In an age where traditional wire transfers and steep fees once hindered international money transfers, the landscape of financial transactions has undergone a remarkable transformation. With the emergence of borderless banking platforms such as Wise, sending money across borders has been redefined. As this fintech trailblazer continues to disrupt the industry, it’s imperative to unravel the narrative behind Wise and understand its profound impact on travel and financial experiences in Malaysia and across the globe.

Born out of a desire to challenge the status quo of traditional banking and tackle the opaque and often exorbitant fees associated with cross-border transactions, Wise has emerged as a disruptive force in the digital finance arena. Its innovative platform has empowered millions of individuals and businesses worldwide to navigate the complexities of international finance with unparalleled transparency and ease.

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Through an insightful interview with Lim Paik Wan, Country Manager of Wise Malaysia, we delve into how the company harnesses the power of technology to reshape the travel and savings landscape in Malaysia and beyond.

The digital renaissance has brought transformative shifts in travel. How do you see technology shaping every aspect of travel beyond being a mere tool to smoothen the process?

Technology has now made travel more accessible and has allowed consumers to personalize their holidays, as people now take to blogs and social media platforms for inspiration. Additionally, consumers are now accustomed to instant and seamless experiences, with everything readily available through a few taps on their smartphones. This seamless digital connectivity has also changed how people make transactions for their travels. 

Lim Paik Wan, Country Manager, Malaysia at Wise

In years past, travelers needed to exchange cash physically and were usually required to pay for most meals and excursions in cash. Today, contactless payment options are offered almost everywhere, making it easier and safer for consumers to make international transactions. 

Even how consumers plan their travels has changed, with hotel bookings and flights done through travel apps. However, consumers still face challenges as the world transitions to a largely cashless society. A common one is a general unfamiliarity with international transaction fees, causing them to spend more than anticipated or budgeted for. Issues like these have led fintech providers to create solutions to make these processes smoother and more manageable. 

How do Wise’s digital cards and contactless payment solutions like Apple Pay and Google Pay enhance travel safety?

Today, contactless payment methods are widely accepted in many countries, lessening the burden of carrying large sums of cash. However, when used internationally, most traditional credit or debit cards tend to come with additional fees and hidden costs. Providers like Wise offer users the ability to hold money in over 40 currencies and make transactions at the mid-market exchange rate with no markups, helping travelers save money on international transactions. 

This relieves users of having multiple traditional cards, where they would have to bear the cost of foreign transaction fees and interest fees. Wise’s smart technology automatically converts the currencies you hold in your account for you, which have the lowest conversion fee; the card even allows users to withdraw money from ATMs with low fees while traveling.

Another great thing is that Wise users can start spending immediately with its digital cards, available instantly upon request in the app. Users can get up to 3 digital cards with different card details for an extra layer of protection. These digital cards can be deleted anytime, so customers can generate new card details when they need them. 

The cards can also be added to Apple Pay and Google Pay — these contactless payment methods are powered by NFC technology, which is generally more secure. Additional features on the account allow users to track their spending in real-time, ensuring smoother user and travel experiences. 

How has the pandemic impacted Wise’s services, particularly regarding international travel and cross-border transactions?

Digital adoption during the pandemic created the expectation for instant and real-time processes and a trend of contactless payment options. This has dramatically impacted the Malaysian market, as e-wallets and mobile payments are now expected payment options that businesses should offer. Additionally, we found that Malaysians are spending more time online, adopting more

Wise app shows that users can manage all their currencies all over the world. Source: Wise

international lifestyles, and traveling more frequently, leading to an increase in cross-border spending and shopping. 

These trends suggest a need for efficient cross-border payment solutions that offer faster, cheaper, and transparent international payments. Wise addresses these needs with its multi-currency account, empowering Malaysian consumers to seamlessly navigate global payments and lifestyles with no hidden fees and complete transparency. 

The recent launch of Wise on Apple Pay and Google Pay in Malaysia is part of our commitment to making international transactions more convenient and accessible for customers. A few other ways Wise is providing more convenience is by offering our users the ability to send money to popular e-wallets in the region, including Touch’nGo in Malaysia, GrabPay in the Philippines, and ShopeePay in Indonesia — being able to offer multiple money movement options makes moving money across borders even more convenient.

How does Wise promote financial literacy and awareness among users regarding currency exchange and international transactions?

A crucial part of our mission has been advocating for transparency in foreign exchange fees, empowering people with knowledge and insight into their transactions. This is reflected in our services and is why we support transparent and fair cross-border transactions. With Wise, all fees are transparently displayed to customers when they set up a transaction. 

Customers pay a single upfront fee, and the exchange rate they get is the one you see on Google with no markups or hidden charges. People also gain visibility into what’s happening to their money from start to finish when making cross-border payments, which includes the actual total cost to make the payment.

Wise also offers price comparison tools in the app, which allows our customers to compare the exchange rates and fees across a range of currency routes to make better decisions when choosing their preferred provider.

What upcoming advancements can users anticipate from Wise, and how will they improve travel and financial experiences?

Not to give too much away, but we are always looking to bring globally available features to Malaysia, such as Wise Business and Wise Platform. Wise Business accounts are for businesses that want to grow and operate internationally, making it easier to manage their finances across borders, such as paying overseas vendors and employees or receiving funds from clients.

Wise Platform is our infrastructure offering, which enables financial institutions and businesses to incorporate our global payment network into their platforms. As Wise operates globally, we’re always looking to see what would benefit Malaysian customers and work to solve their pain points. 

Lastly, in the rapidly changing landscape of digital finance and travel, how does Wise stay adaptive and responsive to its diverse user base’s dynamic needs and preferences?

At Wise, we constantly listen to our customers, and our goal continues to be making Wise as convenient, low-cost, fast, and transparent as possible. As more Malaysians look for cross-border opportunities, it’s vital that our users can use Wise to broaden their lifestyles globally.

Looking ahead to 2024 and beyond, we’ve got a number of exciting things coming up in our product roadmap to improve the speed, convenience, and cost of cross-border payments for our customers around the world.

The post Wise: Revolutionizing travel and finance in Malaysia appeared first on Tech Wire Asia.

In a twist of events, Advanced Micro Devices Inc (AMD) finds itself at a standstill as it faces hurdles from the US government in its endeavor to sell AI chips explicitly tailored for the Chinese market. This roadblock, part of Washington’s broader crackdown on exporting advanced technologies to China, sheds light on the intricate interplay between global trade dynamics and national security concerns.

AMD’s aspiration to secure approval from the US Commerce Department to sell the AI processor to Chinese customers has hit a snag. The chip in question, the MI309, is designed to cater specifically to the demands of the Chinese market, representing AMD’s ambitious foray to capture the attention of Chinese consumers and businesses alike.

Despite designing the chip with lower performance metrics to comply with US export restrictions, officials have still deemed it too powerful. Consequently, AMD finds itself in a quandary, with US authorities mandating the acquisition of a license from the Commerce Department’s Bureau of Industry and Security before the sale can go ahead.

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“AMD had hoped to gain a green light from the Commerce Department to sell the AI processor to Chinese customers since it performs at a lower level than what the company sells outside of China,” Bloomberg reported. 

The MI309 and its hurdles

One of the pivotal moments in AMD’s journey came with the realization that its presence in China’s AI chip sector lagged behind that of its competitors, most notably Nvidia. In response, AMD intensified its efforts to capture market share and establish itself as a formidable contender in China’s burgeoning AI chip market. But the path forward was uncertain as regulatory scrutiny and export restrictions loomed.

Despite the daunting challenges, AMD pressed forward, unveiling its latest innovation, the Instinct MI309 chip, tailored specifically for the Chinese market. With its advanced features and tailored design, the MI309 chip represented a bold step forward for AMD, signaling its commitment to innovation and growth in adversity. However, the journey was far from smooth sailing, as the MI309 chip encountered regulatory hurdles and faced scrutiny from US authorities.

What will AMD do about its AI chip hurdles?

While AMD remains tight-lipped about its next steps, the Bureau of Industry and Security too has refrained from commenting on the matter, leaving the situation uncertain. The ambiguity surrounding AMD’s potential course of action has naturally fueled speculation about its future trajectory and ability to navigate the intricate web of regulatory frameworks.

AMD received licenses from the Commerce Department last August to sell its advanced AI chips, including its flagship MI250 data center GPU, to Chinese customers like cloud giants Alibaba, Tencent, and Baidu. AMD was poised to grab market share from rival Nvidia, which had most of its AI chip sales to China blocked by previous US export rules.

In fact, AMD’s opportunity in China looked huge, as the country aims to build a US$400 billion semiconductor industry to support its tech ambitions in areas like AI, 5G, and supercomputing. Chinese companies were hungry for advanced AI accelerators to power large language models, computer vision, and other cutting-edge applications.

But in early October, the Biden administration imposed new export controls restricting shipments of high-end AI chips and chip-making tools to China. The rules were intended to cut off China’s access to technologies that could aid its military capabilities. The new rules blindsided AMD and its Chinese partners. 

The MI250 and other advanced AMD AI chips appeared to fall under the new restrictions, halting the company’s AI chip sales to China. For now, the mystery persists over the identity of the Chinese client eyeing AMD’s AI chips, a crucial factor in the company’s potential licensing prospects. 

Meanwhile, Chinese tech giants like Tencent and Baidu have fortified their chip reserves from Nvidia, anticipating regulatory hurdles. On another front, Huawei is forging ahead with its AI semiconductor development, aiming to bridge the gap left by US restrictions and bolster China’s chip sovereignty.

The post AMD’s Chinese AI chip plan halted by US govt: What’s next? appeared first on Tech Wire Asia.

As the age-old adage goes, “There’s a first time for everything,” and tech titan Apple Inc., ranked second among the world’s most valuable companies, being slapped with a whopping €1.84 billion fine by European Union antitrust regulators over its App Store regulations marks an unprecedented twist. It’s a scenario Apple undoubtedly sought to sidestep with all its might (as you would), signaling a pivotal moment in the company’s storied history of navigating regulatory scrutiny.

“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” Margrethe Vestager, Executive Vice-President of the European Commission, declared. “It did so by restricting developers from informing consumers about alternative, cheaper music services outside the Apple ecosystem,” she added.

That, according to Vestager, is illegal under EU antitrust rules. “So today we have fined Apple over €1.8 billion,” she concluded on March 4, 2024. The Commission concluded on Monday that the fine of over €1.8 billion is proportionate to Apple’s global revenues and is necessary to achieve deterrence.

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A decade-long parade of Apple App Store antics

Apple’s actions may have made iPhone and iPad users pay more for music streaming for nearly ten years. Apple charged developers high fees, causing them to raise prices for users. At the heart of this conflict lies Spotify’s grievance towards Apple, stemming from what it perceives as unfair treatment in Apple’s music streaming policies.

Spotify, the world’s largest music streaming service, has long accused Apple of anti-competitive behavior, particularly regarding its App Store rules. Apple’s requirement for developers to use its in-app payment system is central to Spotify’s complaint. Apple takes a hefty commission of up to 30% on subscriptions and purchases made within the app.

Source: X.com

This commission structure, Spotify argues, puts it at a disadvantage compared to Apple Music, Apple’s streaming service, which does not face the same financial burden. Spotify contends that the high commission fees force it to either raise subscription prices for users who subscribe through the App Store or accept lower margins, undermining its ability to compete effectively.

The feud between Spotify and Apple Music eventually spilled into the regulatory arena, with Spotify filing formal complaints with antitrust authorities in the US and the European Union. These complaints allege that Apple’s conduct violates competition laws and constitutes an abuse of its dominant position in the music streaming market.

For its part, Apple has defended its App Store policies as necessary to ensure a safe and secure user experience and support the platform’s ongoing development and maintenance. The tech giant maintains that its commission fees are standard industry practice and that it applies the same rules to all developers, including its services.

From the European Commission’s point of view, Apple’s anti-steering provisions led to non-monetary harm in the form of a degraded user experience: iOS users either had to engage in a cumbersome search before they found their way to relevant offers outside the app or they never subscribed to any service because they did not find the right one on their own.

The investigation started in June 2020, when the European Commission launched an inquiry into Apple’s App Store regulations affecting app developers. This inquiry intensified in April 2021 when the Commission issued Apple a Statement of Objections, prompting a response from Apple in September of the same year. In a twist, by February 2023, the Commission had replaced the original statement with a revised version, to which Apple responded in May 2023. 

The heart of the matter lies in Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 54 of the European Economic Area Agreement, which prohibits the abuse of market dominance. While market dominance is not illegal, companies must wield it responsibly, refraining from actions that stifle competition. The upside is that fines levied for antitrust violations flow into the EU’s general budget, easing taxpayers’ burdens. 

Despite Brexit, the EU retains jurisdiction over ongoing cases initiated pre-Brexit, with the UK set to receive reimbursement for its share of any fines collected by the EU. “In setting the level of the fine, the Commission considered the duration and gravity of the infringement as well as Apple’s total turnover and market capitalization. It also factored in that Apple submitted incorrect information in the framework of the administrative procedure,” the Commission said.

What will Apple do next?

Apple criticized the EU decision, declaring its intention to challenge it in court. On Monday, the US tech giant swiftly announced its plans to appeal the penalty, marking Brussels’s first antitrust fine ever imposed on the company. “The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast,” the company said.

Apple argued that Spotify does not pay any commission to Apple because it sells its subscriptions on its website rather than through Apple’s App Store. “The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world and has met with the European Commission more than 65 times during this investigation,” it said.

The post Apple slapped with €1.8b fine for App Store music rules appeared first on Tech Wire Asia.

Semiconductor Manufacturing International Corporation (SMIC) is China’s premier advanced semiconductor foundry. Despite facing tumultuous trade winds that have buffeted the Chinese chip industry in recent years, SMIC has remained undeterred. Confronted with crippling sanctions aimed at stifling its capabilities by limiting access to crucial tools and expertise, it has responded with a display of resilience. 

Investing substantially in homegrown innovation, SMIC has showcased its capacity to thrive independently. So much so that experts have begun to acknowledge the limitations of US sanctions in crippling the Chinese chip giant, and it is evident that SMIC’s trajectory remains unwaveringly upward. In a recent DigiTimes article, Robert Castellano, president of The Information Network, highlighted the pivotal roles played by SMIC and Huawei in Beijing’s response to US sanctions, citing them as significant beneficiaries of local semiconductor industry subsidy policies. 

Castellano emphasized that both companies have emerged as crucial participants in China’s efforts to counteract the impact of sanctions, underscoring their strategic significance in the nation’s semiconductor landscape. “Projects, such as the expansion of Huawei’s Shanghai Qingpu R&D base and SMIC’s 12-inch wafer fab, have been listed as key investment projects,” DigiTimes noted.

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In the face of formidable US trade sanctions and technology export restrictions, the Chinese semiconductor foundry has not only weathered the storm with minimal revenue impact but is also boldly expanding its 12-inch wafer production lines. Moreover, the proportion of revenue from SMIC’s 12-inch wafer production has increased from 64.4% in the fourth quarter of 2022 to 74.2% in the same period of 2023, an increase of nearly 10%.

For context, in the final quarter of 2023, SMIC International witnessed a notable surge in revenue, soaring by over 3.5% to surpass the US$1.678 billion mark, marking the sole quarter of revenue growth throughout the previous year. However, despite surpassing revenue projections, a substantial decline in gross margin resulted in a steep decline of net profit by 54.7%, plummeting to approximately US$175 million. 

A Kirin chip in the new Huawei Mate 60 Pro smartphone demonstrates China’s semiconductor industry progress. (Photo by Rebecca BAILEY/AFP).

Regarding the drop in net profit, SMIC attributed it to several factors, such as the industry downturn, low market demand, high industry inventory, and intense competition among competitors. These factors led to lower capacity usage and fewer wafer shipments for the company. Moreover, SMIC invested heavily during the reporting period, resulting in higher depreciation expenses than the previous year. 

As a result, SMIC predicts a 2% increase in revenue for the first quarter of 2024 compared to the previous quarter, totaling around US$1.71 billion. This surpasses the market’s anticipated revenue of US$1.67 billion, indicating that the US sanctions have not significantly affected the company’s revenue, according to the article by DigiTimes.

The US is not stopping SMIC & Huawei

Last year, SMIC gained international attention when analysts revealed the company’s involvement in helping Huawei to develop highly advanced domestically produced chips in China. SMIC’s swift capacity expansion has also attracted considerable notice. In 2023, the company’s capital expenditure reached US$7.47 billion, marking a 17.6% increase from 2022. 

However, SMIC recently announced that it anticipates capital expenditure to remain relatively unchanged compared to last year. Yet, SMIC is advancing steadily in developing advanced 7nm and 5nm nodes, which Huawei has selected for its mobile processors and AI-centric Ascend series. Progress on both nodes remains smooth, promising enhanced performance for Huawei’s Kirin mobile chips and Ascend GPUs.

There are indications that SMIC’s 5nm chips could be ready for deployment this year, further closing the gap between China’s semiconductor industry and Western fabs. While SMIC is also eyeing advancements in 3nm technology, it’s likely at least a year away from fruition, if not longer, according to various reports.

The post SMIC defying US sanctions with 5nm innovation and Huawei alliance appeared first on Tech Wire Asia.

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.

Multiple Amazon AWS announcements at MWC demonstrate how telecom and technology markets are merging. Cloud/hyperscaler companies are crtical parts of telecom service providers' infrastructure #mwc24 pic.twitter.com/9sjRo3dTE8

— Ian Fogg (@ianfogg42) February 26, 2024

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.

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. 

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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.

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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When it comes to the landscape of semiconductor production, the US has found itself in a peculiar position: absent from the forefront of leading-edge chip manufacturing. This absence, glaring in recent years, reflects a complex interplay of factors ranging from outsourcing to regulatory hurdles. However, as the global pandemic tightened its grip on supply chains, the US embarked on a concerted effort to revitalize its semiconductor industry. 

Now, amid renewed urgency and a strategic vision, the nation has taken a reasonably ambitious stance to reclaim its status as a formidable player in chip manufacturing. “Our investments in leading-edge logic chip manufacturing will put this country on track to produce roughly 20% of the world’s leading-edge logic chips by the end of the decade,” Commerce Secretary Gina Raimondo said during a speech at the Center for Strategic and International Studies (CSIS) on February 26, 2024.

“That’s a big deal,” Raimondo added. “Why is that a big deal? Because folks, today we’re at zero.” Her speech came a year following the initiation of funding applications under the 2022 CHIPS and Science Act by the US Department of Commerce. With a staggering US$39 billion earmarked for manufacturing incentives, the stage has been set for a transformative journey in the semiconductor landscape. 

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Raimondo’s ambitious vision, unveiled concurrently, delineates the path ahead. By 2030, the US aims to spearhead the design and manufacture of cutting-edge chips, establishing dedicated fabrication plant clusters to realize this audacious objective. She outlined how, besides everything else, there’s been a significant shift in the need for advanced semiconductor chips due to AI. 

(FILES) US Commerce Secretary Gina Raimondo testifies during the Senate Commerce, Science, and Transportation hearing. (Photo by SAUL LOEB/AFP).

“When we started this, generative AI wasn’t even part of our vocabulary. Now, it’s everywhere. Training a single large language model takes tens of thousands of leading-edge semiconductor chips. The truth is that AI will be the defining technology of our generation. You can’t lead in AI if you don’t lead in making leading-edge chips. And so our work in implementing the CHIPS Act became much more important,” Raimondo emphasized.

The US meeting its goal will create “hundreds of thousands of good-paying jobs,” Raimondo said Monday. “The truth of it is the US does lead, right? We do lead. We lead in the design of chips and the development of large AI language models. But we don’t manufacture or package any leading-edge chips that we need to fuel AI and our innovation ecosystem, including chips necessary for national defense. We don’t make it in America, and the brutal fact is the US cannot lead the world as a technology and innovation leader on such a shaky foundation,” she iterated.

Why is there a gap between US and chip manufacturing?

The US grappled with a significant gap in chip manufacturing for several reasons. Firstly, many semiconductor companies outsourced their manufacturing operations overseas to cut costs, leading to a decline in domestic chip production capacity. Secondly, as semiconductor technology advanced, the complexity and cost of building cutting-edge fabrication facilities increased, discouraging investment in new fabs. 

Additionally, global competitors like Taiwan, South Korea, and China expanded their semiconductor industries rapidly, intensifying competition. Furthermore, while other countries provided substantial government support to their semiconductor industries, the US fell behind. Then, there were regulatory hurdles, and environmental regulations make building and operating semiconductor fabs in the US challenging and costly. 

A combination of outsourcing, technological challenges, global competition, lack of government support, and regulatory issues contributed to the US’s gap in chip manufacturing, with none of the world’s leading-edge chips being produced domestically.

And then the world woke up one day in deperate need of leading-edge semiconductors to fuel the next industrial revolution, and the US realized its mistake.

“We need to make these chips in America. We need more talent development in America. We need more research and development in America and just a lot more manufacturing at scale,” Raimondo said in her speech at CSIS.

2030 vision: prioritizing future-ready projects

US President Joe Biden greets attendees after delivering remarks on his economic plan at TSMC chip manufacturing facility. (Photo by Brendan SMIALOWSKI/AFP).

Raimondo declared that the US will first prioritize projects that will be operational by the end of this decade. “I want to be clear: there are many worthy proposals that we’ve received with plans to come online after 2030, and we’re saying no, for now, to those projects because we want to maximize our impact in this decade,” she clarified.

The US will give priority to “excellent projects that could come online this year” instead of granting incentives to projects that will come online in 10 or 12 years from now. She also referred back to the goal mentioned last year – when the US is all said and done with this CHIPS initiative – to have at least two new large-scale clusters of leading-edge logic fabs, each of those clusters employing thousands of workers. 

“I’m pleased to tell you today we expect to exceed that target,” she claimed. So far, the Commerce Department has awarded grants to three companies in the chip industry as part of the CHIPS Act: BAE Systems, Microchip Technology, and, most recently, a significant US$1.5 billion grant to GlobalFoundries. Additional funding is anticipated for Taiwan Semiconductor Manufacturing Co. and Samsung Electronics as they establish new facilities within the US.

Raimondo also highlighted her nation’s commitment to supporting the production of older-generation chips, referred to as mature-node or legacy chips. “We’re not losing sight of the importance of current generation and mature node chips, which you all know are essential for cars, medical devices, defense systems, and critical infrastructure.”

Yet the lion’s share of investments, totaling US$28 billion out of US$39 billion, is earmarked for leading-edge chips. Raimondo emphasized that this program aims for targeted investments rather than scattering funds widely. She disclosed that the Department has received over US$70 billion in requests from leading-edge companies alone.

For now, anticipation is high for the Commerce Department’s new round of grant announcements, scheduled to coincide with President Joe Biden’s State of the Union address on March 7. Among the expected recipients is TSMC, which is establishing new Arizona facilities.

Two months ago, the rhetoric was centered on China. Today, it’s firmly USA-first.

The post Zero to 20%: US aims for chip domination by 2030 appeared first on Tech Wire Asia.

In an era where digital privacy is paramount, Apple is integrating PQ3 into iMessage. This announcement marks a watershed moment in messaging security, propelling iMessage to unprecedented heights of protection. As the first widely deployed messaging app to achieve Level 3 security, what does the announcement mean for iPhone users, and why should they care?

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At the heart of Apple’s PQ3 integration lies a revolutionary cryptographic protocol designed to withstand the challenges posed by quantum computing. Unlike traditional encryption methods, which may be vulnerable to future quantum attacks, PQ3 provides robust protection against even the most sophisticated adversaries. Using advanced cryptographic techniques, PQ3 ensures that iMessage conversations remain secure and private, regardless of the evolving threat landscape.

“To our knowledge, PQ3 has the strongest security properties of any at-scale messaging protocol in the world,” Apple’s Security Engineering and Architecture (SEAR) team stated in a blog post a week ago.

The new state of the art in quantum-secure messaging at scale. Source: Apple.

A quantum leap in messaging security

Traditionally, messaging platforms rely on classical public key cryptography like RSA, elliptic curve signatures, and Diffie-Hellman key exchange for secure end-to-end encryption. These algorithms are based on complex mathematical problems deemed computationally intensive for conventional computers, even with Moore’s law in play. However, the advent of quantum computing poses a new challenge.

A powerful enough quantum computer could solve these mathematical problems in novel ways, potentially jeopardizing the security of end-to-end encrypted communications. While quantum computers capable of decryption aren’t yet available, well-funded attackers can prepare by exploiting cheaper data storage. They accumulate encrypted data now, planning to decrypt it later with future quantum technology—a tactic termed “harvest now, decrypt later.”

When iMessage launched in 2011, it became the first widely available messaging app with default end-to-end encryption. Over the years, Apple has continually enhanced its security features. In 2019, the iPhone maker bolstered its cryptographic protocol by transitioning from RSA to elliptic curve cryptography (ECC) and safeguarding encryption keys within the secure enclave, increasing protection against sophisticated attacks. 

“Additionally, we implemented a periodic rekey mechanism for cryptographic self-healing in case of key compromise. These advancements underwent rigorous formal verification, ensuring the robustness of our security measures,” the blog post reads. The cryptographic community has been developing post-quantum cryptography (PQC) to address the threat of future quantum computers. These new public key algorithms can run on today’s classical computers without requiring quantum technology. 

Designing PQ3

Designing PQ3 involved rebuilding the iMessage cryptographic protocol to enhance end-to-end encryption, meeting specific goals:

1. Post-quantum cryptography: PQ3 protects all communication from current and future adversaries by introducing post-quantum cryptography from the start of a conversation.
2. Mitigating key compromises: It limits the impact of critical compromises by restricting the decryption of past and future messages with a single compromised key.
3. Hybrid design: PQ3 combines new post-quantum algorithms with current elliptic curve algorithms, ensuring increased security without compromising protocol safety.
4. Amortized message size: To minimize additional overhead, PQ3 spreads message size evenly, avoiding excessive burdens from added security.
5. Formal verification: PQ3 undergoes standard verification methods to ensure robust security assurances.

According to Apple, PQ3 introduces a new post-quantum encryption key during iMessage registration, using Kyber post-quantum public keys. These keys facilitate the initial critical establishment, enabling sender devices to generate post-quantum encryption keys for the first message, even if the receiver is offline.

Furthermore, PQ3 implements a periodic post-quantum rekeying mechanism within conversations to self-heal from crucial compromise and protect future messages. This mechanism creates fresh message encryption keys, preventing adversaries from computing them from past keys.

The protocol utilizes a hybrid design, combining elliptic curve cryptography with post-quantum encryption during initial critical establishment and rekeying. Rekeying involves transmitting fresh public key material in line with encrypted messages, with the frequency of rekeying balanced to preserve user experience and server infrastructure capacity.

PQ3 continues to rely on classical cryptographic algorithms for sender authentication and essential verification to thwart potential quantum computer attacks. These attacks require contemporaneous access to a quantum computer and cannot be performed retroactively. But Apple noted that future assessments will evaluate the need for post-quantum authentication as quantum computing threats evolve.

A man uses an Apple iPhone in Beijing on September 12, 2023. (Photo by Pedro PARDO/AFP).

Why PQ3 on iMessage matters for iPhone Users

Integrating PQ3 into iMessage signifies a huge leap forward in privacy and security for iPhone users. With the exponential growth of data and the looming specter of quantum computing, traditional encryption methods face unprecedented challenges. PQ3 mitigates these risks by providing quantum-resistant protection, ensuring that your conversations remain shielded from future threats. 

PQ3’s implementation in iMessage demonstrates Apple’s interest in safeguarding user privacy and staying ahead of emerging security threats. Beyond its robust encryption capabilities, PQ3 introduces a host of additional security features designed to enhance the overall integrity of iMessage. These include secure fundamental establishment mechanisms, cryptographic self-healing protocols, and real-time threat detection capabilities. 

By incorporating these advanced security measures, Apple hopes to ensure that iMessage remains a bastion of privacy in an increasingly interconnected world.

When can iPhone users expect the update?

Support for PQ3 will begin with the public releases of iOS 17.4, iPadOS 17.4, macOS 14.4, and watchOS 10.4. Already available in developer previews and beta releases, PQ3 will automatically elevate the security of iMessage conversations between devices that support the protocol. As Apple gains operational experience with PQ3 globally, it will gradually replace the existing protocol within all sustained conversations throughout the year.

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Once a dominant semiconductor force, Intel has faced significant challenges from rising competitors in recent decades. But, fueled by a strategic overhaul and innovative technologies in recent years, the Silicon Valley behemoth is primed for a resurgence. In 2021, Intel initiated its comeback with an extensive technology roadmap, culminating this week in the launch of its contract chip manufacturing business. Branded as the “world’s first systems foundry” for the AI era, the move signals Intel’s intention to challenge Asian rivals like TSMC and Samsung for industry supremacy.

In a strategic pivot unveiled on February 21, Intel rebranded its contract chip-making venture from Intel Foundry Services to the sleeker, more succinct title of Intel Foundry. This renaming marks a significant step in CEO Pat Gelsinger’s plan, announced in early 2021, to revitalize Intel’s manufacturing sector and establish a formidable presence in the chipmaking ecosystem. Embracing Gelsinger’s ambitious IDM 2.0 strategy, Intel Foundry represents an evolution of the company’s integrated device manufacturing model. 

Pat Gelsinger, Intel CEO, introduces Intel Foundry during the Intel Foundry Direct Connect event on Wednesday, Feb. 21, 2024, in San Jose, California. (Credit: Intel Corporation).

This initiative involves substantial investments in manufacturing capabilities, alongside a renewed focus on contract chip manufacturing and strategic collaborations with external foundries. With Intel Foundry at its core, Gelsinger’s comeback blueprint aims to fortify Intel’s product lineup and position the company as a leading provider of cutting-edge semiconductor solutions for a diverse range of partners and clients.

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“AI is profoundly transforming the world and how we think about technology and the silicon that powers it,” said Gelsinger. “This is creating an unprecedented opportunity for the world’s most innovative chip designers and Intel Foundry, the world’s first systems foundry for the AI era. Together, we can create new markets and revolutionize how the world uses technology to improve people’s lives.”

The company emphasized customer support and ecosystem partnerships. Synopsys, Cadence, Siemens, and Ansys are ready to expedite chip designs for Intel Foundry customers using validated tools, design flows, and IP portfolios for Intel’s advanced packaging and 18A process technologies.

Intel Foundry roadmap extends past 5N4Y

Foundry process roadmap graphic. Source: Intel

At this week’s event, Intel, for the first time since 2021, provided an update to its process roadmap. Intel confirmed that its ambitious plan to introduce five nodes within four years, known as 5N4Y, is progressing as planned. In fact, Intel anticipates reclaiming its position as a process leader from TSMC with Intel 18A by 2025. Intel also reaffirmed its mission to dethrone Samsung and claim the title of the world’s second-largest foundry by 2030. 

An Intel factory employee holds a wafer with 3D stacked Foveros technology at an Intel fab in Hillsboro, Oregon. (Credit: Intel Corporation).

Beyond that, Intel revealed plans for enhanced versions of Intel 3, Intel 18, and Intel 14A, each fine-tuned to elevate performance, introduce innovative features, or incorporate the groundbreaking Foveros Direct 3-D stacking technology for cutting-edge chip designs. Furthermore, Intel hinted at extending the capabilities of Intel 3 with the introduction of Intel 3-T, where the “T” signifies the integration of Foveros Direct technology, connecting chips through a pioneering method known as through-silicon vias. 

The company then announced the forthcoming Intel 14A, slated for commercialization in late 2026, and teased a revolutionary leap in lithography technology with High NA EUV. The roadmap promises a future brimming with innovation and transformative possibilities for Intel and the semiconductor industry.

After all, each successive node heralds a surge in performance-per-watt, reflecting Intel’s pursuit of innovation propels it closer to its lofty aspirations.

Also highlighted are mature process nodes, including new 12 nanometer nodes expected through the joint development with UMC announced last month. These evolutions are designed to enable customers to develop and deliver products tailored to their specific needs. Intel Foundry plans a new node every two years and node evolutions along the way, giving customers a path to evolve their offerings on Intel’s leading process technology continuously. 

“Intel also announced the addition of Intel Foundry FCBGA 2D+ to its comprehensive suite of ASAT offerings, which already include FCBGA 2D, EMIB, Foveros, and Foveros Direct,” the company added. To date, Intel has rolled out products on the first two nodes of Gelsinger’s plan—Intel 7 and Intel 4—and now, the company is gearing up for the next stage with Intel 3 ready for high-volume manufacturing.

 The first product on Intel 3 will be a new generation of Xeon server CPUs, codenamed Sierra Forest, focusing on high-core density, slated for release in the first half of this year. 

Intel scored Microsoft

Intel claims that customers are backing Intel’s long-term systems foundry strategy. Intel Foundry has secured design wins across various process generations, including Intel 18A, Intel 16, and Intel 3, with substantial customer volume on Intel Foundry’s advanced packaging capabilities. 

Microsoft’s Satya Nadella announced during Gelsinger’s keynote that they’ve selected a chip design for Intel 18A production. “We are in the midst of a fascinating platform shift that will fundamentally transform productivity for every individual organization and the entire industry,” Nadella said. 

“To achieve this vision, we need a reliable supply of the most advanced, high-performance, and high-quality semiconductors. That’s why we are so excited to work with Intel Foundry and why we have chosen a chip design that we plan to produce on the Intel 18A process,” he added.

Intel Foundry anticipates a lifetime deal value exceeding US$15 billion across wafers and advanced packaging.

The post Intel Foundry: racing for chip supremacy with 18A tech and Microsoft onboard appeared first on Tech Wire Asia.

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.

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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

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

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.

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In semiconductor manufacturing, there is a battle raging between Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics. As the demand for advanced chips skyrockets in the era of AI, 5G, and the Internet of Things (IoT), the competition between these industry giants has intensified, with each vying for dominance in the lucrative chip market.

Not too long ago, in a compelling twist unveiled during Samsung Electronics’ fourth-quarter financial disclosure of 2023, whispers of a meaningful deal echoed through the tech sphere: the company’s foundry division had clinched a coveted contract for 2-nanometer (nm) AI chips. At that point, shrouded in mystery, Samsung kept the identity of this pivotal partner concealed. 

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Earlier this week, a revelation from Business Korea unveiled the patron: Japanese AI startup Preferred Networks Inc. (PFN). Since its inception in 2014, PFN has emerged as a powerhouse in AI deep learning, drawing substantial investments from industry giants like Toyota, NTT, and FANUC, a leading Japanese robotics firm.

Samsung vs TSMC

Samsung, headquartered in Suwon, South Korea, is set to unleash its cutting-edge 2nm chip processing technology to craft AI accelerators and other advanced AI chips for PFN, as confirmed by industry insiders on February 16, 2024. 

Should news of this landmark deal be legitimate, it would prove mutually advantageous. It empowers PFN with access to state-of-the-art chip innovations for a competitive edge while propelling Samsung forward in its fierce foundry market rivalry with TSMC, as per insider reports.

Ironically, PFN has had a longstanding partnership with TSMC dating back to 2016 but is opting to shift gears hereon, going for Samsung’s 2nm node for its upcoming AI chip lineup, according to a knowledgeable insider. PFN also chose Samsung over TSMC due to Samsung’s full-service chip manufacturing capabilities, covering everything from chip design to production and advanced packaging, sources revealed.

Experts also speculate that although TSMC boasts a more extensive clientele for 2nm chips, PFN’s strategic move to Samsung hints at a potential shift in the Korean giant’s favor. This pivotal decision may pave the way for other significant clients to align with Samsung, altering the competitive landscape in the chipmaking realm.

No doubt, in the cutthroat world of contract chipmaking, TSMC reigns supreme, clinching major deals with industry giants like Apple Inc. and Qualcomm Inc. But, as the demand for top-tier chips escalates, the race for technological superiority is heating up, with TSMC and Samsung at the forefront of the battle. While TSMC currently leads the pack, boasting 2nm chips for clients like Apple and Nvidia, Samsung is hot on its heels. 

“Apple is set to become TSMC’s inaugural customer for the 2nm process, positioning TSMC at the forefront of competition in the advanced process technology,” TrendForce stated in its report. Meanwhile, according to Samsung’s previous roadmap, its 2nm SF2 process is set to debut in 2025. 

Samsung’s Advanced Node Roadmap Down to 1.4nm in 2027. Graph: The Korean Economic Daily.

“As stated in Samsung’s Foundry Forum (SFF) plan, Samsung will begin mass production of the 2nm process (SF2) in 2025 for mobile applications, expand to high-performance computing (HPC) applications in 2026, and further extend to the automotive sector and the expected 1.4nm process by 2027,” TrendForce noted.

Compared to the second-generation 3GAP process at 3nm, it offers a 25% improvement in power efficiency at the same frequency and complexity and a 12% performance boost at the same power consumption and complexity while reducing chip area by 5%. In short, with TSMC eyeing mass production of 2nm chips by 2025, the competition between these tech titans is set to reach new heights.

Yet, in a strategic maneuver reported by the Financial Times, Samsung is gearing up to entice customers with discounted rates for its 2nm process, a move poised to shake up the semiconductor landscape. With its sights set on Qualcomm’s flagship chip production, Samsung aims to lure clients away from TSMC by offering competitive pricing. 

This bold initiative signals Samsung’s determination to carve out a larger market share and challenge TSMC’s dominance in the semiconductor industry.

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