Taiwan has officially banned the export of chips and chiplets to China’s Huawei and SMIC, joining the US in tightening restrictions on advanced semiconductor transfers.
The decision follows reports that TSMC, the world’s largest contract chipmaker, was unknowingly misled into supplying chiplets used in Huawei’s Ascend 910B AI accelerator. The US Commerce Department had reportedly considered a fine of over $1 billion against TSMC for that incident.
Taiwan’s new rules aim to prevent further breaches by requiring export permits for any transactions with Huawei or SMIC.
The distinction between chips and chiplets is key to the case. Traditional chips are built as single-die monoliths using the same process node, while chiplets are modular and can combine various specialised components, such as CPU or AI cores.
Huawei allegedly used shell companies to acquire chiplets from TSMC, bypassing existing US restrictions. If TSMC had known the true customer, it likely would have withheld the order. Taiwan’s new export controls are designed to ensure stricter oversight of future transactions and prevent repeat deceptions.
The broader geopolitical stakes are clear. Taiwan views the transfer of advanced chips to China as a national security threat, given Beijing’s ambitions to reunify with Taiwan and the potential militarisation of high-end semiconductors.
With Huawei claiming its processors are nearly on par with Western chips—though analysts argue they lag two to three generations behind—the export ban could further isolate China’s chipmakers.
Speculation persists that Taiwan’s move was partly influenced by negotiations with the US to avoid the proposed fine on TSMC, bringing both countries into closer alignment on chip sanctions.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
ChatGPT users faced widespread disruption on 10 June 2025 after a global outage hit OpenAI’s services, affecting both the chatbot and associated APIs. OpenAI has yet to confirm the cause, stating only that users are experiencing high error rates and delays.
The blackout halted work for many creative teams who rely on the tool to generate content and meet deadlines. While some were stalled, others turned to alternatives, sparking a surge in interest in rival AI chatbots.
Searches for DeepSeek, a Chinese-developed AI model, jumped 109% to over 2.1 million on the outage day. Claude AI saw a 95% increase in queries, while interest in Google Gemini and Microsoft Copilot also spiked significantly.
Industry experts say the incident underscores the risk of overdependence on a single platform and highlights the growing maturity of competing AI tools. While frustrating for many, the disruption appears to be fuelling broader competition and diversification in the generative AI market.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Researchers at Waseda University found that three in four users turn to AI for emotional advice, reflecting growing psychological attachment to chatbot companions. Their new tool, the Experiences in Human-AI Relationships Scale, reveals that many users see AI as a steady presence in their lives.
Two patterns of attachment emerged: anxiety, where users fear being emotionally let down by AI, and avoidance, marked by discomfort with emotional closeness. These patterns closely resemble human relationship styles, despite AI’s inability to reciprocate or abandon its users.
Lead researcher Fan Yang warned that emotionally vulnerable individuals could be exploited by platforms encouraging overuse or financial spending. Sudden disruptions in service, he noted, might even trigger feelings akin to grief or separation anxiety.
The study, based on Chinese participants, suggests AI systems might shape user behaviour depending on design and cultural context. Further research is planned to explore links between AI use and long-term well-being, social function, and emotional regulation.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Cybersecurity researchers have uncovered a brief but significant leak of over 600 gigabytes of data, exposing information on millions of Chinese citizens.
The haul, containing WeChat, Alipay, banking, and residential records, is part of a centralised system, possibly aimed at large-scale surveillance instead of a random data breach.
According to research from Cybernews and cybersecurity consultant Bob Diachenko, the data was likely used to build individuals’ detailed behavioural, social and economic profiles.
They warned the information could be exploited for phishing, fraud, blackmail or even disinformation campaigns instead of remaining dormant. Although only 16 datasets were reviewed before the database vanished, they indicated a highly organised and purposeful collection effort.
The source of the leak remains unknown, but the scale and nature of the data suggest it may involve government-linked or state-backed entities rather than lone hackers.
The exposed information could allow malicious actors to track residence locations, financial activity and personal identifiers, placing millions at risk instead of keeping their lives private and secure.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
As millions of high school students across China began the rigorous ‘gaokao’ college entrance exam, the country’s leading tech companies took unprecedented action by disabling AI features on their popular platforms.
Apps from Tencent, ByteDance, and Moonshot AI temporarily blocked functionalities like photo recognition and real-time question answering. This move aimed to prevent students from using AI chatbots to cheat during the critical national examination, which largely dictates university admissions in China.
This year, approximately 13.4 million students are participating in the ‘gaokao,’ a multi-day test that serves as a pivotal determinant for social mobility, particularly for those from rural or lower-income backgrounds.
The immense pressure associated with the exam has historically fueled intense test preparation. However, screenshots circulating on Chinese social media app Rednote confirmed that AI chatbots like Tencent’s YuanBao, ByteDance’s Doubao, and Moonshot AI’s Kimi displayed messages indicating the temporary closure of exam-relevant features to ensure fairness.
China’s ‘gaokao’ exam highlights a balanced approach to AI: promoting its education from a young age, with compulsory instruction in Beijing schools this autumn, while firmly asserting it’s for learning, not cheating. Regulators draw a clear line, reinforcing that AI aids development, but never compromises academic integrity.
This coordinated action by major tech firms reinforces the message that AI has no place in the examination hall, despite China’s broader push to cultivate an AI-literate generation.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
China has proposed creating a ‘green channel’ for rare earth exports to the EU, aiming to ease the impact of its recent restrictions. These materials, vital to electric vehicles and household appliances, have been under stricter export controls since April.
During recent talks, Trade Commissioner Maroš Šefčovič warned Chinese officials that the curbs had caused major disruptions across Europe, describing the situation as alarming. While some progress in licence approvals has been noted, businesses argue it remains inadequate.
The talks come as both sides prepare for a high-stakes EU-China summit and continue negotiations over tariffs on Chinese electric vehicles.
Brussels has imposed duties of up to 35.3%, citing unfair subsidies, while Beijing is pushing for a deal involving minimum pricing to avoid the tariffs.
China’s commerce ministry confirmed the discussions are in their final stage but acknowledged that more work is needed to reach a resolution.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Plans for a vast AI data hub in the UAE have raised security concerns in Washington due to the country’s close ties with China.
The $100 billion Stargate UAE campus, aims to deploy advanced US chips, but US officials are scrutinising potential technology leakage risks.
Although the Trump administration supports the project, bipartisan fears remain about whether the UAE can safeguard US-developed AI and chips from foreign adversaries.
A final agreement has not been reached as both sides negotiate export conditions, with possible restrictions on Nvidia’s hardware.
The initial phase of the Stargate project will activate 200 megawatts of capacity by 2026, but the deal’s future may depend on the UAE’s willingness to accept strict US oversight.
Talks over potential amendments continue, delaying approval of what could become a $500 billion venture.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Researchers at the Hong Kong University of Science and Technology have unveiled a pioneering AI model called MOME for non-invasive breast cancer diagnosis.
Using China’s largest multiparametric MRI breast cancer dataset, MOME performs at a level comparable to seasoned radiologists and is currently undergoing clinical trials in more than ten hospitals.
Among the institutions participating in the validation phase are Shenzhen People’s Hospital, Guangzhou First Municipal People’s Hospital, and Yunnan Cancer Center. Early results show that MOME excels in predicting response to pre-surgical chemotherapy.
The development highlights the region’s growing capabilities in medtech innovation and could reshape diagnostic strategies for breast cancer across Asia. MOME’s clinical success may also pave the way for similar AI-led models in oncology.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The FBI has issued a warning about the resurgence of BADBOX 2.0, a dangerous form of malware infecting millions of consumer electronics globally.
Often preloaded onto low-cost smart TVs, streaming boxes, and IoT devices, primarily from China, the malware grants cyber criminals backdoor access, enabling theft, surveillance, and fraud while remaining essentially undetectable.
BADBOX 2.0 forms part of a massive botnet and can also infect devices through malicious apps and drive-by downloads, especially from unofficial Android stores.
Once activated, the malware enables a range of attacks, including click fraud, fake account creation, DDoS attacks, and the theft of one-time passwords and personal data.
Removing the malware is extremely difficult, as it typically requires flashing new firmware, an option unavailable for most of the affected devices.
Users are urged to check their hardware against a published list of compromised models and to avoid sideloading apps or purchasing unverified connected tech.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Amid heightened cybersecurity tensions in East Asia, exemplified by China’s recent accusations against Taiwan for alleged cyberattacks and bounty offers targeting Taiwanese hackers, Japan is taking proactive steps to strengthen its cyberdefence capabilities. In May, the Japanese parliament approved a cyberdefence law, empowering authorities to monitor international communications through domestic infrastructure and neutralise overseas servers preemptively if they’re suspected of initiating cyberattacks. To complement these legislative measures, Japan is also formulating a comprehensive new cybersecurity strategy by the end of 2025, which will prioritise advanced encryption, proactive threat detection, and enhanced resilience of critical national infrastructure.
Cryptocurrencies continue to reshape Europe’s financial landscape, prompting varying responses from institutions across the continent. While the EU is actively advancing its ambitions for a digital euro, viewing it as a strategic tool to enhance the eurozone’s global currency influence and financial sovereignty, the Bank of Italy has expressed scepticism about current regulatory efforts. Specifically, Italy’s central bank criticised the Markets in Crypto-Assets (MiCA) regulation, pointing out its limited impact on boosting crypto adoption or effectively addressing consumer protection and market stability concerns.
The EU continues its legal battle with tech companies that do not comply with its digital market policies. Namely, the European Commission has imposed a €329 million fine on Berlin-based Delivery Hero and its Spanish subsidiary, Glovo, for participating in what it described as ‘a cartel’ in the online food delivery market.
A content policy correction initiative from France: TikTok has globally banned the hashtag ‘SkinnyTok’ after pressure from the French government, which accused the platform of promoting harmful eating habits among young users.
EU’s International Digital Strategy
On 5 June 2025, the European Commission and the High Representative unveiled a new International Digital Strategy for the EU, aiming to enhance the EU’s global tech competitiveness and security amid a rapidly evolving digital landscape. The strategy emphasises deepening existing Digital Partnerships and Dialogues, establishing new ones, and creating a Digital Partnership Network to foster collaboration on emerging technologies like AI, 5G/6G, semiconductors, and quantum computing, while promoting secure connectivity through initiatives like the Global Gateway. It also introduces an EU Tech Business Offer, a modular approach to combine technology solutions with capacity-building, supporting trusted partners in building secure digital infrastructure, such as submarine cables and AI Factories.
Prioritising cybersecurity, the EU plans to strengthen defences against cyber threats and Foreign Information Manipulation (FIMI) by enhancing resilience and promoting algorithmic transparency on online platforms. The strategy reaffirms the EU’s commitment to shaping global digital governance by advocating for human-centric standards in forums like the UN and G7, ensuring the digital transformation aligns with democratic values and fundamental rights.
Last week in Geneva
In Geneva, the 113th Session of the International Labour Conference (ILC), convened by the International Labour Organisation (ILO), is currently taking place from 2 to 13 June 2025 at the Palais des Nations and ILO headquarters, where delegates are deliberating on pressing global labour issues.
On 5 June, the Giga Research Lab, in collaboration with Giga and the Geneva Innovation Movement, hosted a high-level event titled Bridging the Digital Divide: Cross-Sector Insights for Scaling School Connectivity. Held on Giga premises, the event welcomed invited guests for an exchange of ideas on expanding digital access in education.
On the same day, the International Telecommunications Union (ITU) held a webinar to launch the fourth edition of the landmark report, Greening Digital Companies: Monitoring Emissions and Climate Commitments 2025.
For the main updates, reflections and events, consult the RADAR, the READING CORNER and the UPCOMING EVENTS section below.
As the global race for digital dominance accelerates, the European Union is stepping forward with a bold strategy that blends technological ambition with a commitment to democratic values and international…
The open-architecture Tuna-5 showcases how academic labs and startups can build a functional quantum machine with interoperable components from the local supply chain.
Vodafone is facing one of the largest privacy-related fines in Germany’s telecom sector, revealing deep concerns over how personal data is handled behind the scenes.
The consultation, organised by the the President of the General Assembly, aims to gather input from all relevant WSIS stakeholders on the preparatory process for the review of the implementation…
The session aims to foster open dialogue, encourage active stakeholder engagement, and support continued progress toward the WSIS+20 High-Level Event 2025
Digital Democracy for All (D4ALL): Capacity Building Programme for Armenia The Digital Democracy for All (DD4ALL) project is a collaborative initiative
Diplo/GIP at IGF 2025 The 20th annual meeting of the Internet Governance Forum (IGF) will be hosted by the Government of Norway, in Lillestrøm, from 23 to 27 June.
