As the US prepares for Donald Trump’s second term, China is significantly increasing its semiconductor imports from the US, anticipating potential sanctions. In October, China imported $1.11 billion worth of microchips, a 60% rise from the previous year, and has already imported $9.61 billion in the first ten months of 2024, marking a 42.5% year-on-year increase. This surge reflects China’s growing demand for US semiconductors, particularly CPU-based processors and chips for storage and signal amplification, which align with its AI ambitions.
Despite these imports, China faces hurdles in advancing its chip technology. US sanctions have crippled Huawei’s ability to develop competitive AI chips, with the company’s upcoming processors lagging years behind NVIDIA’s offerings. This setback is largely due to restrictions on access to advanced lithography equipment, such as ASML’s EUV tools, essential for creating cutting-edge chips.
Meanwhile, China has been ramping up its chip manufacturing efforts, investing $25 billion in equipment in the first half of 2024, surpassing spending by Korea, Taiwan, and the US. However, as one-third of global semiconductor demand, China’s position remains critical for the industry. The impact of Trump’s potential tech restrictions, whether broad or selective, will likely influence the global semiconductor market, requiring careful balancing of US production and Chinese demand.
Nvidia reported a staggering $19B in net income last quarter but faced questions about sustaining its rapid growth amid shifts in AI development methods. Analysts questioned CEO Jensen Huang on how Nvidia’s position might evolve with trends like ‘test-time scaling,’ a method that enhances AI responses by increasing computing power during inference, the phase when AI generates answers.
Huang described test-time scaling as a groundbreaking development and emphasised Nvidia’s readiness to support it. He noted that while most of the company’s focus remains on pretraining AI models, the growing emphasis on inference could transform the AI landscape. Nvidia’s dominance in pretraining has propelled its stock up 180% this year, but competition in AI inference is heating up, with startups like Groq and Cerebras offering alternative chip solutions.
Despite concerns about diminishing returns from traditional AI scaling, Huang remains optimistic, asserting that foundational AI development continues to advance. He reiterated Nvidia’s advantage as the largest AI inference platform globally, citing the company’s scale and reliability as critical factors in maintaining its edge.
The Somali government is developing a unified fibre optic deployment policy to streamline the installation and expansion of fibre optic infrastructure across the country. That initiative aims to foster collaboration among national telecommunications companies, reduce deployment costs, and support the growth of the digital economy.
Moreover, the policy seeks to improve national interconnection and enhance the efficiency of infrastructure expansion. However, the fibre optic network in Somalia remains underdeveloped and fragmented, with only isolated segments deployed by sub-regional operators.
Despite being connected to five international submarine cables, weak cross-border connections and the lack of a robust national network backbone limit the distribution of global capacity. As a result, uneven broadband access, poor network quality, and suppressed market competition significantly hinder equitable digital development.
While implementing the policy could improve the quality and coverage of internet services in Somalia, several challenges remain. These include, for example, limited access to affordable broadband-compatible devices, a lack of attractive data-driven services, insufficient local content, and a digital skills gap.
Consequently, these barriers contribute to the country’s low internet penetration rate of only 27.6% in early 2024. Therefore, addressing these challenges is crucial to ensuring more equitable access to digital resources and enabling the growth of Somalia’s digital economy.
Australia has raised concerns about the growing number of cyberattacks on critical infrastructure, with over 11% of reported incidents last year targeting essential services like electricity, water, transport, and education. The Australian Signals Directorate’s latest report highlights state-sponsored actors and cybercriminals as key threats, employing advanced techniques such as phishing, brute-force attacks, and exploiting public-facing systems.
Defence Minister Richard Marles warned of an increasing focus on critical infrastructure by both criminal groups and foreign governments. Australia has attributed cyber incidents to countries including China, Russia, and Iran, with China allegedly shifting from espionage to disruptive cyber operations. Beijing has denied these accusations, dismissing them as baseless.
The report underscores the evolving cyber landscape and the urgent need for bolstered defences to safeguard Australia’s essential systems.
Keppel DC REIT will acquire full ownership of two data centres in Singapore, KDC SGP 7 and KDC SGP 8, as part of a $1.03 billion divestment deal. The acquisition involves Keppel’s Connectivity Division transferring its 51% stake in a joint venture with Cuscaden Peak Investments to Keppel DC REIT. Keppel will retain operational and management roles for the facilities.
The transaction aims to bolster Keppel DC REIT’s income stability while unlocking potential growth opportunities, including rental increases and expanded capacity. CEO Loh Hwee Long highlighted the deal’s immediate benefits, describing it as accretive to distribution per unit and supportive of long-term portfolio strength.
To fund the acquisition, Keppel DC REIT announced plans for an equity fundraising effort targeting approximately S$1 billion. New units will be priced between S$2.074 and S$2.128, providing additional financial stability for the purchase.
Keppel’s share of the divestment price is estimated at S$280 million. The move further strengthens the company’s commitment to the data centre industry while maintaining a key management role within its facilities.
The US Senate Judiciary subcommittee will convene a hearing on Tuesday to investigate recent Chinese cyberattacks targeting American telecommunications companies. The hearing, led by Senator Richard Blumenthal, will delve into the national security threats posed by these breaches and their impact on the US economy.
Authorities allege that China-linked hackers accessed surveillance data from telecom networks, intercepting sensitive communications tied to government and political figures. This breach has heightened concerns over the security of critical infrastructure, especially as bipartisan lawmakers scrutinise the role of major providers like AT&T and Verizon.
The session will also include discussions on Elon Musk’s business ties with China amid his growing involvement in US government affairs. Witnesses, including cybersecurity and industry experts, are expected to shed light on the scale and potential consequences of these incidents. Beijing, however, has denied any involvement in cyber espionage activities.
With AI adoption surging, data centers are bracing for a 160% jump in electricity consumption by 2030, driven by the energy demands of GPUs. Sagence AI, a startup led by Vishal Sarin, is addressing this challenge by developing analog chips that promise greater energy efficiency without sacrificing performance.
Unlike traditional digital chips, Sagence’s analog designs minimise memory bottlenecks and offer higher data density, making them a viable option for specialised AI applications in servers and mobile devices. While analog chips pose challenges in precision and programming, Sagence aims to complement, not replace, digital solutions, delivering cost-effective and eco-friendly alternatives.
Backed by $58M in funding from investors like TDK Ventures and New Science Ventures, Sagence plans to launch its chips in 2025. As it scales operations, the startup faces stiff competition from industry giants and will need to prove its technology can outperform established systems while maintaining lower energy consumption.
Japan, the United States, and South Korea concluded a three-day joint military exercise, Freedom Edge, showcasing their commitment to strengthening multi-domain defence cooperation amidst escalating tensions in East Asia. Select training sessions were open to media in the second iteration of Freedom Edge. The drills spanned maritime, aerial, and cyber domains, and operations were conducted in strategic areas, including the East China Sea near South Korea’s Jeju Island.
Designed to counter various threats — from ballistic missiles and cyberattacks to fighter jets and submarines — the drills emphasised seamless coordination among the three nations’ forces. By refining joint response procedures, the exercise bolstered deterrence and preparedness for complex regional challenges.
Governments across Africa should increase the protection of fibre optic cables from theft and vandalism, while also aligning regulations to boost tech infrastructure development, according to a Google executive. Charles Murito, Google’s head of government relations and public policy in Africa, emphasised the need to classify fibre cables as critical infrastructure, which would ensure severe consequences for those who damage them. Theft and vandalism targeting batteries, generators, and cables have driven up costs for infrastructure providers.
Murito, speaking at the Africa Tech conference, highlighted Google’s investments in subsea cables, including Equiano, connecting Africa with Europe, and the upcoming Umoja cable linking Africa and Australia. He stressed that better protections and regulatory harmonisation could make the continent more appealing to tech investors. Industry leaders agree that such measures are essential to encouraging business expansion in Africa.
Additionally, Murito has called for more infrastructure sharing among internet service providers to reduce data costs. The diverse regulations across African nations concerning permissions for cable installations hinder the expansion of fibre networks. Although South Africa‘s authorities have acknowledged the issue, urging law enforcement to act and proposing legal updates, fibre optic cables have yet to receive a new critical classification.
Guillaume Faury, CEO of Airbus, raised concerns about how antitrust regulations hinder the European aerospace sector’s ability to compete with US-based SpaceX. Speaking at an aviation industry event in Frankfurt, Faury acknowledged SpaceX’s success, particularly its reusable Falcon 9 rocket, but highlighted how Europe’s regulatory framework restricts similar consolidation. Unlike SpaceX, which manufactures 80% of its components in-house, European companies like Airbus face complex supply chains and fragmented production models due to antitrust rules that require manufacturing distribution across multiple countries.
Faury pointed out that this fragmented system, while pleasing many stakeholders, limits efficiency and competitive flexibility. This is evident when comparing SpaceX’s cost-cutting ability with the struggles of Europe’s Ariane 6, which has yet to launch commercially despite plans for multiple flights per year. Meanwhile, SpaceX’s low-cost launches have revolutionised satellite deployment, launching nearly 7,000 satellites and creating fierce competition in the space industry.
Faury warned that unless European regulations adapt, the region risks falling behind in satellite and launch sectors, with Airbus already feeling the pressure, including a planned reduction of 2,500 jobs in its satellite division. SpaceX’s influence extends beyond commercial aerospace, as the company is also a major player in military and defence with initiatives like Starlink and lunar landing technology, supported by NASA and the US government.
However, concerns about SpaceX’s dominance in the US have also emerged, with NASA and the Pentagon seeking to reduce dependence on the company by promoting more competition in the aerospace sector, although antitrust complaints have not yet significantly affected SpaceX’s position.
