supply chain Asia | TechWire Asia https://techwireasia.com/tag/supply-chain/ Where technology and business intersect Tue, 15 Apr 2025 10:31:52 +0000 en-GB hourly 1 https://techwireasia.com/wp-content/uploads/2025/02/cropped-TECHWIREASIA_LOGO_CMYK_GREY-scaled1-32x32.png supply chain Asia | TechWire Asia https://techwireasia.com/tag/supply-chain/ 32 32 South Korea’s defiant response to Trump’s tariffs https://techwireasia.com/2025/04/south-koreas-defiant-response-to-trumps-tariffs/ Tue, 15 Apr 2025 10:31:52 +0000 https://techwireasia.com/?p=241733 South Korea increased semiconductor investment to $23.2 billion. Seoul’s expanded support package to strengthen domestic chipmakers. Samsung and SK Hynix navigate growing US protectionism. South Korea has increased its semiconductor investment dramatically to ₩33 trillion (US$23.2 billion) as the nation moves to shield its important chip industry from mounting global pressures. The expanded support package, […]

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  • South Korea increased semiconductor investment to $23.2 billion.
  • Seoul’s expanded support package to strengthen domestic chipmakers.
  • Samsung and SK Hynix navigate growing US protectionism.
  • South Korea has increased its semiconductor investment dramatically to ₩33 trillion (US$23.2 billion) as the nation moves to shield its important chip industry from mounting global pressures.

    The expanded support package, announced Tuesday, represents a 27% increase from the ₩26 trillion that was pledged last year, underscoring Seoul’s determination to protect an industry that accounted for 21% of the country’s total exports in 2024. The announcement comes just days after president Trump stated he would reveal new semiconductor import tariff rates within the week, creating additional uncertainty for Korean chipmakers already navigating complex geopolitical tensions.

    Strategic response to “increased uncertainties”

    South Korean officials cited “increased uncertainties” with the United States as a driver behind the enhanced funding. The comprehensive package covers infrastructure development, low-interest loans for companies in the sector, and initiatives to recruit skilled workers in semiconductor firms.

    Government officials confirmed that at least ₩4 trillion ($2.8 billion) will be deployed by 2026. Finance Minister Choi Sang-mok spoke about the government’s approach, following the announcement: “We will consult actively with the US over its Section 232 investigations into semiconductor imports to minimise any adverse impact on domestic companies.”

    The expanded financial assistance programme directed specifically at the chip industry, will now reach ₩20 trillion ($14 billion), up from the previously allocated ₩17 trillion, according to the joint statement from multiple government ministries.

    Protecting a vital economic engine

    The significance of this South Korean semiconductor investment cannot be overstated. In 2024, the country’s semiconductor exports reached $141.9 billion, with shipments to China and the US standing at $46.6 billion and $10.7 billion respectively. South Korea hosts the world’s top memory chip manufacturers, Samsung Electronics and SK Hynix, the latter an important partner to chip giant Nvidia.

    However, industry analysts have noted that Korean firms have fallen behind competitors in specialised areas like chip design and contract manufacturing, creating additional pressure to innovate.

    Navigating Trump’s tariff threats

    The timing of Seoul’s announcement appears calculated to have maximum impact, coming just days after Trump signalled imminent action on semiconductor tariffs. On Sunday, he indicated he would announce semiconductor import tariff rates in a week, though he suggested there might be “flexibility with some companies in the sector.”

    The latest support package is the second announced by South Korea in recent days. Last week, the government unveiled emergency measures for its automotive sector, which has also been targeted by the Trump administration’s protectionist policies. Those measures included financial support, tax cuts, and subsidies to stimulate domestic demand. Industry observers view the parallel actions as part of a coordinated response to shield South Korea’s export-dependent economy from volatility.

    Balancing act: US relations and Chinese competition

    The expanded South Korea semiconductor investment package will address two issues: managing relationships with the US, and responding to intensifying competition from Chinese rivals.

    South Korean chipmakers face a complex environment where they must maintain access to the US market and preserve their significant business with China, which remains still the country’s largest export destination. The balancing act has grown more difficult as US-China tech tensions have escalated. The government’s statement acknowledged the two pressures, noting that the measures come “in response to calls on the government to expand support at a time of growing policy uncertainty under the current US administration and rising competition from Chinese rivals.”

    Industry context

    The country’s semiconductor companies Samsung Electronics and SK Hynix lead the global memory chip market. However, pressure from US tariffs will impact exports, there’s the threat of aggressive Chinese investments in its domestic semiconductor infrastructure, and competition from Taiwan and the US comes in the form of chip manufacturing.

    The additional South Korean semiconductor investment provides some financial reassurance to the industry, but the challenges extend beyond funding to include broader geopolitical and trade issues that financial measures alone cannot address fully. The Korea Semiconductor Industry Association has spoken in the past about the strategic importance of the semiconductor sector to the national economy and the challenges it faces currently.

    Looking ahead

    As Seoul ramps up its semiconductor support, diplomatic engagement will be equally important to financial backing. South Korean officials have indicated they will seek negotiations with the US to mitigate potential tariff impacts, similar to their approach with regards to the issues Korea faces in the automotive sector. The effectiveness of a dual strategy – increased domestic support coupled with international diplomacy – will help determine whether South Korea can preserve its position as a global semiconductor powerhouse. What remains clear is that South Korea views its semiconductor industry as non-negotiable for the nation’s economic future. It will to deploy significant resources to safeguard the sector regardless of international pressure.

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    US panic-buying as Trump’s tech tariffs hit 100%+ https://techwireasia.com/2025/04/us-panic-buying-as-trumps-tech-tariffs-hit-100/ Tue, 08 Apr 2025 10:32:16 +0000 https://techwireasia.com/?p=241680 Trump’s tech tariff threats reach unprecedented levels. Potential 100%+ duties on China, placing digital supply chain at risk. Asian electronics manufacturers and US tech giants face market disruption. “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 […]

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  • Trump’s tech tariff threats reach unprecedented levels.
  • Potential 100%+ duties on China, placing digital supply chain at risk.
  • Asian electronics manufacturers and US tech giants face market disruption.
  • “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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    Trump’s tariffs: A strategic gambit or economic self-harm? https://techwireasia.com/2025/04/trumps-tariffs-a-strategic-gambit-or-economic-self-harm/ Mon, 07 Apr 2025 13:24:36 +0000 https://techwireasia.com/?p=241670 Trump’s reciprocal tariffs rely on formula that ignores trade realities. Threatens Asian supply chains Region face tariffs as high as 60%, in “strategic containment via tariff warfare.” When President Donald Trump stepped to the podium last Wednesday brandishing colourful charts listing countries and their supposed trade barriers, the world watched with collective anxiety. “If you […]

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  • Trump’s reciprocal tariffs rely on formula that ignores trade realities.
  • Threatens Asian supply chains
  • Region face tariffs as high as 60%, in “strategic containment via tariff warfare.”
  • When President Donald Trump stepped to the podium last Wednesday brandishing colourful charts listing countries and their supposed trade barriers, the world watched with collective anxiety. “If you look at that… China, first row, 67%. That’s tariffs charged to the USA,” Trump declared, waving his visual aid.

    However, as markets tumbled and governments scrambled to respond, a striking revelation emerged: Trump’s reciprocal tariffs didn’t match actual foreign tariff rates. Instead, buried in documents published by the US Trade Representative’s office (USTR) was an entirely different calculation – a simple mathematical formula focused primarily on bilateral trade deficits.

    For all the rhetoric about fairness and reciprocity, the administration had quietly reduced complex global trade relationships to a single ratio: If a country sells more to America than it buys, it’s “cheating” and must be punished accordingly. The approach assumes persistent trade deficits automatically indicate unfair practices by trading partners, a view that has caused economists to object.

    The formula uses price elasticity of import demand, tariff pass-through rates, and a country’s export-import balance with the US, and ensures mathematically that any nation selling more to America than it buys faces punitive tariffs. It’s a simplistic solution to what trade experts recognise as a complex, multi-faceted issue.

    “This isn’t tit-for-tat – it’s strategic containment via tariff warfare,” noted Stephen Innes from SPI Asset Management, describing what he calls “a full-frontal assault on Beijing’s extended supply chain.”

    Asia in the cross-hairs: “Slamming the door shut”

    The consequences are particularly severe for Asia. China faces a 34% reciprocal tariff, compared to the 20% tariffs that Trump created. Meanwhile, Southeast Asian nations that benefited from supply chain relocation during Trump’s first term now face what Professor Pushan Dutt of INSEAD business school described as having their door “slammed shut,” with Vietnam facing 46% tariffs, Cambodia 49%, and Laos 48%, according to BBC reporting.

    The approach represents a stunning reversal in American economic policy. As Malaysian Prime Minister Anwar Ibrahim observed, “It is quite unusual, as the country that previously supported the spirit of free trade and established the World Trade Organisation and the General Agreement on Tariffs and Trade […] is now taking a different approach.”

    The USTR document outlines the administration’s underlying assumptions: “If trade deficits are persistent because of tariff and non-tariff policies and fundamentals, then the tariff rate consistent with offsetting these policies and fundamentals is reciprocal and fair.” Yet this position contradicts economic understanding that trade deficits reflect broader macroeconomic factors, including savings rates, investment flows, and economic structures.

    The White House claims the tariffs will force manufacturing back to American shores. “If you want your tariff rate to be zero,” Trump declared, “then you build your product right here in America.” However, economic forecasts suggest a different outcome. Fitch Ratings warns 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.

    Strategic responses: Retaliation or regional integration?

    For Asian economies, the impact could be devastating. The targeting of Cambodia, Vietnam, and Laos – among the region’s poorest countries – threatens to undermine their development models.

    Those nations are heavily dependent on exports and Chinese investment in supply chain infrastructure, and now face prohibitive barriers to their largest market. China’s Commerce Ministry immediately called the move “a typical act of unilateral bullying” and pledged “resolute countermeasures.” The country’s response signals a likely escalation rather than capitulation.

    As former US trade negotiator Stephen Olson told the BBC, “China and the Chinese will have to retaliate. They will not be able to sit back and watch this.”

    The strategy may also backfire by accelerating Asian economic integration. China, South Korea, and Japan recently held their first trilateral economic talks in five years, with new momentum to finalise a free trade agreement proposed over a decade ago. Meanwhile, Malaysian Prime Minister Anwar Ibrahim has called for ASEAN to present a unified stance with its combined market of 640 million people.

    Inevitably, American businesses operating in Asia will face significant uncertainty. Major companies like Apple, Intel, and Nike maintain substantial manufacturing operations in Vietnam, and a recent survey by the American Chamber of Commerce found that most US manufacturers expect to lay off staff if tariffs are imposed.

    While the US administration has framed the tariffs as a negotiating tactic that could be rolled back if countries eliminate their “unfair trade practices” or reduce their trade surpluses with the US, the actual mechanism for such adjustments remains unclear. Commerce Secretary Howard Lutnick’s comment that other countries must do some “deep soul-searching on how they treat us poorly” suggests little appetite for compromise.

    Trump’s drastic economic realignment demands an equally strong response from businesses and policymakers in Asia. Whether through regional integration, economic diversification, or direct negotiations, Asian economies must now navigate what Malaysian Prime Minister Anwar aptly called “post-normal times, when political and economic policies are implemented unexpectedly.”

    Will Trump’s reciprocal tariffs achieve their stated aim of re-balancing global trade, or will they fragment the global economy into competing blocs? With policy volatility becoming the new normal in international trade, businesses and governments across Asia must adapt to a reality where today’s tariff walls could be tomorrow’s negotiating chips. As markets reel and supply chains reconfigure, the coming months will determine whether this represents a temporary disruption or a fundamental realignment of global commerce.

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    Trade War 2.0: China strikes back at US with tech and metal sanctions https://techwireasia.com/2025/02/trade-war-2-0-china-strikes-back-at-us-with-tech-and-metal-sanctions/ Wed, 05 Feb 2025 17:15:56 +0000 https://techwireasia.com/?p=239792 US-China trade war intensifies as Beijing unveils targeted countermeasures worth $20 billion. Includes rare metal restrictions and Western tech company probes. Global markets brace for impact of new rounds of tariffs and economic sanctions. The latest escalation in the US-China trade war has sent shockwaves through global markets as Beijing unveiled a calculated series of […]

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  • US-China trade war intensifies as Beijing unveils targeted countermeasures worth $20 billion.
  • Includes rare metal restrictions and Western tech company probes.
  • Global markets brace for impact of new rounds of tariffs and economic sanctions.
  • 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.

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    Can Taiwan hold its chip crown after Trump’s return? https://techwireasia.com/2024/11/can-taiwan-hold-its-chip-crown-amid-trump-return/ Mon, 11 Nov 2024 14:40:23 +0000 https://techwireasia.com/?p=239338 Taiwan is urged to strengthen its technology and supply chain for global leadership. Trump hints at using tariffs to push chip manufacturing to the US. 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. […]

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  • Taiwan is urged to strengthen its technology and supply chain for global leadership.
  • Trump hints at using tariffs to push chip manufacturing to the US.
  • 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.

    A China-U.S. war over Taiwan could turn 23 million people into bargaining chips—cut off and isolated.
    A China-U.S. war over Taiwan could turn 23 million people into bargaining chips—cut off and isolated. (Source – X)

    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.

     

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    Why is Microsoft trading steel for wood in its latest data centres? https://techwireasia.com/2024/11/why-is-microsoft-trading-steel-for-wood-in-its-latest-data-centres/ Tue, 05 Nov 2024 23:29:07 +0000 https://techwireasia.com/?p=239309 The first wooden data centres by Microsoft aim to reduce carbon emissions by up to 65%. The company is overhauling supplier contracts to require carbon-free electricity use by 2030. In northern Virginia, Microsoft is undertaking an unconventional experiment: building data centres with wood. The company uses cross-laminated timber (CLT), a specialised engineered wood product, in […]

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  • The first wooden data centres by Microsoft aim to reduce carbon emissions by up to 65%.
  • The company is overhauling supplier contracts to require carbon-free electricity use by 2030.
  • In northern Virginia, Microsoft is undertaking an unconventional experiment: building data centres with wood. The company uses cross-laminated timber (CLT), a specialised engineered wood product, in a hybrid construction approach alongside steel and concrete. 

    The method is projected to reduce the facilities’ carbon footprint by 35% compared to standard steel construction and 65% to typical precast concrete structures. The initiative marks a step in Microsoft’s journey to become carbon-negative by 2030.

    CLT, typically made from spruce, pine, or Douglas fir, offers unique advantages over traditional materials. It’s created by glueing together three to nine layers of timber stacked in alternate directions and pressing them into solid panels. 

    Unlike steel, which can deform under high temperatures, CLT develops a protective char layer that maintains structural integrity longer. The sustainably harvested CLT will replace substantial portions of the thick concrete traditionally used for flooring and ceilings.

    Microsoft rewriting the rules of data centre construction

    Microsoft is fundamentally transforming its construction practices in the new requirements. The company is implementing strict low-carbon specifications for materials and equipment in data centre construction. With this shift, Microsoft will require selected high-volume suppliers to use 100% carbon-free electricity by 2030, creating a a positive impact in its supply chain.

    Jim Hanna, who leads sustainability for Microsoft’s data centre engineering team, acknowledges the complexity: “We have to be system thinkers across the entire value chain of these materials that go into our data centres and the equipment that supplies [them]. That’s what makes it hard but certainly not impossible.”

    Investing in tomorrow’s building materials

    Microsoft is backing companies developing sustainable construction technologies through its $1 billion Climate Innovation Fund, which has already committed $761 million. The fund targets innovations that can achieve mainstream adoption by 2030, including:

    • Stegra’s green steel plant in Sweden, designed to reduce carbon emissions by up to 95%,
    • Boston Metal’s oxygen-generating steel production process,
    • Electric Hydrogen’s renewable electricity-powered hydrogen production,
    • CarbonCure’s carbon-capturing concrete,
    • Prometheus Materials’ microalgae-based zero-carbon cement.

    The challenge is substantial—according to the World Economic Forum, steel manufacturing contributes approximately 7% of global carbon emissions, while cement production accounts for about 8%. 

    Brandon Middaugh, manager of the Climate Innovation Fund program, emphasises Microsoft’s unique approach: “What’s not so common [sic] is to see an investor like Microsoft come to the table and say I want to both provide you with capital and also sign a contract to buy the output.”

    The company’s scale positions it as a catalyst for market transformation. “Microsoft is in a unique position just because they’re so large,” Thomas Hooker from Thornton Tomasetti, the structural engineering firm working on Microsoft’s Virginia data centres, said. “They can almost be […] a market mover and to some extent push some of these technologies to more widespread use.”

    While Microsoft has achieved a 6.3% reduction in direct emissions over three years due to data centre growth, indirect emissions have increased by 30.9%. This challenge underscores the importance of innovative construction methods and materials. 

    Richard Hage, Microsoft’s global strategy lead for data centre engineering, points to industry-wide momentum: “A lot of our suppliers are on the same journey as we are… implementing key initiatives to lower the embodied carbon of their materials and their products.”

    While innovative, the shift to wooden data centres represents just one step in addressing the complex challenge of data centre sustainability. While Microsoft’s supply chain reforms and material investments show promise, the company’s 30.9% increase in indirect emissions highlights the tension between digital infrastructure growth and environmental goals. 

    The success of these initiatives will ultimately depend not just on the technical viability of new materials but on Microsoft’s ability to scale these solutions across its rapidly expanding data centre network. As the tech industry grapples with its environmental impact, Microsoft’s experiment with wooden data centres could provide valuable insights into sustainable infrastructure development’s practical challenges and opportunities.

    The post Why is Microsoft trading steel for wood in its latest data centres? appeared first on TechWire Asia.

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    China’s counter-strike: EV makers told to cool EU expansion after tariff clash https://techwireasia.com/2024/10/chinas-counter-strike-ev-makers-told-to-cool-eu-expansion-after-tariff-clash/ Tue, 29 Oct 2024 15:05:21 +0000 https://techwireasia.com/?p=239263 China urges domestic automakers to pause EU expansion amid trade tensions. The move comes in response to the EU’s proposed 45% tariff on Chinese electric vehicles. Beijing has reportedly asked its domestic automakers to temporarily halt their expansion plans in the European Union (EU) market, marking an escalation of trade tensions between China and the […]

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  • China urges domestic automakers to pause EU expansion amid trade tensions.
  • The move comes in response to the EU’s proposed 45% tariff on Chinese electric vehicles.
  • Beijing has reportedly asked its domestic automakers to temporarily halt their expansion plans in the European Union (EU) market, marking an escalation of trade tensions between China and the EU. This informal directive directly responds to the EU’s recent vote to impose substantial tariffs on Chinese electric vehicles, highlighting the growing complexity of global automotive trade relations.

    China’s move was triggered by the EU’s decision earlier this month to potentially raise tariffs on Chinese-made electric vehicles to 45%, marking a turning point in the relationship between the two. European officials argue that Chinese manufacturers benefit from unfair state subsidies, which create an uneven playing field that threatens the EU’s domestic automotive industry.

    The proposed tariff increase represents a substantial jump from current levels and signals the EU’s determination to protect its automotive sector. China has vehemently denied subsidy allegations, viewing the EU’s actions as protectionism. In response, Beijing has threatened retaliatory tariffs on various European exports, including dairy products, brandy, pork, and automobiles.

    This tit-for-tat approach risks deepening the rift between two of the world’s largest trading partners. The move to ask Chinese automakers to halt their EU expansion plans, while not a mandatory order, demonstrates the Chinese government’s willingness to use its significant influence over domestic manufacturers as leverage in international trade disputes.

    Sources familiar with the matter indicated to Bloomberg that Chinese authorities are advocating for a more cautious approach to European expansion, potentially reshaping the global electric vehicle market’s competitive landscape. Unfortunately, the tension comes at a crucial time for both markets.

    Chinese automakers, including BYD, Great Wall Motor, and NIO, have expanded their presence in Europe rapidly, offering competitively-priced electric vehicles that have gained significant market share. The informal directive to pause expansion could significantly impact manufacturer’s growth strategies and market penetration plans.

    For European automakers, the situation presents both opportunities and challenges. While reduced competition from Chinese manufacturers might provide breathing room for domestic producers, it could also slow the adoption of electric vehicles in the EU market, where Chinese brands have been instrumental in making battery-run vehicles more accessible to mainstream consumers.

    The trade dispute also raises broader questions about the future of global automotive supply chains and industrial policy. As countries worldwide transition to electric vehicles, the competition for market dominance has intensified, with governments increasingly viewing the automotive sector as strategically crucial for economic development and technological leadership.

    Industry analysts suggest that the development could lead to a more fragmented global automotive market, with regional blocs developing distinct supply chains and technical standards. This potential “decoupling” could increase consumer costs and slow the global transition to electric vehicles.

    The directive has yet to be made official and the situation remains fluid, with both sides leaving room for negotiation. The informal nature of China’s directive suggests that Beijing may be using it as a bargaining chip rather than a permanent policy shift. Similarly, the EU’s tariff proposal must go through various approval stages before implementation.

    As this trade dispute unfolds, the global automotive industry watches closely, aware that the outcome could reshape the competitive landscape of EV manufacturing and sales for years to come. The resolution of the conflict will likely have far-reaching implications for international trade relations, environmental policies, and the future of sustainable transportation.

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    How big data and AI are transforming India’s business landscape https://techwireasia.com/2024/10/big-data-india-and-its-potential-for-growth-in-multiple-sectors/ Wed, 02 Oct 2024 07:44:14 +0000 https://techwireasia.com/?p=239110 Is the buzz phrase of yesteryear, ‘big data’ making a resurgence, or has the concept simply been underappreciated all along? The rise of AI systems has underscored the vital role data plays in modern businesses, pushing many organisations to finally capitalise on the data they generate daily. Data has always been important, but with AI’s […]

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    Is the buzz phrase of yesteryear, ‘big data’ making a resurgence, or has the concept simply been underappreciated all along?

    The rise of AI systems has underscored the vital role data plays in modern businesses, pushing many organisations to finally capitalise on the data they generate daily. Data has always been important, but with AI’s rising significance, businesses are taking a more strategic approach to managing it – particularly in regions such as India.

    The push for AI and big data infrastructure in India

    India has positioned itself as a contender to become a global leader in artificial intelligence, with major technology companies such as Microsoft and Amazon committing billions to building computing infrastructure in the country. This investment race sees companies seeking dominance of the fast-growing AI industry. The Indian government has also offered incentives to tech companies to set up operations from electronics manufacturing to data storage, with the hope that a thriving domestic market and a competent workforce could elevate the country to the top ranks of AI technology consumers and exporters.

    Microsoft, for example, has pledged approximately US$3.7 billion to southern state Telangana. Local officials report that the tech giant has acquired land for data centres which will contributing an additional 660 megawatts of IT capacity – enough electricity to power roughly half a million European homes annually. Meanwhile, Amazon plans to spend US$12.7 billion on cloud infrastructure in India by 2030. The country is emerging as one of the world’s most interesting tech markets.

    Interestingly, data itself is no longer regarded as “big” in the conventional sense. Although data volumes have grown, hardware capabilities have advanced even faster. The emphasis has shifted from managing data volume to using it to improve decision-making.

    As more companies integrate AI into their operations, data becomes increasingly important for measuring product effectiveness and gaining insights into internal processes. In recent years, India’s big data and AI ecosystem has expanded rapidly, attracting both large and small companies. The country is expected to become one of the world’s leading markets for big data analytics, offering numerous opportunities for data scientists.

    According to Mordor Intelligence, India’s big data technology and services market is projected to reach US$2.17 billion by 2024 and grow to US$3.38 billion by 2029; a compound annual growth rate (CAGR) of 7.66%.

    Unlocking potential for SMEs

    Big data presents a significant opportunity for small and medium-sized enterprises (SMEs) in India to increase efficiency and drive growth. However, this potential is accompanied by challenges that require strategic planning.

    SMEs are well-positioned to act as innovation leaders in the supply chain. Their agility allows them to adopt technologies like big data to identify market gaps and streamline their operations, opening the way to rapid growth. Their adaptability and growth will likely strengthens supply chain relationships and promote mutual growth in their vertical.

    To fully leverage big data, SMEs should invest in IT infrastructure and improve data systems as first steps to boosting production and stakeholder trust. Advanced data analytics will assist businesses in gaining crucial insights, allowing them make decisions based on empirical data. Alongside the take-up of refreshed approaches to big data and AI, there is an important requirement for clear data governance policies (and adherence to the same) that address security and privacy.

    Despite these benefits, SMEs face challenges from lack of comprehensive data policies and tools for extracting meaningful information. Fragmented IT systems create data silos, making it difficult to form the basis for effective decisions. Addressing these difficulties can assist SMEs in unlocking the full potential of big data and achieving long-term growth.

    The role of big data across key industries in India

    The talent gap in business processes means companies can and should adopt analytics, a facility gaining momentum in industries such as BFSI (Banking, Financial Services, and Insurance), Retail, and Telecom. In Industry 4.0, data analytics is becoming an essential skill for sustainable manufacturing, alongside AI, machine learning, IoT, and automation.

    For example, many retailers are dealing with erratic sales and need more resources to identify core problems or effectively forecast sales. Organisations generally lack the resources to establish an in-house data analytics team, so they turn to external analytics providers for answers.

    Big data has the capability to transform the in-store retail experience. By analysing customer movement data, retailers can optimise store layouts, improve product placements, and create a more enjoyable shopping environment. Globally, apparel retailers have been leveraging these insights to refine their in-store experiences, and the results speak for themselves.

    Revolutionising Indian agriculture with big data

    Big data in agriculture is changing the way Indian farmers make decisions. Farmers can now make decisions based on data from ground-based sensors, satellites, weather forecasts, and machines, rather than guesswork. Big data enables them to manage real-time irrigation requirements, monitor soil health, estimate crop yields, and detect early plant disease signs. This transition to ‘smart farming’ is important in India, where optimal resource utilisation may considerably increase productivity and efficiency while lowering waste and environmental impact.

    Ultimately, big data is improving agricultural output in India while paving the way for a more sustainable future.

    India’s big data technology and services market remains highly competitive and fragmented, yet the country’s robust IT services sector means relatively easy adoption of the latest in technology. In addition to established industry giants, numerous startups and mid-sized businesses are increasingly meeting the growing demand for big data solutions in multiple industries.

    Conclusion

    As India works to position itself as a global leader in AI and big data, the opportunities are vast. The ability to use data is critical for driving innovation, growth, and sustainability, whether in large tech companies or small and medium-sized enterprises. Big data and its use are redefining how businesses operate and make choices, from supply chain transformation to agricultural revolution. The future appears bright for enterprises of any size that are ready to embrace the ‘big data’ resurgence.

    The post How big data and AI are transforming India’s business landscape appeared first on TechWire Asia.

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    Japan rekindles with 2nm chip fabrication plant https://techwireasia.com/2024/09/semiconductor-chip-fabrication-spearheads-japan-economic-reviwal/ Wed, 18 Sep 2024 15:58:59 +0000 https://techwireasia.com/?p=239048 Semiconductor chip fabrication in Northern Japan. A new hands-on government approach boosts tech funding. IBM partners with local startup, backed by Sony & Toyota. The Northernmost island in the Japanese archipelago, Hokkaido, is perhaps best known for its hot springs, cold winters, spider crab delicacies, and ski-ing. But close to Chitose airport near Sapporo, the […]

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  • Semiconductor chip fabrication in Northern Japan.
  • A new hands-on government approach boosts tech funding.
  • IBM partners with local startup, backed by Sony & Toyota.
  • The Northernmost island in the Japanese archipelago, Hokkaido, is perhaps best known for its hot springs, cold winters, spider crab delicacies, and ski-ing. But close to Chitose airport near Sapporo, the island’s capital, a new construction site represents what many think epitomises a revitalisation of the Japanese economy.

    The Rapidus Corporation is a Japanese startup that is building a new semiconductor fabrication facility in partnership with IBM. The plant will make wafers based on Big Blue’s 2nm designs which were developed in the US.

    The timing of the Rapidus project means that the plant should be coming on line when international trade is being negatively affected by poor US-China relations and supply chain issues caused by the continuing conflicts in the Ukraine and Palestine. Prime time to sell much needed chips, therefore.

    The supply-chain shortages stemming from the COVID epidemic sharpened focus for policy-makers all over the world, highlighting just how reliant multiple industries are on microprocessors.

    Like many countries, Japan is desperate not to have a repeat of the situation when in 2021, large swathes of industry were at an effective standstill due to supply chain issues outside its control.

    Japan economically re-imagined

    From its heady days in the 1980s when Japan produced around half the world’s silicon wafers, the country’s market share in semiconductor chip fabrication has dropped to just 10%, a victim of a larger national economic decline and the emergence of China and Taiwan as the powerhouses of chip design and manufacture.

    But Japan is not trying to recapture the glory days of its technological past by repeating the same type of economic protectionism that was the hallmark of its Asian Tiger phenomenon. Instead, its policy makers have taken the example set by US, Taiwanese, and European chip makers in forming international conglomerates that jointly design, build and distribute silicon microprocessors.

    Since 2021, the Japanese trade ministry has embarked on a more hands-on approach [PDF] to boosting specific sectors of the economy, eschewing the libertarian, market-first economics that many have blamed for the country’s stagnation over the last 30 years.

    The government’s policies include huge subsidies in areas of industry it wishes to promote, so medical suppliers, semiconductor chip fabrication and technology companies, and renewable energy hardware manufacturers are being offered attractive packages to locate either in Japan or in countries nearby.

    The trade ministry says its commitments to revitalisation measures in these sectors will be “large-scale, long-term [and] well-planned.”
    Tokyo is using carefully formulated regulatory policies to promote what it terms ‘mission-oriented projects’ such as promoting green technology, renewable energy and high-tech production facilities like that going up on Hokkaido island.

    Semiconductor chip fabrication in Hokkaido

    As Japan’s northernmost main island, Hokkaido’s abundant fresh water supplies and a mature renewable energy infrastructure make it a good fit for manufacturing technology that will help create a greener technological future.

    It’s also the home to several world-class universities, which it’s hoped, will supply the next generation of researchers and engineers needed for Japan to return to its lost, technological powerhouse status.

    The IBM 2nm chip design will, according to IBM, increase battery capacities, lower the power requirements for computers (especially important for power data centres and burgeoning demand for AI) and help improve technologies around real-time processing, such as image recognition and autonomous transport.

    The Hokkaido plant is expected to employ around 1,000 people by 2027, and is backed by major Japanese companies like Toyota and Sony. Investment from the private sector is bolstered by significant government contributions. The Japanese authorities have pledged around $27bn in investment in technology development and research over the next three years.

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    “TSMC liebt Saxony” for global semicon production https://techwireasia.com/2024/09/eu-chip-manufacturers-tsmc-taiwan-lower-saxony-dresden-germany/ Mon, 16 Sep 2024 13:57:09 +0000 https://techwireasia.com/?p=239040 (TSMC loves Saxony)

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  • Asia’s chip manufacturers find Germany a fertile ground.
  • Local government and EU Chip Act aid global presence.
  • TSMC entrenches in Saxony.
  • Germany is known across the world as a centre of engineering and manufacturing excellence. From heavy industry to car manufacture, its reputation is for resilient, high-quality products that are the standard against which many brands measure themselves.

    Since the semiconductor supply chain crisis of the post-COVID period, investment in high-tech silicon foundries has grown, especially in the Saxony region, known locally as “Silicon Saxony

    Chip manufacturers beat supply chain shortage threat

    The worldwide chip shortage, created by high demand for new hardware and exacerbated by US-China relations, was a wake-up call to governments around the world who felt themselves as hostages to the dominance of the Far East in the silicon fabrication sector. Without domestic chip manufacturers, foundries and, therefore, some guarantee of continued availability of microprocessors, industries of all types could easily find themselves in the same situation as that which transpired between 2020-2023. Several high-profile cases dominated the news headlines in the aftermath of the COVID pandemic when for example, cars could not leave German manufacturing plants for want of a few slivers of silicon for their in-vehicle entertainment and engine management systems.

    Germany’s Saxony region, already home to over 3650 high-tech companies that employ over 75,000 workers (expected to rise to 100,000 by 2030), has deepened its ties with Taiwan’s TSMC and welcomed a 50bn Euro in industry investments. Frank Bösenberg, Managing Director of local trade organisation Silicon Saxony, said, “What sets us apart is not just semiconductor production but our ability to combine hardware, software, and connectivity technologies. We’ve cultivated a complete value chain, from R&D to production, supported by top-tier universities and a semiconductor-savvy regulatory environment.”

    Image of Silicon Saxony for article on chip manufacturers in Germany.
    Source: Silicon Saxony

    Chip manufacturer TSMC builds education ties

    Ground was broken last month in Dresden, Saxony’s regional capital, on a new fabrication facility being built by the European Semiconductor Manufacturing Company (ESMC), a joint venture between TSMC, Bosch, Infineon and NXP, with additional investment in the form of subsidies by the German government. The plant, owned by TSMC, will come into production in 2027 and provide around 6,000 jobs.

    Despite Germany’s advanced abilities in high-tech engineering that are largely unrivalled in Europe, TSMC still struggles to source suitably skilled employees. A range of cooperative projects between the private sector and international universities hopes to supply the demand for future generations in the form of traineeships and internships.

    In addition to semiconductors, the Saxony region also boasts companies and startups in developing technologies such as organic computing and battery technology, the latter feeding into the area’s other specialisation, of EV production. But it’s in semiconductors that the realities of global competition will become most apparent. Questions about Germany’s highly unionised workforce competing with Asian work practices mean that companies like TSMC have to embrace local work cultures to expand into a truly global supplier, one that’s less at the mercy of supply chain problems.

    That’s an aim in line with the EU’s Chips Act which came into force in 2023, comprising measures to increase the bloc’s share of the global semiconductor production market to 20% by 2030, from its current 10% slice at present. If achieving that goal is only possible by encouraging APAC businesses to locate in Saxony, then companies like Taiwan’s TSMC will find conditions constructed to be favourable.

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