French electrical firm Schneider Electric has teamed up with Nvidia to develop cutting-edge cooling systems for AI-focused data centres. These designs will cater to Nvidia’s powerful AI servers, which feature 72 advanced chips and are set to debut next year.
The energy-intensive servers, consuming up to 132 kilowatts per rack, necessitate liquid cooling technology. Schneider‘s scalable solutions will support various configurations for cloud computing firms and data centre customers, enhancing adaptability and efficiency in AI infrastructure.
Schneider’s push into AI data centres follows a $3 billion deal with Compass Datacenters in 2023, underlining its commitment to innovative technologies. Nvidia‘s switch to liquid cooling has spurred significant developments in data centre construction and upgrades, driving collaboration with industry leaders.
Amazon Web Services (AWS) has revealed advanced data centre servers powered by its in-house Trainium2 AI chips, marking a significant step in its efforts to rival Nvidia in the AI hardware market. The servers will form the backbone of a vast supercomputer designed to handle complex AI workloads, incorporating hundreds of thousands of Trainium2 chips. AI startup Anthropic will be the first to utilise the new system, highlighting its capabilities for AI research and deployment.
Apple has also confirmed its adoption of Trainium2 chips, underscoring the growing appeal of Amazon’s AI hardware in the competitive tech landscape. AWS CEO Matt Garman added that the Trainium3 chip, the next evolution in the series, will debut in 2024. This aligns with Amazon’s broader strategy to dominate AI technology, offering cutting-edge solutions for both startups and major corporations.
The announcement comes as Amazon intensifies efforts to challenge Nvidia, currently a leader in AI chip manufacturing. AWS‘s growing presence in the sector aims to meet surging demand for AI processing power while providing alternatives to established providers. These advancements not only strengthen Amazon’s position in AI technology but also attract major industry players like Apple, which is leveraging the chips to enhance its data operations.
In recent years, China and Russia have significantly ramped up efforts to advance their semiconductor equipment industries, aiming to secure competitive positions in the global market. While the US, Netherlands, Japan, and South Korea dominate the semiconductor equipment sector, China’s aggressive R&D investments in etching, CVD, PVD, and packaging technologies are helping it make strides in domestic substitution. However, the country still lags in high-end lithography equipment, especially EUV machines.
Despite challenges, China’s semiconductor equipment market is expected to see record-high purchases in 2024, surpassing $40 billion. Experts attribute this growth to localisations, new fabs, and global supply chain concerns. However, demand is expected to stabilise in 2025 once production lines are up and running, although long-term growth remains promising, fueled by applications in 5G, AI, and automotive electronics.
Meanwhile, Russia has accelerated its efforts to develop domestic semiconductor equipment, receiving over $2.5 billion in government funding. With a focus on manufacturing 200mm wafers for chips with nodes from 180nm to 90nm, Russia aims to reduce reliance on imports. The country’s ambitious goal is to replace 70% of imported equipment with domestically produced alternatives by 2030. Despite progress, Russian manufacturers like Angstrem and Mikron are still constrained to mature process nodes, depending on imported lithography systems.
Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly in discussions with Nvidia to produce its Blackwell AI chips at TSMC’s new facility in Arizona, according to sources familiar with the matter. This move would mark a significant expansion of Nvidia’s chip production outside Taiwan, where the Blackwell series has been manufactured since its unveiling in March. The chips, celebrated for their generative AI and accelerated computing capabilities, are in high demand and boast speeds 30 times faster than previous models for tasks like chatbot responses.
The Arizona facility, set to begin volume production next year, represents a major US investment by TSMC, which is building three plants in Phoenix with substantial US government subsidies. If finalised, Nvidia would join Apple and AMD as plant customers. However, sources indicate that the chips would still need to be sent back to Taiwan for advanced packaging due to the lack of chip-on-wafer-on-substrate (CoWoS) capacity in Arizona. All of TSMC’s CoWoS operations remain centralised in Taiwan.
TSMC’s expansion into the US aligns with Washington’s push to bolster domestic semiconductor manufacturing amid geopolitical concerns over Taiwan. Neither TSMC nor Nvidia has commented on the talks, emphasising the confidentiality of the ongoing discussions.
Malaysia has cautioned that US President-elect Donald Trump’s proposed tariffs on BRICS nations could disrupt the global semiconductor supply chain. Trump has warned of 100% tariffs on BRICS members unless they halt efforts to create a new currency or reduce reliance on the US dollar, a move Malaysia’s trade minister, Tengku Zafrul Aziz, says could harm both sides.
The United States is Malaysia’s third-largest trade partner, and US firms are key investors in Malaysia’s semiconductor industry, which handles 13% of global chip testing and packaging. Tengku Zafrul emphasised that supply chain stability depends on cooperation, not protectionist measures.
While BRICS countries have discussed alternatives to the dollar, no official decision has been made. Malaysia has applied to join the bloc but is not yet a member. Meanwhile, Russia argued that US pressure would only accelerate global moves toward national currencies in trade.
Dutch semiconductor equipment maker ASM International (ASMI) said that the new US export controls align with its earlier 2025 revenue outlook. The updated restrictions, which include limits on semiconductor equipment exports to China, are not expected to significantly affect the company’s financial targets. ASM’s larger peer, ASML, has also indicated that the new regulations will not disrupt its financial guidance.
While the export controls include new limits on chip-manufacturing tools and equipment production in countries like Singapore and Malaysia, ASM believes that these changes will have only an indirect impact on its business. The company reaffirmed its 2025 revenue goal of between 3.2 billion and 3.6 billion euros ($3.4 billion to $3.8 billion) and expects a moderate sales decline in China in the first half of 2025, with year-on-year declines in its full-year sales in China.
ASM maintained its fourth-quarter sales guidance for 2024, expecting between 770-810 million euros, with a rise of more than 15% in sales from July to December compared to the first half of the year. Following the announcement, ASM’s shares rose by 1.5%.
New US export rules targeting China’s semiconductor sector are not expected to affect ASML’s financial outlook. The Dutch chip equipment maker reaffirmed its guidance for 2025 group sales of €30-35 billion, with China’s share declining to 20%, down from around 50% in 2023.
The updated US restrictions, Washington’s third crackdown in as many years, limit exports to 140 Chinese companies, including key industry players. ASML acknowledged potential impacts on its deep ultraviolet lithography system exports if enforced by Dutch authorities. However, the company emphasised its long-term demand projections remain intact, driven by global needs.
The Dutch government aligned with US security concerns but stressed independent threat assessments guide its export controls. New rules also impose tighter regulations on computational lithography software, vital for chip yield and quality, a field where ASML holds a leading position.
ASML shares rose modestly in Amsterdam trading, closing 0.9% higher at €664.10. Despite geopolitical headwinds, the firm reiterated confidence in the semiconductor industry’s overall growth trajectory.
AI hardware startup Tenstorrent has secured a $693M Series D funding round, valuing the company at over $2.6B. The investment, led by Samsung Securities and AFW Partners, includes participation from Hyundai and Bezos Expeditions, among others. Founded in 2016 and based in Toronto, Canada, Tenstorrent aims to challenge Nvidia’s dominance in the AI chip market.
Tenstorrent’s CEO, Jim Keller, a renowned microprocessor engineer, announced plans to develop AI training servers and expand its engineering team using the new capital. The company has also committed to releasing a new AI processor every two years, with signed customer contracts amounting to nearly $150M. This move positions Tenstorrent among a growing number of startups racing to innovate in AI hardware, alongside competitors such as Axelera, Etched, and Groq.
The funding highlights escalating investor interest in alternative AI chipmakers as demand for cutting-edge computing solutions soars. With its ambitious roadmap and backing from high-profile investors, Tenstorrent is poised to carve out a significant share of the burgeoning AI hardware market.
Trade tensions between the USA and China are escalating in the semiconductor sector, as four of the top Chinese industry associations warned against purchasing US chips, claiming they are ‘no longer safe’ and they threaten national security principles. The response follows the latest US crackdown, restricting exports to 140 Chinese companies, including prominent chip equipment makers like Naura Technology Group.
However, the US semiconductor trade group dismissed these concerns, arguing that US chips remain safe and reliable. It called for more targeted export controls aimed at national security rather than broad, punitive measures.
Despite these assurances, the Chinese associations, which represent major industries from telecommunications to the digital economy, opted for a considerable change of course in the mindset of Chinese businesses. They are now advised to consider non-US suppliers to safeguard their operations and reduce reliance on US technology.
China has also imposed restrictions, notably a ban on exports of critical rare minerals used in military applications, solar cells, and fibre optic cables. The measure is seen as Beijing’s attempt to exert leverage and retaliate against the US actions, showing a more aggressive stance in this tech export war. Experts suggest that while the warnings from Chinese associations may be largely advisory, the new mineral export bans are a far more significant measure that could have a lasting impact on the global supply chain.
The recent crackdown and the retaliatory moves have also raised alarms in Washington, with the US National Security Council vowing to take necessary steps to deter further ‘coercive actions’ from China. The US is also working on diversifying its supply chains away from China, particularly in the semiconductor sector, where China’s growing self-reliance is seen as a challenge to American dominance.
Dutch semiconductor company Nexperia confirmed its commitment to comply with US restrictions following the addition of its Chinese parent company, Wingtech, to the US Department of Commerce’s entity list. Wingtech now faces licensing requirements for accessing US technology, a move targeting companies seeking sensitive chip manufacturing technologies.
A Nexperia spokesperson clarified that the restrictions imposed on Wingtech do not directly impact Nexperia or its subsidiaries. However, Nexperia will ensure compliance where its interactions with Wingtech are concerned, reflecting its commitment to adhere to international trade regulations.
As one of the largest manufacturers of basic computer chips, including diodes and transistors, Nexperia has been expanding its global footprint. Earlier this year, the company increased its operations in Hamburg, Germany, signalling continued growth despite challenges linked to its parent company.
The US Commerce Department added Wingtech to the list, citing concerns over its efforts to acquire technologies crucial to the defence industries of the US and its allies.
