Semiconductors

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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Finland ranks among EU’s digital leaders

Finland has ranked among the EU’s leading digital economies in the European Commission’s latest State of the Digital Decade report, with the country highlighted for its digital skills, AI leadership, supercomputing capabilities and advanced public services.

The report paints a mixed picture across the EU. While digital adoption, connectivity, cloud services and AI continue to advance, the bloc still faces shortages of digital skills and lags in semiconductor production and globally competitive technology companies. According to the Commission, insufficient investment and market fragmentation remain major obstacles.

Finland performs strongly across a range of digital indicators. Businesses are highly digitalised, the population has above-average digital skills, and the country has developed advanced quantum and semiconductor ecosystems. Electronic public services rank among the EU’s best, 5G coverage is extensive, a national 6G roadmap is already in place, and cybersecurity remains strong, with nearly 80% of businesses implementing cybersecurity measures.

Finland has also played a leading role in shaping the EU’s digital policy agenda by steering the Digital Decade Board’s work on updating the programme’s targets and indicators. The board has proposed new priorities, including digital sovereignty, cybersecurity, sustainable digitalisation and greater data accessibility for AI development. The European Commission is expected to present its formal proposal for revising the Digital Decade Policy Programme in early 2027, following discussions among Member States.

Why does it matter?

Finland’s performance highlights how digital competitiveness is becoming increasingly linked to economic resilience and technological sovereignty. Its strengths in AI, cybersecurity, digital public services and advanced computing demonstrate the type of capabilities the EU is seeking to expand as it reduces dependence on external technology providers.

The proposed updates to the Digital Decade agenda also reflect a broader shift in EU digital policy. Alongside connectivity and digital skills, priorities such as digital sovereignty, cybersecurity and AI-ready data infrastructure are becoming central to Europe’s long-term competitiveness and strategic autonomy.

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UNCTAD warns that strategic investment is becoming more concentrated

Investment in strategic sectors, including AI infrastructure, semiconductors, critical minerals and energy transition technologies, has surged over the past five years. According to UN Trade and Development’s (UNCTAD) World Investment Report 2026, these sectors accounted for 44% of global greenfield investment in 2025, up from 16% in 2020.

The report also highlights a growing concentration of investment among advanced economies. The three largest investor economies accounted for 72% of strategic sector project values in 2025, while the three biggest recipient economies attracted 56%. Low-income and lower-middle-income countries received just 10% of global greenfield investment in strategic sectors between 2020 and 2025, compared with more than 20% in other industries.

At the same time, manufacturing investment outside strategic sectors is declining. The value of announced greenfield manufacturing investment beyond these industries fell by 17% between 2021 and 2025 compared with the 2015–2019 period. The decline was particularly pronounced in developing and least-developed countries, where manufacturing has traditionally played a key role in building productive capacity and creating jobs.

The report also highlights widening differences in technological capabilities. The United States leads outward investment in AI and advanced technologies, while the EU has become the largest destination for those investments. China remains a major investor in critical minerals and downstream supply chains. Between 2016 and 2024, developed economies provided an estimated US$174 billion in industrial subsidies, compared with just US$19 billion in developing economies.

Why does it matter?

The report points to a structural shift in global investment that could deepen the divide between advanced and developing economies. Countries lacking the capital, infrastructure and skills needed to compete in strategic sectors risk missing out on the industries expected to drive future growth and productivity.

Rather than competing directly with the large subsidy programmes of major economies, UNCTAD argues that developing countries should identify targeted opportunities within strategic value chains, such as critical minerals processing, data infrastructure or regional manufacturing networks. Without stronger international cooperation and investment partnerships, the report warns that technological and economic disparities are likely to widen, with implications for global development and geopolitical stability.

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China calls for greater self-reliance in science and technology

Chinese President Xi Jinping has called for faster progress towards high-level scientific and technological self-reliance, arguing that innovation should become the primary driver of China’s modernisation.

Speaking at the national science and technology conference in Beijing, Xi described the 2026–2030 period as critical to achieving China’s goal of becoming a global science and technology leader by 2035.

Xi highlighted China’s recent advances in AI, quantum technology, advanced manufacturing, robotics, pharmaceuticals and space exploration. At the same time, he acknowledged persistent challenges, including gaps in original innovation, inefficient research investment and shortages of high-quality scientific talent.

He called for stronger coordination of national research priorities, greater support for technology transfer, improved intellectual property protection and a financial system better aligned with scientific and technological innovation.

Xi also emphasised the importance of frontier technologies, calling for greater investment in AI, quantum technologies, life sciences, integrated circuits, and strategic areas including deep-sea, deep-space and deep-earth exploration.

He argued that scientific research should become more application-oriented while industry should play a greater role in scientific discovery, strengthening links between research institutions and commercial innovation.

Alongside investment, Xi stressed that technological development must remain secure, ethical and people-centred. He called for stronger governance of AI and other emerging technologies, clearer ethical standards, improved security risk monitoring and greater support for young scientific talent.

China also honoured 258 scientific projects and researchers during the conference, underscoring the country’s continued emphasis on innovation as a strategic national priority.

Why does it matter?

The speech reinforces China’s long term strategy of reducing dependence on foreign technologies while accelerating domestic innovation in critical fields such as AI, semiconductors and quantum computing. It also illustrates how Beijing increasingly views scientific leadership as a foundation of economic competitiveness, national security and geopolitical influence.

By linking research policy, industrial development and AI governance, China is pursuing a coordinated model in which technological innovation is treated as a strategic state priority. That approach is likely to shape global competition in emerging technologies as countries race to build sovereign capabilities in frontier sectors.

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EU proposes Cloud and AI Development Act to boost tech sovereignty

The European Commission has published a proposal for the Cloud and AI Development Act to strengthen Europe’s cloud and AI ecosystem, investment and infrastructure.

CADA forms part of the Commission’s Tech Sovereignty Package and is also linked to the AI Continent Action Plan.

The proposal aims to make it easier and faster to deploy sustainable data centres and cloud infrastructure across the EU.

The Commission said Europe needs more cloud, data centre and computing capacity as demand for AI grows across businesses and public administrations.

It also warned that long permitting procedures, limited access to energy, land and financing, and overreliance on non-EU cloud service providers are holding back Europe’s digital autonomy and resilience.

The Act is intended to accelerate cloud and AI deployment in critical sectors while keeping the European market open to international partners.

The broader Tech Sovereignty Package also includes Chips Act 2.0, an EU Open Source Strategy and a Strategic Roadmap for Digitalisation and AI in Energy.

The proposal will now need to go through the EU legislative process before final rules are adopted.

Why does it matter?

Cloud infrastructure is becoming the foundation for AI deployment, public services and critical industries. CADA shows the EU trying to treat cloud and compute capacity as strategic infrastructure, not only as a commercial service. The proposal could shape data-centre deployment, public procurement and investment in European cloud and AI capacity, while also raising difficult questions about energy demand, semiconductor dependence, market openness and how far digital sovereignty can realistically go.

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NVIDIA unveils RTX Spark for the AI-powered PC era

NVIDIA and Microsoft have introduced RTX Spark, a new Windows PC platform designed for personal AI agents.

NVIDIA describes RTX Spark as a 1-petaflop superchip that combines its AI and graphics stack with Windows-native agent capabilities.

NVIDIA’s Blackwell architecture powers the platform and supports up to 128GB of unified memory.

According to NVIDIA, RTX Spark will allow users to run local AI agents, large language models, creative workflows and advanced games on laptops and compact desktop PCs.

The company said the platform can run 120-billion-parameter large language models with up to 1 million tokens of context locally.

NVIDIA and Microsoft are also introducing new Windows security primitives and NVIDIA OpenShell to help agents run securely on primary devices.

OpenShell will allow users to define what agents can and cannot do, route queries to local models according to privacy policies and mask personal information when cloud models are used.

RTX Spark-powered laptops and compact desktops are expected to be available this autumn from manufacturers including ASUS, Dell, HP, Lenovo, Microsoft Surface and MSI, with Acer and GIGABYTE models to follow.

Why does it matter?

RTX Spark reflects the industry shift towards AI-native personal computers, where more AI processing happens locally on the device. Running agents and large models on PCs could improve privacy, reduce latency and make advanced AI tools less dependent on cloud access. The governance question is whether local agents can operate with clear user permissions, strong containment and meaningful accountability as they gain the ability to search files, interact with apps and execute tasks across a personal device.

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