Category: 3. Business

  • New materials could boost the energy efficiency of microelectronics | MIT News

    New materials could boost the energy efficiency of microelectronics | MIT News

    MIT researchers have developed a new fabrication method that could enable the production of more energy efficient electronics by stacking multiple functional components on top of one existing circuit.

    In traditional circuits, logic devices that perform computation, like transistors, and memory devices that store data are built as separate components, forcing data to travel back and forth between them, which wastes energy.

    This new electronics integration platform allows scientists to fabricate transistors and memory devices in one compact stack on a semiconductor chip. This eliminates much of that wasted energy while boosting the speed of computation.

    Key to this advance is a newly developed material with unique properties and a more precise fabrication approach that reduces the number of defects in the material. This allows the researchers to make extremely tiny transistors with built-in memory that can perform faster than state-of-the-art devices while consuming less electricity than similar transistors.

    By improving the energy efficiency of electronic devices, this new approach could help reduce the burgeoning electricity consumption of computation, especially for demanding applications like generative AI, deep learning, and computer vision tasks.

    “We have to minimize the amount of energy we use for AI and other data-centric computation in the future because it is simply not sustainable. We will need new technology like this integration platform to continue that progress,” says Yanjie Shao, an MIT postdoc and lead author of two papers on these new transistors.

    The new technique is described in two papers (one invited) that were presented at the IEEE International Electron Devices Meeting. Shao is joined on the papers by senior authors Jesús del Alamo, the Donner Professor of Engineering in the MIT Department of Electrical Engineering and Computer Science (EECS); Dimitri Antoniadis, the Ray and Maria Stata Professor of Electrical Engineering and Computer Science at MIT; as well as others at MIT, the University of Waterloo, and Samsung Electronics.

    Flipping the problem

    Standard CMOS (complementary metal-oxide semiconductor) chips traditionally have a front end, where the active components like transistors and capacitors are fabricated, and a back end that includes wires called interconnects and other metal bonds that connect components of the chip.

    But some energy is lost when data travel between these bonds, and slight misalignments can hamper performance. Stacking active components would reduce the distance data must travel and improve a chip’s energy efficiency.

    Typically, it is difficult to stack silicon transistors on a CMOS chip because the high temperature required to fabricate additional devices on the front end would destroy the existing transistors underneath.

    The MIT researchers turned this problem on its head, developing an integration technique to stack active components on the back end of the chip instead.

    “If we can use this back-end platform to put in additional active layers of transistors, not just interconnects, that would make the integration density of the chip much higher and improve its energy efficiency,” Shao explains.

    The researchers accomplished this using a new material, amorphous indium oxide, as the active channel layer of their back-end transistor. The active channel layer is where the transistor’s essential functions take place.

    Due to the unique properties of indium oxide, they can “grow” an extremely thin layer of this material at a temperature of only about 150 degrees Celsius on the back end of an existing circuit without damaging the device on the front end.

    Perfecting the process

    They carefully optimized the fabrication process, which minimizes the number of defects in a layer of indium oxide material that is only about 2 nanometers thick.

    A few defects, known as oxygen vacancies, are necessary for the transistor to switch on, but with too many defects it won’t work properly. This optimized fabrication process allows the researchers to produce an extremely tiny transistor that operates rapidly and cleanly, eliminating much of the additional energy required to switch a transistor between off and on.

    Building on this approach, they also fabricated back-end transistors with integrated memory that are only about 20 nanometers in size. To do this, they added a layer of material called ferroelectric hafnium-zirconium-oxide as the memory component.

    These compact memory transistors demonstrated switching speeds of only 10 nanoseconds, hitting the limit of the team’s measurement instruments. This switching also requires much lower voltage than similar devices, reducing electricity consumption.

    And because the memory transistors are so tiny, the researchers can use them as a platform to study the fundamental physics of individual units of ferroelectric hafnium-zirconium-oxide.

    “If we can better understand the physics, we can use this material for many new applications. The energy it uses is very minimal, and it gives us a lot of flexibility in how we can design devices. It really could open up many new avenues for the future,” Shao says.

    The researchers also worked with a team at the University of Waterloo to develop a model of the performance of the back-end transistors, which is an important step before the devices can be integrated into larger circuits and electronic systems.

    In the future, they want to build upon these demonstrations by integrating back-end memory transistors onto a single circuit. They also want to enhance the performance of the transistors and study how to more finely control the properties of ferroelectric hafnium-zirconium-oxide.

    “Now, we can build a platform of versatile electronics on the back end of a chip that enable us to achieve high energy efficiency and many different functionalities in very small devices. We have a good device architecture and material to work with, but we need to keep innovating to uncover the ultimate performance limits,” Shao says.

    This work is supported, in part, by Semiconductor Research Corporation (SRC) and Intel. Fabrication was carried out at the MIT Microsystems Technology Laboratories and MIT.nano facilities. 

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  • Taiwan probes leaks of vital chip technology

    Taiwan probes leaks of vital chip technology

    Taiwan has begun trade secrets investigations in its critical chipmaking sector under newly broadened national security laws, but the probes have raised eyebrows for who they are targeting: not companies from China but from the island nation’s closest allies.

    Last week, prosecutors charged the local subsidiary of Japanese chip equipment maker Tokyo Electron with failing to prevent alleged theft of trade secrets from Taiwan Semiconductor Manufacturing Company.

    A week earlier, prosecutors raided two homes of former TSMC executive Lo Wei-jen, who joined Intel after he left the Taiwanese company in July, as part of a probe into whether the 75-year-old was sharing “national core critical technology” with his new employer.

    The probe came after TSMC sued Lo for violating his non-compete agreement, saying it was highly probable he “uses, leaks, discloses, delivers or transfers TSMC’s trade secrets and confidential information to Intel”.

    Legal and industry experts in Taiwan said they were glad to finally see investigators getting serious about protecting a technology that had made Taiwan indispensable to the global economy. TSMC is the world’s largest chipmaker and dominates the market for cutting-edge semiconductors.

    But, unexpectedly, the first trade secrets cases under national security laws are not implicating companies from China — long seen as the main culprit in technology theft and the biggest threat to Taiwan’s security — but Tokyo Electron, a supplier, and Intel, a customer and rival. Both companies are from countries viewed as Taiwan’s closest partners.

    The cases have emerged amid concern in Taipei over the reliability of its main security backer given US President Donald Trump’s desire to make a “deal” with China, as well as his remarks about Taiwan “stealing” America’s chip business and allegedly freeriding on defence support.

    An executive at a Taiwanese chip company in the US likened the investigations to a “man bites dog” scenario, saying the probes went against both the narrative that Beijing was poaching Taiwanese talent and Trump’s position that Taiwan had stolen the US’s technological leadership.

    A US executive at a fund invested in semiconductor companies warned that Taipei’s more aggressive protection of its economic security could create risks for its geopolitical security by offending the US.

    “This is not a good look for Taiwan right now,” said the executive. “Do they really think they can afford to go after US efforts to revive its chip manufacturing industry?”

    Under pressure from the Trump administration, TSMC raised its US investment commitment by $100bn to $165bn in March. But Washington has made clear this is not enough. Trump administration officials have said they want 50 per cent of chip manufacturing to happen onshore, far more than TSMC’s expanded capacity can deliver.

    In August, Washington agreed to take a 10 per cent stake in Intel as it aimed to resurrect the struggling company as a national champion of semiconductor manufacturing.

    Neither TSMC nor the prosecution has targeted Intel directly or suggested its involvement in alleged technology theft. Prosecutors are only investigating Lo and have not brought charges against him. But observers suggested Washington could apply political leverage on any Taiwanese legal case.

    “Taiwan has very limited options to refuse US requests and pressure” because it was pursuing a trade deal to lower Washington’s 20 per cent tariff on Taiwanese exports, said James Chen, a professor at Tamkang University in Taipei. It is also seeking US support for President Lai Ching-te’s tough approach towards China.

    Provisions introduced in 2022 made the unauthorised transfer of “national core critical technology” to a foreign entity a national security offence for the first time, with a clear focus on China, to which Taiwan has been losing chip engineers for years.

    In one of the most prominent controversies, Liang Mong-song, a former TSMC research and development executive, joined Semiconductor Manufacturing International Company, China’s largest chipmaker, in 2017 and is now its co-chief executive. He and the many TSMC engineers who followed him are credited with helping SMIC narrow its technology gap with the Taiwanese chipmaker.

    The national security law amendments have raised the risk of such moves and stipulate much higher fines for leaking trade secrets to China than to allies such as Japan and the US.

    But experts said the law still fell short. Tsai Ing-wen, Lai’s predecessor, initially aimed for a government role in initiating trade secrets cases through broad national security powers. The law adopted by parliament only allows prosecutors to move when a Taiwanese company makes a complaint, mirroring the US Economic Espionage Act and similar laws in Japan.

    Investigators are now under pressure to build solid cases. In the instance of Tokyo Electron’s subsidiary, prosecutors have charged former TSMC staff with technology theft, but the indictment of the company only lists a failure to prevent such behaviour, not an accusation of theft itself.

    “They have established the precedent that companies are responsible for building strong internal compliance mechanisms to protect against trade secrets theft,” said Jeremy Chang, chief executive of the Research Institute for Democracy, Society and Emerging Technology under Taiwan’s technology ministry.

    “That could become a key task for everyone in the semiconductor supply chain,” he said, especially as more countries try to onshore chip manufacturing.

    The former TSMC staff who have been charged declined to comment.

    Tokyo Electron said the indictment of its subsidiary did not allege it had directed or encouraged its employee to improperly obtain TSMC technology. The company added that it had measures in place to prevent such behaviour and would strengthen its compliance systems.

    Lo declined to comment. Intel stressed its commitment to internal controls that prohibit the use of third-party technology and said it had no reason to believe there was merit to the allegations involving Lo.

    Observers cautioned that as Taipei worries about securing continued support from Washington, politics might play into prosecutors’ decisions.

    “The government might have some thoughts of intervening or using leverage, but they cannot directly intervene in the judicial system,” said Chen. “This is a very politicised and sensitive issue.”

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  • Oracle shares slide as earnings fail to ease AI bubble fears

    Oracle shares slide as earnings fail to ease AI bubble fears

    Shares of cloud computing giant Oracle plunged more than 10% in after-hours trading on Wednesday after the company’s revenues fell short of Wall Street expectations.

    The company reported revenue of $16.06bn (£11.99bn) for the three months that ended in November, compared with the $16.21bn projected by analysts.

    Revenue growth was up 14%, with a 68% surge in sales at its AI business, Oracle Cloud Infrastructure (OCI), the company said.

    OCI services major AI technology developers whose demand for Oracle’s AI infrastructure helped the company’s shares reach new highs this fall but Wednesday’s results failed to quell fears about a potential AI bubble.

    In September, Oracle agreed a highly sought-after contract with ChatGPT-maker OpenAI, which agreed to purchase $300bn in computing power from Oracle over five years.

    Oracle chairman and chief technology officer Larry Ellison briefly became the world’s richest man in after the announcement.

    But the firm’s shares have lost 40% of their value since peaking three months ago. Still, they are up by more than a third since the start of the year.

    In a statement issued on Wednesday, Mr Ellison struck a cautious tone.

    “There are going to be a lot of changes in AI technology over the next few years and we must remain agile in response to those changes,” he wrote.

    Mr Ellison also appeared to snub Nvidia, the designer of highly-sophisticated AI chips, saying Oracle would buy chips from any maker in order to serve clients.

    “We will continue to buy the latest GPUs from Nvidia, but we need to be prepared and able to deploy whatever chips our customers want to buy,” Mr Ellison declared in a policy he called “chip neutrality”.

    Oracle is involved in multiple AI infrastructure arrangements that have raised the prospect that major players in the sector are participating in ‘circular financing’ deals whereby companies finance purchases of their own products and services.

    “Oracle’s earnings arrive as investors weigh whether its massive OpenAI partnership might mean overexposure with a customer currently in the spotlight over profitability concerns,” said Emarketer analyst Jacob Bourne following the release of the company’s quarterly report.

    Mr Bourne said Oracle faced mounting scrutiny over the increased debt the company has amassed to fund building data centres.

    But others said Wall Street’s negative reaction was unfounded.

    “This was nothing but a great quarter for Oracle,” said Cory Johnson, Chief Market Strategist at Epistrophy Capital Research. “Revenue growth of 14% is accelerating.”

    Including the OpenAI deal from September, Mr Johnson noted, Oracle has signed $385bn in contracts over six months, and “those new clients are the likes of Meta and Nvidia.”

    “But AI sentiment is so bad right now, that’s seen as a bad thing for Oracle,” he added.

    Oracle raised a record $18bn in a massive bond sale in September, one of the largest debt issuances ever in the tech sector.

    “Although Oracle’s shares are buoyed by its September surge, this revenue miss will likely exacerbate concerns among already cautious investors about its OpenAI deal and its aggressive AI spending,” Mr Bourne said.

    The Ellison family, supporters of US President Donald Trump, also recently purchased Paramount and have spearheaded a bid to take over another major Hollywood studio, Warner Brothers Discovery.

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  • Ranking the Leaders and Laggards on Circular Plastics: From Pledges to Pullback

    Ranking the Leaders and Laggards on Circular Plastics: From Pledges to Pullback

    With mounting pressure to tackle plastic pollution, large users and producers of plastic packaging have promised to take action by switching to use or make more sustainable plastics by 2025 and 2030. However, as target deadlines approach fast, not all companies are pulling their weight equally on the journey to achieve a circular economy for packaging.

    BloombergNEF has once again assessed 40 firms – 20 brand owners and 20 plastic producers – to reveal those that are leading the charge to use or develop more sustainable packaging and those that are falling behind. Our analysis reveals patchy progress from both brand owners and plastic producers toward achieving circular economy targets in 2024.

    BNEF’s Circular Economy Company Ranking measures selected companies’ circular economy ambition based on publicly announced targets and commitments from their 2024 company reports. Both brand owners and plastic producers are split into three tiers – leaders, followers and laggards – based on BNEF’s ranking methodology.

    As sustainable packaging target deadlines draw close, 2025 is a pivotal year reflecting the feasibility of achieving the circular economy goals set by companies a few years back. The shifts in the ranking reflect how companies making steady progress continue to remain on top, while others tapping the brakes on their circular economy ambitions are scoring lower and sliding down.

    The companies that moved up the most in the latest ranking are:

    • Asahi Breweries moved up six places after announcing a new target to achieve 100% conversion to recycled or bio-based polyethylene terephthalate (PET) bottles by 2030, from 37% in 2024. Asahi also benefits from rigid packaging such as glass and aluminum that are easier to recycle.
    • Alpek moved up four places. The company has announced plans to expand PET bottle recycling capacity to 300,000 metric tons annually by 2025. Alpek was also among the few producers that did not announce any new virgin plastic expansion plans.

    Companies that moved down in the ranking were:

    • PepsiCo lost its leading position in the ranking, sliding down to 12th place this year. Despite being a circular economy pioneer, PepsiCo dropped its goal to reduce virgin resin use by 50% compared to 2020. The company also lowered its target for recycled content from 50% by 2030 to 40% by 2035.
    • LyondellBasell lost its top spot this year. It performed well overall, achieving a 65% increase in recycled/renewable polymer production to 200,000 tons in 2024. The company has a target to produce 2 million tons of recycled and renewable polymers by 2030. However, the company lost points after announcing virgin plastics production expansion plans in 2025.

    Brands make patchy progress toward recycled content targets

    PepsiCo, Unilever and Coca-Cola were among the brand owners that tapped the brakes on their circular economy ambition, setting new, less ambitious targets with deadlines further out in the future. However, these new targets are likely more achievable, given the underdeveloped supply chains for recycling in many markets.

    Coca-Cola had previously set a goal to achieve 50% recycled content in all packaging by 2030. However, it reduced this target to 35-40% recycled content by 2035. Coca-Cola achieved 28% recycled content in 2024 and benefits from the fact that majority of its packaging comes from easier to recycle materials like PET bottles and aluminum cans, compared to flexible film packaging. Sourcing rigid packaging with recycled content can be easier in markets with mature waste sorting and recycling in place. For example, water bottle brands like Danone’s Evian and Nestle’s Vittel have achieved 100% recycled content for plastic water bottles in Europe.

    In contrast, companies that are dependent on food-contact grade, flexible film-based packaging are falling behind or are stagnant. This is reflected in the ranking with a large set of companies categorized as “followers,” scoring in the range of 50-55%, including Mondelez, Kraft Heinz and PepsiCo. These companies have set circular packaging targets but are failing to source the suitable plastics they require at a reasonable price.

    Despite the slowing ambition, some brand owners are making progress. Colgate-Palmolive increased the recycled content in its plastic packaging from 18% in 2023 to 21% in 2024 and is on track to meet its 25% target for 2025.

    Weak demand and challenging economics hamper producers’ progress

    Of the 20 plastic producers, 13 have set clear targets to produce sustainable (recycled or bio-based) materials by 2030 or earlier. If these 13 companies meet their targets, they alone would supply around 13 million tons of sustainable plastics per year by 2030. Production targets hold the greatest weight in BNEF’s ranking methodology, as this reflects the upper limit of how circular a producer’s polymers will be this decade.

    Indorama, Alpek and Braskem have made the strongest progress toward their production targets in 2024. However, most plastic producers still have a long way to go. Insufficient demand for recycled products is one of the biggest challenges that producers face.

    Nonetheless, plastic producers are seeking out sectors where the demand for high-grade recycled plastics is on the rise and buyers are willing to pay a premium over virgin plastics. For example, Borealis launched a glass-fiber reinforced polypropylene with a 65% post-consumer recycled content for the automotive industry. Sabic introduced a new resin with a 30% post-consumer recycled content used in MSI’s gaming laptops.

    Globally, the chemicals market is facing a supply glut, exacerbated by new primary production capacity coming online in Asia. As a result, several plastic recyclers closed operations in recent years. With record low utilization rates and low or even negative margins, companies have halted or delayed investments in sustainable chemicals production.

    However, some producers have signed offtake agreements or acquired recycling companies, instead of building their own plants. For example, Dow formed a supply agreement with Freepoint Eco‑Systems for 65,000 tons of pyrolysis oil, which is used as feedstock to make plastics with a recycled content. In 2024, Borealis increased its circular production capacity by 18% compared to the previous year, processing 221,200 metric tons of circular feedstock. The company acquired plastic recycler, Integra Plastics in 2024 and acquired a minority stake in Renasci in 2021.

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  • UAE Companies Law Amendments 2025 – Key changes and practical implications : Clyde & Co

    UAE Companies Law Amendments 2025 – Key changes and practical implications : Clyde & Co

    Federal Decree Law No. 20 of 2025 introduces significant amendments to the UAE Commercial Companies Law 2021 (the Law), with effect from 15 November 2025. In this briefing we provide a summary of the key changes and their practical implications.

    These reforms modernise the legal framework, align it with international standards, and introduce new tools for shareholder arrangements, capital structuring, governance, and corporate mobility. 

    The Law is a major step forward for the UAE’s corporate sector, aiming to strike a balance between flexibility and oversight. It introduces useful new mechanisms that can make onshore UAE companies more attractive to investors and easier to manage, while also plugging some gaps (like deadlock resolution and corporate mobility) that previously required workaround solutions. With thoughtful implementation and careful navigation of the remaining uncertainties, in-house counsel and business leaders can use these reforms to better structure joint ventures, facilitate smoother exits, strengthen governance, and protect shareholder value.

    Summary Table of Amendments and Implications:














    Amendment Practical Implications
    Free Zone Companies Clarifies onshore compliance; confirms UAE nationality status.
    Not-for-Profit Companies Enables formal structuring of social ventures; awaiting regulations.
    Drag-Along / Tag-Along Rights Enhances exit mechanisms; in practice may be limited by statutory pre-emption rights for LLCs.
    Succession of Shares Facilitates planning; court valuation may delay execution.
    Multiple Share Classes Enables tailored capital structures; regulations pending.
    In-Kind Contributions New rules to be issued on valuations for private companies; improves transparency.
    LLC Governance Continuity Allows third-party appointments to the board in cases of deadlock; ensures operational stability.
    Re-Domiciliation Preserves legal identity; facilitates strategic moves.
    PJSC Conversion Simplifies IPO preparation; removes procedural hurdles.
    Private JSC Fundraising Opens private placement route; subject to SCA rules

     

    Download the full article here

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  • From Concept to Consensus: ASEAN+3’s Journey Toward a Stronger Regional Financial Safety Net – ASEAN+3 Macroeconomic Research Office

    From Concept to Consensus: ASEAN+3’s Journey Toward a Stronger Regional Financial Safety Net – ASEAN+3 Macroeconomic Research Office

    The global economy continues to navigate an uncertain and uneven path. Emerging challenges to financial stability, including shocks stemming from policy uncertainties in certain advanced economies, geo-economic fragmentation, and trade frictions, have underscored the need for robust global and regional financial safety nets. Against this background, ASEAN+3’s ongoing efforts to strengthen the regional financing arrangement (RFA), notably to explore a “Paid-in Capital” (PIC) structure, have become a cornerstone of regional financial cooperation.

    Established as a network of bilateral swap arrangements in 2010, the Chiang Mai Initiative Multilateralisation (CMIM), which is the RFA for the ASEAN+3 region, has provided the region with a cost-effective mechanism for mutual liquidity support. However, experience and analysis have revealed several structural limitations. The swap-based framework can introduce uncertainty in financing, limit the duration and flexibility of crisis support, and pose operational complexities in coordinating multiple transactions among members. Moreover, the absence of a legal entity constrains the RFA’s ability to manage risks, mobilize resources, and enhance credibility during crises.

    Transition from contractual arrangement to paid-in capital structure

    To address these challenges, ASEAN+3 members have begun in recent years exploring the potential transition of the RFA to a PIC structure—a model that would transform from the CMIM, which is based on a contractual arrangement, into a well-established institution with its own balance sheet and governance framework. Such a shift would allow the RFA to provide timely, credible, and well-governed financial support in response to shocks.

    At the ASEAN+3 Finance Ministers and Central Bank Governors’ Meeting (AFMGM+3) in May 2024, members reached a consensus on the potential benefits of a PIC structure and tasked their Deputies, supported by the ASEAN+3 Macroeconomic Research Office (AMRO, the dedicated international organization supporting the RFA to ensure its operational readiness), to narrow down feasible financing models by 2025.

    Based on AMRO’s analytical studies, Ministers and Governors agreed that a PIC structure could substantially enhance the RFA’s effectiveness in four key areas:

    • Credibility and Effectiveness — Establishing a legal entity with a separate and self-sustained balance sheet would strengthen the RFA’s autonomy, accountability, and ability to deliver predictable financing, strengthening the RFA as a more credible regional safety net.
    • Financial Strength and Stability — Pre-committed funds would ensure pooled resources can be mobilized swiftly to respond to liquidity shortages, while reducing uncertainty on members’ discretionary participation during crises.
    • Operational Efficiency — Centralized management of resources and programs would streamline financial operations, replacing complex bilateral transactions among members with direct and transparent institutional procedures.
    • Robust Risk Management — With sound governance and institutional safeguards, comprehensive frameworks could be developed for credit, liquidity, and operational risk management, shielding members from potential losses and boosting investor confidence.

    To shed more light on these potential benefits for developing a PIC structure, AMRO has conducted extensive consultations and jointly developed with members several prototype models in line with global best practices. When identifying the model best suited for the ASEAN+3 context, members have considered four guiding criteria developed by AMRO: capacity to deliver the RFA’s mandate; feasibility in the ASEAN+3 context, especially in terms of minimizing financial burden and ensuring equitable burden-sharing; the potential to realize the benefits of PIC, including a strong legal entity and robust governance; and financial viability, ensuring long-term sustainability and cost-efficiency.

    Based on this structured assessment, IMF-type models have emerged as the preferred option. Under this type of model, members contribute paid-in capital in reserve assets, local currencies, or in combination of both, drawing from certain features of the IMF financial operations. The model also ensures financing certainty and robust governance within a self-sustained legal entity. It satisfies all four criteria—offering crisis-resilient financing capacity, equitable burden-sharing, room for reserve recognition, and sound financial sustainability.

    Path toward designing an effective PIC structure

    As discussion advances from conceptual exploration to practical design, four critical issues merit particular attention to ensure that the future PIC structure meets ASEAN+3’s operational and institutional needs:

    Financial Viability – Ensure a sustainable capital base while easing pressure on members’ reserves through flexible contribution mechanisms and prudent income management.

    Appropriate Size — Tailor the PIC to a scale that caters to the region’s diverse economic landscape and capacities, balancing financial adequacy with sustainability.

    Strong Safeguards and Governance — Develop a centralized governance system with transparent qualification processes, robust risk management, and coherent program monitoring which are crucial for reserve asset recognition.

    Institutional and Legal Foundations – The PIC will be managed by a legal entity with its own balance sheet and privileges akin to international financial institutions, ensuring operational certainty and accountability.

    The ASEAN+3 RFA’s journey toward a PIC structure reflects a pragmatic, consensus-driven approach to regional financial integration. The focus has evolved from identifying potential benefits to determining how best to implement them through a model tailored to ASEAN+3 realities.

    At the May 2025 AFMGM+3, Ministers and Governors endorsed a proposal from its Task Force to concentrate on the IMF-type model and tasked Deputies—with AMRO’s continued technical and analytical support—to address remaining design issues such as governance, reserve recognition, sizing, and contribution currencies.

    This continued collaboration symbolizes ASEAN+3’s commitment to regional resilience. With the goal of building a credible, well-governed, and financially viable PIC structure, members are taking steps toward enhancing the RFA’s effectiveness and reinforcing the region’s collective ability to respond decisively to future shocks, and eventually turning a shared vision into a lasting institutional legacy.


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  • Microsoft, Amazon bet big, but where does India stand in the global race?

    Microsoft, Amazon bet big, but where does India stand in the global race?

    NurPhoto via Getty Images) A man walks past a display featuring a humanoid robot illustration at the Automation Expo 2025 in Mumbai, India.NurPhoto via Getty Images)

    India is a hedge against the global AI bubble, some experts say

    This week, tech giants Amazon and Microsoft pledged an eye-popping $50bn-plus combined investment in India, putting artificial intelligence (AI) in the spotlight.

    Microsoft’s Satya Nadella announced his company’s largest investment ever in Asia – $17.5bn (£13.14bn) – “to help build the infrastructure, skills, and sovereign capabilities needed for India’s AI-first future”.

    Amazon followed suit, and said it was putting in more than $35bn in the country by 2030, with an unspecified chunk of that investment going into boosting AI capabilities.

    The announcements come at a particularly interesting juncture.

    As fears of an AI bubble swept global markets and tech stock valuations soared, several leading brokerages took a contrarian view on India’s AI landscape.

    Christopher Wood of Jefferies said the country’s stocks were a “reverse AI trade”. That basically means India should outperform other markets in the world “if the AI trade suddenly unwinds” – or simply put, the global bubble bursts.

    HSBC also held a similar view, saying Indian equities offered a “hedge and diversification” for those uneasy with the ongoing AI rally.

    This comes as Mumbai stocks have lagged behind their Asian peers over the past year, with foreign investors moving billions into Korean and Taiwanese AI-driven tech companies in the absence of comparable opportunities in India.

    In this backdrop, the Amazon and Microsoft investments provide a much-needed fillip – yet it remains worth asking where India truly stands in the global AI race.

    AFP via Getty Images Indian undergraduate students work on their computers as they take part in HackCBS, a 24 hour event of software development. Students gathered in teams to take part in a challenge to develop their ideas in the fields of Internet of Things (IoT), Artificial Intelligence (AI) an Blockchain among others. AFP via Getty Images

    India ranks among the top globally in terms of AI talent and developer activity

    There are no easy answers.

    The adoption of AI in India has been rapid. Investments into some parts of the value chain – such as data centres, the physical backbone of AI, or chip-making facilities – have begun trickling in. Just this week, American chipmaker Intel announced a collaboration with Mumbai-based Tata Electronics to manufacture chips locally.

    But when it comes to a sovereign AI model, it appears India is continuing to play catch-up.

    About a year-and-a-half ago, the Indian government launched an AI mission through which it began supplying start-ups, universities and researchers with high-end computing chips to develop a large homegrown AI model like OpenAI or China’s DeepSeek.

    According to the federal electronics ministry, the launch of the sovereign model – which supports more than 22 languages – is imminent. In the interim though, the likes of DeepSeek and OpenAI have made further advances, launching newer variants.

    While the government has recognised the need to reduce over-dependence on foreign platforms because of the risk of surveillance and sanctions, India’s $1.25bn sovereign mission is a shadow of France’s $117bn or Saudi Arabia’s $100bn programmes.

    The country’s ambitions also face numerous other hurdles – from semiconductor availability to skilled talent and fragmented data ecosystems, according to global consultancy EY.

    India currently lacks enough computational infrastructure or the billions of dollars of research and development (R&D) investment made over decades that gave China and the US a distinct leg up.

    Despite its global strength in AI talent, India struggles to keep its developers at home.

    “The current tightening of overseas work visas provides India a window of opportunity to retain domestic talent and attract Indian-origin talent at home. However, given that top-tier AI talent is mobile globally, attractive policy incentives need to be put in place to incentivise relocation to India,” the EY report says.

    China, for example, offers a range of incentives such as “financial support and subsidies, tax incentives and funding for research and development, special talent visas and fast-track immigration”, the report says.

    India has a much higher concentration of AI-skilled professionals than the global average – specifically, 2.5 times more. Policies that retain this talent are not yet in place.

    Bloomberg via Getty Images Industrial chiller at Yotta Data Services data centre, in Navi Mumbai, India. Bloomberg via Getty Images

    India has been attracting billions of dollars of investments into data centres

    Yet, despite the challenges, India – along with countries like Brazil and the Philippines – punches above its weight in AI, especially in the context of its stage of economic development, an UNCTAD (United Nations Conference on Trade and Development) study said.

    According to the widely tracked Stanford AI Index 2025, the country ranks among the top five in the world on new companies receiving AI investments.

    Last year, 74 new Indian AI startups received funding – a fraction of the more than 1,000 funded in the US.

    Indian AI startups raised just $1.16bn privately, compared with over $100bn in the US and nearly $10bn in China.

    But there’s enough intellectual engagement with AI in India, with the country accounting for 9.2% of AI article publications – slightly more than the US, but behind Europe and China according to the Stanford AI Index.

    Experts say India’s AI edge may lie less in building costly language models and more in using them downstream to spur entrepreneurship.

    “I think in the short term, there’s this big concentration of AI in the US. But over the next five-10 years, AI will have a massively democratising effect on the creation of new companies. Small founders and entrepreneurs will be numerous and the downstream effect will be amazing for places like India and the Asia-Pacific,” Shailendra Singh, managing director of Peak XV Partners which invests in AI start-ups, told the BBC.

    Mr Singh says India is seeing a surge in AI-powered consumer apps, with AI startup investments doubling from last year.

    Moreover, many Indian startups are now using AI to tackle real-world challenges for millions still on the wrong side of the digital divide.

    For example, MahaVISTAAR, an AI app run by the Maharashtra government, delivers vital agricultural information in the local Marathi language, reaching over 15 million farmers.

    “The hardest places to make artificial intelligence work are also the places where it matters most. If AI can serve India’s classrooms, clinics and farms, it can serve the world,” Nandan Nilekani, the architect of India’s biometric programme, wrote in The Economist magazine last month.

    Some of that has already begun to happen, as apps like MahaVISTAAR and others have shown.

    AI brings new opportunities, but could disrupt India’s IT services sector, which has driven its economy and created millions of jobs over the past 30 years.

    As AI upends some of their business functions, India’s billion-dollar IT firms will become a key area of “vulnerability”, according to Jefferies.

    That vulnerability is already showing.

    Growth in India’s IT back offices is slowing, stocks are underperforming, hiring has shrunk and wages have stagnated as the spectre of a new disruptor looms large.

    Follow BBC News India on Instagram, YouTube, X and Facebook.


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  • Dollar slides as Fed dents hawks, markets eye two more rate cuts

    Dollar slides as Fed dents hawks, markets eye two more rate cuts

    The dollar fell on Thursday after the Federal Reserve delivered an outlook that was not as hawkish as some had anticipated.

    Oleg Dubyna / 500px | 500px | Getty Images

    The dollar fell on Thursday after the Federal Reserve delivered an outlook that was not as hawkish as some had anticipated, giving investors confidence to short the currency as they bet on two more rate cuts next year.

    The Fed at the conclusion of its two-day policy meeting lowered rates by 25 basis points as expected, but remarks from Chair Jerome Powell at his post-meeting press conference surprised some who had been positioned for a more hawkish tone.

    “For us, the big takeaway was a dovish tilt to the accompanying commentary, and at Fed Chair Powell’s press conference,” said Nick Rees, head of macro research at Monex Europe.

    As a result, investors sold the dollar, which in turn pushed the euro above the key $1.17 level and close to a two-month high of $1.1705 in early Asia trade on Thursday.

    Sterling touched a 1-1/2-month peak of $1.3391, while the yen, which has recently come under pressure from still-wide interest rate differentials between Japan and the rest of the world, rose 0.25% to 155.64 per dollar.

    Against a basket of currencies, the dollar fell to its lowest since October 21 at 98.543.

    “I think most were looking for a rerun of the same hawkish sentiment which we saw in that October FOMC meeting. But this has certainly a different tone about it, the commentary’s different, the T-bill buying supportive, the vote certainly wasn’t as hawkish as everybody expected,” said Tony Sycamore, a market analyst at IG.

    “This is, for me, the green light for risk assets to rally into year-end.”

    Wednesday’s outcome reinforced market expectations for two more rate cuts next year, against the Fed’s median expectation for a single quarter-percentage-point cut next year. 

    The central bank also announced that it would start buying short-dated government bonds to help manage market liquidity levels beginning December 12, with the initial round totaling around $40 billion in Treasury bills.

    That kept bonds supported, with the two-year U.S. Treasury yield falling about 3 bps to 3.5340%. The benchmark 10-year yield was similarly down 3 bps to 4.1332%. Bond yields move inversely to prices. 

    “The earlier start and size of the T-bill purchases surprised investors, leading (to) a meaningful rally led in Treasuries by the front-end,” said analysts at Societe Generale in a note.

    In other currencies, the Australian dollar retreated from a roughly three-month top hit in the previous session and was down 0.14% to $0.66665. The New Zealand dollar eased 0.07% to $0.5812.

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  • ‘Ruined my Christmas spirit’: McDonald’s removes AI-generated ad after backlash | McDonald’s

    ‘Ruined my Christmas spirit’: McDonald’s removes AI-generated ad after backlash | McDonald’s

    McDonald’s says it has removed an AI-generated Christmas advertisement in the Netherlands after it was criticised online.

    The ad, titled “the most terrible time of the year”, depicts scenes of Christmas chaos, with Santa caught in a traffic jam and a gift-laden Dutch cyclist slipping in the snow. And the message? Retreat to a McDonald’s restaurant until January and ride out the festive season.

    But the generative AI advertisement from the Big Mac maker’s Netherlands division sparked a flurry of criticism on social media.

    “This commercial single-handedly ruined my Christmas spirit,” said one user. “Good riddance to AI slop,” posted another.

    McDonald’s Netherlands said in a statement on Wednesday: “The Christmas commercial was intended to show the stressful moments during the holidays in the Netherlands.

    “However, we notice – based on the social comments and international media coverage – that for many guests this period is ‘the most wonderful time of the year’.”

    Melanie Bridge, the chief executive of the Sweetshop Films, the company which made the ad, defended its use of AI in a post on LinkedIn.

    “It’s never about replacing craft, it’s about expanding the toolbox. The vision, the taste, the leadership … that will always be human,” she said.

    “And here’s the part people don’t see: the hours that went into this job far exceeded a traditional shoot. Ten people, five weeks, full-time.”

    But that too sparked online debate.

    Emlyn Davies, from the independent production company Bomper Studio, replied to the LinkedIn post: “What about the humans who would have been in it, the actors, the choir?

    “Ten people on a project like this is a tiny amount compared to shooting it traditionally live action.”

    Coca-Cola recently released its own AI-generated holiday ad, despite receiving backlash when it did the same last year.

    The company’s new offering avoids close-ups of humans and mostly features AI-generated images of cute animals in a wintry setting.

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  • Asian Stocks Gain on Fed Cut, Nasdaq Futures Drop: Markets Wrap

    Asian Stocks Gain on Fed Cut, Nasdaq Futures Drop: Markets Wrap

    (Bloomberg) — Asian equities tracked gains on Wall Street after the Federal Reserve cut interest rates and Chair Jerome Powell voiced optimism that the US economy will strengthen as the inflationary impact from tariffs fades away.

    The MSCI Asia Pacific Index was up 0.5% after the S&P 500 rose 0.7% on Wednesday, just short of all-time highs, and the Russell 2000 gauge of small-caps jumped to a record. Bonds rallied as the Fed’s quarter-point rate reduction was accompanied by the authorization of fresh Treasury bill purchases to rebuild bank reserves.

    Nasdaq 100 futures were down 0.5% in early Asia trading after the bullish broader sentiment was dealt a blow by disappointing results from Oracle Corp. as markets closed in New York. Shares of the company, whose fate is deeply tied to the artificial intelligence boom, plunged in post-market trading. Nvidia Corp.’s stock also edged lower.

    Delivering a third consecutive cut, Powell suggested the Fed had now acted sufficiently to help stabilize the labor market while leaving rates high enough to continue weighing on price pressures. The reduction and the Fed’s tone matched Wall Street expectations for a “hawkish cut” as officials left intact their outlook for a single cut in 2026. They upgraded their median estimate for growth.

    “The combination of stronger growth expectations and softer inflation forecasts has increased market expectations for Fed rate cuts,” said Tomo Kinoshita, global market strategist at Invesco Asset Management Japan Ltd. “In Asia, I anticipate a positive tone for equities and currency appreciation. Export-oriented stocks should benefit from improved US growth prospects.”

    The US 10-year yield edged one basis point lower on Thursday. It dropped around four basis points in the previous session, stalling a prior run up in yields that pushed one global gauge to its highest since 2009. The policy-sensitive two-year yield fell eight basis points on Wednesday.

    In Asia, traders will be watching an auction of 20-year Japanese government bonds today as well as an interest-rate decision in the Philippines, where the central bank is predicted to cut its key interest rate for a fifth straight meeting.

    Meanwhile, Mexican lawmakers gave final approval for new tariffs on Asian imports, broadly aligning with US efforts to tighten trade barriers against China, as President Claudia Sheinbaum seeks to protect local industry.

    Elsewhere in markets, a gauge of the dollar edged lower after falling 0.4% on Wednesday. In commodities, gold held gains after the Fed cut while silver pushed to new highs. Oil extended an advance after the US seized a sanctioned tanker off Venezuela, deterring more shipments from the South American producer and raising the risk of a conflict.

    In Australia, the Aussie dollar dipped while bonds and stocks extended gains after data showing the economy unexpectedly shed jobs in November was seen weakening the case for rate hikes.

    Nine out of 12 voters on the Fed’s rate-setting committee supported the decision to lower rates. Powell also underscored the importance of upcoming economic reports while advising caution on assessing household jobs readouts, given technical distortions after a government shutdown caused a data blackout.

    The impact of President Donald Trump’s on-again, off-again tariff offensive has been a key consideration in how the Fed approaches efforts to bring inflation back down to its 2% target. Without the levies, inflation is probably “in the low 2s” right now, Powell said at the press conference following the decision. And their impact is likely to weaken in the second half of next year.

    Nick Twidale, chief analyst at AT Global Markets in Sydney, said he is “hesitant” on how much momentum the Fed’s cut will bring to global markets as “the forward guidance was probably less dovish than most investors were hoping for.”

    “We may see some fairly choppy markets in the sessions ahead as the market digests what Jerome Powell had to say,” he said.

    Corporate News

    SK Hynix Inc. fell after South Korea’s main bourse issued a higher-level warning on investing in the stock following strong gains sparked by expectations of a listing in New York. President Donald Trump signaled he’ll oppose a Warner Bros. Discovery Inc. deal that doesn’t include new ownership of CNN, a potential wrinkle for the bid from Netflix Inc. Japan’s stock market is witnessing a record wave of large private transactions known as block trades, stemming from companies reducing cross-shareholdings to improve corporate governance. Chinese artificial intelligence startup DeepSeek has relied on Nvidia Corp. chips that are banned in the country to develop an upcoming AI model, according to a new report in The Information. Coca-Cola Co. said Chief Executive Officer James Quincey is stepping down and will be replaced at the end of March by Henrique Braun, the company’s chief operating officer. Some of the main moves in markets:

    Stocks

    S&P 500 futures fell 0.3% as of 10:43 a.m. Tokyo time Japan’s Topix fell 0.2% Australia’s S&P/ASX 200 rose 0.5% Hong Kong’s Hang Seng rose 0.9% The Shanghai Composite was little changed Currencies

    The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1703 The Japanese yen rose 0.2% to 155.68 per dollar The offshore yuan was little changed at 7.0571 per dollar The Australian dollar was little changed at $0.6672 Cryptocurrencies

    Bitcoin fell 1.5% to $90,990.76 Ether fell 2.2% to $3,266.04 Bonds

    The yield on 10-year Treasuries was little changed at 4.14% Japan’s 10-year yield declined 1.5 basis points to 1.940% Australia’s 10-year yield declined seven basis points to 4.74% Commodities

    West Texas Intermediate crude rose 0.7% to $58.89 a barrel Spot gold rose 0.2% to $4,237.14 an ounce This story was produced with the assistance of Bloomberg Automation.

    –With assistance from Winnie Hsu and Richard Henderson.

    ©2025 Bloomberg L.P.

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