E-commerce and trade Archives | Page 129 of 199

Vietnam opens door for Starlink to launch satellite service

Viet nam is set to adopt new regulations allowing Elon Musk’s Starlink to offer satellite internet services in the country, granting it full control over its local subsidiary. This decision follows prolonged negotiations between Vietnam and SpaceX and marks a shift in Vietnam’s policy towards foreign investment in satellite internet services. The move is seen as a diplomatic gesture towards SpaceX, which could help alleviate tensions amid concerns over potential tariffs from US President Donald Trump.

The new rules, set to be approved by Vietnam’s parliament, will allow foreign companies with low-orbit satellite networks to operate under a pilot scheme until 2030. SpaceX’s efforts to enter Vietnam had previously been stalled in late 2023 due to a ban on foreign control, a requirement for Musk’s involvement. The new regulations are part of broader efforts by the Vietnamese government to remove obstacles in technological and scientific activities.

With plans for a $1.5 billion investment in Vietnam, SpaceX has been expanding its supplier network in the country. If Starlink attracts significant local subscribers, it could help reduce the growing trade surplus Vietnam has with the US, which reached a record $123.5 billion last year. As US tariffs continue to threaten Vietnam’s export-driven economy, the government is also seeking ways to balance trade by increasing imports from the US, including agricultural products.

The shift in Vietnam’s stance reflects a desire to play a more flexible role in international trade relations, especially as tensions between the US and its trade partners escalate under Trump’s administration. The outcome of this policy change could have significant implications for both Starlink’s expansion and Vietnam’s relationship with the US.

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Taiwanese companies eye expansion in Texas

Taiwanese electronics companies are preparing to increase investments in Texas, with major announcements expected in May, coinciding with President Donald Trump’s first 100 days in office. Richard Lee, head of the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that several large Taiwanese companies, particularly those in the AI server industry, are looking to expand their operations in Texas. This follows proactive efforts by Texas’ Republican-led government to attract Taiwanese investment.

The move comes as Trump has criticised Taiwan for its semiconductor business and threatened tariffs on trade partners with significant trade deficits, potentially targeting Taiwan. Last week, Taiwan’s President Lai Ching-te pledged to invest more in the US, adding to the momentum. Companies like Foxconn, Compal, and Inventec, which already have operations in Texas, are expected to announce further expansions, particularly to accommodate the growing demand for AI-related technologies.

Foxconn, which manufactures products for major tech companies like Apple and Nvidia, has already made a $33 million investment in land and factory buildings in Texas. With the demand for AI servers rising, Taiwanese manufacturers are eyeing Texas as a strategic location to meet the growing market needs. However, neither Foxconn nor Compal has yet provided specific details on their plans.

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Data centre growth in Europe set to break records

Europe is on track for an unprecedented expansion in data centre capacity this year, according to new research from CBRE. The commercial real estate firm projects that 937 megawatts of new capacity will come online in 2025, a 43% increase from 2024. This surge is being fuelled by growing demand for artificial intelligence and cloud computing, despite challenges in securing power and land.

Over half of this new capacity is expected in key markets such as Frankfurt, London, Amsterdam, Paris, and Dublin. Secondary markets, including Milan and Madrid, are also experiencing rapid growth, with seven locations forecast to surpass 100MW of supply by the end of the year.

The ongoing boom is driven by several factors, including government incentives, land availability, and the ambitions of major cloud providers. ‘The data centre construction boom will continue unabated,’ said Kevin Restivo, CBRE’s head of European data centre research, highlighting the sector’s resilience despite infrastructure challenges.

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Google’s India policy head resigns amid market challenges

Google’s head of public policy in India, Sreenivasa Reddy, has stepped down, marking the second high-profile exit from the role in two years. Reddy, who joined the company in September 2023 after stints at Microsoft and Apple, played a crucial role in navigating regulatory challenges while Google expanded its services in India. The company confirmed his departure but declined to provide further details.

India remains a critical market for Google, with the majority of the country’s smartphones running on its Android system. The tech giant has faced increasing scrutiny from regulators over antitrust issues, even as it continues to grow its presence with local manufacturing and AI investments.

In the interim, Iarla Flynn, Google’s policy head for northern Europe, will take over the role. The company reaffirmed its commitment to the Indian market, emphasising its long-term vision despite the ongoing leadership changes.

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Ray-Ban Meta sales drive smart glasses growth

EssilorLuxottica is set to ramp up production of its smart glasses, driven by the success of its Ray-Ban Meta range developed in partnership with Meta. Since their launch in September 2023, over two million units have been sold, with growing user engagement indicating a shift towards mainstream adoption.

The eyewear giant, which has collaborated with Meta since 2019, aims to expand its smart glasses portfolio with new brands and features. The company is also considering subscription-based services and additional functionalities to enhance user experience.

To meet rising demand, EssilorLuxottica plans to increase production capacity to 10 million units annually by the end of next year. Manufacturing will be expanded across China and Southeast Asia, enabling the company to support future product releases, including the development of Nuance Audio glasses with integrated hearing solutions.

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Indian music industry joins lawsuit against OpenAI

Several of India’s leading Bollywood music labels, including T-Series, Saregama, and Sony, seek to join a lawsuit against OpenAI in New Delhi. They are concerned that the company’s AI models may have used their sound recordings without permission, potentially violating copyright laws. The legal action follows a previous lawsuit filed by Indian news agency ANI, which accused OpenAI’s ChatGPT of using content without authorisation to train its models. The music labels argue that this issue has significant implications for the global music industry.

The music companies, which represent major Indian and international music acts, claim that OpenAI’s AI systems could extract lyrics, compositions, and sound recordings from the internet without consent. T-Series, known for releasing thousands of songs annually, and Saregama, which holds a vast catalogue of iconic Indian music, are leading the charge. The Indian Music Industry (IMI), which also represents global labels like Sony Music and Warner Music, is pushing for the case to be heard in court, as the outcome could impact the future use of copyrighted content in AI training.

OpenAI, backed by Microsoft, argues that it adheres to fair-use principles by using publicly available data to build its AI models. However, the company is facing increasing legal pressure from multiple sectors worldwide, including recent lawsuits in Germany, where GEMA accused OpenAI of unlicensed use of song lyrics. OpenAI has opposed the Indian lawsuit, claiming that Indian courts do not have jurisdiction over the matter, given the company’s US base.

The next court hearing, which could shape the future of AI and copyright law in India, is scheduled for 21 February. This legal battle is gaining attention, particularly as OpenAI’s chief, Sam Altman, recently visited India to discuss the country’s plans for developing low-cost AI technology.

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GlobalWafers confirms US investments are on track

Taiwan’s GlobalWafers confirmed on Friday that its investments in the US are proceeding as planned, despite potential changes under the US CHIPS Act. The company has been awarded $406 million in government grants to expand its silicon wafer production in Texas and Missouri. However, the Biden administration is considering changes to some CHIPS Act funding, which has raised concerns for GlobalWafers, as sources indicated there could be delays or renegotiations of some semiconductor-related disbursements.

GlobalWafers CEO Doris Hsu stated that the company has not yet received any notifications regarding changes to its subsidy terms. She emphasised that, if adjustments to the CHIPS Act do occur, the company would need to reassess its investment strategy in the US. Hsu added that the decision would depend on factors such as US demand, pricing conditions, and potential tariffs, though she noted that these scenarios are still hypothetical at this stage.

The company is moving forward with its expansion plans across three US plants, with funding tied to specific milestones. Hsu reassured that the planned investments are continuing according to schedule, with no immediate changes to the company’s strategy. GlobalWafers remains optimistic about its US operations, bolstered by its existing factories in the country and its strong global presence.

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Trump administration eyes changes to CHIPS Act deals

The Trump administration is reevaluating the conditions of CHIPS and Science Act subsidies, which allocate $39 billion to boost domestic semiconductor production. Sources indicate that ongoing projects under the 2022 law are being reviewed for compliance with new policy priorities, potentially leading to renegotiations or delays.

GlobalWafers, a Taiwanese company set to receive $406 million for projects in Texas and Missouri, noted that Washington has not yet communicated any changes.

However, new White House policies are reportedly under review, including those related to unionised labour and childcare for factory workers. Each subsidy agreement has unique milestones that recipients must meet to secure funding.

Concerns over companies expanding operations in China despite receiving CHIPS funding have also emerged. Intel, for example, announced a $300 million investment in a Chinese facility after receiving substantial subsidies.

The Semiconductor Industry Association has expressed its willingness to collaborate with the Trump administration to streamline program requirements and maintain progress.

Industry giants such as TSMC, Samsung, and Intel continue to navigate the shifting landscape of the CHIPS Act, with no immediate clarity on how changes will affect existing agreements. The White House has yet to respond to requests for further comment on these developments.

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Taiwan President vows to address US semiconductor concerns

Taiwan‘s President Lai Ching-te has pledged to address concerns raised by former US President Donald Trump regarding Taiwan’s semiconductor industry. Speaking after a National Security Council meeting, Lai acknowledged the importance of global semiconductor supply chains and vowed to work with Taiwan’s semiconductor sector to develop strategies to address US concerns. He emphasised the need for democratic nations, including the US, to collaborate on creating a “democratic supply chain” for advanced chips, particularly in the growing AI sector.

Lai also reassured the US of Taiwan’s commitment to contributing to the international economy, noting that Taiwan, home to the world’s largest contract chipmaker, TSMC, plays a vital role in the semiconductor market. TSMC is heavily invested in the US, including a $65 billion investment in new factories in Arizona. Despite these efforts, Taiwan’s defence spending remains a topic of criticism, particularly from Trump, who has repeatedly highlighted Taiwan’s insufficient military expenditure amid increasing threats from China.

In response to US concerns, Lai revealed plans to propose a special budget to raise Taiwan’s defence spending from 2.5% of GDP to 3%. This proposal is currently being debated in parliament, where opposition parties hold a majority. Lai stressed that Taiwan’s determination to defend itself must be clear, as international allies continue to voice concerns over its defence readiness.

Finally, Lai reiterated Taiwan’s key role as a reliable trading partner to the US, especially in high-tech exports such as semiconductors. Taiwan’s trade surplus with the US surged by 83% last year, with exports reaching a record $111.4 billion.

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Alibaba secures major AI deal with Apple

Alibaba has announced a new partnership with Apple to support the development of AI services for iPhones in China, a move that aims to help Apple counter declining smartphone sales in its crucial market. The collaboration is seen as a significant win for Alibaba, which is gaining ground in China’s competitive AI industry, dominated by local players like DeepSeek. This deal comes after months of speculation regarding Apple’s AI strategy in the region, as the tech giant held discussions with other Chinese companies such as Baidu, ByteDance, and Tencent.

While the specifics of the partnership are still unclear, Alibaba’s chairman Tsai noted that Apple chose their AI technology to power its phones in China. The two companies have already submitted necessary regulatory materials to Chinese authorities, as consumer-facing AI products in the country require approval. Alibaba’s stock saw a notable rise following the announcement, reflecting investor optimism about the deal.

The timing of this collaboration is crucial for Apple, which has faced challenges in China, including falling iPhone sales and increased competition from domestic rivals like Huawei. Analysts suggest that Apple’s struggles in the region are partly due to the lack of advanced AI features in its phones, a growing demand in the Chinese market. Apple’s sales in Greater China dropped significantly in late 2024, and the company lost its top position in the market to local players like Vivo and Huawei.

For Alibaba, the partnership underscores its growing strength in AI, with its stock price surging in 2025. The company’s Qwen 2.5 AI model, which surpassed the capabilities of competitors, has become a focal point of its recent success. As Apple seeks to re-establish its presence in China, the effectiveness of this AI collaboration will likely play a critical role in its future in the market.

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