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LG to build third factory in India with $600m investment

Mohammed Fahad
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LG to build third factory in India with $600m investment
  • New facility is scheduled to commence production by the end of 2026 by manufacturing 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors.

LG Electronics has announced a significant expansion of its manufacturing footprint in India with the groundbreaking of a new home appliance factory in Sri City, Andhra Pradesh.

The strategic move underscores the company’s deepening commitment to the rapidly growing South Asian market, particularly India, which continues to be a focal point for consumer durables due to its expanding middle class and increasing domestic demand.

The new facility, backed by an investment of $600 million, is scheduled to commence production by the end of 2026. With an impressive annual capacity, the plant will manufacture 800,000 refrigerators, 850,000 washing machines, 1.5 million air conditioners, and 2 million air conditioner compressors.

Meeting surging demand

These figures not only highlight LG Electronics’ ambition to scale operations but also indicate the company’s focus on meeting the surging demand for essential household appliances in India and its neighboring regions.

This factory will become LG Electronics’ third manufacturing base in India, complementing its existing plants in Noida, Uttar Pradesh, and Pune, Maharashtra.

Its location in Sri City, an emerging industrial hub, is strategically important as it is expected to act as a regional manufacturing center, catering not only to the Indian market but also to adjacent markets in the Middle East and Bangladesh. Such regional integration will likely optimize logistics, reduce production costs, and strengthen LG’s supply chain efficiency.

Strengthening supply chain

The establishment of the Sri City plant is more than a simple addition to LG’s production capacity; it is emblematic of the company’s aspiration to become a truly national brand within India.

As emphasised by Lyu Jae-cheol, President of LG’s home appliance division, the facility will support the production of innovative products powered by a strengthened local supply chain. This local emphasis is critical in enhancing responsiveness to market trends and consumer preferences while also fostering economic development within India.

Furthermore, the new factory is expected to bolster LG Electronics’ leadership position in India’s competitive home appliance sector. The Indian consumer durables market is witnessing rapid growth fueled by urbanization, rising incomes, and increased consumer awareness.

By expanding local manufacturing capabilities, LG Electronics is positioned to offer competitively priced, high-quality products tailored to Indian consumers, thereby maintaining and potentially increasing its market share.

US likely to ease microchip export to some Gulf Countries

Ana Mary Joseph
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US likely to ease microchip export to some Gulf Countries
  • Announcement signals a possible shift in US foreign policy and trade strategy concerning the region, which has been a focal point of geopolitical interest in recent years.

President Donald Trump announced that he will soon provide an update regarding the potential easing of US microchip export restrictions to certain Gulf countries.

The statement comes amidst growing anticipation of his upcoming diplomatic visit to the Middle East, which includes a tour of three nations beginning in Saudi Arabia.

The announcement signals a possible shift in US foreign policy and trade strategy concerning the region, which has been a focal point of geopolitical interest in recent years.

Under the Biden administration, stringent controls have been placed on the export of advanced American artificial intelligence (AI) chips to Middle Eastern countries. These restrictions were primarily motivated by concerns that such high-tech semiconductors could be diverted or transferred to China, thereby enhancing Beijing’s military capabilities.

Diplomatic agenda

The chips in question are considered highly valuable due to their potential applications in cutting-edge technologies, including defense systems. Consequently, the Biden administration’s cautious approach aimed to balance the promotion of economic interests with national security imperatives.

In contrast, President Trump’s remarks suggest a re-evaluation of this policy. By indicating that the US “might be doing” a relaxation of these controls, Trump underscores his administration’s objective to foster improved relations with key nations in the Gulf region.

This approach aligns with his broader diplomatic agenda, which emphasises strategic partnerships and strengthened ties, particularly with countries like Saudi Arabia and other Gulf Cooperation Council (GCC) members.

Naming of Persian Gulf

Such a policy shift could have substantial implications, potentially facilitating greater technological collaboration and economic engagement between the United States and Gulf states.

Moreover, President Trump has indicated plans to address the sensitive issue concerning the naming of the Persian Gulf. Reports suggest that the US government may consider adopting alternative nomenclature, such as “Arabian Gulf” or “Gulf of Arabia,” reflecting preferences commonly held by Arab Gulf states.

The potential change carries significant diplomatic weight, as the designation of this body of water remains a contentious issue between Arab nations and Iran.

While Arab Gulf leaders might view such a move favourably as recognition of their regional identity, it is expected to provoke strong opposition from Iran, which considers “Persian Gulf” a historically and culturally critical term.

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Apple to deal a big blow to Google’s AI search dominance

Naushad K. Cherrayil
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Apple to deal a big blow to Google’s AI search dominance

  • Apple considers options from companies like OpenAI and Perplexity AI.
  • By challenging Google’s entrenched position, Apple not only redefines user engagement with search but also accelerates the transition toward AI-driven information retrieval.

Apple’s strategic move to incorporate AI-powered search options into its Safari browser marks a significant challenge to Google’s dominance in the online search and advertising markets.

The development not only disrupts the long-standing relationship between the two tech giants but also signals a potential paradigm shift in the way users access and interact with information on their devices, with profound implications for the digital advertising ecosystem.

For years, Google has enjoyed a lucrative arrangement as the default search provider on Apple’s Safari browser, a position that reportedly generates around $20 billion annually for Apple and constitutes approximately 36 per cent of Google’s search advertising revenue from iPhone users.

Growing shift towards AI

The partnership has been mutually beneficial, with Google maintaining its near-monopoly in search—commanding roughly 90 per cent market share—and advertisers relying heavily on its platform to reach consumers.

However, Apple’s initiative to embed AI-powered search tools, including options from companies like OpenAI and Perplexity AI, represents a bold challenge to Google’s supremacy. Eddy Cue, Apple’s senior executive, revealed in testimony that search volumes on Safari declined last month as users increasingly turned to AI-driven solutions, underscoring a growing shift in user preferences.

The immediate market reaction was stark: Alphabet, Google’s parent company, saw its shares plummet by 7.3%, wiping out some $150 billion of its market value in a single day.

The dramatic sell-off reflects investor concerns about the erosion of Google’s core search business and the attendant advertising revenues that fuel much of its profitability. Moreover, the timing of this upheaval is critical given the ongoing US antitrust scrutiny targeting Google’s dominance in online search.

Search advertising monopoly

The Department of Justice’s recent lawsuits propose remedies that include preventing Google from paying companies to be the default search engine, a move that could effectively force Google out of its privileged position on Apple’s devices.

Despite these pressures, Google is far from defenseless. In response to both competitive and regulatory challenges, the company has intensified its investment in artificial intelligence, unveiling an “AI mode” on its search platform and expanding AI-generated summaries designed to enhance the search experience.

CEO Sundar Pichai has expressed optimism about reaching new agreements with Apple to integrate Google’s Gemini AI technology into upcoming iPhone models, underscoring Google’s commitment to retaining its vast user base.

Additionally, innovations such as voice and visual search continue to contribute to overall search volume growth, implying that Google recognises the need to evolve alongside emerging AI trends.

The broader significance of Apple’s AI search integration lies in the potential disruption of the search advertising monopoly. Analysts suggest that the removal of Google’s exclusivity on Apple devices could fragment the search landscape, enabling alternative providers to capture a share of the advertising budgets that have long been concentrated with Google.

As advertising dollars migrate toward more diversified platforms, the implications for the digital ad market could be profound, fostering increased competition and innovation.

OpenAI plans to cut Microsoft revenue share to 10% after restructuring

Ana Mary Joseph
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OpenAI plans to cut Microsoft revenue share to 10% after restructuring
  • Restructuring and recalibration of financial arrangements appear partly influenced by broader strategic shifts and the evolving corporate dynamics between OpenAI and its partners.
  • OpenAI continues to emphasise its commitment to working closely with Microsoft and other commercial partners to finalise the details of the ongoing recapitalisation effort.

OpenAI, the pioneering artificial intelligence company behind ChatGPT, has recently informed investors of significant changes regarding its revenue-sharing arrangement with its major backer, Microsoft.

According to a report published by The Information, OpenAI plans to reduce the percentage of revenue it shares with Microsoft by at least half by the end of this decade.

The development accompanies a scaled-back restructuring plan and an intention by OpenAI’s nonprofit parent entity to retain firm control, potentially curbing CEO Sam Altman’s influence over the company’s future direction.

Historically, under the existing agreement, OpenAI agreed to share 20 per cent of its revenue with Microsoft through 2030. The new projections, based on private documents reviewed by The Information, indicate a revision to this figure, with OpenAI indicating that it will reduce the share to 10 per cent of revenues with commercial partners—Microsoft being the principal among them—by 2030.

Importance of the partnership

The adjustment is noteworthy given Microsoft’s ambitions to maintain access to OpenAI’s technology well beyond the 2030 horizon, which underscores the strategic importance of the partnership.

The restructuring and recalibration of financial arrangements appear partly influenced by broader strategic shifts and the evolving corporate dynamics between OpenAI and its partners.

In January, Microsoft amended certain key terms of its deal with OpenAI in the context of its joint AI infrastructure venture alongside Oracle and Japan’s SoftBank Group.

These collaborations aim to build an expansive network of AI data centres across the United States, with investments potentially reaching up to $500 billion.

Partnership remains intact

Despite such changes, Microsoft has publicly reaffirmed the strength and durability of its revenue-sharing agreements with OpenAI, emphasising that the primary elements of their partnership remain intact through the contract’s duration.

The decision for OpenAI’s non-profit parent to retain greater control amidst the scaled-back restructuring could have significant implications for governance and strategic decision-making within the firm.

It is anticipated that CEO Sam Altman’s control over corporate affairs may see some constraints as a result. Nonetheless, OpenAI continues to emphasise its commitment to working closely with Microsoft and other commercial partners to finalise the details of the ongoing recapitalisation effort.

Meta wins $168m in damages against NSO spying in US lawsuit

Mohammed Fahad
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Meta wins $168m in damages against NSO spying in US lawsuit
  • Meta sought monetary damages and a permanent injunction to restrain NSO’s continued exploitation of its platforms, citing the ongoing risk to both the company and the millions of WhatsApp users worldwide.

Israel’s NSO Group faced a substantial federal jury penalty amounting to $168 million for orchestrating a highly sophisticated cyberattack on Meta’s WhatsApp servers.

The verdict marks the conclusion of a protracted six-year litigation process initiated by the American social media giant against the controversial surveillance company. Beyond the financial repercussion, the case exposes critical aspects of the spyware industry and raises pressing ethical and legal questions concerning digital privacy and state-sponsored espionage.

NSO Group’s modus operandi involved leveraging WhatsApp’s infrastructure to clandestinely infiltrate the devices of users worldwide, often on behalf of foreign intelligence agencies. According to court statements, between 2018 and 2020,

NSO charged European government clients a base fee of $7 million for access to its platform, enabling hacks on 15 devices concurrently. An additional premium of $1 to $2 million was levied for the capability to exploit devices outside a customer’s national jurisdiction.

Spyware enterprise

These figures, disclosed by NSO’s vice president of global business operations Sarit Bizinsky Gil, underscore the sizable commercial scale of the spyware enterprise.

The company’s executives sought to differentiate their tools from conventional spyware during the trial. Tamir Gazneli, NSO’s vice president of research and development, contested allegations of selling spyware by emphasising that their software served intelligence-gathering purposes targeted at “intelligence targets” rather than individuals per se.

This nuanced defense, however, was met with scepticism by Meta’s counsel, Antonio Perez, who highlighted the intrinsic human dimension of the implicated targets, thereby challenging NSO’s distancing from ethical accountability.

Upholding legal freedom

Complicating the narrative further were revelations pertaining to NSO’s historical transactions with US intelligence agencies, notably the Central Intelligence Agency (CIA) and the Federal Bureau of Investigation (FBI), which together disbursed $7.6 million to the firm.

Reports indicate that the CIA facilitated Djibouti’s government’s procurement of NSO spyware, while the FBI conducted its own evaluations of the technology. These revelations illuminate the paradox wherein state actors, responsible for upholding legal freedoms, simultaneously engage private firms whose technologies may be deployed in ethically contentious ways.

Meta’s legal battle alleged that NSO’s intrusion attempts persisted even after the commencement of litigation, illustrating a blatant disregard for judicial proceedings and exacerbating the threat posed to user privacy.

Consequently, Meta sought not only monetary damages but also a permanent injunction to restrain NSO’s continued exploitation of its platforms, citing the ongoing risk to both the company and the millions of WhatsApp users worldwide.

AMD expects $1.5b revenue hit from US’ new round of export controls

Ana Mary Joseph
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AMD expects $1.5b revenue hit from US’ new round of export controls
  • AMD projects second-quarter revenue between $7.1b and $7.7b.

Advanced Micro Devices (AMD), a leading player in the semiconductor industry, recently disclosed the financial implications of newly imposed US export controls on its revenue, particularly with regard to shipments of advanced artificial intelligence (AI) processors to China.

According to AMD’s finance chief, Jean Hu, these restrictions are expected to result in substantial $1.5 billion revenue hit in 2025. The announcement sheds light not only on the challenges faced by AMD amid evolving geopolitical and regulatory landscapes but also on the broader implications for the global semiconductor sector.

In an earnings call, AMD revealed that the latest round of export controls, instituted in April under tightened US government policies, mandates that advanced AI chips destined for China require export licenses.

Optimistic outlook

The regulatory hurdle effectively restricts AMD’s ability to ship key products, such as the MI308 AI processor, to one of its largest markets. The company anticipates that these curbs could incur approximately an 800 million charge related to inventory adjustments and purchase commitments.

Despite this headwind, AMD projects second-quarter revenue between $7.1 billion and $7.7 billion—figures that surpass Wall Street’s expectations and are likely buoyed by accelerated chip purchases ahead of the tariff implementations.

AMD’s chief executive officer, Lisa Su, provided a cautiously optimistic perspective on the situation. She underscored the resilience of the company’s differentiated product portfolio and consistent operational execution, which, despite the “dynamic macro and regulatory environment,” position AMD well for strong growth by 2025.

Su further noted that the majority of the financial impact from the export curbs is expected within the second and third quarters, yet she maintains confidence in the company’s ability to achieve “strong double-digit” growth in AI chip revenue from its data centre business.

Increased volatility

This optimism resonates with AMD’s ongoing commitment to supplying advanced processors to major cloud infrastructure providers such as Microsoft and Meta Platforms, which continue to allocate significant investments toward AI capabilities.

The ramifications of US export controls extend beyond AMD, reflecting a broader strategic effort by the Biden and Trump administrations to limit China’s access to cutting-edge semiconductor technology.

These measures aim to impede China’s development of advanced AI models and applications that the US government views as potential national security risks.

Notably, Nvidia, AMD’s chief competitor, has faced even larger financial repercussions—a $5.5 billion charge—stemming from similar restrictions. Both companies now require export licenses to sell AI chips in China, signaling a profound shift in supply chain and market dynamics.

This heightened regulatory environment has contributed to increased volatility among AI-related stocks, as market participants reassess growth prospects amid fears of overhype and geopolitical uncertainty.

For instance, recent developments such as DeepSeek’s announcement—demonstrating high-performance AI models using less advanced chips—have further pressured chip valuations.

Moreover, the semiconductor industry faces additional trade challenges from tariffs exceeding 145 per cent on products manufactured in China, Vietnam, and Malaysia, with potential further duties looming under the US Commerce Department’s Section 232 investigation.

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