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Rolls-Royce to deliver 70 mtu engines to support semiconductor industry in China

Rolls-Royce (RR.L) will provide 70 of its mtu Series 4000 engines, produced in Yulin by MTU Yuchai Power, the Chinese Joint Venture with Yuchai Diesel, for use in generator sets that will be packaged and distributed by emergency power systems provider Hefei Calsion Electric System Co., Ltd. The gensets will be installed at multiple semiconductor manufacturing locations in China to ensure that chip production is not affected by power failures.

The rapid expansion of information technology applications such as artificial intelligence, cloud computing, big data and Internet of Things (IoT), has resulted in growing market demand for semiconductor products. In recent years, Chinese semiconductor enterprises have experienced a significant growth period due to the acceleration of domestic insourcing and the upgrade of industrial technologies.

The guarantee of continuous power supply is critical for semiconductor factories, as the manufacturing process is very sensitive. The products on the production line are at risk of being scrapped after even a few minutes of power disruption. The mtu engine-powered generator sets installed by Calsion will provide uninterrupted switching between diesel engines and grid power to deliver continuous loading capacity under high load conditions, helping to ensure the stable operation of production lines and special process systems such as safety, clean room, and cooling and pure water systems.

As the leader of semiconductor power system solutions, Hefei Calsion Electric System Co., Ltd.  specializes in the R&D, manufacturing, marketing and services of generator sets, and has R&D centers, modern production bases and first-class test systems. Its original semiconductor power system solution has won a market share of more than 70% of the domestic semiconductor industry emergency power system solution-based projects in China. It is a strategic partner and designated OEM manufacturer of Rolls-Royce in China, as the two parties have maintained close cooperation for 18 years.

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Wall Street Set To Jump On Temporary Trade Detente

(Reuters) – U.S. stock index futures jumped around 2 percent on Monday, setting Wall Street up to add to last week’s strong gains, after the United States and China declared a temporary trade truce.

Strong gains in Apple Inc (AAPL.O) and other technology stocks pushed Nasdaq futures NQc1 up more than 2 percent, while S&P 500 e-minis ESc1 touched a near 1-month high. Gains in Dow futures set the blue-chip index up for a near 450-point gain at the open.

Washington and Beijing agreed to a 90-day trade ceasefire during the G20 summit in Argentina on Saturday and U.S. President Donald Trump said China has agreed to “reduce and remove” tariffs below the 40 percent level that the country is currently charging on U.S.-made vehicles.

However, the White House also said that the existing 10 percent tariffs on $200 billion worth of Chinese goods would be lifted to 25 percent if no deal was reached within 90 days.

The trade optimism spilt over to shares of Apple, which gained 3.3 percent in premarket trading.

Trump had said last week that the next round of tariffs could also be placed on the company’s iPhones, as part of the $267 billion list of goods not yet hit by tariffs.

Trade-sensitive Caterpillar Inc (CAT.N), Boeing Co (BA.N) gained over 4.5 percent each, while U.S. carmakers General Motors Co (GM.N), Ford Motor Co (F.N) and Tesla Inc (TSLA.O) rose between 3 percent and 4 percent.

Shares of energy companies also rose as crude prices surged, helping lift Exxon Mobil Corp (XOM.N) up by 2.1 percent and Chevron Corp (CVX.N) by 2.4 percent. [O/R]

“Most of us were hoping that we would come out of these discussions with no new tariffs and a pause, which is ultimately what we got,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

Image from RT.com