“We’re all living inside the president’s head, and nobody knows anything,” wrote The Atlantic recently – an encapsulation of the market turmoil surrounding Trump’s tech tariffs.

The tariff policy has intensified rapidly, marking an escalation from the president’s previous trade approach. The latest threat to impose an additional 50% duty on Chinese imports unless Beijing withdraws its retaliatory measures would push the total tariff rate to 104%, more than quadrupling the cost of importing Chinese goods into the US.

Beijing’s 34% retaliatory tariffs, imposed in direct response to Trump’s initial tariff announcements, represent China’s own calculated approach – not seeking to match the complete US duties but sending a message that it won’t absorb economic punishment without a proportional response.

China’s Commerce Ministry stated, they “firmly oppose” the US threats and will “resolutely respond,” calling Trump’s approach “doubling down on its mistakes” and “exposing its nature of coercion.”

The severity of this action goes far beyond the 25% peak rates seen during Trump’s first administration, when economists warned of significant market disruption. Now, global technology supply chains that took decades to optimise face the prospect of a complete restructuring, as duties exceeding 100% would effectively close off the world’s largest consumer market to Chinese manufacturers.

This represents a continuation of Trump’s first-term policies and an amplification that creates immediate consequences for technology companies and consumers. “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump declared on his Truth Social platform this week.

Immediate market response to Trump’s tech tariffs

The escalating tariffs have created an unexpected short-term boom for companies like Apple, with consumers flooding stores to purchase electronics before potential price increases. “Almost every customer asked me if prices were going to go up soon,” reported one Apple store employee, who requested anonymity as they weren’t authorised to speak publicly.

Bloomberg reports that Apple’s US retail locations experienced higher sales this past weekend than in previous years. The sudden purchasing surges illustrate the real-world impact of tariff policies on consumer behaviour, with the prospect of iPhones potentially costing thousands of dollars creating what one employee described as an atmosphere resembling “the busy holiday season.”

The mathematical absurdity of “reciprocal” tariffs

What makes Trump’s approach particularly problematic is the disconnect between his “reciprocal tariff” rhetoric and the calculation method employed. Documents from the office of the US Trade Representative reveal that the tariff levels do not match other countries’ rates; instead, they are based on bilateral trade deficits. The formula mathematically ensures that any nation selling more to America than it buys faces punitive duties, regardless of their actual trade practices.

The reductive approach treats complex global trade relationships as a simplistic zero-sum game, ignoring the reality of how modern supply chains function.

Tech industry fallout

Few sectors stand to lose more from the escalation in trading relations than technology. The industry’s heavy reliance on transnational production networks means that components often cross borders multiple times before reaching consumers. Each crossing potentially incurs tariffs, creating a compound effect that industry analysts call a “tariff cascade.”

Apple exemplifies companies subject to this effect. While it has worked to diversify its manufacturing base since Trump’s first term, shifting some production to Vietnam, India, and other locations, China remains central to its supply chain. The company’s stock suffered its worst three-day rout since 2001 following Trump’s tariff announcements. Bloombergreported that Apple “lost more than half a trillion dollars in valuation” in just two trading days.

Beyond rhetoric: the real-world impact

Despite the president’s claims that tariffs will revitalise American manufacturing, economic forecasts paint a different picture. Fitch Ratings warned that the tariffs have “significantly raised the risk for a recession in the United States” through higher consumer prices, squeezed wages, and dampened business investment.

Larry Fink, CEO of BlackRock, said “most CEOs I’ve talked to would say we are probably in a recession right now.”

For tech consumers, the Yale Budget Lab estimates American households could face an additional $2,100 in annual costs due to the April 2nd tariff announcement alone. Lower-income households will bear a disproportionate burden of these increases, as they spend a higher percentage of their income on consumer electronics and other goods affected by the tariffs.

Strategic incoherence

Perhaps most concerning for the technology sector is the lack of coherent objective.

As Navin Girishankar, head of the economic security programme at the Centre for Strategic and International Studies, told the South China Morning Post, “The Trump administration has been transparent all along about its desire to use tariffs primarily as an instrument of choice for several different objectives,” but “less coherent, I would say incoherent, about the actual goals.”

The strategic ambiguity leaves tech companies in a precarious position, unable to make informed long-term investment decisions. Should they accelerate reshoring efforts, potentially at great expense, or hope for a negotiated resolution?

Cracks in support

Even some of Donald Trump’s most staunch supporters have begun to express concern. Elon Musk, who serves as a senior adviser to Trump, has expressed discomfort with the policy. Meanwhile, billionaire investor Bill Ackman stated bluntly, “I am just frustrated watching what I believe to be a major policy error occur.”

The coming days will determine whether Trump follows through on his threat to escalate duties to their new levels. What’s already clear is that his approach to trade represents a wrecking of the integrated global technology ecosystem that has fuelled innovation worldwide.

For tech companies and consumers across Asia, the message is unmistakable: the era of predictable trade in digital goods is over, at least for now. As markets reel and supply chains reconfigure, uncertainty is the only certainty.

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The Nvidia chip crackdown in Malaysia is intensifying. The country is apparently facing mounting pressure from the United States to prevent advanced semiconductors from being diverted to China.

Malaysia’s Trade Minister Zafrul Aziz has confirmed the Malaysian government plans to tighten regulations on semiconductor movements in response to specific US demands to monitor high-end Nvidia chips entering the country. “[The US is] asking us to make sure that we monitor every shipment that comes to Malaysia when it involves Nvidia chips,” Aziz told the Financial Times [paywall]. “They want us to ensure that servers end up in the data centres they’re supposed to and not suddenly move to another ship.”

The minister has formed a special task force with Digital Minister, Gobind Singh Deo, to strengthen regulations around Malaysia’s rapidly-growing data centre industry, which heavily relies on chips from industry leader Nvidia. The move comes amid heightened concerns in the US that Malaysia may be serving as a transit point for advanced AI chips ultimately destined for China, in violation of US export controls.

Singapore fraud case highlights regional concerns

The Malaysian moves follow closely on the heels of a major fraud investigation in neighbouring Singapore, where authorities have charged three individuals – two Singaporeans and one Chinese national – over trades in hardware servers allegedly worth approximately $390 million.

During a press briefing in early March, Singapore’s Home Affairs Minister K Shanmugam stated that the servers in question “may contain Nvidia chips.” The case involves Dell and Supermicro servers imported from the US and subsequently sold to a company in Malaysia. “The question is whether Malaysia was a final destination or from Malaysia it went somewhere else, which we do not know for certain at this point,” Shanmugam said, adding that the Singaporean government had requested assistance from both the US and Malaysian authorities in its investigation.

Two of the individuals charged – Alan Wei Zhaolun, 48, and Aaron Woon Guo Jie, 40 – hold senior positions at Aperia Cloud Services as CEO and COO respectively. According to its website, Aperia claims to be “Nvidia’s first qualified Nvidia Cloud Partner in Southeast Asia,” with “priority access to the highest-performing [graphics processing units] available in the market.” The third individual, a 51-year-old Chinese national named Li Miang, is accused of claiming fraudulently that the end user of items he purchased was a Singaporean computer equipment sales company, Luxuriate Your Life.

US export controls on Nvidia chip and regional impact

The increased scrutiny stems from broader US efforts to obstruct China’s development of advanced technologies, particularly AI with potential military applications. During the final days of the Biden administration in late 2024, the US introduced a three-tier licensing system for AI chips designed for use in data centres, explicitly targeting Nvidia’s powerful graphics processing units (GPUs). The measures were designed to prevent Chinese companies from circumventing US restrictions by accessing restricted chips through third countries. The US is also investigating if Chinese AI firm DeepSeek (which made headlines recently about its impressive AI model performance) has been using banned US chips.

Malaysia’s growing data centre industry

Malaysia has emerged as one of the fastest-growing global data centre development markets, with much of this growth concentrated in the southern state of Johor. According to Zafrul, the state has attracted over $25 billion in investment from major technology companies, including Nvidia, Microsoft, and ByteDance (TikTok’s parent company) in the past 18 months alone. The country recently agreed to form a special economic zone with Singapore, further embedding it as a key player in regional technology infrastructure. However, with the growth comes an increased responsibility to ensure compliance with international export controls.

Challenges in enforcement

Minister Zafrul has acknowledged the significant challenges in tracking semiconductors through complex global supply chains. “The US is also putting much pressure on their own companies to be responsible for ensuring [chips] arrive at their rightful destination,” he said. “Everybody’s been asked to play a role throughout the supply chain.” He emphasised the difficulty of enforcement, stating plainly, “Enforcement might sound easy, but it’s not.”

Nvidia’s global sales patterns underscore the challenge. It generates nearly a quarter of its global sales through its Singapore office, raising attention in the US around potential hardware movements to China. Nvidia has maintained that almost all of these sales constitute invoicing of international companies through Singapore, with very few chips passing through the city-state.

Regional context and industry impact

The focus on semiconductor flows in Southeast Asia represents one aspect of broader technology trade restrictions in place. In a parallel development, the European Union recently sanctioned Splendent Technologies, a Singaporean chip distributor, as part of measures targeting companies allegedly helping Russia’s defence sector.

Balancing economic development with regulatory compliance presents a practical challenge for Malaysia. The country’s efforts to strengthen monitoring systems must address complex supply chains while be supportive of its growing position in the regional technology ecosystem. As Malaysia implements new oversight measures, technology companies operating in the region may face additional compliance requirements stemming from Kuala Lumpur. However, the precise impact on the broader semiconductor industry will depend on the specific implementation approach and enforcement capacity.

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Nvidia’s CEO Jensen Huang believes that global tech collaboration will remain strong, even as the US considers stricter policies on advanced computing products. During a recent visit to Hong Kong, Huang addressed concerns about the evolving political landscape, emphasising that science thrives on openness.

“Open science and global collaboration—cooperation across math and science—have been around for a very long time. They are the foundation of social and scientific advancement,” he said. “That’s not going to change.”

His outlook comes at a critical time. President-elect Donald Trump has reignited debates over tariffs and reshoring chip manufacturing, proposing measures that could significantly impact the global semiconductor sector.

Trump has long-supported tariffs as a tool for reshaping trade and manufacturing. During a recent appearance on Joe Rogan’s podcast, he criticised the CHIPS Act—a bipartisan effort signed in 2022 to boost US semiconductor production—calling it “so bad.” Instead of subsidies, Trump suggested imposing tariffs on semiconductors from Taiwan, arguing that this would push companies such as TSMC to build more facilities in the US.

However, experts are sceptical. William Reinsch, a senior adviser at the Center for Strategic and International Studies, pointed out that TSMC is already building a fab in Arizona. “Tariffs aren’t going to make that move any faster. If anything, they might complicate the effort,” he said.

Potential impacts on Nvidia and the tech industry

If Trump moves forward with tariffs, companies like Nvidia and AMD, which rely heavily on Taiwanese chips, could face rising costs. While their expenses might be passed down to customers, the ripple effects would likely be felt across the tech industry.

Huang was measured in his response to present uncertainties. “Whatever happens, we’ll balance compliance with laws and policies, continue to advance our technology, and support customers worldwide,” he said.

During his visit Huang also discussed broader issues, such as the energy demands of AI technologies. “If the world uses more energy to power the AI factories of the world, we’re a better world when that happens,” he said. He suggested sustainable solutions, such as placing AI supercomputers in remote areas powered by renewable energy.

“My hope and dream is that, in the end, we’ll all see that using energy for intelligence is the best use of energy,” Huang said, underscoring AI’s potential to address global challenges—from carbon capture to designing better wind turbines.

The stakes of reshoring chip manufacturing

Reshoring chip production has become a national security priority for the US, especially after the pandemic exposed vulnerabilities in global supply chains. As of 2021, 44% of US logic chip imports came from Taiwan. A major disruption in Taiwanese manufacturing could cause logic chip prices to surge by as much as 59%, according to a 2023 US International Trade Commission report.

The CHIPS Act aims to mitigate such risks, and companies have already started building new US facilities. Still, Trump’s proposed tariffs could introduce new challenges, potentially cutting profit margins for US-based companies like Nvidia.

Reactions to Trump’s tariff proposals are divided. Dan Newman, CEO of Futurum Group, suggests the idea may be more political posturing than a concrete plan. “Trump is unlikely to move forward with anything that hurts the economy,” he said.

However, Columbia Business School’s Lori Yue argued there’s a high chance Trump could impose tariffs. She added that deregulation related to AI under a second Trump administration might offset some of the financial strain on chip companies.

A new era for AI and computing

Huang closed his trip to Hong Kong on a hopeful note. Speaking at the Hong Kong University of Science and Technology after receiving an honorary doctorate in engineering, he told graduates they are entering a transformative era.

“The age of AI has started,” Huang said. “The whole world is reset. You’re at the starting line with everybody else. An industry is being reinvented. You now have the instruments necessary to advance science in so many different fields.”

While uncertainties about US technology policies remain, Huang’s message was clear: innovation will continue, driven by a new generation ready to redefine what is possible.

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

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Becoming a global leader in AI is a top priority for Japan, and it’s all starting with AI-driven language models. Japanese tech experts are working on advanced AI models that understand the country’s unique cultural and linguistic nuances. This is opening up new possibilities for developers in industries that demand high precision, like healthcare, finance, and manufacturing.

And it’s not just a solo mission—major consulting firms like Accenture, Deloitte, EY Japan, FPT, Kyndryl, and TCS Japan—are teaming up with NVIDIA to establish innovation hubs throughout Japan. The centres aim to help companies fully embrace AI, both in enterprise use and physical applications. They’re using NVIDIA’s AI software, language models tailored to the Japanese language, and NVIDIA’s NIM microservices to build customised AI tools that suit specific industry needs. Essentially, it’s about creating a digital workforce that boosts productivity across the board.

One of the most exciting tools here is NVIDIA’s Omniverse platform, which lets Japanese companies make digital twins (virtual copies of real-world assets) and test complex AI systems before rolling them out in the real world. For industries like manufacturing and robotics, this tech is a huge advantage, helping them refine processes and make smart tweaks without taking on real-world risks. With AI integrated into these strongholds of Japanese industry, the country’s well on its way to addressing some of its toughest challenges.

Japan is facing a shrinking workforce due to an ageing population; a serious issue in the country. But Japane’s strength in robotics and automation puts it in a good position to tackle the problem with AI-powered solutions. Japan’s government recently released a report underscoring its ambition to be “the world’s most AI-friendly country,” clearly signalling AI’s role in its future.

And the numbers are backing up this commitment. IDC reports that Japan’s AI market hit $5.9 billion value this year, marking a solid 31.2% year-on-year growth. In Tokyo and Kansai, newly opened consulting hubs are primed to give companies hands-on experience with NVIDIA’s cutting-edge AI tech and guidance to help accelerate AI adoption. For Japan, this isn’t just about tech—it’s about solving real-world social challenges and driving long-term economic growth.

Building Japan’s AI backbone with cloud leaders

The country’s top cloud providers—SoftBank Corp., GMO Internet Group, KDDI, Highreso, Rutilea, and SAKURA Internet—are all-in on building AI infrastructure with NVIDIA’s support, focusing on industries like robotics, automotive, healthcare, and telecom. With backing from Japan’s Ministry of Economy, Trade, and Industry (METI), the cloud providers are setting up AI data centers across the country to support both local and national development, equipped with NVIDIA’s high-performance accelerated computing.

According to NVIDIA CEO Jensen Huang, Japan has huge potential to gain from the AI era. “Japan’s companies stand to benefit tremendously from the new industrial revolution powered by AI,” Huang said. “Employees will see their productivity soar with AI agents taking over repetitive tasks. The factories of tomorrow will operate in dual mode—AI factories generating software intelligence alongside traditional factories.”

One standout partnership is between NVIDIA and SoftBank Corp., one that will have a big impact on fast-tracking Japan’s AI goals. During his keynote at the NVIDIA AI Summit Japan, the NVIDIA CEO announced that SoftBank is building Japan’s most powerful AI supercomputer using the NVIDIA Blackwell platform, and has plans to use the NVIDIA Grace Blackwell platform for its next big project. SoftBank isn’t just aiming for tech leadership in Japan—it’s also setting its sights on new revenue opportunities in telecommunications globally.

SoftBank’s already tested out the world’s first combined AI and 5G telecom network using NVIDIA’s AI Aerial platform, a breakthrough that could open up new revenue streams for telecom providers worldwide. In addition, SoftBank is working on an AI marketplace to meet the growing demand for secure, local AI computing in Japan. The marketplace could turn SoftBank into a central hub for AI services, supporting businesses, consumers, and enterprises across the country.

“Japan has a long history of pioneering technological innovations with global impact,” Huang said. “With SoftBank’s significant investment in NVIDIA’s AI, Omniverse, and 5G AI-RAN platforms, Japan is taking a leap into the AI industrial revolution. This shift is expected to benefit sectors like telecommunications, transportation, robotics, and healthcare in ways that will ultimately advance society.”

SoftBank’s CEO Junichi Miyakawa echoed the optimism, saying, “Through our close partnership with NVIDIA, SoftBank is leading the AI-driven transformation of society. With our powerful AI infrastructure and our new AI-RAN solution ‘AITRAS,’ which reinvents 5G networks for AI, we’re accelerating innovation across Japan and beyond.”

Japan’s vision for an AI-driven future

SoftBank is about to receive the world’s first NVIDIA DGX B200 systems for its new DGX SuperPOD supercomputer, which will not only support SoftBank’s own AI projects but also those of universities, research centres, and businesses, right across Japan. Expected to be Japan’s most powerful AI machine yet, it’s perfect for developing large language models and managing high-performance compute tasks.

SoftBank has even bigger plans: it’s working on a second NVIDIA-accelerated supercomputer that’s optimised for extremely intensive workloads. This system, based on the NVIDIA Grace Blackwell platform, combines NVIDIA Blackwell GPUs with energy-efficient Arm-based NVIDIA Grace CPUs to take AI in Japan to the next level, solidifying the country’s position as a leader in AI.

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

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Taiwan needs to double down on advancing its chip technology and expanding its supply chain to keep its top spot in the global market, according to a leading trade group. The call came just hours after Donald Trump secured his second term as US president.

“I am confident that the long-standing Taiwan-US partnership, built on shared values and interests, will continue to be a pillar of regional stability and prosperity for all,” said Taiwanese leader William Lai Ching-te in a congratulatory note to Trump.

Taiwan has long been a semiconductor powerhouse, with its chips powering everything from everyday electronics to advanced wind turbines and military equipment.

“We need to ramp up R&D to keep our critical position in the global semiconductor supply chain,” said Cliff Hou, Chairman of the Taiwan Semiconductor Industry Association and senior vice president at TSMC. He also said that talks with the Taiwanese government are underway to bring in foreign partners to establish design and materials hubs in Taiwan.

Taiwan’s semiconductor industry is set to see its output rise by 22% this year, reaching over US$164 billion, driven by booming AI technology and a rebounding economy, according to a top TSMC executive.

While Taiwan enjoys its status as a global chipmaking leader, it faces the threat of physical invasion by China, which views it as a breakaway province. Trump’s re-election could shift how Taiwan fits into international relations. President Joe Biden had consistently backed Taiwan with clear support, while Trump has signalled that the island should pay for its own defence. In a Bloomberg interview, he commented on his relationship with Chinese President Xi Jinping, saying, “He was a very good friend of mine until Covid.”

Hou, a 27-year TSMC veteran with a US doctorate, stressed that Taiwan should also develop expertise in equipment and materials—areas still dominated by international companies. He told reporters at an event in Hsinchu that Taiwan’s strong bond with the US won’t waver, regardless of the political landscape.

Beyond TSMC, smaller Taiwanese suppliers are making big strides in AI-related tech, securing significant orders for data centre servers, cooling systems, and power solutions.

Despite his tough stance on Beijing during his previous presidency, Trump’s recent comments have been less favourable for Taiwan. He suggested that Taiwan’s defence budget should jump to 10% of its GDP and openly questioned the US’s role in defending the country. In October, he told podcast host Joe Rogan, “These chip companies, they stole 95% of our business. It’s in Taiwan right now. They do a great job, but that’s only because we have stupid politicians.”

John Bolton, Trump’s former national security adviser, previously noted that another Trump presidency could be dire for Taiwan, warning that “Taiwan is potentially toast.”

The day before the election, Cho Jung-tai, who heads Taiwan’s cabinet, was candid about defence spending, pointing out that the budget couldn’t be expanded “overnight.” Han Kuo-yu, a key legislator, echoed those concerns, saying that Taiwan’s political and economic challenges are likely to grow during a Trump presidency. He emphasised the importance of balancing ties with Washington while maintaining peace with Beijing.

Lai Shyh-bao, another legislator, added that Trump’s potential influence on Taiwan’s chip industry “should not be underestimated.”

Kuo Yu-jen, a professor from the Institute of China and Asia-Pacific Studies, advised that Taiwan should “watch Trump’s policies closely” to prepare for any shifts.

The president-elect hinted that tariffs could be his tool of choice to incentivise companies like TSMC to build chip facilities in the US. Hou, however, said Taiwan’s industry hasn’t been notified of any upcoming tariffs.

TSMC, which supplies Apple and Nvidia, has committed over US$65 billion for chip plants in Arizona, contingent on strong governmental support. Nonetheless, Taiwan aims to keep its most advanced tech within its borders. Recently, Economic Affairs Minister J.W. Kuo confirmed that local laws prevent TSMC from exporting its cutting-edge technologies abroad.

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

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The India semiconductor industry is poised to experience substantial growth, but only if the country expands its chip manufacturing capabilities. At a preview event for the inaugural SEMICON India 2024, SEMI CEO Ajit Manocha will advocate the necessity for 10 to 20 new semiconductor fabs in India over the next decade to address the increasing demand.

India’s first-ever SEMICON conference will occur in the Delhi-NCR region from September 11 to 13, 2024, marking a significant milestone for the nation’s growing semiconductor industry. The event will feature over 250 semiconductor companies across more than 650 booths. It is being organised by SEMI, a US-based association promoting the chip industry, in partnership with various stakeholders, including the country’s Ministry of Electronics & Information Technology.

Manocha’s call for expansion coincides with increased interest in India’s semiconductor potential. Recent developments underscore this trend such as Micron Technology’s proposed US$825 million investment in a semiconductor assembly and testing facility in Gujarat, and the Tata Group’s authorised projects for fab factories in Dholera and Assam.

The SEMI CEO lauded the Indian government’s supportive policies, stating that present geopolitical and investment climates favour India’s semiconductor goals. He cited the establishment of Outsourced Semiconductor Assembly and Test (OSAT) and Assembly, Testing, Marking, and Packaging (ATMP) facilities in India as positive indicators of progress.

Even industry projections are optimistic, with estimates suggesting India’s semiconductor market could surpass US$100 billion by 2030, potentially creating over 600,000 jobs. This growth aligns with global trends, as a McKinsey & Company report predicts the worldwide semiconductor market will reach US$1 trillion in the same timeframe.

Manocha also believes India’s vast talent pool is critical for the sector’s development. Tapping into such resources could help address the global semiconductor talent shortage and attract more investment in the country.

Inevitably, the road to a self-reliant semiconductor industry is challenging. As per  Business Standard’s report, Kristy Hsu, director of the Taiwan ASEAN Studies Center, outlined vital factors influencing investment decisions in the local Indian chip sector. These include local customer support, infrastructure quality, supply chain robustness, government policies and talent availability.

Speaking at a separate event, the Ashwamedh Elara India Dialogue 2024 in Mumbai, Hsu stressed the importance of diversifying partnerships beyond single collaborations like Tata’s with Powerchip Semiconductor Manufacturing Corporation (PSMC). She emphasised the need for India to cultivate relationships with a broader range of suppliers and partners in the semiconductor ecosystem.

On the obstacles India faces with its semiconductor goals, Hsu said that besides an underdeveloped local supply chain, there’s the challenge of recruiting talent who have been trained abroad and frequently opt to remain overseas. This could result in a greater dependency on imports, which would increase costs and complicate logistics.

Then, there is also the price sensitivity of Indian companies, which may affect their willingness to procure domestically-produced chips, presenting an additional challenge for local support.

Despite these challenges, the Minister of Electronics and Information Technology, Ashwini Vaishnaw, expects the first chips developed in India to be produced by 2025. Moreover, the government is actively seeking talent development through university partnerships. It has made agreements with international entities in the United States, Japan and the European Union to bring more innovation to India.

According to the Economic Times, Vaishnaw also stated that 13 companies are now involved in chip design operations in the country. As India establishes itself as a significant player in the global semiconductor landscape, the success of India’s initiatives will depend on addressing the existing challenges while capitalising on the country’s inherent strengths. 

The upcoming SEMICON India 2024 event is expected to serve as an important platform for industry leaders to discuss strategies to overcome obstacles and leverage opportunities in India’s nascent semiconductor sector.

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Japan’s National Institute of Advanced Industrial Science and Technology (AIST) is partnering with US chipmaker Intel to build a semiconductor research centre.

The facility, expected to be completed within three to five years, will focus on extreme ultraviolet (EUV) lithography, essential for producing semiconductors at the 5-nanometer scale and smaller. This will be the first centre in Japan where several businesses will have the opportunity to use EUV equipment for prototyping and testing.

AIST will operate the facility under Japan’s ministry of economy, trade, and industry, while Intel will contribute its expertise in EUV-based chip manufacturing. The project’s investment is estimated to reach hundreds of millions of dollars. EUV technology is important for enhancing chip performance, which involves the ability to place numerous transistors on smaller chips. Given that each EUV machine costs more than 40 billion yen ($273 million), accessing this technology can be quite challenging for individual companies.

Until now, Japanese companies have had to rely on overseas facilities, such as Belgium’s Imec research centre, to access EUV equipment. With the new centre, Japan can conduct advanced semiconductor research domestically, without depending on foreign institutions. This development is particularly significant in light of the increasing restrictions on the export and cross-national use of EUV-related technology, driven by US-China tensions. It underscores the current focus on localising critical technology rather than relying on foreign providers.

ASML Holding of the Netherlands dominates the EUV equipment market, but chip production involves over 600 specialised processes. Japan, home to major semiconductor companies like Lasertec and JSR, which lead in EUV inspection and EUV materials production, will benefit greatly from cooperation with Intel. Strengthening ties between Intel and Japanese semiconductor equipment suppliers will help Japan boost its long-term innovation capacity which has yet to return to the heady days of the so-called Asian Tiger period of the 1980’s.

Relationship between Intel and Japan

Beyond EUV, Intel has announced a partnership with 14 Japanese companies to automate the back-end chipmaking processes including packaging. Back-end processes are becoming as important as front-end processes, which involve stacking chips to improve performance, as chip manufacture approaches physical limits. The partnership, which includes companies like Omron, Yamaha Motor, Resonac, and Shin-Etsu Polymer, will be led by Kunimasa Suzuki, head of Intel’s Japanese division. The partners plan to invest billions of yen and develop automated back-end technology by 2028.

Automation is viewed as key for shifting chip production to higher-cost regions like Japan and the US, where labour shortages and rising expenses present challenges in manual assembly production lines. Intel and its partners will construct a trial back-end production line in Japan, planning for full automation that could also mitigate the country’s shortage of chip engineers, a problem exacerbated by competition from firms like Taiwan Semiconductor Manufacturing Co. (TSMC) and Rapidus.

Japan is a key player in the global semiconductor supply chain, accounting for about a 30% share of production equipment and almost 50% of materials. The Japanese government decided to provide the industry with additional support to boost domestic semiconductor development, allocating 4 trillion yen ($26 billion) from 2021 to 2023 alone. In April of this year, 53.5 billion yen in aid was approved for Rapidus, an organisation attempting to start mass production of the next generation of semiconductors. The government is also considering potential incentives for foreign companies to participate in the local semiconductor ecosystem.

A similar context frames the cooperation between Japan and the US which aims to reduce geopolitical risks in the semiconductor supply chain. Since the final production stage, or back-end, is currently concentrated in China—accounting for 38% of global capacity—localising production to avoid potential disruptions is becoming increasingly important for maintaining competitiveness.

In addition to Intel, other semiconductor giants, namely TSMC and Samsung Electronics, are opening research centres in Japan to focus on producing back-end chips. Market analysts also predict that the global back-end chip market will grow by 13% and reach $12.5 billion value in 2024.

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“Through COVID, lead times didn’t just increase, they doubled, they tripled, and we’re talking international lead times,” Mark Hopkins, Netstock’s Global VP of Professional Services, told Tech Wire Asia. “I don’t think I ever thought I’d be saying that the ‘good old days of 2019’, and yet the supply chain has changed massively in the last four years. Now, we understand that we need to be prepared to understand the unexpected much faster than we were ever before.”

The unpredictability of supply chains makes it challenging for businesses to effectively manage their inventory. Not being able to accurately forecast demand leads to over or understocking issues that can have profound financial repercussions. Indeed, increased costs stemming from storage expenses, rerouting, and expedited shipments have added financial strain to businesses already grappling with the aftermath of various disruptions. Delays in product availability, increased prices, and a lack of transparency in the supply chain contribute to customer dissatisfaction and further revenue losses.

On the other hand, maintaining inventory visibility can offer a lifeline when navigating the impacts of supply chain disruptions. It allows companies to anticipate and respond swiftly to disruptions, enabling proactive decision-making. Businesses can identify potential shortages, adjust safety stock, and mitigate the impact of extended lead times. Such visibility is crucial for fostering resilience, aligning inventory planning with real-time demands, and building a supply chain capable of adapting to unforeseen events.

Mr Hopkins said: “Static planning – the idea that I should be able to keep up on a spreadsheet – is a common mistake. People who are trying to survive by setting a static safety stock just can’t keep up now because the rules keep changing.

“The Eustralis example really shows you the dangers of when people aren’t necessarily thinking about spreadsheet planning.”

Eustralis, a premium food and wine wholesaler from Perth, Australia, faced a number of inventory challenges at the start of 2023. These included a lack of visibility, supply chain disruptions ongoing from the COVID-19 pandemic, branches operating in silos, and holding excess stock.

Mr Hopkins said: “They ended up having a bunch of little mini silos inside their business because each person’s spreadsheet was planned separately, and the knowledge that was baked into them wasn’t really being shared across the business.”

The company decided to implement the inventory management solution Netstock to help address its challenges and transform operations. The system not only addressed its pre-existing challenges but also equipped it to navigate the tumultuous global supply chain landscape with demand forecasting. “Switching to a tool like Netstock allowed [it] to have visible data understood across the business, which allowed better collaboration,” said Mr Hopkins.

The newfound visibility enabled Eustralis to manage inventory proactively, anticipate potential shortages, and align stock levels with real-time demands. Eustralis achieved a 35 percent reduction in inventory within seven months, a feat that saved on storage costs and allowed it to adapt to the extended lead times. The company’s ability to streamline operations and respond swiftly to changing conditions resulted in a 50 percent increase in sales while maintaining an impressive 97 percent fill rate.

In the wake of the current shipping disruptions, inventory-holding businesses now need the right tools to help them improve visibility and accuracy, and adjust their planning to changes in supply and demand. Netstock is a robust yet affordable inventory management solution that can prepare organizations to weather future disruptive events. Through seamless integration with existing Enterprise Resource Planning (ERP) systems, the platform optimizes inventory processes without necessitating a complete overhaul. Its cutting-edge technology unlocks hidden capital by quickly identifying excess stock, ensuring businesses realize a prompt return on investment. The user-friendly interface, coupled with the Netstock Learning Academy and exceptional onboarding support, ensures accessibility for users with varying technical expertise.

Netstock’s standout feature, the Pivot Forecasting Engine, enables precise demand predictions, aiding informed decision-making on stock levels and procurement. “Seeing the impact on your business gives you the ability to take action that allows you to stay in stock,” said Mr Hopkins. “If your supplier decides to ship early and you aren’t achieving your sales on time, you’re not actually ready to pay them on time, so having a tool that allows you to project the impact in both directions is essential.

“It makes it easy for you to buy in and realize that you actually are heading the right way or, conversely, if you see a profile that shows a road you don’t want to follow, you can make some adjustments to the plan. The visibility of information allows you to make decisions faster, and, of course, that’s how you handle disruption better, as you are in a better position to make a decision more quickly.”

To learn more about how Netstock can help turn your inventory into a valuable asset and optimize your business’s financial health, download this free e-book today.

The post Keeping stock of your stock: How to build a resilient supply chain in 2024 appeared first on TechWire Asia.

AI is revolutionizing supply chain management and logistics, and providing companies with a competitive advantage in a dynamic and uncertain market. Specifically, AI can be used in logistics and supply chain management to improve efficiency, accuracy and resilience in various aspects and operations.

In Southeast Asia, AI is a game-changer for logistics and supply chain management. Since the disruptions brought on by the Covid-19 pandemic, organizations have been using AI to ensure business continuity. And now, with generative AI solutions being developed as well, the industry is seeing more than just automation and route management for deliveries.

Currently, AI in logistics and supply chain management can help organizations with:

• Optimizing routing and delivery – AI can use real-time data, such as traffic, weather, road conditions, and customer preferences, to find the best routes and schedules for delivery. This reduces fuel consumption, emissions, costs and delivery times.
• Demand forecasting – AI can analyze data from multiple sources, such as sales history, market trends, weather, customer behavior, and social media, to generate accurate predictions of future demand. Companies are able to optimize inventory levels, streamline supply chain processes and reduce the risks of stockouts or overstocking.
• Improve loading process – AI can help automate the loading and unloading of trucks, containers, and warehouses, using computer vision, robotics, and sensors. This increases safety, speed and accuracy as well as reduces labor costs and human errors.

With generative AI, businesses in the industry could automate clerical work, predict operational results, factor in tariffs and even negotiate shipping rates. As sustainability continues to be thrust into the limelight, generative AI can play a pivotal role in creating environmentally friendly supply chains.

SingPost and Google Cloud

One company that has been accelerating its digital journey in logistics and supply chain management is Singapore Post Limited or SingPost. A leading postal and e-commerce logistics provider in Asia Pacific, SingPost’s portfolio of businesses spans national and international postal services, warehousing and fulfillment, international freight forwarding, and last-mile delivery, serving customers in more than 220 global destinations.

The company has just partnered with Google Cloud to accelerate its digital transformation journey and drive its next phase of sustainable growth. SingPost has already migrated all the IT workloads hosted in its on-premises data centers to Google Cloud and is in the process of harmonizing and consolidating its technology stack, establishing a robust and secure foundation to power accelerated AI-driven innovation.

Using Google Cloud’s AI-optimized infrastructure, SingPost has not only yielded cost savings of 30% in IT operations but is also capable of handling complex AI workloads, while ensuring cost-efficiency, scalability, and sustainability. Added to which, SingPost is deploying Google Cloud’s BeyondCorp Enterprise platform to enforce zero-trust security principles like multi-factor authentication and device verification, ensuring that only authorized staff can access proprietary company information.

Coupled with strategic investment in high-growth markets, this deployment has resulted in international logistics generating 86% of the group’s revenue – a key milestone in its ongoing transformation into a technology-driven logistics enterprise.

“Our positive engagement with Google Cloud to develop an AI solution—through its joint AI Trailblazers initiative with the Singapore Government—gave us the confidence to embark on the next step of this journey,” said Noel Singgih, group chief information officer at SingPost.

AI for logistics and supply chain management

SingPost’s AI solution for streamlining its e-commerce logistics operations cuts out manual re-entry of partner and supplier information from trade documents into its database.

That frees up staff from the tedious task of having to dig through document archives to find the information they need, letting them focus on making strategic decisions and delivering high-quality customer interactions.

The solution is built on Google Cloud’s Vertex AI platform, foundation models, and Document AI. The AI solution transforms unstructured data from trade documents into a searchable repository, with a generative AI-powered chat interface that understands natural language queries and brings accurate and relevant information to the surface.

Enhanced by Google Cloud, SingCloud aims to scale the use of its solution, to optimize supply chain orchestration across its logistics network and facilitate faster deliveries.

At the same time, SingPost is also using Vertex AI to explore solutions for several other use cases, including automating internal legal document reviews and providing more personalized interactions to enhance customer service.

All the while, SingPost will retain complete control over its data, including prompts and user inputs at inference time when using Vertex AI. That means the data does not need to leave SingPost’s Google Cloud environment, is encrypted both in transit and at rest, and is not accessible by Google Cloud or any other external parties.

“By investing in AI development and collaborator platforms with built-in privacy, control, security, and compliance capabilities, SingPost is empowering every employee—regardless of their role or function—to identify and capitalize on new opportunities for work optimization. This serves as a strong example of how a large enterprise can move swiftly to extract diverse benefits from generative AI adoption,” said Mark Micallef, managing director, Southeast Asia, Google Cloud.

The post Supercharging logistics and supply chain management with generative AI  appeared first on TechWire Asia.

Not long ago, the Minister of Electronics and Information Technology in India, Ashwini Vaishnaw, announced that a semiconductor assembly and testing facility, valued at US$2.7 billion, is being built in Gujarat by US memory chip giant Micron Technology. The new facility will be completed in stages, but the initial phase is expected to be operational by late 2024. In other words, by December 2024, India is set to produce its first domestically manufactured chips with Micron. 

“In December 2024, we should see the first made-in-India chip coming out of the Micron plant. This has given huge momentum and confidence to the entire semiconductor industry worldwide,” Vaishnaw told Forbes India in September this year. The Minister noted that Micron’s plan had triggered inquiries worldwide and that in the following months, India has received more semiconductor proposals. 

“India has excellent expertise in design already. Skill and talent are part of our semiconductor policy, which is succeeding very well. It’s a very systematic way we are working with the industry to get this skill,” he added. Micron’s second phase of the facility is slated to commence in the latter half of the decade, creating up to 5,000 new direct jobs.

Micron specializes in producing Dynamic Random Access Memory (DRAM) and NAND products. DRAM serves as the primary memory or RAM in devices, temporarily storing data and instructions for processor execution. NAND is a non-volatile storage device retaining data without power, similar to a portable flash drive. 

Of the comprehensive investment of US$2.75 billion, Micron is set to contribute up to US$825 million across the two project phases, with the remaining assets to be sourced from both central and state governments. The Indian central government will provide 50% fiscal support for the overall project expenditure, and the state of Gujarat will offer incentives equivalent to 20% of the total project cost to the memory chipmaker.

The inaugural high-end semiconductor fabrication facility set to emerge in India will feature complete automation, covering hardware and system processes from assembly to testing. Inventory and warehouse storage will be automated for efficiency. Micron plans to implement advanced process controls and smart manufacturing solutions in the 1.4 million-square-foot facility, including 500,000 square feet of clean room space. 

While the facility is expected to be operational by the end of next year, Micron will gradually increase capacity based on global demand. 

Besides Micron, how is the Semicon India program doing?

Supported by the Indian government’s US$10 billion ‘India Semiconductor Mission‘ aimed at boosting the country’s semiconductor manufacturing ecosystem, potential manufacturers have, since December 2021, been able to access financial incentives covering up to 50% of costs of marketing, packaging, outsourced assembly, testing units, and development and deployment.

Anil Agarwal, the chairman of Vedanta, a British mining and metals group, has said people should expect “Vedanta made-in-India chips” by 2025. Agarwal revealed in late July that there are ongoing discussions with three companies for distinct partnerships in foundry, chips, and packaging/testing for Vedanta semiconductor unit in India. In an exclusive conversation with Mint, Agarwal expressed optimism that these collaborations should materialize within the next few months.

Vedanta has chosen Dholera, an undeveloped area in Gujarat, as the site for India’s first ‘semicon city,’ an area comparable in size to Singapore. Recently, AMD, a US-based semiconductor design company, opened its largest global design center, covering 500,000 square feet, in Bengaluru.

https://x.com/AshwiniVaishnaw/status/1729538976447336898?s=20 

This facility, encompassing 60,000 sq ft of research and development (R&D) labs, will house 3,000 engineers focusing on semiconductor technology design and development, such as 3D stacking, AI, and machine learning. Initially, with four operational floors for around 1,000 employees, the facility constitutes 25% of AMD’s total US$400 million investment, as previously stated by Mark Papermaster, the company’s chief technology officer.

The post India anticipates first homegrown chip from Micron by December 2024 appeared first on TechWire Asia.