Powerchip Technology, a Taiwanese IT company, is facing intense competition from Chinese foundries like Nexchip, which has rapidly gained market share in the legacy chip sector. This shift, driven by steep discounts and aggressive capacity expansion, has been accelerated by China’s localisation efforts, forcing Powerchip to retreat from the once-profitable business of making integrated circuits for Chinese flat panels. The increasing dominance of Chinese companies in the $56.3 billion legacy chip market is causing concern in Taiwan, with companies like Powerchip and UMC now focusing on more advanced technologies to stay competitive.
Chinese foundries, supported by strong government funding and low margins, have significantly increased their production capacity, undercutting Taiwanese rivals on price. By 2027, China is projected to surpass Taiwan’s global mature node manufacturing capacity. Taiwanese executives are exploring specialisation and diversification, shifting focus from legacy chips to more advanced processes like 3D stacking, which integrates logic and DRAM memory to improve performance.
The rising competition from China is compounded by geopolitical tensions, as some customers are now requesting chips made outside China. This shift is partly due to the US’s trade policies and worsening relations between Beijing and other nations. Taiwanese companies are seeing more orders directed to their local fabs, with some customers explicitly avoiding ‘Made in China’ products.
While Taiwanese companies still have an edge in terms of process stability and production yields, the pressure from Chinese competitors is forcing them to rethink their strategies and adapt to the changing landscape. The future of the industry may depend on how Taiwan navigates both the rising Chinese competition and the geopolitical challenges shaping global supply chains.
France is set to announce private sector investments totalling around 109 billion euros ($112.5 billion) in its AI sector at the Paris AI summit, according to President Emmanuel Macron. The investment package includes 20 billion euros from Canadian investment firm Brookfield and up to 50 billion euros from the United Arab Emirates, which will also fund a 1-gigawatt data centre.
Brookfield’s investment is expected to focus on developing data centre infrastructure, crucial for AI technology that requires massive amounts of energy to operate.With the demand for AI technology rising, Europe is aiming to secure necessary investments to meet the growing need for energy and infrastructure.
This comes amid global competition, as US President Donald Trump recently announced that companies like OpenAI, SoftBank, and Oracle would invest $500 billion in AI infrastructure over the next four years to ensure the US stays ahead in the global AI race.
India‘s central bank has raised concerns over the increasing fraud in digital payments and announced new measures to improve security. Reserve Bank of India (RBI) Governor Sanjay Malhotra warned that cyber fraud and data breaches are becoming more frequent as banks and consumers adopt new technology. To counter this, the RBI will introduce exclusive website domain names to reduce the risk of deceptive online practices.
Fraudsters often use misleading domain names to trick users into revealing sensitive information or making fraudulent transactions. To enhance online security and credibility, the RBI will launch dedicated domains for financial institutions. Banks will use ‘bank.in’ while non-bank financial entities will operate under ‘fin.in’. These exclusive domains will provide a unique digital identity, making it easier for users to recognise legitimate platforms.
The Institute for Development and Research in Banking Technology (IDRBT) will oversee the registration process for these domains, with actual registrations set to begin in April 2025. The initiative is part of the RBI’s broader effort to strengthen cybersecurity and protect consumers in the rapidly growing digital payments sector.
Oracle has introduced new AI features to its NetSuite corporate finance software, aiming to streamline common business tasks. Unlike competitors focused on developing general-purpose AI assistants, Oracle is integrating targeted tools to automate tedious processes. One of the latest additions helps generate price quotes for complex purchases through chatbot-driven interactions, making it easier for businesses and consumers to configure products like customised bicycles.
The AI-powered quoting tool allows sales professionals to quickly compile prices based on customer requirements, reducing time spent on manual calculations. Oracle‘s approach focuses on enhancing efficiency rather than competing in the race to build massive AI models. Instead, the company partners with firms like Canadian startup Cohere to power its AI tools.
Oracle’s recent collaboration with OpenAI to build large data centres has raised speculation about further AI partnerships. While no formal announcements have been made, Oracle executives have indicated a willingness to work with OpenAI in the future. The company’s AI strategy prioritises practical applications that help businesses close deals faster and lower operational costs.
French startup Mistral AI has launched a new app for its generative AI assistant, Le Chat, as it seeks to compete with American and Chinese tech giants. The Paris-based company, backed by Nvidia, claims its AI model responds at speeds of up to 1,000 words per second. The release comes just before an AI summit in Paris, highlighting growing European interest in homegrown alternatives to dominant players like OpenAI’s ChatGPT.
CEO Arthur Mensch emphasised the importance of European AI development, stating that Mistral aims to make AI more open and widely accessible. The company has secured major partnerships with firms such as Veolia and European government agencies, though it remains smaller than its US competitors. Mensch also acknowledged that DeepSeek, a rising Chinese AI firm, had benefited from Mistral’s open-source technology.
Despite its rapid growth and a valuation of €5.8 billion, Mistral AI is not planning an initial public offering in the near future. The company has raised over €1 billion and remains financially strong. Mensch believes European AI firms have a cultural role to play in shaping the industry and positioning themselves as credible alternatives to US and Chinese models.
More than 100 organisations, including Amnesty International and the AI Now Institute, have called on the AI industry and regulators to address the technology’s growing environmental impact. In an open letter published ahead of a major AI conference in Paris, the signatories highlight concerns over emissions, reliance on fossil fuels, and resource depletion caused by AI infrastructure.
The letter urges tech companies and governments to ensure that data centres operate without fossil fuels, warning that electricity demand from AI could double by 2026, reaching levels equivalent to Japan‘s annual consumption. The expansion of AI infrastructure is also straining water and land resources, with data centres requiring vast amounts of water for cooling and humidity control. Transparency on AI’s full environmental impact is another key demand.
Despite these warnings, the US government appears committed to AI expansion, with President Donald Trump pushing for faster approvals of new power stations, including those reliant on coal. The letter’s signatories stress that unchecked AI growth disproportionately affects communities most vulnerable to climate change and call for a shift towards responsible and sustainable AI development.
Stellantis, the world’s fourth-largest carmaker, has announced an expanded partnership with French AI firm Mistral. The move aims to accelerate the company’s ability to analyse industry data, improving decision-making speed. The integration of AI is becoming more common in the automotive sector, with many manufacturers using the technology to assess customer feedback and monitor manufacturing quality.
Ned Curic, Stellantis’ Chief Engineering and Technology Officer, highlighted the significance of this collaboration, noting that it enables the company to perform data analysis in minutes rather than weeks. This rapid processing allows for quicker decision-making, improving operational efficiency.
This strategic shift comes shortly after Stellantis underwent management changes following the unexpected departure of CEO Carlos Tavares in December. The restructuring appears to be part of a broader effort to streamline operations and better position the company for the future.
Britain’s security officials have reportedly ordered Apple to create a so-called ‘back door’ to access all content uploaded to the cloud by its users worldwide. The demand, revealed by The Washington Post, could force Apple to compromise its security promises to customers. Sources suggest the company may opt to stop offering encrypted storage in the UK rather than comply with the order.
Apple has not yet responded to requests for comment outside of regular business hours. The Home Office has served Apple with a technical capability notice, which would require the company to grant access to the requested data. However, a spokesperson from the Home Office declined to confirm or deny the existence of such a notice.
In January, Britain initiated an investigation into the operating systems of Apple and Google, as well as their app stores and browsers. The ongoing regulatory scrutiny highlights growing tensions between tech giants and governments over privacy and security concerns.
Japanese startup ArkEdge Space revealed on Friday that it helped build an observation satellite for Taiwan’s space agency that has captured what may be the highest-quality Earth imagery from a spacecraft smaller than a suitcase. The optical satellite, ONGLAISAT, took 2.5-metre resolution images after being launched into orbit around 400 km above Earth in December.
Takayoshi Fukuyo, ArkEdge’s CEO, described the clarity of the images as comparable to aerial photography, despite the satellite’s small size. Black-and-white photos, including those of Seattle suburbs and Argentina’s Patagonia, were released showing impressive detail. The satellite, co-developed with the University of Tokyo, mounts Taiwan’s space agency’s optical equipment onto a compact cubesat.
ONGLAISAT’s mission will conclude in early March, but the optical technology demonstrated during the mission will contribute to future satellite projects. Taiwan, keen to strengthen its space infrastructure amid rising tensions with China, is also progressing with other space ventures, including weather satellites and satellite internet collaborations with Amazon’s Kuiper. Additionally, Taiwan’s space agency has deepened partnerships with Japanese space companies like Space One and ispace.
OpenAI announced on Thursday that it is evaluating US states as potential locations for data centres supporting its ambitious Stargate project, which aims to secure the US’s lead in the global AI race. The project is seen as crucial for ensuring that AI development remains democratic and open, rather than falling under authoritarian control, according to Chris Lehane, OpenAI’s chief global affairs officer.
Stargate, a venture backed by SoftBank, OpenAI, Oracle, and other investors, is set to receive up to $500 billion for AI infrastructure. A significant portion of this investment, $100 billion, will be deployed immediately, with the rest scheduled over the next few years. Texas has been designated as the flagship location for Stargate’s data centres. An initial site under construction in Abilene is expected to begin operations later this year.
The announcement follows the rise of DeepSeek, a Chinese AI model that challenges the traditional view that AI development requires large, specialised data centres. DeepSeek’s use of cheaper chips has raised concerns among investors, leading to a significant drop in tech stock values, including a record $593 billion loss for Nvidia, the leading AI chipmaker.
OpenAI is considering data centre locations in approximately 16 states, with plans to expand the Stargate network to five to ten campuses in the coming months.
