Sign up for the Daily Newsletter, sent exclusively to our premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a premium subscription.

Hello reader,

Like most of you reading this, I am guilty of spending too much time on my phone watching Instagram Reels.

It’s very easy to get sucked into that time-killer, and before you know it, 30 minutes have passed, leaving you wondering what exactly you learned in that time. We shouldn’t feel too guilty, of course, as the algorithms powering short-video platforms are pretty adept at giving us the dopamine hits we crave.

Today’s premium story highlights a new trend that’s taking this mobile video obsession to another level: vertical microdramas.

Designed specifically for smartphone viewing, the format has already taken China by storm and is a big revenue generator for production companies. They’re likely coming to your screen soon.

Today we look at:

• Microdramas, big revenues
• Microsoft closing an AI research lab in China
• Other newsy highlights such as South Korean AI startup Wrtn scoring US$73 million in funding and Foxconn planning to double iPhone production in India.

Premium summary

Screen time

Image credit: Timmy Loen

Short, bite-sized videos known as microdramas have taken off in a big way in China. They made more revenue in the country last year than films at the box office did.

Watched vertically on a phone, the trend is now making its way to Southeast Asia.

• Comfort watch: The format’s appeal lies in its convenience. Microdramas feature bite-sized episodes with simple plot lines and cliffhangers.
• Monetization: Whereas traditional streaming platforms tend to operate on a subscription model, most microdramas use a pay-as-you-go approach.
• Think local: Companies in Southeast Asia have jumped on the trend and started producing original microdramas, though they may struggle to compete with Chinese production firms.

Read more: China’s hooked on microdramas. Will Southeast Asia tune in?

News spotlight

Microsoft’s China pullback

Image credit: Timmy Loen

Microsoft has closed its AI lab in Shanghai, marking a significant reduction in the company’s operations in China.

The IoT & AI Insider Lab in Shanghai’s Zhangjiang hi-tech zone was reportedly shut earlier this year.

• By the numbers: In five years of operation, the lab supported 258 projects involving nearly 100 companies. It also trained close to 10,000 professionals
• Successes: As of June 2024, more than 50 firms supported by the lab had secured around US$1.3 billion in external investments.
• Pullout: Last year, Microsoft offered relocation options to hundreds of AI staff in China, carried out layoffs, and closed all its brick-and-mortar stores on the mainland.

See also: Conflict in Google Cloud APAC casts shadow on catch-up bid

The premier event for high-level dialogue on Asia’s future

Unlock the region’s digital future and investment hotspots at the inaugural Asia Economic Summit

Are you trying to make sense of the shifting economic landscape in Asia? So are we. That’s why Tech in Asia and The Business Times are hosting the first-ever Asia Economic Summit, a gathering focused on tackling the complexities of doing business in the region.

We’re bringing together leaders from both the private and public sectors to address critical challenges and explore successful models for collaboration. Connect with CEOs and executives leading growth and innovation across diverse sectors, such as Andre Djokosoetono, CEO of PT Blue Bird Tbk, and Jixun Foo, senior managing partner of Granite Asia.

Early bird tickets are available for a limited time only. Get them here.

Quick bytes

1️⃣ You can’t spell capital without AI
Wrtn, a South Korea-based AI startup, has secured US$73.5 million in its series B funding round. The firm, which offers a chat-based AI service, topped 5 million monthly active users in October 2024.

2️⃣ iPhones, at the double
Taiwanese manufacturing giant Foxconn plans to double iPhone production in India to at most 30 million units by the end of the year. The company is currently testing its new Bengaluru facility, which will have a capacity of 20 million units annually.

3️⃣ Class is in session
Edtech startup PlanetSpark achieved cash flow positivity in the 2025 financial year. The India-based firm, which teaches communication skills to children and adults, also grew its revenue by 60% compared to FY 2024.

4️⃣ Charged up with funding
Indian electric vehicle player Ola Electric will invest US$23.3 million into its battery subsidiary Ola Cell Technologies. The firm is also injecting US$410,000 into its charging infrastructure unit Ola Electric Charging.