Semiconductor giant Intel has reached a tentative agreement with Taiwan’s TSMC and some U.S. firms to create a joint venture that would assume operating responsibility for Intel’s chip fabrication plants here. TSMC will reportedly hold a 20 percent stake in the JV, while Intel and the other investors would control the remaining 80 percent. This specific JV is limited to Intel’s foundry unit, which posted a 2024 operating loss of $13.4 billion in 2024 and is not expected to break even until 2027. New Intel CEO Lip-Bu Tan said at last week’s Intel Vision conference that he will spin off all non-core units. Continue reading TSMC Reportedly Ready for Joint Venture with Intel Foundries

Japanese tech investment firm Softbank has agreed to acquire Silicon Valley chip startup Ampere for $6.5 billion, indicating that technology originating in smartphones will eventually become integral to global data centers and the future of artificial intelligence. The eight-year-old Ampere sells chips based on Arm technology, the processor type used in virtually all mobile phones. SoftBank purchased Arm in 2016 and has since been working to ensure the technology becomes used more broadly. Softbank says it will allow Ampere to retain its own name, operating it as a wholly-owned subsidiary. Continue reading Softbank Agrees to Acquire Chipmaker Ampere for $6.5 Billion

Meta Platforms has reportedly begun “a small deployment” of its first in-house chip designed for AI training. The accelerator chip is engineered around the open-standard RISC-V architecture. TSMC produced the working samples now being tested. The goal is to create purpose-specific chips that are more efficient than Nvidia’s general purpose GPUs, enjoying the cost-savings that would come with wide use and reducing reliance on outside chip suppliers in a tight market. If the tests go well, Meta plans to scale up production for expanded use by 2026. Details of the new chip’s specifications remain unknown at this time. Continue reading Meta Tests New AI Accelerator Chip Designed with Broadcom

Taiwan semiconductor firm TSMC, the world’s largest chipmaker, has vowed to add another $100 billion to its existing $65 billion plan to expand its U.S. manufacturing base. The total allocation — $165 billion over the next four years — sees TSMC further building out its advanced semiconductor fabrication complex in Phoenix, Arizona, which has been producing at volume since late 2024. The expansion plays a key role in strengthening the U.S. computer ecosystem by increasing U.S. production of advanced semiconductors, TSMC says, adding that it will “complete the domestic AI supply chain” with advanced packaging investments. Continue reading TSMC Will Boost Its Factory Build-Out in U.S. by $100 Billion

Alphabet asked a question: “Could we harness the speed of light to deliver data without the need for cables?” The answer, compiled over 7 years, is that it can deliver fast, affordable Internet connectivity by transmitting high-speed data using beams of light through the air using the company’s new Taara chip. Whereas the first-generation technology, the Taara Lightbridge, relied on a system of mirrors, sensors and hardware to steer light physically, the Taara chip uses software to steer, track, and correct the beam of light without bulky moving parts — or a fiber optic wire. Continue reading New Alphabet Chip Delivers Internet Through Air Using Light

Amazon has unveiled a prototype quantum chip called Ocelot. The first-generation processor has what is being called “rudimentary computing capability” but is progress on a path toward a more sophisticated machine. Ocelot represents what the company says is its “effort to develop, from the ground up, a hardware implementation of quantum error correction that is both resource efficient and scalable” with an aim of reducing error correction by up to 90 percent. Developed at the AWS Center for Quantum Computing at the California Institute of Technology, Ocelot can be manufactured using microelectronics techniques, Amazon says. Continue reading New Amazon Chip Created for Scalable Quantum Computing

Nvidia delivered stellar earnings again, with profit up 80 percent to $22.09 billion for fiscal Q4, the period that ended January 26, 2025. Record quarterly revenue hit $39.3 billion, a 12 percent uptick from Q3 and a 78 percent increase year-over-year, driven in part by sales of the company’s Blackwell AI chips. The results rebut predictions that the leading-edge chipmaker would suffer due to a recent wave of Chinese AI models created using fewer and largely older chips. That trend rocked Nvidia stock over the past quarter, but the Silicon Valley-based company managed to maintain momentum. Continue reading New Blackwell AI Chip Helps Boost Nvidia to Record Quarter

Apple unveiled a big “made in the USA” initiative, with plans to spend more than $500 billion on U.S. factories over the next four years. The company will upgrade operations in California, Arizona, Nevada, Washington, Oregon, Iowa, Michigan, North Carolina and Texas, adding a new server facility in Houston. The move comes as U.S. international relations enter a period of flux. Apple’s plans include opening “a manufacturing academy” and accelerated investments in educating stateside workers in AI and silicon engineering. “We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments,” Apple CEO Tim Cook said. Continue reading Apple Will Invest $500B in U.S. Manufacturing and Education

Microsoft has created a quantum computing chip, Majorana 1, that relies on what it says is a “new state of matter” — one that exists beyond the primary liquid, solid, gas states that have underpinned science since Ancient Greece. Research into this fourth physical existence, called a “topological state,” earned three theoretical physicists the Nobel Prize in Physics in October. Unlike solids, liquids or gases, a topological state is not defined locally by how its particles are arranged, but by how their quantum wavefunction behaves — wrapping around itself globally, across the entire material. Continue reading Microsoft Calls New Topoconductor a Quantum Breakthrough

OpenAI is getting close to finalizing its first custom chip design, according to an exclusive report from Reuters that emphasizes the Microsoft-backed AI giant’s goal of reducing its dependency on Nvidia chips. The blueprint for the first-generation OpenAI chip could be finalized as soon as the next few months and sent to Taiwan’s TSMC for fabrication, which will take about six months — “unless OpenAI pays substantially more for expedited manufacturing” — according to the report. Even by usual standards, the training-focused chip is already on a fast track to deployment. Continue reading OpenAI In-House Chip Could Be Ready for Testing This Year

CES’s Eureka Park is a section of exhibits where startups and early-stage products from all over the world solicit feedback and explore opportunities. From this year’s Italian delegates at Eureka Park, our team found EYE2DRIVE, a semiconductor company that develops CMOS chips for digital imaging inspired by the human eye. Their image sensors use AI to mimic the human eye’s ability to adapt its response to changing environmental light conditions. As a result, quality and color of the captured image remains unaffected. While currently focusing on autonomous navigation applications, the tech has potential for media production as well. Continue reading CES: Image Sensors Adapt to Light Changes Like Human Eye

Ayar Labs, which develops optical interconnect chips for large-scale AI workloads, has secured $155 million in financing, including from competing processor companies Nvidia, Intel and AMD. Founded in 2017, the Silicon Valley-based company is pursuing a different processing path — combining photonic elements with electronic circuits on each chip for what it says provides faster, more efficient processing for artificial intelligence and high-performance computing. “This brings the company’s total funding to $370 million and raises the company’s valuation to above $1 billion,” Ayar notes, adding that the new funding allows the company to scale its optical I/O tech. Continue reading Nvidia, Intel and AMD Invest in AI Chiplet Developer Ayar Labs

Amazon Web Services is building a supercomputer in collaboration with Anthropic, the AI startup in which the e-commerce giant has an $8 billion minority stake. Hundreds of thousands of AWS’s flagship Trainium chips will be amassed in an “Ultracluster” that when it is completed in 2025 will be one of the largest supercomputers in the world for model training, Amazon says. The company announced the general availability of AWS Trainium2-powered Amazon Elastic Compute Cloud (EC2) virtual servers as well as Trn2 UltraServers designed to train and deploy AI models and teased next-generation Trainium3 chips. Continue reading AWS Building Trainium-Powered Supercomputer with Anthropic

Nvidia sales were up 94 percent to $35 billion in the most recent quarter when profits more than doubled, to $19.3 billion, telegraphing the strength of the artificial intelligence boom that took the company from the top supplier of graphics boards for gaming PCs to the world’s most valuable public company with a market cap of $3.59 trillion. Nvidia founder and CEO Jensen Huang told analysts that demand for the company’s latest AI chip, Blackwell, has been “incredible,” driving projections of $3.59 trillion in revenue for the current quarter as customers begin to take shipments. Continue reading AI Boom Boosts Nvidia Sales by 94 Percent as Profits Double

Microsoft has two new chips designed for data centers. The Azure Boost DPU is Microsoft’s first data-specific chip, or data processing unit, and is designed to work with high efficiency and low power. Microsoft anticipates DPU-equipped Azure servers will be able to run storage workloads at four times the performance of those currently in place while reducing power consumption by three times. The Azure Integrated Hardware Security Module (HSM) chip allows cryptographic security keys and encryption keys to be contained in secure modules “without compromising performance or increasing latency.” Continue reading Microsoft Debuts Two New Chips Optimized for Data Centers