Newsletter #25: China is Catching Up Fast in the AI Race

📢 Welcome to the latest edition of yieldWerx Insights

Here's what we cover in this edition:

1) Nvidia CEO: China Is Not Behind in AI Race

2) SIA backs U.S. legislation to boost chip manufacturing credit

3) Nvidia to manufacture AI supercomputers on U.S. soil

4) Alibaba Debuts Qwen 3 AI model

5) China unveils its first high-performance RISC-V server chip

6) New sensor tech enables remote monitoring of gene expression

7) Adani Group pauses semiconductor venture with Tower Semiconductor

8) EU's Semiconductor Strategy Faces Harsh Critique from Auditors

Nvidia CEO: China Is Not Behind in AI Race

Nvidia CEO Jensen Huang dismissed the notion that China is lagging in AI, stating that the country is “very close” to the U.S., particularly in hardware. He highlighted Huawei’s advancements in AI chips and warned that U.S. export restrictions on Nvidia's H20 processors might inadvertently help Chinese companies close the gap faster.

He has once again called the U.S. government to revise the previous administration's AI processors export restrictions, arguing that these regulations hinder American companies from fully participating in global markets.

Huang also noted that AI infrastructure isn’t just about chips—it depends on strong energy policies and industrial strategy. His remarks underline how critical government support is for maintaining technological leadership in AI. Nvidia’s global role puts it at the center of a growing geopolitical tech rivalry.

SIA Backs U.S. Legislation to Boost Chip Manufacturing Credit

The Semiconductor Industry Association SIA endorsed new bipartisan legislation aimed at expanding and extending the Advanced Manufacturing Investment Credit. The House legislative bill seeks to make more U.S.-based semiconductor manufacturing activities eligible for the credit, including assembly, testing, and advanced packaging—critical stages in chip production.

It also proposes an increased credit rate and longer duration, offering more stability to attract investment. SIA argues this legislation is vital for achieving CHIPS Act goals, enhancing national security, and reducing dependency on foreign supply chains.

Nvidia to Manufacture AI Supercomputers on U.S. Soil

In a major shift, NVIDIA announced that it will begin manufacturing its AI supercomputers entirely in the United States. The initiative, involving partners like TSMC and Foxconn, will produce Blackwell chips in Arizona and assemble systems in Texas.

This move aligns with the U.S. government’s push to bring more advanced tech manufacturing stateside. Nvidia’s decision is expected to create up to 100,000 high-tech jobs and strengthen domestic AI infrastructure.

Alibaba Debuts Qwen 3: A Major Leap in Open-Source AI

Alibaba has launched Qwen 3, its most advanced open-source large language model to date, positioning it as a key player in the AI race alongside OpenAI and Google. Qwen 3 is trained on a massive 36 trillion tokens, supports 119 languages, and incorporates hybrid reasoning abilities across text, vision, and audio inputs. The model is also optimized for enterprise deployment through Alibaba’s cloud services. It’s a significant step for China’s open-source community and domestic AI strategy.

China Unveils Its First High-Performance RISC-V Server Chip

In a significant milestone for semiconductor independence, Chinese startup RIVAI introduced the “Lingyu” chip—China’s first fully self-developed, high-performance RISC-V server processor. Built on a 12-core architecture, Lingyu delivers top-tier performance while remaining energy efficient, and supports AI tasks including large language model inference.

New Sensor Tech Enables Remote Monitoring of Gene Expression

Scientists have developed a cutting-edge biosensing technology that can remotely monitor gene expression in living organisms from up to 90 meters away. Using synthetic biology, they created hyperspectral reporters (HSRs) that emit unique light signals during specific genetic activities. These can be detected using hyperspectral cameras on drones or aircraft, enabling real-time, non-invasive biological monitoring over large areas.

This innovation holds enormous potential for environmental science, agriculture, and precision health. It represents a new convergence of synthetic biology, optics, and aerial sensing—ushering in a future where living systems can be observed and analyzed at scale without disruption.

EU's Semiconductor Strategy Faces Harsh Critique from Auditors

The European Court of Auditors has issued a critical report on the EU's ambition to produce 20% of the world's semiconductors by 2030, labelling the goal as "deeply disconnected from reality." The auditors highlight fragmented investments, insufficient financial coordination, and a lack of cohesive strategy as major obstacles.

Despite the 2022 Chips Act aiming to bolster domestic chip production, the EU's efforts are overshadowed by significant investments from global players like TSMC and Samsung. The report warns that without substantial changes, the EU's semiconductor aspirations may remain unfulfilled, leaving the bloc vulnerable to supply chain disruptions.

"There are a limited amount of players who receive a lot of funding, which means if one project drops, it has a huge impact on the targets," said Annemie Turtelboom, who is in charge of the ECA audit.

Adani Group Pauses $10 Billion Semiconductor Venture with Tower Semiconductor

Indian conglomerate Adani Group has halted discussions with Israel's Tower Semiconductor Semiconductor regarding a planned $10 billion chip manufacturing project in Maharashtra. The decision follows internal evaluations citing uncertainties about domestic demand and concerns over Tower's limited financial commitment. While Tower was expected to provide technological expertise, Adani sought a more substantial investment from its partner.

This pause marks another setback for India's semiconductor ambitions, following the collapse of the Vedanta-Foxconn joint venture in 2023. Despite these challenges, other projects by Tata Group and Micron are still underway, aiming to establish India as a significant player in the global semiconductor industry.

KLARF File Format: Enhancing Semiconductor Yield Analysis with yieldWerx

KLARF (KLA-Tencor Advanced Results File) is a specialized file format used in the semiconductor industry to store detailed data from wafer inspection and metrology systems.

These files contain critical information such as defect locations, types, sizes, inspection conditions, and metrology measurements, enabling engineers to analyze defects across various manufacturing stages.

In this regard, manufacturers face challenges like manual data handling and inconsistent defect classification. yieldWerx Semiconductor addresses these issues by automating KLARF data ingestion, providing centralized data management with advanced visualization, intelligent defect classification, and automated reporting.

Read our blog post to know the details.

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