Global semiconductor sales surged in Q3 2024, with a 23.2% year-over-year growth and a 10.7% quarter-over-quarter increase, fueled by rising demand from industries like AI, big data, and electric vehicles. Countries around the world, including China, the US, and the EU, are investing heavily in semiconductor development to secure a competitive edge in the global chip market.
The EU is focusing on photonic technology, committing €133 million to establish a photonic integrated circuit (PIC) pilot line in the Netherlands by 2025. This initiative aims to enhance Europe’s position in the growing photonic chip market, driven by the demand for more efficient data transmission for cloud computing and AI applications.
Japan has also made a significant move, announcing a ¥10 trillion ($65 billion) investment by 2030 to support its semiconductor and AI industries. This funding is part of a broader strategy to boost chip production and innovation, with a focus on the collaboration between Rapidus, IBM, and Belgium’s Imec.
South Korea is ramping up its semiconductor support through a proposed Semiconductor Special Act, which includes financial backing and workweek exemptions for semiconductor manufacturers. The bill reflects the country’s commitment to strengthening its semiconductor industry, with plans for a ₩26 trillion funding initiative and an ₩800 billion fund to support the semiconductor ecosystem by 2027.
Global semiconductor manufacturers are accelerating their shift from China to Vietnam, driven by the anticipated intensification of US sanctions on China’s semiconductor industry, especially with the return of Donald Trump to the White House. South Korean firms, including Samsung Electronics and SK Hynix, are leading this transition, halting production expansions in China and focusing investments on Vietnam, which has become a rising hub for semiconductor production.
SK Hynix, for instance, shelved plans to increase DRAM chip production at its Wuxi plant in China, while Samsung Electronics is cutting back on production at its NAND flash memory facility in Xi’an. Other companies are also following suit; South Korea’s Hana Micron is expanding its presence in Southeast Asia, and Amkor Technology is investing $1.6 billion in a new semiconductor packaging plant in Vietnam. The facility will feature advanced technology, with some equipment reportedly transferred from China.
Vietnam’s semiconductor industry is also benefiting from the growth of companies like Samsung, which established a $1.7 billion OLED plant in the country. Samsung’s semiconductor division is reportedly boosting its investments in Vietnam, encouraging further expansions from supporting companies. Semiconductor testing and packaging firm Signetics is set to invest $100 million in a new facility in Vietnam, and German company Infineon is considering setting up an R&D center in Hanoi.
This shift underscores the ongoing global realignment in the semiconductor industry as companies adapt to geopolitical tensions and US-China trade policies.
Guillaume Faury, CEO of Airbus, raised concerns about how antitrust regulations hinder the European aerospace sector’s ability to compete with US-based SpaceX. Speaking at an aviation industry event in Frankfurt, Faury acknowledged SpaceX’s success, particularly its reusable Falcon 9 rocket, but highlighted how Europe’s regulatory framework restricts similar consolidation. Unlike SpaceX, which manufactures 80% of its components in-house, European companies like Airbus face complex supply chains and fragmented production models due to antitrust rules that require manufacturing distribution across multiple countries.
Faury pointed out that this fragmented system, while pleasing many stakeholders, limits efficiency and competitive flexibility. This is evident when comparing SpaceX’s cost-cutting ability with the struggles of Europe’s Ariane 6, which has yet to launch commercially despite plans for multiple flights per year. Meanwhile, SpaceX’s low-cost launches have revolutionised satellite deployment, launching nearly 7,000 satellites and creating fierce competition in the space industry.
Faury warned that unless European regulations adapt, the region risks falling behind in satellite and launch sectors, with Airbus already feeling the pressure, including a planned reduction of 2,500 jobs in its satellite division. SpaceX’s influence extends beyond commercial aerospace, as the company is also a major player in military and defence with initiatives like Starlink and lunar landing technology, supported by NASA and the US government.
However, concerns about SpaceX’s dominance in the US have also emerged, with NASA and the Pentagon seeking to reduce dependence on the company by promoting more competition in the aerospace sector, although antitrust complaints have not yet significantly affected SpaceX’s position.
Taiwan President Lai Ching-te has called for an economic partnership agreement with the European Union, emphasising the need for collaboration in semiconductors and shared democratic values. Speaking at a Taiwan-EU investment forum in Taipei, Lai highlighted the importance of secure supply chains and stronger ties to counter growing authoritarian threats.
The EU, under its European Chips Act, has sought to deepen cooperation with Taiwan to boost semiconductor production and reduce reliance on Asia. Taiwan Semiconductor Manufacturing Co.’s (TSMC) new chip plant in Dresden, Germany, underscores Taiwan’s role in strengthening European industry and supply chains.
While Maria Martin-Prat of the European Commission praised Taiwan as a trusted economic partner in her video address to the forum, she did not mention plans for a formal agreement. Taiwan, diplomatically isolated from most global organisations, has been pursuing trade deals with like-minded partners, recently securing an Enhanced Trade Partnership with Britain and seeking membership in the CPTPP.
T-Mobile‘s network was among those breached in a prolonged cyber-espionage campaign attributed to Chinese intelligence-linked hackers, according to a Wall Street Journal report. The attackers allegedly targeted multiple US and international telecom companies to monitor cellphone communications of high-value intelligence targets. T-Mobile confirmed it was aware of the industry-wide attack but stated there was no significant impact on its systems or evidence of customer data being compromised.
The Federal Bureau of Investigation (FBI) and the US Cybersecurity and Infrastructure Security Agency (CISA) recently disclosed that China-linked hackers intercepted surveillance data intended for American law enforcement by infiltrating telecom networks. Earlier reports revealed breaches into US broadband providers, including Verizon, AT&T, and Lumen Technologies, where hackers accessed systems used for court-authorised wiretapping.
China has consistently denied allegations of engaging in cyber espionage, rejecting claims by the US and its allies that it orchestrates such operations. The latest revelations highlight persistent vulnerabilities in critical communication networks targeted by state-backed hackers.
MasOrange, Telefónica, Vodafone, and the i2CAT research centre have introduced Europe’s first multi-operator Open Gateway API lab. The lab provides a developer-friendly environment that simplifies creating and testing applications using standardised telecom APIs. This initiative, part of the global GSMA-led Open Gateway programme, focuses on turning telecommunications networks into programmable platforms, enhancing industry-wide collaboration.
Operating under the CAMARA open-source framework, the lab is designed to accelerate API adoption, encouraging joint use cases and performance consistency. i2CAT will play a critical role in ensuring API integration and developing new capabilities tailored to industry demands.
Víctor del Pozo of MasOrange described Open Gateway as a transformative step for designing and marketing digital services, while Telefónica‘s Irene Bernal emphasised the lab’s potential for multi-operator cooperation and driving opportunities across the digital ecosystem. The collaboration is seen as a pioneering public-private partnership, showcasing Spain‘s leadership in fostering digital innovation.
Sergi Figuerola of i2CAT noted the significance of integrating cutting-edge research into telecom network platforms, highlighting the lab as a model for technological collaboration. Through strategic cooperation, the lab will enhance digital services and create a more unified and efficient telecom infrastructure across Europe.
South Africa is considering reducing taxes on smartphones to make them more affordable as the country prepares to phase out 2G and 3G networks. Communications Minister Solly Malatsi revealed he has had initial discussions with the Treasury about cutting the ad valorem tax, which currently increases smartphone prices. The goal is to support accessibility to newer, faster networks like 4G and 5G.
The government’s policy, outlined in the Next Generation Radio Frequency Spectrum Policy paper, aims to fully shut down older networks by 31 December 2027. The phasing out of these networks is intended to free up valuable radio waves for advanced technologies. However, critics argue that the move could worsen the digital divide, particularly impacting low-income and rural populations who may struggle to afford smartphones compatible with faster networks.
Malatsi emphasised that making smart devices more affordable is crucial, noting that eliminating the luxury excise tax could significantly reduce costs. The country’s largest telecom operators, MTN and Vodacom, have called for collaboration between industry stakeholders and the government to manage the transition. The Association of Comms and Technology has also urged the government to ease the transition by lowering taxes and reconsidering a strict shutdown deadline.
Swisscom has moved a step closer to finalising its €8 billion acquisition of Vodafone Italia after receiving approval from Italy’s communications regulator, AGCOM. The deal, announced in March, aims to merge Vodafone Italia with Swisscom’s Fastweb subsidiary, potentially granting Swisscom a 30% share of Italy’s fixed broadband market. However, the transaction still faces scrutiny from Italy‘s antitrust authority, AGCM, which is conducting a detailed review to assess its impact on competition.
AGCM has expressed concerns that the merger could reduce competition in Italy’s already concentrated broadband market, potentially disadvantaging residential customers. In response, Swisscom has proposed several concessions, including access to Fastweb’s fiber network for competitors and protections for existing wholesale contracts.
Competitors were invited to provide feedback on these concessions by early November, and the AGCM is expected to conclude its review by mid-December. If approved, Swisscom aims to complete the acquisition by early 2025.
SoftBank is making strides in Japan’s AI landscape, using Nvidia’s latest Blackwell chip technology to drive advancements in artificial intelligence and telecommunications. The telecom giant plans to construct Japan’s most powerful AI supercomputer, integrating Nvidia’s Blackwell and Grace Blackwell platforms to create a robust system for advanced AI applications.
In a pioneering trial, SoftBank tested an AI-enabled 5G network that utilises Nvidia’s AI Aerial platform, potentially unlocking new revenue streams for telecom providers. By converting telecom base stations into AI-ready infrastructure, SoftBank demonstrated how its AI-RAN technology can optimise both 5G network performance and support for AI services, allowing for the monetisation of unused network capacity.
Through this collaboration, Nvidia and SoftBank foresee telecom operators generating substantial returns, estimating up to $5 in AI revenue for every $1 invested in AI-RAN infrastructure. SoftBank’s energy-efficient AI network is designed for real-time AI inference, supporting applications like autonomous vehicle operations and robotics, and transforming Japan’s telecom industry into a global AI leader.
A future Nvidia-powered AI marketplace aims to broaden access to AI services across various sectors in Japan. By enabling localised, secure, and low-latency AI solutions, SoftBank is set to provide innovative AI support for sectors from healthcare to research, positioning Japan at the forefront of the AI revolution.
Ericsson and e& UAE have collaborated to advance the development of 6G technology through a newly signed Memorandum of Understanding (MoU), marking an early initiative to shape the future of mobile networks. By engaging in technical discussions and exploring key 6G concepts, both companies aim to lay a strong foundation for next-generation connectivity.
That partnership aligns with a shared vision of digital transformation and reinforces their commitment to positioning the UAE as a leader in telecommunications innovation. Furthermore, e& UAE is advancing its 5G capabilities, recently achieving a record-breaking 5G speed of 62 Gbps by aggregating multiple frequency bands with advanced MU-MIMO algorithms.
Additionally, they showcased Low Latency, Low Loss, Scalable Throughput (L4S) technology at GITEX Global 2024, significantly enhancing the 5G Standalone network’s latency for critical applications in industrial automation, cloud gaming, and extended reality (XR). These efforts highlight their leadership in 5G and set a foundation for the shift to 6G, supporting the high demands of ultra-reliable, low-latency applications.
At the same time, that collaboration underscores e& UAE’s vision to lead the nation’s digital future and establishes a benchmark for regional advancement in telecommunications. By combining Ericsson’s global expertise with e& UAE’s commitment to innovation, the companies are strategically preparing to transition from 5G to 6G, ensuring that the region remains at the forefront of mobile network evolution.
