The European Commission has approved Nokia’s $2.3 billion acquisition of US-based Infinera, confirming the deal raises no competition concerns.
The approval was granted unconditionally, as the combined company will hold only a moderate share of the optical transport equipment market.
Nokia’s takeover of Infinera, announced last June, will make it the second-largest player in optical networking with a 20% market share, trailing Huawei.
Western firms have struggled to compete in China, giving Huawei a dominant position in the sector.
Chinese companies are significantly increasing orders for Nvidia’s H20 artificial intelligence chip due to soaring demand for DeepSeek’s low-cost AI models.
The surge, reported for the first time, highlights Nvidia’s dominance in the market and alleviates concerns that DeepSeek’s emergence might weaken AI chip demand.
Major technology firms Tencent, Alibaba, and ByteDance have substantially raised their purchases of the H20 chip, which was specifically developed for China following US export restrictions.
These companies not only use advanced AI chips internally but also offer cloud services that enable other businesses to access AI tools. Smaller firms in sectors like healthcare and education are also adopting AI servers equipped with DeepSeek models and Nvidia H20 chips.
DeepSeek’s AI models rival Western alternatives while offering significantly lower costs by focusing on inference rather than raw processing power.
While potential US restrictions on H20 chip exports could be a factor in increased orders, sources attribute the demand spike primarily to DeepSeek’s expanding role in the AI market. Nvidia has not disclosed order volumes but stated its products succeed on merit in a competitive field.
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Vanguard International Semiconductor has cautioned that US tariffs on imported chips may drive inflation and weaken global economic growth.
Chairman Leuh Fang stated that while the direct impact on Vanguard would be minimal, broader consequences for the semiconductor industry remain uncertain.
The company remains in a wait-and-see mode, as it is unclear how far the proposed tariffs will go. Higher import duties could reduce purchasing power and slow economic expansion, Fang noted.
However, the firm expects little direct exposure to the tariffs due to its focus on legacy chips for automotive and display applications.
Vanguard has no plans to establish a US manufacturing facility. Meanwhile, larger industry players such as TSMC, which owns over a quarter of Vanguard’s shares, are investing in American production to navigate trade uncertainties.
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Indonesia and Apple have reportedly reached an agreement to lift the country’s ban on iPhone 16s, with a potential deal expected to be signed this week. The ban was imposed in October after Apple failed to meet the requirement that smartphones sold in Indonesia must include at least 35% locally-made parts.
As part of the agreement, Apple will invest $1 billion into a manufacturing plant in Indonesia, focused on producing components for smartphones and other products. Additionally, Apple will commit to training local workers in research and development, expanding beyond its existing Apple academies. However, Apple has no immediate plans to begin iPhone production in the country.
Neither Apple nor Indonesia’s Ministry for Industry have responded to requests for comment on the matter.
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Elon Musk’s Starlink network is facing increasing competition in the satellite internet market, particularly from SpaceSail, a Shanghai-based company backed by the Chinese government, and Amazon’s Project Kuiper. SpaceSail is expanding rapidly, having entered Brazil in November and begun operations in Kazakhstan by January. Meanwhile, Brazil is also in talks with Project Kuiper and Canada’s Telesat to diversify its options for providing high-speed internet to remote areas.
SpaceSail plans to launch 648 low Earth orbit (LEO) satellites this year, with the ambition of deploying up to 15,000 by 2030. This move aims to compete directly with Starlink, which currently operates around 7,000 satellites but plans to increase its constellation to 42,000 by the end of the decade. China’s push into satellite internet is part of its broader strategy to dominate space and digital technologies, which has raised concerns among Western governments, particularly regarding Beijing’s potential to extend its censorship and surveillance reach globally.
China’s rapid expansion in satellite technology, supported by state funding and military research, has intensified. It has launched 263 LEO satellites in the past year alone, and researchers are focusing on low-latency systems to compete with Starlink’s capabilities. The Chinese government is also exploring ways to track and monitor satellite constellations, potentially targeting Starlink as a strategic competitor.
As competition in the satellite internet sector intensifies, particularly between the US, China, and other players like Brazil, the geopolitical and military implications of these space technologies are becoming clearer. With nations striving to secure positions in space, experts warn of an increasingly complex and competitive environment.
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Australia’s Federal Court has ruled that telecom giant Telstra misled customers about downgrading the upload speed of its broadband plans. The Australian Competition & Consumer Commission (ACCC) initiated legal action in December 2022, accusing Telstra of downgrading the upload speeds for nearly 9,000 customers in 2020 without informing them or adjusting charges accordingly.
The ACCC argued that Telstra’s failure to notify customers deprived them of the chance to decide whether the altered service met their needs. The regulator is seeking penalties, compensation for affected customers, and other measures, with a final decision to be made by the court later.
Telstra expressed disappointment in the ruling but acknowledged the court’s decision. A spokesperson said the company would review the judgment before deciding on further steps.
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STMicroelectronics has announced the launch of a new computer chip aimed at the rapidly expanding AI data centre market. Developed in collaboration with Amazon Web Services (AWS), the photonics chip uses light rather than electricity, which helps increase speed and reduce power consumption in AI data centres. These chips are expected to be used in transceivers, which are crucial components in data centre infrastructure.
As top US software companies plan to invest $500 billion into AI infrastructure, there is rising demand for specialised chips, not only for computing but also for memory, power, and communications applications. ST’s new chip targets the communications sector, with a focus on improving the efficiency of transceivers, which are essential in AI data centres. The company also has a collaboration agreement with AWS to deploy this technology in their infrastructure later this year.
ST is working with a leading provider of optical solutions, although the company’s name has not been disclosed, to integrate the new chip into next-generation transceivers. The market for such devices, valued at $7 billion in 2024, is expected to grow significantly, reaching $24 billion by 2030. ST will begin mass production of these chips at its facility in Crolles, France.
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Apple has introduced its first custom-designed modem chip, marking a significant step towards reducing reliance on Qualcomm. The new chip, a part of Apple’s C1 subsystem, debuts in the $599 iPhone 16e and will eventually be integrated across other products.
The C1 subsystem includes advanced components like processors and memory, offering better battery life and enhanced artificial intelligence features.
Apple has ensured the modem is globally compatible, testing it with 180 carriers in 55 countries. Executives highlight its ability to prioritise network traffic for smoother performance, setting it apart from competitors.
Modem development is highly complex, with few companies achieving global compatibility. Apple previously relied on Qualcomm but resolved to design its own platform after legal disputes and challenges with alternative suppliers.
The C1 subsystem represents Apple’s strategy to tightly integrate modem technology with its processors for long-term product differentiation.
Apple’s senior hardware executives described the C1 as their most complex creation, combining cutting-edge chipmaking techniques. The new platform underscores Apple’s focus on control and innovation in core technologies.
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Public interest groups have urged a US court to revisit its decision blocking the reinstatement of net neutrality rules. The appeal was submitted to the 6th Circuit Court of Appeals after a three-judge panel ruled that the Federal Communications Commission (FCC) lacked authority to enforce the rules.
These rules, first implemented in 2015 and later repealed under a different administration, aim to ensure equal access to the internet for all users.
Advocates, including Free Press and Public Knowledge, argue that the court’s ruling conflicts with a previous decision by another court. They emphasised the importance of protecting users from potential abuses by broadband providers, who might prioritise their own interests over fair access.
Net neutrality rules prevent internet providers from blocking or slowing content or giving preferential treatment to certain users. While state-level rules remain in place in regions like California, the court’s decision could halt federal efforts to oversee broadband regulation.
Earlier this year, the FCC had sought to reinstate these protections, but industry groups successfully argued for a temporary block.
Supporters of the rules include major tech companies, while telecom industry representatives view them as unnecessary and counterproductive. The ongoing legal battles could determine whether federal regulators will regain the ability to enforce open internet policies.
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Meta has announced plans for Project Waterworth, an ambitious 50,000km subsea cable system set to be the longest in the world. The infrastructure project aims to enhance global connectivity by linking the United States, India, Brazil, South Africa, and other regions. Designed with 24 fiber pairs, the system will offer significantly higher data capacity, supporting Meta’s growing AI-driven services and contributing to digital inclusion and economic growth in key markets.
The tech giant has been at the forefront of undersea cable development for over a decade, collaborating on more than 20 similar projects. With most of the world’s internet traffic reliant on such cables, concerns over security have intensified, particularly as geopolitical tensions rise. In response to recent incidents, NATO has increased surveillance of critical maritime infrastructure, while the UK is reassessing its ability to safeguard its undersea network against potential threats.
Meta plans to lay sections of the cable at depths of up to 7,000 meters and employ advanced burial techniques in high-risk areas to minimise risks. This move follows recent disruptions, such as the damage to Tonga’s undersea cable, which left much of the island in a digital blackout. Meanwhile, Meta’s decision to scale back fact-checking on Facebook and Instagram has drawn criticism, highlighting the broader implications of its expanding digital footprint.
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