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US Agency Invests $225 Million to Expand Africa’s Fiber Infrastructure

US Agency Invests $225 Million to Expand Africa’s Fiber Infrastructure

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A major investment in Africa’s digital infrastructure is expected to be made, with the U.S. International Development Finance Corporation (DFC) playing a key role. In the upcoming weeks, the DFC will make a $90 million tranche toward a larger $225 million investment intended to increase fibre-optic access throughout the continent. This project highlights the growing geopolitical rivalry between China and the United States in Africa, a continent with abundant natural resources and a growing population.

Closing the Digital Connectivity Gaps in Africa

US Agency Invests $225 Million to Expand Africa’s Fiber Infrastructure

Image Source: techpoint.africa

Africa continues to be the least connected continent in the world even though digital services are quickly filling up infrastructure gaps in nations with little to no legacy networks.  Leading infrastructure company Liquid will be better able to handle its impending debt, which includes a $156 million term loan and $620 million in bonds that mature in 2026, thanks to the new capital infusion. Liquid needs this financial assistance in order to keep growing its network and provide services throughout Africa.

Partnerships with the US Tech Giants

To improve internet connectivity in East Africa, Liquid is working with Microsoft and Google, two of the biggest tech companies in the United States. The goal of the collaboration with Microsoft is to give 20 million people in Kenya and Zambia access to reasonably priced last-mile connectivity. Concurrently, the partnership with Google entails constructing terrestrial fiber networks across the Democratic Republic of the Congo, Zambia, Zimbabwe, Kenya, Uganda, Rwanda, and South Africa. In addition to connecting numerous data centers, this vast network will provide a fallback alternative for managing traffic in the event of subsea cable disruptions.

Also Read: TSMC Launches €10 Billion German Plant Amid Global Chip War

Increasing The Fiber Network of Africa

Liquid has already installed more than 110,000 kilometers (68,000 miles) of fiber throughout Africa in response to the rising demand for data storage and high-speed internet services. These kinds of investments, which give millions of people access to dependable, high-speed internet, are essential to promoting economic growth and development as the digital landscape of the continent changes.

SK Hynix to Build AI Chip Facility with $950 Million in US Grants

SK Hynix to Build AI Chip Facility with $950 Million in US Grants

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The United States has granted grants and loans totalling $950 million to SK Hynix, a well-known semiconductor company in South Korea, for the construction of a new AI chip packaging facility. High-bandwidth memory (HBM) chip packaging is the main focus of this $3.87 billion facility, which is essential for AI chip manufacturers like Nvidia Corp. The market leader in this space, SK Hynix, intends to transport its memory chips from South Korea to the US location.

The Creation of Jobs and Their Economic Impact

It is anticipated that the new plant will provide about 1,000 vacancies, boosting the local economy. Like other businesses growing within the US, SK Hynix will also receive a 25% tax credit in addition to financial support in the form of grants and loans.

Targeted Development

SK Hynix to Build AI Chip Facility with $950 Million in US Grants

Image Source: cryptotimes.io

Samsung Electronics and Micron Technology’s Sk Hynix want to supply more HBM chips to some of their key customers, including Nvidia, to stay competitive against rivals. This deliberate approach has increased the market capitalization of SK Hynix by half of the 2022 conclusion. The packaging procedure, which includes the process of covering the fleas and preparing them for integration in gadgets, plays an important role In current competition technology with the participation of China and America. Support based on the Science & CHIPS method

The 15th preliminary contract related to the 2022 Chips Scientific Law is marked by this subsidy.

The act restored the American semiconductor sector, which had lost a significant portion of its output to other countries in previous decades, by providing $39 billion in grants, $75 billion in loans and guarantees, and 25% tax credits.

Worldwide Semiconductor Approach

The Biden administration has now provided subsidies to SK Hynix, Samsung, Micron, Intel Corp., and Taiwan Semiconductor Manufacturing Co. (TSMC), the top five chip makers in the world, with this most recent revelation. On the other hand, at most two of these top companies have made investments in other nations that have funding schemes for semiconductors.

Large Clientele and Upcoming Projects

Apart from Nvidia, SK Hynix’s principal clientele also includes tech behemoths Apple Inc., Microsoft Corp., and Alphabet Inc. Up to $15 billion has been pledged by SK Group to research and packaging initiatives in the US. This agreement includes the Indiana factory, however the corporation had also looked at Arizona as a possible location. Arizona is also home to a new office for packaging company Amkor Technology Inc. as well as a substantial amount of money from Intel and TSMC.

Also Read: Meta Offers Millions to Hollywood Stars for AI Voice Projects

In conclusion, SK Hynix has made significant progress towards increasing its market share in the AI chip industry thanks to the $950 million commitment from the U.S. government. In addition to strengthening the company’s market position, the expenditure will also contribute to the company’s main goal of revitalizing the U.S. semiconductor industry.

US to Ban Chinese Software in Autonomous Cars: Reuters Report

US to Ban Chinese Software in Autonomous Cars: Reuters Report

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The Biden administration is poised to propose a ban on Chinese software in autonomous vehicles, citing national security concerns, according to a report by Reuters. This move is set to escalate tensions between the US and China, as it would prohibit Chinese software in vehicles with Level 3 automation and above, and effectively ban the testing of such vehicles on American roads.

Security Concerns Drive the Ban

US to Ban Chinese Software in Autonomous Cars: Reuters Report

Image Source: auto.hindustantimes.com

The proposed rule aims to address the government’s worry that smart vehicles using Chinese software could collect and transmit sensitive data about US citizens and infrastructure to China. This fear is not unfounded given the increasing integration of advanced technology in autonomous vehicles, which can gather vast amounts of data as they navigate roads and interact with other devices.

A Commerce Department spokesperson underscored the national security risks linked with connected technologies in vehicles, emphasizing the importance of safeguarding against potential threats. The administration’s plan also extends to banning cars equipped with advanced wireless communication systems developed by Chinese entities. Automakers and suppliers will be required to verify that their connected and autonomous vehicle software is not developed by any “foreign entity of concern,” such as China.

Trade and Economic Implications

The proposed ban is part of a broader strategy to curb the influence of Chinese technology in the US automotive sector. The US has already imposed tariffs exceeding 100% on Chinese-made electric vehicles and implemented measures under President Joe Biden’s clean energy bill that complicate the use of batteries manufactured in China. These steps reflect the growing apprehension about China’s role in the global supply chain and its potential implications for US national security.

In response, a spokesperson for China’s Ministry of Foreign Affairs criticized the US for what it perceives as discriminatory practices against Chinese-made electric vehicles and connected cars. The spokesperson urged the US to respect market principles and foster a fair, transparent, and non-discriminatory business environment for Chinese enterprises. China has vowed to defend its legitimate rights and interests in light of these developments.

Also Read: Meta Offers Millions to Hollywood Stars for AI Voice Projects

This proposed ban on Chinese software in autonomous vehicles marks a significant escalation in the technological and economic rivalry between the US and China. As both nations continue to navigate their complex relationship, the implications of such regulatory measures will likely reverberate across the global automotive industry, influencing market dynamics and international trade policies.

US Grants Up to $400 Million to Taiwan's GlobalWafers for Semiconductor Boost

US Grants Up to $400 Million to Taiwan’s GlobalWafers for Semiconductor Boost

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In a significant move to bolster the domestic semiconductor supply chain, the US Commerce Department announced on Wednesday plans to grant Taiwan’s GlobalWafers up to $400 million. This funding aims to significantly increase the production of silicon wafers within the United States, a crucial component in the manufacturing of advanced semiconductors.

Major Investments in Texas and Missouri

US Grants Up to $400 Million to Taiwan's GlobalWafers for Semiconductor Boost

Image Source: forbes.com

The awarded funds are earmarked for projects in Texas and Missouri, where GlobalWafers will establish the first US production of 300-mm wafers for advanced semiconductors. These projects will also expand the production of silicon-on-insulator wafers. The Commerce Department highlighted that this subsidy would support a substantial $4 billion investment by GlobalWafers in both states. This initiative is expected to create 1,700 construction jobs and 880 manufacturing jobs, signaling a considerable economic boost for the regions involved.

Commerce Secretary Gina Raimondo emphasized the strategic importance of this development, stating, “GlobalWafers will play a crucial role in bolstering America’s semiconductor supply chain by providing a domestic source of silicon wafers that are the backbone of advanced chips.” The sentiment was echoed by GlobalWafers Chairwoman and CEO Doris Hsu, who expressed gratitude for the US government’s support, noting, “GlobalWafers is pleased to be a key node in the U.S. semiconductor supply chain.”

Strengthening the US Semiconductor Supply Chain

Currently, GlobalWafers, alongside four other major companies, controls over 80% of the global 300mm silicon wafer manufacturing market. Notably, about 90% of silicon wafers are produced in East Asia, underscoring the strategic importance of developing domestic capabilities.

Under the planned subsidy, GlobalWafers intends to build and expand facilities in Sherman, Texas, for the production of wafers used in leading-edge, mature-node, and memory chips. Additionally, a new facility in St. Peters, Missouri, will focus on producing wafers for defense and aerospace applications. The company also plans to convert part of its existing silicon epitaxy wafer manufacturing facility in Texas to produce silicon carbide epitaxy wafers, which are vital for electric vehicles and clean energy infrastructure.

This expansion aligns with GlobalWafers’ 2022 announcement to construct a $5 billion plant in Texas dedicated to manufacturing 300-mm silicon wafers. This decision came in response to geopolitical concerns and the need to address US semiconductor supply chain resiliency issues, shifting focus from an initially planned investment in Germany.

Also Read: TikTok Suffers Setback in Initial Challenge to EU Big Tech Regulations

The US government’s support for domestic semiconductor production was further solidified with the 2022 approval of the Chips and Science Act, which allocated $52.7 billion in research and manufacturing subsidies. The latest award to GlobalWafers, part of the $30.1 billion announced through the chips subsidy program, is still subject to finalization following the Commerce Department’s due diligence.

This strategic investment in domestic semiconductor manufacturing capabilities marks a significant step towards enhancing the resilience and security of the US technology supply chain, ensuring that the nation remains competitive in the global semiconductor market.

China Says US Targeting of AI Not Helpful for Healthy Development

China Says US Targeting of AI Not Helpful for Healthy Development

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China has expressed significant resistance to U.S. efforts that target investments in artificial intelligence (AI) within its territory, claiming that these moves could cause splits in the world and impede the advancement of AI technology. China’s U.N. Ambassador Fu Cong made this declaration on Monday in response to the U.N. General Assembly’s passage of a resolution that was written by China and intended to improve international cooperation on AI capacity-building.

US Draft AI Investment Regulations

China Says US Targeting of AI Not Helpful for Healthy Development

Image Source: foxnews.com

Citing possible risks to U.S. national security, the United States this month unveiled proposed regulations that would forbid or require notification of certain investments made in China in the fields of artificial intelligence and other technologies. 

These actions are part of a larger campaign to keep US knowledge from supporting China’s technological innovations and positioning it as a dominating player in international markets.

China's Resolute Reluctance

Ambassador Fu Cong stated their position is that these sanctions are not right. He underlined that American measures do not support the development of an inclusive and equitable economic climate and urged Washington to change course. According to Fu, the limitations would lead to inconsistent norms and regulations, which would fracture global governance in addition to impeding the development of AI technology.

Encouraging a Collaborative Enterprise Environment

The international community is urged to guarantee a just, transparent, inclusive, and non-discriminatory business environment throughout the lifecycle of AI systems, according to a recently adopted U.N. resolution that was drafted by China. 

In order to develop safe, secure, and reliable AI technology, international cooperation is essential, as this resolution emphasizes.

"We don't believe that the U.S. government's position or decision will be helpful to the healthy development of AI technology, and will, by extension, divide the world in terms of the standards and rules governing AI," Fu said, emphasizing the significance of international unity in AI governance.

reuters.com

Also Read: Biden Administration Invests $504 Million to Develop 12 Nationwide Tech Hubs

An Appeal for Reversal

In response to an executive order that President Joe Biden signed in August of last year, the U.S. Treasury Department published these proposed regulations. This executive order is part of a larger strategic effort to protect American technological leadership and stop vital knowledge from being transferred to China, which might increase its technological might.

China’s call for lifting the U.S. limits on AI investments underscores the need for a more coordinated and cooperative approach to the development and regulation of AI technology, even while the debate over these investments rages on. The result of this geopolitical struggle will probably influence how international AI governance develops in the future.

 
US Invests $120 Million in Chipmaker to Expand Facility in Minnesota

US Invests $120 Million in Chipmaker to Expand Facility in Minnesota

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With the help of a $120 million grant from the US government, Polar Semiconductor will soon be able to greatly increase its production capacity. This money is a component of the $52.7 billion Biden administration commitment to support national semiconductor manufacturing and research. With the help of the funding, Polar Semiconductor will be able to increase its sensor and power chip production capacity in the United States in the following two years.

Specifics of the Award

US Invests $120 Million in Chipmaker to Expand Facility in Minnesota

Image Source: nytimes.com

The grant was given by the U.S. Department of Commerce, which emphasised the value of sensor and power chips and how shortages caused havoc across several industries during the COVID-19 epidemic. Undersecretary of Commerce Laurie Locascio stated that the aerospace, automotive, and defence industries rely heavily on Polar’s expertise for high-voltage applications. She mentioned that the investment will enable Polar to produce the upcoming generation of semiconductors, enhancing the country’s capacity for production.

Project Expansion and Ownership Shifts

The state of Minnesota will contribute an additional $75 million toward the $525 million expansion project. This cooperative endeavour emphasises how crucial the semiconductor industry is to the state and federal economies. Not to mention, Polar Semiconductor’s ownership structure is changing a lot. At the moment, Allegro MicroSystems owns 30% of the business and Sanken Electric of Japan owns 70%. The recent developments include the plans to invest $175 million to acquire approximately 59% of Polar by U.S. private equity firms Niobrara Capital and Prysm Capital. As a result, Allegro’s ownership will drop to roughly 10% and Sanken’s to roughly 30%, guaranteeing that Polar would be held by Americans to a large extent.

The Semiconductor Industry Context

The Biden administration’s larger plan to strengthen the US semiconductor industry includes this grant. Polar Semiconductor is not the only well-known company that has benefited from substantial funding. Up to $6.4 billion will be given to South Korea’s Samsung to expand its operations in Texas; Intel received $8.5 billion in March; and Taiwan’s TSMC received $6.6 billion last month to improve its production facilities in the United States. Additionally, the Commerce Department has stated that it intends to award Micron Technology a $6.1 billion grant for projects involving local semiconductor factories.

Also Read: Refreshworks Raises €750K to Accelerate AI in Dutch Businesses

Upcoming Prospects

The funds are intended to ensure a strong domestic supply of essential semiconductor components in order to address and prevent future interruptions like those encountered during the pandemic. The final amounts may change while the Commerce Department completes due diligence on all awards that have been announced.

To summarise, the allocation of $120 million to Polar Semiconductor is a calculated move aimed at fortifying the semiconductor supply chain in the United States, promoting creativity, and augmenting the nation’s technological autonomy.