In mid-August, TSMC sealed a significant deal to acquire the AP8 facility from panel manufacturer Innolux in southern Taiwan, aiming to bolster its advanced packaging capacity. This new fab is set to produce advanced 3D Chip on Wafer on Substrate (CoWoS) IC packaging services, which are crucial for meeting the rising demand from AI server manufacturers. Expected to begin production in the latter half of 2025, the AP8 facility will have nine times the capacity of TSMC’s existing AP6 fab.
The acquisition, finalised for NTD 17.14 billion, came in under market expectations and was motivated by the need to bypass lengthy environmental assessments associated with new builds. TSMC intends to make internal modifications to the facility, enabling faster equipment installation, with deliveries set to begin as early as April next year.
TSMC Chairman C.C. Wei is optimistic about doubling CoWoS capacity in 2024 and 2025, with a goal of achieving a supply-demand balance by 2026. Analysts forecast that TSMC’s monthly CoWoS output could increase from 32,000 wafers this year to approximately 70,000 by the end of 2025, driven by this strategic expansion.
With an anticipated compound annual growth rate of over 50% for CoWoS capacity from 2022 to 2026, TSMC is committed to accelerating its fab construction timelines, aiming to reduce the typical 3-to-5 years down to just 2 years, ensuring it meets the surging market demand efficiently.
Bank of Canada Governor Tiff Macklem has said that businesses adopting AI could create short-term inflationary pressures by increasing demand. Speaking at an AI conference in Toronto, he noted that while AI-driven productivity growth may benefit the economy in the long run, its immediate effects could add to inflation.
Macklem pointed to rising electricity demand from new data centres as an example of AI’s economic impact. He emphasised that central bankers are working to understand how AI will affect the economy, inflation, and employment. Despite concerns, there is no current evidence that AI displaces labour at a level that would significantly impact overall employment rates.
The Bank of Canada has begun using AI to improve economic forecasting, data analysis, and efficiency, though its application is still in the early stages. Macklem compared the central bank’s cautious approach to AI to cautiously entering a dark room, feeling the way forward before making decisions.
Canada has also introduced a Voluntary Code of Conduct for the responsible development of generative AI systems. Macklem underlined that while AI offers potential benefits, it brings challenges and uncertainties that require careful management by policymakers.
At Amsterdam’s Vrije Universiteit, assistant professor Filip Ilievski is exploring the intriguing intersection of AI and human reasoning. His research focuses on enhancing AI’s ability to solve logic puzzles and riddles, revealing a significant gap in AI’s common sense reasoning. While AI excels at recognising patterns, it struggles with abstract thinking and temporal reasoning, as demonstrated in a recent study where OpenAI’s GPT-4 failed to determine if a character named Mable was alive at noon based on provided details.
Ilievski’s work suggests that researchers can unlock secrets about our cognitive processes by examining how both AI and humans tackle complex tasks. For instance, humans often trust their intuition, which can lead to errors, while AI can sometimes excel at problems that trip us up, such as the classic bat and ball riddle. However, when faced with novel puzzles, AI models still lag behind human performance, indicating a unique advantage in human reasoning skills.
Recent advancements show promise, as newer AI models like GPT-o1 have improved significantly, successfully answering challenging questions and demonstrating a better grasp of logic. Despite these strides, researchers caution that understanding AI may not directly illuminate how human cognition works, highlighting that the two systems operate differently. Ultimately, the collaboration between AI and human intellect could improve cognitive understanding in both realms.
Speaking at the UN Summit of the Future 2024, Google CEO Sundar Pichai described AI as the most transformative technology yet and announced a $120 million Global AI Opportunity Fund. The fund would provide AI education and training worldwide through partnerships with local NGOs and nonprofits.
Pichai highlighted four key areas where AI can contribute to sustainable development: language accessibility, scientific discovery, climate disaster alerts, and economic progress. He stressed the importance of harnessing AI for global advancement while addressing its risks.
He also warned of the potential for an ‘AI divide,’ where some regions may need to catch up in access to the technology. To combat this, Pichai called for smart global regulations that mitigate harm without promoting national protectionism, which could limit the benefits of AI.
Although Pichai did not mention the environmental impacts of AI, he emphasised the need for balanced regulation to ensure equal access and opportunities for AI development worldwide.
Cloudflare is launching a marketplace that will let websites charge AI companies for scraping their content, aiming to give smaller publishers more control over how AI models use their data. Large AI models scrape thousands of websites to train their systems, often without compensating the content creators, which could threaten the business models of many smaller websites. The marketplace, launching next year, will allow website owners to negotiate deals with AI model providers, charging them based on how often they scrape the site or by setting their terms.
Cloudflare’s launch of AI Audit is a big step for website owners to gain better control over AI bot activity on their sites. Providing detailed analytics on which AI bots access their content empowers site owners to make informed decisions about managing bot traffic. The ability to block specific bots while allowing others can help mitigate issues related to unwanted scraping, which can negatively impact performance and increase operational costs. This tool could be handy for businesses and content creators who rely on their online presence and want to safeguard their resources.
Cloudflare’s CEO, Matthew Prince, believes this marketplace will create a more sustainable system for publishers and AI companies. While some AI firms may resist paying for currently free content, Prince argues that compensating creators is crucial for ensuring the continued production of quality content. The initiative could help balance the relationship between AI companies and content creators, allowing even small publishers to profit from their data in the AI age.
Israeli company Voiceitt aims to revolutionise communication for people with speech impairments through its AI-powered speech recognition system. Using personalised voice models, Voiceitt helps those affected by conditions like cerebral palsy, Parkinson’s, and Down syndrome to communicate more effectively with both people and digital devices.
Voiceitt, launched in 2021 as a vocal translator app, is now integrated with platforms such as WebEx, Zoom, and Microsoft Teams. It allows users to convert non-standard speech into captions and text for video calls and written documents, opening up new opportunities for remote work and communication.
Co-founder Sara Smolley views the project as a personal mission, inspired by her grandmother’s struggle with Parkinson’s disease. Voiceitt is designed to offer accessibility in the workplace and beyond, with users like accessibility advocate Colin Hughes praising its accuracy but also advocating for more features.
As the field of speech recognition advances, Voiceitt partners with major platforms and complies with strict privacy regulations to protect user data. Smolley believes the technology will significantly improve users’ independence and enjoyment of modern technology.
The United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan is set to meet US President Joe Biden at the White House to discuss deepening cooperation in AI and advanced technology. The UAE, a major oil producer and long-time US ally, has ambitions to build its own tech industry and seeks increased access to American technology. However, US officials are cautious about the UAE’s growing ties with China, which has led to restrictions on certain tech exports.
In response to US concerns, the UAE has taken steps to reduce Chinese influence in its tech sector, including removing Chinese hardware and selling off investments from Chinese companies. These moves came ahead of a $1.5 billion investment from Microsoft into G42, a UAE-based tech firm. Despite concerns, the US sees potential to strengthen AI collaboration with the UAE, which is investing heavily in the field, with a focus on developing its own AI capabilities.
The UAE hopes that its investment in AI will secure its position as a global technology leader, well beyond its oil-producing years. While China also views the UAE as a potential long-term AI partner, Emirati officials have expressed a desire for closer alignment with the US, prioritising transparency and partnership in their AI ambitions.
Microsoft has announced a deal with Constellation to help restart a unit of the Three Mile Island facility, which has been dormant since 2019 due to operational issues. This agreement has led to a significant increase in Constellation’s shares, which surged by 22%. It’s worth noting that no US nuclear plant has reopened after being shut down.
Jefferies analysts estimate that Microsoft may pay between $110 and $115 per megawatt-hour (MWh) for its 20-year fixed-price agreement with Constellation Energy, marking a notable premium compared to the market expectation of around $100 per MWh. This pricing reflects the growing recognition of the value of nuclear energy as a clean and reliable power source, particularly amid rising demand from data centres driven by AI technology.
Analysts emphasised that customers are increasingly willing to pay substantial premiums for nuclear energy contracts, which supports the financial viability of such projects and enhances the overall volume of power available in the market at competitive rates. This trend could encourage further investments in nuclear energy and strengthen the role of such facilities in meeting the country’s energy needs.
Meta Platforms is preparing to introduce a new audio feature for its AI chatbot, which will allow users to select voices from five celebrities, including Judi Dench and John Cena. As part of its efforts to enhance user engagement, Meta will offer the voice options across its platforms such as Facebook, Instagram, and WhatsApp.
The announcement is expected at Meta’s annual Connect conference, where the company is also set to unveil augmented-reality glasses and provide updates on its Ray-Ban Meta smart glasses. These developments reflect Meta’s push to integrate AI more deeply into everyday interactions through its various products.
Celebrity voices are set to roll out this week in the US and other English-speaking markets. Meta hopes that this new feature will appeal to users seeking a more personalised experience with its AI chatbot, positioning itself in competition with AI giants like Google and OpenAI.
As part of its broader AI strategy, Meta has shifted focus towards integrating celebrity voices after earlier text-based characters saw limited success. The company is committed to making its chatbot a core feature across its platforms, striving to stay ahead in the competitive AI landscape.
Qualcomm has approached Intel to discuss a potential acquisition, a move that could transform the semiconductor landscape. CEO Cristiano Amon is personally engaged in these early talks, which have yet to produce a formal offer. Reports suggest that Qualcomm is especially interested in Intel’s PC design unit and its overall portfolio as part of this exploration.
Intel, once the dominant force in chip manufacturing, has seen its stock plummet nearly 60% this year, highlighting its current vulnerability. A deal with Qualcomm would likely face intense scrutiny from antitrust regulators in the US, China, and Europe, possibly requiring Qualcomm to divest parts of Intel to gain approval.
If successful, this acquisition would mark a historic move in the tech sector, rivalling Broadcom’s attempted $142 billion takeover of Qualcomm in 2018. However, how Qualcomm would finance the deal, given its $13 billion cash reserves and Intel’s $122 billion valuation, remains unclear. Additionally, Qualcomm would need to navigate the complexities of managing Intel’s extensive manufacturing operations, a challenge for a company that currently relies on external contractors for chip production.
Intel is actively seeking to revitalise its business by prioritising AI processors and restructuring its operations, which includes pausing factory construction in Poland and Germany. As discussions with Qualcomm progress, both companies will need to navigate significant challenges in a rapidly changing market.
