Business Intelligence - Tech Wire Asia https://techwireasia.com/tag/business-intelligence/ Where technology and business intersect Wed, 06 Mar 2024 00:47:15 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.4 Competition heats up for OpenAI as rivals raise the bar https://techwireasia.com/03/2024/competition-heats-up-for-openai-as-rivals-raise-the-bar/ Wed, 06 Mar 2024 01:00:27 +0000 https://techwireasia.com/?p=238341 OpenAI continues to face challenges from rivals.  Anthropic is looking to challenge ChatGPT.  Chinese tech companies are also hoping to give a good run to OpenAI.  Ever since OpenAI launched ChatGPT, rivals have been eager to compete. While many have achieved significant milestones in their development, ChatGPT still dominates the market, with most organizations opting... Read more »

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  • OpenAI continues to face challenges from rivals. 
  • Anthropic is looking to challenge ChatGPT. 
  • Chinese tech companies are also hoping to give a good run to OpenAI. 
  • Ever since OpenAI launched ChatGPT, rivals have been eager to compete. While many have achieved significant milestones in their development, ChatGPT still dominates the market, with most organizations opting for the enterprise versions that cater to their business needs.

    Despite this, rival AI chatbot developers around the world, have continued to innovate their products, offering more features that match – or sometimes perform better than – ChatGPT.

    One of OpenAI’s biggest rivals is Anthropic. Founded in 2021 and now a major player in AI, Anthropic is backed by both Amazon and Google. Valued at around US$18 billion, the AI company is hoping to secure more funding as it looks to be a major challenger to OpenAI.

    The company recently announced that its three new AI models – called Claude 3 Opus, Sonnet and Haiku – were its most high-performing tools yet and were industry-leading in terms of their ability to “match human intelligence.”

    “Opus, our most intelligent model, outperforms its peers on most of the common evaluation benchmarks for AI systems, including undergraduate level expert knowledge (MMLU), graduate-level expert reasoning (GPQA), basic mathematics (GSM8K), and more. It exhibits near-human levels of comprehension and fluency on complex tasks, leading the frontier of general intelligence,” Anthropic announced in a statement.

    The company also said that all Claude 3 models show increased capabilities in analysis and forecasting, nuanced content creation, code generation, and conversing in non-English languages like Spanish, Japanese, and French.

    The image below shows the performance of Claude 3 when compared with OpenAI and Google Gemini.

    OpenAI rivals.

    A comparison of the Claude 3 models to those of peers on multiple benchmarks. (Source – Anthropic).

    “Businesses of all sizes rely on our models to serve their customers, making it imperative for our model outputs to maintain high accuracy at scale. To assess this, we use a large set of complex, factual questions that target known weaknesses in current models.

    “We categorize the responses into correct answers, incorrect answers (or hallucinations), and admissions of uncertainty, where the model says it doesn’t know the answer instead of providing incorrect information. Compared to Claude 2.1, Opus demonstrates a twofold improvement in accuracy (or correct answers) on these challenging open-ended questions while also exhibiting reduced levels of incorrect answers,” explained Anthropic.

    On concerns about the model’s accuracy and privacy, Anthropic pointed out that it has several dedicated teams that track and mitigate a broad spectrum of risks, ranging from misinformation and CSAM to biological misuse, election interference, and autonomous replication skills.

    “We continue to develop methods such as Constitutional AI that improve the safety and transparency of our models and have tuned our models to mitigate against privacy issues that could be raised by new modalities. Addressing biases in increasingly sophisticated models is an ongoing effort and we’ve made strides with this new release. We remain committed to advancing techniques that reduce biases and promote greater neutrality in our models, ensuring they are not skewed towards any particular partisan stance,” the company said.

    On concerns about the model’s accuracy and privacy, Anthropic pointed out that it has several dedicated teams that track and mitigate a broad spectrum of risks,


    On concerns about the model’s accuracy and privacy, Anthropic pointed out that it has several dedicated teams that track and mitigate a broad spectrum of risks.

    OpenAI: rivals range from ChatGPT to Sora

    Another OpenAI product that could soon face challengers is Sora. The text-to-video generator was released recently and has proven to be a hit, given its capabilities to generate videos based on prompts. While most text-to-video generators normally generate content based on a library of footage they have access to, SoraAI actually creates new content based on the prompt.

    Given the potential of this tool, there are concerns about how it would impact the livelihoods of graphic artists and designers. However, that may not be the only problem as rivals are now also looking to develop their own version of this concept.

    According to a report by SCMP, a team of researchers is making a fresh push to develop China’s answer to Sora. Professors from China’s Peking University and Shenzhen-based AI company Rabbitpre jointly launched an Open-Sora plan with a page on GitHub, with a mission to “reproduce OpenAI’s video generation model”.

    The Open-Sora plan aims to reproduce a “simple and scalable ” version of OpenAI’s video generation model with help from the open source community. OpenAI started a global AI frenzy in late 2023 with the launch of its ChatGPT generative chatbot.

    Several other Chinese tech companies have also been developing their own versions of text-to-video AI generators. In January 2024, Tencent AI in January released an open source video generation and editing toolbox called VideoCrafter2, which is capable of generating videos from text.

    Apart from Tencent, TikTok owner ByteDance also released the MagicVideo-V2 text-to-video model. According to the project’s GitHub page, it combines a “text-to-image model, video motion generator, reference image embedding module and frame interpolation module into an end-to-end video generation pipeline.”

    Among the roster of OpenAI rivals, Alibaba is also getting in on the action. The tech giant’s Damo Vision Intelligence Lab released ModelScope, also a text-to-video generation model. The model however currently only supports English input and video output is limited to two seconds.

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    AWS strikes AI collaboration deals with Malaysian telcos at MWC 2024 https://techwireasia.com/03/2024/mwc-2024-aws-collaborates-with-malaysian-telcos/ Fri, 01 Mar 2024 01:30:18 +0000 https://techwireasia.com/?p=238279 At MWC 2024, Maxis partnered with AWS to boost AI and 5G innovation for Malaysian enterprises, reshaping the digital landscape. AWS is also teaming up with CelcomDigi to pioneer Generative AI solutions, including creating an AI Sandbox and integrating AI across operations for enhanced user experience. Both Maxis and CelcomDigi plan to develop and implement... Read more »

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  • At MWC 2024, Maxis partnered with AWS to boost AI and 5G innovation for Malaysian enterprises, reshaping the digital landscape.
  • AWS is also teaming up with CelcomDigi to pioneer Generative AI solutions, including creating an AI Sandbox and integrating AI across operations for enhanced user experience.
  • Both Maxis and CelcomDigi plan to develop and implement the official language of Malaysia, Bahasa Melayu language algorithms with AWS. 
  • In a move set to redefine Malaysia’s digital landscape, Amazon Web Services (AWS) has forged strategic partnerships with two of the country’s leading telecommunications giants, Maxis and CelcomDigi, at the Mobile World Congress 2024 (MWC 2024) in Barcelona. The announcements mark a significant step forward in Malaysia’s local technological innovation, as the collaboration promises to unleash the potential of generative AI and 5G connectivity like never before.

    By integrating generative AI into its suite of cloud services, AWS has been empowering businesses to extract valuable insights from data, enhance customer interactions, and drive innovation at scale. But perhaps most exciting of all is the potential for generative AI to democratize creativity and innovation. By providing businesses access to powerful AI tools and resources, AWS is leveling the playing field and enabling organizations of all sizes to compete globally.

    AWS & CelcomDigi at MWC 2024

    By harnessing the power of AWS’s cloud capabilities, CelcomDigi aims to co-create innovative generative AI solutions tailored to the telecommunications industry. CelcomDigi will be tapping into Amazon Bedrock’s cutting-edge technology to revolutionize its operations. This fully managed service provides access to top-tier AI models and ensures security, privacy, and responsible AI practices. 

    Through its Innovation Centre, CelcomDigi is establishing an AI Sandbox, offering its employees a playground to explore and implement generative AI solutions. This initiative isn’t just about experimentation but driving innovation across various departments, including HR, customer service, legal, and finance. 

    AWS and CelcomDigi sign Letter of Collaboration at MWC 2024 in Barcelona, Spain.

    AWS and CelcomDigi sign Letter of Collaboration at MWC 2024 in Barcelona, Spain.

    With the combined expertise of CelcomDigi’s IT engineers and AWS AI specialists, the company is poised to unlock the full potential of generative AI and integrate it seamlessly into its operational platforms. CelcomDigi and AWS are also teaming up to provide AI training for CelcomDigi staff. 

    “CelcomDigi is already integrating its knowledge-based AI chatbot with Amazon Bedrock, crafting a comprehensive platform for accessing organizational and HR data. This innovative approach streamlines workflows enhances employee experiences, and fosters a culture of continuous learning and development,” AWS said following the signing of a Letter of Collaboration at MWC 2024.

    CelcomDigi is also teaming up with Amazon’s Bedrock, diving into linguistic diversity, to develop Bahasa Melayu language algorithms. Using Amazon Titan and Anthropic Claude models equipped with cutting-edge deep learning algorithms, CelcomDigi aims to create innovative solutions such as chatbots tailored to its culturally diverse customer base. 

    But the collaboration continues beyond there. CelcomDigi and AWS are trying to revolutionize the Malaysian business landscape with personalized generative AI applications spanning various industries and consumer experiences.

    “CelcomDigi’s collaboration with AWS is a great example of how telcos can enhance end-to-end operational efficiency and redefine the user experience for both employees and customers with the power of generative AI technology,” Pete Murray, Country Manager, Malaysia at AWS, said in a press release. Murray reckons with AWS, CelcomDigi can drive new use cases at scale with AI-optimized infrastructure and the flexibility to choose fit-for-purpose foundational models through Amazon Bedrock. 

    “This collaboration also accelerates the delivery of innovative AI services to Malaysian enterprises. We are excited to support CelcomDigi in advancing its 5G and AI transformation with our upcoming AWS Region in Malaysia and our joint commitment to develop AI talent in the country,” he added. 

    AWS and Maxis at MWC 2024

    In 2019 when Maxis joins Amazon Partner Network (APN) to deliver cloud solutions to businesses in Malaysia. Maxis currently has the largest pool of AWS-trained employees in Malaysia.

    In 2019 when Maxis joins Amazon Partner Network (APN) to deliver cloud solutions to businesses in Malaysia. Maxis currently has the largest pool of AWS-trained employees in Malaysia.

    As for Maxis and AWS, the two took the stage at MWC 2024 to share the announcement that they are joining forces to bring cutting-edge 5G and generative AI innovations to the forefront of business. Targeting critical sectors like retail, manufacturing, logistics, and financial services, this collaboration hopes to ignite innovation, helping Malaysian enterprises to thrive in the digital age.

    By integrating advanced AI technologies into real-world use cases, Maxis will offer tailored solutions designed to adapt and evolve alongside the ever-changing needs of businesses.

    Central to this collaboration is the integration of generative AI and language models tailored to support the Bahasa Melayu language. This strategic move accelerates the digital transformation journey for Malaysian businesses.

    The collaboration cements Maxis’ status in the realm of cloud services. As Malaysia’s first telco to achieve AWS Advanced Tier Services Partner status, Maxis is leading the charge in delivering unparalleled connectivity and cloud solutions to enterprises nationwide.

    “We are pleased to expand our collaboration with AWS to bring next-generation digital capabilities to Malaysian businesses. As Malaysia’s leading integrated telecommunications provider, we look forward to enabling our customers with the power of 5G and Generative AI,” Maxis CEO Goh Seow Eng said.

    Since forging their partnership in 2019, Maxis and AWS have been at the forefront of driving technological innovation in Malaysia. Through strategic collaborations and a shared vision for the future, Maxis continues to leverage the power of partnerships to meet the diverse digital needs of enterprises, ensuring they stay ahead in today’s fast-paced digital landscape. 

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    Teleport’s quest for next-day e-commerce delivery in Southeast Asia https://techwireasia.com/02/2024/the-race-for-24-hours-delivery-in-southeast-asia-with-teleport/ Thu, 22 Feb 2024 01:15:38 +0000 https://techwireasia.com/?p=238050 Tech Wire Asia interviewed the CEO of Teleport on the potential, hurdles, and possibilities of next-day delivery in Southeast Asia.  Pete Chareonwongsak dived deeper into the possibilities of regional logistics firms. In particular, he explained the potential of adapting to provide affordable 24-hour delivery services. In the bustling landscape of logistics in Southeast Asia, Teleport... Read more »

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  • Tech Wire Asia interviewed the CEO of Teleport on the potential, hurdles, and possibilities of next-day delivery in Southeast Asia. 
  • Pete Chareonwongsak dived deeper into the possibilities of regional logistics firms.
  • In particular, he explained the potential of adapting to provide affordable 24-hour delivery services.
  • In the bustling landscape of logistics in Southeast Asia, Teleport is a potential game-changer, striving as it is to achieve 24-hour or next-day delivery at a lower cost. As the logistical arm of Capital A Bhd, Teleport wants to challenge the status quo of the industry.

    But amid the region’s rapid economic expansion and escalating consumer demands, the critical question looms: can Teleport truly revolutionize the delivery landscape of Southeast Asia? 

    Teleport’s growth has been impressive. The company has rapidly expanded its presence across key markets in Southeast Asia, including Malaysia, Thailand, Indonesia, Philippines, India, Singapore, and China. This strategic expansion has allowed Teleport to tap into the region’s burgeoning e-commerce market, catering to the growing demand for seamless and efficient delivery services.

    In a recent interview with Tech Wire Asia, Pete Chareonwongsak, the CEO of Teleport, shared insights into how the company is employing innovation to tackle future challenges in Southeast Asia.

    How do you view the logistics industry in Southeast Asia amid rising demand for faster, cheaper deliveries?

    CEO Pete Chareonwongsak. Source: Teleport

    CEO Pete Chareonwongsak. Source: Teleport

    I think we do not have enough homegrown Southeast Asian logistics companies. When someone says Southeast Asia logistics, the names that typically come to mind are J&T and Ninja Van. The former initially started in Indonesia and is funded by the Chinese, so it’sexpanded to where 90% of its business now comes from China, not Southeast Asia. So it’s never really been born and bred here.

    The same is true with Ninja Van, which started in Singapore and expanded to all the Southeast Asian countries. That’s the closest, but it’s funded by global venture capital.

    That is why I’ve always felt we, Teleport, have an opportunity as we were born and raised here in Southeast Asia. Our DNA, infrastructure, and everything in between is here; we will not leave this part of the world. 

    So my understanding of Southeast Asia logistics is that many great companies come and go: their focus starts here but eventually moves elsewhere. Our mission has been to connect Southeast Asia better than anyone else, especially in performing next-day delivery.

    Has Teleport proven its viability in its current market, or does it still have much to prove to establish a more substantial presence?

    There’s a lot more. Based on statistics, we could reach about five million SMEs of a specific size in the region and give them access to our services. Everyone always talks about the SME opportunities in Southeast Asia, only to eventually realize that the money’s not there. But the opportunity is there. If you’re here long term, then at some point, you have to do something that allows collaborations to happen. 

    So, there are still opportunities in the long term. We currently serve at most 10,000 clients, but five million SMES are within the region. That means we have a long way to go in making it accessible.

    Why do logistics companies frequently expand beyond Southeast Asia? What do they look for elsewhere that they need help finding here, especially given the region’s abundance of SMEs and MSMEs?

    What is missing is the total addressable market. That’s why they go elsewhere because, undeniably, there are many larger markets that exist elsewhere today. So, at some point, when they’re funded a certain way or aim to grow a certain way, they need to go and find a large market to justify their reach and growth. That makes it hard for Southeast Asia-focused companies to stay here. There’s always something else, somewhere else. 

    We have an understanding of the region that some other companies lack, and our dedication and focus is here, today and tomorrow. So that’s what we see that they don’t see, perhaps making sense of their move to look elsewhere for markets. But if no one builds like we are doing, connecting Southeast Asia in a cheaper, faster, and better way, then SMEs will never have a real opportunity to grow. 

    Many of the Southeast Asian brands, e-commerce, and even supply chain operators never really have something that changes their capacity to grow. They have to flow with the market,  still to this day. So we’ve got to find some angle to serve them, and that’s really where Teleport’s focus is.

    Which is Teleport’s biggest addressable market at the moment?

    It is China into Southeast Asia. The region is the triangle between Kuala Lumpur, Singapore, and Bangkok. The cross-border opportunities between these three countries, in particular, are mature.

    Next-day delivery at a significantly reduced cost is a bold proposition. How is Teleport working towards this goal?

    If you look at the top three reasons why somebody would be willing to use Teleport, the first is price, the second is reliability, and the third is speed. You have to hit all three, and that is very hard. But that’s what we’re trying to do. How do we bring the actual cost down? Then, once we’ve brought the cost down, how do we make money? People need to understand what it costs us to enable next-day deliveries.

    Our view on life now is pretty simple: how do we get the cost down? And the way to do that is to not start the business model by buying a lot of stuff. So our first question was how do we build the business model we want without owning anything initially? The most important thing about next-day delivery is sending things between two borders. How do we do that in a next-day fashion? It’s got to go on a plane. 

    So, how do we put stuff on a plane? There are only two ways. One is you buy some aircraft, and FedEx, DHL, and UPS have bought hundreds of planes. So they’ve signed up for that visibility, and if we want to do that, we would have to compete against them over time with a better cost solution. 

    But what are other ways to put stuff on planes? Well, you and I fly everywhere, and every time a plane flies, a little bit of space is left over. That’s called the belly. How do we get access to that space across Southeast Asia? We need partnerships, and that’s where AirAsia came in. That’s how we built the business, off AirAsia’s belly. We wouldn’t be here without it, because it gave us the most extensive Southeast Asian network.

    With those spaces overnight, we then had to figure out how to build a business model on that space, which is very cost-effective. Because passengers have paid for the seats and baggage allowances, we need to figure out how to bolt that little bit of space onto the rest of the business model, which is end-to-end delivery. Essentially, that was how we built the business. So it becomes much easier when you don’t own the thing

    The second thing is figuring out how to partner so you can gain access to the asset you need. The third is then how you tie it all together and do it.

    Does Teleport have specific growth goals for its portfolio regarding the number of businesses?

    We set a 24-month goal. Around two million e-commerce parcels a day are coming into Southeast Asia, and we want to capture most of that. For perspective, two million a day would be on par with our esteemed competitors. The amount is undoubtedly huge on a global scale, but we are looking towards that direction.

    What role can technology play in facilitating the transformation of the logistics industry to meet the demands of faster and more affordable deliveries?

    My view on addressing that this year is to slow down the growth slightly, which is shocking to most people. But if we don’t build these foundations with the right technologies, we won’t reach the two-year goal of two million deliveries, for example. So this is the year where we figure out the value of Gen AI or any AI solutions to our operations.

    Source: Teleport

    Source: Teleport

    How many airplanes are in the fleet you use?

    Airasia has 204 passenger aircraft, which will all be fully re-activated by the end of the first quarter. Teleport owns three freighter planes in Malaysia. On top of that, we have 30 airline partners based in Asia and Southeast Asia.

    What changes do you anticipate in the competitive landscape if Teleport achieves its vision, and what adjustments might other logistics companies need to make in response?

    A couple of things. Firstly, in this region, there are a lot of low-cost carriers that would eventually think about how to continue to improve their business. Like how Teleport built the company off AirAsia’s back, many other low-cost carriers will do the same – spin off a logistic business from their airline operations.

    Even in China and Latin America, people have started to spin off their logistics business. So, the multimodal angle is going to be an essential trend.

    https://www.linkedin.com/posts/teleportasia_black-box-ceo-pete-on-awan-launch-part-activity-7093153593406484480-GV61?utm_source=share&utm_medium=member_desktop

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    Unveiling Volt Typhoon: the Chinese hackers within US critical infrastructure for five years https://techwireasia.com/02/2024/inside-volt-typhoon-chinese-hackers-five-year-infiltration-of-us-infrastructure/ Tue, 13 Feb 2024 00:30:38 +0000 https://techwireasia.com/?p=237787 Per US-led advisory, Volt Typhoon, a group of Chinese hackers, has been operating within critical industry networks for 5+ years. The advisory shows compromised environments span the continental US and Guam, involving allied agencies from Australia, Canada, the UK, and New Zealand. FBI Director Wray warns Congress that Chinese hackers are poised to strike US... Read more »

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  • Per US-led advisory, Volt Typhoon, a group of Chinese hackers, has been operating within critical industry networks for 5+ years.
  • The advisory shows compromised environments span the continental US and Guam, involving allied agencies from Australia, Canada, the UK, and New Zealand.
  • FBI Director Wray warns Congress that Chinese hackers are poised to strike US infrastructure and cause harm to citizens.
  • In the shadowy field of cyber-espionage, one name has emerged as a persistent thorn in the side of US critical infrastructure: Volt Typhoon. For at least five years, this enigmatic group of Chinese hackers has covertly infiltrated critical IT networks across America, sending shockwaves through the nation’s security apparatus. Believed to be backed by the Chinese government, it operates with stealth and precision, targeting a wide array of sectors vital to the nation’s infrastructure. 

    No sector is immune from its prying eyes, from communications and energy to transportation systems and water facilities. Who exactly are the members of Volt Typhoon, and what have they been doing in the heart of US critical infrastructure for half a decade? Let’s delve into the clandestine world of cyber-warfare and geopolitical maneuvering.

    What has the Volt Typhoon been doing?

    In a joint advisory published on Wednesday, the National Security Agency (NSA), Cybersecurity and Infrastructure Security Agency (CISA), and FBI revealed that the state-sponsored group of hackers from China had infiltrated networks spanning aviation, rail, mass transit, highway, maritime, pipeline, water, and sewage sectors. 

    This alarming development signals a strategic shift from their usual cyber-espionage tactics to a focus on pre-positioning for potential destructive cyberattacks in times of conflict or crisis. The advisory, jointly signed by cybersecurity agencies from the UK, Australia, Canada, and New Zealand, follows a similar caution issued by FBI Director Christopher Wray just a week earlier.

    Wednesday’s technical advisory revealed that Volt Typhoon has exploited vulnerabilities in routers, firewalls, and VPNs to infiltrate critical infrastructure nationwide. The Chinese hackers have adeptly utilized stolen administrator credentials to persist in these systems, some for “at least five years.” The advisory cautioned that this persistent access has empowered them to potentially disrupt vital systems, including HVAC systems and energy controls, leading to catastrophic infrastructure failures. Additionally, Volt Typhoon may have accessed surveillance systems at critical facilities, although this remains unconfirmed.

    Employing living-off-the-land techniques, the hackers discreetly operated using legitimate tools already in the target system, ensuring long-term persistence while evading detection. The hackers also conducted “extensive pre-compromise reconnaissance” to avoid detection. “For example, in some instances, Volt Typhoon actors may have abstained from using compromised credentials outside of normal working hours to avoid triggering security alerts on abnormal account activities,” the advisory said.

    What is the US doing about these Chinese hackers?

    FBI Director Christopher Wray testifies before the House (Select) Strategic Competition Between the United States and the Chinese Communist Party Committee on Capitol Hill on January 31, 2024 in Washington, DC.

    FBI Director Christopher Wray testifies before the House (Select) Strategic Competition Between the United States and the Chinese Communist Party Committee on Capitol Hill on January 31, 2024 in Washington, DC. Kevin Dietsch/Getty Images/AFP (Photo by Kevin Dietsch/GETTY IMAGES NORTH AMERICA/Getty Images via AFP).

    The revelation of the Volt Typhoon’s infiltration has sent shockwaves through Washington, prompting urgent calls to bolster cybersecurity defenses and reevaluating diplomatic relations with Beijing. Yet, despite heightened awareness and countermeasures, the group’s persistence underscores the formidable challenge posed by state-sponsored cyberthreats.

    Wray had emphasized to the House Select Committee the urgent need to address a pervasive cyberthreat from the Chinese Communist Party affecting every American. But that isn’t something new for Washington. In recent years, the US has escalated efforts to thwart criminal and state-sponsored cyber-activities. 

    This time, Wray cautioned that Beijing-backed hackers are targeting business secrets to bolster the Chinese economy and obtain personal data for foreign influence endeavors. “China’s hackers are positioning on American infrastructure in preparation to wreak havoc and cause real-world harm to American citizens and communities, if or when China decides the time has come to strike,” Wray added.

    Wray described to the US House of Representatives committee the ways in which Volt Typhoon was “the defining threat of our generation” and said the group aims to “disrupt our military’s ability to mobilize” in the early stages of an anticipated conflict over Taiwan, which China claims as its territory.

    Jen Easterly, Director of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, echoed that viewpoint. “This is a world where a major crisis halfway across the planet could well endanger the lives of Americans here at home through the disruption of our pipelines, the severing of our telecommunications, the pollution of our water facilities, the crippling of our transportation modes – all to ensure that they can incite societal panic and chaos and deter our ability [to marshal a sufficient response],” she said, according to The Guardian.

    As the US grapples with the implications of Volt Typhoon’s activities, questions linger about the broader impact on international cybersecurity and the delicate balance of power in the digital age. Will the revelation of Volt Typhoon’s exploits serve as a wake-up call for greater collaboration and vigilance in the fight against cyberthreats, or will it escalate tensions in an already fraught geopolitical landscape?

    One thing is clear: the saga of Volt Typhoon offers a sobering reminder of the ever-evolving nature of cyberwarfare and the need for constant vigilance in safeguarding critical infrastructure against emerging threats. As the battle for control of cyberspace intensifies, the stakes have never been higher, and the need for decisive action has never been more urgent.

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    Huawei’s TD Tech shake-up: Nokia sells majority stake https://techwireasia.com/01/2024/huawei-takes-over-td-tech-as-nokia-sells-its-stake/ Tue, 23 Jan 2024 00:55:59 +0000 https://techwireasia.com/?p=237362 The journey of TD Tech from a 2005 joint venture with Siemens, Huawei, and later Nokia has shifted focus. Nokia’s exit marks a new telecom era. Once challenged, Nokia’s 51% TD Tech stake sale resurfaced with Huawei and the state-owned consortium as new buyers. In the dynamic telecommunications landscape, TD Tech stands as a testament... Read more »

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  • The journey of TD Tech from a 2005 joint venture with Siemens, Huawei, and later Nokia has shifted focus.
  • Nokia’s exit marks a new telecom era.
  • Once challenged, Nokia’s 51% TD Tech stake sale resurfaced with Huawei and the state-owned consortium as new buyers.
  • In the dynamic telecommunications landscape, TD Tech stands as a testament to the intricate interplay of collaboration, evolution, and strategic partnerships. Established in 2005 as a joint venture between Siemens (51% stake) and Huawei (49% stake), TD Tech found its roots in the shared vision of pioneering wireless technology solutions. However, the landscape shifted in 2007 when Siemens sold half of its stake to Nokia, introducing a new player to the collaborative equation. 

    That marked a pivotal moment, steering TD Tech on a new trajectory under joint ownership. Siemens gradually divested its remaining shares in 2013, leaving Nokia as the major shareholder in TD Tech. This strategic move altered the company’s ownership structure and set the stage for further developments in its market presence and product offerings.

    A notable chapter in TD Tech’s narrative emerged in 2021 when the company diversified its portfolio by venturing into rebranded phones from Huawei. One such model, the M40 5G, utilized a 7-nanometer chip from Taiwan’s MediaTek instead of Huawei’s Kirin processors. Due to Washington’s sanctions, companies are prohibited from providing Huawei with advanced chips containing US-origin technology, including MediaTek processors, manufactured by Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker

    Nokia, in the thick of geopolitical challenges, clarified that TD Tech operates independently and is not linked to Nokia’s operations or supply chains in China. A year and a half later, in April 2023, Nokia revealed plans to leave TD Tech. The Finnish telecommunications equipment giant said its decision was driven by TD Tech’s expanded business scope, which now includes handsets, modems, and other devices. That broadened scope no longer aligns with Nokia’s strategic focus as a B2B technology innovation leader.

    “Nokia decided to divest its 51% stake in TD Tech for an estimated price of EUR 285 million (US$ 305.7 million), with an estimated gain of EUR 227 million (as of June 30; US$ 243.58 million), to New East New Materials, a company involved in raw materials manufacturing for the flexible packaging industry. However, the finalization of the deal was subject to conditions that included a pre-emption right (refusal of sale) of the joint venture partner, which is Huawei in this case,” Nokia said in September 2023.

    New buyers from China to partner with Huawei

    Over the weekend, reports surfaced that the Finnish telecom equipment giant had secured new buyers for its significant stake in a Beijing joint venture with Huawei. The deal, which faced protests from the Chinese company last year, is now back on track. Nokia’s attempt to sell its majority stake to Shanghai-listed ink maker New East New Materials in 2023 faced a hurdle when Huawei threatened to stop technology licensing to TD Tech. 

    The prospective deal eventually fell apart. Analysts speculated that Huawei was likely unwilling to relinquish control of TD Tech, seeing it as a strategic asset to navigate US sanctions and enhance efficiency in specific market segments, as noted by Yang during that period. 

    Now, according to a disclosure published on Friday by the State Administration for Market Regulation (SAMR), under the latest agreement, wireless technology firm TD Tech will be jointly controlled by Huawei and a group of entities that include the government-owned Chengdu High-Tech Investment Group and Chengdu Gaoxin Jicui Technology Co, as well as venture capital firm Huagai.

    The equity distribution among the new stakeholders remains undisclosed, pending final government approval. Regulators said they harbor no antitrust worries about the deal and are open to public input until January 28. According to the SAMR, Huawei and TD Tech jointly oversee less than 10% of China’s smartphone market, though the specific timeframe for this data was not provided.

    China’s market regulator has solicited public opinion on Huawei and Chengdu Hi-Tech Investment Group’s proposal for a complete acquisition of TD Tech.

     

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    Google is making a billion-dollar bet on its first data center in the UK https://techwireasia.com/01/2024/google-is-making-a-billion-dollar-bet-on-its-first-data-center-in-the-uk/ Mon, 22 Jan 2024 04:14:52 +0000 https://techwireasia.com/?p=237341 Google is investing US$1 billion in a new UK data center to meet rising service demand, supporting Prime Minister Rishi Sunak’s tech leadership ambitions. The data center will be Google’s first in the UK. Beyond being a global technological powerhouse, Google Cloud has become the steadfast ally of governments worldwide, ushering in an era of innovation.... Read more »

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  • Google is investing US$1 billion in a new UK data center to meet rising service demand, supporting Prime Minister Rishi Sunak’s tech leadership ambitions.
  • The data center will be Google’s first in the UK.
  • Beyond being a global technological powerhouse, Google Cloud has become the steadfast ally of governments worldwide, ushering in an era of innovation. Google’s commitment to transforming lives, modernizing public services, and revolutionizing operations within the UK has been a dynamic reality. As the sun sets on traditional computing landscapes, Google Cloud is rising, rapidly expanding its presence in the UK and reshaping the essence of cloud computing.

    One of the critical pillars of Google Cloud’s presence in the UK is its substantial investment in cutting-edge data infrastructure. Google recently announced a staggering US$1 billion investment in a new data center, a testament to its dedication to meeting the escalating demand for cloud services. This move signifies a boost for the UK’s technological infrastructure and aligns with the government’s aspirations to position the nation as a global leader in technology.

    “As more individuals embrace the opportunities of the digital economy and AI-driven technologies enhance productivity, creativity, health, and scientific advancements, investing in the necessary technical infrastructure becomes crucial. That’s why we’re investing $1 billion in a new UK data center in Waltham Cross, Hertfordshire—a 33-acre site creating jobs for the local community,” Debbie Weinstein, VP of Google and Managing Director of Google UK & Ireland, said in a statement last week.

    Illustration of Google's new UK data Centre in Waltham Cross, Hertfordshire. The 33-acre site will create construction and technical jobs for the local community. Source: Google

    Illustration of Google’s new UK data Centre in Waltham Cross, Hertfordshire. The 33-acre site will create construction and technical jobs for the local community. Source: Google

     

    In short, this investment will provide vital computing capacity, supporting AI innovation and ensuring dependable digital services for Google Cloud customers and users in the UK and beyond. As stated on its website, the upcoming data center in the UK marks the company’s first in the country. 

    Google already operates data centers in various European locations, including the Netherlands, Denmark, Finland, Belgium, and Ireland, where its European headquarters are also situated. The company boasts a workforce of over 7,000 people in Britain.

    Google Cloud’s impact extends far beyond physical infrastructure. The company’s robust suite of cloud services has become integral to businesses across various sectors in the UK. From startups to enterprises, organizations are leveraging Google Cloud’s scalable and flexible solutions to drive efficiency, enhance collaboration, and accelerate innovation

    The comprehensive nature of Google Cloud’s offerings, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS), ensures that it caters to the diverse needs of the UK’s business landscape.

    That said, the investment in Google’s Waltham Cross data center is part of the company’s ongoing commitment to the UK. It follows their significant assets, such as the US$1 billion acquisition of our Central Saint Giles office in 2022, the development in King’s Cross, and the launch of the Accessibility Discovery Centre, fostering accessible tech across the UK.

    “Looking beyond our office spaces, we’re connecting nations through projects like the Grace Hopper subsea cable, linking the UK with the United States and Spain,” Weinstein noted. However, investments by Google extend beyond infrastructure to empower communities and individuals across the UK. In fact, since 2015, Google has reached over 500 locations in the UK, providing free digital skills training to over one million individuals.

    “In 2021, we expanded the Google Digital Garage training program with a new AI-focused curriculum, ensuring more Brits can harness the opportunities presented by this transformative technology,” Weinstein concluded. 

    24/7 Carbon-free energy by 2030

    Google Cloud’s commitment to sustainability also aligns seamlessly with the UK’s environmental goals. The company has been at the forefront of implementing green practices in its data centers, emphasizing energy efficiency and carbon neutrality. “As a pioneer in computing infrastructure, Google’s data centers are some of the most efficient in the world. We’ve set out our ambitious goal to run all of our data centers and campuses on carbon-free energy (CFE), every hour of every day by 2030,” it said.

    This aligns with the UK’s ambitious targets to reduce carbon emissions, creating a synergy beyond technological innovation. In a dynamic move, Google forged a robust partnership with ENGIE for offshore wind energy from the Moray West wind farm in Scotland, adding 100 MW to the grid and propelling its UK operations towards 90% carbon-free energy by 2025. 

    Beyond that, the tech giant said it is delving into groundbreaking solutions, exploring the potential of harnessing data center heat for off-site recovery and benefiting local communities by sharing warmth with nearby homes and businesses.

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    AMD revolutionizes auto tech: unveiling next-gen AI engines at CES 2024 https://techwireasia.com/01/2024/proofed-amd-revolutionizes-auto-tech-unveiling-next-gen-ai-engines-at-ces-2024/ Fri, 12 Jan 2024 01:30:20 +0000 https://techwireasia.com/?p=237061 AMD has expanded its portfolio with two new devices: the Versal AI Edge XA Adaptive SoC and the Ryzen Embedded V2000A family of processors. Versal AI Edge XA chips with AI engines greatly benefit AI tasks, vision, and signal processing. The Ryzen Embedded V2000A series processor is tailored to enhance the digital cockpit in vehicles.... Read more »

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  • AMD has expanded its portfolio with two new devices: the Versal AI Edge XA Adaptive SoC and the Ryzen Embedded V2000A family of processors.
  • Versal AI Edge XA chips with AI engines greatly benefit AI tasks, vision, and signal processing.
  • The Ryzen Embedded V2000A series processor is tailored to enhance the digital cockpit in vehicles.
  • AMD has unveiled its latest processors to redefine the driving experience in a groundbreaking stride toward the future of automotive technology. AT CES 2024, the US chip giant took the stage to introduce the Versal AI Edge XA adaptive system-on-chip (SoC) and the Ryzen Embedded V2000A Series processor, expanding its prowess in the realm of automotive applications.  

    The devices, showcased at the annual trade show, are designed to serve critical automotive segments, including infotainment, advanced driver safety, and autonomous driving. The Versal AI Edge XA adaptive SoCs add an advanced AI engine, enhancing their adaptability for a wide range of next-generation advanced automotive systems and applications. These applications encompass forward cameras, in-cabin monitoring, LiDAR, 4D radar, surround-view, automated parking, and autonomous driving. 

    Notably, Versal AI Edge XA adaptive SoCs represent AMD’s inaugural 7nm device to achieve automotive qualification, introducing robust intellectual property and heightened security features to automotive applications where safety is paramount. Then there are the Ryzen Embedded V2000A Series processors fueling the evolution of the next-generation automotive digital cockpit. According to AMD, the processors drive performance across various elements, from the infotainment console to the digital cluster and passenger displays. 

    The extended presence of the AMD Ryzen Embedded V2000A Series marks the introduction of the initial x86 auto-qualified processor family. This advancement ensures that consumers can now experience the familiar PC-like interface they enjoy at home seamlessly integrated into their in-vehicle entertainment, providing an on-the-go entertainment experience.

    “Our expanding automotive portfolio presents a significant opportunity to serve this high-growth market while also underscoring the synergy of our combined automotive teams since the acquisition of Xilinx almost two years ago,” said Salil Raje, senior VP and GM, adaptive and embedded computing group, AMD.

    What can Versal AI Edge XA by AMD do for AI engines?

    Imagine Versal AI Edge XA adaptive SoCs as super-smart brains with particular engines for doing new things with AI. These ‘brains’ will handle AI tasks related to computer processing, vision, and signals. They’re good at understanding a lot of information quickly and can also work in different devices like car sensors, such as LiDARs, radars, and cameras. 

    A research director at ABI Research, James Hodgson, says, “In the future, automakers will use autonomous vehicle applications to shape their brand identities. With these applications relying heavily on AI, automakers need compute platforms that deliver powerful and efficient AI computing.”

    That said, the Versal AI Edge XA can make sense of data and make decisions either in a central control unit or in the devices themselves. The cool part is that these ‘brains,’ equipped with AI engines, can tackle various AI tasks, like recognizing objects and tracking features. Depending on the complexity of the task, the Versal AI Edge XA comes in different sizes, ranging from smaller ones with 20k LUTs to bigger ones with 521k LUTs. 

    They also vary in speed, from 5 TOPs to super-fast 171 TOPs. And here’s the magic trick – designers can use the same tools and methods to make smart gadgets using these brains. These “brains” aren’t just smart, they’re also safe and secure. They are designed to ensure everything runs smoothly and securely, especially in advanced automotive designs. The first batch of Versal AI Edge XA is set to hit the market in early 2024, with more versions planned to come out later in the year.

    Hodgson also believes that the number of highly automated vehicles shipping each year is set to grow at a CAGR of 41% between 2024 and 2030, signaling a healthy growth opportunity for suppliers of heterogeneous SoCs with powerful and efficient AI compute, including the AMD Versal AI Edge XA.”

    New Versal AI Edge XA adaptive SoCs and Ryzen Embedded V2000A Series processors underscore AMD leadership for powering next-generation automotive systems. Source: AMD.

    New Versal AI Edge XA adaptive SoCs and Ryzen Embedded V2000A Series processors underscore AMD leadership for powering next-generation automotive systems. Source: AMD.

    Upping the ante for consumers’ in-vehicle experiences with AMD Ryzen Embedded V2000A

    Picture your car as a futuristic entertainment hub on wheels, thanks to the AMD Ryzen Embedded V2000A Series processor. You know how gadgets keep getting cooler and more connected. That’s happening inside the vehicles these days, too. AMD came up with a super-advanced processor that delivers entertainment, connectivity, and safety all in one.

    This AMD Ryzen Embedded V2000A, built using the 7nm process and featuring ‘Zen 2’ cores and AMD Radeon Vega 7 graphics “delivers high-definition graphics, with enhanced security features and automotive software enablement through hypervisors in addition to support for automotive grade Linux and Android automotive,” AMD noted.

    The Embedded V2000A Series processor acts as the brain of a digital cockpit, promising the best visuals and connected experiences while cruising. Companies like Ecarx are already using it to power their advanced car solutions, and it’s expected to be the key to next-gen digital cockpit solutions in 2024 and beyond.

     

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    TikTok to revive its e-commerce in Indonesia with Tokopedia takeover https://techwireasia.com/12/2023/what-does-the-tiktok-tokopedia-takeover-mean-for-e-commerce-in-indonesia/ Wed, 13 Dec 2023 00:30:17 +0000 https://techwireasia.com/?p=236375 TikTok is investing US$1.5 billion in a 75% stake in the top e-commerce platform in Indonesia, Tokopedia.  The move comes after the Indonesian government’s mandate for TikTok to close its e-commerce features. The expanded entity merges Tokopedia and TikTok Shop Indonesia, running shopping features within the TikTok app in Indonesia. In a sudden twist of events... Read more »

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  • TikTok is investing US$1.5 billion in a 75% stake in the top e-commerce platform in Indonesia, Tokopedia. 
  • The move comes after the Indonesian government’s mandate for TikTok to close its e-commerce features.
  • The expanded entity merges Tokopedia and TikTok Shop Indonesia, running shopping features within the TikTok app in Indonesia.
  • In a sudden twist of events roughly two months ago, TikTok, the widely embraced social media platform from China’s ByteDance, temporarily suspended its e-commerce services in Indonesia. The decision was prompted by regulatory mandates instituted by the Indonesian government to protect local merchants’ interests.

    Fast forward to this week, and TikTok has orchestrated a remarkable strategy in the archipelago, unveiling plans to invest over US$1.5 billion and secure a 75% stake in Tokopedia, the nation’s largest e-commerce platform

    TikTok’s decision to temporarily shut down its e-commerce services in Indonesia reflects the complex interplay between regulatory compliance, market dynamics, and strategic investments. But the social media giant did say it would recalibrate its approach to navigate the evolving regulatory landscape.

    That said, the strategic move to collaborate with Tokopedia underscores TikTok’s commitment to the Indonesian market. It allows the company to continue its ‘Shop’ operations, showcasing the platform’s resilience in navigating regulatory challenges.

    Indonesia's Trade Minister Zulkifli Hasan poses during the launch of social media video sharing app TikTok and Indonesia's leading e-commerce site Tokopedia's Buy Local Campaign in Jakarta on December 12, 2023. (Photo by Yasuyoshi CHIBA / AFP).

    Indonesia’s Trade Minister Zulkifli Hasan poses during the launch of social media video sharing app TikTok and Indonesia’s leading e-commerce site Tokopedia’s Buy Local Campaign in Jakarta on December 12, 2023. (Photo by Yasuyoshi CHIBA / AFP).

    The Indonesian government mandated TikTok to halt its e-commerce services temporarily in October this year; the move was solely to ensure a level playing field for local merchants and protect their interests within the fiercely competitive e-commerce sector.

    For TikTok, it was a detrimental move, especially for TikTok Shop, considering Southeast Asia is the app’s biggest market in terms of users, and Indonesia, the region’s biggest economy and most populous nation, is the most significant market for the platform

    In fact, Indonesia was so critical to TikTok’s plans that it was the first nation to pilot the app’s e-commerce arm, TikTok Shop. The country of 278 million people was supposed to be a template for a global expansion from the US to Europe. When talks on the new ruling were making waves, TikTok argued that separating social media and e-commerce would hamper innovation and hurt millions of merchants and consumers. 

    According to the country’s Director General of Public Information and Communications of the Ministry of Communications and Informatics, Usman Kansong, Tiktok Indonesia has two permits from his ministry. “There are two permits: social media and e-commerce. But with Minister of Trade Regulation No. 31 of 2023, Tiktok must separate social media from e-commerce,” he added.

    TikTok has a new strategy in Indonesia

    The logo of Indonesia's leading e-commerce site Tokopedia is seen during the launch of the Buy Local Campaign in Jakarta on December 12, 2023. (Photo by Yasuyoshi CHIBA / AFP).

    The logo of Indonesia’s leading e-commerce site Tokopedia is seen during the launch of the Buy Local Campaign in Jakarta on December 12, 2023. (Photo by Yasuyoshi CHIBA / AFP).

    When the ByteDance-owned TikTok unveiled its strategic move on Monday, it said the plan was to invest US$1.5 billion in a unit of Indonesia’s GoTo, aiming to salvage its shopping business following regulatory challenges in the country. In a letter to investors, GoTo said TikTok will secure a controlling 75.01% stake in Tokopedia, an e-commerce unit within the GoTo umbrella. 

    As a part of this transaction, Tokopedia is set to acquire TikTok Shop’s Indonesia business for US$340 million, expanding its footprint in the dynamic Indonesian e-commerce landscape. “As part of the agreement, Tokopedia and TikTok Shop Indonesia’s businesses will be combined under the existing PT Tokopedia entity in which TikTok will take a controlling stake. The shopping features within the TikTok app in Indonesia will be operated and maintained by the enlarged entity,” GoTo’s statement reads.

    The arrangement will allow TikTok and GoTo to serve Indonesian consumers and MSMEs comprehensively. “GoTo will benefit from the growth of the enlarged entity and will remain an ecosystem partner to Tokopedia through its digital financial services via GoTo Financial and on-demand services via Gojek. GoTo will also receive an ongoing revenue stream from Tokopedia commensurate with its scale and growth,” GoTo noted.

    What will unfold next?

    According to both companies, the strategic partnership will kick off with an initial pilot period conducted in close collaboration with and under the supervision of relevant regulators. The Beli Lokal initiative’s inaugural campaign is scheduled to launch on December 12, aligning with Indonesia’s National Online Shopping Day (Harbolnas) — a government initiative to foster the country’s digital economy by bolstering local MSMEs. 

    TikTok pulls a power move in Indonesia.

    TikTok pulls a power move in Indonesia.

    “This campaign, accessible on both TikTok and Tokopedia, will spotlight a diverse array of merchants, placing a significant emphasis on Indonesian products. Going forward, TikTok, Tokopedia, and GoTo will transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years,” GoTo added. The transaction is expected to close in the first quarter of 2024.

    The coming months will unveil how TikTok’s bold moves will shape the narrative of e-commerce partnerships and regulatory compliance in this dynamic market.

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    Singapore: the powerhouse behind Nvidia’s revenue https://techwireasia.com/12/2023/what-did-singapore-do-to-nvidia-q3-revenue-and-how/ Thu, 07 Dec 2023 00:30:20 +0000 https://techwireasia.com/?p=236162 Singapore contributed around 15%, or US$2.7 billion, to the quarterly revenue of Nvidia, as revealed in the chipmaker’s SEC filing for the quarter ending in October. In the third quarter, revenue from Singapore surged by 404.1%, exceeding Nvidia’s overall revenue growth of 205.5% from the same period last year. Experts reckon it is likely due... Read more »

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  • Singapore contributed around 15%, or US$2.7 billion, to the quarterly revenue of Nvidia, as revealed in the chipmaker’s SEC filing for the quarter ending in October.
  • In the third quarter, revenue from Singapore surged by 404.1%, exceeding Nvidia’s overall revenue growth of 205.5% from the same period last year.
  • Experts reckon it is likely due to the city state’s volume of data centers and cloud service providers.
  • Over the last two decades, Singapore has made significant strides in solidifying its global data center hub position, capitalizing on its strategic location, robust fiber broadband connectivity, cloud services availability, and pro-business policies. Today, the city-state has formed a formidable digital infrastructure featuring 100 data centers, 1,195 cloud service providers, and 22 network fabrics. So it’s unsurprising that Nvidia Corp. saw 15% of its revenue come from Singapore in the recently concluded third quarter.

    According to a US Securities and Exchange Commission filing, Singapore played a significant role in the US chip giant’s recent financial success, contributing US$2.7 billion of its US$18 billion revenue for the quarter ending October. The amount was a remarkable increase of 404.1% from the US$562 million recorded in the same quarter the previous year, surpassing Nvidia’s overall revenue growth of 205.5% from a year ago.

    Nvidia and Singapore - solid partners, today and in the futue. Source: Securities and Exchange Commission (SEC)

    The power of Singapore – revealed. Source: Securities and Exchange Commission (SEC)

    The growth puts Singapore ahead of every country except the US (35%), Taiwan (24%), and China, including Hong Kong (22%), based on CNBC’s observation. In the third quarter, 80% of Nvidia’s sales, as disclosed in the SEC filing, originated from the data center segment. The remaining portion was attributed to gaming, professional visualization, automotive, and other sectors.

    “Cloud service providers drove roughly half of data center revenue, while consumer internet companies and enterprises comprised approximately the other half,” said Nvidia in the filing. That said, Singapore had its advantages, considering it is a global data center hub, hosting significant players including Amazon Web Services, Microsoft Azure, IBM Softlayer, and Google Cloud. 

    What’s more, due to a robust network supported by 24 submarine cables, the country is also the landing site for a dense network of undersea cables, connecting it to other parts of Asia, Europe, Africa, Australia, and the US. A quick check on the Speedtest Global Index by Ookla shows Singapore has the world’s highest median fixed broadband speed.

    Even Citi analysts acknowledged in a November 27 report that “Singapore is also a growing area of specialized CSPs standing up data centers in the region. The contrast becomes more pronounced when accounting for Singapore’s size. On a per capita basis, Singapore spent US$600 on Nvidia chips in the quarter, whereas the US spent only US$60 and China spent approximately US$3 per capita.

    “That’s the billing location of the customer and not necessarily the point of consumption,” said Srikanth Chandrashekhar on LinkedIn, responding to a post by former Temasek director Sang Shin. Sang Shin had suggested the chips might be bound for data centers in Singapore, which seems a reasonable idea, since most Nvidia chips are headed for data centers, and Singapore has many such facilities.

    Singapore is thirsty for Nvidia chips to power data centers. Source: LinkedIn

    The irony of building data centers in Singapore is exploded by the benefits the city-state brings. Source: LinkedIn

    What’s next for Singapore’s data center sector?

    According to an article by ASEAN Briefing, 7% of total electricity consumption in Singapore goes to data centers, and it is projected to reach 12% by 2030. In short, the city-state will likely attract more players in the market, especially after lifting a moratorium on data centers in January 2022. Initially enacted in 2019, this moratorium responded to the considerable energy consumption associated with data centers.

    Singapore has rapidly emerged as a prime destination for this pivotal industry due to its technological prowess, regulatory strength, and enticing incentives.

    Firstly, the Pioneer Certificate Incentive (PC) program encourages companies, including those in the data center sector, to enhance their capabilities and undertake new or expanded activities in Singapore. 

    The incentive is aimed at companies involved in global or regional headquarters (HQ) activities, managing, coordinating, and controlling business operations for a group of companies. Designed to drive substantial investment contributions and foster advancements in leading industries, the PC aligns with the characteristics and potential of the data center sector. 

    The incentive is a win-win situation for both companies and the city-state as to qualify; businesses must introduce advanced technology, skill sets, or know-how, surpassing prevailing standards in Singapore. Additionally, they should engage in pioneering activities that substantially contribute to the economy.

    Another allure of incentives includes GST waivers on importing data center equipment and covering servers, networking gear, and cooling systems. Then there’s Singapore’s dedication to sustainability, that stands out through initiatives such as the SS 564 Green Data Centers Standard and the Data Center Carbon Footprint Assessment (DC-CFA) program. 

    The nation’s commitment to data security and privacy is also reflected in its regulatory framework, notably the Personal Data Protection Act (PDPA) and the Cybersecurity Act, fostering a trustworthy environment for data center operations.

     

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    Is the second time a charm for India’s PLI scheme for IT hardware? https://techwireasia.com/11/2023/is-the-second-time-a-charm-for-indias-pli-scheme-for-it-hardware/ Thu, 23 Nov 2023 00:45:42 +0000 https://techwireasia.com/?p=235629 27 companies, including Acer, Asus, Dell, HP, and Lenovo, join India’s ‘Make in India’ initiative under the PLI scheme. 23 out of 27 approved applicants are prepared for day-zero manufacturing, with four starting production in the next 90 days. The PLI 2.0 Scheme for IT hardware closed in August and received applications from 38 companies.... Read more »

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  • 27 companies, including Acer, Asus, Dell, HP, and Lenovo, join India’s ‘Make in India’ initiative under the PLI scheme.
  • 23 out of 27 approved applicants are prepared for day-zero manufacturing, with four starting production in the next 90 days.
  • The PLI 2.0 Scheme for IT hardware closed in August and received applications from 38 companies.
  • The production-linked incentive (PLI) scheme introduced in India in March 2020 had a tepid start, experiencing a significant shortfall. Crafted to stimulate production in 14 sectors, with an outlay of ₹1.97-lakh crore (about US$26 billion), the PLI initiative is a cornerstone of the government’s vision to bolster domestic manufacturing, positioning India as a global export hub

    It all started with the government targeting mobile manufacturing, electric components, pharmaceuticals, and medical device manufacturing. Since then, the concept has expanded to cover multiple sectors, fostering manufacturing capabilities and export-oriented production. Ultimately, the Indian government aims to enhance local supply chain capacities, introduce new downstream operations, and attract investments into high-tech production.

    The PLI scheme targeting IT hardware was only introduced in February 2021, encompassing the production of laptops, tablets, all-in-one PCs, and servers, with an allocated budget of 73.5 billion rupees (US$1.02 billion). But the program faced low participation levels due to the incentives being perceived as insufficient. So, India decided more incentives would be the best bet in luring electronics manufacturers. 

    In May 2023, Delhi unveiled a 170 billion-rupee (US$2.1 billion) financial incentive plan (PLI 2.0 scheme for IT hardware) to draw laptop, tablet, and other hardware makers to the South Asian nation, especially in the wake of the China-US trade tensions, creating an opportune moment for companies to explore alternative production options. It was only through the PLI 2.0 scheme that the Indian government began noticing better uptake. 

    How successful is the uptake of the PLI 2.0 scheme?

    According to an official statement on November 18, New Delhi has approved subsidy applications from 27 companies out of 40 applicants. The approved companies include Apple supplier Foxconn Technology Group, computer giant Lenovo Group, Dell, HP, and AsusTek Computer.

    Ashwini Vaishnaw the Union Cabinet Minister for Railways, Communications, Electronics and Information Technology. (Photo by TAUSEEF MUSTAFA / AFP).

    Ashwini Vaishnaw, the Union Cabinet Minister for Railways, Communications, Electronics and Information Technology. (Photo by TAUSEEF MUSTAFA / AFP).

    “23 out of 27 approved applicants are ready to start manufacturing on day zero,” Ashwini Vaishnaw, India’s Minister for Railways, Communications, Electronics and Information Technology, said. “Four companies will start production in the next 90 days.”

    During the initial year of the PLI scheme, companies are permitted to maintain their regular import practices, with a gradual reduction in the import quota commencing after September 2024, according to local reports. All companies were required to provide their import data for the past three years, specifying the source from which they import the devices.

    Vaishnaw also noted that India expects the PLI-approved companies, covering domestic assembly of desktop and laptop PCs, tablets, and other tech hardware, to directly create 50,000 jobs and indirectly, around 150,000 more jobs under the scheme, based on a total investment of US$360 million. He also said the estimated value of information technology hardware production would reach US$42 billion.

    Neither Apple nor Samsung applied for the scheme

    It appears that Apple has chosen not to participate in India’s PLI 2.0 scheme for IT hardware, mainly because laptops and tablets covered by the scheme constitute a relatively small share of Apple’s total sales in the Indian market, as per an ET report. The report indicates that Apple has no immediate intentions for local production of these products.

    Quoting sources, the report also stated that Apple’s manufacturing strategy deviates from the traditional model, relying on global electronic contract manufacturers instead of establishing its production facilities. Apple also chose not to participate in the smartphone PLI scheme, as highlighted by the executives. Approximately 80% of Apple’s revenue in India is derived from smartphones, the cornerstone of the company’s product lineup.

    As a result, Apple’s strategic emphasis is on expanding iPhone production within the country. It’s noteworthy that, even for smartphones, the tech giant did not pursue PLI benefits, although its manufacturing partners, such as Foxconn and Wistron, submitted applications for the scheme.

    On the other hand, despite benefiting from the smartphone-focused PLI initiative, Samsung, the South Korean tech giant, has opted not to participate in the PLI 2.0 scheme. This decision is influenced by Samsung’s relatively limited presence in the laptop market, with the tablet sector contributing little to the company’s revenue stream.

    Companies approved under PLI 2.0 Scheme for IT Hardware. Source: X.com.

    Companies approved under PLI 2.0 Scheme for IT Hardware. Source: X.com.

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