China’s chipmaking equipment purchases are expected to decline in 2025, following three years of growth, due to overcapacity and increasing restrictions from US sanctions. After purchasing $41 billion in equipment in 2024, which accounted for 40% of global sales, China’s spending is predicted to fall by 6% to $38 billion this year, marking the first decline since 2021. The drop in demand is attributed to reduced purchases in response to export controls and an excess of manufacturing capacity.
Despite these challenges, China has been a key driver for the global wafer fabrication equipment market over the past few years, even as other sectors saw downturns. Much of China’s equipment buying has been linked to stockpiling efforts in response to US sanctions aimed at limiting China’s ability to produce advanced chips, particularly for military use. Chinese firms, like SMIC and Huawei, have continued to advance in chip production, although at a higher cost and with more effort, while also focusing on expanding in the mature-node chip market.
In addition to growing its domestic production capabilities, China’s leading equipment manufacturers, such as Naura Technology Group and AMEC, are expanding internationally. However, the country still faces significant challenges in self-sufficiency, particularly in areas like lithography systems, testing, and assembly tools. While China’s domestic companies have made strides in equipment sales, they still rely heavily on foreign suppliers for advanced technology in these areas.
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Lam Research, a leading US-based chip toolmaker, has announced plans to invest over 100 billion rupees ($1.2 billion) in Karnataka, India. The company has signed a memorandum of understanding with the Karnataka Industrial Area Development Board to facilitate the investment, which was revealed during the ‘Invest Karnataka’ event.
The initiative aligns with India’s efforts to strengthen its semiconductor ecosystem. Prime Minister Narendra Modi’s government has introduced a $10 billion incentive programme to attract global chip firms. With semiconductor market projected to reach $63 billion by 2026 in India, the country is emerging as a significant player in the global semiconductor race.
Karnataka, home to Bengaluru, serves as a critical driver of India’s economy. Known for its contributions to IT services, software, and manufacturing exports, the state is increasingly positioning itself as a hub for high-tech investments.
India’s IT minister hailed Lam Research’s investment as a major step in the nation’s semiconductor ambitions. The announcement reflects growing confidence in the government’s vision for a robust and competitive semiconductor industry.
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EDF has announced the selection of four sites on its land for data centres as it seeks to accelerate investment in energy-intensive digital infrastructure. The state-owned utility made the announcement during France’s AI summit, where political and business leaders are discussing developments in artificial intelligence. With its extensive nuclear energy capacity, France is positioning itself as a reliable and clean power source for data centres.
The identified sites have existing grid connections with a combined estimated power capacity of 2 gigawatts. EDF is also searching for two additional locations to expand its infrastructure further. The company plans to offer tailored support to digital firms looking to develop projects, ensuring smoother implementation of new data centres.
EDF has previously been in talks with companies to power large-scale data centres in France. However, concerns remain over potential delays due to grid connection challenges. The initiative reflects France’s broader strategy to attract AI and digital investments while leveraging its nuclear energy resources to meet rising demand.
Saudi Arabia’s NEOM has signed an agreement with DataVolt to develop a 1.5-gigawatt net-zero AI project in its Oxagon industrial zone. The first phase will see an investment of $5 billion, with operations expected to begin in 2028. The initiative aims to position the kingdom as a leading AI hub in the region, competing with the United Arab Emirates and Qatar amid soaring demand for generative AI technology.
The Saudi government has been actively pursuing AI development, with plans for a $40 billion fund in collaboration with foreign partners. The governor of Saudi Arabia’s Public Investment Fund, Yasir Al-Rumayyan, has promoted the country as a potential global AI centre, citing its abundant energy resources and financial capacity. NEOM, a development nearly the size of Belgium, is a key part of the kingdom’s Vision 2030 strategy to diversify its economy beyond oil.
Oxagon is set to become an industrial city powered entirely by renewable energy, aligning with NEOM’s sustainability goals. However, the kingdom has scaled back some of its more ambitious projects to prioritise infrastructure essential for hosting major global events. Rising costs have influenced these adjustments, but AI remains a critical part of Saudi Arabia‘s long-term economic transformation.
Foxconn, the world’s largest contract electronics manufacturer and Apple’s main iPhone maker, is prepared to adjust its production strategies in response to new US tariffs. Chairman Young Liu stated that the company is capable of planning its manufacturing around these changes, particularly with US President Donald Trump’s recently announced 25% tariff on all imports from Mexico and Canada, which has been paused until March 4.
Liu explained that Foxconn operates factories in both the United States and Mexico and will adjust production capacities based on the impact of the tariffs. He emphasised that Foxconn has the flexibility to move its operations between countries, minimising the overall effect of the tariffs on the company. However, Liu also warned that such tariffs are detrimental to the global economy, potentially shrinking markets.
Foxconn remains committed to working with US partners to align its manufacturing strategies with President Trump’s push for more domestic production. Despite the uncertainty around the tariffs, the company is prepared to adapt as necessary.
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At the AI summit in Paris, French President Emmanuel Macron announced that Europe would reduce regulations to foster the growth of AI in the region. He called for more investment, particularly in France, and highlighted the importance of simplifying rules to stay competitive globally. Macron drew comparisons to the rapid reconstruction of the Notre-Dame cathedral, stating that a similar streamlined approach would be adopted for AI and data centre projects across Europe.
European Union digital chief Henna Virkkunen echoed Macron’s comments, promising to cut red tape and implement business-friendly policies. With the US pushing ahead with lighter AI regulations, there is increasing pressure on Europe to follow suit. Sundar Pichai, CEO of Alphabet, emphasised the need for more ecosystems of AI innovation, similar to the one emerging in France. The EU had previously passed the AI Act, which is the world’s first comprehensive set of AI regulations, but many at the summit urged a more flexible approach.
At the summit, France announced a major push for AI investment, including €109 billion from the private sector, and the launch of the Current AI partnership. This initiative, backed by countries like France and Germany, aims to ensure AI remains inclusive and sustainable. However, not all voices at the summit supported reducing regulations. Concerns were raised about the potential risks of weakening safeguards, particularly for workers whose jobs might be affected by AI advancements.
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The United Arab Emirates‘ Energy Minister, Suhail Mohamed Al Mazrouei, stated on Wednesday that he does not believe the Chinese AI app DeepSeek will impact the demand for nuclear energy. DeepSeek, a Chinese startup, has developed AI models that deliver comparable results with much lower computing power, resulting in significant energy savings.
However, Al Mazrouei expressed confidence that this advancement will not reduce the growing need for nuclear energy in the UAE. He highlighted that nuclear power remains a critical component of the country’s strategy for diversifying energy sources and ensuring energy security in the long term.
The UAE has been investing heavily in nuclear energy as part of its efforts to reduce dependence on fossil fuels and to meet its climate goals. The Barakah nuclear power plant, which is set to become one of the largest nuclear power stations in the Middle East, is a key part of this initiative.
Al Mazrouei also noted that nuclear energy offers a reliable and scalable solution that can complement renewable energy sources, especially as the UAE looks to meet rising energy demands. While AI advancements like DeepSeek may contribute to energy efficiency, the UAE remains focused on expanding its nuclear energy infrastructure to support its future growth and sustainability objectives.
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Baidu CEO Robin Li stated on Tuesday that investment in data centres and cloud infrastructure remains crucial despite the challenge posed by Chinese AI startup DeepSeek. Speaking at the World Government Summit in Dubai, Li emphasised that smarter AI models require increased computing power, or “compute,” to function effectively. His comments come as DeepSeek has gained attention for creating language models that perform similarly to OpenAI’s GPT while using much less computing power, prompting debate over the need for large-scale AI infrastructure.
Baidu, a key player in China’s AI development, was quick to launch its own AI products after the release of OpenAI’s ChatGPT in late 2022. However, its own language model, Ernie, has seen limited public adoption, despite claims that it rivals GPT-4 in capability. Li, who previously argued that no OpenAI-like company would emerge from China, admitted at the summit that innovation in AI is unpredictable, as shown by DeepSeek’s rapid rise.
In a shift from his earlier stance on AI development, Li acknowledged that open-source models could play a significant role in accelerating AI adoption. While he had previously advocated for closed-source approaches, he now recognises that allowing greater access could foster wider experimentation and faster technological spread. This marks a notable change in Baidu’s approach to the evolving AI landscape.
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A state-of-the-art space lab on the outskirts of Cairo, touted as Africa’s first satellite production facility, has been built with substantial Chinese involvement. While the lab was designed to assemble homegrown Egyptian satellites, much of the technology, equipment, and expertise comes from China. The first satellite produced at the facility was largely assembled in China and launched from there in December 2023. The plant is part of a broader Chinese effort to strengthen its space presence across Africa, as Beijing seeks to enhance its global surveillance capabilities and assert itself as a dominant space power.
Egypt’s satellite facility is just one element of China’s growing influence in Africa’s space sector. Over the past two years, China has gifted Egypt with various space technologies, including advanced telescopes and Earth observation satellites. However, these technologies come with strings attached, as China maintains a long-term presence in the facilities it builds and gains access to data collected by its satellites. This partnership is a part of China’s broader strategy to establish space alliances in Africa, aiming to secure surveillance data and boost its military capabilities.
China’s efforts to expand its space infrastructure on the continent are drawing attention from global powers. While Egypt and other African nations benefit from Chinese investments, there are concerns about Beijing’s increasing influence and its ability to collect sensitive data through these space projects. The US has voiced concerns over the potential military applications of China’s space technology in Africa, as Beijing builds ground stations and enhances its surveillance capabilities. Despite these concerns, African countries, including Egypt, remain neutral, viewing space collaborations as opportunities for scientific and technological advancement.
The US has struggled to match China’s strategic approach in Africa, with many African nations now seeking technology partnerships that suit their immediate needs. This shift underscores the growing importance of space technology in geopolitics, as countries like Egypt, Ethiopia, and Senegal enter into agreements with China that could shape the future of space exploration and military capabilities. As the global space race intensifies, China’s growing influence in Africa may continue to challenge the US and other Western powers in their efforts to maintain dominance in space exploration.
Lyft is preparing to introduce fully autonomous robotaxis in Dallas by 2026, powered by Mobileye’s technology. The announcement from CEO David Risher on Monday saw Lyft’s shares rise by 4.6%, while Mobileye’s stock jumped 17%.
Companies across the automotive and tech industries continue to invest heavily in self-driving technology, viewing it as a key factor in shaping the future of mobility.
Japanese conglomerate Marubeni will own and finance the Mobileye-equipped vehicles, which will be available through the Lyft app. Mobileye had previously confirmed a partnership with Lyft in November to bring autonomous vehicles to the platform.
Lyft’s move comes as competition in the self-driving space intensifies, with Uber’s partner Waymo set to launch its own autonomous taxi service in Austin next month.
Waymo has already expanded its self-driving ride-hailing services to major US cities, including Miami, Phoenix, Los Angeles, San Francisco, and Austin.
More cities are expected to be added in 2025 as testing expands. Tesla has also announced plans to test driverless car technology in Austin from June but has yet to reveal details about a paid service.
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