Europe-Grown Tech Stack

The startup raised the funding at a time when calls to develop a tech stack for Europe, independent of US big techs, have been on the rise. A European coalition, which draws membership from the region’s tech industry, has asked lawmakers to take radical action to lessen reliance on foreign-owned tech infrastructure.

The coalition advocates for Europe-grown alternatives to chips, apps, AI models, and cloud services. Evroc is seeking to leverage this momentum. The company plans to set up hyperscale data centers in Europe and provide a range of cloud services in Europe. Founded in 2023, the company plans to set up eight data centers by the year 2028.

Currently, Evroc has two co-location facilities in Paris and another two in Stockholm. The startup plans to establish two more facilities in Frankfurt by the close of quarter two of this year. Its primary focus is to complete and commence AI workloads in its data centers in France and Sweden by 2026.

“They [data centers] are designed for the energy density required for AI, where racks can consume 20 times what a traditional server rack can, Both will be equipped with liquid cooling but will also host compute and storage servers,” Evroc CEO and founder Mattias Åström said.

Åström says that the startup is already pursuing debut customers in sectors like defense, health care, and the public sector as it prepares to launch later this year. Evroc is targeting sectors that require high sovereignty of data.

Push for Data Residency

Discussions on digital sovereignty are not new in Europe. Many US big techs have embarked on establishing local infrastructure in the region as they seek to comply with EU’s data residency requirements.

Recently, OpenAI launched an offering that enables users to process and store data in Europe. But in light of the recent trade wars, Åström says that control of EU tech infrastructure is critical, and it’s more than just placing servers in the region.

“I simply want Europe to control its own destiny. And while we’re at it, try to build something that is better,” Åström said.

As the geopolitics continue to play out, this Åström’s argument continues to gain weight. A case in point is the executive order that President Donald Trump signed last month, approving economic sanctions against the Netherlands-based International Criminal Court (ICC).

Trump accused the court of taking baseless and illegitimate actions against Israel and the US. With the ICC relying heavily on Microsoft Azure cloud service to store its data, these sanctions will have an impact on how Microsoft supports the ICC.

Shift to Cloud Computing

The ongoing focus on AI means that businesses across the world must shift on-premise infrastructure to cloud computing in order to maximize on the technology. Several startups have already started building European cloud infrastructure. These include DataCrunch in Finland, FlexAI in France, and Nebius in the Netherlands.

As these companies focus on AI computing, Evroc is seeking to build a European AWS alternative. A bigger portion of the company’s workforce of over 60 individuals works in software development throughout the UK, France, and Sweden. Åström says the company didn’t plan on setting up a hub in London. However, the decision was made after it became important to help the company attract top tech talent.

“I’m actually very excited about our London office, that wasn’t part of the initial plan, but in order to get extremely smart people that are working for the hyperscalers, it was the right decision,” Åström added.

Evroc’s funding round attracted participation from US-European venture firms Giant Ventures, EQT Ventures, Norrsken VC, and Blisce. Astrom says the startup will use the funding to build a European software stack.

“Europe has a lot of data centers, but we don’t really have that cloud. This equity round is really helping us build the software stack,” he said.

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Bringing AI to Business Communication

AI application in generating decks in business presentations is one of the areas where the technology can make a difference. Ready-made models tend to be mediocre because they are not designed to understand industry-specific language and vocabulary. Prezent seeks to address this gap.

Founded in 2021, Prezent is based in Los Altos, California, it has a subsidiary in India’s Bengaluru city. The startup was founded by Rajat Mishra, who had worked with McKinsey and Cisco previously. Mishra admits that at a young age, he struggled with speech impediments. This challenge drove his passion for communication technology.

“The idea for Prezent was, wouldn’t it be cool if we could build an AI platform that democratizes business communication and makes everyone a great business communicator?” he said.

Prezent has developed an AI assistant known as Astrid. Users upload documents like PDFs, Excel files, links, and other communication assets to the Prezent platform to give Astrid context about the company.

Prezent’s AI slide design automatically uses the content to generate presentations. Users can include specific terms, team abbreviations, and any other preferences to customize their presentations.

Leveraging Open-Source AI Models

Prezent AI pitch deck creator utilizes open-source models to improve proprietary data to power its platform. According to Mishra, the startup’s proprietary data includes a dataset that has more than 2 million slide decks.

Prezent also develops AI models based on specific applications. For instance, the startup can develop models that recommend layouts that users can use for specific decks. Prezent offers businesses that have tight timelines and require minimum human effort to polish presentations an expedited service.

Prezent’s AI automation tool for slides converts draft documents into professional grade presentations by leveraging a mix of AI and human reviewers, who include designers and consultants. The service spruces drafts for users overnight. The startup plans to unveil APIs to enable users develop presentations directly from chatbots, search engines, apps, and other platforms.

Unlike OpenAI models , DeepSeek has made its AI models freely accessible on the internet. This allows for modification and redistribution, giving AI startups an opportunity to leverage the technology.

“DeepSeek recently showed us that AI companies don’t need these massive funding rounds to make a big impact any longer,” Mishra said.

Prezent has a workforce of close to 200 employees. Mishra says that 75% of this workforce is based in India and works remotely.

Growing Customer Base

Prezent has been growing its user base gradually over the years. The company already has various users in Europe and is seeking to expand its operations into Southeast Asia in quarter two of this year. Currently, Prezent says it serves about 150 Fortune 2000 companies in the US, mostly targeting companies in the tech and biopharma industries.

Prezent’s latest investment will enable the startup to pursue potential customers in the manufacturing and financial service sectors. The company will also use the all-equity investment to expand to new markets in Japan, Europe, and Singapore.

The new funding is an extension of the Series A funding round that the tech startup launched in 2022. Last year, Prezent reported annual revenues of more than $10 million. The new funding pushes Prezent’s valuation to over $100 million.

The funding round was led by Greycroft. Other investors who participated in the funding round include Zoom Ventures, WestWave, and Emergent Ventures. The funding round attracted new tech investors like Alumni Ventures, True Global Ventures, and Manulife Ventures.

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The tech giant also increased its capital spending in the quarter under review as it focused on AI amid fierce competition from rivals such as Alibaba. Tencent reported a surge in AI revenues from activities like advertising and cloud computing.

Surpassing Projections

Tencent reported $23.9 billion in quarter four revenue. This was slightly higher than the $23.4 projected by analysts. Profits attributable to equity shareholders also increased slightly to $7.1 billion compared to the expected $6.3 billion.

Tencent is among the world’s largest gaming firms. In quarter four, its revenue from domestic games rose 23% year on year. The tech giant attributed this surge to growth in its user base as more players embraced hit games like Peacekeeper Elite and Honor of Kings. The company recorded a 15% increase in revenue generated outside

Chinese borders. With the local gaming market slowing down due to regulatory and macroeconomic challenges, the company is doubling overseas efforts with games such as Tencent PUBG Mobile. Revenue from the company’s advertising business rose by 17% in the fourth quarter.

Tencent owns the largest messaging app in China, WeChat. The app has 1.38 billion active users per month. The company has been seeking to monetize the platform by advertising products like search and videos.

Focusing on AI

Although Tencent maintains a lead in gaming globally, the tech giant has placed strong focus on establishing itself as an important AI player in China. This focus came with increased spending, pushing Tencent’s 2024 capital expenditure to 76.8 billion yuan compared to the 23.89 billion spent in 2023.

The AI spending was directed to acquisition of graphics processing units and servers. The tech giant has reorganized its teams and expects the increased spending to facilitate growth.

“Starting a few months ago, we have reorganised our AI teams to sharpen focus on both fast product innovation and deep model research, increased our AI-related capital expenditures, and increased our research and development and marketing efforts for our AI-native products. We believe these stepped-up investments will generate ongoing returns via uplifting productivity in our advertising business and longevity of our games, as well as longer term value from accelerated consumer usage of our AI applications and enterprise adoption of our AI services,” Tencent said.

Investors are waiting to see how Tencent will monetize AI investments on customer-facing platforms like WeChat.

Tencent AI Models

Tencent has developed various AI models for its own use over the last two years. The tech giant has an inhouse AI bot called Yuanbao. This chatbot is based on DeepSeek’s R1 model as well as the company’s Hunyuan foundational model.

Tencent is looking to integrate DeepSeek’s technology in its Chinese products including the search feature on its WeChat messaging app. The recent AI push reflects the current competition among Chinese tech companies. The competition has been triggered by DeepSeek’s highly efficient AI model launched earlier this year. Since then, companies like Baidu and Alibaba have been releasing AI updates at a much faster rate.

This past weekend, Baidu introduced two AI models, one being a new reasoning model. Alibaba also unveiled an update of its AI assistant that is powered by its reasoning model, its Qwen AI last week. Tencent also revealed Hunyuan3D 2.0 model. This AI model can convert images and text into 3D graphics.
The company had also launched an AI-powered chatbot Turbo S to respond to user queries fast. The company says that AI is facilitating product improvements across the company. For instance, the technology has driven its advertising business growth. The company also said that revenue from Tencent’s AI cloud computing unit doubled in 2024. The business is housed in its fintech and business service decision, which recorded a 3% growth in quarter four.

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Fluctuating Valuation

The payment platform plans to price the IPO in April.The buy now, pay later IPO will be based on the company’s most recent valuation. Klarna’s valuation at the New York Stock Exchange has surpassed the $15 billion mark, people who are close to the Swedish fintech have said.

Klarna’s valuation has experienced wild fluctuations in recent years according to its estimates. The company’s financing hit a high of $45.6 billion after a funding round conducted in 2021. However, this financing dropped to $6.7 billion the following year. Last year, analysts projected the fintech’s valuation to be about $14.6 billion.

These projections were based on the estimated value of the stake held by one of Klarna’s shareholders, Chrysalis Investments. Last month, the company’s Chief Executive Officer Sebastian Siemiatkowski said Klarna was exploring expansion opportunities in the cryptocurrency market.

Through a social media post shared on February 8, Siemiatkowski said the fintech company would embrace cryptos.

Confidential Registration

In November, the fintech company filed a draft registration statement with the US Securities and Exchange Commission (SEC) confidentially for its upcoming IPO. The offering is expected to take place after the commission reviews the registration statement. At the time of registration, the fintech company said the offer price and the number of shares to be offered during the IPO had not been determined.

This is not the first time that Klarna has announced IPO plans. In August 2024, the Klarna unveiled two new products – a cashback offering and a personal checking account. The new products were designed to reward users for shopping through its app. The company unveiled the new products as it anticipated a $20 billion Klarna IPO.

The fintech company had reportedly launched the new products to encourage users to shift their saving and spending transactions on its platform. At the beginning of 2024, Siemiatkowski said that fintech still needed to work on several steps, but it was keen on becoming a public company in a media interview.

A Long Journey

Klarna is already working with 15 banks on its listing. According to Bloomberg, the listing will be led by JP Morgan Chase, Morgan Stanley, and Goldman Sachs. The new listing will boost Klarna’s tech IPOs that have slumped since attaining record volumes in 2021. Other fintech firms that are considering initial share sales in 2025 include Zilch Technology and Chime.

Klarna is well known for its buy now, pay later loan products. These loans allow users to make purchases then split payments into equal installments that are interest-free. Since its launch, Klarna has grown its user base to 85 million customers across the world. The company partners with 600,000 retailers.

Klarna was established two decades ago in Sweden. In 2023, the fintech company started establishing a UK holding company as part of preparing for its eventual public offering. From that time, Klarna has refocused its strategies by shedding businesses, making investments in artificial intelligence, and working with payment partners.

In the last few months, the Swedish fintech company has divested its Checkout payments units for about $520 million. The company has also parted ways with buy now, pay later service provider Laybuy in New Zealand.

The post Swedish Fintech Klarna to File US IPO at $15 Billion Valuation appeared first on Tech Research Online.

The lawsuit claimed that Intel artificially inflated its stock price between January 25 and August 1, 2024. On August 1, the company reported a $1.61 billion loss, announced over 15,000 layoffs, and suspended its dividend to save $10 billion by 2025. The next day, Intel’s share price dropped by 26%, wiping out $32 billion in market value.

Intel’s Foundry Struggles and Massive Financial Losses

The Intel shareholder lawsuit was a result of fears over foundry losses, which have had a considerable effect on the company’s financial performance. Intel’s foundry business has been unable to keep up with competition from players such as TSMC and Samsung. In September 2024, Intel foundry signed a deal with Amazon to make chips for them.

Intel had marketed its foundry services as one of its prime growth drivers with a mission to regain its leadership in chip fabrication. But production innovation delays and intense competition caused rising losses, reigniting investor outrage. The complaint claimed that Intel had deceived investors about the profitability and viability of its foundry operations, something which Intel denied vehemently.

Investors Accuse Intel of Misleading Information

As part of the lawsuit, Intel investors accused chipmakers of downplaying the risks tied to the foundry division. Shareholders argued that Intel had given overly optimistic projections and did not adequately disclose the severity of its financial troubles. The stock took a significant hit as the losses became clear, resulting in billions being erased from Intel’s market value.

However, the judge ruled that shareholders wrongly linked the $7 billion loss to the Intel Foundry Services unit. They were not misled into thinking the unit’s reported results reflected the entire Internal Foundry Model.

Intel has assured investors of its dedication to bolstering its foundry business and enhancing its financial results. Thompson also stated that former Chief Executive Patrick Gelsinger’s remarks last March about Intel experiencing “significant traction” and “growing demand for our foundry offering” were not misleading. The statements referred to specific customers rather than overall revenue, which was declining. Although, CEO Patrick Gelsinger has resigned from his position in December of 2024.

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According to Reuters, Bitcoin was trending at a 20% high on Monday after dipping in the last week. With market enthusiasm at an all -time high level, many experts believe that it can be a significant twist for digital assets, especially under the leadership of key policy discussions and regulatory changes.

Trump said in a post on Truth Social that his executive order on digital asset in January 2025 would create a stockpile of currencies, including bitcoin, Ether, XRP, Solana and Cardano. On Friday, 28th February, Bitcoin dropped as the investors seeked clarity over Trump’s policies. The crypto coin has traded most recently at around $91,605, up from the Friday low of $78,273.

Trump Reserve Tokens

The launch of Trump reserve tokens triggered extensive discussions across financial markets and crypto networks. The launch occurred before Crypto Summit where policymakers and industry leaders came to discuss digital assets. Several understand this act as a potential breakthrough, strengthening Trump’s reputation as a president pro-crypto and further securing his power on the digital asset space.

In December 2024, the prices of Bitcoin surged to $106,000 when Trump announced the creation Bitcoin strategic reserve plan. Analysts suggest that Trump’s engagement with crypto-related projects could boost investor confidence, leading to sustained growth.

Matt Simpson, senior market analyst at City Index, Said, “Trump just gave the pump that crypto traders have been holding out for. Any faith that was lost last week appears to have been restored”

Implications for Bitcoin Investment

The recent increase in the rally of Bitcoin has talked about its long -term effects on investors. As the price of bitcoin increases, people are curious if this trend will continue next year. Finance experts suggest that more large companies can be found investing in Bitcoin in 2025, if the pro-crypto policies are introduced.

Analysts believe that launching the Trump Reserve token can attract conservative investors for cryptocurrency. If Trump supports digital assets such as bitcoin, the rules can be more favorable, reduce uncertainty and encourage large investments.

A Crypto-Friendly President

Bitcoin’s recent surge underscores the increasing overlap between cryptocurrency and politics. The launch of Trump reserve tokens has sparked a new Bitcoin rally. Bitcoin dropped over 17% in February, which was the steepest monthly decline of crypto since June 2022.

As Trump becomes a crypto-friendly president, market sentiment is now bullish, indicating that digital assets might play an even bigger role in the financial markets going forward. With investors and analysts monitoring closely, the next few months will be important in ascertaining whether this bullish trend is set to continue.

The post Bitcoin Surges 20% After Trump Announces Reserve Tokens Initiative appeared first on Tech Research Online.

According to Reuters, Wall Street’s dim view of Nvidia’s forecast pushed the stock down by 8%. The stocks closed lower than $120.15 like the stocks of other Big Tech companies. Nvidia’s Q4 reports signaled at tighter profits, disappointing the investors. Though the estimates of semiconductor manufacturer’s first quarter earning forecast was better than the market estimates.

Nvidia’s Strong Fourth-Quarter Earnings

Nvidia’s fourth-quarter earnings report was marked by strong revenue growth largely caused by rising demand for AI chips. Nvidia’s data center business, where it sells high-end GPUs to artificial intelligence models, remains a top revenue contributor. Due to high demand for AI chips, Nvidia’s market cap was boosted by $2 Trillion in 2024.

Although the company has exceeded revenue projections, doubts remain about the sustainability of its AI chip success. Nvidia’s revenue rose by about 65%, a major deceleration from the triple-digit growth that investors have experienced in the last year. Furthermore, the company also sees its gross margin drop to 71%, its lowest point in at least a year.

Market Trends and Competitive Pressures

The wider Nvidia market trends both show risks and opportunities. On the positive side, AI adoption keeps increasing across a wide range of industries, including healthcare and finance, which could boost demand for Nvidia’s new GPUs. Additionally, Nvidia signed a deal with Netherlands to provide hardware and expertise in the new AI facility

Geopolitical tensions and trade restrictions are a major challenge for Nvidia, as China is still one of its major markets. With U.S. regulators clamping down on AI-related exports, Nvidia may see its sales growth slow down, which could affect its stock performance. Earlier this year, Nvidia also faced challenges as the stock performance slowed down due to these market factors.

The Nvidia financial outlook remains positive, but investor sentiment is mixed. While Nvidia continues to set new benchmarks in AI computing, the company must navigate an increasingly competitive landscape. The company’s ability to maintain its leadership in the semiconductor space will ultimately determine its market performance in the coming years.

The post Wall Street Remains Skeptical Despite Nvidia’s Optimistic Forecast appeared first on Tech Research Online.

According to CNBC, Bitcoin was trading at $78,782 in Asia on Friday, down by 5.5% from the morning. The overall dip was about 25% from the middle of December. The price decline marks an ongoing period of market instability where several elements led to abrupt value depreciation. Post Trump won the U.S. elections, Bitcoin hit a record high of $81000.

Bitcoin Price Analysis

The drop in the price of Bitcoin is given by both internal and external market forces. The main reason for the decline is uncertainty about possible policy reforms post Trump election. When Trump announced the Bitcoin Reserve plan, the price of the crypto surged an all time high at $106,000.

But prices have fallen as investors avoid riskier assets because of global equity market weakness. Doubts about the new President’s policy on tariffs and ongoing tensions in Russia-Ukraine and Israel-Gaza have also weighed on the decline.

The investor sentiment was also hurt by the news of Bybit, a major crypto market getting hacked for $1.5 billion. Jeff Mei, chief operating officer at crypto exchange BTSE in a statement, “It seems that the market has become volatile in reaction to the Bybit incident.”

Bitcoin Trading Update

As Bitcoin hits low, unwinding its post Trump election gains, the cryptocurrency market is in a period of uncertainty. The drop in the price of Bitcoin points to the volatility of digital assets, where both outside economic influences and inside market dynamics come into play. In the end of 2024 as well, Bitcoin price dropped due to volatility and uncertainty in the market.

The most recent Bitcoin trading report indicates that although short-term volatility is likely to continue, the long-term future of Bitcoin will be determined by regulatory progress, institutional investment, and general market conditions. Investors need to tread this volatile terrain cautiously, weighing the risks and benefits of investing in virtual currencies.

Geoffrey Kendrick, head of digital assets research at Standard Chartered said in an interview on Thursday, “Bitcoin could surpass $200,000 this year.”

The post Bitcoin Price Declines as Investors Await Clarity on Trump’s Policies appeared first on Tech Research Online.

A Speculative Move

Founded by Jack Ma, the Chinese tech company invested more on Alibaba cloud computing network in the last decade. As AI models evolve and increase computing power, the tech giant’s goal is to become a major partner for companies that develop and apply AI in the real world. Analysts see Alibaba’s decision to invest in AI infrastructure as risky and highly speculative.

“Alibaba’s confirmed plans to invest at least $53 billion over the next three years is a speculative, risky gamble in the pursuit of AGI. Achieving AGI – the ability to mimic human levels of intelligence – would require a significant technological breakthrough. It’s not clear whether the current generation of models can achieve AGI, with any payback an uncertain and indistinct prospect,” Analysts Jasmine Lyu and Robert Lea said.

Alibaba’s AI investment is one of the largest AI infrastructural budgets in China. However, the announcement comes at a time when investors are wondering whether funding estimates by big techs or projections of future demand for AI services are too high. Though Alibaba’s funding commitment represents a major milestone for China, its three year timeline is still behind US rivals. Microsoft is looking to invest $80 in AI data centers this year.

Meta has also allocated $65 billion to the AI industry in 2025. Alibaba has been running AWS-like platforms across the globe for years now, but its entry into the AI field is relatively new. Generally, Chinese companies have been curtailed by US sanctions that deny them access to advanced Nvidia AI chips to power their data centers.

Largest Chinese Investment

On February 21, analysts from TD Cowen said that Microsoft was in the process of terminating leases for significant data center capacity in the US. This step by the Windows makers is a classic example of the concerns it has on whether it’s setting up AI computing infrastructure that it will require in the long run.

“This also sets a record for the largest investment ever by Chinese private enterprises in the field of cloud and AI hardware infrastructure construction,” Alicia Yap, an Analyst at Citigroup said.

Many US big techs, including Amazon and Meta, have pledged to invest billions of dollars towards establishment of data centers that are required to develop, train, and host AI models. Investors in Wall Street have started questioning whether these investments are realistic, especially after the emergence of DeepSeek whose researchers claim was developed at a fraction of the cost that big techs spend. Big wigs like Nvidia hold that AI will change the global tech landscape. Alibaba appears to agree with this position.

Improving Performance

Investors have appreciated Alibaba’s AI strategy and its determination to join the artificial intelligence race. On February 20, the company reported the highest revenue growth in over a year. Alibaba’s market valuation has gained over $100 billion in 2025. Its founder, Jack Ma was among the few top tech executives who participated in a televised symposium hosted by President Xi Jinping last week.

Alibaba’s participation in this meeting marks Alibaba’s return to favor with the Chinese government following years in the cold. The Chinese firm is reviving its business following a government crackdown that started in 2020. Alibaba is doing this by refocusing its ambition on AI and ecommerce. The company has joined the AI race that has been dominated by big US companies like Google and OpenAI.

Last week, Alibaba CEO Eddie Wu announced that the company’s current goal is Artificial General Intelligence. The summit was attended by entrepreneurs from different tech industries, including AI, electric vehicles, and robotics. Since ChatGPT launched, Alibaba has made investments in a number of promising startups in China. These include Zhipu and Moonshot. The tech giant has prioritized expansion of its cloud computing business, where its AI development initiatives are hosted.

The post Alibaba’s $53 Billion AI Investment Plan Speculative and Risky, Analysts Say appeared first on Tech Research Online.

Taiwan Semiconductor Manufacturing Company is looking to control Intel’s chip manufacturing plants. A Broadcom acquisition could reportedly see the company take over Intel’s chip design and marketing business.

Better Value

Analysts say that Intel’s breakup could maximize the company’s value in favor of shareholders who have suffered for a considerable period of time. Mark Lipacis, an analyst with Evercore said that based on his conservative analysis of the company, its value could be about $167 billion. This is equivalent to $38.24 per share.

Lipacis says the company’s value could shoot to $237 billion or $54.18 per share. This value is based on a robust analysis of the financial performance for each Intel business. He however says a deal at this valuation could be difficult to close.

“Depending on how a deal is structured, it might require regulatory approval from countries around the world, including China. Also, Intel has historically designed its factories to make x86 CPUs, so it is not clear if Intel’s factories would be able to make external chips efficiently with its current physical plant. Finally, Intel’s foundry business reported a 76% operating loss in 2024, vs Taiwan Semiconductor’s 45% operating margin,” Lipacis said.

On Friday February 14, Intel shares prices stood at $23.60, about 50% less than the price last year. Intel’s stocks have lost 65% of their value over the last year. The company’s current market capitalization is $102 billion.

The Regulatory Challenge

Analysts from Bank of America, Bernstein, and Raymond James also weighed in on Intel’s corporate breakup and the challenge it presents. The analysts have raised concerns over antitrust issues and regulatory challenges.

Vivek Arya, an analyst at Bank of America said an Intel split would be complex and time-consuming. Arya also says that acquisition deals involving Intel’s chip production business and Taiwan Semiconductor Manufacturing Company would be constrained tightly by the rules underlying Intel’s Chips Act funding. Intel is expected to maintain ownership of over 50% of its foundry business under those rules.

The US government “could be wary of a foreign entity completely taking over an iconic US-firm that has deep involvement with US Department of Defense customers,” Arya added.

In September last year, Intel received $3 billion in government funding to produce chips for the US military. Some analysts say that the Trump administration could find a way around a TSMC-Intel deal.

“A better outcome for the US government would be to work with TSMC separately to expand its US manufacturing footprint,” Raymond James Analyst Srini Pajjuri stated in a note.

Broadcom is a better place to acquire the product business at Intel, Bernstein analyst Stacy Ragon wrote in a note on February 18.

“Hock Tan [Broadcom CEO] has shown the ability to take a hatchet to costs, ruthlessly, while still preserving innovation,” Rasgon wrote.

A Rough Ride

Intel has had a rough ride over in recent months to a point of parting ways with its former CEO, Pat Gelsinger last December. Gelsinger worked aggressively to turn the chip manufacture around for over three years. His turn-around strategy included reducing Intel’s workforce, building foundry business, securing Chips Act funding, and reducing spending.

Before his departure, Gelsinger had promised that Intel would manufacture fast AI chips to compete with rivals like AMD and Nvidia. Upon releasing Gelsinger, the Intel board appointed former Client Computing head Michelle Johnston Holthaus and CFO David Zinser to serve as co-CEOs on an interim basis. Holthaus also serves as the CEO of Intel Products. Intel is likely to tap a big name outside the company to fill the CEO slot.

The new CEO will have to work hard to rebuild investor confidence after the giant tech company missed its financial targets. The CEO will also be expected to decide on Intel’s foundry business and explore possibilities of splitting the company to drive shareholder value.

The post Intel Breakup Could Push the Chip Company’s Valuation to $200 Billion, Analysts Say appeared first on Tech Research Online.

Trump’s Tariff Effect

President Trump took power on January 20. Following his ascend to power, Trump has castigated Taiwan for shifting the semiconductor business. The President threatened to introduce import tariffs on countries with which the US has huge trade deficits. These tariffs are likely to target Taiwan.

Most Taiwanese manufacturers have invested heavily in production factories in their country to develop components for a wide range of products including electric vehicles and AI servers for the North American market.

Many Taiwanese electronic companies are now seeking to move some of their operations to the US. This could be an indication that President Trump’s threats on introducing tariffs on imports is already triggering the desired effect in Taiwan. President Lai Ching-te of Taiwan committed to make more investments in the US last week.

Richard Lee, who chairs the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that Taiwanese multiple large manufacturers in the Asian country are considering expanding to Texas.

Most of these companies are in the AI server industry. The State seems to attract the top manufacturers due to its investor-friendly environment. The expected Taiwan investments in Texas comes after the State’s Republican government took proactive steps to attract investments.

Expected Expansions

Some Taiwanese companies like Compal, Foxconn, and Inventec already have running operations in Texas. However, they are expected to make public announcements on planned expansions to meet the rising demand for AI technologies.

As the demand for AI services increases, Taiwanese electronic firms see Texas as the most strategic location to set up production facilities. For instance, Foxconn’s Texas expansion is already on track. As the largest contract electronics company, Foxconn makes products for US big techs like Nvidia and Apple. The Taiwanese company has invested $33 million on land and buildings in Texas State’s Harris County.

Contract AI server and laptop manufacturers Inventec and Compal are also planning US expansion. Last month, executives from the two companies stated that Texas would be their preferred location.

“Texas is a leading candidate just because of the power that they’ve done. Samsung is putting a giant fab in, and that’s created a lot of extra power and infrastructure there. Texas is the only state in the U.S. that has its own grid. And so, we continue to evaluate that. But no decisions have been made yet,” Compal President and CEO Anthony Peter Bonadero said earlier this month.

Taiwan Trade Centers

Earlier this month, the Taiwan government announced plans to establish a trade and investment center in Texas and other parts of the US. The announcement was made by the Taiwan Ministry of Economic Affairs (MOEA) said Monday that it plans to set up an investment and trade center in Texas.

According to the MOEA, the trade centers will serve as a link between Taiwanese companies that expand to the US and the Taiwanese government. The centers will help the companies to access the assistance they need to move their processes forward. The trade centers are also expected to link Taiwanese investors to potential US partners to facilitate transfer of their products into the US market from countries where the Trump administration has introduced high tariffs.

The Taiwan government moved to set up the center soon after President Trump signed executive orders that imposed a 25% tariff on imports from Mexico and Canada. The orders also increased duty on Chinese imports by 10%. These tariffs affect over 300 Taiwanese companies that have established production facilities in Mexico. These include manufacturing giant Hon Hai Precision Industry, Quarter Computer, Wistron Corp and Pegatron Corp.

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In December last year, the Department of Commerce in the US finalised a government grant amounting to $406 million for the company. The funding is expected to enhance GlobalWafer’s production of silicon wafers in the US states of Missouri and Texas.

Trump’s Renegotiation Plan

The Trump administration plans to negotiate awards issued to semiconductor companies by the Biden Administration under the Chips and Science Act. President Donald Trump’s government has indicated that there will be delays in disbursing some of the grants that the Biden administration had finalized to tech companies.

Previously, Taiwan GlobalWafers had indicated that the Chips Program Office had informed it that some of the conditions in the grant were not aligned to the executive orders and policies of the new administration. The Trump administration is reviewing conditions for all direct funding agreements under the Chips Act.

Even as the company’s funding agreement undergoes review, GlobalWafers says Washington is yet to issue it with a direct notification on changes to the terms or conditions of its award agreement.

No Funding Yet

Although the US Commerce Department finalized GlobalWafer’s grant award in December 2024, the company is yet to receive funding from the government.

According to Hsu, the delay in disbursement has nothing to do with changes that the Trump administration is expected to make. Rather, the delay has been occasioned by the fact that the company has not achieved the milestones set out in the grant agreement for this year.

“We have a first milestone to achieve, and once we reach it, we will submit the necessary documentation to the relevant authorities for review,” Hsu said.

The company says it’s maintaining its US expansion plan that it has already commenced in three factories across the country. The Taiwanese wafers manufacturer isn’t too worried about the impact that possible import tariffs by the Trump administration could have on its business.
According to CEO Hsu, the existing three production facilities in the US coupled with its global presence provide the company with ‘more strategies to cope with potential tariff impacts.’

Reassessing Investment

Since coming to office last month, President Trump has signed numerous executive orders and taken measures that have created uncertainty in the chip manufacturing sector. As she informed reporters that the new administration is yet to communicate award modifications, GlobalWafers CEO Doris Hsu said her company will have to reassess its US investment if changes are made to the Chips Act.

“We don’t know what will happen, but if the CHIPS Act is indeed modified and we are affected, we will need to reassess our subsequent investments,” Hsu said.

According to Hsu, this assessment will involve conducting an evaluation on the demand of its products in the country and the prices that it can sustain there. Such an evaluation will help the company to determine whether GlobalWafers US expansion would be profitable in the long run or maintaining production in Taiwan would be more beneficial considering possible duties.

“At this moment, everything is hypothetical and hasn’t happened yet, as we haven’t received any notification about required actions. For now, everything is proceeding according to the original plan,” Hsu added.

Ready Contracts

GlobalWafers has already secured contracts to supply silicon wafers in the US. The contracts are valued at $406 million. Under the Biden administration, the US government committed to award a total of $52.7 billion in grants, loans, and tax credits under the Chips and Science Act semiconductor manufacturing and research subsidy program.

By mid-December 2024, the US Department of Commerce had finalized various awards to US-based semiconductor manufacturers including a $6.1 billion subsidy for memory chip maker Micron Technology, $7.86 billion for Intel and $750 million for US chip maker, Wolfspeed. Chips Act funding was part of Biden’s administration to fuel domestic production of semiconductors and reduce reliance on Taiwan and China.

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