Pakistan SAF technology developments are positioning the agricultural-rich nation as a potential dark horse in Asia’s race toward aviation decarbonisation. As Asian airlines face mounting pressure to reduce emissions amid global climate imperatives, Pakistan’s unique approach of converting agricultural waste into sustainable aviation fuel (SAF) could offer a regional model worth examining.

Converting an environmental problem into economic opportunity

The smog that blankets major Pakistani and neighbouring Indian cities each harvest season has become an annual crisis, driven largely by the burning of agricultural residue. The practice, particularly prevalent in Punjab province, releases particulate matter that compromises air quality across borders.

However, this challenge presents a technological opportunity that Pakistan’s emerging SAF sector aims to capitalise on. “Crop residues burned during both winter and summer in Pakistan represent an underutilised resource with immense potential for SAF production,” noted experts in an April 2025 report by The Express Tribune, highlighting a practical technological solution to an entrenched environmental issue.

The technology equation

Pakistan SAF technology implementation focuses on two principal conversion methods, each suited to different agricultural inputs:

1. Hydroprocessing Esters and Fatty Acids (HEFA): For lipid-based feedstocks including used cooking oil and non-edible oils
2. Alcohol-to-Jet (ATJ): Optimised for converting sugar-based inputs like wheat straw and rice husks

The technologies produce aviation fuels chemically identical to conventional jet fuel, requiring no aircraft modifications, and deliver substantially improved carbon profiles. A third technology using carbon dioxide capture remains in development but holds promise for further emissions reductions. Dr Adeel Ghayur, described by The Express Tribune as an “eminent energy scientist and expert in circular economy,” indicated that commercial SAF technologies can scale from 100,000 to one million tonnes of annual production capacity, with corresponding economic impacts.

Asia’s first private SAF project

The December 2024 announcement of a $121 million SAF facility in Sheikhupura represented a milestone not just for Pakistan but for all of Asia. According to Pakistan Today, the Asian Development Bank (ADB) has committed $86.2 million to the project, with the International Finance Corporation (IFC) providing $35 million. What makes this development particularly noteworthy in the Asian context is its designation by the ADB as “the first private sector-led SAF project in Asia and the Pacific,” excluding China.

For a region where state involvement typically dominates energy infrastructure, this private-sector approach merits attention from investors and policymakers across Asia. The facility is operated by SAFCO Venture Holdings Limited and owned by Taimur Shaikh and Ali Shaikh, and presents compelling environmental and economic metrics: projected annual production of 200,000 tonnes of SAF, reduction of 500,000 tonnes of carbon dioxide yearly, creation of 300 direct jobs, and facilitation of approximately 20,000 indirect employment opportunities in the supply chain and tertiary industries.

The regional competitiveness question

While Pakistan’s SAF ambitions are technologically sound, important questions remain about its competitiveness in an Asian market where Singapore, Japan, and South Korea have already established advanced biofuel capabilities.

The price difference remains substantial, with SAF currently commanding approximately $2,500 per metric tonne versus $700 for conventional jet fuel. For price-sensitive Asian carriers navigating post-pandemic recovery, this cost gap presents significant challenges to adoption.

Dr. Ghayur said in The Express Tribune that “strengthening R&D is essential for Pakistan to remain competitive in the global SAF market, secure its position as a hub for innovation, and maintain leadership as SAF adoption rises across Asia.” The acknowledgement reflects awareness of the technological race underway in the region.

For Asian nations with similar agricultural profiles – Bangladesh, Vietnam, Thailand, and Indonesia – Pakistan’s SAF initiative offers a potential template for converting agricultural waste into aviation biofuels and addresses seasonal air pollution events. The multiplicative benefits – enhanced energy security, emissions reductions, rural economic opportunities, and foreign direct investment – align with development priorities across South and Southeast Asia.

Four-dimensional solution

Pakistan SAF technology implementation addresses four interconnected challenges that resonate in developing Asian economies:

1. Energy security: Reducing petroleum import dependence via domestic production
2. Economic development: Creating value-added manufacturing with substantial job creation potential
3. Foreign direct investment: Attracting capital for industrial-scale bioprocessing operations
4. Environmental mitigation: Addressing agricultural burning emissions and aviation carbon footprints

Critical path forward

For Pakistan’s SAF sector to achieve its potential, several hurdles will need to be surmounted. First, continued investment beyond the initial Sheikhupura facility will be necessary to achieve meaningful scale. Second, as SAF technologies evolve, Pakistan will need to maintain technological competitiveness through sustained R&D investment. Finally, efficiency improvements in agricultural waste collection and transportation will be essential to maintain favourable economics.

The byproduct potential enhances the business case further, with SAFCO’s facility projected to produce 18,000 tonnes of bionaphtha annually for sustainable plastics production, according to Pakistan Today.

As Dr Ghayur concluded in The Express Tribune, “The comprehensive policy roadmap will serve as both a blueprint and a catalyst to propel Pakistan to the forefront of the global SAF revolution.”

While significant challenges remain in scaling production, optimising costs, and matching competitive alternatives, Pakistan’s SAF technology trajectory represents a distinctive approach to circular economy implementation with potential regional application across all of Asia’s agricultural economies.

The post Could Pakistan SAF technology transform its agricultural waste crisis? appeared first on TechWire Asia.

“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.

The post US panic-buying as Trump’s tech tariffs hit 100%+ appeared first on TechWire Asia.

Tesla’s once unassailable position in the electric vehicle (EV) market continues to erode in 2025 as Chinese automaker BYD dominates the global EV landscape with its recipe of innovation and aggressive pricing.

The US electric vehicle pioneer, led by Elon Musk, now struggles against BYD’s global expansion and technological advances that are reshaping consumer expectations worldwide. The power shift has fundamentally altered the competitive dynamics of the global EV industry, with profound implications for automakers across all markets.

Revenue milestone

According to a stock filing published Monday at the Shenzhen stock exchange, BYD’s 2024 revenue reached 777.1 billion yuan ($107.2 billion), ahead of Tesla’s $97.7 billion. The crossover in leadership position marks the first time the Chinese automaker has surpassed its American rival in revenue.

“BYD’s revenue results represent a 29% increase from the previous year and outperformed a Bloomberg forecast of 766 billion yuan,” reported AFP. BYD’s net profit reached 40.3 billion yuan, up 34% from 2023, and it recorded a record quarterly profit of 15 billion yuan in Q4 2024. The timing is significant, coinciding with Tesla’s declining sales trajectory in most major markets and BYD’s aggressive expansion into international territories previously dominated by Western manufacturers.

The “Model 3 killer” strategy

Perhaps most threatening to Tesla’s position is BYD’s direct assault on its bestselling Model 3. On Sunday, BYD launched the Qin L, priced at just 119,800 yuan ($16,517), positioning it as what the South China Morning Post describes as a “Model 3 killer.”

For comparison, the basic edition of Tesla’s Model 3 in China is priced at 235,500 yuan – more than double. Despite the price difference, the Qin L offers competitive specifications with a driving range of 545km to Model 3’s 634km. Both cars feature preliminary self-driving software and digital cockpits, demonstrating BYD’s ability to at least match Tesla’s technology at a significantly lower price point.

“BYD has already impressed most Chinese drivers as a maker of reliable electric cars, and its new products that are affordable to middle- and low-income consumers will lure some Tesla fans away from its Model 3 and Model Y,” said Tian Maowei, a sales manager at Yiyou Auto Service in Shanghai. “As it enjoys a pricing advantage, Qin L will easily generate thousands of deliveries a month.”

Meanwhile, Guangzhou-based Xpeng is challenging Tesla and BYD with its Mona M03, priced the same as the Qin L at 119,800 yuan. The company shipped more than 15,000 units of the Mona M03 in February.

Global sales disparity: How BYD dominates Tesla

The contrast in sales performance is stark. BYD reported selling 322,846 cars in February 2025, up 164% on last year. According to AFP, its monthly sales jumped 161% in February to 318,000 units. Meanwhile, Tesla’s shipments from China dropped 49% in February, with the automaker shipping 30,688 vehicles – the lowest monthly figure since July 2022.

On a broader level, Tesla’s market share in China has dropped from more than 16% of the market in 2022 to 4.3% in February 2025.

Tesla’s global decline

Tesla’s challenges extend beyond China. According to TIME, the company’s stock dropped 15% on Monday, its steepest decline in five years. European sales have been particularly hard hit, with Tesla selling just 7,517 vehicles in Europe in January, half of what it sold in January the previous year, despite overall rising EV sales in the region.

In Germany, Tesla sales were down more than 70% compared to last year, with less than 1,500 new Teslas registered in February. Similar patterns emerged across Europe, with sales falling 50% in Portugal, 45% in France, 42% in Sweden, and 48% in Norway between January and February 2025. The UK is the only country where the brand remains in increased demand.

Australia has also seen Tesla sales drop over 70% compared to last year, with just 1,592 sales in February compared to 5,665 in February 2024, according to The Guardian. Even in California, Tesla’s home market and the largest domestic market for EVs in the US, sales have slumped for five consecutive quarters.

Technology race

BYD isn’t winning on price alone. The company is pushing technological innovation, recently unveiling its “Super e-Platform” battery and charging system. The system boasts peak speeds of 1,000 kilowatts – double the 500 kilowatts currently offered by Tesla’s Superchargers. The system allows cars to travel up to 470 kilometres after just a five-minute charge.

Last month BYD announced that at least 21 of its models, including the Seagull hatchback that starts at just 69,800 yuan, would be fitted with its advanced driver assistance system at no additional cost. The system allows cars to navigate and drive semi-autonomously on roads and park itself.

Tesla’s response

To counter its sales decline in China, Tesla is currently designing a cheaper version of its bestselling Model Y. According to the South China Morning Post, the new edition will be 20% cheaper than the existing variants available in China, which range in price from 263,500 yuan to 303,500 yuan. The US firm plans to start making the car at its Shanghai factory next year.

As reported by Reuters, Tesla has also sent engineers to work with Baidu to integrate Chinese map data with Tesla’s driver-assistance systems, helping vehicles better recognise mainland China’s lane markings and traffic signals. When asked about managing his various businesses amid these challenges, Musk told Fox Business’s Larry Kudlow that he was doing so “with great difficulty.”

Market valuation gap

Despite BYD’s revenue gains, Tesla maintains a significant lead in market valuation. Fortune reports that, “Tesla is worth about $800 billion despite a share-price rout that’s seen the stock plunge 38% this year. BYD has a market capitalisation closer to $157 billion.”

Tesla also continues to lead in profitability ratio, with a 2024 net income of $7.6 billion compared to BYD’s approximately $5.6 billion (40.3 billion yuan). This suggests that while BYD dominates sales volume and revenue, Tesla maintains higher profit margins per vehicle.

Outlook

Wang Chuanfu, BYD’s chairman and founder, stated that Chinese auto brands in the era of intelligence-led vehicles were no longer merely followers but at the forefront of the trend. “They’re ‘daring’ to be first in the world and are collaborating with other domestic brands to go global and move up the value chain,” he said, according to Fortune.

The company that once dominated the EV landscape faces questions about its positioning and strategy. With production shortages affecting its upgraded Model Y deliveries in Shanghai and competitors offering comparable technology at half the price, Tesla’s first-mover advantage has largely evaporated. The global EV race has entered a new phase, and BYD dominates Tesla in ways few would have predicted just a few years ago.

The post BYD dominates Tesla: How Chinese EV giant is winning the global EV race appeared first on TechWire Asia.

China’s semiconductor prowess is becoming increasingly evident in important technology sectors, So reveals a recent report by the Korea Institute of Science and Technology Evaluation and Planning (KISTEP).

The South Korean think tank’s research indicates China has surpassed South Korea in foundational capabilities across nearly all semiconductor technology areas, including the memory sector, where South Korean firms have traditionally been global leaders.

KISTEP findings reveal a shifting semiconductor landscape

The KISTEP report is based on a survey of 39 South Korean semiconductor experts conducted in 2024, and highlights a significant shift in the global semiconductor landscape. According to the findings, China now outranks South Korea in memory chip technologies, where South Korean giants Samsung Electronics and SK Hynix have maintained dominance for a generation.

China now ranks second globally, trailing only the US in the sector. The change marks a substantial difference from KISTEP’s previous findings published in 2022, when South Korea held the second position after the US in the memory and advanced packaging technology sectors. China ranked third and fourth in these areas at that time, respectively.

“Even in the memory market, where Korea had maintained its unrivalled status, Chinese semiconductor companies are increasing their market share,” states the latest KISTEP report, adding that China is ramping up production of legacy chips “with little technology gap” compared to industry leaders.

Measuring China semiconductor dominance: technology scores and capabilities

The detailed evaluation conducted last year reveals that China’s high-density resistive memory technology scored a ranking of 94.1% (with 100% representing the highest level), outperforming South Korea’s 90.9%. This statistic is particularly noteworthy as memory technology has been South Korea’s most substantial semiconductor sector to date.

The report further demonstrates China’s advance in multiple semiconductor domains. In high-performance and low-power AI semiconductor technology, China scored 88.3%, exceeding South Korea’s 84.1%. It registered 79.8% for power semiconductors, significantly surpassing South Korea’s 67.5%, and in next-generation, high-performance sensing technology, China achieved 83.9% compared to South Korea’s 81.3%.

The two countries achieved parity only in advanced packaging technology, with both scoring 74.2% in foundational capabilities. However, Taiwan leads in semiconductor advanced packaging technology commercialisation, while the US dominates all other technology sectors in both foundational capabilities and commercialisation perspectives.

The KISTEP report also evaluated the technological lifecycle of the semiconductor sector, noting that South Korea maintains an advantage in process and mass production, while China excels in foundational capabilities and design. The report identifies South Korea’s foundational capabilities and design technology as the weakest links in its semiconductor life cycle, ranking lowest among evaluated countries.

Chinese memory manufacturers have been making significant strides in narrowing technology gaps with global industry leaders. ChangXin Memory Technologies (CXMT), a dynamic random access memory (DRAM) chip producer, has developed consumer-grade chips using 16-nanometer processing technology.

While still behind the 12-nm and 14-nm nodes used by Samsung, SK Hynix, and US-based Micron Technology in DDR5 memory production, the progress represents the closing of the technological divide. Growing Chinese semiconductor dominance comes despite extensive US export restrictions limiting China’s access to advanced chips and chip-making technologies. In response to those challenges, Beijing has implemented what observers call a “whole nation” approach to achieving semiconductor self-sufficiency, including establishing the country’s largest-ever chip investment fund last year.

Challenges and opportunities in the global chip race

The report highlights concerns about the impact of geopolitical tensions on South Korea’s semiconductor industry, including “the risk of Korea’s exports falling or being forced out of the Chinese market due to US export controls.” Other challenges identified include the exodus of core talent, intensifying competition in AI semiconductor technology, South Korea’s domestically focused policies, and rapid shifts in supply chains.

The findings represent a serious situation for South Korea, which has built much of its economic success on its leadership in the semiconductor market. To maintain its high-ranking position, the country must address its foundational capabilities and design technology shortcomings.

Taiwan remains a leader in advanced packaging technology commercialisation, while the United States continues to lead in overall semiconductor technology, both in foundational capabilities and commercialisation. However, China’s rapid advancement despite well-publicised international restrictions demonstrates the effectiveness of its focus and its national strategy to achieve technological self-sufficiency.

As China’s domestic semiconductor industry develops, particularly in memory technologies (which have traditionally lagged behind), the global semiconductor landscape is experiencing a significant realignment. The China semiconductor dominance emerging in foundational capabilities suggests that despite export controls and various restrictions imposed on the market, the country is making substantial progress toward its goal of technological self-reliance.

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Malaysia’s 5G Advanced rollout has moved forward, as Digital Nasional Berhad (DNB) and Ericsson announce a new partnership.

The collaboration was announced during Mobile World Congress (MWC) 2025, and aims to implement 5G Advanced technologies across industrial zones and introduce what the companies describe as the “world’s first 5G-powered mobile workspace solution.” The partnership centres on two initiatives: a 5G Advanced deployment to enhance industrial connectivity across Malaysia, and a 5G-powered mobile workspace solution that is designed to replace traditional wi-fi in enterprise environments.

Positioning Malaysia as a 5G global frontrunner

Datuk Azman Ismail, CEO of DNB, highlighted the significance of this collaboration. “By combining DNB’s expertise in 5G deployment with Ericsson’s global leadership in connectivity, we are strengthening Malaysia’s position as a digital economy leader, powering innovation across key sectors like manufacturing, healthcare, and agriculture,” he said.

The partnership’s core focus areas include:

1. Accelerating enterprise digitalisation: Expanding 5G connectivity in strategic industrial zones and collaborating with mobile network operators to deliver connectivity services.
2. Driving IoT and wearables innovation: Using Reduced Capability (RedCap) technologies to enable connectivity for industrial automation and smart devices.
3. Co-creating future-ready solutions: Using DNB’s 5G Advanced network as an platform to develop applications with solution providers, developers, and academic institutions.
4. Advancing sustainability: Integrating AI-powered energy optimisation tools to maximise efficiency and reduce environmental impact, in support of Malaysia’s journey net-zero emission goals.
5. Strengthening network security: Implementing security measures to help safeguard Malaysia’s digital infrastructure against cyber threats.
6. Expanding global API ecosystem: Integrating with a worldwide Application Programming Interface network.

DNB implements a 5G-based office network solution

In a separate announcement during MWC 2025, DNB said it has begun deploying Ericsson’s Enterprise Virtual Cellular Network (EVCN) at its Kuala Lumpur headquarters. The companies claim this is the first instance of a complete “5G-first” office environment, replacing existing wi-fi with cellular technology. Instead of using standard wi-fi infrastructure, DNB’s headquarters now connects devices through 5G cellular networks. The system integrates with Microsoft Intune and Entra ID to manage the 5G-enabled client hardware throughout the organisation.

The change brings several advantages over traditional enterprise networking solutions:

• Security and control: 5G infrastructure eliminates extant and future wi-fi vulnerabilities, and gives administrators greater control over devices’ connections.
• Operational efficiency and cost savings: Simplified network management and large-scale device setup reduce the need for legacy infrastructure, cutting costs.
• Mobility and user experience: Employees get consistent experiences on their 5G-enabled devices, in the office or working remotely.

“By integrating Ericsson’s Enterprise Virtual Cellular Network with DNB’s nationwide 5G infrastructure, we are empowering organisations to move beyond traditional IT models and embrace a new era of cloud-native, secure, and scalable solutions,” David Hagerbro, Head of Ericsson Malaysia, Sri Lanka and Bangladesh said.

Implications of Malaysia’s 5G Advanced rollout

Malaysia’s implementation of 5G-A systems represents an early test case worth monitoring. While DNB and Ericsson have outlined ambitious plans, the accurate measure of success will be in practical adoption rates, measurable efficiency improvements, and the results of cost-benefit analysis by early adopters.

Key questions remain about how widely these solutions will be adopted beyond initial deployments:

• Will the promised security benefits outweigh the costs of transitioning from established WiFi infrastructure?
• Can the system scale effectively in different enterprises with varying technical requirements?
• Will the everyday experience of workers and businesses show meaningful improvements over current connectivity solutions?

The coming months will likely reveal whether Malaysia’s approach to 5G Advanced implementation offers a viable model for other countries or whether adjustments will be needed as real-world applications expose unforeseen challenges. Technology observers across Southeast Asia will be watching to see if the technology delivers on its potential.

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The AI investment surge among tech giants shows no signs of slowing. Amazon, Microsoft, Google, and Meta still appear to be planning investment of over $320 billion in AI infrastructure by 2025, even as Chinese startup DeepSeek demonstrates potentially more efficient AI model development methods.

The unprecedented level of capital expenditure, up from $246 billion in 2024, reflects Big Tech’s conviction that AI represents a transformative opportunity, one that justifies massive infrastructure investment. The spending plans persist despite investor concerns about DeepSeek’s recent claims that it can train and operate significantly more efficient AI models.

Amazon is leading the investment. The company plans to allocate over $100 billion in capital expenditures this year, marking a significant increase from $77 billion in 2024. The company’s CEO, Andy Jassy, defended the aggressive spending strategy during a recent earnings call, characterising AI as a “once-in-a-lifetime type of business opportunity” for Amazon Web Services (AWS).

Microsoft is also positioning itself as a major contender in the AI cloud race, and has earmarked $80 billion for AI-related infrastructure in 2025. CEO Satya Nadella points to compelling evidence supporting the investment strategy, noting that Microsoft’s AI business “has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”

Nadella’s perspective on AI demand draws from the Jevons paradox – the economic observation that increased efficiency in resource use leads to higher, not lower, consumption. “As AI gets more efficient and accessible, we will see its use skyrocket, turning it into a commodity we just can’t get enough of,” Nadella stated in a recent social media post.

Google’s parent company, Alphabet, has also adopted on aggressive stance, planning approximately $75 billion in capital expenditures for 2025, significantly exceeding analysts’ expectations of $58 billion. Despite concerns about the company’s AI strategy and slowing cloud growth, CEO Sundar Pichai maintains that Google is “building, testing, and launching [AI] products faster than ever.”

Meta’s approach to the AI investment surge stands out. The company plans to spend $60-65 billion on capital in 2025, up from $39 billion in 2024. The company’s strategy of pursuing an “American standard” for open-source AI models has resonated with investors, particularly given Meta’s demonstrated ability to monetise AI through advanced ad targeting.

Industry analysts are divided over the impact of DeepSeek’s developments on Big Tech’s AI investments. Jesse Cohen, senior analyst at Investing.com, voiced investor concerns about the need for “clearer timelines on when AI spending translates to earnings and sales growth, not just promises.”

However, Dan Ives, managing director at Wedbush Securities, dismisses DeepSeek as a serious threat to Big Tech’s AI ambitions. “This is an AI arms race, and the Temu of AI DeepSeek is not changing that… [The] AI Revolution [is] just starting.”

The persistence and continued growth of AI investment suggests that significant technology companies view DeepSeek’s efficiency gains as a catalyst for broader AI adoption rather than a threat to their infrastructure investments.

The market response to the massive levels of investment has been mixed. While Meta’s proposed investments in AI have been well-received (shares rose following its earnings call), other technology firms have faced more sceptical investors. After announcing its spending plans, Amazon’s stock fell more than 5%, while Alphabet’s share value dropped more than 8% after its earnings report announcement.

Despite the market’s reactions, technology leaders remain convinced that AI investment represents a strategic necessity rather than an optional luxury. As the industry continues to evolve, the race to build AI infrastructure is intensifying rather than slowing, suggesting that DeepSeek’s developments may indeed be accelerating, not dampening the industry’s AI ambitions.

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A dramatic shift in open-source AI development is emerging from China, where startup DeepSeek fundamentally challenges how artificial intelligence evolves. By making its technology freely available for anyone to download, modify, and build on, DeepSeek has ignited a debate about the future of AI and global technological leadership.

The cost revolution in open-source AI development

When DeepSeek’s R1 model overtook ChatGPT as the most downloaded free app on the US Apple App Store in January 2025, it represented more than just market success – it signalled a potential shift in AI economics.

At just $5.6 million in development costs – roughly one-tenth the price of Meta’s similarly open-source Llama model – DeepSeek has demonstrated that cutting-edge AI doesn’t require massive investments. Unlike established players like OpenAI and Anthropic, whose models remain closely guarded secrets, DeepSeek opted for transparency, offering its code and technical documentation to the global developer community.

The approach to open-source AI development hasn’t compromised capability; the model demonstrates reasoning and mathematical skills comparable to more expensive rivals. The implications extend beyond finances. Traditional AI development requires massive computing resources, contributing to high electricity consumption and carbon emissions.

DeepSeek’s efficient training method could pioneer more sustainable AI scaling, which is particularly important as these technologies become ubiquitous. However, the “open-source” designation demands scrutiny. According to the Open Source Initiative (OSI), true open-source AI must provide detailed information about training data and allow unrestricted study, use, and modification of the system.

While DeepSeek has released its model weights and some technical documentation, it hasn’t fully disclosed its training data, raising questions about complete transparency.

Global impact and security concerns

The democratisation of AI through cost-effective open-source development could accelerate innovation worldwide. Smaller companies and developers in regions with limited access to cutting-edge technology can now build on established models rather than starting from scratch. The collaborative approach could catalyse more diverse applications and solutions to real-world problems.

Yet this accessibility comes with risks. Critics, particularly in the US, worry about potential misuse of open-source AI models, from developing bioweapons to spreading misinformation. The controversy intensified when OpenAI announced an investigation into whether DeepSeek may have “inappropriately distilled” its models – essentially using OpenAI’s outputs to train its competing system.

The geopolitical implications are significant. As Meta CEO Mark Zuckerberg noted, “The is a huge geopolitical competition, and China’s running at it super hard.” DeepSeek’s success has prompted reflection on the traditional American model of proprietary AI development, with some arguing that the US should embrace more open methodologies to maintain technological leadership.

Looking ahead, DeepSeek’s breakthrough, with its $5.6 million price tag, could reshape the entire AI landscape. The company has proven that efficient, cost-effective open-source AI development is possible without the massive resources typically associated with cutting-edge models.

This could lead to a more diverse and competitive AI ecosystem, with innovation emerging from unexpected quarters. However, the path forward remains complex. Regulatory frameworks are evolving as governments struggle to balance innovation with security concerns worldwide.

The Trump administration has yet to fully articulate its AI policy, though some officials have supported open-source development. What’s clear is that DeepSeek’s efficient approach to open-source AI development has challenged fundamental assumptions about the field, forcing the industry to reconsider what’s possible with limited resources and an open approach.\

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Chinese tech giant Huawei shattered market expectations on Wednesday, announcing a staggering 860 billion yuan ($118.3 billion) in revenue for 2024 – its fastest growth since 2016. The 22% surge is a direct challenge to US technology restrictions, marking a pivotal moment in the ongoing technology trade war between the world’s two largest economies.

Chairman Howard Liang Hua’s announcement at a Guangdong provincial government conference revealed that the company’s “overall operations met expectations,” powered by robust performance in its consumer business segment and rapidly-expanding smart car solutions. 

The achievement is particularly noteworthy as it represents Huawei’s second-highest revenue figure, following a 891 billion yuan peak in 2020. The strong performance in 2024 shows a remarkable recovery from the 704.2 billion yuan posted in 2023, highlighting the company’s successful adaptation to a challenging operating environment.

The significance of the growth becomes more apparent when considering the context of US sanctions imposed in May 2019. The restrictions were further tightened in August 2020, explicitly targeting Huawei’s access to advanced semiconductors that were developed or produced using US technology, regardless of their manufacturing location. 

Despite those substantial obstacles, Huawei has managed to sustain its operations and significantly expand them.

Strategic pivots and innovation 

However, the path to success has required significant investments and strategic adjustment. The company’s financial data reveals a 13.7% decline in net profit to 62.9 billion yuan for the first nine months of 2024, compared to 72.9 billion yuan in 2023. 

The reduction in profitability reflects Huawei’s aggressive investment in research and development, a crucial strategy in its quest for technological self-sufficiency. Huawei’s response to US restrictions has been multifaceted, positioning itself as a leader in China’s push for technological independence. 

Founded in 1987 by Ren Zhengfei, the company has become emblematic in China’s efforts to overcome US restrictions. The restrictions were initially imposed due to concerns about potential military applications of US core technology. The company’s recent initiatives in artificial intelligence underscore its commitment to maintaining technological leadership. 

Last week, Huawei’s cloud-computing unit made a significant move by making DeepSeek’s AI models available to end users through its Ascend cloud service. According to company statements, the performance of the models matches those running on global premium graphic processing units, demonstrating Huawei’s continued ability to compete at the highest technological levels.

Prospects and industry impact 

Liang’s comments about AI being “at an accelerated stage of development” and its application “ushering in a critical period of time” suggest Huawei’s strategic focus on emerging technologies. 

This perspective was reinforced by Guangdong Communist Party chief Huang Kunming, who praised Huawei’s “leading digital technology” and its role in empowering industries. The company’s success in 2024 has implications beyond its operations. 

As a major player in global technology markets, Huawei’s ability to grow despite restrictions challenges assumptions about the effectiveness of trade sanctions in limiting technological advancement. The company’s consumer business revival, particularly in smartphone sales, and its expansion into new areas like smart car solutions demonstrate its market adaptation and innovation capacity.

Huawei’s performance raises important questions about the future of global technology supply chains and the ongoing technology competition between the US and China. While the company faces continued challenges in accessing certain advanced technologies, its successful pivot to alternative growth strategies and focus on self-sufficiency suggests a resilient business model that can withstand significant external pressures.

The company’s ability to maintain strong revenue growth while investing heavily in research and development positions it well for future challenges. However, the impact of reduced profit margins and the ongoing need for technological self-sufficiency will likely continue to shape Huawei’s strategic decisions in the coming years.

This remarkable revenue performance in 2024 demonstrates Huawei’s resilience and highlights the complex nature of global technology competition, where innovation and adaptation can sometimes overcome even the most stringent regulatory challenges. 

The post Huawei: Revenue growth defies US tech restrictions with 22% surge in 2024 appeared first on TechWire Asia.

The latest escalation in the US-China trade war has sent shockwaves through global markets as Beijing unveiled a calculated series of retaliatory measures against American businesses, marking a significant intensification of economic tensions between the world’s two largest economies.

The Chinese government’s response, triggered by President Trump’s blanket 10% tariff on Chinese imports, demonstrates a sophisticated approach to economic warfare by the Chinese. Its measures target strategic sectors from technology to rare earth metals with careful calibration of their impact on domestic markets.

Strategic targeting of American business interests

Beijing has said it will introduce a 10% tariff on US agricultural machinery and a 15% charge on crude oil imports, which will likely pressure specific US sectors rather than wage all-out economic warfare.

The measured approach is particularly evident in China’s targeting of US tech giant Google through an anti-monopoly investigation, despite the company’s limited presence in the Chinese market since 2010. The energy sector measures are more noteworthy, with China imposing a 10% tax on liquefied natural gas (LNG) imports from the US. While China has been increasing its LNG imports from America, with volumes nearly doubling since 2018, the overall impact will be limited.

US imports account for just 1.7% of China’s total crude oil purchases from abroad, suggesting Beijing has chosen its targets carefully, as ones that won’t significantly disrupt domestic energy security. China’s strategic calculation is further reinforced its existing strong energy relationships with alternative supplying countries, particularly Russia, where it has secured oil at discounted rates.

Rare metals and resource control

The most significant aspect of China’s response lies in its restriction of rare metal exports, which will have far-reaching implications for global supply chains right across the technology sector. With China controlling approximately 90% of global refined rare metal output, imposing export controls on 25 important metals, such as tungsten, could affect everything from aerospace technology to consumer electronics.

The timing of President Trump’s subsequent overture to Ukraine for rare earth metals supply, in exchange for $300 billion in support, underscores the significance of this particular countermeasure.

The automotive sector has not been spared, with China implementing a 10% tariff on pick-up trucks and large cars made in the US. However, this measure’s impact may be limited given China’s relatively low import volume of American vehicles and its established automotive trade relationships with European and Japanese manufacturers.

Beijing’s strategy consistently targets sectors where alternative suppliers are readily available to it. In a move that signals Beijing’s willingness to use regulatory power as a trade weapon, the addition of PVH, owner of Calvin Klein and Tommy Hilfiger, to China’s ‘unreliable entity’ list represents a deliberate targeting of American consumer brands. The designation could lead to difficult challenges for these companies in the Chinese market, including potential fines, regulatory investigations, and complications with employee visas.

The Chinese policies mirror similar actions the US took through its entity list, highlighting the increasingly complex interplay between trade policy, regulatory oversight, and jingoism. Agricultural machinery tariffs deserve special attention. They align with China’s broader strategy of reducing dependence on foreign technology while building domestic capabilities. In recent years, China has significantly increased investments in the sector, making these tariffs more about protecting and promoting domestic industry than punishing US manufacturers.

The dual-purpose approach characterises much of Beijing’s response to US trade pressure. According to a research note by Julian Evans-Pritchard, head of China Economics at financial insight firm Capital Economics, China’s targeted measures affect approximately $20 billion worth of annual imports, representing about 12% of China’s total imports from the US. While this appears modest compared to the US’ $450 billion worth of targeted Chinese goods, Beijing’s selective response suggests a strategic approach aimed at maximising impact while maintaining economic stability.

Global implications and future outlook

The global implications of the trade dispute extend beyond bilateral relations. Restricting rare metal exports could create ripple effects throughout global supply chains, affecting industries from consumer electronics to defence manufacturing.

The global business community will watch closely as both nations prepare for potential negotiations, with Trump announcing plans to speak directly with Chinese President Xi Jinping.

The scheduled implementation of China’s measures on February 10 is a deadline that will reveal either a diplomatic breakthrough or a further deterioration in US-China trade relations. The current escalation represents more than just a trade dispute; it reflects deeper tensions between the world’s two largest economies as they navigate issues of technological supremacy, economic security, and global influence.

As this new chapter in the US-China trade war unfolds, one outcome may well be different speeds of innovation in an industry that has always used the word ‘global’ when discussing the rapid speed of technological change.

The post Trade War 2.0: China strikes back at US with tech and metal sanctions appeared first on TechWire Asia.

Zebra Technologies wants to change how AI-powered frontline operations to reshape Asia Pacific’s business landscape in 2025, as Asian organisations face pressure to maximise efficiency. The transformation comes at a important time – CISQ estimates that poor software quality cost US businesses alone $2.41 trillion in 2022, underscoring the urgent need for practical, purpose-driven technology solutions that deliver accurate results.

“Elements of our three-pillar strategy have been around for quite some time, but what’s changing the frontline today is intelligent automation,” said Tom Bianculli, chief technology officer at Zebra Technologies, speaking to reporters at a briefing during Zebra’s 2025 Kickoff in Perth, Australia. “We’re not just digitising workflows – we’re connecting wearable technology with robotic workflows, enabling frontline workers to interact with automation in ways that were impossible just five years ago.”

Changing retail with AI-powered frontline operation

The transformation is already yielding results in real-world applications, according to Zebra Technologies. Bianculli highlighted a recent co-innovation with a major North American retailer: “You snap a picture of a shelf in one second, the traditional AI identifies all the products on the shelf, identifies where there’s missing product, maybe misplaced product. Then it makes that information available to a genAI agent that then decides what should you do.” What traditionally required multiple manual steps now happens automatically. “If it sees what’s missing and there’s back stock, it automatically generates a task for someone else, the right person, to fill that back stock,” Bianculli explained. He said the automation enables retailers to accomplish with three people what previously required four.

APAC’s strategic transformation

The APAC region is proving to be particularly receptive to these types of innovations. According to IBM research presented at the briefing, 54% of APAC enterprises now expect AI to deliver long-term innovation and revenue generation opportunities. The region’s 2025 AI investments reflect that optimism:

• 21% of investment is focused on enhancing customer experiences
• 18% is directed at business process automation
• 16% is invested in sales automation and customer lifecycle management

Ryan Goh, senior vice president and general manager of Asia Pacific at Zebra Technologies, showcased practical applications already in use: “We have customers in e-commerce using ring scanners to scan packages, significantly improving their productivity compared to traditional scanning methods,” he said.

Technology at the edge

Zebra’s approach to frontline operations focuses on:

1. AI devices: Built with native neural architecture to support on-device AI models
2. Multimodal experiences: Models that can see, hear, interpret, and speak just like a cognitive human being
3. GenAI agents: Models that distribute workload between device and cloud for specific workflows

“We are also working [running] some of these large language models actually down on the device,” Bianculli revealed, presenting solutions for environments where there is no internet connectivity. “If we can run the model down on the mobile computer, we can still enable those use cases in those environments.”

Market-specific solutions

The company’s regional strategy addresses distinct markets in the APAC’s diverse economic landscape. Ryan expressed optimism for the region’s key markets, particularly as now follows a period of market adjustment during which customers had previously overbought. Technology adoption is surging in India, for example, where GDP is projected to grow by 6.6%, with manufacturing showing 7% year-over-year growth. 96% of Indian organisations surveyed by WEF are running AI programs, the press were told, and the company’s focus is on enhancing operational efficiency through foundational technologies.

“Tech – from barcodes and RFID, will enable sectors like logistics to overcome challenges and grow,” Goh explained, stating how basic automation can drive digital transformation.

Japan presents unique opportunities, with a projected 1.2% GDP growth and 70% GDP derived from services. Transport and logistics and rising domestic and tourist retail activity are the primary growth-drivers. The country’s distinct challenge with labour shortages and an ageing workforce is accelerating automation adoption. This has led to unexpected applications of some of Zebra’s solutions, particularly in the tablet sector.

“We used to think that tablets are for retail, but the Bay Area proved us wrong,” Goh said. “A lot of [tablets] are in manufacturing. We have also recently launched our new tablet portfolio. KC50 is a kiosk that enables retailers to move the task of scanning payment right to customers rather than having staff do it.” The shift exemplifies how market-specific challenges are driving innovative application of existing technologies. For example, in regional implementations, Goh said customers can unexpectedly optimise workflows. “We have a customer optimising workflow in their warehouse with RFID. That helped improve [and] optimise workflow, drive efficiency and reduce mistakes.”

Future-ready operations

According to Gartner’s projections, by 2027, 25% of CIOs will use augmented connected workforce (ACWF) initiatives to reduce training times by 50% for certain roles. This aligns with Zebra’s recent announcement of its Z Companion that uses generative AI and large language models. It’s set for pilot deployment with select customers in Q2 of this year. With approximately $5B in global sales, 120+ offices in 55 countries, and 10,000+ channel partners across 185 countries, Zebra is positioning itself in the middle of the region’s transformation.

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