Lip-Bu Tan, a high-profile board member at Intel, has resigned after disagreeing with CEO Pat Gelsinger and other directors over the company’s workforce size, risk-averse culture, and lagging AI strategy. His departure follows rising concerns that Intel’s turnaround efforts, led by Gelsinger, are hindered by inefficiencies and outdated practices. Tan, a semiconductor industry veteran, had joined Intel’s board to help restore its leadership in the chip industry.
Tan reportedly grew frustrated with Intel’s bloated workforce, which he believed was burdened by excessive layers of middle management. Despite attempts to streamline the company through layoffs, Tan argued that Intel had failed to make the necessary cuts to its bureaucracy. As competition in AI heats up, particularly with Nvidia, Intel has been criticised for falling behind in the race to develop cutting-edge AI chips.
Intel’s challenges are exacerbated by its struggle to build a foundry business that aims to manufacture chips for other companies. Without a bigger customer, the industry has yet to turn a profit. Additionally, a $5.4 billion deal to acquire Israel’s Tower Semiconductor was blocked by China, further complicating Intel’s efforts to expand its contract manufacturing capabilities.
Intel’s future remains uncertain as the company grapples with internal inefficiencies, external competition, and geopolitical obstacles. Tan’s exit has left a significant void on Intel’s board, raising further concerns about its ability to compete in a rapidly evolving semiconductor industry.
Vietnam’s Prime Minister Pham Minh Chinh has launched a strategic initiative to enhance the country’s capabilities in semiconductors, AI, and cloud computing. The initiative, outlined in Dispatch No. 83/CD-TTg, aims to develop a skilled workforce through targeted education and training in these critical technology sectors. The initiative calls for collaboration among various government bodies, including ministers and local authorities, to implement measures to drive these industries’ advancements.
The Ministry of Education and Training (MoET) leads this effort by guiding public and private universities to establish specialised units focused on semiconductor technology, AI, and cloud computing. The project includes creating new schools and departments dedicated to advancing research and training. The MoET will also modernise curricula by integrating cutting-edge technologies and AI into teaching methodologies while fostering partnerships with businesses and research institutions.
In addition, the Ministry of Planning and Investment will develop a strategic project for nurturing human resources in the semiconductor industry, with a long-term vision extending to 2050. The plan will also encompass AI and cloud computing, emphasising the establishment of innovation ecosystems. Meanwhile, the Ministry of Science and Technology will prioritise scientific research in these fields and create mechanisms to attract international talent.
Local government leaders are encouraged to attract investments to build semiconductors, AI, and cloud computing ecosystems. Deputy Prime Minister Le Thanh Long will oversee the implementation of this initiative, which aims to position Vietnam as a leader in these technology sectors, leveraging education and innovation to drive economic growth in the digital age.
Chinese AI developers are finding innovative ways to circumvent US export controls on advanced chips by leveraging foreign computing resources. The strategy allows them to access high-performance chips, such as Nvidia’s A100 and H100, which are restricted under US regulations. As the demand for AI capabilities grows, these developers employ various methods to remain competitive in the tech landscape.
One key approach is using cloud computing services from major American providers like Amazon Web Services (AWS) and Microsoft Azure. This method is legally permissible under current US regulations, which focus on directly exporting physical technologies rather than cloud-based computing power.
Additionally, Chinese AI developers are collaborating with brokers and using identity-mapping techniques from the cryptocurrency industry. These brokers help facilitate access to AI servers in countries like Australia, allowing companies to deploy advanced chips without importing them directly into China. For example, entrepreneur Derek Aw has arranged for over 300 servers equipped with Nvidia’s H100 chips to be housed in Australia and utilised by firms in Beijing.
Despite the challenges posed by export controls, many Chinese companies have stockpiled chips and invested in domestic semiconductor manufacturing. While local suppliers often need to catch up to US technologies, this dual approach helps maintain momentum in AI research and development. Legal experts note that as long as technology is not used for military purposes, cloud services to access advanced computing power remain unregulated, highlighting the complexities of enforcing technology trade restrictions.
The ongoing situation illustrates the US government’s challenges in enforcing its trade policies. As Chinese companies continue to adapt and innovate, the US may need to tighten regulations to address emerging loopholes.
FuriosaAI has launched its latest AI inference chip, RNGD, which promises to be a significant accelerator for data centres handling large language models (LLMs) and multimodal model inference. Founded in 2017 by former AMD, Qualcomm, and Samsung engineers, FuriosaAI has rapidly developed cutting-edge technology, culminating in the RNGD chip.
The RNGD chip, developed with the support of TSMC, has demonstrated impressive performance in early tests, particularly with models such as GPT-J and Llama 3.1. The chip’s architecture, featuring a Tensor Contraction Processor (TCP) and 48GB of HBM3 memory, delivers high efficiency and programmability, achieving token throughput of 2,000 to 3,000 tokens per second for models with around 10 billion parameters.
FuriosaAI’s approach to innovation is evident in its quick development and optimisation cycles. Within weeks of receiving silicon for their first-generation chip in 2021, the company achieved notable results in MLPerf benchmarks, with performance improvements reaching 113% in subsequent submissions. The RNGD chip is the next step in their strategy, offering a sustainable solution with a lower power draw than leading GPUs.
The RNGD chip is sampled by early access customers, with a broader release anticipated in early 2025. FuriosaAI’s CEO, June Paik, expressed pride in the team’s dedication and excitement for the future as the company continues to push the boundaries of AI computing.
Chinese entities linked to the state are turning to cloud services from Amazon and its rivals to access advanced US chips and AI capabilities that are otherwise restricted. Over the past year, at least 11 Chinese organisations have sought cloud services to bypass US export restrictions on high-end AI chips, according to tender documents.
Amazon Web Services (AWS) was specifically mentioned as a provider in several cases, though Chinese intermediaries were used to access the services. US regulations focus on the export or transfer of physical technology, leaving a loophole for cloud-based access. This has allowed US companies to profit from China’s growing demand for computing power.
Efforts to close this loophole are ongoing. US legislators have expressed concerns, and the Commerce Department is considering new rules to tighten control over remote access to advanced technology. AWS has stated that it complies with all applicable laws, including trade regulations in the countries where it operates.
Microsoft’s cloud services have also been sought by Chinese universities for AI projects. These activities highlight the increasing demand for US technology in China and the challenges in enforcing export controls. Both Amazon and Microsoft declined to comment on specific deals, but the implications for US-China tech relations are significant.
The UK-India Technology Security Initiative (TSI) has made notable progress since its launch, reflecting a commitment to strengthening bilateral relations and fostering economic growth through collaboration in emerging technologies. Recently, the National Security Advisors from both countries convened to establish a framework for the initiative, focusing on regulatory and licensing protocols. That meeting resulted in the formation of a bilateral task force designed to streamline communication between the Indian Ministry of External Affairs and the UK government, ensuring a cohesive approach to the initiative’s objectives.
Regarding sector-specific collaborations, discussions have commenced in key areas such as telecommunications, critical minerals, AI, quantum, health and biotechnology, advanced materials and semiconductors. The two nations are exploring the implementation of Open RAN systems to enhance telecom security and innovation.
Investment partnerships are also a significant focus of the TSI. Investment forums are being organized to attract Indian enterprises, particularly in green technology, offshore wind, and green hydrogen sectors. The initiative includes dedicated programs to empower women in technology, with funding opportunities designed to support their participation and leadership in these fields. This emphasis on inclusivity highlights the initiative’s broader goal of fostering sustainable economic development.
Moreover, the TSI is addressing global tech governance by collaborating on the establishment of digital technical standards and frameworks for internet governance and cybersecurity. This proactive approach aims to tackle emerging challenges in the digital landscape, ensuring that both countries are well-prepared to navigate the complexities of technology in a global context.
Why does this matter?
Looking ahead, plans are in place to launch initiatives focused on technology research centres, incubators, and academic partnerships. As the TSI progresses, further updates will highlight specific projects and collaborations, aligning with the goals of the India-UK Roadmap 2030.
Taiwan experienced a robust increase in export orders in July, with a 4.8% rise to $50.03 billion, surpassing expectations. The surge was primarily driven by the growing demand for chips used in AI and other advanced technology products. The Ministry of Economic Affairs noted that high-speed computing and preparations for new consumer electronics were significant factors behind the growth.
Orders from the United States saw a notable increase, jumping 14.3% in July compared to a 3.7% rise in June. In contrast, orders from China remained flat, showing a slight decrease of 0.1% after a 3.5% gain in the previous month. The mixed performance highlights the varying demand for Taiwanese products across different regions.
The Ministry also reported growth in orders from other regions, including a 6.1% rise from Europe and a 2.4% increase from Japan. These figures suggest that technology sector of Taiwan remains resilient amid global economic uncertainties, with strong demand for its products across multiple markets.
Looking ahead, the Taiwanese government is optimistic about sustaining this momentum. Officials predict that export orders will continue to grow, with an expected increase ranging from 6.7% to 11.0% in August.
The European Commission has approved €5 billion in German state aid to support the construction of a new microchip plant in Dresden by the European Semiconductor Manufacturing Company (ESMC), led by Taiwan’s TSMC. This subsidy marks the largest awarded under the EU Chips Act and is Germany’s first such contribution. The plant, which is expected to cost a total of €10 billion, will operate as an open foundry, allowing any customer, including the joint venture partners Bosch, Infineon, and NXP, to order chip production.
The Dresden facility is set to begin production in 2027. It will focus on producing chips essential for automotive and industrial applications, though slightly behind the cutting-edge technology used in AI chips and smartphones. The plant aims to bolster Europe’s resilience against future chip shortages similar to those experienced during the COVID-19 pandemic. The EU and German officials praised the project, emphasising its strategic importance for European manufacturing.
Two leading South Korean AI chip makers, Rebellions Inc and Sapeon Korea Inc, have agreed to merge, aiming to compete with global giants like Nvidia. The merger, confirmed after negotiations began in June, represents a significant move in the competitive AI chip market.
Sapeon Korea is backed by major firms in South Korea, including SK Telecom and SK Hynix, adding considerable strength to the merger. Rebellions, on the other hand, recently secured a $15 million investment from Saudi Aramco’s venture capital arm, Wa’ed Ventures, raising its total funding to over $225 million.
The combined entity is expected to leverage its enhanced resources and technology to innovate and compete more effectively. With strong backing and significant funding, the merger could reshape the landscape of the AI chip market in the region.
AMD announced plans to acquire server maker ZT Systems for $4.9 billion, aiming to strengthen its position in the AI hardware market and compete with industry leader Nvidia. The acquisition will be financed through a combination of cash and stock, with AMD leveraging its $5.34 billion in cash reserves. That strategic move is intended to enhance AMD’s ability to meet the growing computing demands of AI, where the integration of vast numbers of chips into powerful server systems is crucial.
ZT Systems, which generates about $10 billion in annual revenue, will bring approximately 1,000 engineers to AMD, allowing the company to accelerate the testing and deployment of its AI GPUs on a larger scale, particularly for major cloud providers like Microsoft. AMD’s CEO, Lisa Su, emphasised that AI systems are the company’s top strategic priority and expects the acquisition to boost GPU sales significantly. However, AMD plans to divest ZT Systems’ server manufacturing business post-acquisition, as it does not intend to compete in that segment.
The deal is expected to close in the first half of 2025, with AMD anticipating a positive impact on its financial performance by the end of that year. The following acquisition is part of AMD’s broader strategy to challenge Nvidia’s dominance in the AI hardware space, where Nvidia is projected to generate $105.9 billion from its data centre segment this year.
