Nvidia used CES in Las Vegas to signal its next push in AI hardware, with chief executive Jensen Huang unveiling a new AI chip designed to deliver more computing power with lower energy use. The chip, named Vera Rubin, is scheduled to ship in the second half of the year.
Huang said the Rubin platform would let companies train AI models with far fewer chips than earlier generations. The redesign is also intended to lower the cost and energy demands of running AI services.
The move comes as demand for AI infrastructure accelerates, straining power supplies and intensifying competition. Rivals and major customers developing their own chips are putting pressure on Nvidia to improve efficiency.
Alongside chips, Nvidia highlighted its growing focus on autonomous vehicles. The company said new AI software would support self-driving development for carmakers and mobility firms, with vehicles using the chipmaker’s technology expected to ship later this year.
Huang said AI, robotics, and autonomy are central to the company’s long-term strategy, as the company seeks to expand beyond data centres. Rising competition and geopolitical scrutiny remain challenges, but Nvidia is betting that more efficient chips will keep it at the centre of the AI boom.
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AMD used CES 2026 to position AI as a default feature of personal and commercial computing. The company said AI is no longer limited to premium systems. Instead, it is being built directly into processors for consumer PCs, business laptops, compact desktops, and embedded platforms.
Executives described the shift as a new phase in AI adoption. CEO Lisa Su said usage has grown from early experimentation to more than one billion active users worldwide. Senior vice president Jack Huynh added that AI is redefining the PC by embedding intelligence, performance, and efficiency across devices.
The strategy centres on the Ryzen AI 400 Series and Ryzen AI PRO 400 Series processors. These chips integrate neural processing units delivering up to 60 TOPS of local AI compute. Built on Zen 5 architecture and XDNA 2 NPUs, they target Copilot+ PCs and enterprise deployments.
AMD also expanded its Ryzen AI Max+ portfolio for ultra-thin laptops, mini-PCs, and small workstations. The processors combine CPU, GPU, and NPU resources in a unified memory design. Desktop users saw the launch of the Ryzen 7 9850X3D, while developers were offered the Ryzen AI Halo platform.
Beyond PCs, AMD introduced a new Ryzen AI Embedded processor lineup for edge deployments. The chips are aimed at vehicles, factories, and autonomous systems. AMD said single-chip designs will support real-time AI workloads in robotics, digital twins, smart cameras, and industrial automation.
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Nvidia is in discussions with Taiwan Semiconductor Manufacturing Co. (TSMC) about expanding production of its H200 AI chips, following large requests from Chinese technology companies for 2026 deliveries, according to people familiar with the talks.
Those sources stated that Chinese firms have placed orders for more than 2 million H200 chips for 2026, far exceeding Nvidia’s current stock of roughly 700,000 units. Work on the additional output is expected to start in the second quarter of 2026, though the extra volume Nvidia wants has not been publicly detailed.
The H200 is viewed by Chinese buyers as a significant step up from the previously available H20 chips, which were restricted, helping to explain the rush to secure supply. Sources said Nvidia has indicated pricing around $27,000 per chip, while an eight-chip module could cost about 1.5 million yuan, and some prospective buyers see that premium as worthwhile given the performance boost.
The order talks also sit under a cloud of policy uncertainty. While the Trump administration recently allowed H200 exports to China under a framework that includes a 25% fee, Chinese authorities have not yet approved imports, and officials are weighing how such sales could affect the country’s push to build up domestic AI chip suppliers, potentially including rules that tie purchases to local alternatives.
Nvidia stated that it continually manages its supply chain and argued that licensed sales to approved Chinese customers would not impact its ability to serve US clients, while TSMC declined to comment. Separately, a report cited by other coverage stated that ByteDance is considering spending approximately 100 billion yuan on Nvidia chips in 2026, contingent upon the success of H200 product sales in China.
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President Donald Trump has ordered the unwinding of a small US semiconductor-related deal, citing national security concerns tied to China. In an executive order dated 2 January 2026, Trump said there was ‘credible evidence’ that HieFo Corporation is controlled by a citizen of the People’s Republic of China, and that the acquisition ‘might take action that threatens to impair the national security of the United States.’
The order bars HieFo from owning any interest in the purchased Emcore assets and gives the company 180 days to divest them (unless the US foreign-investment review committee grants an extension). It also imposes restrictions meant to prevent access to sensitive, non-public technical information while the divestment is pending.
The transaction at the centre of the order was completed on 30 April 2024, and involved Emcore’s digital chips business and indium-phosphide wafer fabrication operations. Emcore previously stated that the sale price was approximately $2.92 million, while other reports described it as a roughly $2.9 million deal that also included the assumption of $1 million in liabilities.
Officials did not publicly specify the risk, but the executive order follows a review by the Committee on Foreign Investment in the United States (CFIUS), the interagency body that screens certain foreign deals for national security implications. HieFo and Emcore had not publicly responded at the time of publication, and the move is likely to reinforce the message that Washington is prepared to intervene, even after a deal has closed, when advanced manufacturing and China-linked ownership intersect.
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South Korea recorded its highest-ever export figures in 2025, driven largely by surging global demand for semiconductors used in AI technologies. Official data shows total exports exceeded $700 billion, marking a year-on-year increase despite ongoing trade pressures and economic uncertainty.
The semiconductor sector led the growth, with exports reaching a record $173.4 billion, up more than 20 per cent from the previous year. Strong demand for high-value memory chips used in AI data centres pushed shipments higher throughout the year, including a sharp rise in December that capped ten consecutive months of growth.
South Korea’s dominance in the chip market is underpinned by global leaders such as Samsung Electronics and SK Hynix, both key suppliers to the AI industry. The government is also doubling down on the sector, with President Lee Jae Myung pledging to triple national spending on AI in a bid to position the country among the world’s top AI powers.
Other export sectors also posted strong results. Car exports climbed to a record $72 billion, while agriculture and cosmetics benefited from sustained global interest in South Korean food, beauty products, and pop culture. These gains helped offset weaker shipments to the United States and China.
Exports to those two major partners declined amid tariffs on steel, automobiles, and machinery, although Seoul secured a reduced US tariff rate late in the year. While officials hailed the export record as a sign of economic resilience, they cautioned that global trade uncertainty and the durability of semiconductor demand could pose challenges ahead.
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Space Forge, a UK company, has successfully activated a compact factory in orbit, proving its onboard furnace can operate at temperatures of around 1,000C. The breakthrough represents a major advance for space-based manufacturing.
The microwave-sized satellite was launched earlier this year and is operated remotely from mission control in Cardiff. Engineers have been monitoring its systems to validate manufacturing processes in space conditions.
Microgravity and vacuum environments allow semiconductor atoms to align more precisely than on Earth. These conditions produce significantly purer materials for electronics used in networks, electric vehicles and aerospace systems.
The company plans to build a larger orbital factory capable of producing materials for thousands of chips. Future missions will also test a heat shield designed to return manufactured products safely to Earth.
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China is closing 2025 with renewed confidence in its economic resilience and growing influence across technology, manufacturing and global markets. Breakthroughs in AI, electric vehicles, green energy and biopharmaceuticals have reshaped perceptions of the country, moving it beyond its long-standing image as the world’s factory towards a centre of innovation.
Despite trade tensions with the United States and ongoing challenges in property and consumer spending, China is expected to meet its 5% growth target for the year. Exports remained robust as firms diversified away from reliance on the US market, while a temporary trade truce eased pressure on global supply chains. Competition with Washington is increasingly shifting from tariffs to technology leadership in areas such as AI, advanced chips and biotechnology.
AI emerged as a defining theme, with Chinese companies pushing large language models into widespread industrial and consumer use. Government-backed initiatives are accelerating integration across manufacturing, transport and healthcare, while tighter rules aim to address risks such as deepfakes and data security.
At the same time, Chinese electric vehicle manufacturers expanded rapidly overseas, and domestic sales of new energy vehicles surpassed those of traditional cars for the first time.
Capital markets and global outreach also strengthened China’s position. Hong Kong reclaimed its status as the world’s largest IPO market, while Shanghai advanced its role as a financial and fintech hub. Looking to 2026, analysts expect China’s growth story to depend less on volume expansion and more on technological competitiveness, global integration and the ability to navigate a more fragmented geopolitical landscape.
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Spending on chips and AI is expected to nearly quadruple to ¥1.23 trillion ($7.9 billion), accounting for the majority of the ministry’s ¥3.07 trillion budget, a 50% increase from last year. The budget, approved by Prime Minister Sanae Takaichi’s Cabinet, will be debated in parliament early next year.
The funding boost reflects Japan’s push to strengthen its position in frontier technologies amid global competition with the US and China. The government will fund most of the additional support through regular budgets, ensuring more stable backing for semiconductor and AI development.
Key initiatives include ¥150 billion for chip venture Rapidus and ¥387.3 billion for domestic foundation AI models, data infrastructure, and ‘physical AI’ for robotics and machinery control.
The budget also allocates ¥5 billion for critical minerals and ¥122 billion for decarbonisation, including next-generation nuclear power. Special bonds worth ¥1.78 trillion will also support Japanese investment in the US, reinforcing the trade agreement between the two countries.
The increase in funding demonstrates Japan’s strategic focus on achieving technological self-sufficiency and enhancing global competitiveness in emerging industries, thereby ensuring long-term support for innovation and critical infrastructure.
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Groq has signed a non-exclusive licensing agreement with Nvidia to share its inference technology, aiming to make high-performance, cost-efficient AI processing more widely accessible.
Groq’s founder, Jonathan Ross, president Sunny Madra, and other team members will join Nvidia to help develop and scale the licensed technology. Despite the collaboration, Groq will remain an independent company, with Simon Edwards taking over as Chief Executive Officer.
Operations of GroqCloud will continue without interruption, ensuring ongoing services for existing customers. The agreement highlights a growing trend of partnerships in the AI sector, combining innovation with broader access to advanced processing capabilities.
The partnership could speed up AI inference adoption, offering companies more scalable and cost-effective options for deploying AI workloads. Analysts suggest such collaborations are likely to drive competition and innovation in the rapidly evolving AI hardware and software market.
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SK Hynix has urged the South Korean government to relax fair trade rules to allow the creation of a special-purpose company for raising funds for significant investments. The move comes as the semiconductor firm faces high capital demands amid the global AI boom.
Currently, SK hynix, a second-tier subsidiary of SK Group through SK Square, must retain full ownership when establishing third-tier subsidiaries. The government pledged to cut the ownership requirement to 50 percent, giving chipmakers more flexibility in funding projects.
The company highlighted the rising costs of advanced facilities, noting that a cleanroom at the Yongin semiconductor cluster in 2019 required 7.5 trillion won ($5.14 billion), while the new M15X fabrication plant in 2025 cost around 20 trillion won.
The size and long-term nature of modern semiconductor investments increasingly strain existing methods for raising funds.
SK hynix said letting subsidiaries partner with external investors would ease financial pressure and improve corporate health. The company added that regulatory flexibility is crucial for sustaining investment and competitiveness in a sector marked by high volatility.
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