Capacity development

ITU and UNDP join forces to harness digital technology for sustainable development

The International Telecommunication Union (ITU) and the UN Development Programme (UNDP) have forged a powerful alliance to highlight the transformative potential of digital technology in achieving the Sustainable Development Goals (SDGs). By combining their unique strengths, these organisations aim to establish a comprehensive framework that promotes innovation and fosters inclusivity within the digital realm.

Moreover, their partnership is dedicated to addressing critical global challenges by leveraging emerging technologies, ensuring that digital advancements are accessible and beneficial to all sectors of society, particularly marginalised communities. In addition to their commitment to innovation, ITU and UNDP prioritise enhancing digital infrastructure and connectivity in developing regions, fully aware that reliable and affordable internet access is fundamental to sustainable development.

They strive to bridge the digital divide through strategic investments and capacity-building initiatives, empowering local communities with the tools and knowledge to effectively utilise digital technologies. Consequently, this collaborative endeavour is essential for driving economic growth, improving educational opportunities, and enhancing health outcomes in underserved areas, ultimately fostering a more equitable digital ecosystem.

Furthermore, beyond infrastructure development, ITU and UNDP advocate for robust digital governance and policy frameworks that ensure the responsible use of technology. Their initiatives focus on promoting transparency and accountability and prioritise safeguarding privacy and security in the digital age. By emphasising digital literacy and skills development, they are rolling out training programs designed to equip individuals with the confidence to navigate the digital landscape effectively.

US grants $123 million to Polar Semiconductor for plant expansion

The US Commerce Department has finalised a $123 million grant for Polar Semiconductor to expand its Minnesota facility, a development anticipated to nearly double the company’s production capacity for power and sensor chips. This grant marks the first award from the Biden administration’s $52.7 billion semiconductor manufacturing and research subsidy program, designed to strengthen domestic chip production. Commerce Secretary Gina Raimondo emphasised that this funding will help establish a new US-owned foundry, raising Polar’s output from about 20,000 wafers to 40,000 per month, serving key industries such as aerospace, automotive, and defence.

The state of Minnesota is contributing $75 million to Polar Semiconductor’s $525 million expansion project. Polar is primarily owned by Sanken Electric, holding a 70% stake, while Allegro MicroSystems owns the remaining 30%. Recently, the company secured investment commitments totalling $175 million from Niobrara Capital and Prysm Capital. Meanwhile, the US Commerce Department has allocated over $35 billion for various semiconductor initiatives, including substantial grants to major companies like Samsung, Intel, TSMC, and Micron Technology.

White House economic adviser Lael Brainard announced that more funding awards will be finalised shortly, with Commerce Secretary Gina Raimondo confirming additional financial support for companies expected in the coming weeks. This initiative is part of the 2022 chips law, which aims to boost US competitiveness against China and significantly enhance domestic chip production. Additionally, Congress has recently approved legislation designed to streamline federal permitting processes for semiconductor manufacturing projects, facilitating quicker and more efficient development in the industry.

Microsoft unveils tool to fix AI hallucinations amid expert concerns

Microsoft has introduced a new service, called Correction, aimed at addressing a significant flaw in AI models, hallucinations, or factually incorrect responses. The tool identifies and revises erroneous AI-generated content by cross-referencing with accurate data sources, such as transcripts. Correction, available through Microsoft’s Azure AI Content Safety API, works with various models, including OpenAI’s GPT-4.

While Microsoft promotes Correction as a way to boost AI reliability, experts remain skeptical. Researchers warn that hallucinations are deeply ingrained in how AI models operate. Since these systems rely on statistical patterns rather than actual knowledge, completely eliminating false outputs might be impossible. They also caution that this solution could create new issues, like giving users a false sense of trust in AI outputs.

Despite these concerns, Microsoft is pushing to demonstrate the value of its AI tools, having invested billions in the technology. However, concerns about performance and cost are mounting, with some clients already pausing AI deployments due to inaccuracies and high expenses. Experts argue that AI, still in its developmental stages, is being rushed into industries without fully addressing its flaws.

TSMC secures key facility for AI server demand

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.

UN adopts ‘Pact for the Future’

On 22 September 2024, world leaders convened in New York to adopt the ‘Pact for the Future’ – a comprehensive agreement designed to reimagine global governance in response to contemporary and future challenges.

The ground-breaking Pact includes a Global Digital Compact and a Declaration on Future Generations, aiming to update the international system established by previous generations. The Secretary-General stressed the importance of aligning global governance structures with the realities of today’s world, fostering a more inclusive and representative international system.

The Pact covers many critical areas, including peace and security, sustainable development, climate change, digital cooperation, human rights, and gender equality. It marks a renewed multilateral commitment to nuclear disarmament and advocates for strengthened international frameworks to govern outer space and prevent the misuse of new technologies. To bolster sustainable development, the Pact aims to accelerate the Sustainable Development Goals (SDGs), reform international financial architecture, and enhance measures to tackle climate change by committing to net-zero emissions by 2050.

Digital cooperation is notably addressed through the Global Digital Compact, which outlines commitments to connect all people to the internet, safeguard online spaces, and govern AI. The Compact promotes open-source data and sets the stage for global data governance. It also ensures increased investment in digital public goods and infrastructure, especially in developing countries.

Why does it matter?

The ‘Pact for the Future’ encapsulates a detailed, optimistic vision geared toward creating a sustainable, just, and peaceful global order. The Summit of the Future, which facilitated the adoption of this Pact as an extensively inclusive process, involves millions of voices and contributions from diverse stakeholders. The event was attended by over 4,000 participants, including global leaders and representatives from various sectors, and was preceded by Action Days, which drew more than 7,000 attendees. Such a forum shows firm global commitments to action, including pledges amounting to USD 1.05 billion to advance digital inclusion.

Three Mile Island plant set for restart amid new deal

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.

Qualcomm and Intel discuss potential merger

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.

Apple expands iPhone 16 production to Brazil

The iPhone 16 series officially launches globally today, with Apple expanding production beyond China and India to include Brazil, where Foxconn is assembling the new model. This is the first time an Apple product is produced in South America at launch, helping the company avoid Brazil’s high import tariffs and mitigate potential supply chain disruptions.

Brazilian regulatory filings confirm that Foxconn’s factory in Jundiaí, São Paulo, is now mass-producing the basic iPhone 16 model. While the plant has previously assembled older iPhone models, this is the first time it is included in the launch lineup for a new release, although it will not produce the higher-end Pro variants.

Previous iPhone models, including the iPhone 14 and iPhone 15, were assembled in Brazil after their initial production in China. In contrast, the iPhone 16 is being produced in Brazil much earlier in the release cycle, highlighting Apple’s strategy to diversify its supply chain and reduce dependence on China. The Brazilian facility is currently focused on the base model, as entry-level iPhones tend to be more popular in the region.

This year also marks a significant milestone for Apple as it launches India-made iPhone 16 Pro and Pro Max models, showcasing the expanding manufacturing capabilities in India.

G42 teams up with Nvidia on AI for weather forecasting

UAE-based AI firm G42 has announced a partnership with US chipmaker Nvidia to focus on developing advanced climate technology. A new operational base and lab will be established in Abu Dhabi to create AI solutions that improve global weather forecasting. This collaboration comes as the UAE seeks to diversify its economy away from oil through heavy investment in AI technologies.

UAE’s government-backed G42 has been making strides in the AI sector, forging agreements with various US firms. Recently, G42 and Microsoft revealed plans to open two AI centres in Abu Dhabi, further expanding the Gulf nation’s capabilities in AI research. These developments align with Abu Dhabi’s broader goals of advancing technological cooperation with the US.

While the UAE builds on AI collaboration, concerns have emerged in Washington about US technology potentially reaching China. To counter this, the US government has introduced stricter export controls on AI chips to the region. However, this has not hampered the UAE’s ambitions for AI growth and strategic partnerships.

Next week, UAE President Sheikh Mohammed bin Zayed Al Nahyan will visit the White House, marking a historic moment. Discussions will centre around regional security and technological cooperation in AI with President Joe Biden, reinforcing the strategic relationship between the two nations.

New Samsung factory to enhance Vietnam’s tech sector

Samsung Display Co has unveiled plans to invest an additional $1.8 billion in a new factory located in northern Vietnam. This facility will specialise in the production of organic light-emitting diode (OLED) displays, targeting both the automotive and technology sectors. Positioned in the Yen Phong industrial park in Bac Ninh province, the site will be in proximity to an existing Samsung Electronics plant.

A memorandum of understanding was signed between Bac Ninh authorities and Samsung Display, marking a significant step for the project. With this investment, Samsung’s total financial commitment in Bac Ninh will rise to $8.3 billion, increasing from the current $6.5 billion. This development reflects the ongoing collaboration between the local government and Samsung.

Over the past decade, Vietnam has established itself as a prime location for electronics manufacturing. Choi Joo Ho, the General Director of Samsung in Vietnam, highlighted the company’s extensive presence, which includes six manufacturing plants and one research and development centre. Cumulatively, Samsung’s investments in the country now amount to $22.4 billion.

Samsung’s expansion in Vietnam signals confidence in the region’s capabilities and its strategic importance within the global supply chain. As the company continues to grow, the move is likely to bolster both local employment and the technological landscape.