Organizations and governments worldwide, including Japan, face the dual challenge of mitigating risks and embracing the rapid advancements in AI. This involves managing uncertainties while also accelerating innovation and adoption to reap the benefits of this transformative technology.

Japan’s unique position in AI

Although Japan is known for its cautious approach to risk, it is also renowned for its innovative contributions to technology, particularly in smart robotics and automotive AI. However, reports suggest that Japan’s prowess in AI-powered hardware does not equally extend to its software capabilities, making it reliant on foreign large language models for generative AI.

Japan faces unique AI development and adoption hurdles, including limited data availability and cultural attitudes towards business risk. These factors complicate the integration of AI technologies within traditional business frameworks.

A recent study by Barracuda, titled ‘SMB cyber resilience in Japan: Navigating through doubt to an AI-powered future,’ examines AI’s impact on small to medium-sized businesses (SMBs) in Japan. It reveals a mix of optimism about AI’s benefits and concerns about security, knowledge, and skill gaps.

The research underscores general optimism among smaller Japanese organizations about the positive effects of AI on business operations. The majority of these businesses anticipate that adopting AI solutions will lead to workforce reductions over the next two years—66% foresee fewer full-time employees, and 70% expect to rely less on freelancers and contractors. This trend is expected to lower costs and reduce the human resource demands on companies, though it also highlights a precarious future for workers in roles vulnerable to automation.

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In addition to cost reduction, businesses expect AI to enhance operational efficiencies across various functions, including marketing and customer relations. Approximately 67% predict that AI tools will produce over half of their content soon, and 60% believe AI will become the primary interaction point for customers. Moreover, thanks to AI, 76% anticipate quicker and more accurate customer insights.

Strengthening cybersecurity through AI

On a broader scale, 65% of respondents are confident that AI tools can streamline their cybersecurity needs, reducing reliance on human security teams or third-party services. Given Japan’s acute shortage of cybersecurity professionals, integrating AI for automated threat detection and response is seen as essential for enhancing security across all business sizes.

Most organizations recognize the need for external assistance to fully leverage AI for business benefits. A significant majority of businesses surveyed—76%—indicate the necessity of partners for researching and exploring AI. The same proportion (77%) seek help with implementing AI solutions and managing these technologies on an ongoing basis. Security vendors and managed service providers in Japan are well-positioned to help smaller businesses exploit AI’s advantages.

The release of ChatGPT by OpenAI in November 2022 showcased the capabilities of generative AI tools in creating natural, engaging dialogues. Despite widespread attention, businesses exhibit cautious engagement with generative AI. Awareness does not equate to comprehensive understanding; 56% grasp the distinctions between generative AI and other AI types like machine learning, while 44% admit to limited or no understanding. Consequently, many Japanese companies impose restrictions on AI use due to potential risks.

Approximately 69% of businesses perceive risks with workplace generative AI usage. While 18% permit its use—6% broadly and 12% in limited team settings—62% do not officially sanction it, suggesting covert use that may heighten security risks. Concerns also include data protection (57% of respondents), the absence of regulatory frameworks (47%), and opaque AI decision processes (31%). Additionally, 13% fear AI systems being compromised by cyber attackers.

Risks of using generative AI (Source – Barracuda)

AI and cyber threat evolution

There’s notable uncertainty about AI’s role in evolving cyber threats. About 55% of businesses are unsure how AI could be utilized in email attacks, with similar uncertainty extending to denial-of-service (62%), malware (57%), API attacks (56%), and cyber espionage (55%).

Despite these uncertainties, email threats remain a prominent concern for Japanese small businesses, with 53% highlighting account takeover attacks as a top threat. This form of identity theft allows attackers to misuse accounts, potentially leading to phishing scams, data theft, and more. Other significant threats include phishing and social engineering (37%), with ransomware also critical (39% reported it as a top concern, predominantly initiated via email).

Cyber threats concerning businesses in Japan (Source – Barracuda)

Survey participants generally understand the role of AI in fortifying cyber defenses, especially in areas like email security and employee cybersecurity training. However, there’s some ambiguity about AI’s effectiveness in other domains, possibly due to these areas being less familiar to smaller enterprises.

When asked which AI-enhanced security measures would improve their organizational safety, 36% pointed to AI-enhanced email security, especially against sophisticated threats like deepfakes. Another 24% believed AI could support more tailored, frequent training programs. The benefits of AI in continuous threat intelligence and response, as performed by Security Operations Centers (SOCs), were not as clearly understood.

The survey reveals a deficiency in AI-specific practices and policies needed for responsible AI usage. While 52% of businesses conduct employee training on AI use and vulnerabilities, only 35% have formal policies dictating AI usage. Even fewer have comprehensive governance structures in place, such as legal frameworks. This indicates a lack of control and management over AI applications within businesses.

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The latest ICS2 Cybersecurity Workforce Study shows that Japan has nearly half a million cybersecurity professionals, a notable 23.8% increase from the previous year, contrasting with a global average of 8.7%. Despite this growth, the demand far exceeds supply, with a shortage of 110,254 professionals, marking a 97.6% increase year-over-year — significantly higher than the global average of 12.6%. This gap is unprecedented compared to other nations evaluated in the ICS2 study.

This macro perspective mirrors smaller businesses’ daily challenges, particularly with AI-driven cyber threats.

Makoto Suzuki, Regional Sales Director for Japan at Barracuda, highlights the survey’s findings: Japanese SMBs recognize AI’s benefits for enhancing business productivity but remain cautious about the cyber threats it poses. Suzuki notes, “This could hold businesses back from harnessing the full potential of AI to revolutionize business performance and competitiveness by optimizing processes, reducing costs, improving quality, and providing new insights and ideas.”

The post How Japan balances AI-driven opportunities with cybersecurity needs appeared first on Tech Wire Asia.

From Microsoft splitting Teams from its Office Suite to Google potentially acquiring HubSpot, a lot is happening between these two tech giants.

Both companies continuously explore avenues to enrich customer engagement and streamline operational processes. This quest for enhanced connectivity and understanding of the consumer landscape is where integrating with, or in Google’s case, acquiring Customer Relationship Management (CRM) platforms like the online marketing software company HubSpot becomes a strategic imperative.

Companies like Google can leverage sophisticated analytics, personalized marketing tools, and comprehensive project management solutions by considering the incorporation or acquisition of the platform. The potential acquisition by Alphabet, Google’s parent company, of HubSpot—valued at US$35 billion, as exclusively reported by Reuters—underscores the importance of CRM systems in achieving these goals.

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Alphabet’s eye on HubSpot

Alphabet’s contemplation of making a bid for HubSpot emerges as a noteworthy move in the tech industry, particularly under the intensified regulatory gaze of President Joe Biden’s administration in the United States. This acquisition, if pursued, would mark a significant venture for a leading tech entity into high-value deal-making amidst regulatory scrutiny.

This potential deal could represent Alphabet’s most substantial acquisition to date, offering an opportunity to strategically employ its substantial cash reserves, which stood at US$110.9 billion at the end of the last year.

Recent discussions have taken place between Alphabet and investment bankers from Morgan Stanley regarding a possible bid for HubSpot. These talks have focused on the bid’s valuation and the likelihood of obtaining approval from antitrust regulators. However, Alphabet has yet to extend an offer to HubSpot, and the outcome remains uncertain, as noted by sources who wished to remain anonymous while sharing insights on these private considerations.

In response to inquiries about these discussions, a representative from HubSpot stated the company does not engage in speculation or rumors, emphasizing their ongoing commitment to their business and clientele. Requests for comments from Alphabet and Morgan Stanley have not received immediate responses.

Following the revelation of these discussions, HubSpot’s stock experienced an 11% increase to US$693, whereas Alphabet’s shares saw a slight decrease of 1%, pricing at US$153.34.

Since its public debut in 2014, HubSpot has carved a niche in providing marketing software to small and medium-sized enterprises. Despite reporting a net loss of US$176.3 million in 2023 from revenues of US$2.2 billion, the company’s growth potential has captivated investors, as evidenced by a 50% surge in its stock price over the past year.

Google Alphabet eyes HubSpot acquisition (Source – X)

The future of CRM: What this means for Google and HubSpot

Currently, the discussions about Google potentially acquiring HubSpot are speculative, with no confirmation regarding whether this collaboration will materialize. Should such an acquisition proceed, it represents a significant shift for both companies.

Integrating HubSpot’s CRM capabilities could provide Google with deeper insights into customer behavior and preferences, potentially enhancing its user engagement through the use of HubSpot’s analytics and marketing tools.

The acquisition would enable Google to broaden its portfolio, especially within the CRM space—a sector where it has not yet established a strong foothold. This expansion could open up access to new markets and customer segments, particularly targeting small to medium-sized businesses that predominantly use HubSpot.

Furthermore, Google’s cloud computing services could see substantial benefits from incorporating HubSpot’s CRM solutions, potentially improving Google’s position relative to competitors like Microsoft Azure and Amazon Web Services.

Positioning the acquisition as a competitive enhancement in the CRM and broader software market could assist Google in navigating the complexities of regulatory approval, presenting the deal as a countermeasure to the market dominance of entities like Salesforce and Microsoft.

Such an acquisition could also quicken Google’s growth within the burgeoning CRM market, offering a pathway to expand its market share and influence significantly.

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Regulatory scrutiny and market dynamics

This acquisition speculation comes at a time when Google faces multiple antitrust allegations, including a significant lawsuit challenging its dominance in online search. Alphabet CEO Sundar Pichai is exploring new growth avenues following a shortfall in advertising sales, as Google and YouTube vie for ad budgets against platforms like Facebook, Instagram, TikTok, and Amazon.com.

The technology sector is witnessing a resurgence in deal activity, exemplified by Synopsys’ agreement to acquire Ansys for around US$35 billion and Hewlett Packard Enterprise’s acquisition of Juniper Networks for US$14 billion. In the first quarter alone, technology mergers and acquisitions have surged over 42% year-on-year to approximately US$154 billion, as reported by Dealogic, highlighting the sector’s dynamism.

Overall, Google acquiring HubSpot could mark a pivotal development, potentially creating new synergies between their technologies and market strategies. This development could offer both companies opportunities for growth and innovation within the dynamic landscape of CRM technology.

The post Google parent Alphabet eyes HubSpot: A potential acquisition shaping the future of CRM appeared first on Tech Wire Asia.

Last year, the European Commission took a significant step by launching a comprehensive investigation into Microsoft’s practice of integrating its Teams application with the Microsoft 365 and Office 365 suites, targeting the business sector specifically. Microsoft, recognizing the importance of this inquiry, committed to fully cooperating with the Commission and expressed its determination to find solutions that would mitigate any regulatory concerns.

In a notable development reported by Reuters, Microsoft announced its decision to offer its Teams application globally—a chat and video conferencing tool—separately from its Office suite. This strategic move, coming six months after these products were decoupled in Europe, was designed to preemptively address potential EU antitrust penalties.

The strategic response from Microsoft to offer Teams separately

The investigation by the European Commission was triggered by a 2020 complaint from Slack, a Salesforce-owned workspace messaging application. Since its integration into Office 365 in 2017 at no extra cost, and its replacement of Skype for Business, Teams experienced a rapid rise in popularity. This was particularly true for its video conferencing features during the pandemic. Competitors have contended that this bundling strategy unfairly advantages Microsoft. In response to these concerns, Microsoft initiated the separate sale of these products in the EU and Switzerland on October 1 of the preceding year.

In detailing the company’s revised strategy through a blog post, Nanna-Louise Linde, Vice President for European Government Affairs at Microsoft, introduced a new pricing model for unbundled products. This adjustment, offering a reduction of US$2.17 monthly or US$26.02 annually, aims at serving the core enterprise clientele in the EEA and Switzerland more effectively.

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Furthermore, Linde clarified that Teams would be accessible as a standalone offering, with a pricing set at US$5.42 per month or US$65.04 annually, catering to new enterprise clients. Those who previously integrated Teams into their suite have the flexibility to maintain their existing setup or transition to a Teams-excluded package.

Reiterating the company’s dedication to transparency and customer satisfaction, a Microsoft spokesperson conveyed the decision to extend the unbundling initiative worldwide. This adaptation, inspired by the European Commission’s feedback, is intended to offer multinational corporations enhanced flexibility in their licensing options across various regions.

Reflecting on Microsoft’s historical adjustments in response to antitrust challenges, particularly the lawsuit from the Justice Department in 1998, analysts like Rishi Jaluria from RBC Capital Markets point out that the current separation of Teams from Office marks a significant, though not unprecedented, shift in strategy. Despite these changes, the integration of Teams into business operations suggests that the immediate impact on the market might be limited.

Data from Sensor Tower indicates a consistent user base for the Teams mobile app, with monthly active users remaining steady at around 19 million in both the fourth quarter of 2023 and the first quarter of 2024. This stability suggests that the unbundling in Europe has not adversely affected the platform’s popularity.

Looking ahead: Licensing flexibility and pricing strategies

With the introduction of new commercial Microsoft 365 and Office 365 suites, excluding Teams for areas beyond the EEA and Switzerland, Microsoft is also presenting a standalone option for enterprise customers. Starting April 1, these offerings allow customers to continue their current licensing arrangements or explore the new, unbundled options. The pricing structure for Office suites without Teams ranges from US$7.75 to US$54.75, with the standalone Teams option priced at US$5.25, although variations may occur based on country and currency.

Despite proactive measures, Microsoft could still encounter EU antitrust challenges, with concerns arising over pricing strategies and the interoperability of competing messaging services with Office Web Applications. Analysts like Gil Luria from D.A. Davidson suggest that Microsoft’s forward-thinking approach may somewhat mitigate future regulatory scrutiny. Given Microsoft’s history of incurring 2.2 billion euros in EU antitrust fines over the last decade for similar bundling practices, the company is keenly aware of the stakes involved.

J.P. Gownder, a Forrester VP and Principal Analyst, regards the unbundling of Teams as a strategic maneuver by Microsoft in anticipation of regulatory actions from the EU and possibly other regions. This strategy not only levels the competitive landscape by providing a choice to consumers but also simplifies the licensing landscape for multinational companies, which might face complexities under varying regional agreements.

Gownder also anticipates that pricing will emerge as a critical discussion point, with Microsoft potentially advocating for higher individual pricing for components formerly bundled, citing increased operational costs. This move could necessitate substantial marketing efforts to clearly communicate the value and structure of the unbundled offerings.

While Gownder foresees regulatory bodies potentially viewing any price increases critically, interpreting them as punitive measures against EU companies, he believes that the essential purchasing behaviors of enterprises, particularly outside the EU, are unlikely to be significantly altered. They may continue to favor bundled offerings, which are now enhanced by the addition of an unbundled option.

Gownder further speculates on the potential savings for organizations currently using Zoom, which might find financial benefits in dropping the Teams component for an unbundled SKU, though the exact financial implications will depend on the forthcoming pricing details. Zoom and Slack are poised to capitalize on this market shift, though the fundamental dynamics of the market are expected to remain largely unchanged.

The competitive landscape and potential beneficiaries

This strategic pivot could be an advantage for Zoom, which has faced challenges in competing with Microsoft’s comprehensive suite of communication tools. Slack, having been integrated into Salesforce and having previously lodged an antitrust complaint with the European Commission in 2020, has been particularly vocal about the need for such a separation, viewing the bundling of Teams with Office as competitively unfair.

Despite occasional preferences for Zoom, the integrated offering of Teams with Office 365 has consistently attracted customers. This trend was highlighted by CNBC, which pointed out Zoom’s slowing revenue growth from explosive rates in 2020 and 2021 to single digits in recent quarters. Mizuho analysts suggest that Teams’ unbundling could help mitigate some of Zoom’s challenges in retaining enterprise customers.

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Over the past year, Microsoft has reported nearly US$53 billion in revenue from its Office suite, including Teams, marking a 14% increase from 2022. The platform’s impact is undeniable, with Teams now boasting over 320 million active users monthly.

Salesforce’s acquisition of Slack in 2021 for US$27 billion, the company’s largest purchase to date, underscored the high stakes in the communication and collaboration tool market. Slack’s 2020 complaint to the European Commission against Microsoft’s practices highlighted ongoing competitive tensions, reminiscent of the ‘browser wars’ of the 1990s.

However, Slack’s stance towards Teams was more measured in 2019, with then-CEO Stewart Butterfield acknowledging the preference of many top customers for Slack over Teams, despite their use of Microsoft’s Office 365 suite.

Last year’s reports that Microsoft would allow companies to choose whether to include Teams in their productivity software subscriptions signaled a strategic shift intended to preclude further EU competition investigations. Subsequently, Microsoft began offering separate subscriptions for Teams and other productivity software across 31 European countries, aligning with the European Commission’s investigation into the bundling practices.

The post Microsoft splits Teams from Office Suite; who benefits? appeared first on Tech Wire Asia.

In recent years, Intel has embarked on a bold and transformative journey to reclaim its position as a leader in semiconductor technology. This ambition is embodied in the creation and expansion of its Foundry business division, a strategic pivot aimed at not only recapturing lost ground against rivals like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics but also establishing Intel as a pivotal player in the global chip manufacturing landscape.

Despite facing significant financial challenges, Intel’s leadership under CEO Patrick Gelsinger has laid out a comprehensive roadmap for resurgence and growth.

Intel’s strategic pivot in the semiconductor space

The operational challenges facing Intel’s Foundry business have been stark. In 2023, the division reported operating losses of US$7 billion, a notable increase from US$5.2 billion the year prior, alongside a 31% drop in revenue. These figures, reflective of the intense competition and rapid technological evolution in the semiconductor industry, have prompted a strategic reassessment at Intel, as noted by Reuters.

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Amid these financial headwinds, Intel has undertaken significant structural and strategic shifts. One of the most critical moves has been the separation of manufacturing costs from the broader product development expenses on the income statement, creating a distinct category for Intel Foundry. This accounting realignment aims to provide a clearer picture of the foundry’s performance and the impact of production costs on Intel’s overall financial health.

At the heart of Intel’s strategy is a deep commitment to technological innovation and excellence. The company has announced ambitious plans to introduce five semiconductor process nodes over four years, a rapid pace of development aimed at leapfrogging competitors. A key focus is the advanced 18A technology, positioned as Intel’s counter to TSMC’s 3-nanometer node. With strong demand and several customer commitments already in place, the 18A technology represents a significant bet on Intel’s future in chip manufacturing.

Intel’s pivot to extreme ultraviolet (EUV) chip manufacturing technologies marks another critical aspect of its strategy. After initial hesitations that contributed to operational losses and competitive disadvantages, the adoption of EUV technology is expected to dramatically improve cost efficiency and product performance. This shift addresses past missteps and positions Intel favorably in the “post-EUV era,” as CEO Gelsinger highlighted.

Despite the current challenges, Intel’s outlook is optimistic. The company has outlined a path to break even by 2027, driven by efficiencies from EUV technology, reduced reliance on external contract manufacturers, and a growing portfolio of customer commitments. Intel’s ambitious investment of US$100 billion in expanding U.S. chip manufacturing facilities underscores its commitment to recovery and long-term dominance in the foundry space.

Intel’s US$7 billion loss spurs semiconductor industry reinvention (Source – X)

Expanding manufacturing footprint with federal support

Regarding this investment strategy, Reuters reported that Intel is embarking on an expansive effort to construct and enhance factories across four states in the U.S., buoyed by US$19.5 billion in federal grants and loans. Furthermore, the company is pursuing US$25 billion in tax incentives.

The focal point of this five-year initiative is to transform sprawling fields near Columbus, Ohio, into the world’s most significant AI chip production facility by as early as 2027, as explained by CEO Pat Gelsinger.

This influx of federal support comes courtesy of the CHIPS Act, underscoring the U.S. government’s commitment to revitalizing domestic semiconductor manufacturing.

Intel’s expansive blueprint includes upgrades to New Mexico and Oregon facilities and broadening its footprint in Arizona. This move comes as TSMC is also escalating its presence in Arizona, encouraged by President Joe Biden’s efforts to reinvigorate advanced semiconductor production in the U.S.

The financial aid from the Biden administration’s strategy to foster a semiconductor manufacturing renaissance is crucial for Intel’s recovery. Once a leader in producing the most advanced and compact semiconductors, the company saw its dominance wane in the 2010s as it fell behind TSMC, resulting in reduced profit margins from lowered prices to maintain market share with fewer products.

In 2021, Gelsinger unveiled a strategy to reinstate Intel’s position at the forefront of semiconductor manufacturing, acknowledging the need for governmental support to ensure profitability.

With this governmental backing secured, Intel is set to channel about 30% of its US$100 billion investment into construction, covering labor, piping, and concrete expenses. The remainder will finance the acquisition of chip-making equipment from companies like ASML, Tokyo Electron, Applied Materials, and KLA.

This equipment is pivotal for activating the Ohio site between 2027 and 2028, although Gelsinger cautioned that this timeline might extend if the semiconductor market faces downturns. Despite relying on grants and loans, Intel aims to fund most equipment purchases through its existing cash reserves.

Gelsinger has voiced that additional U.S. financial support for chip factories is essential for reasserting the country’s semiconductor manufacturing leadership, a sentiment he reiterated recently.

Despite federal support, Intel faces pressure to promptly demonstrate its competitiveness against Taiwanese and Korean rivals, according to Ben Bajarin, CEO of Creative Strategies.

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Vision 2030: Intel’s Foundry ambition

The strategic realignment towards its Foundry business and aggressive technological advancements reflect Intel’s broader vision. By 2030, Intel aims to become the world’s second-largest foundry, boasting operating margins driven by innovation, cost-efficiency, and a robust client base. This vision is buoyed by the current lifetime value of contracts for the Foundry business, which stands at US$15 billion, and the anticipated benefits of transitioning to EUV manufacturing technologies.

Intel’s journey through financial turbulence and strategic shifts in its Foundry business division is a testament to its resilience and determination to regain its leadership in the semiconductor industry. Through technological innovation, strategic restructuring, and financial investment, Intel is not just aiming to navigate its current challenges but positioning itself for a future where it leads the next wave of semiconductor manufacturing.

As the industry continues to evolve rapidly, Intel’s efforts to redefine its operational and strategic paradigms will be closely watched by competitors and partners alike, marking a new chapter in the global semiconductor landscape.

The post Intel reinvents in semiconductor industry amid US$7 billion loss appeared first on Tech Wire Asia.

Incognito mode provides a semblance of privacy across widely-used web browsers, including Chrome, Safari, Firefox, and others. Marketed as a feature for browsing the web without saving your history on the device, it presents an illusion of complete privacy.

However, it’s commonly overlooked that, despite no record of activity being saved on the device, external entities — including website hosts, Internet Service Providers (ISPs), search engines, and various companies — can still monitor your online actions in incognito mode.

Legal spotlight: The Google incognito mode lawsuit

This oversight led to a lawsuit against Google for allegedly tracking users’ internet activity under the impression they were browsing privately. As a resolution, Google has agreed to either delete or anonymize billions of web browsing data records collected under its “Incognito mode”, as part of a class-action settlement proposal. This move follows allegations in a legal claim, suggesting that Google secretly monitored the internet activities of individuals who assumed privacy.

As reported by The Verge, the settlement of Brown v. Google necessitates that Google enhance its disclosure regarding data collection in Incognito mode and impose restrictions on future data gathering. Pending approval from a federal judge in California, this agreement could benefit approximately 136 million Google users who were implicated in the 2020 lawsuit. The lawsuit accused Google of illicitly tracking user activity via the private browsing feature.

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The settlement’s value, pegged at US$5 billion, reflects the significance of the data Google is compelled to delete or prevent from gathering, dating back to December 2023 and before. Data that isn’t deleted outright will be stripped of identifying information.

Plaintiffs have heralded the settlement as a milestone in holding the “world’s largest data collector” accountable, viewing it as a vital step towards bolstering internet privacy rights.

In response, Google’s spokesperson José Castañeda expressed satisfaction over reaching a settlement for what the company views as a baseless lawsuit. Despite the plaintiffs’ valuation of the settlement at US$5 billion—the sum initially sought in damages—Castañeda pointed out that the actual compensation to the plaintiffs is nil, emphasizing the settlement’s exclusion of damages for the class. However, it allows for individual damage claims.

Google agrees to delete incognito mode data collected (Source – X)

Castañeda further clarified that Google does not link data to users in Incognito mode, and the company is ready to eliminate older, non-personalized technical data.

The agreement also mandates Google to update its privacy disclosures, a process it has already initiated on Chrome. For the next five years, Google will enable users to block third-party cookies by default in Incognito mode, thereby preventing Google from tracking their activities on third-party sites. Despite the settlement, individuals still retain the right to pursue claims for damages in California state court, with 50 claims already filed.

What incognito really means

Alright, let’s delve deeper into the specifics of what “incognito” mode actually means. We touched on it briefly earlier, noting that when you conclude a session in incognito mode, the browser doesn’t retain cookies or any traces of your visit.

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Furthermore, incognito mode ensures that no data or search history from a specific session is saved on your device. This means that others who use your device can’t discover which sites you visited or what you searched for online.

To clarify, “incognito” implies concealing your identity. When you browse in incognito or private mode, you’re hiding your browsing activity from other users of the same device. However, it’s crucial to understand that your IP address and online actions are still observable to external parties.

In essence, private browsing shields your internet activities from the eyes of other users on your device, offering a layer of privacy from family and friends.

However, it’s crucial to recognize that Google Chrome’s incognito mode does not provide complete protection against tracking by websites or data collectors. As recent updates to disclaimers indicate, even in private browsing mode, websites can still accumulate data on your activities, including tracking by Google itself.

Furthermore, it’s significant to note that incognito mode may not conceal your activities from an employer or educational institution. So, if you’re trying to access websites discreetly at work or school, incognito mode might not offer the anonymity you seek.

Despite Google’s privacy policy stating that Incognito mode maintains privacy on your device, it doesn’t prevent Google from gathering data through other services, as detailed in their Privacy Policy.

Privacy vs. perception: The reality of digital anonymity

Though the concept of “incognito” suggests a level of anonymity, the reality does not fully align with the expectation of complete privacy. This gap between expectation and reality underscores a more significant issue in our digital society: the complex nature of online privacy and the oft-misunderstood mechanics behind it. Many users venture into incognito mode believing that it serves as a digital cloak, rendering their online activities invisible to all. Yet, this belief is a misconception that technology giants perhaps do not dispel clearly enough.

The truth is that incognito mode offers only a surface level of privacy protection, primarily against casual snooping on the same device. Contrary to popular belief, it is not a shield against the prying eyes of the broader internet ecosystem, including advertisers, websites, and internet service providers. This misunderstanding leads to a false sense of security, where users might engage in activities, thinking they are completely anonymous, only to leave digital footprints visible to a slew of online entities.

Moreover, the effectiveness of incognito mode—or the lack thereof—raises questions about the responsibility of tech companies in educating users about the scope of privacy their products actually offer. Is it enough to provide users with a tool that has limited privacy capabilities without making its limitations abundantly clear? This question becomes even more pertinent in light of the lawsuit against Google, suggesting a need for greater transparency and clearer communication from tech companies about what their privacy features can and cannot do.

The post Unveiling the reality of incognito mode from Google and online privacy appeared first on Tech Wire Asia.

Malaysia is no stranger to the cybersecurity landscape, having been involved in and targeted by a significant number of cyberattacks and data leaks. These incidents raise questions about the country’s readiness to face cyber threats within this evolving cybersecurity environment.

The 2024 Cybersecurity Readiness Index for Malaysia

In Cisco’s 2024 Cybersecurity Readiness Index, it is revealed that only two percent of organizations in Malaysia are classified at the ‘Mature’ level for readiness. This classification indicates robust resilience against the myriad of modern cybersecurity risks that today’s businesses face.

This critical assessment arrives at a time when hyperconnectivity defines our era, alongside a threat landscape that is rapidly evolving. Businesses are incessantly bombarded with sophisticated cyber threats, ranging from phishing and ransomware to supply chain attacks and social engineering tactics. Despite concerted efforts to fortify defenses against these onslaughts, many organizations are burdened by their complex security frameworks, which often consist of disparate point solutions.

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The complications of defending against cyber threats are further amplified in today’s distributed work environment, where organizational data is dispersed across an infinite array of services, devices, applications, and user interfaces.

Yet, despite these daunting challenges, a surprising 85% of companies profess a moderate to a high level of confidence in their cybersecurity defenses, despite their actual state of preparedness. This stark disparity between perceived confidence and actual readiness points to a potentially dangerous overestimation of their cybersecurity capabilities and a failure to accurately gauge the magnitude of the threats they face.

The 2024 Cisco Cybersecurity Readiness Index undertakes a comprehensive examination of organizational preparedness against cyber threats across five critical domains: Identity intelligence, network resilience, machine trustworthiness, cloud reinforcement, and AI fortification. These domains encompass 31 distinct solutions and capabilities, evaluated through a double-masked survey of more than 8,000 security and business leaders across the globe.

2% of organizations in Malaysia are classified at the ‘Mature’ level for readiness. (Source – Cisco)

The survey’s respondents were asked about their deployment of these cybersecurity measures, classifying them into four ascending stages of readiness: Beginner, Formative, Progressive, and Mature.

Jeetu Patel, Cisco’s Executive Vice President and General Manager of Security and Collaboration, cautions against the peril of overconfidence within the organizational psyche, advocating for a strategic shift towards integrated security platforms and leveraging AI to scale defense mechanisms effectively.

The findings from the study paint a grim picture of readiness among Malaysian companies, with a mere two percent poised to effectively counter contemporary cyber threats. A significant majority find themselves at the lower echelons of cybersecurity maturity, ill-prepared for the inevitabilities of the cyber threat landscape.

Forecasting cyber risks and financial implications

Moreover, the study forecasts a high likelihood of future cybersecurity incidents and sheds light on the financial ramifications of such breaches, with some incidents costing organizations upwards of US$300,000. The reliance on multiple cybersecurity point solutions has proven counterproductive, hampering the swift detection, response, and recovery from incidents. This issue is exacerbated by the admission from a vast majority that the cumbersome management of numerous point solutions slows their security operations.

The survey also highlights the pervasive issue of unmanaged device access, critical talent shortages, and the ambitious plans of organizations to significantly bolster their IT infrastructures and cybersecurity measures in the near term. This includes a notable emphasis on upgrading existing solutions, deploying new technologies, and a considerable increase in cybersecurity budgets.

Addressing the complex challenges posed by today’s threat landscape necessitates a concerted effort from companies to accelerate their investment in security infrastructure, adopt innovative security measures, and embrace a platform-based approach to cybersecurity. This strategy is essential for enhancing network resilience, making meaningful use of AI, and bridging the significant cybersecurity skills gap.

Hana Raja, Managing Director of Cisco Malaysia, underscores the complexity of the current cybersecurity environment, pointing out the lag in cyber resilience among organizations globally, including those in Malaysia. Raja advocates for a comprehensive platform approach to cybersecurity, which promises a simplified, secure, and holistic view of an organization’s security posture, enabling businesses to better navigate and exploit the advantages of emerging technologies amid the ever-evolving threat landscape.

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The first reading of the Cyber Security Bill 2024

Recognizing that only a small fraction of companies in Malaysia achieve a “Mature” status in cybersecurity preparedness, the Malaysian government acknowledges the critical need to bolster cybersecurity nationwide. Consequently, the Cyber Security Bill 2024 has been introduced, marking its initial reading in Parliament. Aimed at strengthening national cybersecurity, this legislative proposal was presented by Digital Minister Gobind Singh Deo on March 25th.

The Star reported that The bill is scheduled for a second reading during the ongoing session of the Dewan Rakyat and outlines a comprehensive approach to elevate cybersecurity standards. It mandates adherence to specific measures and standards for improved national security, detailing protocols for managing cybersecurity incidents that affect the country’s critical national information infrastructure.

Additionally, the legislation proposes the creation of a National Cyber Security Committee and defines the responsibilities and authority of the National Cyber Security Agency’s chief executive officer. It includes provisions for the licensing of cybersecurity service providers and establishes the role of a national critical information infrastructure sector lead.

According to the bill, the Digital Minister, following recommendations from the chief executive, may designate any government body or individual as the sector lead for national critical information infrastructure, potentially appointing multiple leads for various sectors. These appointments will be officially announced on the National Cyber Security Agency’s website.

The sector leads will be responsible for developing a code of practice and creating and updating guidelines on best practices for managing cybersecurity. The National Cyber Security Agency has stated that the proposed bill will legally empower it to define and enforce cybersecurity standards for entities deemed as National Critical Information Infrastructure. Failure to comply with these standards could result in legal repercussions.

The post Cybersecurity in Malaysia: A reality check on readiness and resilience appeared first on Tech Wire Asia.

The higher the ad viewability score, the more improved the campaign performance report will be, heightening the demand for the ad inventory. One of the industry’s best practices to maximize viewability. This is an imperative for both publishers and advertisers, is to capitalize on ad formats that will hold the viewer’s attention.

From a publisher’s perspective, optimizing viewable impressions for advertisers is crucial to bolster their confidence in online spending. Using the MRC definition of ad viewability, a study by Google concluded that viewable display ads across the Google Display Network had a 4X higher lift in conversions than display ads that didn’t meet the MRC standard.

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Disrupting the traditional ‘billboard’ format with tech

As technology continues to evolve in this space, Bonzai, The Creative Automation Platform trusted by publishers, agencies, and advertisers, today announces the launch of its latest offering—Fillboard, a premium digital ad format that can help advertisers capture and hold user attention without disturbing the experience of the site content. The new format also enhances viewability and user experience (UX) for ads served across desktop, tablet, and mobile devices.

The Bonzai team took a deep dive into ad format innovation, intent on surfacing a solution to the challenge that every publisher must tackle. Following the launch of Fillboard in H1 of 2024, there is now great excitement to see how publishers adopt this new ad format, which can positively influence ad revenues.

Ad Viewability with Bonzai (Source – Bonzai)

Innovation already snapped up by The Guardian

Ash Tanwar, Head of Ad Operations at The Guardian comments, “Our long-standing partnership with Bonzai has played a pivotal role in shaping our vision for a product geared towards enhancing ad effectiveness. Close collaboration with the team has culminated in an ad format that ensures heightened viewability for our readers, thanks to its ingenious cross-screen experience. With initial testing already proving to have promising results, this new product in market will undoubtedly excite our advertisers.”

Rahul Pandey, Founder and CEO at Bonzai

Rahul Pandey, Founder and CEO at Bonzai, highlighted the pivotal role of user attention in digital advertising. He said, “With a keen understanding of how the slightest boost in user attention can bring significant gains in ad awareness, Bonzai Fillboard was designed with care. We are offering a solution that helps avoid outdated intrusive methods, prioritizing contextual advertising that aligns with user intent. Moving away from formats that interrupt, cover site content or don’t work across devices, advertisers can now utilize Fillboard, a fresh way to connect with all their audiences and stand out in the crowded digital landscape.”

Bonzai Fillboard comes just months after the launch of their BrandStory,  another innovative, disruptive ad format with triple the ad space and 2.8 times greater time-in-view than single scroll ad formats. These innovative products are addressing the surging demand from brands worldwide, looking to drive real results from their advertising spend.

Headquartered in Singapore, Bonzai has been making significant strides across APAC, serving virtually every major publisher and thousands of advertisers with its ad-tech products. Bonzai can boast of partnering with multiple iconic brands from Westfield to Mercedes-Benz. Even the relatively smaller regional businesses have harnessed Bonzai’s display ad solutions to become more productive and agile in generating creative content and winning customers with relevant digital marketing.

Find out more about Bonzai Fillboard here.

About Bonzai:

Since its inception in 2013, Bonzai—The Creative Automation Platform has proven to be a pioneer cloud-based SaaS platform for automated production and programmatic management of digital display ad creatives. The self-serve platform has empowered media owners, brands, and designers to drive efficient and effective digital ad campaigns of high-quality standards with innovative ad-tech products.

Bonzai’s comprehensive solutions have simplified and streamlined the end-to-end display ad production process, from design to deployment, delivering brand engagement experiences at scale.

Having achieved benchmark success across APAC, Bonzai has established itself as the trusted ad automation partner for a wide range of clients, including renowned media companies such as NewsCorp, The Guardian, Stuff and Car Advice, and several direct-to-consumer brands.

Headquartered in Singapore, Bonzai also operates offices in key global locations, including Sydney, Australia and Pune, India.

Partner with Bonzai now, visit www.bonzai.co.

The post How Bonzai is disrupting the digital ad landscape with rapid innovation appeared first on Tech Wire Asia.

Elon Musk has declared that his artificial intelligence startup xAI will extend access to its chatbot Grok to all premium subscribers of the social media platform X. This announcement, made in a post on X, does not delve into further details but signifies a shift from the chatbot’s previous limitation to Premium+ subscribers. Amidst advertisers withdrawing from X, Musk is pivoting away from advertising revenue, focusing instead on enhancing subscription services.

In a move that critiques the profit-oriented use of technology by major tech firms such as Google, Musk plans to make Grok open-source. This follows his lawsuit against OpenAI, where he accuses the organization of straying from its non-profit roots towards profit-driven motives. By open-sourcing Grok, Musk aligns xAI with entities like Meta and France’s Mistral, which have also made their AI models publicly available, encouraging innovation and engagement from the wider community.

Elon Musk posted the availability of Grok for all premium subscribers (Source – X)

What’s going on with Elon Musk and the world of AI development?

Moreover, Musk’s legal confrontation with OpenAI, which he co-founded and eventually left, highlights his concerns about the ethical trajectory of AI development. Despite previously endorsing profit-focused strategies, including a merger proposal with Tesla, Musk’s latest initiatives and comments, especially at the AI Safety Summit in the UK, advocate for ethical AI development and the adoption of open-source principles, with the aim of developing a “maximum truth-seeking AI” at xAI.

This strategic direction not only challenges the methodologies of OpenAI and Google but also ignites a debate among technology leaders and investors about the implications of making AI technology open-source. While such transparency can foster innovation, there are concerns about its potential misuse, underscoring the balance between technological advancement and ethical considerations.

As reported by BBC, Elon Musk’s Neuralink has showcased its first patient, who, using a brain implant, controlled a computer cursor and played online chess. In a nine-minute live stream on X, viewers witnessed Noland Arbaugh, paralyzed below the shoulders due to a diving accident, using the device. Arbaugh, who received the chip in January, described the surgery as “super easy.”

A demonstration of the controlled a computer cursor and played online chess through the brain (Source – X)

Arbaugh also recounted playing the video game Civilization VI for eight hours straight, facilitated by the brain implant, though he mentioned encountering some issues with the technology. The Neuralink device, about the size of a one-pound coin, is designed to be inserted into the skull, with tiny wires that can read neuron activity and send wireless signals to a receiver.

Following trials in pigs and demonstrations of monkeys playing a basic version of Pong, the FDA approved Neuralink for human testing in May 2023. Neuralink is among a growing number of firms and academic departments pushing the boundaries of brain-computer interface (BCI) technology.

In a parallel development, the École Polytechnique Fédérale in Lausanne, Switzerland, enabled paralyzed individual Gert-Jan Oskam to walk by simply thinking about moving, using electronic implants on his brain and spine that wirelessly relay thoughts to his legs and feet, as reported in Nature.

BCIs aim to capture some of the electrical impulses generated by the brain’s approximately 86 billion neurons, which facilitate movement, sensation, and thought. These impulses can be detected by non-invasive caps or directly via implanted wires, drawing significant research investment.

Musk has boldly claimed that Neuralink’s technology can restore sight in monkeys, branding this technology as “Blindsight.” He envisions this technology, initially offering low-resolution vision akin to early video games, eventually surpassing human visual capabilities. He assures that the procedures have been safe for the animals involved.

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Neuralink’s advancements, including the “Telepathy” product enabling mind-controlled computer use, mark significant strides in the field. Following FDA approval for its first human trial, Neuralink released a video showing a quadriplegic patient playing chess through mind control, demonstrating the implant’s potential through 64 flexible threads that record and transmit brain signals.

Challenges and advances: Neuralink’s journey to human trials

According to Reuters, a U.S. health policy lawmaker has queried the FDA about its prior inspection of Neuralink, before approving it for human trials. This follows reports of issues discovered during inspections related to animal testing practices at Neuralink. These findings emerged shortly after Neuralink announced FDA clearance for human testing of its brain implants, which enable paralyzed individuals to control computers with their minds.

Representative Earl Blumenauer expressed concerns in a letter to the FDA about overlooked evidence from animal testing violations dating back to 2019. He questioned how the FDA reconciled these reports with its decision to authorize Neuralink’s human trials, amidst allegations of rushed experiments leading to unnecessary animal suffering and potential data integrity risks.

In response, the FDA indicated it would directly address Blumenauer’s inquiries, noting its post-approval inspection did not identify any significant safety concerns for the trial. Neuralink, having commenced human testing, recently demonstrated the implant’s capabilities in a live stream, highlighting the potential of brain-computer interfaces despite regulatory and ethical scrutiny.

This exploration into brain-computer interface technology, with companies like Synchron and Blackrock Neurotech also advancing in human trials, demonstrates the potential for patients to control digital interfaces solely through thought. The investigation into Neuralink’s regulatory approval underscores the critical balance between innovation in medical technology and the necessity of maintaining safety and ethical standards.

As the field progresses, the discussions around Neuralink’s practices and the FDA’s oversight reflect broader questions about the pace of technological advancement and the frameworks needed to ensure its responsible development.

The scrutiny faced by Neuralink, arising from concerns over its animal testing procedures and the subsequent approval for human trials, brings to light the challenges of pioneering medical devices within the rapidly evolving domain of brain-computer interfaces. It emphasizes the importance of rigorous regulatory processes that not only facilitate technological breakthroughs but also safeguard the welfare of both animal subjects and human participants.

The post Elon Musk takes AI and brain chips mainstream with Grok and Neuralink appeared first on Tech Wire Asia.

China finds itself at the heart of global scrutiny once more. Following its recent shift in tech policy, including the move to phase out AMD and Intel microprocessors in governmental applications, serious allegations have emerged from the U.S. and the UK. Authorities in these countries have leveled charges, imposed sanctions, and accused Beijing of orchestrating a vast cyberespionage campaign, reportedly affecting millions, including lawmakers, academics, journalists, and companies, notably in the defense sector.

Termed Advanced Persistent Threat 31, or “APT31,” this hacking ensemble is characterized by officials as a branch of China’s Ministry of State Security. A broad spectrum of individuals and entities has been identified as targets, encompassing White House personnel, U.S. senators, British legislators, and international officials critical of Beijing, as reported by Reuters.

Although specific victims have not been fully disclosed, it’s clear that over the past decade, these hackers have penetrated defense contractors, dissidents, and various sectors in the U.S., such as steel, energy, and apparel. They’ve also targeted leaders in 5G and wireless technology, extending even to the spouses of prominent U.S. officials and lawmakers.

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Deputy U.S. Attorney General Lisa Monaco stated that the operation aimed to stifle criticism of the Chinese regime, compromise government institutions, and steal trade secrets.

A recent indictment of seven alleged Chinese hackers has brought to light the magnitude of their operations, detailing breaches involving work accounts, personal emails, and more, impacting millions in the U.S. British officials have also highlighted APT31’s hacking of key UK lawmakers and have connected another group of Chinese spies to a significant breach of Britain’s electoral commission.

International reactions and repercussions on the “China hacking”

In response, Chinese officials in the UK and U.S. have dismissed these allegations as unfounded and slanderous.

Amidst these disclosures, the UK and U.S. have sanctioned individuals and entities believed to be linked to China’s state security apparatus and involved in these cyber operations.

This situation intensifies the already heightened tensions between Beijing and Washington over cybersecurity, with each side increasingly accusing the other of espionage. China has retorted with allegations of U.S. cyber intrusions into major Chinese corporations, such as Huawei Technologies.

One notable incident highlighted by U.S. prosecutors involved targeting staffers from a U.S. presidential campaign in 2020, corroborating Google’s reports of malicious emails sent to President Joe Biden’s campaign team, though no breach was confirmed.

The hacking of a significant American public opinion research firm in 2018, during the U.S. midterm elections, underscores the hackers’ strategic interest in political entities for their invaluable intelligence and data.

John Hultquist, chief analyst for U.S. cybersecurity intelligence firm Mandiant, has pointed out the substantial value political organizations offer to espionage efforts, underlining the critical insights and extensive data they provide to actors like APT31 in search of geopolitical intelligence.

The global stage of cyber warfare

The narrative has broadened beyond the initial U.S. and UK accusations against China regarding cyberespionage. The New Zealand government has also come forward, expressing its concerns to the Chinese government about a state-backed cyberattack on New Zealand’s parliament in 2021, discovered by the country’s intelligence services. This incident contributes to the intricate landscape of international cyber tensions.

This exposure of unauthorized access to New Zealand’s parliamentary systems through malicious cyber activities aligns with the allegations of cyberespionage by Britain and the U.S. against China. New Zealand and Australia have both denounced these extensive cyber operations.

New Zealand’s Foreign Minister, Winston Peters, has criticized such foreign interference as unacceptable. He highlighted that New Zealand has conveyed its concerns about cyber activities attributed to Chinese government-sponsored groups targeting democratic institutions in New Zealand and the UK to the Chinese ambassador.

The Chinese Embassy in New Zealand has not yet commented on these accusations.

We reject outright the groundless and irresponsible accusations against China on cyber attacks or intrusions, and have lodged serious démarches to New Zealand’s relevant authorities, expressing strong dissatisfaction and resolute opposition.

Cybersecurity is a global challenge.…

— Wang Xiaolong (@AmbChina2NZ) March 26, 2024

The New Zealand Communications Security Bureau (GCSB), in charge of cybersecurity and signals intelligence, has linked a state-sponsored Chinese entity, known as Advanced Persistent Threat 40 (APT40), to the malicious cyber activities against New Zealand’s parliamentary services and parliamentary counsel office in 2021. The GCSB associates APT40 with the Ministry of State Security, noting that while no sensitive or strategic information was compromised, the attackers extracted technical data, potentially enabling further intrusive activities.

According to the GCSB, a notable portion of the malicious cyber events targeting nationally significant organizations last year were traced back to state-sponsored actors, not exclusively China. The bureau also criticized similar cyber activities linked to Russia.

Judith Collins, the minister responsible for the GCSB, stated that cyberespionage efforts targeting democratic institutions are universally condemnable.

Towards a unified stance against cyber intrusions

This development follows charges, sanctions, and accusations by American and British officials against Beijing, accusing it of conducting a widespread cyberespionage campaign that allegedly affected millions globally, including lawmakers, academics, journalists, and businesses, such as defense contractors. The group behind these activities, identified as Advanced Persistent Threat 31 or “APT31,” is said to be an extension of China’s Ministry of State Security, with a broad list of global targets reported by officials from the two countries.

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A joint statement from Australia’s Foreign Minister Penny Wong and Home Affairs Minister Clare O’Neil criticized the continuous cyber targeting of democratic institutions, emphasizing the adverse impact on democratic and open societies like Australia. They stated that such behavior is unacceptable and must cease.

In 2019, Australian intelligence attributed a cyberattack on its national parliament and the country’s three largest political parties before the general election to China, though the Australian government has not officially confirmed the perpetrator.

Well, it looks like the cyber saga is thickening, with China in the hot seat for allegedly orchestrating a vast network of cyberespionage that spans continents. The U.S., UK, New Zealand, and Australia are ramping up their cybersecurity defenses and calling out China’s actions on the global stage. It’s a classic case of “your move, China,” as the international community tightens its ranks against these cyber intrusions.

But what does the future hold? Well, if history has taught us anything, it’s that with every action comes a reaction. China might double down on its cybersecurity measures and retaliate, or perhaps, just perhaps, this international spotlight could usher in a new era of cyber diplomacy. In a world where technology continues to blur the lines between the possible and the impossible, who’s to say what the future might hold? One thing’s for sure: the global dialogue on cybersecurity is heating up.

The post Global concerns rise over alleged cyber hacking activities linked to China appeared first on Tech Wire Asia.

The ongoing tension between China and the United States has escalated, with China implementing guidelines to phase out U.S. microprocessors in government computers and servers, including those from Intel and AMD. This initiative is part of Beijing’s broader strategy to replace foreign technology with domestic alternatives.

The Financial Times reports that this directive goes beyond hardware, targeting the replacement of Microsoft’s Windows operating system and foreign database software with local versions. This move is a reflection of China’s nationwide drive towards technological self-reliance, known as “xinchuang,” or IT application innovation.

China’s domestic focus and U.S. countermeasures

Amid increasing tensions, China’s latest procurement rules represent a substantial effort to cultivate domestic technological alternatives. These developments mirror actions in the U.S., where sanctions on Chinese companies for security reasons, legislation to enhance domestic tech production, and restrictions on advanced chip exports to China have intensified.

The rules, discreetly announced last December and effective this year, require government agencies and party organizations to prioritize “safe and reliable” technology for their IT purchases, focusing on domestically produced processors and operating systems.

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On the day the guidelines were introduced, China’s Information Technology Security Evaluation Center listed approved “safe and reliable” technologies, exclusively from Chinese sources, including processors from companies like Huawei and Phytium, which Washington blacklists. These processors utilize a mix of chip architectures, and the operating systems are derived from open-source Linux.

The shift towards domestic technology extends beyond the government sector. State-owned enterprises have been instructed to transition to local providers by 2027, which poses significant financial implications for U.S. tech giants like Intel, AMD, and Microsoft, all of which have substantial sales in China. The approval of their products in the future will require the sharing of detailed R&D documentation and evidence of significant local development.

China has started to block Intel and AMD chips in government computers (Source – X)

Local and provincial finance ministries are ensuring widespread compliance with the new guidelines, although some leeway remains for acquiring foreign technology. Nonetheless, the clear trend towards domestic technology is evident, with officials noting the necessity of additional justification for the purchase of foreign processors.

This inclination towards homegrown technology is anticipated to accelerate, particularly for server processors, due to the simpler transition of the software ecosystem, emphasizing China’s commitment to technological independence and the potential for a significant shift in global tech supply and demand dynamics.

What’s next for Intel and AMD?

The recent challenges faced by Intel and AMD, especially China’s initiative to eliminate U.S. microprocessors in favor of domestic options, emerge at a crucial time for both companies. For Intel, this unfolds as it embarks on an ambitious expansion in the United States, planning to create “the largest AI chip manufacturing site in the world” with a US$100 billion investment over five years.

Quartz has reported that Intel’s CEO, Pat Gelsinger, aims to establish a significant manufacturing site near Columbus, Ohio. This effort is part of a larger investment across four states, with potential construction starting as early as 2027. Supported by nearly $20 billion in federal funding and loans from the Biden administration’s CHIPS and Science Act, this initiative is designed to reinforce American semiconductor leadership.

The CHIPS and Science Act has allocated up to US$8.5 billion in direct funding for Intel, with eligibility for an additional US$11 billion in loans, to boost its semiconductor manufacturing presence in Arizona, New Mexico, Ohio, and Oregon.

During a recent event featuring President Joe Biden at Intel’s Arizona campus, Gelsinger underscored these investments’ national economic and security benefits. He highlighted the critical role of semiconductors in the digital transformation of society and argued that chip production is fundamental to the future of humanity.

Gelsinger also addressed the competitive dimension of these initiatives, emphasizing the importance of maintaining leadership in the semiconductor field, particularly in light of the U.S.-China chip rivalry and the rapid advancements in AI technology.

Despite the U.S.’s former dominance in semiconductor development, it now produces less than 10% of the world’s chips and is not involved in manufacturing the most advanced semiconductors.

Intel’s strategic investments are expected to generate approximately 80,000 jobs, including direct positions within the company, construction jobs, and indirect roles in supplier and related industries. Furthermore, Intel intends to take advantage of a tax credit from the U.S. Treasury Department, worth up to 25% on over US$100 billion in qualified investments.

This contrast between Intel’s aggressive U.S. expansion and the challenges posed by China’s new procurement policies outlines a complex scenario. For Intel, and by extension AMD, China’s move towards domestic technology could signify a considerable market loss.

However, Intel’s substantial investment in U.S. manufacturing and government support represents a strategic shift towards bolstering domestic semiconductor production. This is not merely an economic strategy but a measure of national security and technological sovereignty amidst global competition.

AMD’s innovative response in China

So, that’s what’s going on with Intel. However, AMD was also in the spotlight, as it was recently in China. AMD’s recent appearance in China, marked by the Ryzen AI PC Innovation Summit in Beijing, showcased the launch of the Ryzen 8040 series and 8000G desktop solutions tailored for the Chinese market.

The practice of AMD and Intel marking processors without onboard graphics with an “F” suffix, likely due to iGPU performance issues during manufacturing, presents a unique strategy. Instead of discarding these units, they are repurposed and sold at a lower price, appealing to PC enthusiasts who prioritize discrete graphics cards over integrated GPUs.

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Tom’s Hardware highlights that the Ryzen 7 8700F and Ryzen 5 8400F underscore AMD’s competitive strategy across various price points. This strategy ensures a comprehensive range of products, extending from the affordable Athlon 3000G to the Ryzen 5000 series, and now includes the Ryzen 8000 desktop APUs (without graphics), further expanding the options available to AM5 motherboard owners.

Although specifics for the Ryzen 7 8700F and Ryzen 5 8400F remain unknown (for now), it’s reasonable to infer they share similarities with the AMD Ryzen 8000G Series 65W Phoenix APUs, albeit without the iGPU. For instance, the Ryzen 7 8700G, with its 8-core/16-thread configuration based on the Zen 4 architecture, boasts boost speeds up to 5.1 GHz and a 65W TDP, alongside a powerful Radeon 780M GPU. The CPU specs for the F series are likely identical, with the notable absence of onboard graphics.

The lack of a Ryzen 5 8400G makes speculating about the Ryzen 5 8400F’s specifications challenging. However, it’s plausible that this new Ryzen 5 variant will feature a 6-core/12-thread (or possibly 6-core/6-thread) CPU configuration, adhering to the Zen 4 architecture but without integrated graphics.

It’s important to note that the Ryzen 7 8700F and Ryzen 5 8400F may be exclusive to the Chinese market, thereby circumventing speculation regarding their pricing relative to the G-suffixed counterparts. Although speculation from HXL suggests these products are intended solely for China, AMD’s region-specific offerings have historically found their way to international markets, as evidenced by the Radeon ‘Golden Rabbit Edition’ GPUs now available in Western retail settings.

This strategic maneuver by AMD, amidst Intel’s substantial investment in expanding U.S. semiconductor manufacturing, reflects the broader dynamics of global technology competition and adaptation. As both companies navigate the complexities of international markets and political tensions, their initiatives in China and the United States underline the intricate balance between local adaptation and global strategic positioning.

As China forges ahead with its plans for tech independence, the ripple effects are felt deeply by semiconductor heavyweights such as Intel and AMD. The unfolding scenario underscores a pivotal moment in the semiconductor sector, spotlighting the intricate dance between national ambitions and the interconnectedness of global technology ecosystems.

The post China’s new tech policies challenge Intel and AMD in a shifting landscape appeared first on Tech Wire Asia.