chips

June 2 (Asia Today) — Nvidia CEO Jensen Huang visited the SK hynix booth at Computex 2026 in Taipei on Tuesday, meeting SK Group Chairman Chey Tae-won for a second straight day as the companies deepen their artificial intelligence partnership.

Huang, who met privately with Chey on Monday, examined SK hynix’s major memory products and wrote “Please Make More” on an HBM4E wafer displayed at the booth.

Chey also signaled that SK plans to expand production. He said the group aims to double wafer production capacity within five years as demand for memory chips is expected to surge.

Huang toured the booth with Chey and SK hynix executives. He signed the HBM4E wafer with the message “Please Make More” and wrote “LOVE SOCAMM” on a 192GB SOCAMM product.

SK hynix currently supplies Nvidia with its latest high-bandwidth memory, including sixth-generation HBM4, as well as high-performance low-power LPDDR5X memory. Huang said in his GTC Taipei keynote Monday that Nvidia will begin full-scale production of its next-generation AI accelerator, Vera Rubin, in the second half of this year.

As AI demand increases and memory supply shortages deepen, Chey said SK is moving quickly to expand production.

“The memory bottleneck is expected to continue until 2030,” Chey told reporters at the SK hynix booth. “We are pushing forward at full speed to expand production capacity.”

“Building new memory fabs requires enormous investment and takes at least three years,” he said. “Despite these challenges, we plan to double wafer production capacity over the next five years.”

It was the first time SK Group publicly presented a specific goal of doubling its overall production capacity within five years. SK hynix is making large-scale investments to strengthen production capacity, including projects at its M15X and P&T7 facilities in Cheongju, the Yongin semiconductor cluster and an advanced packaging plant in the United States.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260602010000823

The rise of artificial intelligence (AI) and the move toward a green transition built on renewable energy are fundamentally restructuring the global economy. While unleashing unprecedented opportunities, these developments also provide new geopolitical weapons due to the unequal distribution of critical minerals, in particular rare earths, the advanced technology and expertise involved in manufacturing, and the omniscient and inexorable role of the resulting products like semiconductors and batteries for the operation of today’s technologised societies. Thus, countries like China and the United States (US) increasingly seek to safeguard national access to these crucial components and products. This weaponization has implications for global business interests, supply chains, technological development and existing geopolitical tensions in the Middle East and between the US and China.

Semiconductors—the new oil?

Semiconductors, or advanced chips, have been likened to the oil of the 21st century. Just as in the 20th century, oil formed the basis for global economic activity, semiconductors form crucial parts of everything from critical infrastructure like 5G data networks, military technology like missiles and AI data centers, to smartphones, fridges and electric vehicles. Indeed, the semiconductor market, growing rapidly since the launch of large language AI models in 2022, is projected to hold a value of $1 trillion by 2030. Hence, whoever controls the supply of semiconductors holds the power to bring rivaling economies to a standstill. This capability is reinforced by the fact that advanced microchips, and the rare earths contained in them, lack ready substitutes.

Assuredly, oil still offers geopolitical leverage—brought to the fore by the current energy crisis resulting from the closure of the Strait of Hormuz. Yet, semiconductors offer a more potent geopolitical weapon. For example, European sanctions on Russian oil and natural gas following the invasion of Ukraine in 2022 has been largely ineffective in crippling the oil-reliant Russian economy, as Russia has been able to find alternative supply routes like the Caspian Sea and alternative buyers such as India, Türkiye and China. By contrast, semiconductor supply chains are more concentrated due to differential geography, and economic, technological and intellectual capital. For example, Taiwan produces over 90% of the world’s advanced chips, while China controls 60% of global rare-earth production, and 90% of mineral refinement. Similarly, the US enjoys supremacy in semiconductor manufacturing equipment (SME) and expertise, while the Netherlands is the world’s sole producer of extreme ultraviolet lithography required to imprint circuits on semiconductors. Hence, the highly concentrated supply chains of semiconductors gives a handful of countries significant strategic leverage as countries are willing to go far to secure access to these crucial components.

Capitalising on critical mineral supply

This power is reinforced by the fact that the majority of the planet’s critical minerals—such as copper, cobalt and lithium—used in semiconductors and batteries are concentrated in developing countries in Africa and Latin America like Brazil, Chile and the Democratic Republic of Congo (DRC). Thus, the capital-intensity of mineral extraction has allowed major powers like the US and China to expand their influence over supply chains through massive investment in the mining industries of these regions. Hence, supply chains are further concentrated in the hands of a few states, enhancing the weaponisability of these resources. This is bolstered by the rarity and geographic disparity of these elements, meaning that countries cannot easily find substitutes or alternative suppliers for these critical resources, should the aforementioned mineral ‘gatekeepers’ choose to wield their strategic leverage and restrict supply.

Global business caught in the crossfire

This development subjects international business activity, especially within emerging technologies like AI, to geopolitical tensions. For example, the US introduced export controls in 2022, banning US semiconductor company Nvidia from exporting its advanced H2000 chips to China to protect US technological dominance. And Nvidia is not an isolated case—in the last few years, the amount of US companies on the Commerce Department’s Entity List restricting exports has quadrupled. In effect, US companies are losing global competitiveness and access to China—one of the biggest markets in the world. This effect might be hard to reverse. Although the Trump administration relaxed export restrictions in early 2026, no Nvidia chips had arrived in China by mid-May. Part of the reason is that China in response to US restrictions has built up its domestic production, and legally favored domestic chips producers like Huawei to reduce its strategic vulnerability to foreign powers. For similar reasons, China prevented US-based Meta in 2025 from buying up Manus, a Chinese-founded AI company. Thus, business interests are highly susceptible to the weaponisation of concentrated critical supply chains in the geopolitical rivalry between US and China.

Semiconductors—beyond oil

Hence, semiconductors and related products may not simply be the economic and strategic, 21st-century equivalent of 20th-century oil, but may indeed hold greater geopolitical leverage than oil ever did. While the US dominates global oil production, China does not have to import oil from its geopolitical rival at the expense of Chinese strategic power—despite China relying on imports for over 70% of its oil—as diversified global energy markets allow for alternative energy sources like coal and natural gas, and alternative suppliers like the UAE, Iran and Qatar. By contrast, China’s ability to manufacture the most advanced semiconductors without the currently unique US SME is highly limited, with Chinese semiconductor development 3 years behind the US. Consequently, China accounts for over half of the semiconductor exports of US-allied Taiwan.

Taiwan in the crossfire

This in turn increases the strategic importance of the Taiwan dispute. While China has long claimed Taiwan to be part of China, the US endorses Taiwanese independence. The importance of semiconductors has cemented this conflict, with China desiring reunification to gain control over global semiconductor manufacturing, while the US for the same reason favors Taiwanese independence from China to maintain US access to its semiconductor supply, in extension of current efforts to induce TSCM to offshore its production to the US, and reduce semiconductor exports to China. Similarly, China has leveraged its global dominance of refined rare earths and battery production by introducing export restrictions on batteries, refined critical minerals, and rare earths in response to US SME restrictions, exploiting the fact that the US has limited ability to employ its SME to manufacture semiconductors without these Chinese inputs. In response, the US and its allies are scrambling for alternative access to critical minerals by expanding trade partnerships with mining countries like the DRC, investment in battery-production, and by launching Project Vault, a $12-billion investment to create a national critical minerals reserve.

The weaponisation capacity of semiconductors has only begun. As countries are approaching the deadlines of net-zero emissions goals outlined in the Paris Agreement, increased dependency on renewable energy will increase susceptibility to global supply chains for batteries, rare earths and semiconductors for products like EVs, solar panels and energy storage.

It’s only 15 minutes from a major tourist city, but it couldn’t be more different.

When a heatwave arrives in the UK, you have to go to the beach – it’s an unspoken rule. There are so many beautiful spots to choose from, and if you like a bit of shopping and some great food alongside your sunbathing, one place should be on your radar.

It’s not far from a major capital city, but it has a completely different vibe. I first visited Portobello last year, and I’m astounded I didn’t make the trip sooner.

With a main street brimming with independent shops, the best chips you will ever eat, and great transport links, it’s genuinely a perfect spot if you’re keen to stray from the beaten track.

The bus ride from Edinburgh city centre lasted just 15 minutes, dropping us right in the heart of the town, and it was immediately obvious that this place was something special.

Predictably, our first stop was making straight for the seafront for a relaxed walk along the shoreline. The weather was wonderfully bright and crisp, and it was so refreshing after the hour-long train trip from Glasgow.

Portobello’s coastline extends for two miles, featuring a Victorian-era esplanade and sweeping views over the Firth of Forth. Since it was a sunny Sunday morning, the location was fairly bustling, with plenty of families out walking and dogs charging about on the beach.

The very first thing that caught my eye about the beach was how spotless it was. It’s plain to see that the residents of Portobello, or ‘Porty’ as it’s affectionately known, take enormous pride in their surroundings.

In 2024, Portobello was crowned the second-best coastal town in the UK by JoJo Maman Bebe, and its beach has also been recognised with a Keep Scotland Beautiful award.

After a relaxed walk along the shoreline and building up a hearty appetite, we decided it was time to find somewhere to eat. The seafront at Portobello beach is packed with a vast selection of dining options, from enormous pizza slices at Civerino’s to brunch and coffee at The Beach House.

Many of these offer al fresco seating, letting you dine virtually on the beach itself, and it was wonderful to see so many visitors taking full advantage of that. We decided to try Shrimp Wreck, a seafood outlet offering a small but tempting menu. This street food vendor appeared on BBC’s My Million Pound Menu and has built its reputation on fish finger sandwiches – even reaching the finals of the Birds Eye Fish Finger Sandwich Awards in 2017.

Unsurprisingly, that’s exactly what I went for, and it’s easy to understand the hype. Battered flaky fish fillets, mushy peas and the best chips I’ve ever had, all served in a soft roll, was perhaps the messiest meal I could have chosen, but I wouldn’t change a thing.

Afterwards, we properly ventured into the high street where our bus had dropped us off. It sits directly behind the seafront, and while it wasn’t quite as heaving as the beach, there were still plenty of folk wandering around – and crucially, a decent selection of shops open.

One highlight for me was The Portobello Bookshop, a charming independent bookshop packed with novels, cookbooks and loads more. The interior was bright, welcoming and comfortable, the kind of venue where you could happily spend hours browsing without getting bored.

They also run events, including Q+A’s with authors, so it’s worth looking at their schedule if you’re thinking of visiting.

Cove is another essential stop for anyone who loves gift shops. This place was crammed with every imaginable trinket, from Jellycat toys to candles and shampoo bars, plus gorgeous cards and irresistible chocolate treats as well.

Portobello’s high street might not be the biggest, but it’s undoubtedly one of the nicest I’ve seen. There are more food and drink spots here, alongside pubs and even an Aldi, so you’re hardly going to be short of choices.

One place we didn’t get round to visiting, which I’m keen to come back for, is the swim centre. Here in Portobello, you’ll find an authentic Victorian Turkish bath, one of just 11 in the UK, plus a gym and fitness studio, so this is definitely on the agenda for our next visit.

If you’ve never ventured to Portobello, it really is the perfect spot for a weekend break – even when it’s not sunny. Its closeness to the bustling city of Edinburgh makes it ideal if you’re wanting to flee the city rush and spend some time eating, drinking and relaxing by the sea.

Published on
04/05/2026 – 13:15 GMT+2

The major AI company Anthropic is exploring a potential partnership with the British semiconductor firm Fractile to secure a steady supply of chips for custom inference and reduce the significant overheads associated with current semiconductor solutions.

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According to reports, these talks represent a strategic effort by the San Francisco-based firm to decrease its dependency on Nvidia whilst enhancing the speed and efficiency of its current and next-generation models.

As the global demand for generative AI capacity continues to climb, the financial burden of the hardware required to run these systems has become a primary hurdle for developers.

Anthropic, which has received multi-billion-dollar investments from both Amazon and Google, currently relies heavily on Nvidia’s H100 units alongside custom processors provided by its cloud partners.

However, the high market price and limited availability of these industry-standard chips have squeezed profit margins, prompting firms to look elsewhere.

According to industry analysts, a deal with a specialised firm like Fractile could allow Anthropic to exert greater control over its technical infrastructure.

This strategy reflects a broader trend among tech giants, including Microsoft and Meta, who are increasingly moving away from general-purpose chips in favour of internal or boutique designs.

A shift in memory architecture and a boost for British technology

Founded in 2022 by Oxford PhD Walter Goodwin, Fractile has gained significant attention for its unconventional approach to processor design.

Unlike standard chips that must constantly shuttle data between the processor and separate memory modules, Fractile’s “memory-compute fusion” architecture keeps data directly on the chip using static random-access memory, or SRAM, which does not need to be refreshed.

According to the British start-up, this method can run large language models up to a hundred times faster than existing hardware while lowering operational costs by 90%.

While these performance claims are impressive, the technology is still in the development phase.

Fractile has not yet launched a commercial product, and its specialised chips are not expected to be ready for full-scale data centre deployment until 2027.

Despite the long timeline, the start-up is reportedly in negotiations to raise $200 million (€170.5m) in funding at a valuation exceeding $1 billion (€853m).

The potential partnership highlights the growing significance of the UK’s semiconductor sector on the world stage. If a formal agreement is reached, Fractile could become Anthropic’s fourth major chip supplier, joining the ranks of Nvidia, Google and Amazon.

According to market reports, the discussions remain at an early stage and no binding contract has been signed.

However, the interest from a major player such as Anthropic suggests that in the AI race, the ability to deliver faster and cheaper compute power is the defining factor.