Critical infrastructure

South Korea launches $34 billion fund for strategic industries

South Korea has announced the creation of a $34 billion policy fund to support companies in key industries such as semiconductors, automotive, and advanced technologies, in response to growing global competition and protectionist policies.

The state-run Korea Development Bank will manage the fund by providing low-interest loans and other financial support over the next five years to businesses involved in national strategic industries.

The government stressed that maintaining competitiveness in these strategic sectors has become crucial to the country’s economic security, particularly amid the uncertainties caused by the new US administration.

South Korea has identified 12 industries, including semiconductors, AI, and biopharmaceuticals, as critical for its future economic stability and will offer targeted financial support to strengthen these sectors.

In addition to the fund, South Korea also unveiled new policies to attract skilled global talent in cutting-edge fields. These measures include offering top-tier visas and permanent residency to professionals with experience at major international firms, aiming to enhance the country’s workforce in strategic industries.

For more information on these topics, visit diplomacy.edu.

Trump pushes for end to $52 billion semiconductor subsidy

Donald Trump has called for the repeal of the CHIPS and Science Act, a key piece of legislation passed in 2022 to support semiconductor manufacturing in the US.

Trump criticised the law during a speech to Congress, describing it as a waste of hundreds of billions of dollars and suggesting the funds should instead be used to reduce national debt. His remarks mark his most forceful criticism of the act to date.

The CHIPS Act, signed by President Joe Biden, allocated $39 billion in subsidies for US semiconductor production and related industries, along with $75 billion in government-backed loans.

The initiative was part of a broader strategy to reduce reliance on foreign-made chips and address national security concerns.

Trump argued that rather than offering financial incentives, the government could avoid imposing tariffs to encourage semiconductor companies to build factories in the US.

However, the program has garnered support from officials, including Commerce Secretary Gina Raimondo, who played a key role in securing investments from leading global semiconductor firms like Samsung, Intel, and TSMC.

New York Governor Kathy Hochul defended the CHIPS Act, emphasising its role in bringing significant investment and job creation to the state, including Micron’s $100 billion investment in Central New York.

Trump’s comments have raised concerns about the future of these grants and the potential impact on such developments.

For more information on these topics, visit diplomacy.edu.

China moves to promote RISC-V chip use nationwide

China is set to release new guidance aimed at promoting the use of open-source RISC-V chips nationwide, a move that signals the country’s growing efforts to reduce its reliance on Western technology. The policy, which could be unveiled as early as this month, is being developed by several government bodies, including the Cyberspace Administration of China and the Ministry of Industry and Information Technology. The final release date remains uncertain as discussions continue.

RISC-V, an open-source chip design technology, has gained popularity in China, particularly among state entities and research institutes, due to its lower cost and geopolitical neutrality. It is seen as a viable alternative to more established, proprietary chip architectures, such as those from Intel and AMD, and is gaining traction in various industries, including AI and mobile technology. This shift has raised concerns in the United States, where lawmakers are wary that China may be leveraging RISC-V’s open-source nature to boost its semiconductor sector.

The growing adoption of RISC-V has sparked a positive movement in the Chinese stock market, with shares of local chip design firms such as VeriSilicon and ASR Microelectronics experiencing significant gains. Industry leaders point out that RISC-V’s potential to reduce costs for smaller companies looking to implement AI, particularly with the rise of technologies like DeepSeek, could further drive its adoption.

As tensions between the US and China over technology intensify, the development of China’s semiconductor industry using RISC-V may become a critical aspect of its strategy to become less dependent on foreign chipmakers, while also advancing its own technological ambitions.

For more information on these topics, visit diplomacy.edu.

Eutelsat shares surge on prospects of replacing Starlink

Eutelsat shares surged by over 60% on Tuesday, continuing a remarkable rise that saw them increase by 68% the day before. This spike came after geopolitical tensions raised the possibility of OneWeb satellites, owned by the French satellite operator, replacing Elon Musk’s Starlink service in Ukraine. Since Friday, Eutelsat’s stock has nearly tripled in value following a public dispute between Ukrainian President Volodymyr Zelensky and former US President Donald Trump, which has cast doubt on the future of Starlink in the country.

Analysts suggest that the surge in Eutelsat’s stock is driven by the potential for OneWeb to secure the Ukrainian military’s satellite contract, with OneWeb being seen as a viable alternative to Starlink. The situation gained further momentum after a White House official revealed that Trump would pause military aid to Ukraine, potentially allowing Europe to increase its support. On Tuesday, the European Commission unveiled an ambitious 800 billion euro defense plan, further strengthening Europe’s role in the region.

Eutelsat has recently committed to increasing its satellite capacity for Ukraine, highlighting its growing importance for European defence. The French satellite operator has faced challenges, including concerns over rising debt and strong competition from US companies like SpaceX’s Starlink. Despite these hurdles, recent developments have rekindled investor confidence, with shares rising sharply after hitting all-time lows in February due to ongoing financial difficulties.

For more information on these topics, visit diplomacy.edu.

DeepSeek highlights China’s rise in AI, Lou Qinjian says

DeepSeek’s progress is a clear sign of the growing influence of Chinese companies in the AI sector, according to a spokesperson for China’s parliament. Lou Qinjian, speaking to reporters on Tuesday, praised the achievements of DeepSeek’s young team, describing their work as ‘commendable’.

He highlighted the company’s open-source approach and its efforts to spread AI technology globally, contributing ‘Chinese wisdom’ to the world.

The AI startup has been widely celebrated in China, particularly for rolling out AI models that offer a significantly lower cost than those developed by US rivals like OpenAI.

While some countries, including South Korea and Italy, have removed DeepSeek’s chatbot from their app stores over privacy concerns, it has been embraced within China, where local governments and tech firms are integrating it into their systems.

Based in Hangzhou, DeepSeek is rapidly advancing its next-generation model, set to succeed its R1 release from January, as it continues to make waves in the global tech sector.

For more information on these topics, visit diplomacy.edu.

Taiwan to support TSMC’s US expansion

Taiwan has announced its support for TSMC’s plans to invest in the US, while also ensuring that the most advanced semiconductor technology remains within the country.

The statement, made by the presidential office on Tuesday, reassured that Taiwan would assist the semiconductor giant in its future US investments.

However, the government emphasised that Taiwan would retain its cutting-edge chip technologies to secure its position as a leader in the global semiconductor industry.

TSMC, Taiwan’s largest chipmaker, revealed plans for a significant $100 billion investment in the US to expand its presence and build five new chip manufacturing facilities over the coming years.

The announcement was made during a meeting between TSMC’s CEO and US President Donald Trump on Monday.

Move like this one is part of a broader push to bolster semiconductor production in the US, particularly in response to global supply chain issues and national security concerns surrounding chip dependence on foreign markets.

For more information on these topics, visit diplomacy.edu.

Amazon invests in AI to combat flooding in Aragon

Amazon has announced plans to use AI to help reduce flood risks in Spain’s northeastern region of Aragon, where it is building new data centres.

As part of its $17.9 million investment, Amazon’s cloud computing unit AWS will modernise infrastructure and optimise agricultural water use to tackle flood concerns.

The move follows catastrophic floods that impacted large areas around Valencia and comes as AWS continues its €15.7 billion expansion in the region’s cloud infrastructure.

The region is prone to flooding, especially along the Ebro River, highest-flow river in Spain, which crosses through Aragon on its way to the Mediterranean.

Amazon will deploy advanced cloud computing technologies to create an early warning system combining real-time data collection, sensor networks, and AI-powered analysis.

However, this system will help Zaragoza, the capital of Aragon, monitor flood risks more effectively and provide timely warnings to emergency services.

In addition to its technological investment, local authorities in Zaragoza are building flood defences at the Barranco de la Muerte, or Death Ravine, to mitigate future flood damage.

With these combined efforts, Amazon aims to contribute to reducing the region’s vulnerability to floods while supporting its own expanding data infrastructure.

For more information on these topics, visit diplomacy.edu.

European groups back new cybersecurity label for cloud services

Twenty-three industry groups across Europe have urged EU officials to approve a draft cybersecurity certification for cloud services.

The certification scheme, which was introduced in 2020 by the European Union Agency for Cybersecurity (ENISA), aims to provide governments and businesses with reliable, secure cloud service providers.

It has been under revision since last year, with changes that favour major tech firms such as Microsoft, Google, and Amazon.

The groups, including the American Chamber of Commerce and various EU trade associations, argue that the updated draft, which will be finalised in March 2024, strikes a balance between robust security standards and an open market.

These revisions removed political provisions, such as requirements for US tech companies to partner with EU firms for data storage, focusing instead on technical security criteria.

Despite this, concerns linger about the European Commission potentially delaying or even scrapping the certification scheme altogether. The groups have strongly urged the EU to push forward with its adoption, believing it will support Europe’s digital economy while promoting secure cloud computing solutions.

For more information on these topics, visit diplomacy.edu.

Musk under scrutiny over $2.4 billion FAA telecom contract

A group of US lawmakers is raising concerns over the potential involvement of SpaceX CEO Elon Musk in a $2.4 billion Federal Aviation Administration (FAA) telecommunications contract originally awarded to Verizon.

Musk, who owns satellite company Starlink, has been critical of the FAA’s existing telecom system and has reportedly sought to replace Verizon’s contract with his own company’s services.

Senator Maria Cantwell and other lawmakers have expressed alarm over what they see as potential interference in a competitive bidding process. The FAA, which awarded the 15-year contract to Verizon in 2023, is now reportedly reviewing the agreement.

Musk recently admitted to making false claims about Verizon’s role in aviation safety, further fuelling concerns about his influence.

The controversy has led to bipartisan scrutiny, with senators and representatives questioning whether the government is prioritising private interests over public safety. The FAA, meanwhile, has stated it has not yet made any decision regarding the contract.

Reports indicate that Starlink terminals are being tested in Alaska, raising further speculation about Musk’s involvement in the project.

For more information on these topics, visit diplomacy.edu.

A significant boost in Windows performance could come with Qualcomm’s latest chip

Qualcomm is reportedly developing the Snapdragon X2, a next-generation high-end processor for Windows PCs. Leaks suggest the new chip could feature up to 18 Oryon V3 cores, potentially boosting performance significantly.

The Snapdragon X2 is expected to adopt a system-in-package (SiP) design, integrating RAM and flash storage within the processor to enhance efficiency and data transfer speeds.

The processor is said to support configurations of up to 48GB of RAM and a 1TB SSD, according to leaked documents. While specific clock speeds remain unknown, it is described as a high-TDP variant, indicating a focus on raw power.

Qualcomm is also reportedly testing the chip with a liquid cooling system, suggesting efforts to manage heat output in high-performance environments.

Branding for the processor is expected under the ‘Snapdragon X2 Ultra Premium’ label, with a focus on competing against Intel, AMD, and Apple’s M-series chips.

Qualcomm previously confirmed its next PC processor, the Snapdragon X Elite Gen 2, would include the Oryon V3 CPU, following the success of its predecessor, the Oryon V2.

The Snapdragon X2 could improve the Windows on ARM ecosystem, offering better efficiency and performance. However, software compatibility challenges remain a key concern, as ARM-based Windows devices have previously struggled with certain applications.

Official details from Qualcomm are still pending, with more information possibly emerging at industry events such as Mobile World Congress.

For more information on these topics, visit diplomacy.edu.