Critical infrastructure

Nokia and Swisscom collaborate on Swiss drone network

The Finnish tech magnate has teamed up with Swisscom to deploy a drones network across Switzerland aimed at enhancing emergency response and infrastructure inspections. The partnership will see the Finnish telecom company providing 300 unmanned aerial vehicles, operated by Swisscom through a drones-as-a-service (DaaS) network, allowing public safety agencies and other clients to use drones on demand without the need to purchase or operate them.

Swiss public safety organisations, including police and fire services, will be able to request drone flights from Swisscom Broadcast, using the technology to gather crucial data during emergencies. The network will also facilitate the remote inspection of infrastructure such as power lines, solar panels, and oil and gas facilities, reducing the need to send personnel into potentially hazardous situations, according to Thomas Eder, Nokia’s head of embedded wireless.

As drones increasingly find applications beyond military use, including in delivery services and agriculture, there remain concerns about privacy, noise, and safety. Nokia and Swisscom have pledged to work closely with aviation and spectrum regulators to ensure compliance with data protection laws, including the establishment of no-fly zones over sensitive areas like beaches and swimming pools.

Nokia’s venture into drone technology comes as the company continues to innovate, recently introducing immersive technology for phone calls and agreeing to sell its submarine networks to the French state for $374 million. The global industrial drone market is currently valued at between $32 billion and $35 billion, reflecting the growing importance of such technologies in various sectors.

SEMI Europe urges EU to limit investment restrictions

SEMI Europe, a leading semiconductor industry group, urged the EU to minimise restrictions on outbound investments in foreign chip technology. The EU is considering proposals to screen such investments, which could impact European funding in the global semiconductor, AI, and biotechnology sectors. However, no decisions are expected until 2025.

The US has already proposed rules to limit investments in China to protect national security and prevent the transfer of advanced technology. SEMI Europe argues that excessive restrictions could hinder European companies’ ability to invest and innovate, potentially compromising their competitive edge.

The organisation criticised the EU’s potential policies as too broad, suggesting they could force companies to reveal sensitive information and disrupt international research collaborations. SEMI Europe represents over 300 European semiconductor firms and institutions, including major players like ASML, Infineon, and STMicroelectronics.

In addition to outbound investment screening, the EU is advancing legislation to monitor foreign investments in critical European infrastructure and technology to address potential security risks.

Chinese firms stockpile HBM chips amid US export restrictions

Chinese tech giants, including Huawei and Baidu, and startups are stockpiling high bandwidth memory (HBM) semiconductors from Samsung Electronics in anticipation of potential US export restrictions. The ramped-up purchasing began earlier this year, with China accounting for about 30% of Samsung’s HBM chip revenue in the first half of 2024. This strategic plan reflects China’s efforts to maintain its technological ambitions amid increasing trade tensions with the US and other Western nations, impacting the global semiconductor supply chain.

US authorities will soon announce an export control package, including new shipment restrictions to China’s semiconductor industry. The new package of measures will likely detail limits on access to HBM chips, although specific details and potential impacts remain unclear.

HBM chips are essential for developing advanced processors, such as Nvidia’s graphics processing units, used for generative AI since only three bigger chipmakers, SK Hynix, Samsung, and US-based Micron Technology, produce these kinds of chips.

Chinese demand has focused on the HBM2E model, two generations behind the latest HBM3E. Due to the global AI boom, the advanced model is in short supply. Chinese companies, from satellite manufacturers to tech firms like Tencent, have purchased these chips. Huawei has used Samsung’s HBM2E semiconductors for its advanced Ascend AI chip, and other firms like Hawking have also placed orders.

While Chinese firms like Huawei and CXMT are making progress in developing HBM2 chips, their efforts could be hindered by the new US restrictions. Samsung may face a major impact from these restrictions compared to its rivals, as it relies more on the Chinese market. SK Hynix, focusing on advanced HBM chip production, has nearly sold out its HBM chips for the next two years, while Micron has already stopped selling its HBM products to China since last year.

CrowdStrike restores almost all Windows sensors after major outage

The US cybersecurity company has successfully restored 97% of its Windows sensors following a global outage caused by a faulty software update. The issue, which began nearly a week ago, affected 8.5 million devices running Microsoft’s Windows operating system, leading to significant disruptions in services, including flights, healthcare, and banking.

The outage was triggered by a fault in CrowdStrike’s Falcon platform sensor, a security agent designed to protect devices from threats. The fault caused computers to crash and display the notorious blue screen of death. In response, CrowdStrike deployed a fix and mobilized all resources to support customers, enhancing recovery efforts with automatic recovery techniques.

The recovery comes amidst scrutiny over the cybersecurity firm’s quality control measures. Despite the challenges, CrowdStrike’s swift response has helped mitigate further impact and restore critical services globally.

Sustainable Metal Cloud plans global expansion amid rising demand

Singapore-headquartered AI cloud provider Sustainable Metal Cloud (SMC) is set to expand globally, driven by fast-growing demand for its energy-saving technology. CEO and co-founder Tim Rosenfield announced plans to extend operations to EMEA (Europe, Middle East, and Africa) and North America in response to client demand. Currently, SMC operates “sustainable AI factories” in Australia and Singapore, with new launches planned in India and Thailand.

Partnering with AI chip giant Nvidia, SMC uses over 1,200 of Nvidia’s high-end H100 AI chips in Singapore to run open-source models like Meta’s Llama 2. Unlike most data centres that rely on air cooling technology, SMC employs immersion cooling, submerging Dell servers fitted with Nvidia GPUs in a synthetic oil called polyalphaolefin. The following method reduces energy consumption by up to 50% compared to traditional air cooling.

The International Energy Agency (IEA) anticipates a tenfold increase in AI demand compared to 2023, with global data centre electricity consumption expected to exceed 1,000 terawatt-hours by 2026. Sustainable Metal Cloud is currently raising $400 million in equity and $550 million in debt to support its expansion, according to sources. That move aligns with the increasing environmental concerns impacting Singapore’s data centre growth and highlights the importance of sustainable technology in meeting future energy demands.

Government entities in Australia to assess foreign control risks in tech

Australia has instructed all government entities to review their technology assets for risks of foreign control or influence. The directive aims to address increasing cyber threats from hostile states and financially motivated attacks. The Australian Signals Directorate (ASD) recently warned of state-sponsored Chinese hacking targeting Australian networks.

The Department of Home Affairs has issued three legally-binding instructions requiring over 1,300 government entities to identify Foreign Ownership, Control or Influence (FOCI) risks in their technology, including hardware, software, and information systems. The organisations in question must report their findings by June 2025.

Additionally, government entities are mandated to audit all internet-facing systems and services, developing specific security risk management plans. They must also engage with the ASD for threat intelligence sharing by the end of the month, ensuring better visibility and enhanced cybersecurity.

The new cybersecurity measures are part of the Protective Security Policy Framework, following Australia’s ban on TikTok from government devices in April 2023 due to security risks. The head of the Australian Security Intelligence Organisation (ASIO) has highlighted the growing espionage and cyber sabotage threats, emphasising the interconnected vulnerabilities in critical infrastructure.

AI cybersecurity in devices deemed high-risk by European Commission

AI-based cybersecurity and emergency services components in internet-connected devices are expected to be classified as high-risk under the AI Act, according to a European Commission document seen by Euractiv. The document, which interprets the relationship between the 2014 Radio Equipment Directive (RED) and the AI Act, marks the first known instance of how AI-based safety components will be treated under the new regulations. The RED pertains to wireless devices, including those using Wi-Fi and Bluetooth, beyond traditional radios.

Under the AI Act, high-risk AI systems will be subject to extensive testing, risk management, security measures, and documentation. The Act includes a list of use cases where AI deployment is automatically considered high-risk, such as in critical infrastructure and law enforcement. It also sets criteria for categorising other high-risk products, requiring third-party conformity assessments in line with sector-specific regulations. AI cybersecurity and emergency services components meet these criteria under the RED, thus being classified as high-risk.

Even in cases where the RED allows for self-assessment compliance with harmonised standards, these AI-based components are still deemed high-risk. The AI Act references numerous sectoral regulations that could classify AI products as high-risk, extending beyond electronics to medical devices, aviation, heavy machinery, and personal watercraft. The preliminary interpretation suggests that self-assessment standards are insufficient to remove the high-risk classification from AI products in these industries.

The AI Act imposes significant requirements on high-risk AI systems, while those not in this category face only minor transparency obligations. The Commission’s document is a preliminary interpretation, and the full application of the AI Act, which spans over 500 pages, remains to be seen. Despite initial estimates that 5-15% of AI systems would be classified as high-risk, a 2022 survey of EU-based startups indicated that 33-50% of these startups consider their products high-risk. Further interpretive work is needed to understand how the AI Act will impact various sectors.

Why does it matter?

The abovementioned proceedings highlight the European Commission’s stringent approach to regulating AI-based cybersecurity and emergency services in internet-connected devices. By classifying these components as high-risk, the AI Act mandates rigorous testing, security measures, and documentation, ensuring robust safety standards. This move underscores the EU’s commitment to protecting critical infrastructure and sensitive data and signals significant regulatory implications for various industries, potentially influencing global standards and practices in AI technology.

Indonesia IT Ministry official resigns amid cyberattack fallout

After recent Indonesia’s most severe cyberattack, Samuel Abrijani Pangerapan, the director-general for applications and information at the Ministry of Communications and Information Technology, resigned, citing moral responsibility. The attack, which struck more than 280 government agencies, resulted in significant data loss and disrupted essential services ranging from airport operations to scholarship management. The hacker group responsible initially demanded a ransom of $8 million, which the government refused to pay. The hackers later apologised and provided a decryption key to unlock the stolen data.

Despite the decryption key’s release, the recovery process has been challenging. The Ministry of Communications and Information Technology reported that only 2% of the data had been saved by early efforts, with the rest presumed lost. President Joko Widodo responded by ordering an immediate cybersecurity audit and the implementation of robust backup strategies across all national data centres. The goal is to prevent similar incidents in the future, emphasising the need for comprehensive security measures.

Public dissatisfaction has grown in response to the government’s handling of the cyberattack. The attack impacted administrative services and caused significant disruptions at airports in Indonesia, where immigration systems were forced to operate manually due to the cyberattack’s effects on automated processes. The scale of the breach underscored existing vulnerabilities across government data management systems managed by PT Telkom Indonesia, whose subsidiary operated the compromised data centre.

Ransomware actors encrypted Indonesia’s national data centre

Hackers have encrypted systems at Indonesia’s national data centre with ransomware, causing disruptions in immigration checks at airports and various public services, according to the country’s communications ministry. The ministry reported that the Temporary National Data Centre (PDNS) systems were infected with Brain Cipher, a new variant of the LockBit 3.0 ransomware.

Communications Minister Budi Arie Setiadi informed that the hackers demanded $8 million for decryption but emphasised that the government would not comply. The attack targeted the Surabaya branch of the national data centre, not the Jakarta location.

The breach risks exposing data from state institutions and local governments. The cyberattack, which began last Thursday, disrupted services such as visa and residence permit processing, passport services, and immigration document management, according to Hinsa Siburian, head of the national cyber agency. The ransomware also impacted online enrollment for schools and universities, prompting an extension of the registration period, as local media reported. Overall, at least 210 local services were disrupted.

Although LockBit ransomware was used, it may have been deployed by a different group, as many use the leaked LockBit 3.0 builder, noted SANS Institute instructor Will Thomas. LockBit was a prolific ransomware operation until its extortion site was shut down in February, but it resurfaced three months later. Cybersecurity analyst Dominic Alvieri also pointed out that the Indonesian government hasn’t been listed on LockBit’s leak site, likely due to typical delays during negotiations. Previously, Indonesia’s data centre has been targeted by hackers, and in 2023, ThreatSec claimed to have breached its systems, stealing sensitive data, including criminal records.

USA scrutinise China Mobile, China Telecom, and China Unicom

The Biden administration is scrutinising China Mobile, China Telecom, and China Unicom over concerns that these firms could misuse their access to American data through their US cloud and internet businesses. The Commerce Department is leading the investigation, subpoenaing the state-backed companies and conducting risk analyses on China Mobile and China Telecom. These companies maintain a small US presence, providing services like cloud computing and routing internet traffic, giving them potential access to sensitive data.

The investigation aims to prevent these Chinese firms from exploiting their US presence to aid Beijing, aligning with Washington’s broader strategy to counteract potential threats to national security from Chinese technology companies. The US has previously barred these companies from providing telephone and broadband services. Authorities could block transactions that allow these firms to operate in data centres and manage internet traffic, potentially crippling their remaining US operations.

China’s embassy in Washington has criticised these actions, urging the US to cease suppressing Chinese companies. No evidence has been found that these firms intentionally provided US data to the Chinese government. However, concerns persist about their capabilities to access and potentially misuse data, primarily through Points of Presence (PoPs) and data centres in the US, which could pose significant security risks.