Attorneys for Arm and Qualcomm are clashing in a US federal court this week over a dispute that could shape the future of the chip industry. The case centres on whether Qualcomm’s acquisition of Nuvia in 2021 for $1.4 billion allowed the transfer of computing core designs that build on Arm’s architecture. Arm, whose technology dominates the smartphone market and is increasingly used in laptops, argues that Nuvia’s designs are derivatives of its intellectual property and fall under licensing restrictions.
At the heart of the trial is the testimony of Gerard Williams, a former Apple executive who founded Nuvia. While Arm’s attorneys contend that Nuvia’s work is derived from Arm’s technology, Williams insisted the influence of Arm’s architecture was minimal, estimating it made up ‘one percent or less’ of Nuvia’s final designs. Qualcomm’s lawyers are defending their right to use Nuvia’s cores, highlighting how the company customises and extends Arm’s technology.
The outcome of this trial could impact Qualcomm’s ambitions in the laptop market, where it partners with Microsoft to compete against Apple’s custom chips. With potential losses of $50 million annually in licensing fees for Arm at stake, both companies are vying for control over the boundaries of intellectual property rights. A verdict could come as early as this week, and Qualcomm’s CEO Cristiano Amon may soon take the stand.
The US Commerce Department has finalised $406 million in grants to Taiwan’s GlobalWafers to boost silicon wafer production in Texas and Missouri. These funds will support the first large-scale US production of 300-mm wafers, critical components in advanced semiconductors. This initiative is part of the Biden administration’s effort to strengthen the domestic supply chain for chips.
The grant will aid GlobalWafers’ nearly $4 billion investment in building new manufacturing facilities, creating 1,700 construction jobs and 880 permanent manufacturing positions. The company plans to produce wafers for cutting-edge, mature-node, and memory chips in Sherman, Texas, and wafers for defence and aerospace chips in St. Peters, Missouri.
GlobalWafers’ CEO Doris Hsu expressed enthusiasm about collaborating with US-based customers for years to come. Currently, over 80% of the global 300-mm silicon wafer market is controlled by just five companies, with most production concentrated in East Asia.
This funding is part of the $52.7 billion CHIPS and Science Act, aimed at expanding domestic semiconductor manufacturing. Recent grants include $6.165 billion for Micron Technology and significant subsidies for Intel, TSMC, and GlobalFoundries.
Apple plans to introduce its own chips for Bluetooth and Wi-Fi in devices starting in 2025, phasing out components currently supplied by Broadcom. The custom chip, code-named Proxima, has been in development for years and will debut in iPhones and smart home devices. Taiwan Semiconductor Manufacturing Company will handle production.
The shift aligns with Apple‘s broader strategy to reduce reliance on third-party suppliers. Alongside Proxima, Apple is also developing cellular modem chips to replace Qualcomm components, with plans to integrate both systems in the future.
In parallel, Apple is working on a server chip, internally called Baltra, to support AI processing. This move highlights the company’s efforts to reduce dependence on Nvidia‘s costly processors, which remain in high demand for AI applications.
The US Commerce Department announced a preliminary deal to provide German auto supplier Bosch with up to $225 million in subsidies to produce silicon carbide (SiC) power semiconductors in California. The funding supports Bosch’s $1.9 billion transformation of its Roseville facility, with an additional $350 million in proposed government loans. This effort draws from the $52.7 billion fund established in 2022 to bolster US semiconductor production and research.
Bosch plans to begin manufacturing SiC chips, critical for electric vehicles, telecommunications, and defence, by 2026. These chips, known for their energy efficiency, play a vital role in improving electric vehicle performance and charging capabilities. The Commerce Department estimates the project could represent over 40% of US-based SiC manufacturing capacity once fully operational.
The investment aligns with Bosch’s strategy following its 2023 acquisition of TSI Semiconductors and highlights the growing importance of domestic chip production after pandemic-related supply chain disruptions. Representative Doris Matsui, who helped craft the semiconductor funding law, praised the move as a step toward advancing clean energy technologies and electric vehicle development in the US.
Singaporean asset manager Keppel and Vietnam’s Sovico Group are in discussions to develop undersea fibre-optic cables aimed at boosting Southeast Asia’s data centre industry. The potential $150 million project would directly link Vietnam with Singapore, a critical regional hub for data infrastructure. However, talks remain fluid, with Keppel reportedly favouring a larger consortium-led project extending from Singapore to Japan, while Sovico supports a direct connection.
The discussions highlight Southeast Asia’s growing demand for AI services and internet capacity, with Vietnam planning 10 new submarine cables by 2030. These cables are also a focal point in the ongoing US-China tech rivalry, with the United States lobbying against the involvement of Chinese contractors, citing security concerns. US officials have reportedly briefed Sovico and other stakeholders on the risks of working with China’s HMN Technologies.
Vietnam, with a rapidly growing digital economy and a population nearing 100 million, currently relies on five undersea cable branches for global connectivity. Expanding its cable infrastructure is seen as key to establishing itself as a regional data hub, despite challenges like power shortages and stringent data regulations. Keppel and Sovico’s efforts, along with other planned projects, signal significant investment in the region’s digital future.
Nvidia has added around 200 employees in China this year, boosting its research capabilities and focusing on autonomous driving technologies, Bloomberg News reports. The company now employs nearly 600 people in Beijing, with a recently opened office in the Zhongguancun tech hub, according to sources familiar with the matter.
Despite its expansion, Nvidia faces headwinds in China, including an ongoing investigation into alleged violations of the country’s anti-monopoly laws. This probe is widely interpreted as a response to US restrictions on China’s chip sector. Nvidia declined to comment on the situation.
China contributed about 17% of Nvidia’s revenue in the year ending January, down from 26% two years earlier. Globally, Nvidia employs around 29,600 people across 36 countries, as detailed in its February 2024 filing.
Apple is teaming up with Broadcom to develop its first server chip dedicated to artificial intelligence processing. Expected to enter mass production by 2026, the chip, code-named Baltra, represents Apple’s latest venture into custom hardware aimed at reducing reliance on Nvidia’s high-cost and supply-constrained processors.
The chip will use Taiwan Semiconductor Manufacturing Co.’s N3P process, highlighting Apple’s commitment to furthering manufacturing technology. Broadcom, already benefiting from AI-driven growth, saw its shares climb 5% following the announcement.
This partnership builds on Apple’s recent successes in chip growth, including its M-series processors for Mac devices. It also echoes a broader trend among tech giants like Google, which have pursued custom AI chips to enhance their services. With the global market for custom chips projected to reach $45 billion by 2028, Apple’s move furthers its role as a leader in the AI tech industry.
STMicroelectronics, a major European semiconductor firm, has introduced the STM32N6 series, its first microcontrollers designed for edge AI and machine learning. The new release aims to enhance applications in consumer and industrial electronics.
The STM32N6 series supports local image and audio processing, eliminating the need for larger computers or data centres. Devices such as cars, factories, and wearables are expected to benefit from faster and more efficient data handling.
Edge AI operates on principles similar to generative AI, but with reduced computational demands tailored to specific local tasks. By processing data on-site, the technology reduces electricity usage and avoids the delays associated with sending data to remote centres.
STMicroelectronics’ innovation underscores the growing importance of energy-efficient AI solutions in modern electronics. The development reflects a shift towards integrating AI more seamlessly into everyday devices.
Morris Chang, the founder of Taiwan Semiconductor Manufacturing Co (TSMC), has criticised Intel’s former CEO Pat Gelsinger for focusing on becoming a contract chipmaker rather than prioritising AI. Speaking at an event to launch his autobiography, Chang suggested that Intel’s strategy under Gelsinger may have lacked direction, noting the company’s struggles in regaining leadership in chip manufacturing.
Gelsinger’s departure earlier this month followed frustrations over slow progress on Intel’s costly foundry initiative. Chang observed that finding a new CEO and strategy would present significant challenges for the company. He also recalled Intel’s historical missteps, such as rejecting an invitation to invest in TSMC during its early years, only to become a key customer later.
Intel’s foundry ambitions led to strained relationships with partners, including TSMC. Chang described Gelsinger as ‘a bit rude’ during his tenure, with reports of lost contracts compounding the company’s struggles. Intel has not commented on these remarks.
Alphabet’s stock jumped 5% on Tuesday after the company unveiled Willow, a groundbreaking chip that addresses a major hurdle in quantum computing. Introduced on Monday, Willow solved a problem in five minutes that would take classical computers longer than the age of the universe. This breakthrough brings quantum computing closer to practical applications in science, medicine, and finance.
Quantum computers, powered by qubits, promise incredible speed but face challenges with error rates that grow with scale. Google’s Willow chip reduces errors exponentially by stringing qubits together in a way that allows for real-time error correction. This innovation marks a significant step toward making quantum computing reliable and commercially viable.
While the technology is still in its infancy, experts believe Willow could drive breakthroughs across industries. Alphabet’s shares, up 25% this year, outpaced market expectations, with investors optimistic about the potential impact of quantum computing on the company’s future. Other tech leaders like Microsoft and Quantinuum are also advancing in the race to commercialise quantum systems.
