000 offices were built which will house 35,000 Huawei personnel. The center is expected to combine all of the company’s R&D efforts, including work on HiSilicon, 5G and 6G wireless technologies, smartphones, automobiles, and digital energy research. The center is divided into eight districts and will have roads, trains, and elevated overpasses to connect each one to another. The project took three years to complete. The center is the highlight of the Xicen Science and Technology Innovation Center in the Yangtze River Delta Integration Demonstration Zone.
U.S. government releases new plan to ensure secure science
The White House Office of Science and Technology Policy (OSTP) announced last week that federal research agencies must now certify proper security requirements for covered institutions, including those in academia. This directive mandates certain institutions to implement cybersecurity programs for R&D security, a move the OSTP attributes to growing threats.
The new guidance aims to enable the national R&D enterprise, its research agencies, and participants to “respond appropriately” by ensuring that institutional research security programs and cybersecurity protocols including foreign travel security measures, research security training, and export control training.
R&D World Index Week Ending July 05, 2024 – Sectors
| Category | 7/05/24 | 7/12/24 | 7/05/24 to 7/12/24 | 1/1/22 to 7/12/24 |
|---|---|---|---|---|
| ICT | 1898.45 | 1858.11 | -2.12% | 28.18% |
| Automotive | 329.94 | 336.08 | 1.86% | -1.70% |
| Biopharmaceutical | 1691.62 | 1743.64 | 3.08% | 69.58% |
OECD report projects unemployment rats to pick up slightly
The Paris, France-based Organization for Economic Cooperation and Development (OECD) issued its annual report on the global job market last week which stated that unemployment rates are set to pick up only slightly across the world’s rich countries in the short term while real wages will continue to rise as profit growth cools. The report states wages in several countries, including the U.S., have been climbing faster than prices over the past year, but remain below 2019 levels. The number of job vacancies is falling relative to the number of people looking for work.
Ariane 6 rocket competes with SpaceX
A new European rocket, the Ariane 6, is expected to provide competition this year to SpaceX, Hawthorne, California. SpaceX has become the primary rocket of choice for Europe after delays and malfunctions left it unable to launch and orbit its spacecraft. Ariane 6 is operated by the European consortium Ariane-space, Evry-Courcouronnes, France. The Ariane 6 conducted its maiden flight last week, which was considered a success, despite the launcher coasting in orbit without releasing its final batch of payloads. Germany has used SpaceX rockets for its military missions but France has delayed its launches until Ariane 6 equipment becomes available. Ariane rockets are launched from the organization’s launch site in French Guiana (on the northeast coast of South America).
IEA revises oil demand forecast downward
Last week, the International Energy Agency (IEA), Paris, stated that its forecast for oil-demand growth in 2025 will fall from its previous forecast. The IEA also raised its oil supply estimate for 2025, which reinforces its expectation of a major oil glut this decade. The IEA reduced its demand forecast from 1 million barrels per day in 2025 to 980.000 barrels. The IEA currently sees demand at 104 million barrels of oil per day. Demand in OECD countries is facing a structural decline as the industry adopts energy-efficient measures and rolls out electric vehicles, economic growth remains weak despite major central banks starting to cut interest rates.
U.S. government selects ChiPS Act R&D facilities
The White House and the U.S. Department of Commerce (DOC) announced last week that they are in the selection process for the first three ChiPS and Science Act R&D facilities. The U.S. government has already earmarked billions of dollars for semiconductor manufacturers, including Intel, Samsung, and Taiwan Semiconductor Manufacturing Company (TSMC) for U.S.-based plants. However, part of the bill includes funding for R&D facilities and the U.S. government is now preparing to make those awards. The ChiPS Act includes up to $11 billion for R&D and the U.S. government intends to award up to $300 million for the first R&D facilities, National Semiconductor Technology Center (NSTC). Prototyping and the National Advanced Packaging Manufacturing Program will also receive these awards. Program members and researchers can conduct 300-mm research, prototyping, and packaging at these sites.
The R&D World Index (RDWI)
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
The R&D World Index (RDWI) for the week ending July 12, 2024, closed at 3937.83 for the 25 companies in the RDWI. The Index was up 0.45% (or 17.82 basis points). Twenty-one RDWI members gained value last week from 0.43% (Honda) to 9.27% (Ford Motors). Four RDWI members lost value the previous week from -0.04% (Oracle) to -7.74% (Facebook/Meta Platform).
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