Digital cooperation

EU faces pressure to boost semiconductor supply chain

Leading semiconductor firms are calling on the European Commission to introduce a follow-up to the 2023 EU Chips Act, arguing that a new policy must extend beyond manufacturing to include chip design, materials, and equipment.

Industry groups say the original programme, while encouraging investment, has failed to attract advanced chipmakers or build a competitive supply chain. Approval processes have also been criticised for being too slow, delaying key projects.

Following discussions in Brussels with European lawmakers, representatives from industry groups ESIA and SEMI Europe announced plans to formally request a ‘Chips Act 2.0’ from the Commission.

They argue that the EU must take decisive action to strengthen the entire semiconductor industry, including research and development as well as supplier subsidies.

European Parliament Member Oliver Schenk highlighted how other regions, such as Taiwan, have successfully integrated suppliers into their chip manufacturing ecosystem, whereas Europe still lacks such cohesion.

The meeting included major semiconductor companies such as NXP, Infineon, Bosch, and STMicroelectronics, alongside equipment makers ASML, ASM, and Zeiss.

Meanwhile, a coalition of nine EU countries has pledged to work with the Commission to strengthen Europe’s semiconductor capabilities.

The Commission has yet to outline specific plans, but it has previously stated its intention to launch investment initiatives this year, particularly in artificial intelligence and technology.

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AI Infrastructure Partnership expands with new key players

Nvidia and Elon Musk’s xAI have joined the AI Infrastructure Partnership, a consortium backed by Microsoft, MGX, and BlackRock, to expand AI infrastructure in the United States.

Originally formed last year with a commitment to invest over $30 billion, the group aims to fund data centres and energy projects essential for AI applications. Investors have already pledged $100 billion for immediate deployment, with further capital expected over the next four years.

The partnership, formerly known as the AI consortium, is focused on raising funds from investors, corporations, and asset owners to support AI’s growing energy and computing demands.

Nvidia will continue in its role as a technical advisor, while GE Vernova and NextEra Energy will contribute expertise in supply-chain planning and high-efficiency energy solutions.

The initiative aligns with a global push to secure AI dominance and meet the increasing demand for computational power.

AI training and large-scale data processing require vast amounts of energy, driving demand for specialised infrastructure. The consortium’s investments will prioritise projects within the United States and the Organisation for Economic Co-operation and Development (OECD) countries.

The announcement follows the launch of Stargate, a separate AI infrastructure initiative backed by SoftBank, OpenAI, and Oracle, with plans to mobilise up to $500 billion.

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SpaceX strengthens ties with Filtronic through expanded agreement

Filtronic has expanded its partnership with SpaceX, securing a larger contract to supply advanced E-band SSPA modules for the Starlink satellite network.

The agreement builds on their initial collaboration signed in April last year, reinforcing Filtronic’s role in supporting one of the world’s leading space technology firms.

As part of the deal, Filtronic has issued 10.95 million warrants to SpaceX at an exercise price of 92.8p. These warrants give SpaceX the option to subscribe for up to 5% of Filtronic’s existing share capital, with vesting linked to confirmed purchase orders.

The issuance of warrants was approved under existing shareholder authorities granted at Filtronic’s annual general meeting in October.

Chief executive Nat Edington described the agreement as a validation of Filtronic’s technology and a step towards securing further supply commitments for the Starlink constellation. The company expects to trade slightly ahead of market expectations for the financial year ending May 2026.

Following the announcement, Filtronic’s shares rose by 3.17% to 107.3p at 10:55 GMT.

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Disney’s next-gen robots powered by Nvidia’s Newton

Disney’s dream of bringing lifelike robotic characters to its theme parks is closer to reality, thanks to a new collaboration with Nvidia and Google DeepMind. At GTC 2025, Nvidia CEO Jensen Huang introduced Newton, an advanced physics engine designed to enhance how robots interact with their surroundings. The first to benefit from this technology will be Disney’s next-generation entertainment robots, including the Star Wars-inspired BDX droids, one of which made a surprise appearance on stage during Huang’s keynote.

Newton is engineered to improve the expressiveness and adaptability of robots, enabling them to handle complex tasks with greater precision. The open-source engine will allow developers to simulate interactions with real-world elements such as fabric, sand, and food, making robotic movement more natural. Nvidia confirmed that Newton will integrate seamlessly with Google DeepMind’s robotics toolkit, including MuJoCo, its multi-joint simulation engine.

Disney has long experimented with robotic characters for its theme parks, showcasing controlled demonstrations at events like SXSW. With the introduction of Newton, Disney Imagineering sees an opportunity to roll out these robots across multiple park locations starting next year. The collaboration between Nvidia, Disney, and Google DeepMind marks a major leap in entertainment robotics, promising theme park guests a more immersive and dynamic experience.

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California approves Tesla’s transport permit, but not for robotaxis

Tesla has received approval from the California Public Utilities Commission (CPUC) to operate a transportation service in the state, though the permit does not yet extend to autonomous vehicle operations. The transportation charter permit (TCP), granted on Tuesday, allows Tesla to use its own vehicles and employees as drivers for prearranged transport services. Initially, the company plans to use this permit for employee transportation, with the possibility of expanding to public services in the future.

Unlike Uber and Lyft, which operate under transportation network company (TNC) permits, Tesla’s TCP authorisation requires the company to own the vehicles and directly employ its drivers. The permit does not allow Tesla to test or deploy autonomous vehicles, nor does it grant the company participation in California’s Autonomous Vehicle Passenger Service Programs. Should Tesla wish to operate a driverless service, it would need additional approvals from both the CPUC and the California Department of Motor Vehicles (DMV).

Despite these restrictions, Tesla continues to push forward with its self-driving ambitions. CEO Elon Musk has announced plans to launch a robotaxi service in Austin, Texas, as early as June, using vehicles equipped with an updated version of the company’s Full Self-Driving software. While California regulators have not yet approved Tesla’s autonomous ride-hailing plans, the newly acquired permit may represent the first step towards that goal.

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Google acquires Wiz in $32 billion deal

Google has finalized a $32 billion acquisition of Israeli cybersecurity firm Wiz, sealing the deal just weeks after Donald Trump’s inauguration.

The agreement, a significant increase from Google’s initial $23 billion offer, was aided by the expectation of a friendlier antitrust review under the new administration, sources familiar with the negotiations said.

Wiz had considered an IPO before returning to the negotiating table, with new Chief Financial Officer Fazal Merchant playing a key role in shaping the deal alongside CEO Assaf Rappaport.

Google’s cloud chief, Thomas Kurian, was also instrumental in the agreement, which includes an unusually high $3.2 billion breakup fee should regulatory issues derail the transaction.

With Wiz boasting 70% annual revenue growth and over $700 million in annualized revenue, Google viewed the premium price as justified.

However, concerns remain over potential antitrust scrutiny, particularly given Google’s ongoing legal battles with the US Department of Justice over its dominance in search and ad technology.

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Palmetto leverages AI to revolutionise home electrification across the US

Palmetto, known for its innovative approach to residential solar installations, is now focusing on the broader electrification of US homes using AI.

The company has developed an AI-powered tool that simulates digital twins of homes across the country, which will help determine how technologies like heat pumps and solar panels can be effectively deployed in individual homes.

By using public and private data, Palmetto’s AI can infer critical information about a home, such as insulation types and building materials, to optimise energy efficiency.

As the residential solar market slows, Palmetto has expanded its software to include electrification solutions beyond solar, including backup batteries and heat pumps.

The company has now made its tool available to external developers through an API, allowing them to create new applications that can speed up the electrification process.

Palmetto hopes that developers will build tools that can quickly address the demand for these technologies, which will be essential in the US effort to reduce carbon emissions.

The company’s AI system analyses over 60 characteristics of homes, including details like the construction year and materials used, to make accurate energy efficiency predictions.

However, this tool will also offer developers insights into the growing electrification market. With an API offering 500 free calls per month, Palmetto’s strategy allows for scalable growth while providing key data for the company’s future development.

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Semiconductor industry’s environmental impact calls for EU action

The European Union is being advised to strengthen its focus on sustainable semiconductor production as emissions from the industry continue to rise.

A new study by the think-tank Interface highlights the growing pollution caused by the manufacturing of cutting-edge chips, essential for AI technology.

Over the past eight years, global energy consumption in the semiconductor sector has surged by 125%, largely due to the increasing demand for advanced chips, which require higher energy input and generate more emissions.

While the industry’s high-emission production methods have raised concerns, the report also points to opportunities for Europe to capitalise on its strengths in the manufacturing of ‘legacy’ chips.

These chips, used in sectors like automotive, energy, and industrial applications, tend to have a smaller environmental footprint. European companies such as STMicroelectronics, Infineon, and NXP are already market leaders in this area, which could be key to the EU’s efforts to foster a greener transition.

Despite the EU’s ambitions, including the 2023 Chips Act aimed at boosting production, questions remain over whether Europe should invest further in cutting-edge chip manufacturing.

The study suggests that pursuing this route could have significant environmental costs, particularly due to the high energy consumption involved. However, the EU’s access to renewable energy sources and water might provide an advantage over the high-cost, energy-hungry production processes in Asia.

Julia Hess, the study’s lead author, argues that chips manufactured under higher environmental standards could offer Europe a long-term competitive edge in the semiconductor industry, driving both sustainability and technological leadership.

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BMW to equip cars with Huawei HiCar system

BMW will integrate Huawei’s HiCar system into its locally produced models starting in 2026, strengthening its presence in the Chinese market.

The partnership will enable seamless connectivity between Huawei devices and BMW vehicles, enhancing smart driving applications through the Harmony operating system.

The German automaker emphasised its commitment to deeper collaboration with Chinese partners, aiming to integrate them more closely into its global innovation network.

By working with local suppliers, BMW seeks to foster long-term cooperation and technological advancement in one of the world’s largest automotive markets.

An approach that aligns with BMW’s broader strategy of leveraging local expertise to remain competitive in a fast-evolving automotive landscape.

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Europe’s tech giants push for sovereign fund

More than 90 European technology companies and lobby groups, including Airbus and Dassault Systèmes, have called on European Commission President Ursula von der Leyen to establish a sovereign infrastructure fund.

In an open letter dated 14 March, they emphasised the urgent need for Europe to strengthen its strategic autonomy in critical digital infrastructure, from AI frameworks to semiconductor manufacturing.

The letter warns that Europe’s reliance on foreign technology creates security risks and weakens economic growth. It highlights the importance of public investment, particularly in capital-intensive sectors like quantum computing and microchips. The signatories also suggest a ‘buy European’ policy in government procurement to boost demand and encourage local businesses to invest.

Prominent supporters of the initiative include French cloud provider OVH Cloud, the European Software Institute, and the German AI Association. The appeal also reached EU tech chief Henna Virkkunen, as Europe faces increasing pressure to compete with major US and Asian technology powers.

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