Tech News Pickup - 1 Oct 2024

U.S. Eases AI Chip Shipments to Middle East Data Centers

The U.S. Commerce Department has introduced a rule that could facilitate the shipment of artificial intelligence chips, such as those produced by Nvidia Corp, to data centers in the Middle East, reports Reuters. According to an official, the U.S. will collaborate with foreign data centers applying for the Validated End User program, along with host governments, to ensure the secure use of these technologies. Since October 2023, U.S. exporters have been required to obtain licenses before shipping advanced AI chips to regions of the Middle East and Central Asia.

Google to Build $1 Billion Data Center in Thailand

Google has announced a $1 billion investment (36 billion Thai baht) in Thailand, aimed at building a new data center and expanding the nation’s cloud infrastructure, reports CNBC. This move is part of Google’s strategy to bolster its presence in Asia, with artificial intelligence at the core of its global expansion efforts. The company faces growing competition from rivals such as Microsoft and OpenAI.

UMC in Talks to Sell 8-Inch Fabs, Pilots GaN Chip Production

United Microelectronics Corp (UMC), a leading mature-node foundry in Taiwan, is reportedly in discussions to sell some of its 8-inch (200mm) fabs, according to Liberty Times. UMC currently operates four 12-inch fabs and seven 8-inch fabs. While the company declined to comment on these rumors, it did confirm that one of its 8-inch fabs is being used for pilot production of GaN (Gallium Nitride) semiconductors. Heightened competition from new fabs in China is prompting Taiwanese manufacturers to consider selling 8-inch wafer equipment to countries like India, which is in the early stages of developing its semiconductor industry.

TSMC Sees No Immediate Order Reductions from Key Customers

Despite recent negative developments impacting its stock price, Taiwan Semiconductor Manufacturing Company (TSMC) has not seen any order reductions from major customers, according to DIGITIMES. Concerns arose after underwhelming sales of Apple’s iPhone 16 and reports that the Chinese government instructed local industries to stop purchasing Nvidia's H20 chips in favor of domestic alternatives. However, supply chain sources indicate that Apple's conservative shipment targets for the iPhone 16 reflect broader market caution, and no official order cuts have been announced. Moreover, while China has publicly restricted Nvidia chip purchases, many firms are still obtaining them at premium prices due to a lack of domestic expertise. TSMC continues to benefit from its expanding customer base and anticipates strong revenue performance in the third and fourth quarters of 2024.

Taiwan Industry Leaders Urge Energy Policy Reform to Ease Restriction on Offshore Wind Power

At an Energy Forum in Taiwan, AU Optronics Chairman Paul Peng and TSMC SVP of Human Resources Laura Ho called for the government to quickly review offshore wind power regulations and establish transparent mechanisms for solar power development to ensure sufficient renewable energy supply.

Peng emphasized that achieving net-zero emissions in Taiwan's ICT industry requires collaboration between large and small companies, with efforts spanning the entire supply chain, reported Commercial Times. As Taiwan is poised to raise electricity prices again in October, industries such as semiconductors will face a 14% increase in electricity bills.

Both Peng and Ho encouraged stronger collaboration between industries and the government, particularly in setting carbon reduction goals and developing innovative technologies. Ho specifically called for more flexible policies to lower offshore wind development costs and attract foreign investment, alongside improving the solar energy review process and strengthening the resilience of the power grid.