Digital cooperation

Malaysia sets sights on advanced chip production with $250 million deal

Malaysia has secured a landmark deal worth $250 million with Arm Holdings to acquire the company’s advanced chip design blueprints.

The agreement, which spans a decade, will enable Malaysia to produce its own AI chips, including graphics processing units, as demand for AI and data centres continues to surge globally.

The deal is part of Malaysia’s broader goal to become a major player in semiconductor manufacturing over the next ten years.

Prime Minister Anwar Ibrahim confirmed that the deal will also see Arm establish its first Southeast Asian office in Kuala Lumpur. The move is aimed at strengthening the company’s presence in the region, including expanding its reach to Australia and New Zealand.

Alongside this, Malaysia will invest in training 10,000 engineers to support the local manufacturing ecosystem.

The initiative is expected to drive significant economic growth, with Malaysia aiming to create 10 local chip companies, each generating annual revenues between $1.5 to $2 billion.

Malaysia aims to build a complete supply chain for advanced industries, covering everything from AI data servers to autonomous vehicles and robotics.

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

EU plans legislation for car data access

The European Commission is preparing to introduce legislation that would allow insurers, leasing firms, and repair shops greater access to vehicle data.

The proposed law is expected to be published later this year, and it is a response to growing tensions between car service providers, automakers, and tech companies over the control and monetisation of valuable in-vehicle data.

Currently, vehicle data, ranging from driving habits to fuel efficiency, is not clearly defined in European law, leading to disputes over who owns it.

With the connected car market projected to be worth billions in the coming years, the Commission is stepping in to ensure that all sectors of the automotive industry can benefit from this data.

However, carmakers have expressed concerns, warning that the new law could compromise trade secrets and lead to misuse of sensitive information.

The debate has also highlighted fears about the dominance of Big Tech, with companies like Google and Apple already making inroads into car infotainment systems.

The Commission’s proposal could reshape the landscape by offering more equitable access to the data that is crucial for developing new products and services.

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

Malaysia works with US and Singapore on Nvidia chip probe

Malaysian authorities are investigating whether local laws were breached in the shipment of servers that may have contained advanced AI chips subject to U export controls.

The case is linked to a fraud investigation in Singapore, where three men were recently charged over transactions involving servers supplied by US firms. The equipment was allegedly transferred to Malaysia and may have included Nvidia’s artificial intelligence chips.

The Malaysian government confirmed it is working closely with the United States and Singapore to determine whether US-sanctioned chips were involved. Authorities aim to find effective measures to prevent such transactions from violating trade regulations.

Singapore has not specified whether the chips in question fall under US export restrictions but acknowledged they were used in servers that passed through Malaysia.

US officials are also examining whether DeepSeek, a Chinese AI firm whose technology gained attention in January, has been using restricted US chips.

Washington has tightened controls on AI chip exports to China, and any unauthorised shipments could lead to further scrutiny of supply chains in the region.

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

EU set to implement Entry/Exit System for border control

The European Union has reached an agreement to finally implement the long-awaited Entry/Exit System (EES), which will modernise border checks for short-stay travellers.

After several delays due to technical issues and a lack of readiness, the system is now set to begin operations in autumn, though a specific launch date has yet to be determined.

Member states will have the option to introduce the system all at once or in phases over a six-month transition period, with the full implementation to be completed by the end of the transition.

The EES, which was first proposed in 2016, aims to replace traditional passport stamping by collecting biometric data from non-EU visitors, including photos and fingerprints.

This data will be recorded each time visitors enter or exit the Schengen Area. The system is designed to improve border control, help authorities identify overstayers, and prevent identity fraud.

While Cyprus and Ireland will not participate in the new system, all other EU member states and four Schengen-associated countries will be involved.

Poland, which currently holds the EU Council’s rotating presidency, will lead negotiations with the European Parliament to finalise the law.

Tomasz Siemoniak, Poland’s Minister for Internal Affairs, indicated that a final agreement should be reached smoothly, with October set as the target for full implementation.

The EES is expected to provide authorities with new tools to enhance security and better manage borders within the Schengen Area.

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

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.

CoreWeave to buy Weights & Biases as it prepares for IPO

CoreWeave, backed by Nvidia, announced on Tuesday that it is acquiring AI developer platform Weights & Biases as part of its efforts to expand its cloud platform ahead of its upcoming IPO. The deal will merge CoreWeave’s infrastructure and managed cloud services with Weights & Biases’ AI model training and monitoring tools, which are used by major tech companies such as OpenAI and Meta.

While the financial terms of the deal were not disclosed, technology news site The Information reported that it could be valued at approximately $1.7 billion. CoreWeave, based in Roseland, New Jersey, has seen significant growth, with an eight-fold increase in revenue forecast for 2024.

CoreWeave, whose customers include companies like Meta, Microsoft, and hedge fund Jane Street, is aiming for a valuation exceeding $35 billion in its IPO later this year. The acquisition is seen as a move to strengthen CoreWeave’s position in the competitive AI market ahead of its New York listing.

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

UK regulator approves Synopsys’ $35 billion Ansys deal

Britain’s competition regulator has approved Synopsys’ $35 billion acquisition of Ansys after the companies addressed concerns about the potential negative impact on innovation and pricing.

In December, the regulator raised alarms that the deal could reduce competition in the chip design software market, possibly leading to higher prices and less innovation.

However, following negotiations and the companies’ offer of remedies to mitigate these concerns, the regulator decided not to refer the deal for an in-depth phase-2 investigation.

Synopsys, a major player in the chip design software industry, announced the acquisition in January. The deal, which will be a mix of cash and stock, aims to strengthen Synopsys’ portfolio and expand its offerings in the design and development of complex products.

Ansys, a well-established provider of simulation software, is used by a range of industries, from aerospace to sports equipment, to design and optimise products like aeroplanes and tennis rackets.

The acquisition marks a significant move for Synopsys, enhancing its capabilities in the design and development of advanced technology.

The deal is expected to bring together the strengths of both companies, allowing them to offer a broader set of solutions to customers in various sectors, from semiconductor manufacturing to engineering and consumer goods.

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.

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.