Semiconductors

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.

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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.

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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.

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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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