Wolfspeed is set to receive $750 million in government grants for its new silicon carbide wafer manufacturing plant in North Carolina, as announced by the US Commerce Department. This funding news caused the US chipmaker’s shares to surge over 30%. The preliminary agreement requires Wolfspeed to strengthen its balance sheet to safeguard taxpayer funds.
Investment firms, led by Apollo Global Management, have pledged an additional $750 million in financing for Wolfspeed. The company produces energy-efficient chips using silicon carbide, crucial for applications like electric vehicles and renewable energy systems. As part of a larger $6 billion expansion plan, Wolfspeed aims to increase its manufacturing capacity in Marcy, New York.
Wolfspeed anticipates up to $1 billion in cash tax refunds from the advanced manufacturing tax credit under the Chips and Science Act. CEO Gregg Lowe highlighted the significance of Wolfspeed’s products to the US economy and national security. However, the company has encountered difficulties this year, with its stock plummeting nearly 75% due to a decline in electric vehicle demand. The grant remains subject to due diligence and is not yet finalised.
ASML’s lowered 2025 sales forecast has triggered a significant sell-off in semiconductor stocks, reflecting concerns over global chip demand. While the Dutch company’s revised forecast indicated €30 billion to €35 billion in net sales, this figure sits near the bottom of previous projections. Its stock plunged to record its biggest one-day drop in 25 years, sending shockwaves throughout the chipmaking sector.
The shift in outlook suggests that factory overcapacity, rather than weak demand, is affecting orders. Many manufacturers, including Intel, Samsung, and TSMC, had stocked up on ASML’s advanced tools during the pandemic. As production efficiency improved, fewer new machines were needed to keep up with stabilising demand. Analysts noted that chip factories have become better at maximising output with existing equipment.
Chip usage at production facilities remains around 81%, far from the 95% threshold where manufacturers typically invest in new tools. Industry experts also reported that new technology could reduce the reliance on ASML’s machines. Samsung, for example, is exploring advanced chip-etching techniques to minimise the use of ASML’s extreme ultraviolet lithography machines, potentially creating excess capacity.
Despite challenges, analysts maintain an optimistic long-term outlook for the semiconductor industry. AI-related chips and memory solutions remain in high demand, though the broader market continues to experience some volatility. Experts believe the current slowdown is a temporary phase before the sector resumes growth.
Grayscale, a prominent crypto asset manager, has officially filed with the United States Securities and Exchange Commission (SEC) to convert its $520 million Digital Large Cap Fund into an exchange-traded fund (ETF). The New York Stock Exchange (NYSE) submitted the request on Grayscale’s behalf in a 14 October filing. This move aims to simplify the buying and selling of shares for investors by creating a spot ETF that holds the underlying assets rather than relying on futures contracts.
Currently managing over $524 million in assets, the fund is heavily weighted in Bitcoin, accounting for 76% of its portfolio, with Ether making up 18%. The conversion comes on the heels of the SEC’s changing stance on crypto ETFs, following a favourable court ruling for Grayscale earlier this year. Previously, the SEC had rejected all applications for spot crypto ETFs, but the new developments indicate a shift in regulatory approach.
Investors have been offloading shares following the ETF conversions of Grayscale’s Bitcoin Trust and Ethereum Trust, with notable outflows recorded. Since the conversion to ETFs, Grayscale’s Bitcoin fund has seen $21 billion in outflows, while its Ethereum ETF has recorded $3 billion. Meanwhile, Grayscale continues to expand its offerings, recently adding 35 altcoins to its consideration list for future investment products.
Apple has introduced its new iPad mini, equipped with advanced AI capabilities and powered by the A17 Pro chip, which is also used in the iPhone 15 Pro models. The upgraded iPad mini is set to deliver 30% better CPU performance compared to its predecessors and will include AI-driven writing tools and an enhanced Siri assistant, running on Apple’s AI software, Apple Intelligence.
A new software update, iPadOS 18.1, will roll out the first AI features in the United States English version this month for iPads using the A17 Pro or M1 chips and later models. Additional AI features, such as image generation and ChatGPT-powered tools, are expected to be released over the coming months.
Despite initial concerns over the iPhone 16 launch in September, analysts predict the new iPad mini and AI-driven devices will boost Apple’s sales in the fourth quarter and sustain momentum into 2025. Apple’s third-quarter shipments already reached a record high.
The new iPad mini, starting at $499, is now available for pre-order and will start shipping to customers and stores next week, according to Apple.
Intel and AMD are teaming up to ensure software compatibility across their x86 chips in response to competition from Arm Holdings. For decades, Intel’s x86 architecture has powered laptops, PCs, and servers, with AMD licensing the technology to make its own competing chips. However, Arm’s market share has grown, partly due to its contracts requiring that all Arm chips support Arm software universally.
In response, Intel and AMD have formed an advisory group that includes major industry players such as Broadcom, Dell Technologies, Lenovo, and Oracle. The group’s objective is to establish consistent and compatible standards for x86 chips by combining expertise from the hardware and software sectors.
At a Lenovo event in Seattle, Intel CEO Pat Gelsinger highlighted the flexibility of x86 technology for AI-enabled laptops, stating that the architecture is still strong and poised for growth and innovation as AI advances.
Japanese tech giants NTT Communications and SoftBank are developing AI-driven systems to support call centre employees dealing with abusive customers. NTT Communications has designed a support system that monitors interactions, providing operators with appropriate real-time responses. During a recent demonstration, the system suggested a response to a customer complaint, which was then confirmed as effective.
The technology aims to reduce the psychological stress faced by call centre staff, who often struggle to remain composed when confronted with aggressive callers. By providing quick and accurate responses, the system may also help calm upset customers, according to NTT Communications.
Meanwhile, SoftBank is working on an AI system that modifies the tone of customer voices during interactions, aiming to ease tensions. The company plans to launch this service by fiscal year 2025. These developments address the growing issue of ‘kasu-hara,’ or customer harassment, in Japan, where verbal abuse and demands for excessive apologies have led to mental health issues and job resignations among workers in service industries.
Google is enhancing its Shopping tab with AI, building on its previous integration of generative AI into Search in 2023. The company announced it will use AI technology to help users find products that match their specific needs. The update includes a new, personalised feed of shoppable products, offering a scrollable, TikTok-inspired design.
When users search for a product, an AI-generated brief will provide personalised tips and considerations based on their query. For example, if someone searches for a “men’s winter jacket for Seattle,” the AI might recommend prioritising water resistance for the rainy climate and suggest insulation types suitable for the milder temperatures.
Google’s AI will recommend relevant products, offering brief descriptions to explain why each item is a suitable choice. Users can browse categories like “Synthetic insulated winter jackets for Seattle” and use filters to refine their search based on specific sizes or local availability.
The personalised shopping feed will showcase products and videos tailored to user preferences, featuring items like Chelsea boots alongside YouTube Shorts with shopping tips. Google is positioning itself to compete with TikTok, which has gained traction in e-commerce. These new features will roll out in the US in the coming weeks, as Google combines its Shopping Graph with advanced Gemini models to enhance the user experience.
Blackstone, the world’s largest alternative asset manager, is set to invest €7.5 billion ($8.2 billion) in developing data centres in Aragon, Spain, further establishing the region as a key cloud computing hub in Europe. This investment follows similar moves by tech giants like Microsoft and Amazon, who are also investing heavily in data centre projects in the area.
The US private equity firm will concentrate on building facilities with cooling systems and cable connections, which will be leased to companies for server installations. The Aragon regional government has indicated that 19 data centre projects are currently pending approval.
In recent announcements, Microsoft revealed plans for a €6.69 billion investment in Aragon, while Amazon’s AWS intends to invest €15.7 billion in its own data centres. Notably, Amazon has committed to powering its facilities with renewable energy, leveraging Aragon’s significant wind power resources.
The Central Bank of Brazil has opened the second phase of its digital currency pilot, Drex, inviting companies to apply from 14 Oct. to 29 Nov. The initiative aims to explore complex use cases for the tokenised real, including government-backed loans, agribusiness assets, and carbon credits. Thirteen proposals have already been approved, advancing Brazil’s push toward integrating blockchain into its financial system.
The first phase of the Drex pilot saw 16 consortiums, mostly led by banks, testing the digital real through decentralised networks. However, privacy concerns remain, with four participants yet to resolve transaction anonymity issues. Brazil’s Securities Commission president stressed that tokenisation is a business model poised for long-term success and must be regulated within the financial system.
Brazil’s efforts to develop its CBDC align with global trends. The Atlantic Council notes that 134 countries are considering CBDCs, with Brazil among the 65 most advanced. China, meanwhile, has made significant strides, with its digital renminbi, e-CNY, reaching $1.02 trillion in transactions by 11 October.
Nvidia’s shares reached a record high on Monday, pushing the AI chipmaker closer to overtaking Apple as the most valuable company in the world. Closing at $138.07, Nvidia’s stock surged 2.4%, driven by investor optimism around demand for both current and future AI processors. The company’s market value now stands at $3.39 trillion, just shy of Apple’s $3.52 trillion.
The fierce competition among leading tech firms has propelled Nvidia to become Wall Street’s biggest success story in the AI race. In June, the company briefly held the title of the world’s most valuable firm before being overtaken by Microsoft. Analysts from TD Cowen highlighted how major AI players face constant pressure to invest, fearing the risk of falling behind in the fast-evolving sector.
Nvidia has been working to meet increasing demand, despite delays in its upcoming Blackwell chip production. The company confirmed that production was postponed until the fourth quarter, although customers remain eager to purchase the current generation of chips. TD Cowen maintained Nvidia as its ‘Top Pick’, with a $165 price target, citing the ongoing demand for its processors.
As Apple and Microsoft also recorded gains, Nvidia, Apple, and Microsoft now account for nearly a fifth of the S&P 500’s total weight. Taiwan Semiconductor, which manufactures Nvidia’s processors, is expected to report a 40% rise in profits later this week, further reflecting the soaring demand for AI technology. Nvidia’s revenue is projected to more than double to approximately $126 billion this year, supported by spending on AI data centres.
