Semiconductors

Nvidia ramps up AI push with new Taiwan plans

Nvidia CEO Jensen Huang has urged Taiwan to embrace agentic AI and robotics to tackle its ongoing labour shortage.

Speaking before his departure from Taipei after a week-long visit, Huang said 2025 would be a ‘very exciting’ year for AI, as the technology now possesses the ability to ‘reason’ and carry out step-by-step problem-solving never encountered before.

The new wave of agentic AI, he explained, could assist people with various workplace and everyday tasks.

Huang added that Taiwan, despite being a hub of innovation, faces a lack of manpower. ‘Now with AI and robots, Taiwan can expand its opportunity,’ he said.

He also expressed enthusiasm over the production ramp-up of Blackwell, Nvidia’s latest GPU architecture built for AI workloads, noting that partners across Taiwan are already in full swing.

Huang’s trip included meetings with local partners and a keynote at Computex Taipei, where he unveiled Nvidia’s new Taiwan office and plans for the country’s first large-scale AI supercomputer.

In a TV interview, Huang urged the Taiwanese government to invest more in energy infrastructure to support the growing AI sector. He warned that the energy demands of AI development could exceed 100 megawatts in the near future, stressing that energy availability is the key limitation.

Taiwan’s expanding AI ecosystem — from chip plants to educational institutions — would require substantial support to thrive, he said, pledging to return for Chinese New Year.

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TSMC threatens to scale back Arizona fabs over US chip tariffs

TSMC has warned the US government that it may halt or scale back plans to expand its semiconductor manufacturing in Arizona if new tariffs on foreign-made chips are introduced. However, the entire plan now hangs in the balance, depending on how the White House proceeds.

The company, which supplies key US tech firms like Apple and Nvidia, says such tariffs would make production costly and risk reducing demand. TSMC currently operates one plant in Arizona, with two more under construction and three additional facilities planned.

The warning comes as the Biden administration considers imposing tariffs on imported semiconductors. TSMC argues that firms already investing heavily in US chip production, like itself, should be exempt. In a letter to the US Commerce Department, it cited risks to customer demand and its own business strategy.

Arizona is set to become central to TSMC’s most advanced chipmaking, with upcoming 2nm and 1.6nm chips produced using cutting-edge technology. These new fabs could make up 30% of the company’s future high-end capacity.

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Microsoft confirms BitLocker issues after update

Microsoft has confirmed that the May 2025 Windows 10 update is causing issues on systems with certain Intel processors. Affected users have reported unexpected BitLocker recovery screens and repeated repair loops after installing the update.

Microsoft has traced the issue to Intel Trusted Execution Technology on 10th generation or newer vPro chips. When the update is installed, the system process lsass.exe may crash, triggering Automatic Repair and prompting BitLocker recovery key entry.

Some devices repeatedly attempt to install the update, fail, and then roll back, while others enter an error loop requiring manual intervention.

Microsoft has acknowledged the issue on its Windows Release Health page and is urgently working on a fix, though no timeframe has been given.

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AI at 45W: Neuchips showcases energy-saving chips for LLMs

As global energy demand surges alongside AI growth, Neuchips is stepping up with energy-efficient solutions that deliver high performance while reducing power consumption.

The company will showcase its latest innovations at COMPUTEX 2025, including its Viper series AI accelerator cards, capable of running a 14-billion parameter model at just 45 watts — roughly the same power as a standard light bulb.

The announcement follows an International Energy Agency (IEA) report projecting that electricity demand from AI-powered data centers will more than quadruple by 2030. Neuchips CEO Ken Lau emphasised that power-efficient AI is now a necessity, not a luxury.

Neuchips’ hardware supports models like Mistral Small 3, Llama 3.3, and Gemma 3, offering offline LLM inference that enhances data privacy. Its solutions are compatible with both Intel and AMD CPUs, and run on Ubuntu and Windows.

The company is expanding its reach through several key partnerships. With Taiwan’s National Center for High-performance Computing (NCHC), Neuchips is delivering energy-efficient AI to the cloud while ensuring data security and cost efficiency.

Collaborating with MAPLE LEAF INFORMATION AND TECHNOLOGY and Vecow, the company offers compact AI systems that operate without requiring additional power infrastructure.

In partnership with GSH’s ShareGuru SQLPilot, Neuchips is showcasing advanced agentic AI applications for business intelligence and customer service. Additionally, through integration with myLLM’s myPDA platform, Neuchips is enabling hybrid cloud-edge AI deployments using its hardware.

With its efficient AI acceleration chips and strategic collaborations, Neuchips is advancing sustainable AI across edge and data center environments.

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UAE to host world’s biggest AI site outside the US

The United Arab Emirates will build the largest artificial intelligence infrastructure outside the United States, following a high-level meeting between UAE President Sheikh Mohamed bin Zayed Al Nahyan and President Trump in Abu Dhabi.

It will be constructed by G42 and involve US firms under the newly established US-UAE AI Acceleration Partnership. Spanning 10 square miles in Abu Dhabi, the AI campus will run on a mix of nuclear, solar and gas energy to limit emissions and will feature a dedicated science park to drive innovation.

A 5GW capacity will enable it to serve half the global population, offering US cloud providers a vital regional hub. As part of the agreement, the UAE has pledged to align its national security rules with US standards, including strict technology safeguards and tighter access controls for computing power.

The UAE may also be permitted to purchase up to 500,000 Nvidia AI chips annually starting this year.

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Trump seals $200 billion UAE AI deal

US President Donald Trump has secured €179 billion ($200 billion) in deals with the United Arab Emirates, capping his Persian Gulf tour with plans for the world’s largest AI campus outside the US.

Located in Abu Dhabi and spanning 10 square miles, the facility will be built by UAE-based firm G42 in partnership with American companies, aimed at boosting regional computing capacity while supporting the Global South.

Instead of focusing solely on energy, Trump’s trip saw investments broaden to include AI, aviation, and industrial sectors. In total, his visit to the Gulf states yielded €1.3 trillion ($1.4 trillion) in investment pledges, including major agreements with Saudi Arabia and Qatar.

Gulf leaders are using AI as a vehicle to diversify their economies, while Trump is turning foreign capital into support for US manufacturing and tech exports.

The UAE deal includes plans to import up to 500,000 Nvidia H100 AI chips annually through 2027, with 20% allocated to G42. US officials, however, continue to express concern over potential Chinese access to advanced American technology.

The US Department of Commerce insists that strict safeguards are in place to prevent any misuse or diversion of AI hardware.

Other agreements include a $14.5 billion aircraft purchase by Etihad Airways from Boeing and GE Aerospace, a $60 billion energy partnership with ADNOC, and aluminium and gallium production deals with Emirates Global Aluminum.

Trump’s push to expand American business influence in the Gulf appears to be paying off, instead of letting China or Europe dominate future AI and industrial markets.

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US scraps Biden AI chip export rule

The US Department of Commerce has scrapped the Biden administration’s Artificial Intelligence Diffusion Rule just days before it was due to come into force.

Introduced in January, the rule would have restricted the export of US-made AI chips to many countries for the first time, while reinforcing existing controls.

Rather than enforcing broad restrictions, the Department now intends to pursue direct negotiations with individual countries.

The original rule divided the world into three tiers, with countries like Japan and South Korea spared restrictions, middle-tier countries such as Mexico and Portugal facing new limits, and nations like China and Russia subject to tighter controls.

According to Bloomberg, a replacement rule is expected at a later date.

Instead of issuing immediate new regulations, officials released industry guidance warning companies against using Huawei’s Ascend AI chips and highlighted the risks of allowing US chips to train AI in China.

Secretary Jeffrey Kessler criticised the Biden-era policy, promising a ‘bold, inclusive’ AI strategy that works with allies while limiting access for adversaries.

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US senator calls for AI chip tracking to protect national security

A new bill introduced by Republican Senator Tom Cotton aims to bolster national security by requiring location verification features on American-made AI chips.

The Chip Security Act, announced on 9 May, would ensure such technology does not end up in the hands of foreign adversaries, particularly China.

Cotton urged the US Departments of Commerce and Defence to assess how tracking mechanisms could help detect and prevent illegal chip exports.

He also called for stricter obligations for companies exporting AI chips, including notifying authorities if devices are tampered with or redirected from their original destinations.

The proposed legislation follows a policy shift announced on 7 May by the Trump administration to ease restrictions on AI chip exports previously imposed under President Biden.

Cotton argued that better security practices could allow US firms to expand globally without undermining the country’s technological edge.

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Scale AI expands into Saudi Arabia and UAE

Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion.

The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move.

Trevor Thompson, the company’s global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China.

Gulf states like Saudi Arabia have been investing heavily in tech startups, data centres and computing infrastructure, urging companies to set up local operations and create regional jobs. Salesforce, for instance, has already begun hiring for a $500 million investment in the kingdom.

Founded in 2016, Scale AI provides data-labelling services essential for training AI products, relying on a vast network of contract workers. Its clients include OpenAI and Microsoft.

The company hit a $13.8 billion valuation last year after a $1 billion funding round backed by Amazon, Meta and others.

In 2024, it generated about $870 million in revenue and is reportedly in talks for a deal that could nearly double its value.

Scale AI is also strengthening its regional ties. In February, it signed a five-year agreement with Qatar to enhance public services, followed by a partnership with Abu Dhabi-based Inception in March.

The news coincides with former President Donald Trump’s upcoming visit to Saudi Arabia, where his team is considering lifting export controls on advanced AI chips, potentially boosting the Gulf’s access to cutting-edge technology.

Notably, Scale AI’s former managing director, Michael Kratsios, now advises Trump on tech matters.

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Apple prepares low-power chip for smart eyewear

Apple is developing custom chips to power future smart glasses, AI servers, and new Mac models, according to a report by Bloomberg News.

The chip for the glasses is being designed with a focus on energy efficiency and advanced camera handling, and production could begin as early as late 2026 or 2027.

Built on technology similar to that of the Apple Watch instead of the iPhone, the chip is expected to consume significantly less power.

It will be manufactured by Taiwan’s TSMC and tailored to manage multiple cameras efficiently, potentially positioning Apple as a rival to Meta’s Ray-Ban smart glasses.

At the same time, Apple is working on new Mac processors—possibly branded as the M6 and M7—as well as AI server chips designed to support the Apple Intelligence platform. This system enables features like notification summaries, email rewriting, and access to OpenAI’s ChatGPT.

These projects come as Apple expands its silicon strategy. Earlier in 2025, the company unveiled its first custom modem for iPhones, and it plans to source over 19 billion chips from the US this year instead of depending on China, while also boosting production in India.

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