Record Uranium Prices, US AI Chip Export Restrictions & Global Data Center Surge - Silicon Brief #1

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In this edition of the Silicon Brief, we're diving into the latest developments in AI chips and data centers. LG Innotek has started mass production of FC-BGA substrates, a critical component for advanced AI chips, while TSMC reported a significant 39% revenue increase in Q4 2024, highlighting the growing demand for semiconductor technology. Meanwhile, Apple has joined the Ultra Accelerator Link Consortium, signaling its commitment to advancing AI chip technology.

On the data center front, Nscale is set to invest $2.5 billion in UK data centers, and CoreWeave has launched new facilities in the UK, expanding their global footprint. In the United States, Anduril Industries is planning to build Arsenal-1 in Ohio, and Hut 8 is boosting the Louisiana economy with its new data center. These developments underscore the rapid growth and investment in AI infrastructure worldwide.

Meta has acquired 200 megawatts of solar energy from Engie, while uranium prices hit a record high due to AI demand. A Capgemini report highlights increased carbon emissions from AI-driven data centres. VoltaGrid and Jenbacher are developing a gas power system for data centres, and Beacon AI Centers plans a 1.8 GW data centre in Alberta. Pure Storage and Micron partner for energy-efficient data centre solutions.

NETdepot has introduced a new Cloud GPU platform featuring the NVIDIA L40S, aimed at enhancing AI and high-performance computing with enterprise-grade security and performance. Blaize, an AI chip startup, plans to go public on NASDAQ in 2025 through a SPAC deal, focusing on AI chips for edge applications. Clayco has launched Clayco Compute, a new unit focused on building advanced technology centers like data centers. This initiative aims to address the rising need for secure data storage and cloud solutions, with expected revenues exceeding $4.5 billion by 2026.

Corning, Edwards Vacuum, and Infinera receive CHIPS incentives from the U.S. Department of Commerce to boost semiconductor production in New York, California, and Pennsylvania. The US restricts AI chip exports to certain countries, raising concerns among EU officials about economic and security implications. President Biden signs an Executive Order to strengthen U.S. AI infrastructure, directing federal departments to lease sites for AI data centers and clean energy facilities.

Nscale, a London-based AI hyperscaler, plans to invest $2.5 billion in the UK data centre industry over the next three years, supporting the UK Government's AI Opportunities Action Plan. CoreWeave, a $19 billion AI compute provider, has opened its first two international data centers in the UK as part of a £1 billion investment plan. Anduril Industries has chosen Columbus, Ohio, for its Arsenal-1 hyperscale manufacturing facility, focusing on autonomous systems and weapons production. The project will create over 4,000 jobs and involves a nearly $1 billion investment.

LG Innotek has begun mass production of flip-chip ball-grid array substrates at its Gumi plant in South Korea, targeting the server and data center market with production for a major North American tech client already underway. Taiwan Semiconductor Manufacturing Co. (TSMC) announced a 39% rise in quarterly sales, reaching NT$868.5 billion ($26.3 billion), surpassing estimates and reinforcing expectations for continued AI hardware spending into 2025. Apple has joined the Ultra Accelerator Link Consortium to develop a new standard, UALink, for connecting AI accelerator chips in data centers, alongside members like Alibaba and Synopsys.