Semiconductors

EU launches global digital strategy

The European Union has launched a sweeping international digital strategy to bolster its global tech leadership and secure a human-centric digital transformation. With the digital and AI revolution reshaping economies and societies worldwide, the EU is positioning itself as a reliable partner in building resilient, open, and secure digital ecosystems.

The strategy prioritises collaboration with international partners to scale digital infrastructure, strengthen cybersecurity, and support emerging technologies like AI, quantum computing, and semiconductors while promoting democratic values and human rights in digital governance. The EU will deepen and expand its global network of Digital Partnerships and Dialogues to remain competitive and secure in a fast-changing geopolitical landscape.

These collaborations focus on research, industrial innovation, regulatory cooperation, and secure supply chains, while engaging countries across Africa, Latin America, Asia, and the EU’s own neighbourhood. The strategy also leverages trade instruments and investment frameworks such as the Global Gateway to support secure 5G and 6G networks, submarine cables, and digital public infrastructure, helping partner countries improve connectivity, resilience, and sustainability.

To enhance global digital governance, the EU is pushing for international standards that uphold privacy, security, and openness, and opposing efforts to fragment the internet. It supports inclusive multilateralism, working through institutions like the UN, G7, and OECD to shape rules for the digital age.

With initiatives ranging from AI safety cooperation and e-signature mutual recognition to safeguarding children online and combating disinformation, the EU aims to set the benchmark for ethical and secure digital transformation. At the heart of this vision is the EU Tech Business Offer—a modular, cross-border platform combining technology, capacity-building, and financing.

Through Team Europe and partnerships with industry, the EU seeks to bridge the digital divide, export trusted digital solutions, and foster an interconnected world aligned with European democratic principles. The strategy underscores that in today’s interconnected world, the EU’s prosperity and security hinge on shaping a digital future that is competitive, inclusive, and values-driven.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Chinese tech firms thrive amid US curbs

Nvidia CEO Jensen Huang has raised concerns that US export restrictions are accelerating the growth of Chinese AI firms, making them more competitive. In a recent interview, Huang highlighted that companies like Huawei — long blacklisted by the US — have become ‘formidable’ rivals.

The restrictions have hit Nvidia hard, with the company projecting an $8 billion revenue loss this quarter due to the limited access to the Chinese market, historically its largest for chips. The Biden administration’s AI diffusion rule, aimed at controlling the spread of advanced AI technologies, had already drawn criticism from Huang before being partially rolled back by the Trump administration in May.

Yet, Nvidia still faces tough restrictions, including a ban on selling even its downgraded H20 chip to China. The company was recently notified that it would need a special license to export the chip, leaving it with no viable alternative for the Chinese market.

Huang warned that efforts to keep cutting-edge AI tech out of China have largely backfired, as Chinese firms are finding workarounds and quickly catching up.

‘They’re doubling or quadrupling capabilities every year,’ he noted, stressing that the performance of Huawei’s latest AI chip now rivals Nvidia’s once-leading H200.

Despite Nvidia’s strong recent performance, Huang emphasised the long-term importance of re-engaging with China, home to the world’s largest community of AI researchers. He urged US policymakers to reconsider their approach, advocating for broader access to American AI technology to maintain leadership and influence in the global AI ecosystem.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

PREVAIL to offer advanced Edge AI chip design tools across Europe

The European Union’s PREVAIL project is preparing to open its Edge AI services to external users in June 2025.

Coordinated by Europe’s top research and technology organisations, the initiative offers a shared, multi-hub infrastructure designed to speed up the development and commercialisation of next-generation Edge AI technologies.

Through its platform, European designers will gain access to advanced chip prototyping capabilities and full design support using standard commercial tools.

PREVAIL combines commercial foundry processes with advanced technology modules developed in partner clean rooms. These include embedded non-volatile memories (eNVM), silicon photonics, and 3D integration technologies such as silicon interposers and packaging innovations.

Initial demonstrators, already in development with industry partners, will serve as test cases to ensure compatibility with a broad range of applications and future scalability.

From July 2025, a €20 million EU-funded call under the ‘Low Power Edge AI’ initiative will help selected customers co-finance their access to the platform. Whether supported by EU funds or independently financed, users will be able to design chips using one of four shared platforms.

The consortium has also set up a user interface team to manage technical support and provide access to Process Design Kits and Design Rule Manuals.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Nvidia unveils cheaper AI chip for China

Nvidia is preparing to launch a lower-cost AI chip for China that complies with US export restrictions, with mass production expected to begin as early as June.

The upcoming GPU will be based on the latest Blackwell architecture but will carry reduced specifications compared to the recently restricted H20 model. It is expected to sell for $6,500 to $8,000, significantly cheaper than the $10,000–$12,000 H20, reflecting its simpler design and less advanced components.

Sources say the new chip, likely named either the 6000D or B40, will use GDDR7 memory instead of high-bandwidth memory and will avoid Taiwan Semiconductor Manufacturing Co’s CoWoS packaging technology.

Nvidia had initially planned to downgrade the H20, but tighter US rules made that unviable. Instead of relying on its older Hopper architecture, the company is shifting to Blackwell for future developments in China.

Nvidia has been forced to adapt repeatedly due to tightening US export restrictions aimed at slowing China’s technological progress. Its market share in China has dropped from 95% before 2022 to around 50% today, as competitors like Huawei gain ground with chips like the Ascend 910B.

CEO Jensen Huang noted that continuing restrictions could further drive Chinese firms towards domestic alternatives, cutting Nvidia off from more of the $50 billion data centre market.

Huang also revealed that US curbs have forced Nvidia to write off $5.5 billion in inventory and abandon $15 billion in potential sales. New limits now target GPU memory bandwidth, a key factor for AI performance, capping it at around 1.8 terabytes per second.

The upcoming chip is expected to remain just within this limit, allowing Nvidia to retain a foothold in China instead of exiting the market entirely.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Oracle and OpenAI target AI leadership with massive chip project

Oracle has reportedly acquired around 400,000 Nvidia GB200 AI chips valued at approximately $40 billion for deployment at a data centre in Abilene, Texas.

The location will be the first site of the Stargate project—a $500 billion AI infrastructure initiative backed by OpenAI, Oracle, SoftBank, and Abu Dhabi’s MGX fund, which President Trump announced earlier this year.

Once completed, the Abilene facility is expected to provide up to 1.2 gigawatts of computing power, rivalling Elon Musk’s Colossus project in Memphis.

Although Oracle will operate from the site, the land is owned by AI infrastructure firm Cruso and US investment company Blue Owl Capital, which have collectively invested more than $15 billion through financing.

Oracle will lease the campus for 15 years, using the chips to offer computing power to OpenAI for training its next-generation AI models.

Previously dependent solely on Microsoft’s data centres, OpenAI faced bottlenecks due to limited capacity, prompting it to end the exclusivity agreement and look elsewhere.

While individual investors have committed funds, the Stargate project has not officially financed any facility yet. In parallel, OpenAI has announced Stargate UAE—a 5-gigawatt site in Abu Dhabi using over 2 million Nvidia chips, built in partnership with G42.

A surging demand for AI infrastructure has significantly boosted Nvidia’s market value, with the company reclaiming its top global ranking in late 2024.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Nvidia recovers as DeepSeek fears fade

Earlier this year, Nvidia shares declined following concerns over DeepSeek and the possibility that tech giants might reduce AI-related spending. Worries over export restrictions added to investor unease.

However, Wedbush Securities’ managing director Matt Bryson believes the DeepSeek issue is now firmly behind the company. According to Bryson, DeepSeek — mostly a China-based phenomenon — unexpectedly boosted demand for AI servers, which ultimately benefited Nvidia instead of hurting it.

Another key development is Oracle’s plan to spend around $40 billion on Nvidia’s GB200 chips to power OpenAI’s new data centre.

Bryson suggested this is part of a broader trend among hyperscalers like Oracle and Crusoe, which recently secured funding to build new facilities. He expects this spending to appear in Nvidia’s earnings as early as Q2 or Q3, instead of being delayed until the next chip generation, the GB300.

Looking ahead, investors remain focused on whether major tech firms will sustain their AI investment. Bryson pointed out that recent earnings reports from companies like Microsoft, Alphabet, and Meta show they remain committed to high capital expenditures.

Instead of retreating, Big Tech appears set to continue driving demand for AI infrastructure, which supports Nvidia’s long-term prospects.

Bryson also noted a significant new factor in AI growth: sovereign deals from countries such as Saudi Arabia and the UAE. He emphasised that the UAE’s expected chip purchases may even surpass Oracle’s.

The new demand, combined with increasing investments in AI-powered edge products — such as those hinted at by OpenAI’s collaboration with Jony Ive — signals that AI spending beyond 2025 will remain strong instead of slowing.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!