TSMC's $100B Chip Investment, Microsoft's €2.9B Data Center, and Nvidia Chip Smuggling Arrests - Silicon Brief #8

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In this edition of Silicon Brief, we're diving into the latest developments in AI chips and data centers. TSMC is making waves with its announcement to invest $100 billion in US chip manufacturing, a move that underscores the growing demand for advanced semiconductor technology. Meanwhile, Axelera AI has launched its Titania AI Inference Chiplet, which aims to address the challenges of AI inference bottlenecks. These advancements highlight the rapid evolution of AI hardware, which is crucial for supporting the increasing computational needs of AI applications.

On the data center front, Microsoft is set to invest €2.9 billion in a new data center in Zaragoza, Spain, reflecting the tech giant's commitment to expanding its cloud infrastructure. Additionally, OpenAI and Oracle are collaborating to deploy 64,000 Nvidia GPUs in Texas, a significant step in enhancing AI processing capabilities. These initiatives are part of a broader trend of tech companies ramping up their data center capacities to meet the surging demand for AI-driven services.

S&P Global reports that US tech firms have contracted 48GW of clean energy since February 2024, with Texas leading in capacity due to agreements from Microsoft and Amazon. Cloudastructure partners with a renewable energy data center in Montana to cut AI infrastructure costs using hydroelectric power. Google Cloud collaborates with Project Innerspace and SLB to advance geothermal energy adoption globally. Soluna Holdings signs a 166-MW PPA with the Las Majadas Wind Project to power its Project Kati data center. Siemens Energy addresses AI data center power needs with solutions like natural gas turbines and explores hydrogen as a future fuel. BKW Energy and K51 partner to integrate data centers into the Swiss energy market for grid stabilization. GE Vernova teams up with AWS to enhance data center sustainability across multiple regions. NRG Energy plans to build four natural gas plants to support AI data centers in Texas and PJM regions by 2029.

VVDN Technologies has introduced AI-powered Wi-Fi 7 Access Point Reference Designs in partnership with Qualcomm Technologies. These designs, featuring the Qualcomm Dragonwing NPro A7 Platform, aim to improve wireless connectivity and will be presented at MWC Barcelona 2025. Huawei introduced the 'Single SitePower' architecture and the RASTM guideline at MWC Barcelona 2025, focusing on energy efficiency and reliability in data centers. SK Telecom has partnered with Schneider Electric to enhance systems for AI data centers, targeting hyperscale AIDCs in Korea and global expansion. A FastChat session highlighted the importance of safety and resiliency in rack-level infrastructure, with expert Prabhakar Muthuswamy discussing technologies for managing power and ensuring uptime.

Singaporean authorities have detained three individuals for allegedly smuggling Nvidia chips, with investigations focusing on potential diversion of servers from Dell and Supermicro to Malaysia.

SM+ and KIRA have commenced building the SMX01 data center in Jakarta's Central Business District, a $300 million project designed to support AI applications, expected to open in 2026. Amazon plans to use artificial intelligence to mitigate flood risks in Aragon, Spain, where it is building data centers. The company will invest 17.2 million euros to modernize infrastructure and optimize agricultural water use, including deploying an early warning system in Zaragoza. Microsoft is set to invest €2.9 billion in a new data center campus in Zaragoza, Spain, as part of a broader €10 billion investment in the Aragon region. The initial phase of construction will cost €582 million and is scheduled to start next year.

TSMC plans to invest $100 billion in U.S. chip manufacturing facilities over the next four years, focusing on expanding semiconductor production, particularly for AI chips. Arm has introduced its Armv9 Edge AI platform in South Korea, which includes the Cortex-A320 CPU and Ethos-U85 neural processing unit. Vecow has partnered with Neuchips to create a high-performance AI solution by integrating Vecow's Edge AI Computing System with Neuchips' Viper series.