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India and Japan expand strategic AI partnership

India and Japan have agreed to deepen cooperation on AI, linking AI governance, cybersecurity, infrastructure, research and talent development.

In a joint statement, the two countries described AI as a transformative technology with long-term implications for innovation, economic security, governance and the international order.

Both sides are committed to building a safe, secure, trustworthy, inclusive and human-centric AI ecosystem. They also agreed to strengthen cooperation with partners in the Indo-Pacific and the Global South.

The statement identifies international AI governance, safety and cybersecurity as priority areas. India and Japan said they would coordinate in forums including the G20, OECD, Global Partnership on AI and the UN, while supporting responsible innovation and risk-based governance.

The two countries also agreed to cooperate on AI-enabled cybersecurity and the security of AI systems, with particular attention to critical infrastructure. They highlighted the need for safeguards to ensure AI supports children’s learning and growth rather than causing harm.

AI infrastructure is another focus. India and Japan will strengthen cooperation on data centres, GPU and other compute resources, semiconductors and trustworthy supply chains across the AI technology stack.

The statement also supports collaboration on multilingual, open-source and domain-specific AI models, including models for native languages and public-interest applications. Several memoranda were signed, including partnerships involving IIT Bombay, BharatGen, Japan’s National Institute of Informatics, Sarvam, Preferred Networks, IndiaAI and Japan’s Ministry of Economy, Trade and Industry.

Both sides also committed to researcher exchanges, industry-academia collaboration and talent mobility. Japan reaffirmed its goal of welcoming 500 highly skilled AI professionals from India by 2030.

Why does it matter?

The joint statement shows how AI cooperation is becoming part of broader economic and security strategies in the Indo-Pacific. India and Japan are not only discussing AI governance, but also the infrastructure and supply chains needed to build and deploy AI systems, including compute, semiconductors, data centres and talent. The focus on multilingual and open-source models also matters for countries seeking AI systems that reflect local languages, public-interest needs and Global South priorities.

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UAE and US deepen AI partnership under Pax Silica framework

The United Arab Emirates is expanding its AI cooperation with the United States, describing the partnership as a long-term strategic framework centred on investment, trusted technology and joint innovation across multiple sectors.

The UAE is investing across the US AI ecosystem, including semiconductors, AI applications, energy and digital infrastructure. Officials said the partnership reflects years of institutional cooperation, reinforced through continued policy alignment, economic collaboration and high-level engagement.

At the second Pax Silica Summit in Washington, UAE representatives joined international partners in advancing the Joint Statement on AI Opportunity, with 35 countries reaffirming their commitment to innovation-driven policies, private-sector research and resilient technology supply chains. The UAE joined the Pax Silica initiative in January 2026 as part of a broader US$1.4 trillion economic and technology framework.

The partnership also includes major infrastructure and investment projects, including advanced US semiconductor exports to the UAE, a joint AI campus in Abu Dhabi and expanding data centre capacity. Officials said cooperation will continue to deepen through long-term investment, research and technology integration.

Why does it matter?

The partnership illustrates how AI is increasingly shaping strategic relationships between countries, extending beyond research cooperation into semiconductors, computing infrastructure, investment and supply chains. Governments are treating AI capabilities as a foundation of long-term economic competitiveness and technological influence.

It also reflects the growing importance of trusted international technology partnerships. As countries seek secure access to advanced chips, data centres and AI infrastructure, collaborations such as the UAE-US partnership are becoming an important part of broader industrial, economic and geopolitical strategies.

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Canada and Germany strengthen semiconductor supply chains

Canada and Germany have signed a joint declaration of intent to strengthen semiconductor supply chains and deepen industrial cooperation, reinforcing collaboration in a technology that underpins AI, advanced computing and the digital economy.

The declaration was signed on the sidelines of the International Energy Agency’s (IEA) Annual Global Conference on Energy Efficiency by Carlos Leitão, Parliamentary Secretary to Canada’s Minister of Industry, and Stefan Rouenhoff, Parliamentary State Secretary at Germany’s Federal Ministry for Economic Affairs and Energy.

Canada said resilient and diversified semiconductor supply chains are becoming increasingly important as global demand grows for AI, advanced computing and connected technologies.

The declaration establishes a framework for policy dialogue and cooperation on investment, industrial development, technology and research. It also aims to support start-ups, scale-ups and small and medium-sized enterprises while building on both countries’ semiconductor expertise to strengthen competitiveness.

Canada described semiconductors as foundational technologies for the digital economy, highlighting their role in enabling AI and other emerging technologies.

The declaration also supports Canada’s National Artificial Intelligence Strategy: AI for All, particularly its focus on infrastructure, international partnerships and long-term competitiveness. It builds on a series of bilateral initiatives launched since late 2025, including the Canada-Germany Digital Alliance, a joint AI declaration, the Sovereign Technology Alliance, and cooperation on automotive manufacturing, batteries and critical minerals.

A separate February 2026 declaration also expanded bilateral industrial cooperation in auto and battery manufacturing and critical minerals. Officials from both countries said stronger semiconductor supply chains can support innovation, economic resilience and long-term prosperity.

The partnership adds semiconductor supply chains to a wider Canada-Germany agenda focused on trusted advanced technologies, economic security and the next generation of AI-enabled digital infrastructure.

Why does it matter?

Semiconductors have become strategic assets that underpin AI, advanced computing, telecommunications and many other digital technologies. By strengthening cooperation on chip supply chains, Canada and Germany aim to reduce supply chain vulnerabilities, encourage investment and support long-term technological competitiveness.

The agreement also reflects a broader trend of trusted technology partnerships among like-minded countries. Rather than focusing solely on trade, governments are increasingly coordinating industrial policy, research and supply chains to strengthen economic security and reduce dependence on concentrated sources of critical technologies.

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South Korea plans $518 billion semiconductor hub for AI demand

Samsung Electronics and SK Hynix have announced plans to invest a combined 800 trillion won, about $518 billion, in a new semiconductor manufacturing hub in South Korea’s southwest.

The two companies, which together produce around two-thirds of the world’s memory chips, will each build two new fabrication plants outside their existing manufacturing base in Gyeonggi Province.

Samsung’s new facilities are planned for the city of Gwangju, with several possible sites under consideration, including land linked to a military air base planned for relocation.

The investment responds to rising demand for memory chips used in AI data centres, industrial robotics and autonomous vehicles. Existing semiconductor facilities in Gyeonggi Province are expected to face capacity pressure sooner than previously projected.

South Korea’s government is also linking the project to a broader strategy to build a nationwide semiconductor ecosystem. Existing hubs in the Southeast are expected to expand chip component and material production. At the same time, the central Chungcheong region will focus on chip packaging, and data centres will be developed across the country.

The project also supports the government’s goal of spreading major technology investment beyond the Seoul metropolitan area, where much of the country’s semiconductor industry has historically been concentrated.

Why does it matter?

The planned investment shows how AI demand is driving long-term semiconductor capacity expansion at a national scale. Memory chips are central to AI data centres and high-performance computing, and Samsung and SK Hynix remain two of the most important suppliers in the global market. South Korea’s decision to link new chip fabrication with regional development also shows how AI infrastructure is becoming part of broader industrial and economic planning, not only technology strategy.

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EU signs Pax Silica Declaration on AI supply chains

The European Commission has signed the Pax Silica Declaration on behalf of the EU, joining an international initiative focused on AI security and resilient silicon supply chains.

Pax Silica is a US-led initiative that aims to strengthen cooperation among allies and trusted partners across the AI supply chain, from critical minerals and energy inputs to semiconductor manufacturing, AI infrastructure and logistics.

The Commission said secure access to silicon and related technologies is becoming increasingly important as AI reshapes economies, security and industrial competitiveness.

The declaration commits signatories to closer cooperation on trusted technology ecosystems and more resilient supply chains. It also aims to reduce strategic dependencies and improve coordination on the materials, infrastructure and manufacturing capacity needed for AI development.

The EU’s signature follows the adoption of the European Technological Sovereignty Package, which includes Chips Act 2.0 and measures to strengthen Europe’s capacity in semiconductors, AI, cloud and open-source technologies.

The Commission said participation in Pax Silica could support European businesses, strengthen international partnerships and contribute to Europe’s broader technological sovereignty objectives.

Why does it matter?

AI development depends on far more than models and software. Advanced chips, critical minerals, energy, manufacturing capacity, cloud infrastructure and logistics are becoming strategic layers of the AI economy. By joining Pax Silica, the EU is linking AI competitiveness and security to semiconductor supply-chain resilience and cooperation with trusted partners. The move also shows how digital sovereignty is increasingly pursued through both domestic capacity-building and selective international alignment.

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China’s latest supercomputer strengthens AI ambitions

China has regained the world’s leading position in supercomputing after the LineShine system became the fastest computer in the latest TOP500 ranking, replacing the US’s El Capitan at the top of the list.

The achievement marks China’s return to first place for the first time since 2017 and highlights the growing strategic importance of high-performance computing in the AI era.

Unlike many recent AI-focused supercomputers that rely heavily on graphics processing units (GPUs), LineShine achieves exascale performance using conventional central processing units (CPUs).

Beyond topping benchmark rankings, the system is expected to support scientific research, advanced simulations, climate modelling, pharmaceutical development and the training of increasingly sophisticated AI models.

The announcement also reflects the broader ambition of China to strengthen technological leadership while presenting its innovation ecosystem as a contributor to global technological development.

Europe also remains a major player in high-performance computing. Four European systems rank among the world’s ten fastest supercomputers, while the EU continues to invest in AI factories, next-generation supercomputing infrastructure and collaborative research centres.

The growing investment in supercomputers reflects how computing infrastructure is increasingly being treated as a strategic asset alongside semiconductors, cloud infrastructure and advanced data centres.

As governments increasingly link AI capabilities with economic competitiveness, scientific leadership and national security, access to world-class computing resources is becoming one of the defining factors shaping the global technology balance.

Why does it matter?

The latest TOP500 ranking underline that computing capacity is becoming a defining factor in AI development and scientific competitiveness. As frontier AI models require ever-greater computational resources for training and inference, access to world-class supercomputers is emerging as a strategic advantage alongside semiconductor manufacturing and cloud infrastructure.

China’s return to the top of the rankings also highlights the geopolitical dimension of high-performance computing. At the same time, continued European investment in AI factories and supercomputing infrastructure reflects a broader effort to strengthen technological sovereignty and reduce dependence on external computing resources as countries compete for leadership in AI and advanced research.

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EU launches ADACities for autonomous driving

The European Commission has launched the Autonomous Drive Ambition Cities initiative to support the deployment of autonomous driving technologies in cities across the EU.

The initiative, known as ADACities, was announced by Executive Vice-President Henna Virkkunen during the first international forum of the European Connected and Autonomous Vehicle Alliance in Brussels.

The Commission said ADACities will serve as a mobility flagship under the Apply AI Strategy, allowing selected EU cities to become real-world deployment sites for autonomous mobility innovation.

The initiative will support technologies such as robo-taxis, car-sharing services, autonomous shuttles for multimodal urban mobility and advanced self-driving cars. Participating cities will target fleets of 100 or more autonomous vehicles by 2030.

The Commission said partnerships supported by ADACities should be EU-centric, with European vehicle manufacturers and technology providers at the core, while still allowing international collaboration.

The initiative is also linked to the EU Technological Sovereignty Package. The Commission said autonomous driving deployment will draw on European capabilities in semiconductors, sovereign cloud and data infrastructure, AI Factories and open-source technologies.

ADACities builds on a joint declaration of intent to create a cross-border testbed for automated vehicle deployment. The Commission has opened a call for expressions of interest and will hold an online information session for cities and stakeholders.

Why does it matter?

ADACities shows how the EU is treating autonomous driving as part of AI deployment, urban mobility and industrial competitiveness, not only as a transport technology. By linking autonomous mobility to sovereign cloud, semiconductors, data infrastructure and AI Factories, the Commission is framing city-level deployment as a test of Europe’s ability to turn AI and automotive expertise into scalable public services. The initiative also raises governance questions around safety, liability, infrastructure readiness, data use and public trust.

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Google Cloud urges changes to EU tech sovereignty plans

Google Cloud has urged EU policymakers to revise parts of the European Commission’s Tech Sovereignty Package, arguing that some proposed cloud sovereignty measures could unintentionally isolate the European digital market.

In a policy statement, Giorgia Abeltino, Head of Government Affairs and Public Policy for Google Cloud in EMEA, said Europe requires significant investment in digital infrastructure to strengthen competitiveness, security and technological sovereignty. She said the EU is considering how to expand its digital footprint across chips, cloud adoption, and AI data infrastructure.

Google Cloud said it supports the Commission’s emphasis on openness, partnerships and fair competition, particularly measures aimed at interoperability and reducing vendor lock-in. It welcomed measures on interoperability, efforts to address vendor lock-in, an open source strategy for the public sector, and faster data centre deployment.

However, the company said certain elements of the proposed Cloud and AI Development Act should be changed to avoid unintended market isolation. Google Cloud said trusted global partners should be able to continue supporting Europe’s security and scaling goals under an open framework.

The company said its vision of technological sovereignty is based on verifiable technical controls, customer choice and continued investment in European digital infrastructure. It pointed to its sovereign cloud services, including standard public cloud configurations with European data boundaries, independently operated regional cloud services, and air-gapped solutions for sensitive public-sector operations.

Google Cloud also highlighted partnerships with European companies, including S3NS in France; Thales, Schwarz Group, and T-Systems in Germany; PSN in Italy; Clarence in Luxembourg; and Telefónica in Spain. It said these partnerships support operational resilience and jurisdictional controls under existing national tech sovereignty frameworks.

The company said the S3NS offering in France has been qualified under SecNumCloud 3.2. It also said Clarence and S3NS, together with Mistral, offer services approved by the EU Directorate-General for Digital Services for use by EU institutions with sovereign cloud needs.

Google Cloud also raised concerns about the proposed Union Assurance Levels within the Cloud and AI Development Act. It said harmonising sovereignty criteria across Member States is useful, but argued that the proposed criteria could limit or exclude global providers regardless of the security safeguards they offer.

The company said EU rules should allow technical approaches to sovereign control rather than relying too heavily on geographic criteria. The company cited its Cloud External Key Manager as an example of a technical sovereignty mechanism that allows customers to retain control of encryption keys outside Google’s infrastructure.

Google Cloud also called for the Cloud and AI Development Act to follow a more balanced approach similar to the proposed Industrial Accelerator Act. The company said trusted non-EU partners should be able to operate as EU-origin under clear conditions, backed by trade rules and safeguards.

The company also backed the package’s goal of promoting interoperability and reducing vendor lock-in. It said tech sovereignty should increase user choice and argued for reforms allowing users to move software licences freely, ensuring fair pricing for legacy software, and guaranteeing that software runs equally well on any cloud platform.

Google Cloud said physical compute infrastructure is central to digital tech sovereignty. It welcomed the ambitions of Chips Act 2.0 and the proposed €30 billion investment in European semiconductor research and development, but said Europe also needs regulatory conditions that attract large-scale compute infrastructure investment.

The company said it operates 13 European cloud regions and has recently invested in Germany, Belgium, and Sweden. It welcomed proposed special project status for data infrastructure projects to streamline permitting, grid access, and power purchase agreements.

Google Cloud said fast-track permitting should prioritise highly sustainable infrastructure projects. It also called for national sustainability criteria to align with the upcoming EU-wide rating scheme and said acceleration zones should not artificially restrict where new data centres can be built.

The company said Europe has an opportunity to build a resilient, competitive and open digital future. It said global innovation and European values can be advanced together through open source software, sovereign cloud partnerships and collaboration with European policymakers and regional partners.

Why does it matter?

The debate highlights a central challenge in Europe’s digital policy agenda: how to strengthen technological sovereignty without undermining openness, competition and access to global innovation. As the EU seeks greater control over critical digital infrastructure, cloud services and AI capabilities, policymakers must decide whether sovereignty should be defined primarily by ownership and geography or by technical safeguards and operational control.

The outcome could have significant implications for the future European cloud and AI market. Rules governing sovereign cloud services, data infrastructure and assurance standards will influence investment decisions, public-sector procurement, competition among providers and Europe’s ability to develop advanced AI capabilities. The discussion also reflects broader tensions between strategic autonomy and international technology partnerships that are increasingly shaping digital policy worldwide.

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EU’s 2026 State of the Digital Decade report highlights progress and remaining challenges

The European Commission’s 2026 State of the Digital Decade report shows that the EU continues to make progress towards its digital transformation goals, although significant structural challenges remain on the path to its 2030 targets.

The report highlights progress in digital infrastructure, business digitalisation and public services. Basic 5G coverage now reaches 96.8% of households, while nearly one in five businesses uses AI.

AI adoption accelerated significantly during 2025, increasing by 48% compared with the previous year. More than 60% of Europeans now possess at least basic digital skills.

Despite the progress, the Commission identified several areas requiring urgent attention. However, the EU currently accounts for only 9% of the global semiconductor market, well below its target of reaching 20% by 2030.

Europe also remains heavily dependent on non-EU cybersecurity suppliers and continues to face shortages of ICT specialists, particularly women in digital professions.

The report also revealed strong public support for digital sovereignty and technological self-reliance. According to a new Eurobarometer survey, most citizens support greater investment in local digital infrastructure, reduced dependence on foreign technologies and stronger regulation of AI.

Citizens also identified digital health, green technologies, connectivity and AI as areas likely to deliver the greatest benefits over the next decade.

Why does it matter?

The report provides one of the most comprehensive assessments of Europe’s progress towards its 2030 Digital Decade objectives and offers insight into the EU’s broader competitiveness agenda. Strong growth in AI adoption, connectivity and digital public services suggests that digital transformation is accelerating across the Union.

At the same time, the findings highlight persistent challenges related to technological sovereignty. Europe’s limited share of the global semiconductor market, continued dependence on foreign technology suppliers, and ongoing digital skills shortages could constrain its long-term competitiveness. As the EU increasingly links economic resilience, security and digital policy, addressing these gaps will be critical to achieving its 2030 ambitions and strengthening strategic autonomy in key technologies.

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US backs photonics expansion for AI data centres under CHIPS Act

The Department of Commerce’s CHIPS Program Office has signed a letter of intent to provide up to $50 million in direct funding to Coherent Corp. under the CHIPS and Science Act.

According to the CHIPS Program Office, the proposed funding would support the expansion of Coherent’s facility in Sherman, Texas, which it describes as the first and largest high-volume 150mm indium phosphide semiconductor manufacturing facility in the United States.

The expansion would add wafer fabrication equipment and cleanroom capacity to increase production of indium phosphide-based photonic components. These components are used in high-speed optical interconnects that enable rapid data transfer within advanced AI data centres.

The Department of Commerce said the project would create high-skilled manufacturing jobs and strengthen domestic supply chains for critical photonics technologies that support next-generation computing and AI infrastructure.

Why does it matter?

The announcement highlights the growing importance of photonics technologies in the AI economy. As demand for AI computing continues to rise, data centres require increasingly efficient methods for transferring vast amounts of information between processors, servers and storage systems. Optical interconnect technologies based on indium phosphide semiconductors are becoming a critical part of that infrastructure.

The investment also reflects broader US industrial policy goals under the CHIPS and Science Act. Beyond traditional semiconductor manufacturing, policymakers are increasingly targeting specialised components and supply chains considered strategically important for AI competitiveness, economic security and technological resilience.

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