Digital business models

China says US curbs will harm global semiconductor industry

China has warned that the United States‘ efforts to pressure other nations into targeting its semiconductor industry will ultimately backfire.

During a regular press briefing, Chinese foreign ministry spokesperson Lin Jian criticised Washington’s approach, arguing that it would disrupt the global semiconductor supply chain and hinder industry development worldwide.

The comments came in response to reports that the White House plans to tighten restrictions on China’s access to advanced chip technologies.

Lin Jian emphasised that such actions not only undermine fair competition but also threaten the stability of the global technology market.

Tensions between the US and China over semiconductor access have escalated in recent years, with Washington implementing export controls and encouraging its allies to adopt similar measures.

Beijing has consistently opposed these restrictions, calling them politically motivated attempts to curb China’s technological progress.

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Apple expands US investment with new Texas facility

Apple has unveiled plans to invest $500 billion in the United States over the next four years. The investment will include the construction of a large facility in Texas for the production of AI servers, as well as the creation of 20,000 research and development jobs nationwide. This pledge highlights Apple’s continued commitment to strengthening its presence in the US, despite many of its products being assembled overseas.

Part of the investment will also go towards enhancing Apple’s Advanced Manufacturing Fund, which will grow from $5 billion to $10 billion. This fund will support the production of advanced silicon chips at a facility in Arizona, alongside a collaboration with Foxconn to build a 250,000-square-foot server assembly plant in Houston.

Additionally, Apple will open a new manufacturing academy in Michigan to help local businesses improve their processes and skills. These initiatives follow a similar commitment made in 2018, further cementing Apple’s role in the US economy and its ongoing expansion in research and manufacturing.

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Google faces lawsuit over AI search impact on publishers

An online education company has filed a lawsuit against Google, claiming its AI-generated search overviews are damaging digital publishing.

Chegg alleges the technology reduces demand for original content by keeping users on Google’s platform, ultimately eroding financial incentives for publishers. The company warns this could lead to a weaker online information ecosystem.

Chegg, which provides textbook rentals and homework help, says Google’s AI features have contributed to a drop in traffic and subscribers.

As a result, the company is considering a sale or a move to go private. Chegg’s CEO Nathan Schultz argues Google is profiting from the company’s content without proper compensation, threatening the future of quality educational resources.

A Google spokesperson rejected the claims, insisting AI overviews enhance search and create more opportunities for content discovery. The company maintains that search traffic remains strong, with billions of clicks sent to websites daily.

However, Chegg argues that Google’s dominance in online search allows it to pressure publishers into providing data for AI summaries, leading to fewer visitors to original sites.

The lawsuit marks the first time an individual company has accused Google of antitrust violations over AI-generated search features. A similar case was previously filed on behalf of the news industry. A US judge overseeing another case involving Google’s search monopoly is handling this lawsuit as well.

Google intends to challenge the claims and is appealing a previous ruling that found it held an illegal monopoly in online search.

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Claude chatbot maker Anthropic plans major funding round

AI startup Anthropic is aiming to raise $3.5 billion in its latest funding round, potentially boosting its valuation to $61.5 billion, according to sources familiar with the talks.

The creator of the Claude chatbot could attract backing from major venture capital firms, including Lightspeed Venture Partners, General Catalyst, and Bessemer Venture Partners. This round would exceed the $2 billion previously reported, highlighting growing investor interest in the booming AI sector.

Anthropic’s fundraising effort comes amid a surge in investment in AI-focused startups, with nearly half of United States venture capital funding last year directed towards AI companies.

The appeal of US AI startups remains strong, even as China‘s more cost-effective alternatives, like DeepSeek, enter the market. OpenAI, Anthropic’s primary competitor and the creator of ChatGPT, is also reportedly in talks for a funding round that could value it at up to $300 billion.

Founded by former OpenAI executives Dario and Daniela Amodei, Anthropic has quickly emerged as a major player in the AI space. The company was last valued at $18 billion following a 2023 funding round led by Menlo Ventures.

In a bid to strengthen its market position, Anthropic has launched Claude 3.7 Sonnet, a new AI model designed to deliver faster responses and enhanced reasoning capabilities, giving it a competitive edge in the fast-evolving generative AI landscape.

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Intel’s high NA lithography technology shows early success

Intel has announced that the first two of ASML’s cutting-edge high NA lithography machines are now in operation at its factories. Early data shows these machines are producing more consistent results than previous models, with a reported reliability double that of earlier systems. This marks a turning point for Intel, which had struggled with the earlier generation of extreme ultraviolet (EUV) machines.

Intel’s production of 30,000 wafers in a single quarter using these new machines signifies a substantial step forward in chip manufacturing. These high NA machines can print features onto chips with fewer exposures and less processing time, streamlining the production process and reducing costs. This development is set to contribute to Intel’s upcoming 18A manufacturing technology, expected to power a new generation of PC chips later this year.

The company is also preparing to implement the high NA machines for the next generation of 14A technology, though no mass production date has yet been confirmed. This breakthrough is seen as a pivotal moment for Intel, positioning it to reclaim ground lost to rivals in recent years.

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Competition heats up for Musk’s Starlink in satellite internet

Elon Musk’s Starlink is facing mounting competition from several ambitious satellite internet projects, including China’s SpaceSail and Jeff Bezos’s Project Kuiper. SpaceSail, backed by the Chinese government, recently expanded its reach to Brazil and Kazakhstan, with plans for a 15,000-satellite constellation by 2030. Meanwhile, Bezos’s Project Kuiper is in talks with Brazilian officials to establish its own LEO satellite network.

These developments come as Beijing accelerates its investment in satellite technology, having launched a record 263 satellites last year. With SpaceSail aiming to deploy 648 satellites in 2025 alone, it is positioning itself as a serious challenger to Starlink’s current fleet of around 7,000 satellites. SpaceSail’s plans are seen as part of China’s broader push to expand its digital influence, sparking concerns about potential censorship capabilities.

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TSMC-Intel investment rumours unconfirmed by Taiwan’s economy ministry

Taiwan‘s economy minister stated that the government has not received any official information regarding a potential overseas investment by chip giant TSMC in Intel or the United States.

Media reports have suggested that TSMC, the world’s largest contract chipmaker, has been in talks to take a stake in Intel, but neither company has confirmed the speculation. Any significant foreign investment by a Taiwanese company requires government approval through the economy ministry’s investment review commission.

Speaking to reporters in Taipei, Economy Minister Kuo Jyh-huei clarified that the ministry cannot comment on market rumours without receiving an official report from TSMC. He confirmed that no application or formal communication has been submitted so far.

Kuo also highlighted that, given the foreign investment nature of such a deal, a formal review process would be necessary before any discussions could take place.

The potential deal has gained attention amid heightened US-Taiwan trade tensions. Former US President Donald Trump previously criticised Taiwan for its dominance in the semiconductor market and expressed a desire to bring more manufacturing back to the United States.

Meanwhile, Taiwan continues to run a significant trade surplus with the US, adding further complexity to any potential cross-border investment.

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AI demand surge drives increased Nvidia H20 chip orders from Chinese firms

Chinese companies are significantly increasing orders for Nvidia’s H20 artificial intelligence chip due to soaring demand for DeepSeek’s low-cost AI models.

The surge, reported for the first time, highlights Nvidia’s dominance in the market and alleviates concerns that DeepSeek’s emergence might weaken AI chip demand.

Major technology firms Tencent, Alibaba, and ByteDance have substantially raised their purchases of the H20 chip, which was specifically developed for China following US export restrictions.

These companies not only use advanced AI chips internally but also offer cloud services that enable other businesses to access AI tools. Smaller firms in sectors like healthcare and education are also adopting AI servers equipped with DeepSeek models and Nvidia H20 chips.

DeepSeek’s AI models rival Western alternatives while offering significantly lower costs by focusing on inference rather than raw processing power.

While potential US restrictions on H20 chip exports could be a factor in increased orders, sources attribute the demand spike primarily to DeepSeek’s expanding role in the AI market. Nvidia has not disclosed order volumes but stated its products succeed on merit in a competitive field.

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Italy and UAE to strengthen ties with $40 billion deal

The United Arab Emirates (UAE) is set to make a significant $40 billion investment in Italy, covering sectors such as energy, technology, and defence. This follows the first-ever state visit by UAE President Sheikh Mohamed bin Zayed Al Nahyan to Italy. The investment will span various projects, including data centres, AI, renewable energy, and subsea activities.

Italian Prime Minister Giorgia Meloni emphasised that this partnership will strengthen bilateral relations, with a focus on mutual economic growth and collaboration. The investment aligns with the Mattei plan, aimed at boosting African development and reducing migrant arrivals to Italy. One notable project involves transporting electricity through an undersea cable between Italy, Albania, and the UAE, further enhancing regional cooperation.

In addition to economic and energy initiatives, both nations agreed to ramp up defence and security collaborations, including joint military production, cybersecurity, counter-terrorism, and disaster response efforts. The partnership will also support advanced research and development, contributing to sustainable development and digital growth.

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Google unveils Gemini Code Assist for Individual developers

Google has launched a new free AI tool aimed at helping developers with code completion and assistance. Gemini Code Assist for Individuals allows users to interact with a Google AI model through a chat window, helping to fix bugs, complete code, or explain parts of a codebase. The tool can be integrated into popular coding environments like VS Code and JetBrains, and supports a range of programming languages. It offers impressive capabilities, with 180,000 code completions per month—90 times more than GitHub’s free Copilot plan—and 240 daily chat requests, well beyond the limits of competing tools.

In addition, Google unveiled Gemini Code Assist for GitHub, a tool that automatically scans code in pull requests to identify bugs and provide helpful suggestions. These tools highlight Google’s increasing efforts to compete with Microsoft and GitHub in the developer space. Both tools leverage Google’s Gemini 2.0 AI model, fine-tuned for coding tasks, and offer a context window four times larger than similar models, enabling the AI to process more complex code.

The launch marks a strategic move by Google to attract developers, especially those early in their careers, with the hope that some will eventually transition to premium plans. Gemini Code Assist for Individuals is available through a free public preview, with Google planning to roll out additional enterprise features soon, including integration with third-party tools and more advanced customisation options for businesses.

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