As disclosed in a new press release—issued by the US Commerce Department—TSMC's North American operation has started another expansion. Last month, Taiwan's leading chip foundry committed a substantial $100 billion investment—eventually leading to a greater production footprint in Phoenix, Arizona. Reports suggest that ground has already been broken, in a low-key manner—as of yesterday (April 29)—at a planned third location, only hours after TSMC's receiving of permits—aka a "thumbs up" from the US government. According to local news outlets, key administrative representatives were in attendance to witness the initiation of construction work. TSMC's third plant is destined to pump out cutting-edge products via a 2 nm (N2) process technology, with Apple, NVIDIA and AMD confirmed as "front of the queue" customers. Despite recent fanfare and celebrations, industry analysts reckon that it will take up to a decade for the foundry's North American operation to solidify a dependable supply chain. In the interim, certain elements will require shipping to overseas locations—for packaging and finalization purposes.

If you're a fan of science fiction movies, you've probably seen the story where countries come together to avert or overcome a crisis. These films usually begin with some unexpected dangerous event—maybe an alien invasion, a pandemic or rogue robots. Earth's smartest scientists and engineers work non-stop to discover a solution. Governments pool their resources and, in the end—usually at the very last possible second—humanity triumphs. This might seem like a Hollywood fantasy, but believe it or not, this movie plot is playing out in real life right now. No, we aren't facing an alien invasion or fighting off AI overlords, but the earth does face some pretty serious crises. And nations of the world are working together to develop technology to help address those problems.

For example, the LUMI supercomputer, located in Kajaani, Finland receives a portion of its funding from the European High-Performance Computing Joint Undertaking (EuroHPC JU), an effort that pools EU resources to create/provide exascale computing platforms. Additional funding comes from LUMI consortium countries, which include Finland, Belgium, Czech Republic, Denmark, Estonia, Iceland, the Netherlands, Norway, Poland, Sweden and Switzerland. According to the Top500 list published in November 2024, LUMI is the 8th fastest supercomputer in the world and the fastest supercomputer in Europe. The final configuration of the LUMI supercomputer can sustain 380 petaflops of performance, which is roughly the equivalent of 1.5 million high-end laptops. It's based on the HPE Cray EX platform with AMD EPYC CPUs and AMD Instinct MI250X GPUs. According to the Green500 list, LUMI is also the world's 25th most energy efficient supercomputer. It runs on 100% hydropower and the waste heat from the facility is recaptured to heat about 100 homes in Kajaani.

As the US works to bring more semiconductor manufacturing back home, the machines needed to turn silicon into the world's most advanced processors are becoming pricier and harder to get, thanks to tariffs. Foundries building new fabs report that the specialized equipment they rely on, everything from extreme ultraviolet (EUV) lithography steppers to chemical vapor deposition chambers, carries a roughly 15% premium compared with similar gear sold overseas. Several forces are at play. The raw materials, high‑grade quartz for vacuum enclosures, and exotic metal alloys for precision optics have climbed in price. At the same time, key components like ultra‑accurate motion stages and alignment sensors are in short supply, sometimes stretching lead times for critical subsystems well beyond 18 months. For a fab racing to move from a 7 nm to a 5 nm process, those delays can mean missing tight ramp‑up targets and pushing out product launches.

Smaller chipmakers feel the squeeze the hardest. With fewer orders to negotiate volume discounts, second‑tier foundries may see their capital budgets balloon by 20 percent or more. In response, some are taking a mixed approach, sourcing commoditized tools such as oxidation furnaces and rapid thermal processors from multiple suppliers while reserving single‑vendor deals for high‑stakes systems like EUV scanners. Government support through the CHIPS Act offers a partial safety net, helping to subsidize capital expenditures. Yet even with grants and tax credits, the challenges will remain. Success will hinge on tight coordination between fabs, equipment makers, and policymakers to tame rising costs, shorten delivery schedules, and keep America's chip renaissance on track.

TSMC is confronting a potential $1 billion-plus penalty from the US Commerce Department after inadvertently fabricating compute chiplets later integrated into Huawei's Ascend 910 AI processor. The fine, potentially reaching twice the value of unauthorized shipments, reflects the scale of components that circumvented export controls limiting Chinese access to advanced semiconductor technology. The regulatory breach originated in late 2023 when TSMC processed orders from Sophgo, a design partner of crypto-mining firm Bitmain. These chiplets, which are manufactured on advanced process nodes and contain tens of billions of transistors, were identified in TechInsights teardown analysis of Huawei Ascend 910 AI accelerator, revealing a supply chain vulnerability where TSMC lacked visibility into the components' end-use.

Upon discovery of the diversion, TSMC immediately halted Sophgo shipments and engaged in discussions with Commerce Department officials. By January, Sophgo had been added to the Entity List, limiting its access to US semiconductor technology. A Center for Strategic and International Studies report revealed that Huawei obtained approximately two million Ascend 910B logic dies through shell companies that misled TSMC. Huawei's preference for TSMC-made dies was due to manufacturing challenges in domestic chip production. This incident has forced TSMC to strengthen its customer vetting protocols, including terminating its relationship with Singapore-based PowerAIR following internal compliance reviews. The enforcement process typically begins with a proposed charging letter detailing violations and penalty calculations, followed by a 30-day response period. As Washington tightens restrictions on AI processor exports to Chinese entities, semiconductor manufacturers are under increased pressure to implement rigorous controls throughout multinational supply chains.

Japan's Nikkan Kogyo Shimbun newspaper believes that Rapidus will be installing a grand total of ten "extreme ultraviolet (EUV) exposure tools" at two cutting-edge semiconductor production sites. Government subsidies have assisted in boosting Japan's semiconductor industry to new highs—Rapidus is reportedly catching up with the likes of TSMC. Its 2 nm-class process node could be up and running by 2027, at the currently under-construction Innovative Integration for Manufacturing One (IIM-1) facility. This location welcomed its first ASML NXE:3800E EUV lithography machine last December—this occasion marked the debut deployment of said technology in Japan.

The Nikkan Kogyo Shimbun report cites statements made by Rapidus CEO, Atsuyoshi Koike—according to the boss, ten new machines will be distributed across two fabrication facilities: at the aforementioned IIM-1, as well as IIM-2. The second location is expected to come online not long after the completion of IIM-1. It is not clear whether the foundries will be installing more examples of ASML's NXE:3800E model, and an exact timeframe was not disclosed. An older Nikkei article suggests that a trial run—utilizing 2 nm generation gate-all-around (GAA) technology—will begin around April (2025) at the primary Rapidus fab. A theorized schedule proposes that initial samples are due for shipment to Broadcom (in the USA) by mid-year.

Companies and organizations are increasingly using AI to protect their customers and thwart the efforts of fraudsters around the world. Voice security company Hiya found that 550 million scam calls were placed per week in 2023, with INTERPOL estimating that scammers stole $1 trillion from victims that same year. In the U.S., one of four noncontact-list calls were flagged as suspected spam, with fraudsters often luring people into Venmo-related or extended warranty scams.

Traditional methods of fraud detection include rules-based systems, statistical modeling and manual reviews. These methods have struggled to scale to the growing volume of fraud in the digital era without sacrificing speed and accuracy. For instance, rules-based systems often have high false-positive rates, statistical modeling can be time-consuming and resource-intensive, and manual reviews can't scale rapidly enough.

Intel Foundry has announced the onboarding of new defense industrial base (DIB) customers, Trusted Semiconductor Solutions and Reliable MicroSystems, as part of the third phase of the Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) efforts under the Trusted & Assured Microelectronics (T&AM) Program in the Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&E)). The RAMP-C project, awarded through the Strategic & Spectrum Missions Advanced Resilient Trusted Systems (S²MARTS) Other Transaction Authority (OTA), allows DIB customers to take advantage of Intel Foundry's leading-edge Intel 18A process technology and advanced packaging for prototypes and high-volume manufacturing of commercial and DIB products for the U.S. Department of Defense (DoD).

"We are very excited to welcome Trusted Semiconductor Solutions and Reliable MicroSystems to the RAMP-C project we are engaged in with the DoD. The collaboration will drive cutting-edge, secure semiconductor solutions essential for our nation's security, economic growth and technological leadership. We are proud of the pivotal role Intel Foundry plays in supporting U.S. national defense and look forward to working closely with our newest DIB customers to enable their innovations with our leading-edge Intel 18A technology," said Kapil Wadhera, vice president of Intel Foundry and general manager of Aerospace, Defense and Government Business Group.

Last November, Taiwan's National Science and Technology Council indicated that it was considering a relaxation of "legal restrictions on transferring leading-edge process technology overseas." TSMC is the nation's most prized chip foundry, but new manufacturing operations are spreading across the globe. The very best node processes—currently TSMC's advanced 2 nm (N2)—have been restricted to home turf, yet global tensions have prompted the Taiwanese government to reconsider its guarded approach. A freshly published Taipei Times report has focused on an important announcement made at a recent government press conference. Taiwan's Minister of Economic Affairs of Taiwan, J.W. Kuo, stated that TSMC is now allowed to manufacture 2 nm chips on foreign soil—according to him, the foundry behemoth is "cautiously" evaluating an investment of roughly $28 to 30 (USD) billion into 2-nanometer production facilities Stateside.

His colleagues have worked hard—in the past—on preserving the country's "Silicon Shield," but fresh adjustments are sweeping in. Kuo commented: "those were old-time rules. Times have changed." TSMC's—allegedly costly—North American hub is reportedly marked down for a "by 2030" push into 2 nm process territories. Taiwan's Economic Affairs minister continued with his reasonings: "Private businesses should make their own business decisions based on their own technological progress...The basic principle is that businesses can make profits from their overseas investments. TSMC is building factories in the US with the aim of serving its US customers, as 60 percent of the world's chip-designing companies are based in the US." He also downplayed concerns regarding possible upcoming shifts in US trade policy making—Taiwan's "strong technological capabilities" are expected to weather the storm. Newly implemented US trade tariffs are expected to have only a "minor impact."

For decades, leadership in computing and software ecosystems has been a cornerstone of American strength and influence worldwide. The federal government has wisely refrained from dictating the design, marketing and sale of mainstream computers and software—key drivers of innovation and economic growth. The first Trump Administration laid the foundation for America's current strength and success in AI, fostering an environment where U.S. industry could compete and win on merit without compromising national security. As a result, mainstream AI has become an integral part of every new application, driving economic growth, promoting U.S. interests and ensuring American leadership in cutting-edge technology.

Today, companies, startups and universities around the world are tapping mainstream AI to advance healthcare, agriculture, manufacturing, education and countless other fields, driving economic growth and unlocking the potential of nations. Built on American technology, the adoption of AI around the world fuels growth and opportunity for industries at home and abroad. That global progress is now in jeopardy. The Biden Administration now seeks to restrict access to mainstream computing applications with its unprecedented and misguided "AI Diffusion" rule, which threatens to derail innovation and economic growth worldwide.

The U.S. Department of Commerce will award GlobalWafers America and MEMC, LLC, U.S. subsidiaries of Taiwan-based GlobalWafers Co., Ltd., up to $406 million in direct funding under the CHIPS Incentives Program's Funding Opportunity for Commercial Fabrication Facilities.

The award will support planned investments of $4 billion in advanced semiconductor wafer manufacturing facilities in Sherman, Texas and St. Peters, Missouri. The Department will disburse the funds based on GWA's and MEMC's completion of project milestones over a multi-year timeframe.

The CHERI Alliance CIC (Community Interest Company) today announced its official launch and the expansion of its membership, welcoming Chevin Technology (UK), Critical Technologies (USA), the Defence Science and Technology Laboratory (DSTL, UK), Google (USA), Light Momentum Technology Corporation (Taiwan), National Cyber Security Centre (NCSC, a part of GCHQ, UK), Parvat Infotech (India), SRI International (USA), TechWorks (UK), Trusted Computer Center of Excellence (USA), the University of Birmingham (UK), and the University of Glasgow (UK) as founding members.

Founded to unite hardware security leaders and system developers, the CHERI Alliance aims to establish CHERI (Capability Hardware Enhanced RISC Instructions) as the new standard for memory safety and scalable software compartmentalization.

According to a recent Reuters report, the US government, under Biden's administration, will allow a few criteria-matching semiconductor fabs to circumvent environmental protection laws. On Wednesday, President Joe Biden signed legislation that effectively enables these fabs to not follow the strict regulations designed for maximum preservation of the environment. The Semiconductor Industry Association has noted that without this new legislation, companies that are extending facilities on US soil would be significantly slowed down due to the National Environmental Policy Act (NEPA) of 1969. The CHIPS Act's primary force driver isn't just domestic production but near-future completion so that future geopolitical shifts don't impact US companies. The speed of getting permits to manufacture advanced chips is essential for every CHIPS Act recipient company, like Intel, Samsung, TSMC, and Micron.

The United States Federal Trade Commission (FTC) has taken legal action against software giant Adobe and two of its top executives for allegedly deceiving consumers about the actual costs of its popular subscription services and deliberately obstructing cancellations. In a federal court complaint filed by the Department of Justice at the FTC's request, the commission accuses Adobe of obscuring hefty early termination fees and making it excessively difficult for customers to cancel their subscriptions. The complaint alleges that when signing up for subscriptions on Adobe's website, the company steers consumers toward the "annual paid monthly" option, pre-selecting it as the default while burying details about the 50% early termination fee for canceling within the first year. Customers have lodged numerous complaints, saying they were unaware the plan committed them for a full year.

According to the FTC, even when customers did attempt to cancel, Adobe forced them to navigate a bureaucratic maze of web pages, unhelpful customer service reps, dropped calls, and transfers. Some customers who thought they had successfully canceled continued to be charged. Samuel Levine, Director of the FTC's Bureau of Consumer Protection, noted, "Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles." The complaint charges that these deceptive "dark patterns" violate the Restore Online Shoppers' Confidence Act. It names Adobe's President of Digital Media, David Wadhwani, and Vice President Maninder Sawhney as co-defendants for their oversight roles in these shady business practices.

The US Department of the Treasury on Wednesday, sanctioned 16 Chinese tech companies involved in supporting the Russian wartime economy, or supplying goods to blacklisted Russian firms, as the war in Ukraine rages on. A surprising name on this list is Beijing Deepcool Industries, the company behind the popular PC cooling, casing, and power supply brand Deepcool. A US State Department release announcing the sanctions, described Deepcool as supplying $1 million worth common high-priority items list (CHPL) goods. These are items that could directly or indirectly support the Russian war-effort in Ukraine. "BEIJING DEEPCOOL INDUSTRIES CO LTD is a PRC-based company involved in the supply of over $1 million worth of CHPL items to Russian companies, including the U.S.-designated, Russia-based AKTSIONERNOE OBSHCHESTVO TASKOM and OOO NOVYI AI TI PROEKT," the State Department release says.

Meanwhile, the executive aspect of the sanctions are handled by the Treasury Department, which restricts all transactions by US firms to the 16 newly sanctioned Chinese companies, which include Deepcool. What this means is that the US-end of Deepcool must immediately cease operations, as it cannot transact any business with its parent company in China. Sale of Deepcool product will also stop, as US residents cannot conduct any business with the company. This could also mean that the US-based subsidiary of Deepcool may not be in a position to provide aftersales support to existing customers in the country.

According to sources familiar with the matter and reported by Bloomberg, the Biden administration is considering imposing further export controls to limit China's ability to acquire advanced semiconductor technologies crucial for developing AI systems. Gate-all-around (GAA) transistor technology and high-bandwidth memory (HBM) chips are at the center of the proposed restrictions. These cutting-edge components play a pivotal role in creating powerful AI accelerators. GAA transistors, a key feature in next-generation chips, promise substantial improvements in power efficiency and processing speeds. Meanwhile, HBM chips enable high-speed data transfer between a processor and memory. While existing sanctions prevent American firms from supplying Chinese companies with equipment for manufacturing leading-edge chips, concerns persist that China could still attain advanced capabilities through other means.

For instance, China's leading chipmaker, SMIC, could potentially integrate GAA transistors into its existing 7 nm process node, markedly enhancing performance. Access to HBM would further augment China's ability to develop AI accelerators on par with cutting-edge offerings from US firms. The reflections within the Biden administration show a strategic effort to preserve America's technological edge by denying China access to key semiconductor innovations. However, implementing such stringent export controls is a delicate balancing act, as it risks heightening tensions and prompting Chinese retaliation. No final decision has been made, and officials continue weighing the proposed restrictions' pros and cons. Nonetheless, the discussions highlight the pivotal role that semiconductor technology plays in the great power rivalry between the US and China, especially in the AI era.

Malaysia is firmly positioning itself as a hub for semiconductor investment, with Prime Minister Anwar Ibrahim stating the country aims to attract over $100 billion in investment into the industry. This aligns with recent trends in the region, such as China's announcement of a massive $47.5 billion investment fund or Micron's plans to build a new chip factory in Hiroshima, Japan by the end of 2027.

As a major player accounting for 13% of global chip testing and packaging, Malaysia has benefited from strong investments by Intel ($7 billion for an advanced packaging plant) and Infineon ($5.4 billion to expand its power chip plant). The country now hopes around 10 local companies will make substantial investments in new facilities focused on chip design and advanced packaging. To support this goal, the Malaysian government plans to allocate $5.3 billion in fiscal backing, along with tax breaks and subsidies. It is targeting these investments to generate revenues between $210 million and $1 billion for the semiconductor industry in Malaysia.

SK hynix Inc., the world's leading producer of High-Bandwidth Memory (HBM) chips, announced today that it will invest an estimated $3.87 billion in West Lafayette, Indiana to build an advanced packaging fabrication and R&D facility for AI products. The project, the first of its kind in the United States, is expected to drive innovation in the nation's AI supply chain, while bringing more than a thousand new jobs to the region.

The company held an investment agreement ceremony with officials from Indiana State, Purdue University, and the U.S. government at Purdue University in West Lafayette on the 3rd and officially announced the plan. At the event, officials from each party including Governor of Indiana Eric Holcomb, Senator Todd Young, Director of the White House Office of Science and Technology Policy Arati Prabhakar, Assistant Secretary of Commerce Arun Venkataraman, Secretary of Commerce State of Indiana David Rosenberg, Purdue University President Mung Chiang, Chairman of Purdue Research Foundation Mitch Daniels, Mayor of city of West Lafayette Erin Easter, Ambassador of the Republic of Korea to the United States Hyundong Cho, Consul General of the Republic of Korea in Chicago Junghan Kim, SK vice chairman Jeong Joon Yu, SK hynix CEO Kwak Noh-Jung and SK hynix Head of Package & Test Choi Woojin, participated.

The expansion of AI technology affects not only the production and demand for graphics cards but also the electricity grid that powers them. Data centers hosting thousands of GPUs are becoming more common, and the industry has been building new facilities for GPU-enhanced servers to serve the need for more AI. However, these powerful GPUs often consume over 500 Watts per single card, and NVIDIA's latest Blackwell B200 GPU has a TGP of 1000 Watts or a single kilowatt. These kilowatt GPUs will be present in data centers with 10s of thousands of cards, resulting in multi-megawatt facilities. To combat the load on the national electricity grid, US President Joe Biden's administration has been discussing with big tech to re-evaluate their power sources, possibly using smaller nuclear plants. According to an Axios interview with Energy Secretary Jennifer Granholm, she has noted that "AI itself isn't a problem because AI could help to solve the problem." However, the problem is the load-bearing of the national electricity grid, which can't sustain the rapid expansion of the AI data centers.

The Department of Energy (DOE) has been reportedly talking with firms, most notably hyperscalers like Microsoft, Google, and Amazon, to start considering nuclear fusion and fission power plants to satisfy the need for AI expansion. We have already discussed the plan by Microsoft to embed a nuclear reactor near its data center facility and help manage the load of thousands of GPUs running AI training/inference. However, this time, it is not just Microsoft. Other tech giants are reportedly thinking about nuclear as well. They all need to offload their AI expansion from the US national power grid and develop a nuclear solution. Nuclear power is a mere 20% of the US power sourcing, and DOE is currently financing a Holtec Palisades 800-MW electric nuclear generating station with $1.52 billion in funds for restoration and resumption of service. Microsoft is investing in a Small Modular Reactors (SMRs) microreactor energy strategy, which could be an example for other big tech companies to follow.

Lead a nation of your design through a history shaped by your choices in Millennia, a new 4x historical strategy game from C Prompt Games and Paradox Interactive. Guide your people from the stone to a near future, maybe taking detours through historical ages of plague or steampunk technology in Millennia, available now. From us at Paradox Interactive & C Prompt Games, we hope you love the game!

Define history; turn by turn and age by age. In Millennia, you start with a blank slate on which to write a new society and culture. Choose traits and government forms as you accumulate power through a variety of domains (government, war, art, etc.), using these powers to expand and exploit the world around you. Develop a production chain to transform common resources into valuable goods, and then trade the surplus to a distant settlement, boosting its population and production. Define your nation as a land of warriors, explorers or learners as you adopt new traits over time.

According to a report by the Financial Times, China has banned the use of Intel and AMD chips in government computers. The decision, which aims to reduce reliance on foreign technology and boost domestic semiconductor production, is expected to have far-reaching implications for the global tech industry and geopolitical relations. The Chinese government has instructed PC suppliers to replace foreign-made CPUs with domestic alternatives in all government computers within the next two years. This directive is part of China's broader strategy to achieve self-sufficiency in critical technologies and reduce its vulnerability to potential supply chain disruptions or geopolitical tensions. The ban on Intel and AMD chips is likely to significantly impact the two companies, as China represents a substantial market for their products.

However, the move also presents an opportunity for Chinese semiconductor manufacturers like Loongson and Sunway to expand their market share and accelerate the development of their next-generation chip technologies. By reducing its dependence on foreign technology, China aims to strengthen its position in the global tech landscape and mitigate the risks associated with potential sanctions or export controls. As China pushes for self-sufficiency in semiconductors, the global technology industry will likely experience a shift in supply chains and increased competition from Chinese manufacturers. This development may also prompt other countries to reevaluate their reliance on foreign technology and invest in domestic production capabilities, potentially leading to a more fragmented and competitive global tech market.

According to the latest report by Reuters, the US government is preparing to announce a multi-billion dollar grant for Intel's chip manufacturing operations in Arizona next week, possibly worth more than $10 billion. US President Joe Biden and Commerce Secretary Gina Raimondo will make the announcement, which is part of the 2022 CHIPS and Science Act aimed at expanding US chip production and reducing dependence on China and Taiwan manufacturing. The exact amount of the grant has yet to be confirmed, but rumors suggest it could exceed $10 billion, making it the most significant award yet under the CHIPS Act. The funding will include grants and loans to bolster Intel's competitive position and support the company's US semiconductor manufacturing expansion plans. This comes as a surprise just a day after the Pentagon reportedly refused to invest $2.5 billion in Intel as a part of a secret defense grant.

Intel has been investing significantly in its US expansion, recently opening a $3.5 billion advanced packaging facility in New Mexico, supposed to create extravagant packaging technology like Foveros and EMIB. The chipmaker is also expanding its semiconductor manufacturing capacity in Arizona, with plans to build new fabs in the state. Arizona is quickly becoming a significant hub for semiconductor manufacturing in the United States. In addition to Intel's expansion, Taiwan Semiconductor Manufacturing Company (TSMC) is also building new fabs in the state, attracting supply partners to the region. CHIPS Act has a total funding capacity of $39 billion allocated for semiconductor production and $11 billion for research and development. The Intel grant will likely cover the production part, as Team Blue has been reshaping its business units with the Intel Product and Intel Foundry segments.

Global tensions have caused big semiconductor manufacturers to consider a diversification of production facilities outside of China—most news headlines have concentrated on new operations or advancement/upgrades in the USA, India and Japan. As reported by the Financial Times, Malaysia has quietly established itself as a haven for big chip firms—a "free-trade zone" on the island of Penang is home to fancy Intel and Micron production operations. Team Blue's emerging next-gen Battlemage GPU was spotted during a summer 2023 press event—at the time, HardwareLuxx reported the existence of a "BMG G10" die in Intel Malaysia's Failure Lab. Micron celebrated its 45th anniversary last October, with the opening of a new cutting-edge assembly and test facility in Batu Kawan, Penang. The two firms—and a few others—established roots in Malaysia decades ago, but future investments are set to boost the nation's semiconductor industry.

According to Tom's Hardware: "Intel will spend a whopping $7 billion on new, Malaysian chip assembly and testing facilities. The overall total of foreign Malaysian investment in 2023 was $12.8 billion, and that exceeded its seven-year combined total from 2013 to 2020." Anwar Ibrahim, the country's Prime Minister, is keen to see manufacturing advance to a higher-value tier—a February FT.com interview reveals that this is a "critical goal" for his administration. The establishment of a front-end semiconductor manufacturing plant would be welcomed the most—Zafrul Aziz, Trade Minister of Malaysia, stated (to FT): "I am optimistic we will attract more than one. All it takes is one to kick-start a wave." Historically, Malaysian facilities have been created to deal with the back end of semiconductor supply chains—e.g. packing, assembling and testing components. Company leaderships consider these activities to be of lower value, due to their less complex nature. Certain foreign investments, into Malaysian plants, have come from Chinese firms—a growing presence of PRC-owned plants could complicate matters. The Financial Times article presents a possible future scenario, with the US Government stepping in...if alarmed to a certain degree.

A 2019-signed export license has allowed Intel to supply laptop processors to Huawei, under an exclusive deal—this US Government approved arrangement was not viewed favorably by AMD. The rival chipmaker apparently missed out on the securing of a similar trade license back in 2021. According to a new Reuters report, Team Red and a handful of supporters have attempted to revoke Intel's license—worth hundreds of millions of dollars. Two anonymous sources allege that: "Intel has survived an effort to halt chip sales to Huawei...giving one of the world's largest chipmakers more time to sell to the heavily sanctioned Chinese telecoms company." Intel and Huawei's symbiosis is set to end later this year—folks on the inside reckon that the current US administration will not approve a renewal. Reports suggest that Qualcomm is not anticipating a renewal either—Huawei is an approved buyer of Snapdragon chips, but industry whispers indicate an eventual shift to in-house fare.

Intel, Huawei, US Commerce Department and the White House have declined to comment on the aforementioned scenario. Reuters also sent a query to AMD, but the publication did not receive a response. Earlier last year, a government official revealed that "Huawei's licensing policy" was under review, alongside a general push to scrap a number of trade deals. According to insiders, the same government official allegedly told companies—in private—that the US Commerce Department would fix "the licensing discrepancy." Another anonymous source believes that the agency shelved these plans late last year, for reasons unknown—they stressed that there is potential for a revival. Given the upcoming expiry of Intel and Huawei's arrangement—within the year—it makes little sense to implement a drastic change.

SMIC, China's largest semiconductor manufacturer, is reportedly assembling a dedicated team to develop 3 nm semiconductor node technology, following reports of the company setting up 5 nm chip production for Huawei later this year. This move is part of SMIC's efforts to achieve independence from foreign companies and reduce its reliance on US technology. According to a report from Joongang, SMIC's initial goal is to commence operations of its 5 nm production line, which will mass-produce Huawei chipsets for various products, including AI silicon. However, SMIC is already looking beyond the 5 nm node. The company has assembled an internal research and development team to begin work on the next-generation 3 nm node.

The Chinese manufacturer is expected to accomplish this using existing DUV machinery, as ASML, the sole supplier of advanced EUV technology, is prohibited from providing equipment to Chinese companies due to US restrictions. It is reported that one of the biggest challenges facing SMIC is the potential for low yields and high production costs. The company is seeking substantial subsidies from the Chinese government to overcome these obstacles. Receiving government subsidies will be crucial for SMIC, especially considering that its 5 nm chips are expected to be up to 50 percent more expensive than TSMC's due to the use of older DUV equipment. The first 3 nm wafers from SMIC are not expected to roll out for several years, as the company will prioritize the commercialization of Huawei's 5 nm chips. This ambitious undertaking by SMIC represents a significant challenge for the company as it strives to reduce its dependence on foreign semiconductor technology and establish itself as an essential player in the global manufacturing industry.

IBM has announced the official opening of the new IBM X-Force Cyber Range in Washington, DC. The range includes new custom training exercises specifically designed to help U.S. federal agencies, their suppliers and critical infrastructure organizations more effectively respond to persistent and disruptive cyberattacks, and threats posed by AI. The state-of-the-art facility is designed to help everyone from legal and mission-critical leaders, to the C-Suite and technical security leaders prepare for a real-world cyber incident. According to IBM's 2023 Cost of a Data Breach report the global average cost of a data breach reached $4.45 million, with the US facing the highest breach costs across all regions. Organizations that formed an incident response (IR) team and tested their IR plan experienced faster incident response times and lower costs than organizations that did neither. In fact, the report found that high levels of IR planning and testing saved industry and government nearly $1.5 million in breach costs and 54 days from the data breach lifecycle.

"From national security threats to supply chain disruptions impacting the goods and services we rely on every day, cyberattacks on government and critical infrastructure can have ramifications that go far beyond the balance sheet," said Alice Fakir, Partner, Lead of Cybersecurity Services, US Federal Market for IBM Consulting. "The elite and highly customizable cyber response training we provide at our new DC range helps organizations and federal agencies better defend against existing and emerging threats, and also addresses federal mandates like those in the Biden Administration's Executive Order 14028 focused on improving the nation's cybersecurity."