China’s Commerce Ministry announced plans to investigate US government subsidies to its semiconductor sector following requests from China’s mature node chip industry. The ministry stated on Thursday that these subsidies, introduced under the Biden administration, allegedly provide American companies with an unfair competitive advantage in the global market.
According to the Chinese government, US firms have exported mature node chip products to China at reduced prices, causing harm to the interests of China’s domestic semiconductor industry. Beijing views these practices as a threat to its industry’s rights and competitive balance.
The investigation reflects rising tensions between the two nations over technology and trade, particularly as both seek to bolster their semiconductor sectors amid growing geopolitical competition.
Indian space startup Pixxel has successfully launched three of its six hyperspectral imaging satellites aboard a SpaceX rocket from California. The satellites lifted off from Vandenberg Space Force Base at 1915 GMT, marking a significant step forward for India‘s growing private space sector. The remaining three satellites are set for deployment later this year, with Pixxel aiming to expand its constellation to 24 satellites in the coming years.
Hyperspectral imaging captures highly detailed data across hundreds of light bands, offering valuable insights for industries such as agriculture, mining, environmental monitoring, and defence. The technology is expected to help improve crop yields, track natural resources, and enhance monitoring of oil spills and geographic boundaries with greater precision than existing methods. Pixxel has already secured contracts with major clients, including Rio Tinto, British Petroleum, and India’s Ministry of Agriculture, with some already paying for data from its demonstration satellites.
India currently holds just a 2% share of the global commercial space market, far behind the United States, which dominates satellite launches through private companies like SpaceX. The global satellite imagery market is projected to grow to $19 billion by 2029, with hyperspectral imaging potentially capturing up to $1 billion of that. Pixxel is aiming to capitalise on this growth by rapidly expanding its satellite network and enhancing data capabilities for industries worldwide.
Meta may be forced to halt or modify features in India after an antitrust ruling banned its WhatsApp messaging service from sharing user data with Meta for advertising purposes. The Competition Commission of India (CCI) imposed a $24.5 million fine and a five-year ban on the practice, accusing the company of abusing its dominance and coercing WhatsApp users into accepting a 2021 privacy policy that allegedly expanded data sharing unfairly.
India, Meta’s largest market with over 500 million WhatsApp users and 350 million Facebook users, is crucial for the company’s operations. The data-sharing ban could impact Meta’s ability to offer personalised ads on Facebook and Instagram, the company said in its court filing. Meta argued that this restriction could harm businesses, such as fashion brands, that rely on personalised ads to connect with customers. The US firm also warned the ruling could threaten its commercial viability in the region.
Meta has publicly defended its 2021 policy changes but criticised the CCI’s decision in a 2,000-page tribunal appeal, claiming the watchdog lacks the technical expertise to assess the implications of its ruling. The Indian appeals tribunal is set to hear Meta’s case, with the possibility of pausing the CCI directive while the legal process unfolds.
This challenge in India adds to Meta’s global struggles, including prior accusations in the EU over unclear privacy policy changes. The CCI’s ruling now requires WhatsApp to give users the choice to opt out of data sharing with Meta, signaling a broader push for greater transparency and user control in data practices worldwide.
The European Commission is reassessing its investigations into major tech companies, including Apple, Meta, and Google, under its landmark Digital Markets Act (DMA), according to the Financial Times. The review, which covers cases initiated since March 2024, comes as tech giants urge President-elect Donald Trump to push back against EU regulatory scrutiny. Sources suggest Trump’s presidency has influenced the review, though it was not the direct trigger.
The DMA, implemented in 2022, seeks to curb the dominance of Big Tech by imposing strict rules on their practices and fines of up to 10% of annual revenue for violations. The review may lead to narrowing or altering the scope of current probes, with all decisions and potential fines paused during this process. Technical work on the cases, however, will continue.
This development coincides with Meta’s recent overhaul of its US fact-checking program and CEO Mark Zuckerberg’s signals of a more conciliatory stance toward the Trump administration. Meanwhile, EU regulators are also examining whether Elon Musk’s social media platform X has violated content moderation rules, further highlighting the tech industry’s complex regulatory challenges.
Synopsys has secured conditional approval from the European Commission for its $35 billion acquisition of simulation software company Ansys. The deal, aimed at merging Synopsys’ semiconductor design expertise with Ansys’ simulation capabilities, promises to enhance solutions for complex chip and system creation. However, the acquisition is still awaiting regulatory approval in the UK and the US.
To address competition concerns, both companies have agreed to divest key business units. Synopsys will sell its Optical Solutions Group to Keysight Technologies, while Ansys will part with its PowerArtist tool, both of which are critical for tech industries like augmented reality and autonomous vehicles. These divestitures are intended to preserve healthy competition in crucial technology markets.
The deal is expected to close by mid-2025, pending final approvals and the completion of the divestments.
The US government has announced new restrictions on exporting AI chips and technology, seeking to safeguard its dominance in AI development while limiting China’s access to advanced computing capabilities. The regulations, unveiled during the final days of President Biden’s administration, impose strict caps on AI chip exports to most countries, with exemptions for close allies such as Japan, the UK, and South Korea. Countries like China, Russia, Iran, and North Korea remain barred from accessing this critical technology.
Commerce Secretary Gina Raimondo emphasised the importance of maintaining US leadership in AI to support national security and economic interests. The regulations, which build on a four-year effort to block China’s acquisition of advanced chips, also close existing loopholes and enforce tighter controls. New limits target advanced graphics processing units (GPUs), essential for training AI models, and introduce worldwide licensing requirements for cutting-edge AI technologies. Major cloud providers like Microsoft and Amazon will face new authorisation processes to establish data centres globally under stringent conditions.
Industry leaders, including Nvidia, have expressed concerns over the broad scope of the rules, warning of potential harm to innovation and market dynamics. Nvidia called the restrictions an “overreach,” while Oracle cautioned that the measures could inadvertently benefit Chinese competitors. Despite this criticism, US officials argue the rules are vital for maintaining a competitive edge, given AI’s transformative potential in sectors like healthcare, cybersecurity, and defence. China’s Commerce Ministry condemned the move, vowing to protect its interests in response to the escalating technology standoff.
British Prime Minister Keir Starmer has announced an ambitious plan to position the UK as a global leader in AI. In a speech on Monday, Starmer outlined proposals to establish specialised zones for data centres and incentivise technology-focused education, aiming to boost economic growth and innovation. According to the government, fully adopting AI could increase productivity by 1.5% annually, adding £47 billion ($57 billion) to the economy each year over the next decade.
Central to the plan is the adoption of recommendations from the “AI Opportunities Action Plan,” authored by venture capitalist Matt Clifford. Measures include fast-tracking planning permissions for data centres and ensuring energy connections, with the first such centre to be built in Culham, Oxfordshire. Starmer emphasised the potential for AI to create jobs, attract investment, and improve lives by streamlining processes like planning consultations and reducing administrative burdens for teachers.
The UK, currently the third-largest AI market behind the US and China, faces stiff global competition in establishing itself as an AI hub. While Starmer pledged swift action to maintain competitiveness, challenges persist. The Labour government’s recent high-tax budget has dampened some business confidence, and the Bank of England reported stagnation in economic growth last quarter. However, Starmer remains optimistic, declaring, “We must move fast and take action.”
By integrating AI into its economic strategy, the UK hopes to capitalise on technological advancements, balancing innovation with regulatory oversight in an increasingly competitive global landscape.
Taiwan is optimistic about the limited impact of US President-elect Donald Trump’s proposed tariffs on semiconductor exports, citing the nation’s technological edge in the global chip industry. On Friday, economy Minister Kuo Jyh-huei emphasised that Taiwan’s advanced semiconductor processes, led by industry giant TSMC, maintain an irreplaceable position in the supply chain for major companies like Apple and Nvidia.
Despite Trump’s pledges for sweeping tariffs—10% on global imports and up to 60% on Chinese goods—Taiwanese policymakers acknowledged potential challenges for the island’s export-driven economy. However, Kuo reassured that the chip sector’s resilience lies in its technological leadership, which mitigates the risk of significant disruption.
To adapt to the shifting trade landscape, Taiwan plans to help companies relocate parts of their supply chains to the United States if necessary. The island also aims to deepen cooperation in industries like aerospace and advanced technology by fostering ties with US and Japanese firms. This includes establishing a dedicated office in Japan to bolster collaboration on AI and drone development, Kuo said.
Taiwan’s proactive approach reflects its strategic positioning in global trade and its commitment to maintaining robust economic ties amid evolving US policies.
Google is merging additional AI teams into its DeepMind division to speed up innovation in AI technologies. Logan Kilpatrick, head of product for Google’s AI Studio, confirmed that both the AI Studio team and the Gemini API developers would now operate under DeepMind.
DeepMind, created in 2023 from the merger of Google Brain and DeepMind, has played a central role in Google’s AI advancements, including the Gemini model series. Kilpatrick stated the restructuring would strengthen collaboration and accelerate progress in making research tools available to developers.
Engineer Jaana Dogan highlighted that the move would make DeepMind’s tools more publicly accessible, with better APIs, open-source contributions, and enhanced developer resources planned. This shift follows earlier integrations of the Gemini chatbot and responsible AI teams into DeepMind as part of Google’s ongoing strategy.
CEO Sundar Pichai previously described Gemini as gaining strong momentum while stressing the need to move faster in 2025 to close competitive gaps. Scaling Gemini for consumers will be a primary focus next year.
Nvidia has voiced strong opposition to a reported plan by the Biden administration to impose new restrictions on the export of AI chips, urging the outgoing president to avoid making a decision that could impact the incoming Trump administration. The company warned that such measures would harm the US economy, hinder innovation, and benefit adversaries like China. Nvidia’s Vice President, Ned Finkle, called the policy a “last-minute” move that would leave a legacy of criticism from both US industry and the global community.
The proposed restrictions, as reported by Bloomberg, aim to limit AI chip exports to certain countries, particularly targeting China to prevent the enhancement of its military capabilities. While some nations would face outright bans, the rules would also cap the computing power that can be exported to others. The Biden administration has yet to confirm the details, and requests for comment from the White House and the Commerce Department went unanswered.
Industry groups, including the Information Technology Industry Council, which represents major tech firms like Amazon, Microsoft, and Meta, have expressed concern about the policy. They argue that it would impose arbitrary limitations on US companies’ global competitiveness and risk ceding market leadership to foreign rivals. Nvidia warned that these restrictions could push international markets toward alternative technologies, undermining the US technology sector.
President-elect Donald Trump, who begins his second term on January 20, previously enacted technology export restrictions to China during his first term, citing national security concerns. Nvidia’s statement reflects apprehension about the continuity of US policy on AI chip exports under the new administration.
