Despite delivering solid earnings, Japan’s TDK Corporation warned that China’s tighter rare earth export controls are heightening supply chain risks, placing growing procurement pressure on manufacturers dependent on critical minerals and pushing geopolitical tensions into the electronic materials sector.

Apple has taken a significant step in the intensifying AI competition with Meta Platforms and Alphabet by acquiring Israeli startup Q.ai, a move that underscores its effort to rebuild momentum in artificial intelligence. Reuters reported the acquisition, citing sources who said the deal is valued at about US$1.6 billion, while the Financial Times put the price closer to US$2 billion. If confirmed, the transaction would rank as Apple’s second-largest acquisition, after its 2014 purchase of Beats Electronics.

Last week, Apple released its latest financial results for the first quarter of fiscal year 2026, with the iPhone 17 series continuing to post strong sales. Overall, iPhone shipments grew 23% year over year, with particularly standout performance in the Chinese market. Apple CEO Tim Cook said the number of users switching from Android to Apple far exceeded expectations. Considering that China’s overall smartphone market did not actually grow in the previous quarter, this implies a relative decline in market share for other Chinese smartphone brands. This undoubtedly adds revenue pressure for other SoC vendors such as MediaTek and Qualcomm.

ByteDance and Alibaba are intensifying their battle for AI dominance in China with planned releases of new flagship models around the 2026 Lunar New Year. This competition marks one of the most significant tech rivalries in the country’s booming AI sector.