Semiconductors

South Korea and Saudi Arabia deepen AI and startup partnership

South Korea and Saudi Arabia have agreed to deepen cooperation on startups, AI and digital transformation following talks in Seoul between South Korean Vice Minister of the Ministry of SMEs and Startups (MSS) Roh Yong-Seok and Saudi Minister of Communications and Information Technology Abdullah Alswaha.

The discussions focused on expanding collaboration in AI, venture investment, digital transformation and innovative startups.

A central topic was a proposed joint investment fund, currently under discussion between Korea Venture Investment and Saudi Arabia’s Riyadh Valley Company, which would co-invest in deep-tech companies developing strategic technologies such as AI and semiconductors.

The Korean government said it hopes to launch the fund before the end of 2026.

The ministers also discussed accelerating the digital transformation of small and medium-sized enterprises through wider AI adoption. South Korea outlined planned legislation to encourage AI deployment among smaller businesses, while inviting greater Saudi investment in Korean companies developing AI and other frontier technologies.

The meeting also highlighted broader efforts to strengthen bilateral startup ecosystems. South Korea pointed to initiatives including its Global Business Center in Riyadh and participation in startup events such as COMEUP and Saudi Arabia’s BIBAN. Both governments agreed to encourage greater investment, business exchanges and market access for companies in both countries.

Why does it matter?

The partnership illustrates how international AI cooperation is increasingly centred on investment, startup ecosystems and industrial policy rather than research alone. By combining Saudi capital with South Korea’s technology sector, both countries aim to accelerate the commercial development of strategic technologies such as AI and semiconductors.

The discussions also reflect a broader trend towards linking AI adoption with SME competitiveness and cross-border venture investment. Such partnerships could strengthen innovation ecosystems while supporting national ambitions for digital transformation and economic diversification.

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Germany and France strengthen AI safety and digital sovereignty cooperation

Germany and France have agreed to deepen cooperation on AI, AI safety and digital sovereignty following the Franco-German Ministerial Council, reinforcing their joint role in shaping Europe’s technology agenda.

The partnership centres on closer collaboration between France’s AI safety institute, INESIA, and Germany’s newly established AI Safety and Security Institute to strengthen the evaluation and secure deployment of advanced AI models.

The two governments will coordinate AI safety research, institutional expertise and risk assessments while supporting implementation of the European AI Office’s work under the AI Act. They also reaffirmed their commitment to advancing AI safety cooperation through the EU, NATO and the United Nations, positioning it as a shared strategic priority.

Beyond AI safety, Germany and France agreed to strengthen digital sovereignty by jointly shaping the forthcoming EU Tech Sovereignty Package, building on their common definition of digital sovereignty presented at VivaTech 2026.

They also called on the European Commission to reinforce the Digital Fitness Check, deepen cooperation on public sector modernisation and promote a coordinated European spectrum policy to support secure and competitive satellite communications.

The agreement builds on earlier cooperation under the Treaty of Aachen and the Franco-German economic and technological sovereignty agenda. By strengthening collaboration on AI governance, digital infrastructure and strategic technologies, both countries aim to reinforce Europe’s technological resilience and influence over global AI governance.

Why does it matter?

The agreement reflects a broader European effort to strengthen technological sovereignty by combining AI governance, industrial policy and security cooperation. Rather than treating AI safety as a purely technical issue, Germany and France are positioning it as part of Europe’s wider strategy for digital resilience and strategic autonomy.

By coordinating national AI safety institutes while supporting EU institutions such as the AI Office, the partnership could also contribute to a more coherent European approach to evaluating advanced AI systems and shaping international AI governance.

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South Korea strengthens investigations into AI and semiconductor technology leaks

South Korea has restructured its specialised intellectual property investigation system to strengthen efforts against leaks of advanced technologies, including semiconductors and AI, amid growing concerns over economic security.

The reforms establish new investigative and analytical divisions while expanding the technology police force from 27 to 61 officers.

A new Technology Divulgence Police Division will investigate trade secret theft and the leakage of advanced technologies. Its 21 investigators will include specialists in electrical, chemical and mechanical engineering alongside patent examiners, attorneys and other technical experts.

The government also plans to expand investigative authority to cover violations involving National Core Technologies and National High-Tech Strategic Technologies.

A separate Intellectual Property Protection Analysis Division will use patent data and other intelligence to identify technologies, companies and institutions at high risk of technology leakage.

It will also cooperate with businesses, research organisations and law enforcement agencies to detect warning signs, support intelligence-led investigations and strengthen security awareness, particularly among smaller companies.

The restructuring creates an Intellectual Property Protection Standards Division responsible for investigative procedures, oversight and human rights safeguards.

Planned reforms in South Korea include clearer rules for compulsory investigations, external review through a Criminal Investigation Review Committee, stronger access to legal counsel, wider use of video recording and regular updates for parties involved in investigations.

Why does it matter?

As geopolitical competition increasingly centres on semiconductors, AI and other strategic technologies, governments are treating intellectual property protection as a matter of economic and national security. South Korea’s reforms aim to strengthen its ability to detect, investigate and prevent technology leakage before commercially valuable innovations are transferred abroad.

The restructuring also reflects a broader trend towards combining specialised technical expertise with intelligence-led enforcement and stronger procedural safeguards. This approach seeks to improve both the effectiveness and accountability of investigations involving advanced technologies.

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Japan and NVIDIA launch national AI infrastructure

Japan is moving to build what NVIDIA describes as the world’s first national AI infrastructure for physical AI, in partnership with Noetra and supported by government and industry leaders.

The initiative is designed to strengthen Japan’s AI ecosystem across manufacturing, logistics, healthcare, telecommunications and other industrial sectors.

Noetra will establish an NVIDIA Vera Rubin AI factory using 13,750 NVIDIA Vera CPUs and 27,500 NVIDIA Rubin GPUs.

NVIDIA said the facility will deliver 140 megawatts of data-centre capacity and will be based on its DSX platform.

The AI factory will support the development of open multimodal foundation models for AI agents, digital twins, robotics and other physical AI applications.

It will provide the computing foundation for Japan’s FRONTia Project, launched by the Ministry of Economy, Trade and Industry.

The project aims to combine Japan’s manufacturing expertise, real-world industrial data and international technology partnerships to develop reliable multimodal foundation models for robotics and physical AI.

Pretrained weights from Noetra’s multimodal foundation models will be made available to domestic model developers and enterprises, alongside NVIDIA software tools for agentic AI, robotics and model development.

NVIDIA said the infrastructure will support Japan’s wider AI robotics strategy, which aims to capture more than 30% of the global AI robotics market by 2040.

As the AI factory expands, it is expected to support trillion-parameter-scale model training and give organisations in Japan access to advanced AI computing capacity.

Why does it matter?

The initiative shows how national AI strategies are increasingly tied to compute infrastructure, industrial data and sector-specific foundation models. For Japan, physical AI connects AI policy with manufacturing, robotics, logistics and healthcare, areas where domestic expertise and trusted infrastructure could become strategic advantages. The project also highlights the growing role of private chip and platform providers in national AI capacity, raising longer-term questions about sovereignty, dependency and who controls the infrastructure behind industrial AI.

India approves €13 billion Semicon 2.0 strategy

The Government of India has approved Semicon 2.0, a long-term strategy worth Rs. 1.275 trillion (approximately €13 billion) to accelerate the development of the country’s semiconductor design and manufacturing ecosystem.

Building on Semicon 1.0, the programme aims to strengthen India’s position across the semiconductor value chain through sustained public investment, industrial incentives and workforce development.

The strategy is organised around six pillars, such as semiconductor design, manufacturing equipment and materials, fabrication facilities, advanced packaging technologies, research and development, and talent development.

India plans to expand chip design capabilities, attract additional fabrication plants, encourage investment in ATMP and OSAT facilities, strengthen domestic production of critical materials and manufacturing equipment, and support the development of advanced semiconductor technologies.

The government also highlighted progress under Semicon 1.0. Twelve semiconductor manufacturing facilities have been approved with cumulative investments exceeding Rs. 1.64 trillion, covering silicon fabrication, silicon carbide, gallium nitride display manufacturing and advanced packaging. Three facilities have already entered commercial production, while additional projects are expected to become operational during 2026.

On the design side, 24 semiconductor startups have received financial support and 105 have gained access to advanced chip design tools to develop technologies for AI, IoT, telecommunications, satellite communications and smart devices.

According to the government, Semicon 2.0 is intended to strengthen India’s technological sovereignty, improve semiconductor supply chain resilience and establish the country as a globally competitive hub for semiconductor innovation, manufacturing and intellectual property.

Why does it matter?

Semicon 2.0 reflects the growing use of industrial policy to strengthen domestic semiconductor ecosystems amid global competition for advanced chip manufacturing. By investing across design, production, research and skills, India is seeking to reduce external dependencies while building long-term technological capacity.

The strategy also demonstrates that semiconductor competitiveness increasingly depends on developing the entire value chain rather than attracting fabrication plants alone. If successfully implemented, the programme could strengthen India’s position in global semiconductor supply chains while supporting wider ambitions in AI, telecommunications and advanced manufacturing.

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EU and India strengthen technology partnership through TTC

The European Union and India have strengthened their strategic partnership at the third meeting of the EU-India Trade and Technology Council (TTC) in Brussels, agreeing to deepen cooperation on advanced technologies, trade and resilient supply chains.

Both sides reaffirmed the TTC as their main platform for cooperation on technology, economic security and innovation, while agreeing to upgrade the framework by the end of 2026 under the Joint EU-India Comprehensive Strategic Agenda.

The meeting produced several concrete initiatives.

The EU and India agreed to begin formal negotiations on India’s association with Horizon Europe, establish the first EU-India Innovation Hub focused on electric vehicle charging technologies, and launch a startup partnership supporting deep tech and clean technology companies. They also expanded cooperation on semiconductors, AI, quantum technologies, high-performance computing, 6G and resilient supply chains covering clean energy technologies, pharmaceuticals and agri-food.

On digital technologies, the partners agreed to strengthen cooperation on AI innovation, including healthcare applications, and collaborate on high-performance computing for climate research, natural hazards and bioinformatics. They also committed to advancing interoperability between digital trust services, including digital wallets, building on their earlier agreement on electronic signatures and seals.

The meeting also reaffirmed the strategic importance of the broader EU-India relationship, including ongoing negotiations on a Free Trade Agreement, investment protection and geographical indications.

Ministers instructed TTC working groups to prioritise implementation ahead of the next ministerial meeting.

Why does it matter?

The EU and India are increasingly treating technology as a strategic pillar of their relationship alongside trade and investment. Expanding cooperation on AI, semiconductors, research and digital infrastructure reflects shared interests in strengthening technological competitiveness and reducing vulnerabilities in critical supply chains.

The agreement also illustrates how trade partnerships are evolving into broader technology partnerships. By linking research, innovation, standards and digital trust, the TTC provides a framework that could deepen long-term cooperation while supporting both sides’ economic security and strategic autonomy.

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European Commission approves €659 million for four German chip projects

The European Commission has approved €659 million in German State aid to support the construction of four first-of-a-kind semiconductor manufacturing facilities, strengthening Europe’s chip supply chain and advancing the objectives of the European Chips Act and the proposed Chips Act 2.0.

The projects aim to expand manufacturing capacity across several strategic segments of the semiconductor value chain while reducing the EU’s dependence on external suppliers.

The approved funding will support four companies across Germany.

Element 3-5 will receive €353 million to manufacture advanced silicon carbide epi wafers in North Rhine-Westphalia, while Vishay will receive €214 million to produce next-generation power MOSFET semiconductors in Schleswig-Holstein.

KLA will receive €74.4 million to manufacture advanced semiconductor metrology equipment in Hesse, and KETEK will receive €17.9 million to establish new production lines for specialised detector chips in Bavaria. The projects are jointly financed by the German federal government and regional authorities.

The Commission concluded that all four facilities qualify as first-of-a-kind manufacturing projects in Europe and are necessary to strengthen the resilience of the European semiconductor ecosystem.

In return for the public support, the companies committed to collaborating with universities, research institutions, startups and SMEs, prioritising customer orders during supply shortages, investing in specialised workforce training and sharing project-related profits with Germany if returns exceed agreed expectations.

The decision forms part of the EU’s broader semiconductor strategy. The Commission noted that the approvals represent the fifteenth to eighteenth projects authorised under the European Chips Act, bringing total approved public support across Member States to around €14.2 billion.

The projects also complement the proposed Chips Act 2.0, which aims to further expand Europe’s semiconductor manufacturing capacity and reduce strategic technological dependencies.

Why does it matter?

Semiconductors underpin nearly every modern digital technology, from AI and electric vehicles to telecommunications and industrial automation. Expanding Europe’s domestic manufacturing capacity strengthens supply chain resilience, supports technological sovereignty and reinforces the EU’s competitiveness in one of the world’s most strategic industries.

The decision also demonstrates how the EU is increasingly using State aid to accelerate investment in strategically important technologies. By supporting first-of-a-kind manufacturing facilities, the Commission aims to strengthen Europe’s long-term industrial resilience while reducing reliance on overseas semiconductor production.

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South Korea links water security to semiconductor expansion

South Korea’s Ministry of Climate, Energy and Environment has reviewed plans to secure water supplies for the new Honam semiconductor industrial complex, highlighting the growing importance of water infrastructure for advanced chip manufacturing.

First Vice Minister Kum Hanseung inspected Naju Lake, Jangheung Dam, Boseong River Dam and Juam Dam as part of a review of the infrastructure needed to support the project and coordination between relevant organisations.

The government aims to secure 650,000 tonnes of industrial water per day for the semiconductor complex. Plans include using surplus dam capacity, repurposing part of the water currently allocated for power generation and making use of unused water resources.

Officials also reviewed measures to safeguard agricultural water supplies while expanding industrial capacity. Proposed infrastructure includes new pumping stations and pipelines connected to the Yeongsan River, alongside consultations with farmers to minimise disruption.

The government said it will work with the Korea Water Resources Corporation, Korea Hydro & Nuclear Power and the Korea Rural Community Corporation to ensure reliable water supplies, including during periods of drought, while supporting the growth of the Honam semiconductor industry.

Why does it matter?

Reliable access to water is essential for semiconductor manufacturing, where large volumes are needed for wafer fabrication and equipment cleaning. As countries invest in expanding domestic chip production, water infrastructure is becoming an increasingly strategic component of industrial policy alongside energy, transport and skilled labour.

The project also illustrates the growing need to balance industrial development with environmental sustainability and competing demands for natural resources. Coordinating water management across industry, agriculture and local communities will be critical as governments expand advanced manufacturing capacity.

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Intel invests €5 billion in Ireland chip expansion

Intel has announced a €5 billion investment to expand semiconductor manufacturing at its Leixlip campus in Ireland, increasing production capacity for processors used in AI and high-performance computing.

The investment is intended to meet growing demand for AI and high-performance computing by expanding production of Intel Xeon 6 and next-generation Intel Xeon processors built on the Intel 3 process node. Intel said the project will also support research and development while making greater use of existing cleanroom capacity.

Construction began earlier this year and is expected to create permanent high-tech jobs while supporting specialised construction and equipment installation work. Planned upgrades also include expanding the campus’s automated track system to improve manufacturing efficiency.

Intel said the investment will strengthen Europe’s semiconductor supply chain and support its foundry customers. The company added that the expansion builds on more than €30 billion invested in Ireland since 1989, reinforcing the country’s position as one of Europe’s leading semiconductor manufacturing hubs.

Why does it matter?

The investment reflects continued growth in demand for processors supporting AI and high-performance computing, as semiconductor manufacturers expand existing facilities to increase production capacity. It also highlights the strategic importance of advanced chip manufacturing as governments and industry seek to strengthen resilient semiconductor supply chains.

For Europe, the expansion supports wider efforts to increase domestic semiconductor production and reduce dependence on overseas manufacturing. Investments in established fabrication sites such as Leixlip could play an important role in strengthening the region’s long-term technological competitiveness and digital sovereignty.

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