Semiconductors

US senator calls for AI chip tracking to protect national security

A new bill introduced by Republican Senator Tom Cotton aims to bolster national security by requiring location verification features on American-made AI chips.

The Chip Security Act, announced on 9 May, would ensure such technology does not end up in the hands of foreign adversaries, particularly China.

Cotton urged the US Departments of Commerce and Defence to assess how tracking mechanisms could help detect and prevent illegal chip exports.

He also called for stricter obligations for companies exporting AI chips, including notifying authorities if devices are tampered with or redirected from their original destinations.

The proposed legislation follows a policy shift announced on 7 May by the Trump administration to ease restrictions on AI chip exports previously imposed under President Biden.

Cotton argued that better security practices could allow US firms to expand globally without undermining the country’s technological edge.

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Scale AI expands into Saudi Arabia and UAE

Scale AI, a San Francisco-based startup backed by Amazon, plans to open a new office in Riyadh by the end of the year as part of its broader Middle East expansion.

The company also intends to establish a presence in the United Arab Emirates, although it has yet to confirm the timeline for that move.

Trevor Thompson, the company’s global managing director, said the Gulf is among the fastest-growing regions for AI adoption outside of the US and China.

Gulf states like Saudi Arabia have been investing heavily in tech startups, data centres and computing infrastructure, urging companies to set up local operations and create regional jobs. Salesforce, for instance, has already begun hiring for a $500 million investment in the kingdom.

Founded in 2016, Scale AI provides data-labelling services essential for training AI products, relying on a vast network of contract workers. Its clients include OpenAI and Microsoft.

The company hit a $13.8 billion valuation last year after a $1 billion funding round backed by Amazon, Meta and others.

In 2024, it generated about $870 million in revenue and is reportedly in talks for a deal that could nearly double its value.

Scale AI is also strengthening its regional ties. In February, it signed a five-year agreement with Qatar to enhance public services, followed by a partnership with Abu Dhabi-based Inception in March.

The news coincides with former President Donald Trump’s upcoming visit to Saudi Arabia, where his team is considering lifting export controls on advanced AI chips, potentially boosting the Gulf’s access to cutting-edge technology.

Notably, Scale AI’s former managing director, Michael Kratsios, now advises Trump on tech matters.

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Apple prepares low-power chip for smart eyewear

Apple is developing custom chips to power future smart glasses, AI servers, and new Mac models, according to a report by Bloomberg News.

The chip for the glasses is being designed with a focus on energy efficiency and advanced camera handling, and production could begin as early as late 2026 or 2027.

Built on technology similar to that of the Apple Watch instead of the iPhone, the chip is expected to consume significantly less power.

It will be manufactured by Taiwan’s TSMC and tailored to manage multiple cameras efficiently, potentially positioning Apple as a rival to Meta’s Ray-Ban smart glasses.

At the same time, Apple is working on new Mac processors—possibly branded as the M6 and M7—as well as AI server chips designed to support the Apple Intelligence platform. This system enables features like notification summaries, email rewriting, and access to OpenAI’s ChatGPT.

These projects come as Apple expands its silicon strategy. Earlier in 2025, the company unveiled its first custom modem for iPhones, and it plans to source over 19 billion chips from the US this year instead of depending on China, while also boosting production in India.

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Irish startup launches first silicon quantum computer

An Irish startup, Equal1, has unveiled the world’s first silicon-based quantum computer designed to integrate smoothly into existing data centres instead of requiring entirely new infrastructure.

Named Bell-1, the compact six-qubit device is built to slot directly into standard server racks, weighing just over 200 kilograms and roughly matching the size of a conventional GPU server.

Its standout feature is a self-contained cooling unit that maintains a temperature of 0.3 kelvin without external cryogenics, making it far more practical to deploy than traditional quantum machines.

Bell-1 relies on silicon-based spin qubits instead of more common trapped-ion or superconducting qubits, allowing it to take advantage of existing semiconductor fabrication methods. This choice results in smaller, more scalable components and paves the way for greater qubit density.

The UnityQ chip at the system’s core combines quantum processor units (QPUs), Arm CPUs, and neural processing units (NPUs), eliminating the need for complex coordination between classical and quantum systems — it can be plugged into a power outlet and used like conventional hardware.

The platform includes built-in error correction and AI-powered controls developed in partnership with Arm, helping reduce errors and increase operational speed. Even though this first-generation chip supports just six qubits, Equal1 plans to scale up future versions.

Instead of replacing the entire system, early adopters will be able to upgrade existing installations, ensuring long-term relevance and smoother adoption of more advanced models.

Equal1’s breakthrough builds upon performance records it set in late 2024, where its silicon qubit arrays demonstrated the highest gate fidelity and speed ever recorded.

Bell-1 marks a significant leap forward by offering quantum capabilities without the barriers typically associated with quantum hardware, bringing the technology closer to practical use in traditional computing environments.

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AMD faces a $1.5 billion loss from US chip curbs

AMD expects to lose around US$1.5 billion in revenue this year because of new US export restrictions on advanced AI chips, which now require a licence to be sold to China.

The US government, under both the Biden and Trump administrations, has tightened curbs on chip exports in an effort to slow China’s progress in developing powerful AI systems, citing national security risks.

China makes up roughly a quarter of AMD’s total revenue, so these measures could reduce AMD’s expected annual earnings by almost 5 per cent.

Despite this setback, AMD posted stronger-than-expected second-quarter revenue guidance, forecasting around US$7.4 billion, likely driven by customers rushing to stockpile chips before the new rules fully take effect.

CEO Lisa Su said the impact from the curbs would be mostly felt during the second and third quarters, yet she still expects revenue from the company’s AI data centre chips to grow by strong double digits in 2024.

AMD’s finance chief Jean Hu clarified the projected US$1.5 billion revenue loss is tied directly to the latest export controls introduced in April.

Although AMD is under pressure, demand for its high-performance chips remains solid, with tech giants like Microsoft and Meta continuing to invest heavily in AI infrastructure.

The company’s data centre division saw sales jump 57 per cent to US$3.7 billion, helping push total revenue up 36 per cent to US$7.44 billion—both figures exceeding analyst expectations. Adjusted earnings stood at 96 cents per share, slightly above estimates.

Rival chipmaker Nvidia has also warned it now requires a licence to export to China and faces an even larger US$5.5 billion hit.

Meanwhile, other tech firms didn’t fare as well—Marvell Technology and Super Micro disappointed investors, with shares falling after they issued weaker outlooks, adding further signs of turbulence in the chip sector.

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Apple partners with Anthropic on AI coding tool

Apple is reportedly collaborating with Anthropic, a startup backed by Amazon, to develop a new AI-powered coding platform called ‘vibe coding’, according to Bloomberg.

The platform will use Anthropic’s Claude Sonnet model to write, edit, and test code on behalf of programmers, updating Apple’s existing Xcode software instead of launching an entirely separate tool.

‘Vibe coding’ refers to a growing trend in AI development where intelligent agents generate code autonomously instead of relying on manual programming. Apple is said to be testing the system internally for now, with no confirmed decision on whether it will become publicly available.

The move comes as tech firms race to lead in generative AI. While Apple previously introduced a similar tool, Swift Assist, it was never released to developers amid concerns from engineers about possible slowdowns in app creation.

Apple and Anthropic have not commented publicly on the reported collaboration.

With rivals like OpenAI pushing ahead—reportedly negotiating a $3 billion acquisition of coding assistant Windsurf—Apple is equipping its devices with more advanced chips and AI features, including ChatGPT integration, to compete in the rapidly evolving landscape instead of falling behind.

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Nvidia moves to comply with US export rules

Nvidia is planning to redesign its AI chips to comply with tightened US export restrictions, aiming to retain its foothold in China instead of pulling back.

According to a report by The Information, the chipmaker has already informed major Chinese clients, such as Alibaba, ByteDance, and Tencent, about its revised strategy. The discussions reportedly occurred during CEO Jensen Huang’s visit to Beijing in mid-April.

The visit came just after Washington expanded its curbs on high-performance AI chip exports to China, specifically targeting Nvidia’s H20 chip.

Originally developed to meet earlier US rules, the H20 has now also been deemed too powerful for export under the new regulations. The US government says the move is aimed at preventing China’s military from accessing cutting-edge AI.

Nvidia previously warned that the latest restrictions could cost it up to $5.5 billion in lost revenue. Instead of backing away, the company is now preparing redesigned chips to stay within legal bounds while continuing to serve Chinese tech firms.

Customers have been told that prototype chips could be ready by June.

In addition, Nvidia is developing a tailored version of its next-generation AI chip, Blackwell, specifically for China. These efforts underline Nvidia’s attempt to balance regulatory compliance with its commercial interests in one of the world’s largest AI markets.

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RackBank launches $118 million AI data centre park in India

RackBank has opened a new AI data centre park in Nava Raipur, Chhattisgarh, with an initial investment of ₹10 billion (around $118 million).

Instead of relying on conventional data infrastructure, the facility focuses on GPU-based computing, AI processing and data analytics, and is expected to generate over 500 jobs, primarily in the IT sector.

Spread across 13.5 acres, the park includes a designated Special Economic Zone and begins operations with a 5 MW capacity. Rather than stopping there, RackBank plans to scale the facility to 150 MW, which could draw an additional ₹20 billion in investment.

The park has been designed to position India as a competitive force in AI infrastructure.

Instead of standard cooling methods, RackBank is deploying its proprietary direct-to-chip and Varuna liquid immersion systems, which aim to cut cooling costs by up to 70% and enhance energy efficiency.

The company envisions the centre as a hub for academic, industrial and governmental collaboration, helping businesses leverage India’s growing GPU capabilities.

Officials see the initiative as a major step toward digital self-reliance. Rather than concentrating such developments in traditional tech hubs, the project puts Chhattisgarh on the national map for data management and AI innovation.

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AI chip restrictions and tariffs weigh on Samsung’s global strategy

Samsung has warned that rising US tariffs could dampen global demand for its electronics, including smartphones and semiconductors.

Despite reporting record quarterly revenue of £41.6 billion and a modest profit rise driven by strong phone and chip sales, the company expressed concerns about the uncertain trade environment.

Executives cited possible risks to sales in the second half of 2025 due to escalating tariff tensions.

While some clients have accelerated orders to avoid incoming levies, Samsung said this may create a sales lull later in the year.

Delayed tariffs affecting countries like South Korea and Vietnam, where Samsung manufactures key components, are expected to take effect in July. US restrictions on AI chip sales to China are also weighing on the company’s outlook.

Samsung refrained from providing financial guidance for the next quarter, citing unpredictable global trade dynamics.

As tariff uncertainty continues, major tech companies like Apple are also reassessing supply chains, with many shifting chip production out of China in anticipation of further disruptions.

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Trump administration eyes overhaul of Biden-era AI chip export rules

The Trump administration is reviewing a Biden-era rule that restricts global access to US-made advanced AI chips, with discussions underway to eliminate the current tiered system that governs chip exports, according to sources familiar with the matter.

The existing rule, known as the Framework for Artificial Intelligence Diffusion, was introduced by the US Department of Commerce in January and is set to take effect on 15 May.

It divides the world into three groups: trusted allies (like the EU and Taiwan) with unlimited access, Tier 2 countries with chip quotas, and restricted countries such as China, Russia, Iran and North Korea.

Officials are considering replacing this structure with a global licensing regime based on government-to-government agreements—aligning with Donald Trump’s broader trade strategy of negotiating bilateral deals and using US-made chips as leverage.

Other possible changes include tightening export thresholds: under current rules, orders under the equivalent of 1,700 Nvidia H100 chips only require notification, not a licence. The new proposal could reduce that threshold to around 500 chips.

Supporters of the change argue it would increase US bargaining power and simplify enforcement. Critics, however, warn that scrapping the tier system may complicate compliance and drive countries toward Chinese chip alternatives.

Tech firms such as Oracle and Nvidia, along with several US lawmakers, have criticised the current framework, saying it risks harming American competitiveness and pushing international buyers toward cheaper, unregulated Chinese substitutes.

The Commerce Department declined to comment.

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