South Korea’s chip industry faces rising international pressures

South Korea’s ruling party has proposed a new chips act designed to offer subsidies to chipmakers and provide an exemption from the national cap on working hours. The legislation comes as the country faces increased competition from rivals in China, Taiwan, and other nations, along with potential risks from measures threatened by incoming United States President Donald Trump. The semiconductor sector is crucial for South Korea‘s economy, accounting for 16% of total exports last year.

President Yoon Suk Yeol recently warned of challenges posed by Trump’s threat of steep tariffs on Chinese imports, which could lead Chinese rivals to cut export prices and impact South Korean chip firms abroad. The bill, which requires approval from the main opposition party, also includes provisions allowing extended working hours for some research and development employees. However, Samsung’s labour union has opposed this, arguing that the company is deflecting blame for its financial struggles.

Samsung has apologised for disappointing profits as it lags behind competitors like TSMC and SK Hynix in the AI chip market. Global competition has intensified as countries like China, Japan, and the United States have been subsidising their chip manufacturers. In a recent statement, lawmaker Lee Chul-gyu stressed that the proposed act would help South Korean companies remain competitive amid the ongoing semiconductor trade tensions between the United States and China.

Surge in AI-capable PC sales drives market growth

Sales of AI-capable PCs surged to 13.3 million units in Q3 2024, making up 20 per cent of total PC shipments, according to Canalys. Defined by features like dedicated AI chipsets, these devices gained traction as more users explore on-device AI functions. Windows PCs led this segment, with a 53 per cent market share, marking the first time Windows devices dominated AI-capable PC shipments.

The expansion of Windows 11 and processor advancements are expected to fuel further adoption, although challenges remain. Convincing consumers to invest in AI-enabled PCs is essential as applications for on-device AI evolve. Canalys noted the introduction of Snapdragon X-series chips, AMD’s Ryzen AI products, and Intel’s Lunar Lake processors, all aligning with this trend.

However, support for Microsoft’s AI-driven Copilot+ on x86 chipsets is awaited. Although new devices show promise, many channel partners remain cautious. A recent survey indicated 31 per cent of partners are not planning to offer Copilot+ PCs in 2025, with another 34 per cent forecasting minimal sales of these premium models.

With Windows 10 nearing end-of-support, upcoming quarters present a pivotal moment to encourage upgrades. Moving users to AI-enabled PCs could modernise an ageing PC base, opening new pathways for AI use on personal devices.

AI-driven job surge in India by 2028

India’s technology workforce is expected to expand significantly by 2028, creating an estimated 2.73 million new tech jobs, according to a ServiceNow report. As AI transforms industries nationwide, the overall workforce in India is projected to increase by 33.89 million, rising from 423.73 million in 2023 to 457.62 million. This growth is anticipated to bring a wave of new opportunities for professionals, particularly in tech-focused roles.

The retail sector is expected to drive the bulk of new employment, requiring nearly seven million additional workers as it adapts to tech innovations. Job opportunities in retail will increasingly demand skills in software development and data engineering, aligning with a broader shift towards a tech-enabled workforce. Other sectors set for growth include manufacturing, which anticipates 1.5 million new roles, as well as education and healthcare, each expected to see hundreds of thousands of new job openings.

ServiceNow’s research underscores the need for upskilling initiatives to support this tech-driven transition. Companies and policymakers are urged to work together in facilitating training efforts, ensuring a seamless shift for professionals moving into technical roles. Strategic investments in tech skills will also provide pathways for individuals to pursue advanced digital careers across various industries.

Demand for tech roles such as Software Application Developers, Systems Software Developers, and Data Engineers is expected to soar, with tens of thousands of new positions in these fields. Other high-demand roles include Web Developers, Data Analysts, and Software Testers, reflecting a growing need for skilled professionals to support expanding digital economy in India.

ChatGPT use in Korea reaches 5 million in October

In a significant rise, over 5 million Koreans used the ChatGPT app in October, a sevenfold jump from the previous year, according to data from WiseappㆍRetailㆍGoods. This surge marks a milestone, with around 10 percent of smartphone users in Korea, totalling 51.2 million, now engaging with ChatGPT regularly.

Reports reveal that Korean users are also spending more time on the app, averaging 51.6 minutes each month—an increase of 20 minutes compared to last year. Frequency of use has similarly grown, with users logging into ChatGPT around 5.7 days a month, up from 3.2 days last year.

The increase in Korea is part of a larger global trend, with ChatGPT visits worldwide reaching 3.1 billion in September, a dramatic 112 percent increase year-on-year. This global growth underscores the rising appeal and practicality of AI applications like ChatGPT.

Analysts attribute this trend to ChatGPT’s expanding capabilities, making it a versatile tool for both personal and professional use. As more people discover its potential, ChatGPT’s popularity is expected to continue climbing globally and within Korea.

AI-generated profile pics spotted on Instagram

Instagram may soon let users create AI-generated profile pictures directly within the app, according to new findings by developer Alessandro Paluzzi. A screenshot Paluzzi shared on Threads suggests users will see an option to ‘Create an AI profile picture’ while updating their profile image. This addition hints at Instagram’s push toward integrating AI more closely with user experiences.

Meta appears to be exploring similar AI-powered features across its platforms, including WhatsApp and Facebook. The company has made strides with its Llama AI models, designed to generate creative images from text prompts. Meta AI’s capabilities are already visible on WhatsApp, where a test feature has allowed some users to create images from scratch, though its rollout has been slow.

For now, Instagram users are limited to using avatars generated from actual images. An AI-generated option would offer a more creative and flexible way to personalise their profiles, adding a fresh layer of expression through custom images generated by prompts.

Meta has not confirmed any launch date for this feature on Instagram or other apps. While the latest Instagram beta does not yet include it, more updates are expected, and users could soon find themselves with a new tool for designing unique profile pictures.

European search initiative between Ecosia and Qwant aims to reduce big tech reliance

Ecosia, the Berlin-based eco-conscious search engine and Qwant, France’s privacy-focused search platform, are teaming up to build a European search index. The joint venture, named European Search Perspective (EUP), seeks to reduce reliance on tech giants like Google and Microsoft, whose search APIs have become increasingly costly. This collaboration is set to foster innovation, particularly in integrating generative AI technologies into search experiences.

Both companies currently rely on Big Tech for their search backends but are determined to develop a sustainable alternative that aligns with their unique values. EUP’s index, expected to launch in early 2025, will serve traffic in France before expanding to Germany and other European languages. The partnership will enable Qwant and Ecosia to retain their distinct user experiences while benefiting from shared resources and investment.

Privacy and data sovereignty are at the heart of the initiative. Unlike major competitors, EUP’s index won’t personalise results based on user data, maintaining a privacy-first approach. This move aligns with Europe’s growing emphasis on strategic autonomy in technology, especially as AI advances create both opportunities and risks. As the first step toward a more independent tech ecosystem, EUP represents a significant shift in Europe’s search market, challenging the dominance of US tech giants and laying the groundwork for a more diverse, innovative digital future.

Japan outlines $65 billion tech aid without raising taxes

Japan’s government will not impose any tax increases to finance its ambitious 10 trillion yen ($65 billion) plan aimed at bolstering the country’s semiconductor and AI sectors, Industry Minister Yoji Muto announced on Tuesday. The statement followed Prime Minister Shigeru Ishiba’s unveiling of the substantial aid package to strengthen Japan‘s technology industry.

Prime Minister Ishiba clarified that deficit-covering bonds would not be issued to fund the initiative. The government’s approach to supporting high-tech projects is intended to enhance Japan’s global competitiveness without burdening taxpayers or adding to the national debt.

The funding strategy underscores Japan’s commitment to advancing domestic technology sectors while maintaining fiscal responsibility. The measures reflect a broader effort to secure the nation’s position in critical technology fields, vital for economic growth and national security.

AI startup Cogna secures $15M to revolutionise enterprise software

Ben Peters, known for his work in autonomous vehicles, is shifting gears with Cogna, a UK-based AI startup that just secured $15M in Series A funding led by Notion Capital. Hoxton Ventures and Chalfen Ventures also joined the round, which follows an earlier $4.75M seed investment. Cogna’s mission is to revolutionise enterprise resource planning (ERP) by using AI to develop custom software tailored to businesses’ specific workflows.

Cogna’s AI-driven platform claims to streamline the traditionally cumbersome and expensive ERP processes used for managing procurement, supply chains, finance, and more. Customers like Cadent Gas and Network Plus have already adopted Cogna’s solutions, which deliver bespoke software experiences through a seamless SaaS interface. Peters emphasises that the platform enables non-technical teams to articulate their needs in natural language, letting the AI handle the rest.

Leveraging tools from providers like OpenAI and Anthropic, UK based Cogna combines generative AI with specialised engineering to write code that meets unique enterprise requirements. This approach positions Cogna to compete with established IT consulting giants while carving a niche in the lucrative enterprise AI market. Peters, drawing on his expertise from FiveAI, is confident in his ability to adapt and innovate as Cogna scales its groundbreaking solutions.

Elon Musk’s AI chatbot expands to free users

Elon Musk’s social media platform X is testing a free version of its AI chatbot, Grok, which was previously exclusive to premium subscribers. Over the weekend, reports surfaced from users and researchers indicating that some free accounts in regions like New Zealand now have access to the AI tool. While usage is capped to 10 queries every two hours for the Grok-2 model, this marks a significant expansion of the technology’s reach.

Grok, developed by Musk’s company xAI, launched earlier this year with advanced features like image generation and understanding, powered by Black Forest Labs’ FLUX.1 model. Previously available only to paying users, the decision to extend limited access to free users may reflect xAI’s strategy to grow its user base and improve feedback for refining its technology.

To use Grok for free, accounts must be at least seven days old and linked to a phone number. This move positions xAI to compete with AI giants like OpenAI’s ChatGPT and Google’s Gemini, while also potentially bolstering its valuation, which reportedly reached $40B in recent funding discussions. This test of free access could accelerate Grok’s development cycle and further establish xAI in the competitive AI market.

OpenAI’s new AI model takes a different approach

AI companies, including OpenAI, are shifting away from the ‘bigger is better’ philosophy for training models. Instead, they are developing techniques that allow algorithms to ‘think’ in more human-like ways. These methods aim to address challenges such as massive energy consumption, hardware failures, and data scarcity that have hindered advancements in large language models.

OpenAI’s new model, o1, uses a technique called ‘test-time compute’, allowing it to consider multiple answers and choose the best option during use. This approach improves performance in complex tasks, like problem-solving and decision-making, without needing extensive pre-training. Noam Brown, an OpenAI researcher, revealed that even brief ‘thinking’ boosts the model’s capabilities significantly.

The industry-wide shift has broader implications for AI hardware, especially as Nvidia’s chips have been critical to AI training. Experts predict a move towards distributed cloud-based servers for inference tasks, potentially reshaping the demand landscape for chips. Prominent investors, such as Sequoia and Andreessen Horowitz, are monitoring these changes closely as they may impact investments in AI infrastructure.