China has warned that the United States‘ efforts to pressure other nations into targeting its semiconductor industry will ultimately backfire.
During a regular press briefing, Chinese foreign ministry spokesperson Lin Jian criticised Washington’s approach, arguing that it would disrupt the global semiconductor supply chain and hinder industry development worldwide.
Lin Jian emphasised that such actions not only undermine fair competition but also threaten the stability of the global technology market.
Tensions between the US and China over semiconductor access have escalated in recent years, with Washington implementing export controls and encouraging its allies to adopt similar measures.
Beijing has consistently opposed these restrictions, calling them politically motivated attempts to curb China’s technological progress.
For more information on these topics, visit diplomacy.edu.
Taiwan‘s economy minister stated that the government has not received any official information regarding a potential overseas investment by chip giant TSMC in Intel or the United States.
Media reports have suggested that TSMC, the world’s largest contract chipmaker, has been in talks to take a stake in Intel, but neither company has confirmed the speculation. Any significant foreign investment by a Taiwanese company requires government approval through the economy ministry’s investment review commission.
Speaking to reporters in Taipei, Economy Minister Kuo Jyh-huei clarified that the ministry cannot comment on market rumours without receiving an official report from TSMC. He confirmed that no application or formal communication has been submitted so far.
Kuo also highlighted that, given the foreign investment nature of such a deal, a formal review process would be necessary before any discussions could take place.
The potential deal has gained attention amid heightened US-Taiwan trade tensions. Former US President Donald Trump previously criticised Taiwan for its dominance in the semiconductor market and expressed a desire to bring more manufacturing back to the United States.
Meanwhile, Taiwan continues to run a significant trade surplus with the US, adding further complexity to any potential cross-border investment.
For more information on these topics, visit diplomacy.edu.
Stronger semiconductor restrictions on China are being considered by Donald Trump’s team, expanding on measures introduced during Joe Biden’s presidency. Bloomberg News reported that discussions have taken place about tightening controls on chip exports and maintenance.
US officials have recently met with their Japanese and Dutch counterparts to explore limits on engineers from Tokyo Electron and ASML working on semiconductor equipment in China.
Additional restrictions on Nvidia chip exports are also under consideration, aiming to further curb Beijing’s technological capabilities.
Trump’s team is pushing for greater alignment with key allies to mirror restrictions already imposed on American chipmakers, such as Lam Research, KLA, and Applied Materials. Tokyo Electron, ASML, and various government officials have either declined or not responded to requests for comment.
For more information on these topics, visit diplomacy.edu.
Microsoft has reportedly scrapped leases for significant data centre capacity in the United States, raising concerns about a potential slowdown in its AI infrastructure expansion.
TD Cowen analysts revealed that the company cancelled leases amounting to “a couple of hundred megawatts” with at least two private data-centre operators. The move has added weight to investor worries that the AI-driven market surge may be losing momentum.
Despite the lease cancellations, Microsoft maintains its commitment to invest over $80 billion in AI and cloud capacity this fiscal year.
A company spokesperson confirmed the investment plan remains intact, noting that adjustments to infrastructure are part of strategic planning rather than a broader scale-back.
Analysts suggest the lease cancellations might reflect a shift in Microsoft’s data centre strategy following years of aggressive expansion to meet AI demand.
Supply chain constraints had previously forced the company to secure excess capacity, sometimes at premium rates.
However, with growing investor scepticism around the costs of AI infrastructure and emerging competition from low-cost Chinese firms like DeepSeek, Microsoft’s recalibration has intensified concerns about the long-term sustainability of the AI boom.
For more information on these topics, visit diplomacy.edu.
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.
For more information on these topics, visit diplomacy.edu.
Tesla has introduced a long-awaited update to its Autopilot software in China, adding city navigation features that allow for automatic lane changes and traffic light detection. However, many Chinese Tesla owners were disappointed, expressing that the update did not meet the high expectations set by CEO Elon Musk. The new features, while similar to the company’s Full Self-Driving (FSD) system, are less advanced in China due to insufficient data on local roads and traffic rules.
Tesla faces stiff competition from Chinese automakers like Huawei, Xiaomi, and BYD, which offer advanced driver-assistance systems at lower prices or even for free. These rivals have already launched vehicles capable of navigating complex Chinese traffic, leaving Tesla behind in the race for smart-driving technology. Despite this, Tesla continues to charge its customers nearly $9,000 for the limited version of its FSD software, which many feel does not live up to the promises made by the company.
The delays in rolling out full FSD in China are partly due to regulatory hurdles and restrictions on data transfer between China and the US. Tesla is working on gaining approval from Beijing for its advanced systems, but China currently only requires registration for level-two autonomous features like Autopilot. Tesla is also looking into establishing a data centre in China to train its AI software, though the process has been complicated by strict Chinese data laws.
While Tesla’s Autopilot update is seen as a step forward, it faces growing criticism for not keeping pace with the rapidly evolving smart-driving features offered by local competitors. Tesla’s challenge in China highlights the complex balance the company must maintain between innovation, regulatory compliance, and local competition.
For more information on these topics, visit diplomacy.edu.
US President Donald Trump has directed his trade officials to revive investigations into digital service taxes imposed by foreign countries on American tech giants.
The move could lead to new tariffs on imports from nations like France, Canada, and India, which have introduced taxes targeting major firms such as Google, Meta, Apple, and Amazon. Trump argues that these levies unfairly exploit US companies and has vowed to protect America’s tax base from foreign appropriation.
The renewed probe follows previous investigations during Trump’s first term, where the US Trade Representative found that several countries discriminated against American firms, paving the way for potential retaliatory tariffs.
While the Biden administration initially imposed 25% tariffs on goods from countries with digital taxes, these duties were suspended to allow for global tax negotiations. However, with talks stalling and the US rejecting the 15% global minimum tax, Trump has now abandoned the deal entirely.
As tensions grow, the US could impose fresh tariffs on billions of dollars worth of foreign imports. Trump has not yet revealed the specific tariff rates or the value of goods that may be targeted in this latest round of trade actions.
For more information on these topics, visit diplomacy.edu.
The National Institute of Standards and Technology is set to cut up to 500 staff members, a move that could devastate the US AI Safety Institute and its related programme, Chips for America. Recent reports indicate that these cuts are primarily aimed at probationary employees, with some already receiving verbal notice of termination.
Established under a previous US presidential directive, the AI Safety Institute has faced an uncertain future ever since its inception. The current government’s plans to reduce its workforce are raising concerns among experts, who warn that such reductions will hinder the nation’s capacity to develop critical safety standards in AI development.
Critics from various AI safety and policy organisations have voiced their alarm, emphasising that these cuts occur at a time when specialised expertise is essential. The potential loss of institutional knowledge could leave the government ill-equipped to manage emerging risks in artificial intelligence.
For more information on these topics, visit diplomacy.edu.
Trump Media & Technology Group and Rumble have filed an emergency motion in a US court against Brazilian Supreme Court Justice Alexandre de Moraes. The firms argue that his orders violate US sovereignty, constitutional rights, and laws.
The dispute began when Moraes ordered Rumble to suspend its services in Brazil until it complied with local regulations. The judge also threatened criminal charges against Rumble’s CEO, Chris Pavlovski, for non-compliance. The company had previously sued Moraes in a US court over alleged illegal censorship.
Moraes has been a key figure in Brazil’s crackdown on disinformation, particularly during Jair Bolsonaro’s presidency.
He has also ordered fines and restrictions on accounts linked to Bolsonaro allies, including Allan dos Santos, who is under investigation for spreading false information.
The Brazilian Supreme Court has yet to respond to the motion, while Rumble and Trump Media continue their legal battle in the US.
For more information on these topics, visit diplomacy.edu.
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.
For more information on these topics, visit diplomacy.edu.
