The new collaboration will rely on UL Solution’s ULTRUS software portfolio, a digital platform built to simplify how enterprises manage supply chains, regulations, and sustainability practices, and Fujitsu’s established network of clients. Together, they hope to offer more localised, effective solutions for Japanese businesses managing a range of operational and compliance needs.

Fujitsu will also use UL Solutions’ UL 360 software, part of the broader ULTRUS platform, to help customers track and report on environmental, social and governance (ESG) data. The goal is to help customers remain compliant with changing sustainability reporting rules and standards, particularly the new standards set by the Sustainability Standards Board of Japan (SSBJ). These are aligned with the International Sustainability Standards Board (ISSB), set up by the International Financial Reporting Standards Foundation.

The SSBJ’s new standards encourage companies to report on their sustainability and climate-related metrics, reflecting a trend where a growing number of countries are requiring businesses to be completely accountable and transparent about their ESG practices. Currently, companies in Japan can choose to apply these standards voluntarily and strictures and requirements are not expected to become mandatory until 2027.

The new standards are built on earlier efforts already in place in the country, specifically the rules set by the Tokyo Stock Exchange and Japan’s Financial Services Agency (FSA). The SSBJ’s standards reinforce the growing expectation for publicly-listed Japanese companies to disclose sustainability-related information.

Hidehiko Yamajo, Regional Vice President of UL Solutions in Japan, spoke about the importance of ESG reporting, saying, “For long-term business success for companies in Japan, strong ESG reporting is no longer a side issue but a core need for companies.”

He said the latest partnership will “help companies navigate these complex ESG reporting demands,” and let businesses “manage their data easily, meet new reporting requirements, and ultimately create real business value.”

Hidenori Ito, Senior Vice President and Head of the Cross-Industry Solutions Business Unit of Fujitsu, says Fujitsu has been using technology and data to drive ESG management. “Fujitsu is consolidating all internal and external data, strengthening disclosure and regulatory compliance, and promoting rapid management decision-making through financial and non-financial analysis to realize ESG management.”

Ito highlighted how Fujitsu Uvance, Fujitsu’s business model focuses specifically on addressing social and sustainable issues, and the partnership will be used to “integrate Fujitsu’s technologies, like AI and blockchain technology, […] cultivated through collaboration with UL Solutions and our own practices.”

UL Solutions and Fujitsu’s collaboration represents the latest strategic effort to combine regulatory expertise with technology to advance ESG and sustainability practices in Japanese industry, with an end goal of helping establishments meet evolving disclosure standards worldwide.

(Image source: “WWJD #35 2007 outlet pipe in use” by Division of Water Resources is licensed under CC BY 2.0.)  

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Hitachi Energy has completed a migration to Windows 11 on more than 40,000 desktops in 12 countries. The company used ManagementStudio to help it complete the task, which it began in November 2023 starting with a 500-device pilot. The full migration process began in March 2024, and was scheduled to end in October 2024.

ManagementStudio assessed the company’s assets to be 45,335 devices, with 43,568 devices determined as suitable for upgrade. Out of the 3,034 applications in use, 2,330 were deemed to be compatible with Windows 11 (76%).

Eventually, around 40,600 devices made the upgrade to Windows 11 (89%), and the remaining ineligible devices had to settle for an upgrade to the latest version of Windows 10.

ManagementStudio was also used by Hitachi Energy to support the company’s divestment from ABB in June 2020. The platform helped IT staff manage the exit from the Transition Service Agreements (TSA) with ABB inside three years, ending June 2023. The early exit helped the company avoid additional costs that would have been incurred had the transition been delayed.

Marco Rena, Global Head of End User Computing at Hitachi Energy, said the goal of Windows 11 migration was to “upgrade [Hitachi Energy’s] estate with minimal manual intervention and [avoid] the need to individually test every application. The scope was to undergo a readiness migration to verify application and hardware compatibility. This was achieved using ManagementStudio and integrating it with Intune, Active Directory, Flexera Service and ServiceNow. And, we also integrated ManagementStudio with PowerBI to generate […] reports.”

The timescale of the migration was reportedly faster than average. Hitachi Energy managed to upgrade nearly 10,000 devices in May 2024 alone, using the ManagementStudio platform to automate the migration process, following predefined criteria.

Reasons to and method of upgrade to Windows 11

Rena explained how Hitachi Energy implemented its Windows 11 upgrade using a ‘by exception’ approach. “By requesting pilot users from all areas of the business, Hitachi Energy was able to run the new operating system for a few weeks and catch any application issues that occurred. Once the pilot device was approved, its application portfolio could be considered compatible and used as the basis for confidently selecting more desktops throughout the business.”

The pilot helped ensure a reliable, smooth migration by resolving any issues early on, before the upgrade was rolled out on a larger scale.

As Windows 10 approaches its end-of-support in the Autumn this year, moving PC fleets to supported and secure operating systems will help lower the instances of cybersecurity issues. The March ‘Patch Tuesday’ update from Microsoft contained security updates to address 57 known flaws, including six actively-exploited zero-day vulnerabilities, and six vulnerabilities that were marked as ‘Critical’, each of which was a remote code execution vulnerability.

Given the ubiquity of Microsoft operating systems on enterprise desktops, organisations should be considering their options ahead of the cut-off in a few months. If more time is required for the upgrade to Windows 11, users can pay on a per-seat basis for a further 12 months support from Microsoft.

(Image source: “Old banger” by 70023venus2009 is licensed under CC BY-ND 2.0.)

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NTT DATA, a digital business and IT services provider, has released a new research report exploring the use of generative AI in the global banking sector. The report, ‘Intelligent banking in the Age of AI,’ highlights a division in the banking industry’s views on the impact of GenAI technology. Although GenAI’s adoption continues to increase in the banking sector, financial institutions are divided on whether it leads to improved efficiency and productivity, or helps reduce operational IT costs.

According to the report, 50% of banks believe GenAI can be used to improve productivity and efficiency, while 49% consider it beneficial for reducing IT expenditure.

In theory, the banking sector benefits from a wealth of opportunities through GenAI with its power to introduce advanced intelligence into all aspects of the banking industry. It has already proven beneficial in optimising some aspects of the banking ecosystem from handling transactions to operating apps and websites.

According to NTT DATA’S research, 58% (6 in 10) organisations have already implemented GenAI, up 13% from 2023, marking a growing trend of banking institutions adopting advanced AI technologies in their operations.

Head of Global Marketing & Communications at NTT DATA, Robb Rasmussen, commented on the impact GenAI can have on the banking industry, as well as the challenges faced when adopting such technology.

“Generative AI represents a pivotal moment for the banking industry. While the potential benefits are enormous, the challenges of implementing GenAI are complex and varied, requiring careful navigation and a structured approach,” he said.

According to Rasmussen, ROI is important when considering the high costs of GenAI implementation.

“Many banks will be expecting GenAI to drive long-term savings by automating IT tasks, improving operational efficiency, and creating competitive advantages, but it’s important to note that achieving meaningful ROI requires a clear strategy, tailored implementation, and robust governance at the same time.”

While achieving a ROI is a major focus for banks when integrating GenAI, there is still a divide in how banking leaders view the most effective strategies for using the technology. Historically, banks have struggled to improve productivity, and GenAI is seen as a potential solution. However, only half of banking leaders believe it will be effective in solving productivity issues, according to NTT DATA’s report.

Similar to the 49% who don’t believe GenAI can improve IT cost optimisation, there seems to be a split in perspectives, emphasising uncertainty or differing views in the banking sector on how beneficial GenAI will be in achieving these goals.

Robb Rasmussen spoke of the challenges and strategies for successfully implementing GenAI, saying, “It is clear that the ability to balance innovation with fiscal responsibility will define success for banks. However, many banks are lacking in maturity when it comes to this technology and are unsure where to start.”

Rasmussen suggests that partnering with systems integrators, of which NTT is one, can help banks navigate the complexities of GenAI adoption. He said it could be “a good starting point, allowing [banks] to access the latest knowledge while ensuring compliance with industry regulations.”

NTT DATA’s research was conducted globally, surveying 810 financial leaders from all global banking markets. The disparity regarding the effectiveness of GenAI can be seen worldwide, with 59% of US banks being more focused on reducing IT and operations budgets, and 47% aiming to reduce or minimise operations costs.

In contrast, just 43% of banks in Europe are overly concerned with IT budgets, while only 36% are focused on reducing operational costs. Productivity remains a factor for European banks, with 46% highlighting it as a priority. Nevertheless, compared to their US and APAC counterparts, Europe’s banks place less emphasis on improving productivity through GenAI.

The report’s data reveals differing strategies for realising the benefits of GenAI in certain organisations and regions. 51% of the respondents said they focus on collaboration between humans and AI, with 47% taking a hybrid approach and have systems already in place.

That being said, 28% of the banks surveyed aim to achieve “full automation” of certain tasks, eliminating the need for any manual input or human intervention. The hope is that this will streamline processes and improve efficiency.

On a global scale, the full automation of tasks in the banking sector also shows mixed opinion. In Europe and the UK, around a quarter of banks are planning on fully automating processes, while around a third of US and Japanese banks have the same goal.

Mass implementation of GenAI in the banking sector is underway, but challenges remain. While some banks are seeing the early benefits of the technology, others are struggling with certain hurdles, like implementation complexities, and ensuring a clear ROI. As NTT DATA’S report suggests, strategic approaches and collaborations are required to ensure the positive impact of GenAI in the sector.

See also: Using serverless solutions to harness generative AI capabilities

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Becoming a global leader in AI is a top priority for Japan, and it’s all starting with AI-driven language models. Japanese tech experts are working on advanced AI models that understand the country’s unique cultural and linguistic nuances. This is opening up new possibilities for developers in industries that demand high precision, like healthcare, finance, and manufacturing.

And it’s not just a solo mission—major consulting firms like Accenture, Deloitte, EY Japan, FPT, Kyndryl, and TCS Japan—are teaming up with NVIDIA to establish innovation hubs throughout Japan. The centres aim to help companies fully embrace AI, both in enterprise use and physical applications. They’re using NVIDIA’s AI software, language models tailored to the Japanese language, and NVIDIA’s NIM microservices to build customised AI tools that suit specific industry needs. Essentially, it’s about creating a digital workforce that boosts productivity across the board.

One of the most exciting tools here is NVIDIA’s Omniverse platform, which lets Japanese companies make digital twins (virtual copies of real-world assets) and test complex AI systems before rolling them out in the real world. For industries like manufacturing and robotics, this tech is a huge advantage, helping them refine processes and make smart tweaks without taking on real-world risks. With AI integrated into these strongholds of Japanese industry, the country’s well on its way to addressing some of its toughest challenges.

Japan is facing a shrinking workforce due to an ageing population; a serious issue in the country. But Japane’s strength in robotics and automation puts it in a good position to tackle the problem with AI-powered solutions. Japan’s government recently released a report underscoring its ambition to be “the world’s most AI-friendly country,” clearly signalling AI’s role in its future.

And the numbers are backing up this commitment. IDC reports that Japan’s AI market hit $5.9 billion value this year, marking a solid 31.2% year-on-year growth. In Tokyo and Kansai, newly opened consulting hubs are primed to give companies hands-on experience with NVIDIA’s cutting-edge AI tech and guidance to help accelerate AI adoption. For Japan, this isn’t just about tech—it’s about solving real-world social challenges and driving long-term economic growth.

Building Japan’s AI backbone with cloud leaders

The country’s top cloud providers—SoftBank Corp., GMO Internet Group, KDDI, Highreso, Rutilea, and SAKURA Internet—are all-in on building AI infrastructure with NVIDIA’s support, focusing on industries like robotics, automotive, healthcare, and telecom. With backing from Japan’s Ministry of Economy, Trade, and Industry (METI), the cloud providers are setting up AI data centers across the country to support both local and national development, equipped with NVIDIA’s high-performance accelerated computing.

According to NVIDIA CEO Jensen Huang, Japan has huge potential to gain from the AI era. “Japan’s companies stand to benefit tremendously from the new industrial revolution powered by AI,” Huang said. “Employees will see their productivity soar with AI agents taking over repetitive tasks. The factories of tomorrow will operate in dual mode—AI factories generating software intelligence alongside traditional factories.”

One standout partnership is between NVIDIA and SoftBank Corp., one that will have a big impact on fast-tracking Japan’s AI goals. During his keynote at the NVIDIA AI Summit Japan, the NVIDIA CEO announced that SoftBank is building Japan’s most powerful AI supercomputer using the NVIDIA Blackwell platform, and has plans to use the NVIDIA Grace Blackwell platform for its next big project. SoftBank isn’t just aiming for tech leadership in Japan—it’s also setting its sights on new revenue opportunities in telecommunications globally.

SoftBank’s already tested out the world’s first combined AI and 5G telecom network using NVIDIA’s AI Aerial platform, a breakthrough that could open up new revenue streams for telecom providers worldwide. In addition, SoftBank is working on an AI marketplace to meet the growing demand for secure, local AI computing in Japan. The marketplace could turn SoftBank into a central hub for AI services, supporting businesses, consumers, and enterprises across the country.

“Japan has a long history of pioneering technological innovations with global impact,” Huang said. “With SoftBank’s significant investment in NVIDIA’s AI, Omniverse, and 5G AI-RAN platforms, Japan is taking a leap into the AI industrial revolution. This shift is expected to benefit sectors like telecommunications, transportation, robotics, and healthcare in ways that will ultimately advance society.”

SoftBank’s CEO Junichi Miyakawa echoed the optimism, saying, “Through our close partnership with NVIDIA, SoftBank is leading the AI-driven transformation of society. With our powerful AI infrastructure and our new AI-RAN solution ‘AITRAS,’ which reinvents 5G networks for AI, we’re accelerating innovation across Japan and beyond.”

Japan’s vision for an AI-driven future

SoftBank is about to receive the world’s first NVIDIA DGX B200 systems for its new DGX SuperPOD supercomputer, which will not only support SoftBank’s own AI projects but also those of universities, research centres, and businesses, right across Japan. Expected to be Japan’s most powerful AI machine yet, it’s perfect for developing large language models and managing high-performance compute tasks.

SoftBank has even bigger plans: it’s working on a second NVIDIA-accelerated supercomputer that’s optimised for extremely intensive workloads. This system, based on the NVIDIA Grace Blackwell platform, combines NVIDIA Blackwell GPUs with energy-efficient Arm-based NVIDIA Grace CPUs to take AI in Japan to the next level, solidifying the country’s position as a leader in AI.

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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Japan’s National Institute of Advanced Industrial Science and Technology (AIST) is partnering with US chipmaker Intel to build a semiconductor research centre.

The facility, expected to be completed within three to five years, will focus on extreme ultraviolet (EUV) lithography, essential for producing semiconductors at the 5-nanometer scale and smaller. This will be the first centre in Japan where several businesses will have the opportunity to use EUV equipment for prototyping and testing.

AIST will operate the facility under Japan’s ministry of economy, trade, and industry, while Intel will contribute its expertise in EUV-based chip manufacturing. The project’s investment is estimated to reach hundreds of millions of dollars. EUV technology is important for enhancing chip performance, which involves the ability to place numerous transistors on smaller chips. Given that each EUV machine costs more than 40 billion yen ($273 million), accessing this technology can be quite challenging for individual companies.

Until now, Japanese companies have had to rely on overseas facilities, such as Belgium’s Imec research centre, to access EUV equipment. With the new centre, Japan can conduct advanced semiconductor research domestically, without depending on foreign institutions. This development is particularly significant in light of the increasing restrictions on the export and cross-national use of EUV-related technology, driven by US-China tensions. It underscores the current focus on localising critical technology rather than relying on foreign providers.

ASML Holding of the Netherlands dominates the EUV equipment market, but chip production involves over 600 specialised processes. Japan, home to major semiconductor companies like Lasertec and JSR, which lead in EUV inspection and EUV materials production, will benefit greatly from cooperation with Intel. Strengthening ties between Intel and Japanese semiconductor equipment suppliers will help Japan boost its long-term innovation capacity which has yet to return to the heady days of the so-called Asian Tiger period of the 1980’s.

Relationship between Intel and Japan

Beyond EUV, Intel has announced a partnership with 14 Japanese companies to automate the back-end chipmaking processes including packaging. Back-end processes are becoming as important as front-end processes, which involve stacking chips to improve performance, as chip manufacture approaches physical limits. The partnership, which includes companies like Omron, Yamaha Motor, Resonac, and Shin-Etsu Polymer, will be led by Kunimasa Suzuki, head of Intel’s Japanese division. The partners plan to invest billions of yen and develop automated back-end technology by 2028.

Automation is viewed as key for shifting chip production to higher-cost regions like Japan and the US, where labour shortages and rising expenses present challenges in manual assembly production lines. Intel and its partners will construct a trial back-end production line in Japan, planning for full automation that could also mitigate the country’s shortage of chip engineers, a problem exacerbated by competition from firms like Taiwan Semiconductor Manufacturing Co. (TSMC) and Rapidus.

Japan is a key player in the global semiconductor supply chain, accounting for about a 30% share of production equipment and almost 50% of materials. The Japanese government decided to provide the industry with additional support to boost domestic semiconductor development, allocating 4 trillion yen ($26 billion) from 2021 to 2023 alone. In April of this year, 53.5 billion yen in aid was approved for Rapidus, an organisation attempting to start mass production of the next generation of semiconductors. The government is also considering potential incentives for foreign companies to participate in the local semiconductor ecosystem.

A similar context frames the cooperation between Japan and the US which aims to reduce geopolitical risks in the semiconductor supply chain. Since the final production stage, or back-end, is currently concentrated in China—accounting for 38% of global capacity—localising production to avoid potential disruptions is becoming increasingly important for maintaining competitiveness.

In addition to Intel, other semiconductor giants, namely TSMC and Samsung Electronics, are opening research centres in Japan to focus on producing back-end chips. Market analysts also predict that the global back-end chip market will grow by 13% and reach $12.5 billion value in 2024.

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Organizations and governments worldwide, including Japan, face the dual challenge of mitigating risks and embracing the rapid advancements in AI. This involves managing uncertainties while also accelerating innovation and adoption to reap the benefits of this transformative technology.

Japan’s unique position in AI

Although Japan is known for its cautious approach to risk, it is also renowned for its innovative contributions to technology, particularly in smart robotics and automotive AI. However, reports suggest that Japan’s prowess in AI-powered hardware does not equally extend to its software capabilities, making it reliant on foreign large language models for generative AI.

Japan faces unique AI development and adoption hurdles, including limited data availability and cultural attitudes towards business risk. These factors complicate the integration of AI technologies within traditional business frameworks.

A recent study by Barracuda, titled ‘SMB cyber resilience in Japan: Navigating through doubt to an AI-powered future,’ examines AI’s impact on small to medium-sized businesses (SMBs) in Japan. It reveals a mix of optimism about AI’s benefits and concerns about security, knowledge, and skill gaps.

The research underscores general optimism among smaller Japanese organizations about the positive effects of AI on business operations. The majority of these businesses anticipate that adopting AI solutions will lead to workforce reductions over the next two years—66% foresee fewer full-time employees, and 70% expect to rely less on freelancers and contractors. This trend is expected to lower costs and reduce the human resource demands on companies, though it also highlights a precarious future for workers in roles vulnerable to automation.

In addition to cost reduction, businesses expect AI to enhance operational efficiencies across various functions, including marketing and customer relations. Approximately 67% predict that AI tools will produce over half of their content soon, and 60% believe AI will become the primary interaction point for customers. Moreover, thanks to AI, 76% anticipate quicker and more accurate customer insights.

Strengthening cybersecurity through AI

On a broader scale, 65% of respondents are confident that AI tools can streamline their cybersecurity needs, reducing reliance on human security teams or third-party services. Given Japan’s acute shortage of cybersecurity professionals, integrating AI for automated threat detection and response is seen as essential for enhancing security across all business sizes.

Most organizations recognize the need for external assistance to fully leverage AI for business benefits. A significant majority of businesses surveyed—76%—indicate the necessity of partners for researching and exploring AI. The same proportion (77%) seek help with implementing AI solutions and managing these technologies on an ongoing basis. Security vendors and managed service providers in Japan are well-positioned to help smaller businesses exploit AI’s advantages.

The release of ChatGPT by OpenAI in November 2022 showcased the capabilities of generative AI tools in creating natural, engaging dialogues. Despite widespread attention, businesses exhibit cautious engagement with generative AI. Awareness does not equate to comprehensive understanding; 56% grasp the distinctions between generative AI and other AI types like machine learning, while 44% admit to limited or no understanding. Consequently, many Japanese companies impose restrictions on AI use due to potential risks.

Approximately 69% of businesses perceive risks with workplace generative AI usage. While 18% permit its use—6% broadly and 12% in limited team settings—62% do not officially sanction it, suggesting covert use that may heighten security risks. Concerns also include data protection (57% of respondents), the absence of regulatory frameworks (47%), and opaque AI decision processes (31%). Additionally, 13% fear AI systems being compromised by cyber attackers.

AI and cyber threat evolution

There’s notable uncertainty about AI’s role in evolving cyber threats. About 55% of businesses are unsure how AI could be utilized in email attacks, with similar uncertainty extending to denial-of-service (62%), malware (57%), API attacks (56%), and cyber espionage (55%).

Despite these uncertainties, email threats remain a prominent concern for Japanese small businesses, with 53% highlighting account takeover attacks as a top threat. This form of identity theft allows attackers to misuse accounts, potentially leading to phishing scams, data theft, and more. Other significant threats include phishing and social engineering (37%), with ransomware also critical (39% reported it as a top concern, predominantly initiated via email).

Survey participants generally understand the role of AI in fortifying cyber defenses, especially in areas like email security and employee cybersecurity training. However, there’s some ambiguity about AI’s effectiveness in other domains, possibly due to these areas being less familiar to smaller enterprises.

When asked which AI-enhanced security measures would improve their organizational safety, 36% pointed to AI-enhanced email security, especially against sophisticated threats like deepfakes. Another 24% believed AI could support more tailored, frequent training programs. The benefits of AI in continuous threat intelligence and response, as performed by Security Operations Centers (SOCs), were not as clearly understood.

The survey reveals a deficiency in AI-specific practices and policies needed for responsible AI usage. While 52% of businesses conduct employee training on AI use and vulnerabilities, only 35% have formal policies dictating AI usage. Even fewer have comprehensive governance structures in place, such as legal frameworks. This indicates a lack of control and management over AI applications within businesses.

The latest ICS2 Cybersecurity Workforce Study shows that Japan has nearly half a million cybersecurity professionals, a notable 23.8% increase from the previous year, contrasting with a global average of 8.7%. Despite this growth, the demand far exceeds supply, with a shortage of 110,254 professionals, marking a 97.6% increase year-over-year — significantly higher than the global average of 12.6%. This gap is unprecedented compared to other nations evaluated in the ICS2 study.

This macro perspective mirrors smaller businesses’ daily challenges, particularly with AI-driven cyber threats.

Makoto Suzuki, Regional Sales Director for Japan at Barracuda, highlights the survey’s findings: Japanese SMBs recognize AI’s benefits for enhancing business productivity but remain cautious about the cyber threats it poses. Suzuki notes, “This could hold businesses back from harnessing the full potential of AI to revolutionize business performance and competitiveness by optimizing processes, reducing costs, improving quality, and providing new insights and ideas.”

The post How Japan balances AI-driven opportunities with cybersecurity needs appeared first on TechWire Asia.

In semiconductor manufacturing, there is a battle raging between Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics. As the demand for advanced chips skyrockets in the era of AI, 5G, and the Internet of Things (IoT), the competition between these industry giants has intensified, with each vying for dominance in the lucrative chip market.

Not too long ago, in a compelling twist unveiled during Samsung Electronics’ fourth-quarter financial disclosure of 2023, whispers of a meaningful deal echoed through the tech sphere: the company’s foundry division had clinched a coveted contract for 2-nanometer (nm) AI chips. At that point, shrouded in mystery, Samsung kept the identity of this pivotal partner concealed. 

Earlier this week, a revelation from Business Korea unveiled the patron: Japanese AI startup Preferred Networks Inc. (PFN). Since its inception in 2014, PFN has emerged as a powerhouse in AI deep learning, drawing substantial investments from industry giants like Toyota, NTT, and FANUC, a leading Japanese robotics firm.

Samsung vs TSMC

Samsung, headquartered in Suwon, South Korea, is set to unleash its cutting-edge 2nm chip processing technology to craft AI accelerators and other advanced AI chips for PFN, as confirmed by industry insiders on February 16, 2024. 

Should news of this landmark deal be legitimate, it would prove mutually advantageous. It empowers PFN with access to state-of-the-art chip innovations for a competitive edge while propelling Samsung forward in its fierce foundry market rivalry with TSMC, as per insider reports.

Ironically, PFN has had a longstanding partnership with TSMC dating back to 2016 but is opting to shift gears hereon, going for Samsung’s 2nm node for its upcoming AI chip lineup, according to a knowledgeable insider. PFN also chose Samsung over TSMC due to Samsung’s full-service chip manufacturing capabilities, covering everything from chip design to production and advanced packaging, sources revealed.

Experts also speculate that although TSMC boasts a more extensive clientele for 2nm chips, PFN’s strategic move to Samsung hints at a potential shift in the Korean giant’s favor. This pivotal decision may pave the way for other significant clients to align with Samsung, altering the competitive landscape in the chipmaking realm.

No doubt, in the cutthroat world of contract chipmaking, TSMC reigns supreme, clinching major deals with industry giants like Apple Inc. and Qualcomm Inc. But, as the demand for top-tier chips escalates, the race for technological superiority is heating up, with TSMC and Samsung at the forefront of the battle. While TSMC currently leads the pack, boasting 2nm chips for clients like Apple and Nvidia, Samsung is hot on its heels. 

“Apple is set to become TSMC’s inaugural customer for the 2nm process, positioning TSMC at the forefront of competition in the advanced process technology,” TrendForce stated in its report. Meanwhile, according to Samsung’s previous roadmap, its 2nm SF2 process is set to debut in 2025. 

“As stated in Samsung’s Foundry Forum (SFF) plan, Samsung will begin mass production of the 2nm process (SF2) in 2025 for mobile applications, expand to high-performance computing (HPC) applications in 2026, and further extend to the automotive sector and the expected 1.4nm process by 2027,” TrendForce noted.

Compared to the second-generation 3GAP process at 3nm, it offers a 25% improvement in power efficiency at the same frequency and complexity and a 12% performance boost at the same power consumption and complexity while reducing chip area by 5%. In short, with TSMC eyeing mass production of 2nm chips by 2025, the competition between these tech titans is set to reach new heights.

Yet, in a strategic maneuver reported by the Financial Times, Samsung is gearing up to entice customers with discounted rates for its 2nm process, a move poised to shake up the semiconductor landscape. With its sights set on Qualcomm’s flagship chip production, Samsung aims to lure clients away from TSMC by offering competitive pricing. 

This bold initiative signals Samsung’s determination to carve out a larger market share and challenge TSMC’s dominance in the semiconductor industry.

https://www.youtube.com/watch?v=Whr-r9tBb0c

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With a strong focus, NEC is riding the wave of AI enthusiasm this year. Standing out in its portfolio is its bespoke LLM, tailored specifically for the Japanese market. The model operates with a substantial 13 billion parameters, starkly contrasting the trillion parameters utilized by OpenAI’s GPT-4.

Introducing the NEC generative AI service

The firm has announced the launch of its NEC generative AI service, which will begin by offering licenses for its unique LLM, along with specialized hardware, software, and consulting services. This initiative is set to expand into new markets beyond the fiscal year 2024.

In a strategic move, NEC has teamed up with around ten companies and universities to kick off the NEC generative AI advanced customer program starting in July. This program is designed to collaborate with clients in developing tailored models and advancing software and organizational structures for the effective use of LLM.

NEC has also begun the development of the NEC generative AI hub. This hub fosters business transformation by providing customers access to a pool of researchers, engineers, and consultants. These experts are tasked with delivering precise guidance for creating bespoke AI systems.

The introduction of these services is poised to significantly broaden the scope for operational transformation across diverse sectors, including healthcare, finance, municipal governments, and manufacturing. Furthermore, NEC is focusing on crafting specialized models to spearhead business transformation and enhance generative AI applications from single businesses to entire industry sectors through its managed API services.

NEC’s impact across industries

NEC has made significant advancements in its LLM by doubling the training data quality, resulting in a model surpassing several leading LLMs in domestic and international markets, particularly in Japanese dialogue capabilities (Rakuda*). The LLM’s capacity to process up to 300,000 Japanese characters—up to 150 times more than other third-party LLMs—positions it as a versatile tool for handling large-scale document-related operations, including business manuals.

NEC is developing a “new architecture” that promises to “revolutionize” the creation of AI models. This architecture allows for flexible combinations of models based on the input data and specific tasks.

NEC aims to establish a scalable foundational model to expand parameters and functionality efficiently. This model promises scalability without compromising performance and can be seamlessly integrated with various AI models, including those specialized in legal and medical fields and those from other companies and partners. Its compact size and low energy consumption make it suitable for edge devices. With NEC’s cutting-edge image recognition, audio processing, and sensing technologies, these LLMs can process real-world events with high precision and autonomy.

Simultaneously, NEC is developing a much larger scale model with 100 billion parameters, far exceeding the conventional 13 billion parameters. These endeavors are part of NEC’s ambition to achieve roughly 50 billion yen in sales from its generative AI-related business within three years.

The development and application of generative AI have recently seen a rapid acceleration. Businesses and public institutions are actively exploring and testing business reforms using various LLMs, and the demand for such transformations is anticipated to rise.

Challenges in its implementation remain, though, including the need for precise, prompt engineering to guide AI, security issues like data leaks and vulnerabilities, and the integration of business data during the implementation and operational phases.

Since the launch of the NEC generative AI service in July 2023, NEC has been capitalizing on the NEC Inzai data center. This center provides a secure and low-latency LLM environment. NEC has been accumulating expertise by constructing and offering “individual company models” and “industry-specific models” that are ahead of the curve in the industry, using its proprietary LLM.

NEC is utilizing this accumulated expertise to deliver optimal solutions for various industries. These solutions comprise a scalable foundational model for LLM and an environment tailored to the specific needs of customers’ businesses for the effective use of generative AI.

NEC’s generative AI business strategy for other potential applications

NEC’s generative AI business strategy is built around a three-stage development process using managed API services. The core of this strategy is a managed API service that utilizes large-scale language models like LLM developed by NEC for dialogue and search functions. The business strategy is planned to unfold in three phases: first, by constructing industry- and business-specific models for individual companies; second, by integrating these models into business packages and solutions; and third, by developing business packages and solutions through partnerships with other companies.

NEC is also enhancing its technology development and sales framework. This initiative includes the NEC generative AI hub, which operates under the direct supervision of the chief digital officer (CDO), and the digital trust promotion management department. Furthermore, to advocate for the generative AI business, ‘ambassadors’ have been appointed within the corporate sales department.

To further bolster its generative AI initiatives, NEC has established a new generative AI center. This center oversees the generative AI technology pivotal to these activities. It integrates approximately 100 leading-edge researchers from global research centers specializing in generative AI. The aim is to fast-track the commercialization of generative AI research by fostering seamless collaboration between the research and business segments.

As part of its commitment to providing safe and reliable LLMs, NEC is collaborating with Robust Intelligence on the LLM Risk Assessment Project. This initiative is focused on ensuring that the industry- and business-specific models NEC offers are evaluated and meet global standards for risk assessment.

As NEC continues to pioneer AI innovations, it remains dedicated to consulting with customers to enhance the value of its services, including expanding service functions. NEC’s commitment extends to providing secure and reliable generative AI solutions aimed at addressing the unique challenges faced by its customers.

NEC developments in generative AI technology.

The post NEC launches new generative AI business strategy for expanding applications in 2024 appeared first on TechWire Asia.

“If you resist artificial intelligence, you will be finished.” That was the message of HE Omar Sultan Al Olama, the Minister of State for AI Digital Economy for the UAE government, at the opening of the GITEX 2023 CTO World Congress.

His statement resonated with the crowd at the 43rd edition of GITEX Global, the world’s largest technology and startup exhibition in Dubai, where AI’s influence on companies’ presence cannot be overlooked.

Over 6,000 companies from 180 countries and thousands of attendees flooded to the Dubai World Trade Centre (DWTC) for the five-day event which began on October 16, 2023. The United Arab Emirates’ annual technology event spans 41 exhibition halls, showcasing tech giants and startups specializing mainly in AI, cybersecurity, and mobility. 

The event also expanded significantly across Dubai Harbor, where Expand North Star, a startup focus event hosted by the Dubai Chamber of Digital Economy, took place concurrently. Dubai’s vested interest in AI – the technology that has taken center stage globally this year – was apparent in both events. More than 1,000 AI-infused companies were participating, according to organizers, as concerns over governance, regulations, and job security remain.

“AI needs to be unleashed, rather than confined and restricted,” Al Olama told reporters on the sidelines of GITEX 2023. In sharing the view of his administration, the Minister claimed that “governments’ responsibilities around the world should revolve around increasing awareness, reducing ignorance, and ensuring that people can access AI tools.”

Al Olama believes that the world is entering an era that separates countries that embrace AI and those that don’t. “That’s going to be the key differentiator. If you embrace AI, you will try. If you don’t, unfortunately, you will remain stagnant,” he told reporters.

Governing AI the right way: A hot topic at GITEX 2023

During his keynote address, Al Olama captivated the audience by advocating a global consensus on AI governance. He stressed governing AI use cases rather than the technology itself. He called for discussions to be more solution-focused rather than dominated by fears. “I think the current global discussion on AI governance is a non-starter,” he told reporters about regulating the technology during a media briefing on day two of GITEX 2023.

Al Olama, who became the world’s first minister in the AI field in 2017, believes that governments must openly address concerns around AI. “Fear should not dominate the discussion,” he reiterated. He, however, thinks tackling the issue of deepfakes is a global problem for governments.

“I think deepfakes need to be addressed, because they erode the people’s trust in the content,” Al Olama said. “It’s a big problem, so we must be heavy-handed with deepfakes.” The Minister suggested that governments should also take a firm stance against using tools that create misinformation, as these tools too can erode trust – this time in governments.

The Minister, who was recently named by Time magazine among the 100 most influential people in AI, highlighted the remarkable journey of the UAE as an early adopter of AI. A 2019 report on the Government Artificial Intelligence Readiness Index², which examined over 190 countries worldwide to determine its rankings, has placed the UAE at the top of the Arab world for its readiness to adopt AI technologies. 

By June of this year, special task forces within 30 government entities in Dubai had been formed to harness the power of AI to transform government operations and services. 

Some of those government bodies were present at GITEX 2023, and Tech Wire Asia had the opportunity to visit their booths and peek into their AI innovations.

Digital Dubai

Digital Dubai inaugurated the Dubai Government Pavilion at the GITEX 2023, bringing together more than 40 government and private entities in the Emirate of Dubai. Director general of Digital Dubai, Hamad Obaid Al Mansoori, asserted that “the Dubai Government Pavilion at GITEX Global 2023 offers a glimpse into Dubai’s digital future, where emerging and advanced technologies play a central role in ensuring happiness among citizens and residents, offering them easy, quick, and integrated digital services.”

The Digital Dubai platform this year included 40 pavilions, each representing a government or private entity from various fields, who came together to strive for a common purpose – to position Dubai as a global digital hub and an inspiring international capital. Among the services showcased were the Dubai.AI platform, in partnership with the Dubai Center for Artificial Intelligence (DCAI). The platform  allows users to quickly and seamlessly access services and information about Dubai across various sectors. 

Dubai.AI was developed in partnership with government entities in the emirate. It can be populated it with accurate information and services from reliable sources, making that data available to all users.

There was also the ‘Al Maha’ project on cybersecurity, an advanced scanning tool designed to locate all government digital assets on the internet, whether they’re hosted in the UAE or abroad. 

The platform can identify vulnerabilities in these digital assets, classify them by severity, and suggest the most effective methods to address them. Additionally, Digital Dubai is introducing the Application Programming Interface (API) Tester, a portal that lets users, developers, and security officers evaluate and test their API endpoints. The API scanner will identify gaps and weaknesses in the provided API requests, primarily helping developers and users to patch and secure their APIs.

Digitizing Dubai’s Metro

At Dubai’s Roads and Transport Authority (RTA) pavilion were an array of AI projects and initiatives, including a smart gate for paying public transport fares through facial recognition. The RTA plans to roll out the smart gates next year, with plans to test it out at public transport stations where there is less volume of passengers before it will be rolled out across all stations after the Proof of Concept succeeds.

تعتبر البوابة الذكية التي تتيح دفع تعرفة #المواصلات_العامة باستخدام بصمة الوجه جزءاً من خطة الهيئة الاستراتيجية للتحول الرقمي التي تهدف إلى تلبية الاحتياجات التشغيلية والارتقاء بتجربة الركاب. قم بزيارة منصة #هيئة_الطرق_و_المواصلات "S1-E" في معرض #جيتكس2023 من 16 إلى 20 أكتوبر في… pic.twitter.com/dhwp3xVKpS

— RTA (@rta_dubai) October 17, 2023

The RTA plans to adopt the same facial recognition technology in all other modes of public transportation in Dubai, including trams, buses, abra (a traditional small ferry-like boat used to ferry people across the Dubai Creek), and taxis. The RTA’s goal is to move from physical and digital cards to a facial recognition system.

The convergence of AI and Arabic

The UAE has recently made strides in AI, having unveiled two major large language models – the underlying algorithm that powers generative AI – to prove its intentions of becoming a leader in the industry. At one of the government pavilions at GITEX 2023, the LLM models, Jais and Falcon, were showcased, and according to Al Olama, they have been well received by the public.

Jais, an open-source bilingual Arabic-English LLM, was developed through collaboration between Inception, an AI company in Abu Dhabi, the G42 unit, Mohammed Bin Zayed University of Artificial Intelligence, and Silicon Valley’s Cerebras Systems. Jais is designed to make the Arabic language a prominent player in AI.

Conversely, Falcon is a flagship LLM by the UAE’s Technology Innovation Institute (TII). Falcon 180B is closely ranked just behind OpenAI’s latest GPT-4 and matches the performance level of Google’s PaLM 2 Large, the model that powers Bard, according to the company. 

Driverless police patrol car

Adding to the variety of Dubai’s government entities showing their AI innovations at GITEX 2023 was an autonomous Dubai Police patrol car that could handle the city’s streets. The vehicle, equipped with a drone launcher, radar detector, and surveillance camera, will provide Dubai Police with an innovative and effective method for city patrolling. 

According to a spokesperson, the department has concluded its research and development phase, and the vehicle is currently in production. It will be operational on the city’s streets within the following year.

“It took 65 engineers five years of research to build the vehicle named Autonomous Police Patrol M02,” which, according to the spokesperson, can function with an accuracy rate of 99.9%.

The post What were the highlights of GITEX 2023? appeared first on TechWire Asia.

Many are not aware that for years, Apple has dominated the smartphone market in Japan. So much so, the iPhone holds a significant market share in the Japanese market compared to other Western countries. Considering that Japan has been a notoriously difficult market for foreign companies to crack, Apple’s feat in the land of the rising sun is impressive.

It all started when the tech giant established its first Japanese unit in June 1983, seven years after its 1976 founding as a personal computer maker. Distribution in Japan had been entrusted to partners such as Toray before then and to a Canon unit for a time afterward.

Then, in 2008, Apple released the first iPhones in Japan. The phones boasted 3G connectivity, a rare but desirable feature at the time.

At that point, the market was saturated with models that lacked 3G connectivity and did not support the installation of third-party apps. However, the Japanese craved more features and functions than other markets. Recognizing this, Apple gradually added features and functionalities in subsequent models and iOS software updates.

When Apple’s initial carrier partner, Softbank, took over, its popularity skyrocketed even further. The company relied on low prices and aggressive marketing. Masayoshi Son, the CEO, collaborated with his long-time friend Steve Jobs to tailor iPhones to Japanese users’ desires and preferences. Eventually, the iPhone became a must-have item in Japan.

In short, the iPhone was one of the first smartphones widely adopted in Japan. The ‘iPhone for Everyone’ campaign by Softbank, among others, fueled its popularity. Apple’s position was further bolstered by carriers that historically offered more generous subsidies for the iPhone, making it more affordable for consumers.

But it wasn’t all smooth sailing for the American tech giant in Japan. As Japan transitioned to the smartphone market, competition increased, especially from Samsung. Yet, Apple maintained its dominance. Samsung ranked fourth in Japan behind Apple, Sony, and Sharp Corp for most years, partly due to a Japanese consumer bias against many Korean brands.

Unfortunately, anti-Korean sentiment in Japan was a significant factor in Samsung’s challenges in the country.

Apple in Japan 40 years later

Today, Apple still stands strong in Japan regardless of the increased competition. While Apple opened its first non-US store in Tokyo in 2003, today the tech giant has ten across the country, including in Fukuoka and Kyoto. When Tim Cook visited Japan last year, he shared that the iPhone maker had invested more than US$100 billion in its Japanese supply network over the last five years alone.

Meanwhile, Cook also shared that Apple had boosted its spending on suppliers in Japan by more than 30% since 2019. Japan has also become a critical manufacturing and sales hub for Apple. The country’s market for electronic components grew with the iPhone’s release, and Apple’s supply chain now encompasses nearly 1,000 companies.

This week, Japan celebrates 40 years of Apple in the country. Apple’s CEO took the opportunity to announce that the company’s App Store ecosystem in Japan helped developers generate billings and sales of US$46 billion in 2022 alone. Cook further noted that revenue accrued by small developers increased by 32% between 2020 and 2022.

In Japan, Apple supports more than one million jobs through its supply chain and the app economy. As for market share, Apple held a roughly 49% share of the Japanese smartphone market in unit terms in 2022, according to Tokyo’s MM Research Institute. Apple was the top mobile phone vendor in the country for the 11th straight year, starting in 2012. It also controls around half of the tablet market and around 60% of smartwatches.

But headwinds have increased recently. Apple’s Japan sales fell 11% year-over-year last quarter and accounted for just 6% of the companywide total. Reports suggest that the downturn partly stemmed from a weak yen and new restrictions on discounted smartphone sales.

It’s safe to say that Japan remains an Apple stronghold, and it’s reasonable to assume it’ll stay that way for the foreseeable future.

The post Four decades and billions of dollars in sales later, what’s next for Apple in Japan? appeared first on TechWire Asia.

Miyako Capital, a venture capital firm associated with Kyoto University, is setting up a fund projected to amass around 20 billion yen (US$141 million). The fund’s objective is to support startups engaged in deep-tech biology and artificial intelligence (AI).

Deloitte’s report indicates that the APAC biotech market is on a growth trajectory, with a compound annual growth rate (CAGR) of 10.9% predicted between 2020 and 2025. The anticipated market value stands at US$318.8 billion by 2025, driven by factors such as escalating demand for novel therapies and drugs, advancements in precision medicine, and technological progression.

The availability of funds is a critical catalyst for biotech investments in the APAC region. Both governments and private investors have shown considerable interest in biotech investments, acknowledging this industry’s growth and innovation potential. For instance, in 2020, Singapore’s government pledged a US$500 million fund for its biotech industry, paralleling China’s substantial investment plans in the same field.

The growth of precision medicine is yet another factor propelling biotech investments in the APAC region. Progress in genomics, proteomics and other areas has empowered researchers to design more customized therapies, improving patient outcomes. This has increased interest in precision medicine, with companies like Astellas from Japan and South Korea’s Celltrion spearheading this field.

Moreover, technological advancements, particularly in artificial intelligence, machine learning, and big data analytics, are steering biotech investments in the APAC region. The ability to sift through copious amounts of data for new drug targets and more efficacious therapies has given rise to a new generation of biotech startups. These startups are concentrating on creating state-of-the-art technologies to boost innovation in the industry.

Concerning Kyoto University’s contribution, it’s projected to be among Japan’s largest funds, injecting between 500 million yen and 1 billion yen into each startup.

A boost for AI and biology startups

The fund is slated to split its resources, dedicating half to biology and other life science startups, and the remaining half to AI and electronics. Miyako Capital plans to expand its team with members experienced in evaluating these advanced tech sectors.

The firm will also forge allegiances with other educational institutions to scout for potential investments nationwide.

The 20 billion yen fund is expected to be sourced partly (about 50%) from two state-backed funds, the Japan Investment Corp. and the Organization for Small and Medium Enterprises and Regional Innovation, Japan. Other investors like Japan Post Bank and Shiga Bank will contribute to the remaining funds.

Deep tech startups are typically characterized by pursuing fundamental innovation, necessitating growth time and long-term investor commitment.

Miyako Capital plans to leverage its Silicon Valley office to aid startups in their global expansion efforts.

Similarly, University of Tokyo Edge Capital Partners, another VC firm tied to the University of Tokyo, initiated a fund exceeding 30 billion yen in 2021 for deep tech investments.

Since its inception in 2013, Miyako Capital has backed over 50 companies, primarily those leveraging research from Kyoto University. Notable successes include recouping investments from five such companies, one of them being regenerative medicine startup StemRIM.

About 30% of the firm’s managed funds are invested in research startups not affiliated with Kyoto University.

Japanese Prime Minister Fumio Kishida intends to promote the country’s deep tech startups under a five-year plan announced last November. The plan emphasizes the creation of a framework enabling these startups to collaborate with large corporations, focusing on production and distribution.

The promising future of Japan’s deep-tech scene

The future of deep tech in Japan appears bright and expansive, propelled by the concerted efforts of various stakeholders such as venture capital firms, academic institutions, the government, and the startups themselves. Key considerations include:

• Strong financial backing: Both venture capital firms like Miyako Capital and government bodies are substantially supporting deep tech startups. This support encompasses financial assistance, mentorship, networking opportunities, and support for international expansion. With initiatives like the five-year plan announced by Prime Minister Fumio Kishida and significant contributions from state-backed funds, the government is fostering a favorable environment for these startups.
• University collaborations and role of VC firms: Universities often serve as innovation incubators, and Japan is no exception. Partnerships between venture capital firms and universities, especially firms like Miyako Capital, with a track record of backing research-led startups, are poised to sustain the growth of deep tech startups. This will ensure a continuous flow of innovative ideas and entrepreneurial talent.
• Focus on key future-oriented sectors: Japan is determined to progress in crucial future-oriented sectors such as biology, AI, and electronics. Progress in AI and machine learning equips researchers with the tools to process extensive data for identifying new drug targets and developing more effective therapies. This focus is anticipated to drive Japan’s next technological revolution.

Given the robust financial backing, government support, academic partnerships, and emphasis on key future-oriented sectors, the future of deep-tech startups in Japan appears promising. The stage is set for a flourishing deep-tech startup ecosystem, complemented by a framework for partnerships with large corporations.

The post How Japan is revolutionizing the AI and deep-tech startups landscape appeared first on TechWire Asia.