SINGAPORE: Singapore’s biggest bank DBS posted on Wednesday ( Aug 7 ) a rise of 4 per cent in second-quarter net profit from a year earlier, boosted by stronger total income, with fee income at a record.  , Its net profit for the quarter rose to S$ 2.8 billion (Continue Reading
According to Scoot, these flight companies were probable as it had acquired two additional , Embraer E190-E2 aircraft , – bringing its current total to four. It recently announced that it plans to add nine , E190-E2 flights to its ship.  ,
These , E190-E2s will also be deployed on existing flights including those to Indonesia ‘s , Makassar,  , Balikpapan and Pekanbaru, as well as , Davao City in the Philippines and , Vientiane in Laos.
Leslie Thng, Scoot’s chief executive officer, said:” We are excited to announce the addition of another two innovative sites to our growing community – Kertajati in Indonesia and Melaka in Malaysia. We’ve had a lot of our customers connect to and leave our numerous destinations across Southeast Asia since the start of our E190-E2 plane in May, and we’ve seen a lot of interest in our flights.
Vantage Data Centers, a leading global provider of hyperscale data center campuses, has announced the groundbreaking of its second Cyberjaya campus ( KUL2 ) in Malaysia. Set on 35 acres of land adjacent to its existing campus ( KUL1 ), KUL2 will deliver 256MW of IT capacity at full build-out to support cloud adoption and the growth of artificial intelligence. Customers can expand quickly and easily at the school thanks to its own dedicated station.
” Vantage APAC marks a major step now,” said the CEO. Our KUL2 growth strengthens our market-leading place in Malaysia while contributing to the world’s electric economy”, said Raymond Tong, chairman of Vantage’s APAC company. We appreciate the assistance and support from various local partners and government departments in Malaysia, which has supported our ongoing progress.
Following last year’s announcement to invest an additional planned US$ 3 billion ( RM$ 3.3 billion ) into Malaysia, Vantage and Cyberview reached an agreement to purchase land to build what it claims is the city’s largest hyperscale data center campus. The multi-facility school, designed to support both fog and high-density processing deployments, will give customers the flexibility to target evolving market and professional needs. When both campuses are completely developed, Vantage does have 287MW of IT capability in Malaysia.
Senator Tengku Zafrul Tengku Abdul Aziz, minister of Investment, Trade and Industry ( MITI), remarked,” We welcome Vantage Data Centers ‘ plan to build an AI-ready data center at their KUL2 campus, a strategic move that will not only support Malaysia’s AI aspirations but also drive economic growth, create new job opportunities, and propel the country’s digital transformation forward”.
” As the’ brain, lungs and brain tissues’ of the digital trend, data centres facilitate the launch or expansion of standard financial activity. Data centers constitute the internet’s foundation, which underpins digitalization as it is known nowadays, along with sky technology and network infrastructure. This has, among people, enabled small businesses to flourish, while closing the world socio-economic distance. Malaysia has the advantage of facilitating more data centers, mainly AI-focused data centers, which could help Malaysia’s goal of 3, 000 wise factories by 2030. All these may assist Malaysia position itself as a leading regional hotspot for AI-enabled manufacturing”, he added.  ,  ,  ,
However, Gobind Singh Deo, secretary of Digital, said,” Malaysia is utterly committed to accelerating its modernization agenda, and positioning itself as a leader in the online economy, mainly in Southeast Asia, as the nation assumes the ASEAN chair second year. A strong online infrastructure that supports data storage and worldwide connectivity will be a important enabler of economic growth and innovation, while recognized as a crucial component of this endeavor.
Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of MIDA, said,” This is a big win for our country’s modern equipment ecology, and it’s a testament to the demand for high-quality information center companies in the region. As a partner, we’ve been working closely with Vantage to ensure that their investment is a success. We’ve provided them with comprehensive facilitation and support, and we’re confident that they’ll be able to leverage Malaysia’s unique strengths to achieve regional and global excellence”.
Kamarul Ariffin Abdul Samad, CEO of Cyberview, said,” With the expansion of Vantage Data Centers in Cyberjaya, we mark a significant milestone that underscores Cyberjaya’s standing as a premier destination for hyperscale data center providers. This development confirms Malaysia’s strategic importance as well as our unwavering commitment to promoting innovation and technological advancement. We are demonstrating our commitment to creating a dynamic and supportive future-ready digital ecosystem in Cyberjaya by aligning with the government’s vision to advance the digital economy.
In addition, Vantage has signed an Electricity Supply Agreement with Tenaga Nasional Berhad ( TNB), for 500MVA-rated power capacity via a dedicated 275kV high-voltage substation for KUL2.
” We have simplified the process of powering data centers under TNB’s Green Lane Pathway initiative by bringing all requirements for grid connectivity through our One-Stop-Centre,” said Kamal Arifin A. Rahman, TNB’s chief retail officer. The project’s accelerated delivery time is a sign of TNB’s commitment to speed up and expedite the powering of data centers, according to the statement.
Kamal Arifin emphasized that TNB’s grid infrastructure can provide reliable, stable, and secure power at a scale while also allowing the growing number of data centers in Malaysia to use renewable energy sources. Our support for data centers will help reduce carbon footprints, helping to advance Malaysia’s sustainability goals and economic growth, given that TNB’s main goal is to accelerate the transition to renewable energy and address climate change.
Vantage’s APAC portfolio includes 452MW of operational and planned IT capacity across five markets: Australia, Hong Kong, Japan, Malaysia, and Taiwan.
What does one do when their business is celebrating its 20th anniversary when they are 53 years old and Forbes names them among the 50 richest Internationals with an estimated US$ 450 million as of 2023?
The answer, according to Chu Jenn Weng, creator, managing director, and leader of Vitrox Corporation Bhd, was to reaffirm his stated desire to inspire Malaysians to establish their own world-class businesses and to employ enough skilled workers for Malay skill that we do not need to concentrate on multinational corporations for good jobs, as he shared with Digital News Asia in 2014.
Roping in his co-founders, Steven Siaw and Yeoh Shih Hoong, the trio announced on July 26 the launch of Cambrian Fund, a US$ 33.9 , million ( RM150 million ) venture capital initiative managed by Singapore-based Southern Capital Group, aimed at fostering Malaysia’s next wave of Industrial 4.0 innovators.
” Twenty-four years before, in 2000, we started ViTrox in a small room with only our goals and perseverance. We want to promote a strong tech ecosystem in Malaysia and help local tech startups right now,” Chu said.
Southern Capital will pay the difference, with each of the pair contributing RM10 million. Targeting a lift RM150 million, the remaining RM90 million may be raised from other buyers. The owners are casting a wide net and inviting additional industry figures and key players to the habitat of the fund. ” We ask our peers to undertake to a’ by Malay, for Malay ‘ philosophy”, Chu said.
With ViTrox being an automated vision assessment tools company, it is no wonder that the bank may rely on early-stage tech companies in areas such as equipment vision, artificial intelligence, and robotics.  ,
The Cambrian Fund, which honors the geographical era that saw an increase in sophisticated existence forms, aims to infuse Malaysia’s it landscape with a comparable burst of innovation.  ,
The fund’s target aligns attentively with ViTrox’s skills in appliance vision, robotics, and integrated electronics solutions for the semiconductor and electronics industries. The fund can harness the founders ‘ extensive industry expertise and sites to find and cultivate promising startups thanks to this proper alignment.
Create businesses that will result in a lot of high-quality tasks.
Kenneth Tan, CEO of Southern Capital, emphasised the reliability of the program. ” We believe that together we may play a role in establishing a new kind of venture capital fund, one that is based on knowledge, engagement, creativity, and a desire to give back”, he said. Tan emphasized the potential for the foundation to spur the development of reputable businesses that will create thousands of high-quality jobs and change years ‘ lives.
The Cambrian Fund’s release comes at a critical moment for Malaysia’s software market. There is a renewed interest in moving up the value chain in the silicon and related industries with the president’s most current release of the National Semiconductor Strategic Plan. By promoting the ecosystem’s application and design elements, the fund intends to match these efforts.
We think Malaysia has the ability to be the Silicon Valley of the East, according to Chu, referring to the firm’s wider vision. This account is a step towards building a solid local technology cluster, specialising in equipment eyesight, AI, and automation”.
The firm’s technique goes beyond mere monetary investment. The founders intend to offer coaching, business connections, and proper guidance to their investment companies as a result of their experience leading ViTrox to become a global leader in innovative X-ray inspection for the electrical and electronic industry.
Steven, a founder who is also senior executive vice president of ViTrox, highlighted the value of this hands-on approach:” Many of these entrepreneurs lack industry experience or exposure. We can bridge the gap, assist in accelerating this process, and prevent costly mistakes.
The fund will consider opportunities in Southeast Asia as well, despite its primary focus being on Malaysian startups. This regional perspective is in line with the founders ‘ goal of making Malaysia the center of technological innovation in the area.
The Cambrian Fund faces challenges, including the long-term nature of investments in hardware-software integrated products. The fund’s investments, in contrast to e-commerce ventures that might yield returns in a year or two, will likely take five or more years to bear fruit. ” We need to educate the investing community about the nature of this kind of business”, Chu acknowledged.
Despite these challenges, the founders remain optimistic about the fund’s potential impact. They see it as a crucial step in creating a self-sustaining ecosystem of innovation, where success breeds further success.
Initiatives like the Cambrian Fund will be crucial in developing the talent and ideas that will propel Malaysia’s technological advancement as it keeps positioning itself as a major player in the global semiconductor landscape. The ViTrox founders and Southern Capital are well-positioned to identify and nurture the next generation of tech leaders in Malaysia and beyond with their successful pasts and deep industry knowledge.
The tech ecosystem will closely monitor which startups will win the most industrial innovation awards in Malaysia.
Yong, 37, was charged on Aug 3 with misrepresentation of records. For the alleged large purchase of household goods and appliances, he is accused of conspiring with a lady named Jolene Low Mong Han to defraud a tax invoice from an Evergreen entity.
He has been held indefinitely and will be back in court on August 8. He faces up to 10 times ‘ prison and a fine if convicted.
Earlier this year, Yong gained notoriety by appearing on the Netflix series Super Rich In Korea, which features the tastes of five wealthy people who have decided to establish a foundation in Korea. On the show, Yong declared himself as part of” Singapore’s top 1 per cent super rich”, and gave a brief tour of his four-storey mansion in Singapore.
Audio shows will take place at the two-day Waterbomb Singapore event in Siloso Beach, Singapore, amid water cannons and crowds.  , Some big names in the Asian entertainment business will become performing, including Jay Park, Rain, Chung Ha, Cation, Sandara Park, Sorn, Jessi and Loco.
Early in May, Yong addressed the media by announcing the occasion, saying:” Evergreen Group Holdings has always been one of the pioneers in crossing K-content between Korea and Southeast Asia. We are extremely proud to be bringing in the largest K-pop events to our shores as the co-organizer of Waterbomb Singapore 2024. This is only the start of a long line of K-pop events and K-content initiatives Evergreen may be spearheading.
Many nations are carefully avoiding Taiwanese subsea cables in the Indo-Pacific in light of growing concerns about espionage and political control.
Challenges surrounding deepwater cables – fiber optic cables laid on the lake ground, used for transmitting data across continents in the Indo-Pacific – are deeply entangled with political, technical, and security issues.
Subsea cables are essential for global contacts, transmitting over , 97 % of global data, including online traffic, monetary transactions, and state communications. The modern economy’s foundation is made up of this crucial infrastructure, making it both a source of contention and a critical asset.
Disruptions, proper or natural, impact local economies heavily reliant on quick and secure internet connectivity, particularly post-pandemic, and underscore the important political and operational hurdles faced by the global subsea cable industry.
While undersea landslides, tsunamis, and natural disasters can shift the bottom and cause significant damage to subsea cable networks, intentional sabotage is a more urgent issue.
Strategic disruptions, such as the deliberate trimming of cables, can remove countries or regions and have significant repercussions affecting international trade, economic markets, and important military and economic data flows. Various strategies can be used to gain proper leverage without compromising cables include espionage and data intercept.
Recent , reports , indicate that Chinese wire repair ships may get involved in tampering with foreign cords. Subsea cables are thought to be the source of nearby to$ 10 trillion in daily monetary transactions. Similarly, proper control over these wires is important, with problems potentially impacting , gas, electricity, and data , significantly .
Subsea cables ‘ deliberate targeting can be used as a hybrid warfare strategy where both state and non-state players use unconventional means of achieving strategic goals. In political conflicts, for instance, using intentional cable cutting as a coercive measure can be used to put pressure on without using blatant military force.
This tactic can impair administrative stability and economic stability, which shows how geopolitics and technology intersect in contemporary conflicts.  , In April 2024, for example, wires connecting Taiwan’s Matsu Island were cut, reportedly by Chinese vessels.
The disturbance immediately caused the local community to be cut off from access to the internet and telephone services, demonstrating the potential for regional strategic isolation as a result of this behavior.
The broader suggestion is the risk of Taiwan’s communications facilities, which could be a forerunner to more intensive strategies to destroy Taiwan’s stability.
Taiwan’s significant role in the world’s semiconductor industry could have a negative impact on global supply chains, affecting industries globally, and possibly causing a backlash from multinational corporations and global markets.
If cables are cut as a result of a military operation or as a result, tensions will escalate significantly and there could be a defense issue, especially with nations that have safety commitments to Taiwan.
More than 20 wires connected to Chinese firms have been operating in the Indo-Pacific region between 2021 and 2026, despite ongoing efforts to reduce reliance on Chinese deepwater sites.
There are restrictions on the restrictions that can be imposed on subsurface cables, an area where Taiwanese companies now dominate, in contrast to the US’s export controls that have slowed down Chinese manufacturing and development by years.
Also, while China’s deepwater cables share similar vulnerabilities, the risk of intentional disruption or spy emanating from China toward different countries is higher.
In recent years, subsea cables have played a crucial role in the , technology competition  , between the US and China. Washington has taken steps like Team Telecom to prevent Chinese companies from obtaining contracts, and it has intervened in several projects, including the Southeast Asia-Middle East-Western Europe 6 cable.
These efforts include granting Chinese companies financial incentives for their cable projects and imposing sanctions on Chinese companies, which would address concerns about potential espionage and security risks posed by Chinese-controlled infrastructure. Retaliatory measures from Beijing have been slammed for these actions, including cable approval delays.
For example, the , Southeast Asia-Japan 2 cable project, involving Singtel, Meta, and Japan’s KDDI, has been delayed due to slow permit approvals from Chinese authorities, citing national security concerns. Projects like the Apricot and Echo cables, for instance, are being developed to connect key regions , while avoiding the South China Sea, albeit at higher costs due to longer and more complex routes.
Countries like Japan, Australia and the US enhance subsea cable security through partnerships, regulatory measures, and strategic investments. Japan has  , proactively secured , its subsea cable infrastructure through partnerships with the US, Australia and Canada.
Japanese businesses are significant players in the sector, and the nation supports international laws to safeguard these assets. In its bilateral andnbsp, Digital Economy Agreements with Australia and the UK, Singapore has included rules governing subsea cables. To ensure secure data flows, these standards include criteria for screening and certifying cable vendors, and they may also serve as a reference point for similar initiatives.
The Philippines is set to become a key data hub with several upcoming cable projects, such as , Apricot, Bifrost, PLCN, and CAP-1, featuring landing points in the country. These new connections will increase the diversity of the route and lower the latency of data transmission between North and South America and Southeast Asia. To promote connectivity and economic growth, Indonesia and Malaysia are expanding their subsea cable infrastructure.
By engaging in regional forums on cable security while maintaining a balance between their relations with China and other world powers, these nations attempt to navigate geopolitical tensions. Through strategic partnerships and joint investments, Australia has focused on cybersecurity and developing emergency plans.
To leverage its tech industry, South Korea, a key player in the global telecommunications network, has addressed the , growing demand , for high-speed and reliable internet connectivity. For example, KT Corporation is developing a , 5.6k-mile , subsea cable across the Indo-Pacific region with Savills Korea, connecting to countries like Japan, Taiwan, Indonesia, the Philippines, and Singapore.
In addressing these issues, multilateral cooperation is of utmost importance. Regional partnerships like the Quadrilateral Security Dialogue are focusing on securing these critical infrastructures to counterbalance China’s influence in the Indo-Pacific through joint investments, sharing best practices for cybersecurity, and developing contingency plans for disruptions .
Additionally,  , organizations , like the International Cable Protection Committee offer platforms for stakeholders to discuss security issues and enhance accountability mechanisms .
Strong security measures must also be implemented through international cooperation. This , includes , deploying advanced monitoring systems to detect and respond to cable damages quickly, fortifying cables with protective sheathing, and establishing protocols for rapid repairs.
Additionally, strategic redundancy, where multiple cables provide alternative routes for data transmission, is crucial to ensure continuity in case of disruptions. Therefore, countries and organizations generally adopt four different strategies to deal with these disruptions: diversification of routes, strengthening international cooperation and coordinated response plans, developing advanced monitoring systems and establishing protocols for quick repairs, and putting together stringent rules to ensure secure data flows.
Addressing these issues will be crucial for the region’s future as the demand for high-speed internet and digital connectivity grows.
Pratnashree Basu , ( pratnashree@orfonline .org ) is an Associate Fellow with the Strategic Studies Program and Centre for New Economic Diplomacy, Observer Research Foundation, India.
First published by Pacific Forum, this article is republished with permission. Read the original here.
Australian-based Asia Pacific hyperscale data centre specialist AirTrunk has joined Johor’s growing cluster of data centres by launching its flagship 150 megawatt ( MW) facility. The data centre, dubbed AirTrunk JHB1 ( JHB1 ), commenced operations on July 30,  , just 18 months after the company’s initial announcement. In a statement, AirTrunk said the , fast rollout underscores its dedication to meet Southeast Asia ‘s , desire for hyperscale data center power. The release of JHB1 , adds to Johor’s burgeoning popularity as a local data center hub.  ,
JHB1 is AirTrunk’s ninth data centre in the APJ ( AsiaPacific &, Japan )  , region and its first in Malaysia,  , reflecting , its , aggressive expansion strategy, backed by majority owner Macquarie Asset Management. The initial phases of JHB1 will provide its big technology customers with more than 50MW of capacity, with the potential to expand to 150MW to meet growing demand.  ,
The 10.3 hectare hospital in Johor Bahru will provide domestic and international connections to local tech hubs, including Singapore, which is close by. It will also serve a significant fog supply zone. Robin Khuda, founder and CEO of AirTrunk,  , said,” The rapid , supply of JHB1 is a key step in the implementation of AI in Malaysia and AirTrunk’s development as a trusted spouse for our clients in the APJ place”.
The information center has a number of features designed to maximize energy efficiency and sustainability:
” JHB1 will be the most lasting data centre in Malaysia”, Damien Spillane, AirTrunk’s Chief Technology Officer, boldly says. Highlighting the agency’s conservation credentials, Spillane added,” In line with our Net Zero by 2030 goal, we are working with our customers to supply clean energy to meet electricity consumption at the data centre”.
Additionally, the business has taken steps to improve the region’s power consistency. In order to connect JHB1 and improve the energy transition in the region, AirTrunk and Malaysian power company Tenaga Nasional Berhad ( TNB) partnered in a 2023 MOU.
Additionally, AirTrunk just made the initial clean energy Virtual Power Purchase Agreement for a data center in Malaysia, which secured 30MW of solar energy from designer bi cox as part of the country’s Business Green Power Programme.
Pei Jet Lim, AirTrunk’s Head of Malaysia, emphasised the company’s commitment to the local economy:” AirTrunk is making a positive contribution to the local economy through supporting and developing local talent and delivering critical digital infrastructure. The new data center supports Malaysia’s rapid growth in cloud and artificial intelligence ( AI ) and supports the government’s plan to establish AI hubs there.
The JHB1 facility is part of AirTrunk’s expanding Asia Pacific &, Japan data centre platform, which now comprises 11 data centres with a total capacity exceeding 1.4 gigawatts ( GW).
Malaysia is expected to play a significant role in fostering sustainable development of AI and cloud as the country continues to position itself as a major tech hub in the Asia Pacific &, Japan region.
Experts are urging nations to take action to stop flooding brought on by obvious sea level rise.
In specific, Southeast Asia is at serious risk of losing facilities and low-lying southern communities.
People believe they have plenty of time with climate change and sea level rise, according to Tjitte Nauta, local boss for Asia and Oceania at Dutch applied information university Deltares.  ,
” But now is the perfect time to study it and make the right choice.” I do encourage ASEAN ( the Association of Southeast Asian Nations ) to move towards, however, more attention, but also collaboration within the area. They can learn from each other, we may even learn from them”.
Thailand, Laos, Vietnam, Indonesia, and Malaysia are areas prone to flooding and southern degradation.
” The entire city of Bangkok is exceedingly vulnerable”, said Nauta. ” If 2m of comparative sea level rise, some 28 per cent of the Thai people and 52 per share of the GDP ( gross domestic product ) will be affected.  ,
Therefore, it should be pretty clear that Thailand will work on a long-term strategy, regardless of whether they choose to protect or relocate the city or whatever.
In Indonesia, sea level rise has a serious negative impact on large swaths of low-lying peatland used for fuel hand production.  ,
A 2m sea level rise likely had a devastating impact on Vietnam’s people, especially those who depend on their agricultural production to the Mekong and Red River Delta.
Malaysia’s coastal areas will not be spared sometimes, according to satellite information.
Recently, Deltares established an online forum where fresh ASEAN officials could express their opinions on tackling climate concerns.
Instead of telling them to do what they think they need, Josien Grashof, Deltares ‘ adviser on resilience and planning, said,” It’s very important to look at what the countries need.”  ,
” But by getting their possession of this procedure, we can actually work towards their highest objectives.”
Deltares noted issues affecting some Southeast Asian nations, including differences in regional priorities and the lack of money and reliable early warning system data.
Mr Trung Tran, an insurance scientist at CreditSights, said there has been an “unusual speed of significant events” in the market, and more combination could be on the horizon.
He said that Singapore has a large number of insurers and that the Taiwanese industry and Southeast Asia as a whole are both in high interest from international investors.
He cited the region’s massive population as being” considerably underinsured.”
Some carriers ‘ local offices can be located in Singapore. ” The territory is expected to experience solid long-term progress with fair profitability”, said Mr Tran.
When the next consolidation takes place will depend on due diligence, conversations, market timing and governmental demands, he added.
But Mr Frank Yuen, a vice president and top payment officer at Moody’s Ratings, was doubtful if the latest deals were portion of a larger pattern of consolidation.
In Aviva’s situation, the company decided that Singapore was a non-core property to them and decided to outsource its stake in Singlife, he said. Sumitomo also took it because Chinese carriers are searching for reliable foreign resources.
Allianz’s involvement in Income Insurance, however, is part of the bank’s want to come back to Asia.
” Both purchases were driven by various intentions, and also the specific aspects of the original owners”, said Mr Yuen.
He added that the industry’s consolidation obstacles may increase as a result of these mergers ‘ high costs.
Allianz is offering S$ 2.2 billion ( US$ 1.64 billion ) for 51 per cent of Income Insurance’s shares.
” It’s hard to find a client, to be honest, although there are dealers”, said Mr Yuen.
On whether current dealmaking may change market leadership, the analysts had differed.
Because the talks did n’t create new players, Mr. de Silva claimed that the competitive landscape may stay the same.
CreditSights noted that there is still room for improvement, but not so much as a reshuffling among the leading carriers.
The mergers involving Singlife and Income – if the latter bargain receives regulatory approval – involve changes in possession, and that can improve the branding, money and engineering, said Mr Tran.
Given that the bank already owned a significant play, the OCBC provide, on the other hand, is unlikely to significantly affect the business of Great Eastern.
Mr. Yuen claimed Income Insurance may use Allianz’s wealth to expand its line of products and increase its market share by tapping its asset management features.
Ultimately, however, the scenery is likely to be largely intact in the short-term.
According to Mr. Yuen,” the insurance industry is still very localized ( and ) depends on the trust you have maintained with your customers in the past,”
Even if you have the backing of more funds needles like Allianz,” These are the stuff that probably will be very difficult to change.”
But, Professor Lawrence Loh of the National University of Singapore’s Business School claimed that the Allianz-Income package in particular was “give the rest of the players a run for their money,” with money benefiting from size and range.
Because of the fact that money may rest on a global huge,” I believe there will be some reshuffle among the leaders.”
The United States plans to expand a Cold War-era rule to stop China from obtaining restricted chip-making tools and high-end chips from places including Israel, Singapore, Malaysia and Taiwan.
The Biden administration is set to expand the coverage of its Foreign Direct Product Rule (FDPR), which was first introduced in 1959 to control the trading of US technologies, by the end of this month, Reuters reported on Wednesday (July 31).
However, the United States’ allies, including Japan, the Netherlands and South Korea, all key producers and suppliers of chip-manufacturing tools, will not be affected by the change, the same report said.
The Biden administration may also use the FDPR to stop China from getting high-bandwidth memory (HBM) chips made by SK Hynix and Samsung Electronics and equipment capable of making those chips, Bloomberg reported, citing named sources.
The report said the new FDPR, if enacted, would block the shipment of the HBM2 and more advanced chips including the HBM3 and HBM3E, all of which can be used as artificial intelligence (AI) accelerators.
It said US-based Micron Technology also produces HBM chips but it will not be affected by the new rule as the company has refrained from selling its HBM products to China after its memory chips were banned from being used in the country’s critical infrastructure in 2023.
“Containing and going after China will not stop China’s development, but will only make China even more determined and capable in boosting our own strength in technology and innovation,” Lin Jian, a Chinese foreign ministry spokesperson, said in a media briefing on Wednesday.
“We hope relevant countries will firmly resist the coercion and jointly uphold a fair and open international trade order to protect their own long-term interests,” he said.
Reuters also reported that the US plans to add about 120 entities to its restricted trade list. These entities include six chip foundries and their hardware and software suppliers.
In March this year, Bloomberg reported that Washington is considering blacklisting Hefei-based ChangXin Memory Technologies Inc (CXMT), which produces DRAM for use in computer servers and smart vehicles, as well as five other Chinese chip makers.
In June, Alan Estevez, chief of the US Commerce Department’s Bureau of Industry and Security (BIS), visited the Netherlands and Japan to press their governments to put more limits on the China shipments of ASML and Tokyo Electron Ltd, respectively.
Chinese commentators have mixed views on the intensifying chip war between China and the US.
“The strengthening US curbs against China showed that the US is worried that it will lag behind China in technological development,” Chen Fei, an associate professor at the School of Politics and International Studies, Central China Normal University, says in an article published on Thursday.
Chen says many Chinese companies are quickly developing their own AI models and related supply chains and have already in certain areas surpassed the US. He asserts the US wants to use sanctions and export controls to slow the growth of China’s AI development but its plan won’t succeed.
Wen Yizhai, a Henan-based columnist, says in an article that China must increase its efforts to achieve self-sufficiency in high-end chips as import channels can be blocked one day if the international situation suddenly changes.
”Why does China still have to spend more than US$300 billion to import semiconductors every year? It is because Chinese chip makers can’t compete with global chip giants in terms of product quality and production scale,” he says.
“Although Chinese firms keep improving, it’s unlikely that they can achieve significant breakthroughs in the short term.”
He points out that Chinese memory chip makers, including Yangtze Memory Technologies Co (YMTC) and CXMT, only have a combined 5% market share domestically as the sector is dominated by South Korea’s Samsung and SK Hynix.
In the first five months of this year, China’s imports of integrated circuits grew 13.2% year-on-year to $148.4 billion while imports of chip-making equipment rose 64.4% to $18.2 billion, according to China Customs data.
During the period, Japan’s exports of chip-making equipment to China increased 21.5% to $10.55 billion, representing 58% of the total amount of tools imported by China.
South Korea’s exports of chips to China surged 46.5% to $44.8 billion, accounting for 30% of China’s total chip imports.
Sources told Reuters that the BIS wants to close a FDPR loophole by lowering the amount of US content that determines when foreign items are subject to US control.
Since 2019, the Netherlands has stopped issuing licenses for ASML to export its extreme ultraviolet (EUV) lithography tools to China.
At the beginning of this year, the country also banned the export of two immersion deep ultraviolet (DUV) lithography machines, known as the NXT:2050i and NXT:2100i, to China.
In July 2023, Japan added 23 items of chip-making tools and materials to its export control list.
Due to these restrictions, Chinese foundries can only produce chips up to 7 nanometers, not the smaller ones used in more advanced applications.
The US also banned the exports of certain high-end AI chips, including Nvidia’s A100 chips, to China in two packages announced in October 2022 and 2023.
Media reports said Chinese chip makers are seeking to set up fabs in Singapore and Malaysia so they can use immersion DUV or even EUV lithography machines there. Some American chip makers also plan to make chips in Southeast Asia and sell them to China.
Now Washington is drafting a new chip export control package that could undercut those plans. With the FDPR, the BIS can regulate the re-export and transfer of foreign-made items if their production involves certain American technology, software or equipment.
The BIS can strengthen the FDPR by defining certain technology, software and equipment as subject to the Export Administration Regulations (EAR). For some years, the BIS has been using the FDPR to stop Chinese tech giant Huawei from obtaining high-end chips overseas.
Read: US targets Hong Kong chip transshipments to Russia
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