Capacity development

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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Modi and Musk discuss technology, space, and Starlink’s India plans

Indian Prime Minister Narendra Modi met with Tesla and SpaceX CEO Elon Musk in Washington to discuss space, mobility, technology, and innovation.

The meeting also explored ways to strengthen cooperation in emerging technologies, entrepreneurship, and governance, according to India‘s foreign ministry. Modi’s visit to the United States has brought key discussions on commercial space activities and technological collaboration between the two countries.

Starlink’s potential entry into the Indian market was reportedly a key topic of discussion. The satellite internet provider has long sought to operate in India but has faced regulatory challenges and opposition from local competitors, including billionaire Mukesh Ambani’s company.

The Indian government has supported Musk’s stance that satellite spectrum should be assigned rather than auctioned, but Starlink’s licence application remains under review.

India’s decision on Starlink could reshape the country’s satellite internet sector and influence its position in the global space race.

SpaceX‘s dominance in satellite launches and internet services has already impacted global markets, and its expansion into India would be a significant step in its international growth. Musk continues to act as a crucial link between world leaders and SpaceX, which plays a key role in the Western space industry.

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Taiwan President vows to address US semiconductor concerns

Taiwan‘s President Lai Ching-te has pledged to address concerns raised by former US President Donald Trump regarding Taiwan’s semiconductor industry. Speaking after a National Security Council meeting, Lai acknowledged the importance of global semiconductor supply chains and vowed to work with Taiwan’s semiconductor sector to develop strategies to address US concerns. He emphasised the need for democratic nations, including the US, to collaborate on creating a “democratic supply chain” for advanced chips, particularly in the growing AI sector.

Lai also reassured the US of Taiwan’s commitment to contributing to the international economy, noting that Taiwan, home to the world’s largest contract chipmaker, TSMC, plays a vital role in the semiconductor market. TSMC is heavily invested in the US, including a $65 billion investment in new factories in Arizona. Despite these efforts, Taiwan’s defence spending remains a topic of criticism, particularly from Trump, who has repeatedly highlighted Taiwan’s insufficient military expenditure amid increasing threats from China.

In response to US concerns, Lai revealed plans to propose a special budget to raise Taiwan’s defence spending from 2.5% of GDP to 3%. This proposal is currently being debated in parliament, where opposition parties hold a majority. Lai stressed that Taiwan’s determination to defend itself must be clear, as international allies continue to voice concerns over its defence readiness.

Finally, Lai reiterated Taiwan’s key role as a reliable trading partner to the US, especially in high-tech exports such as semiconductors. Taiwan’s trade surplus with the US surged by 83% last year, with exports reaching a record $111.4 billion.

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Alibaba secures major AI deal with Apple

Alibaba has announced a new partnership with Apple to support the development of AI services for iPhones in China, a move that aims to help Apple counter declining smartphone sales in its crucial market. The collaboration is seen as a significant win for Alibaba, which is gaining ground in China’s competitive AI industry, dominated by local players like DeepSeek. This deal comes after months of speculation regarding Apple’s AI strategy in the region, as the tech giant held discussions with other Chinese companies such as Baidu, ByteDance, and Tencent.

While the specifics of the partnership are still unclear, Alibaba’s chairman Tsai noted that Apple chose their AI technology to power its phones in China. The two companies have already submitted necessary regulatory materials to Chinese authorities, as consumer-facing AI products in the country require approval. Alibaba’s stock saw a notable rise following the announcement, reflecting investor optimism about the deal.

The timing of this collaboration is crucial for Apple, which has faced challenges in China, including falling iPhone sales and increased competition from domestic rivals like Huawei. Analysts suggest that Apple’s struggles in the region are partly due to the lack of advanced AI features in its phones, a growing demand in the Chinese market. Apple’s sales in Greater China dropped significantly in late 2024, and the company lost its top position in the market to local players like Vivo and Huawei.

For Alibaba, the partnership underscores its growing strength in AI, with its stock price surging in 2025. The company’s Qwen 2.5 AI model, which surpassed the capabilities of competitors, has become a focal point of its recent success. As Apple seeks to re-establish its presence in China, the effectiveness of this AI collaboration will likely play a critical role in its future in the market.

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DeepSeek models boost competition for Chinese AI chipmakers

The rise of DeepSeek’s AI models is offering Chinese chipmakers like Huawei a better chance to compete in the domestic market against the powerful processors from US companies like Nvidia. For years, Huawei and other Chinese manufacturers have struggled to match Nvidia’s high-end chips, which are essential for training AI models. However, DeepSeek’s focus on ‘inference’ rather than raw processing power has led analysts to believe that it could help close the gap between Chinese-made processors and their US counterparts. Inference refers to the phase where AI models use trained data to make predictions, a process less reliant on heavy computational resources.

Several Chinese AI chipmakers, including Huawei, EnFlame, and Moore Threads, have recently stated that their products will support DeepSeek models, although few details have been disclosed. Industry executives predict that DeepSeek’s open-source nature and its low fees will drive the adoption of AI, helping Chinese companies bypass US export restrictions on advanced chips. In fact, Chinese chips like Huawei’s Ascend 910B have already been recognised as better suited for inference tasks, which require less computational power than training.

Despite these developments, Nvidia still dominates the global AI chip market. Analysts point out that while Chinese chips are cost-effective for inference tasks, Nvidia’s superior chips remain the preferred choice even for inference. Nvidia’s CUDA platform, which provides developers with a robust software environment, remains a key advantage, and Chinese companies like Huawei have struggled to convince developers to abandon CUDA in favour of their platforms, such as Huawei’s Compute Architecture for Neural Networks (CANN). The software performance of Chinese AI chips continues to lag behind, making it challenging for them to directly challenge Nvidia’s dominance.

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Musk will withdraw $97.4 billion bid for OpenAI non-profit

Elon Musk has stated he will withdraw his $97.4 billion bid for OpenAI’s non-profit arm if the company halts plans to become a for-profit entity. Musk’s lawyers clarified in a court filing that if OpenAI’s board agrees to maintain the charity’s mission and remove the ‘for sale’ sign from its assets, he will retract his offer. However, if the conversion to a for-profit model continues, Musk’s consortium insists the charity must be compensated by what an independent buyer would pay for its assets.

OpenAI, originally founded by Musk and Sam Altman in 2015 as a non-profit, is in the midst of restructuring. Altman, now CEO, has moved to create a for-profit unit within the organisation to attract investors like Microsoft.

Musk, who left the company over disagreements with Altman, is suing to block this transition. This legal battle intensified this week when Musk’s group made a bid to purchase the non-profit’s assets, which Altman has rejected, stating that the organisation is not for sale.

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European startups make progress in EV battery recycling

Two European startups have reached key milestones in electric vehicle (EV) battery recycling as they prepare to meet upcoming EU regulations and reduce reliance on China‘s battery supply chain. From August 2030, European automakers must ensure a minimum percentage of recycled materials in their EV batteries, spurring companies to develop advanced recycling technologies.

British startup Altilium has demonstrated that small batteries made with its recycled cathode active materials perform as well as or better than those using virgin materials from China. Research from Imperial College London showed that its process cuts CO2 emissions by 70% and reduces costs by 20%. The company, backed by investors including Sociedad Quimica y Minera de Chile and Marubeni, is currently working with Tata Motors’ JLR to recycle materials from old Jaguar i-Pace EVs.

Germany‘s tozero is developing a net-zero emissions process for recycling graphite, a key battery material that accounts for 40% of a lithium-ion battery’s carbon footprint. With €17 million in investment from backers including Honda, tozero plans to build a pilot plant within two years and produce around 2,000 tonnes of recycled graphite annually by 2027. The company is in talks with global automakers to supply them with its recycled materials, supporting the industry’s shift towards more sustainable EV production.

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Alphabet CEO acknowledges China’s role in global AI race

Alphabet CEO Sundar Pichai has praised the work of Chinese startup DeepSeek, calling it an example of how AI is a truly global field. Speaking at the World Governments Summit in Dubai, he noted that innovation in AI is happening across multiple regions and that competition will continue to grow.

Pichai reaffirmed Alphabet’s ambition to remain a leading force in AI but acknowledged that other players would also shape the industry. The rapid development of AI technology has led to increased competition between major tech companies and emerging startups worldwide.

The remarks highlight the expanding global landscape of AI, with companies from China, the United States, and other regions pushing forward advancements in the field. Pichai’s comments suggest that AI leadership will be defined by a diverse range of contributors rather than a single dominant player.

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