The US Department of Commerce has asked Nvidia to investigate how its AI chips ended up in China despite ongoing export restrictions, The Information reported. In response, Nvidia has called on major distributors like Super Micro and Dell to conduct customer inspections in Southeast Asia. Nvidia chips, embedded in server products, have allegedly been smuggled to Chinese entities through various schemes, including duplicating or altering serial numbers.
Super Micro and Dell stated they strictly enforce export regulations and will terminate relationships with partners who violate these controls. Super Micro also confirmed it investigates unauthorised exports and complies with all US export laws.
These developments come as the Biden administration intensifies its crackdown on chip sales to China. Despite the broadened restrictions on high-end AI chips in 2023, Chinese institutions reportedly acquired Nvidia chips through resellers. Earlier this month, the US further limited semiconductor exports to 140 additional companies, underscoring efforts to control the flow of advanced technology to China.
The US Commerce Department has finalised a $458 million grant for SK Hynix to support an advanced chip packaging plant and AI research facility in Indiana. The South Korean company, a key supplier for Nvidia, plans to invest $3.87 billion in the project, which will produce high-bandwidth memory chips used in AI systems. The government will also provide $500 million in loans as part of the deal.
The Indiana facility is expected to create 1,000 jobs and strengthen the US semiconductor supply chain. SK Hynix’s CEO, Kwak Noh-Jung, highlighted the importance of building a resilient AI chip infrastructure in the United States. This grant is part of the $39 billion program approved by Congress in 2022 to boost domestic semiconductor production.
The Commerce Department has issued grants to major chipmakers like Intel, Micron, and TSMC. With the SK Hynix deal complete, only Samsung’s $6.4 billion award remains pending. The initiative aims to bolster US leadership in semiconductor technology and reduce reliance on foreign manufacturing.
A coalition of Dutch technology firms, including chip equipment maker ASML, has announced plans to contribute approximately $230 million towards infrastructure development in Eindhoven, one of Europe’s fastest-growing technology hubs. This initiative aligns with the Dutch government’s “Operation Beethoven,” a €2.5 billion programme aimed at improving housing, transport, education, and electricity in the region.
The corporate funding will complement public investment, supporting projects coordinated by the regional development agency Brainport. Willem van der Leegte, CEO of manufacturing giant VDL Groep, a key ASML supplier, emphasised the mutual benefits of the collaboration, stating, “What is good for the region is good for the companies, and vice versa.” Other prominent contributors include chipmaker NXP and health technology firm Philips.
Eindhoven’s rapid growth as a technology hub has placed increased demand on local infrastructure. By joining forces, public and private sectors aim to create sustainable development that supports both the region’s workforce and the companies driving innovation.
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.
