Capacity development

Resonac plans to pursue acquisitions after reducing borrowing

Resonac Holdings, a leading chip materials maker in Japan, is positioning itself to make strategic acquisitions after reducing its borrowing, according to CEO Hidehito Takahashi. Speaking to Reuters, Takahashi expressed the company’s intention to take an aggressive approach this year, particularly eyeing opportunities when a state-backed fund exits its competitor JSR, a photoresist maker recently taken private.

Resonac, formed by Showa Denko’s acquisition of Hitachi Chemical, has been divesting assets, including a planned partial spin-off of its petrochemical business. Takahashi sees JSR’s potential exit as a key opportunity for Resonac to expand its footprint in the semiconductor materials sector. Japan’s semiconductor market remains competitive, despite the country’s reduced role in chip manufacturing, and companies like Resonac must scale up to remain viable.

In addition to its expansion efforts, Resonac is establishing an R&D centre in Silicon Valley to strengthen its ties with firms in the region. However, Takahashi made it clear that the company is not currently considering manufacturing materials in the US, though future demand could prompt a reassessment of such plans.

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DeepSeek’s success drives Baidu’s plan to open-source Ernie 4.5

Baidu has announced plans to open-source its upcoming Ernie 4.5 chatbot series, citing inspiration from the success of AI firm DeepSeek. The move is aimed at encouraging greater adoption of its technology by making it more accessible.

Baidu also plans to provide premium chatbot services free of charge starting in April, with the open-source launch scheduled for June.

DeepSeek’s open-source approach, combined with its innovative R1 model, has gained widespread attention and increased adoption of foundational AI tools. Baidu CEO Robin Li highlighted the significance of this strategy in shaping the company’s decision.

He expressed confidence in the technology behind Ernie 4.5, which Baidu claims will be its most advanced model to date.

Despite advancements in AI, Baidu’s Q4 2024 results revealed a 2% revenue decline to 34.12 billion yuan, slightly ahead of expectations. Growth in the Cloud AI sector, up 26% year-on-year, partly offset a 7% drop in its online marketing business.

Weakness in China’s economy, particularly the property market, has contributed to reduced advertising demand.

Baidu handled 1.65 billion daily interactions on its Ernie platform in December, up from 600 million in August. However, its US-listed shares dropped 7% in early trading after the results.

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AI leadership goal drives South Korea’s GPU investment

South Korea has unveiled plans to acquire 10,000 high-performance GPUs by the end of the year, aiming to strengthen its national AI computing capabilities.

Officials emphasised that global AI competition has escalated from corporate rivalries to clashes between nations’ innovation ecosystems. Acting President Choi Sang-mok stated that public-private cooperation would be key to launching services at the country’s national AI computing centre.

The initiative comes amid the US government’s newly implemented restrictions on exporting AI chips, which categorise countries into tiers. South Korea remains exempt from these restrictions, allowing it access to advanced GPUs.

Details on the budget, specific GPU models, and private sector partners are expected to be finalised by September, according to the Ministry of Science and ICT.

US-based Nvidia dominates the GPU market with an 80% share, with rivals Intel and AMD trailing behind. Meanwhile, OpenAI, supported by Microsoft, is developing its first in-house AI chip to reduce dependency on Nvidia.

Chinese startup DeepSeek has also entered the AI scene with models prioritising computational efficiency over raw processing power, potentially narrowing the technological gap with US-made processors.

As nations race to secure technological supremacy, South Korea’s move signals its commitment to advancing its AI infrastructure and staying competitive in the global AI ecosystem.

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Chip experts nominated for Samsung’s board

Samsung Electronics has nominated two of its top chip executives and a semiconductor expert for its board, aiming to enhance its position in the competitive chip market. The move reflects a strategic effort to revitalise its struggling semiconductor business.

Jun Young-hyun, head of Samsung’s chip division, and Chief Technology Officer Song Jai-hyuk have been proposed for board membership. Additionally, Lee Hyuk-jae, a professor at Seoul National University and leader of its semiconductor research centre, has been named as an outside director.

Samsung has been working to regain its footing in the semiconductor industry, where it recently lost market leadership in high-bandwidth memory (HBM) chips to rival SK Hynix. HBM chips are crucial for AI-driven GPUs, a rapidly growing market dominated by firms like Nvidia.

The nominations will be presented for approval at Samsung’s shareholders’ meeting scheduled for 19 March. The company hopes the addition of these experts will strengthen its long-term strategy in the chip sector.

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Polish cybersecurity to gain from Microsoft funding

Microsoft has announced plans to invest an additional $700 million in Poland, aiming to strengthen the country’s cybersecurity capabilities.

The investment will be carried out in collaboration with Poland’s armed forces, marking a significant boost in security infrastructure.

The funding forms part of the second phase of Microsoft’s earlier commitment to the region, following a $1 billion data centre project announced in 2020.

That project saw the opening of a data centre in 2023, which provides cloud services to businesses and government institutions.

Polish Prime Minister Donald Tusk joined Microsoft President Brad Smith at a press conference to discuss the plans. The investment highlights the growing importance of cybersecurity in the partnership between Microsoft and Poland.

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Vietnam opens door for Starlink to launch satellite service

Vietnam is set to adopt new regulations allowing Elon Musk’s Starlink to offer satellite internet services in the country, granting it full control over its local subsidiary. This decision follows prolonged negotiations between Vietnam and SpaceX and marks a shift in Vietnam’s policy towards foreign investment in satellite internet services. The move is seen as a diplomatic gesture towards SpaceX, which could help alleviate tensions amid concerns over potential tariffs from US President Donald Trump.

The new rules, set to be approved by Vietnam’s parliament, will allow foreign companies with low-orbit satellite networks to operate under a pilot scheme until 2030. SpaceX’s efforts to enter Vietnam had previously been stalled in late 2023 due to a ban on foreign control, a requirement for Musk’s involvement. The new regulations are part of broader efforts by the Vietnamese government to remove obstacles in technological and scientific activities.

With plans for a $1.5 billion investment in Vietnam, SpaceX has been expanding its supplier network in the country. If Starlink attracts significant local subscribers, it could help reduce the growing trade surplus Vietnam has with the US, which reached a record $123.5 billion last year. As US tariffs continue to threaten Vietnam’s export-driven economy, the government is also seeking ways to balance trade by increasing imports from the US, including agricultural products.

The shift in Vietnam’s stance reflects a desire to play a more flexible role in international trade relations, especially as tensions between the US and its trade partners escalate under Trump’s administration. The outcome of this policy change could have significant implications for both Starlink’s expansion and Vietnam’s relationship with the US.

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OpenAI weighs governance changes to block takeover

OpenAI is considering granting special voting rights to its non-profit board as part of new governance measures aimed at protecting the power of its directors amid a potential takeover bid from Elon Musk. The company’s CEO Sam Altman and board members are reportedly evaluating the move as OpenAI transitions to a for-profit structure. This would allow the non-profit board to retain control over key decisions, potentially blocking hostile takeovers, including Musk’s recent $97.4 billion acquisition offer.

The proposal comes after Musk’s consortium attempted to acquire OpenAI, with the company rejecting the offer, stating that it is not for sale and dismissing future bids. Musk’s bid appears to be driven by concerns over OpenAI’s shift toward profitability, as the company seeks to secure more funding to remain competitive in the AI sector. The special voting rights would give the non-profit board the ability to overrule major investors such as Microsoft and SoftBank, ensuring that OpenAI’s leadership retains influence over key decisions.

This move reflects OpenAI’s efforts to maintain control over its future direction while fending off external pressures from investors and potential acquirers. No final decision has been made yet, but the proposal is seen as a key strategy to safeguard the company’s independence as it navigates the evolving AI landscape.

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Taiwanese companies eye expansion in Texas

Taiwanese electronics companies are preparing to increase investments in Texas, with major announcements expected in May, coinciding with President Donald Trump’s first 100 days in office. Richard Lee, head of the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that several large Taiwanese companies, particularly those in the AI server industry, are looking to expand their operations in Texas. This follows proactive efforts by Texas’ Republican-led government to attract Taiwanese investment.

The move comes as Trump has criticised Taiwan for its semiconductor business and threatened tariffs on trade partners with significant trade deficits, potentially targeting Taiwan. Last week, Taiwan’s President Lai Ching-te pledged to invest more in the US, adding to the momentum. Companies like Foxconn, Compal, and Inventec, which already have operations in Texas, are expected to announce further expansions, particularly to accommodate the growing demand for AI-related technologies.

Foxconn, which manufactures products for major tech companies like Apple and Nvidia, has already made a $33 million investment in land and factory buildings in Texas. With the demand for AI servers rising, Taiwanese manufacturers are eyeing Texas as a strategic location to meet the growing market needs. However, neither Foxconn nor Compal has yet provided specific details on their plans.

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Indian music industry joins lawsuit against OpenAI

Several of India’s leading Bollywood music labels, including T-Series, Saregama, and Sony, seek to join a lawsuit against OpenAI in New Delhi. They are concerned that the company’s AI models may have used their sound recordings without permission, potentially violating copyright laws. The legal action follows a previous lawsuit filed by Indian news agency ANI, which accused OpenAI’s ChatGPT of using content without authorisation to train its models. The music labels argue that this issue has significant implications for the global music industry.

The music companies, which represent major Indian and international music acts, claim that OpenAI’s AI systems could extract lyrics, compositions, and sound recordings from the internet without consent. T-Series, known for releasing thousands of songs annually, and Saregama, which holds a vast catalogue of iconic Indian music, are leading the charge. The Indian Music Industry (IMI), which also represents global labels like Sony Music and Warner Music, is pushing for the case to be heard in court, as the outcome could impact the future use of copyrighted content in AI training.

OpenAI, backed by Microsoft, argues that it adheres to fair-use principles by using publicly available data to build its AI models. However, the company is facing increasing legal pressure from multiple sectors worldwide, including recent lawsuits in Germany, where GEMA accused OpenAI of unlicensed use of song lyrics. OpenAI has opposed the Indian lawsuit, claiming that Indian courts do not have jurisdiction over the matter, given the company’s US base.

The next court hearing, which could shape the future of AI and copyright law in India, is scheduled for 21 February. This legal battle is gaining attention, particularly as OpenAI’s chief, Sam Altman, recently visited India to discuss the country’s plans for developing low-cost AI technology.

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GlobalWafers confirms US investments are on track

Taiwan’s GlobalWafers confirmed on Friday that its investments in the US are proceeding as planned, despite potential changes under the US CHIPS Act. The company has been awarded $406 million in government grants to expand its silicon wafer production in Texas and Missouri. However, the Biden administration is considering changes to some CHIPS Act funding, which has raised concerns for GlobalWafers, as sources indicated there could be delays or renegotiations of some semiconductor-related disbursements.

GlobalWafers CEO Doris Hsu stated that the company has not yet received any notifications regarding changes to its subsidy terms. She emphasised that, if adjustments to the CHIPS Act do occur, the company would need to reassess its investment strategy in the US. Hsu added that the decision would depend on factors such as US demand, pricing conditions, and potential tariffs, though she noted that these scenarios are still hypothetical at this stage.

The company is moving forward with its expansion plans across three US plants, with funding tied to specific milestones. Hsu reassured that the planned investments are continuing according to schedule, with no immediate changes to the company’s strategy. GlobalWafers remains optimistic about its US operations, bolstered by its existing factories in the country and its strong global presence.

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