Semiconductors

Baidu emerges as China’s AI chip leader

A key player is emerging in China’s AI chip market with Baidu’s Kunlunxin unit stepping in to fill the gap left by Nvidia due to US export restrictions.

The company plans a five-year roadmap for AI chips, beginning with the M100 in 2026 and the M300 in 2027, while already using its chips to run ERNIE AI models.

Strong domestic demand and shortages of AI chips among Chinese tech giants, such as Alibaba and Tencent, have created an opportunity for Baidu.

The company sells chips to third parties and rents computing capacity via its cloud, presenting itself as a full-stack AI provider with integrated infrastructure, models, and applications.

Analysts predict explosive growth for Baidu’s AI chip business, with sales expected to increase sixfold to 8 billion yuan ($1.1 billion) by 2026. Industry experts highlight that the timely delivery of competitive Kunlun chip generations could make Baidu a strategic supplier to the rest of China’s AI ecosystem.

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EU-South Korea digital partnership enhances collaboration

The European Union and the Republic of Korea strengthened their digital partnership during the third Digital Partnership Council meeting in Seoul, where both sides emphasised the value of deeper cooperation in advanced technologies.

The discussions focused on how joint research on semiconductors, 6G, AI and quantum technologies can support competitiveness and provide broader economic benefits.

Both sides agreed to continue collaborative work on semiconductor research to advance more efficient chips suitable for AI and automated mobility. Quantum research under Horizon Europe is set to expand through shared expertise and long-term cooperation.

Regulatory alignment on AI will progress through dialogue on conformity assessment results linked to the EU AI Act, supported by joint work on innovation, standardisation and safety evaluation.

Information exchange on emerging data spaces is also expected to grow, with both partners assessing whether a dedicated working group could enhance interoperability.

Cyber cooperation remains a priority, covering threat information sharing, software supply chain security and the safety of connected devices, combined with efforts to strengthen skills and explore new research.

Engagement in international standardisation bodies such as the International Telecommunications Union will continue to support broader global alignment. The two partners plan to meet again in Brussels in 2026 to assess progress.

The partnership reflects broader EU objectives in the Indo-Pacific and supports the goals of the International Digital Strategy.

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New budget signals Japan’s move to steady tech investment

Japan is moving ahead with an extra budget to support AI and semiconductor development. Officials say shifting funding into regular budgets will offer stability. Parliament is expected to approve the plan quickly after cabinet backing.

The government seeks stable support for industries crucial to economic security. The new budget adds to earlier investments in domestic chip production. Officials aim to avoid delays that have slowed previous industrial programmes.

Japan’s long-running strategy includes support for Rapidus, TSMC’s work in Kumamoto and Micron’s facility in Hiroshima. The extra funding is meant to complement these commitments. Stable annual financing is considered crucial for long-term planning.

A significant portion of the allocation is handled by the Ministry of Economy, Trade and Industry. The plan includes strengthening Nippon Export and Investment Insurance. The insurer is expected to back overseas projects under wider trade agreements.

Japan is also increasing support for critical mineral supplies. Funding will help secure rare earths and expand national stockpiles. Officials frame the combined measures as a shift toward steadier and more resilient investment.

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Snapdragon 8 Gen 5 by Qualcomm brings faster AI performance to flagship phones

Qualcomm has introduced the Snapdragon 8 Gen 5 Mobile Platform, positioning it as a premium upgrade that elevates performance, AI capability, and gaming. The company says the new chipset responds to growing demand for more advanced features in flagship smartphones.

Snapdragon 8 Gen 5 includes an enhanced sensing hub that wakes an AI assistant when a user picks up their device. Qualcomm says the platform supports agentic AI functions through the updated AI Engine, enabling more context-aware interactions and personalised assistance directly on the device.

The system is powered by the custom Oryon CPU, reaching speeds up to 3.8 GHz and delivering notable improvements in responsiveness and web performance. Qualcomm reports a 36% increase in overall processing power and an 11% boost to graphics output through its updated Adreno GPU architecture.

Qualcomm executives say the refreshed platform will bring high-end performance to more markets. Chris Patrick, senior vice-president for mobile handsets, says Snapdragon 8 Gen 5 is built to meet rising demands for speed, efficiency, and intelligent features.

Qualcomm confirmed that the chipset will appear in upcoming flagship devices from manufacturers including iQOO, Honor, Meizu, Motorola, OnePlus, and vivo. The company expects the platform to anchor next-generation models entering global markets in the months ahead.

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AI development by Chinese companies shifts abroad

Leading Chinese technology companies are increasingly training their latest AI models outside the country to maintain access to Nvidia’s high-performance chips, according to a report by the Financial Times. Firms such as Alibaba and ByteDance are shifting parts of their AI development to data centres in Southeast Asia, a move that comes as the United States tightens restrictions on advanced chip exports to China.

The trend reportedly accelerated after Washington imposed new limits in April on the sale of Nvidia’s H20 chips, a key component for developing sophisticated large language models. By relying on leased server space operated by non-Chinese companies abroad, tech firms are able to bypass some of the effects of US export controls while continuing to train next-generation AI systems.

One notable exception is DeepSeek, which had already stockpiled a significant number of Nvidia chips before the export restrictions took effect. The company continues to train its models domestically and is now collaborating with Chinese chipmakers led by Huawei to develop and optimise homegrown alternatives to US hardware.

Neither Alibaba, ByteDance, Nvidia, DeepSeek, nor Huawei has commented publicly on the report, and Reuters stated that it could not independently verify the claims. However, the developments underscore the increasing complexity of global AI competition and the lengths to which companies may go to maintain technological momentum amid geopolitical pressure.

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White House launches Genesis Mission for AI-driven science

Washington prepares for a significant shift in research as the White House launches the Genesis Mission, a national push to accelerate innovation through advanced AI. The initiative utilises AI to enhance US US technological leadership in a competitive global landscape.

The programme puts the Department of Energy at the centre, tasked with building a unified AI platform linking supercomputers, federal datasets and national laboratories.

The goal is to develop AI models and agents that automate experiments, test hypotheses and accelerate breakthroughs in key scientific fields.

Federal agencies, universities and private firms will conduct coordinated research using shared data spaces, secure computing and standardised partnership frameworks. Priority areas cover biotechnology, semiconductors, quantum science, critical materials and next-generation energy.

Officials argue that the Genesis Mission represents one of the most ambitious attempts to modernise US research infrastructure. Annual reviews will track scientific progress, security, collaborations and AI-driven breakthroughs.

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NVIDIA powers a new wave of specialised AI agents to transform business

Agentic AI has entered a new phase as companies rely on specialised systems instead of broad, one-size-fits-all models.

Open-source foundations, such as NVIDIA’s Neuron family, now allow organisations to combine internal knowledge with tailored architectures, leading to agents that understand the precise demands of each workflow.

Firms across cybersecurity, payments and semiconductor engineering are beginning to treat specialisation as the route to genuine operational value.

CrowdStrike is utilising Nemotron and NVIDIA NIM microservices to enhance its Agentic Security Platform, which supports teams by handling high-volume tasks such as alert triage and remediation.

Accuracy has risen from 80 to 98.5 percent, reducing manual effort tenfold and helping analysts manage complex threats with greater speed.

PayPal has taken a similar path by building commerce-focused agents that enable conversational shopping and payments, cutting latency nearly in half while maintaining the precision required across its global network of customers and merchants.

Synopsys is deploying agentic AI throughout chip design workflows by pairing open models with NVIDIA’s accelerated infrastructure. Early trials in formal verification show productivity improvements of 72 percent, offering engineers a faster route to identifying design errors.

The company is blending fine-tuned models with tools such as the NeMo Agent Toolkit and Blueprints to embed agentic support at every stage of development.

Across industries, strategic steps are becoming clear. Organisations begin by evaluating open models before curating and securing domain-specific data and then building agents capable of acting on proprietary information.

Continuous refinement through a data flywheel strengthens long-term performance.

NVIDIA aims to support the shift by promoting Nemotron, NeMo and its broader software ecosystem as the foundation for the next generation of specialised enterprise agents.

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Japan boosts Rapidus with major semiconductor funding

Japan will inject more than one trillion yen (approximately 5.5 billion €) into chipmaker Rapidus between 2026 and 2027. The plan aims to fortify national economic security by rebuilding domestic semiconductor capacity after decades of reliance on overseas suppliers.

Rapidus intends to begin producing 2-nanometre chips in late 2027 as global demand for faster, AI-ready components surges. The firm expects overall investment to reach seven trillion yen and hopes to list publicly around 2031.

Japanese government support includes large subsidies and direct investment that add to earlier multi-year commitments. Private contributors, including Toyota and Sony, previously backed the venture, which was founded in 2022 to revive Japan’s cutting-edge chip ambitions.

Officials argue that advanced production is vital for technological competitiveness and future resilience. Critics to this investment note that there are steep costs and high risks, yet policymakers view the Rapidus investment as crucial to keeping pace with technological advancements.

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EU approves funding for a new Onsemi semiconductor facility in the Czech Republic

The European Commission has approved €450 million in Czech support for a new integrated Onsemi semiconductor facility in Rožnov pod Radhoštěm.

A project that will help strengthen Europe’s technological autonomy by advancing Silicon Carbide power device production instead of relying on non-European manufacturing.

The Czech Republic plans to back a €1.64 billion investment that will create the first EU facility covering every stage from crystal growth to finished components. These products will be central to electric vehicles, fast charging systems and renewable energy technologies.

Onsemi has agreed to contribute new skills programmes, support the development of next-generation 200 mm SiC technology and follow priority-rated orders in future supply shortages.

The Commission reviewed the measure under Article 107(3)(c) of the Treaty on the Functioning of the EU and concluded that the aid is necessary, proportionate and limited to the minimum required to trigger the investment.

In a scheme that addresses a segment of the semiconductor market where the EU lacks sufficient supply, which improves resilience rather than distorts competition.

The facility is expected to begin commercial activity by 2027 and will support the wider European semiconductor ecosystem.

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Nokia to invest 4 billion in AI-ready US networks

Nokia has announced a $4 billion expansion of its US research, development, and manufacturing operations to accelerate AI-ready networking technologies. The move builds on Nokia’s earlier $2.3 billion US investment via Infinera and semiconductor manufacturing plans.

The expanded investment will support mobile, fixed access, IP, optical, data centre networking, and defence solutions. Approximately $3.5 billion will be allocated for R&D, with $500 million dedicated to manufacturing and capital expenditures in Texas, New Jersey, and Pennsylvania.

Nokia aims to advance AI-optimised networks with enhanced security, productivity, and energy efficiency. The company will also focus on automation, quantum-safe networks, semiconductor testing, and advanced material sciences to drive innovation.

Officials highlight the strategic impact of Nokia’s US investment. Secretary of Commerce Howard Lutnick praised the plan for boosting US tech capacity, while CEO Justin Hotard said it would secure the future of AI-driven networks.

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