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Strong AI demand spurs TSMC’s first-quarter profit by 9%

Ana Mary Joseph
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Strong AI demand spurs TSMC’s first-quarter profit by 9%
  • Shipments of 3-nanometre accounted for 9% of total wafer revenue, followed by 5-nanometre for 37% and  7-nanometre for 19%.

Strong demand for AI helps Taiwanese chipmaker TSMC to grow its first-quarter net profit by nine per cent to T$225.5 billion ($6.97 billion) from T$206.9 billion ($6.4 billion) a year earlier.

TSMC, the world’s largest contract chipmaker, reported a net revenue increase of 16.5 per cent from a year ago to NT$592.64 billion ($18.33 billion).

TSMC, which has Apple and Nvidia has its clients,  currently produces 3-nanometre chips and plans to commence mass production of 2-nanometre chips in 2025. Typically, a smaller nanometre size yields more powerful and efficient chips. 

Strong demand for AI chips led by the proliferation of large language models such as ChatGPT and Chinese clones has caused TSMC’s shares to surge 56 per cent in the past one year.

According to the earnings report, in the first quarter, shipments of 3-nanometre accounted for 9 per cent of total wafer revenue; 5-nanometre accounted for 37 per cent; 7-nanometre accounted for 19 per cent. Advanced technologies, defined as 7- nanometre and more advanced technologies, accounted for 65 per cent of total wafer revenue.

Arm chief warns of explosion in energy demand due to AI computing

Mohammed Fahad
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Arm chief warns of explosion in energy demand due to AI computing
  • World’s data centres on course to use more electricity than India, by 2030, and finding ways to head off that projected tripling of energy use is paramount if AI is going to achieve its promise.
  • For AI systems to get better, they will need more training — a stage that involves bombarding the software with data — and that’s going to run up against the limits of energy capacity.

The world’s data centers are on course to use more electricity than India, the world’s most populous country, by 2030, Arm Holdings Plc Chief Executive Officer Rene Haas, said.

“AI’s voracious need for computing power is threatening to overwhelm energy sources and finding ways to head off that projected tripling of energy use is paramount if artificial intelligence is going to achieve its promise,” he told Bloomberg.

The annual electricity report from the International Energy Agency (IEA) says data centres consumed 460TWh in 2022, a figure that could rise to more than 1,000TWh by 2026 in a worst-case scenario.

According to the report, compute power and cooling are the two most energy-intensive processes within data centres and the rapid growth of artificial intelligence-related services over the last 12 months means providers have been investing in power-hungry GPUs.

“The rate at which electricity usage will increase by 2026 depends on “the pace of deployment, range of efficiency improvements, as well as artificial intelligence and cryptocurrency trends,” the report said,

Haas joins a growing number of people raising alarms about the toll AI could take on the world’s infrastructure. But he also has an interest in the industry shifting more to Arm chips designs, which are gaining a bigger foothold in data centers. The company’s technology — already prevalent in smartphones — was developed to use energy more efficiently than traditional server chips.

More training needed

“We are still incredibly in the early days in terms of the capabilities. For AI systems to get better, they will need more training — a stage that involves bombarding the software with data — and that’s going to run up against the limits of energy capacity,” Hass said.

Arm, which began trading on the Nasdaq last year after 2023’s largest US initial public offering, sees AI and data centre computing as one of its biggest growth drivers.

AWS, Microsoft Corp and Alphabet are using Arm’s technology as the basis of in-house chips that help run their server farms. As part of that shift, they’re decreasing reliance on off-the-shelf parts made by Intel Corp. and Advanced Micro Devices Inc.

By using more custom-built chips, companies can lessen bottlenecks and save energy, according to Haas. Such a strategy could reduce data centre power by more than 15 per cent.

“There needs to be broad breakthroughs,” he said. “Any piece of efficiency matters.”

Mantra to set up incubator program in Dubai

Ana Mary Joseph
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Mantra to set up incubator program in Dubai
  • Five distinguished projects will be given the opportunity to join the incubator program and into the Mantra Chain ecosystem.

Mantra is setting up a new incubation program at the Dubai World Trade Centre, following an $11 million funding round in March this year led by Shorooq Partners.

The program is part of Mantra’s effort to contribute to the Real World Asset (RWA) tokenisation sector, with a focus on the MENA region.

The incubator program is designed to nurture and develop emerging projects within the Mantra ecosystem and in the RWA sphere.

Mantra will provide the startups with financial support for development, infrastructure costs, licensing, banking, and administrative services.

Selected through a meticulous process, five distinguished projects will be given the opportunity to join the incubator program, receiving comprehensive support to ensure their successful integration into the Mantra Chain ecosystem.

Building a holistic platform for innovation

Each chosen project will benefit from a seed investment of $100,000. The funds will be allocated from the personal funds of Mantra’s founder and CEO, John Patrick Mullin, showcasing his deep involvement and eagerness to make the program a success.

Alongside the grants, the program includes the dedicated assistance of an experienced project manager to oversee progress and provide expert guidance, as well as the opportunity to establish valuable connections, and gain access to a network of investors, setting a solid foundation for their future growth and success within the Mantra ecosystem.

John Patrick Mullin, CEO and Co-Founder of Mantra, said the program’s goal is to go beyond mere workspace provision.

“We’re building a holistic platform for innovation in the web3 space, enabling promising companies to leverage resources, networks, and a nurturing environment in one of the most vibrant crypto scenes globally,” he said.

Building infrastructure for Web3 start-ups

The incubation journey will commence at the Mantra offices in Hong Kong, where the teams will spend an enriching month immersing themselves in the vibrant tech scene. The journey will continue in San Francisco, offering another month of exposure to innovative practices and industry leaders.

Eventually the teams will be headquartered in the prestigious Dubai World Trade Centre, providing a global platform for the projects to showcase their potential.

“We have seen the unprecedented growth potential of Web3 companies in recent years, especially in specialised areas such as AI, big data and machine learning. As a forward-looking company, we aim to be early movers in this space and build the necessary infrastructure for Web3 start-ups to launch and scale. The UAE envisions having 10 unicorns by 2030, and we aspire to work in unity with the government in realising that vision,” Neil Petch, Chairman and Co-Founder of Virtuzone, said.

Located in the Sheikh Rashid Tower at DWTC, the incubation space is located in the building’s Maktabi business center covering over 17,000 square feet, reflecting Dubai’s role as a center for crypto innovation and matching Mantra’s goals for a vibrant startup ecosystem.

ASML orders fall as demand for advanced machines slips

Mohammed Fahad
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ASML orders fall as demand for advanced machines slips
  • The company’s net income falls by 38% to $1.22b in the first quarter of this year compared to $1.96b in the fourth quarter of last year.
  • The new sanctions restrict ASML from selling immersion DUV lithography machines to China.
  • The company expects as much as 15 per cent of China sales this year will be affected by the new export control measures.

Dutch semiconductor giant ASML Holding’s new orders fell short of expectations due to downturn in demand for its most advanced machines from the chip making industry.

Order bookings at Europe’s most valuable technology firm were $3.6 billion in the first quarter of this year compared to $9.2 billion in the fourth quarter of last year, the company said.

ASML expects 2024 total net sales to be similar to 2023.

The company’s net income fell by 38 per cent to $1.22 billion in the first quarter of this year compared to $1.96 billion in the fourth quarter of last year.

 “Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry’s continued recovery from the downturn,” Chief Executive Officer Peter Wennink said in the statement.

“We see 2024 as a transition year with continued investments in both capacity ramp and technology, to be ready for the turn in the cycle.”

China sanctions deal a major blow

Dutch and US export rules meant to stifle Beijing’s chip ambitions have targeted the Veldhoven-based company’s ability to sell cutting-edge equipment to China.

ASML benefited from strong demand from China last year as chipmakers there rushed to get advanced lithography machines ahead of the limits.

The new measures, which fully kicked in on January 1, restrict ASML from selling immersion DUV lithography machines, its second-most capable category of machinery, to China.

ASML has never been able to sell its most advanced extreme ultraviolet machines to China amid pressure from the US government. The company expects as much as 15 per cent of China sales this year will be affected by the new export control measures.

ASML could only sell 70 units of lithography systems during the quarter compared to 100 units in the fourth quarter of last year.

Meanwhile, China is quietly making progress on new techniques to cut reliance on advanced ASML lithography machines and China could make sophisticated 5-nanometre grade chips without the need for more advanced EUV tools sold only by ASML.

Meanwhile, some of ASML’s biggest customers have been posting positive results. Earlier this month, TSMC said its quarterly revenue grew at its fastest pace in more than a year.

Telegram app could cross 1b active monthly users within a year

Mohammed Fahad
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Telegram app could cross 1b active monthly users within a year
  • Telegram may aim for a US listing once the company had reached profitability.

Dubai-based messaging app – Telegram – will cross one billion active monthly users within a year, its founder said.

“We’ll probably cross 1 billion monthly active users within a year now,” Pavel Durov, who fully owns Telegram, told Tucker, according to the video interview posted on Tucker’s account on the X social media platform.

Telegram is one of the most popular social media platforms in Ukraine and Russia.

Almost all major media, government entities and public figures in both Russia and Ukraine operate content channels on Telegram after Russia launched its full-scale invasion of Ukraine in 2022.

The goal of the app, which has now 900 million active users, is to remain a “neutral platform” and not a “player in geopolitics,” Durov said.

The Russia-born entrepreneur said he had fled Russia in 2014 citing government interference in a company he founded.

Telegram’s main rival – Meta Platforms’ WhatsApp, has more than two billion monthly active users.

The Financial Times reported in March that Telegram would likely aim for a US listing once the company had reached profitability.

UAE’s Fortis secures $20m funding to bolster Mena expansion

Ana Mary Joseph
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0
UAE’s Fortis secures $20m funding to bolster Mena expansion

UAE-based fintech startup – Fortis – has raised $20 million in Series A funding as it seeks to redefine the retail tech and fintech environments in the Middle East and Africa region.

“We are thrilled to have secured this significant investment, which will enable us to accelerate our growth and deliver even greater value to businesses in the MENA region,” Alberto Caruso, Fortis CEO and founder, said.  

Fortis offers point-of-sale (POS) and customer relationship management (CRM) solutions for small businesses, facilitating both offline and online POS payments.

The funding round was led by Opportunity Venture. Last year, the venture capitalist invested $40 million in UAE-based deeptech XPANCEO’s Seed round.

 “We are committed to leveraging this funding to develop progressive solutions and provide support to our clients as they navigate the rapidly evolving retail and fintech landscape,” Caruso said.

The newly acquired funds are earmarked for several strategic initiatives aimed at bolstering Fortis’ market position and service offerings. 

“We are excited to lead Fortis’ Series A funding round and support their expansion into the MENA region,” said Philip Ma, managing partner at Opportunity Venture.  

“Fortis’ innovative approach to fintech and retail tech solutions aligns with our investment thesis, and we believe they are well positioned to drive significant value creation in these sectors,” Ma added. 

In addition to service development, a significant portion of the investment will be channelled into brand-building efforts to boost Fortis’s visibility and credibility in the fintech and retail tech sectors.  

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