Apple’s thinnest iPhone may take longer to reach Chinese consumers as the country’s eSIM system is not yet ready for nationwide launch. The setback could delay availability of the iPhone 17 Air, a model expected to debut this month alongside the rest of the iPhone 17 lineup, according to the South China Morning Post.

At two Apple-authorised resellers in Foshan, Guangdong province, shop assistants said they had not received training on how to support eSIM. By comparison, Apple resellers in the European Union were asked to complete an eSIM training course by last week, MacRumors reported. The difference highlights how China may not be ready to match the iPhone’s global rollout schedule.

On Chinese social media, concerns about delays are gaining traction. Tech influencer Fixed Focus Digital, who has 2.3 million Weibo followers, said Wednesday that eSIM services in mainland China were “unlikely” to go live this month. He pointed out that mass production of the slimmer model, thought to be called the iPhone 17 Air, began later than the standard iPhone 17, the iPhone 17 Pro, and the iPhone 17 Pro Max. He also downplayed the impact, saying that later availability “isn’t problematic.”

Apple is still expected to reveal the iPhone 17 series on September 9, an event that typically draws global attention and sets the tone for the company’s holiday season sales.

China carriers send mixed signals on iPhone eSIM rollout

Hints of preparation have emerged from China Unicom, one of the country’s three state-owned telecom operators. Weibo user ChillsYaya wrote last week that the carrier had told staff to offer eSIM support for Apple devices. But it was unclear if the directive covered smartphones, since China Unicom already supports eSIM for iPads and Apple Watches. Neither Apple nor China Unicom responded to requests for comment on Wednesday.

In July, China Unicom updated its “5G AI terminal white paper” with eSIM phone specifications, a move seen as preparation for future iPhone support in China. Around the same time, users discovered a beta webpage for eSIM activation, though it only pointed customers to offline stores and gave no clear details on locations.

China’s three major carriers – China Unicom, China Telecom, and China Mobile – have been cautious about smartphone eSIM services. According to a July report from the state-backed China Business Journal, the operators have focused their eSIM development on wearables for now, while smartphone integration remains on hold.

Broader competition on thin designs

The eSIM issue in China extends beyond Apple’s iPhone. Rival smartphone makers are also working on thinner devices that rely on eSIM technology. Xiaomi, for example, lists 16 smartphones with eSIM support in overseas markets, suggesting that competition around slimmer hardware is already under way.

Apple’s September event will not just be about this year’s lineup. The company is beginning a three-year refresh cycle for its most important product. Reports suggest that next year may bring Apple’s first foldable iPhone, a move that would follow similar launches by Samsung Electronics and Google.

Siri’s next upgrade

Alongside hardware, Apple is also preparing major software changes.

Bloomberg‘s Mark Gurman reported that Apple is building an AI-powered search feature for Siri, internally known as “World Knowledge Answers,” a change that will affect how future iPhones function in China and elsewhere. The feature would pull information from the web and deliver AI-generated summaries, presented with text, photos, videos, and location details.

To make this work, Apple may have to rely on third-party services. Google is currently the front-runner to provide an AI model – likely from its Gemini family – that would run on Apple’s servers. The two companies reached a “formal agreement” this week for Apple to test Google’s model for Siri summaries, according to the publication.

The planned Siri upgrade is part of Apple’s broader but delayed effort to expand the voice assistant’s functions. The new system is expected to rely on three parts: a planner that interprets user prompts, a search engine that can scan personal data or the internet, and a ‘summariser’ that packages the results in a usable format.

Apple is still considering other partners. While its own AI models are expected to handle personal data searches, the company is evaluating Google’s Gemini and Anthropic’s Claude for tasks like planning.

What’s next for the iPhone in China

Even with the iPhone 17 launch scheduled for next week, the AI-enhanced Siri is not expected to arrive immediately. Bloomberg reported the new features will roll out with iOS 26.4, which could be released as early as March next year.

For Apple, the timing matters. The iPhone remains its most important product in China, where competition from local brands is intense and regulatory conditions are complex. A delay in eSIM readiness may slow adoption of its thinnest model to date, but the company’s long-term plans – including new form factors and AI-powered software – show that it is preparing for more than just one launch cycle.

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The dramatic collapse in Chinese smartphone exports to the United States signals a fundamental shift in global technology supply chains, as manufacturers scramble to avoid punitive tariffs that have reached as high as 145% on Chinese goods.

According to detailed customs data released Tuesday, smartphone shipments from China to the US plummeted 72% to just under US$700 million in April—the lowest level recorded since 2011. 

This steep decline far exceeded the overall 21% drop in Chinese exports to America, highlighting how the tech sector has become ground zero in the escalating trade confrontation between the world’s two largest economies.

The smartphone export collapse underscores the far-reaching impact of the Trump administration’s aggressive tariff campaign, which has fundamentally disrupted established manufacturing networks that took decades to build. 

What began as targeted trade measures has evolved into a comprehensive reshaping of how and where consumer electronics are produced. Apple, whose iPhones represent a significant portion of the affected exports, has been particularly active in diversifying its manufacturing base. 

The company has accelerated production shifts to India, which has emerged as the primary beneficiary of this supply chain realignment. Data from China’s General Administration of Customs, as quoted by Bloomberg, reveals that smartphone component exports to India roughly quadrupled over the past year, illustrating the speed of this transition.

Unfortunately, this geographic diversification strategy faces new complications. President Trump recently criticised Apple’s India expansion, urging the company to bring iPhone manufacturing to the United States instead. 

Such a move would represent a seismic shift for Apple, which has never produced the iPhone domestically—a transition that industry experts consider unfeasible in the short term given the complexity of modern smartphone manufacturing and the specialized supplier ecosystem concentrated in Asia.

The broader implications extend well beyond individual companies. Last year’s trade data shows smartphones ranked as the top US import from China, alongside laptop computers and lithium-ion batteries, collectively representing hundreds of billions in annual commerce. 

In the opposite direction, American exports to China included liquid petroleum gas, oil, soybeans, gas turbines, and semiconductor manufacturing equipment. This bilateral trade relationship, valued at $690 billion in 2024, now faces unprecedented strain. 

Investors increasingly worry about a full-scale global trade war that could decimate entire industries while driving up consumer prices across multiple product categories. Recent developments suggest tensions will likely intensify rather than ease. 

Beijing this week accused the Trump administration of undermining trade talks in Geneva by pursuing new sanctions targeting Huawei Technologies’ AI chips. Such moves indicate that technology remains at the centre of US-China strategic competition, with semiconductors and advanced electronics serving as both economic assets and national security concerns.

The smartphone industry’s experience offers a preview of broader supply chain transformations likely to unfold across multiple sectors. As manufacturers seek to reduce exposure to tariff risks, traditional production hubs face the prospect of losing market share to alternative locations offering greater political stability and trade access.

For consumers, these shifts translate into potentially higher prices and longer product development cycles as companies navigate new regulatory environments and establish alternative supplier relationships. The ultimate question remains whether these disruptions will create more resilient, diversified supply chains or simply fragment global markets along geopolitical lines.

Ultimately, the April data represents more than statistical fluctuation—it signals a fundamental reconfiguration of how global technology products reach American consumers, with implications that will likely persist long after current trade disputes are resolved.

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Xiaomi’s 3nm chip development represents another stunning leap forward in China’s rapidly accelerating semiconductor advancement, coming just months after Huawei shocked global markets with its chip breakthroughs despite stringent US sanctions. 

The Beijing-based tech giant has begun mass production of its self-designed 3-nanometer system-on-a-chip (SoC), the XRing O1, catapulting Xiaomi into the rarefied air occupied by just three other companies worldwide—Apple, Qualcomm, and MediaTek. 

This achievement not only demonstrates China’s resilience in pursuing tech self-sufficiency but signals a shifting balance of power in global semiconductor design, all while navigating the complex web of US export restrictions that were specifically implemented to impede such progress.

In a May 20, 2025, post on Chinese microblogging site Weibo, Xiaomi founder, chairman, and chief executive Lei Jun confirmed local media reports that the XRing O1 was based on the 3-nanometre lithography process in semiconductor manufacturing. He also said the new integrated circuit (IC) would be installed in the company’s new 15S Pro smartphone and the Pad 7 Ultra tablet.

The achievement positions Xiaomi as only the fourth company globally to design a 3nm mobile chip for mass production, joining an exclusive club alongside tech powerhouses Apple, Qualcomm, and MediaTek. The development comes at a pivotal moment as China pushes for technological self-sufficiency amid tightened US export controls on advanced semiconductors.

Technical specifications and performance

According to Xiaomi, about 19 billion transistors are packed on the XRing O1, which puts the 3nm chip on par with the Apple-designed A17 Pro SoC that was launched in 2023 with the same number of transistors.

That reflects Xiaomi’s efforts to match the advances in semiconductor development of its major smartphone rivals, Apple, Samsung Electronics, and Huawei Technologies.

According to third-party chip benchmarking platform GeekBench and as quoted by the South China Morning Post, the XRing O1’s results in single-core and multi-core tests place it among the world’s top-performing ICs, rivalling the performance of Apple’s new A18 series and Qualcomm’s Snapdragon 8 Elite mobile SoCs.

Semiconductor manufacturing process nodes, measured in nanometers (nm), refer to the scale of the features built onto a chip. Smaller nanometer numbers generally indicate the ability to pack significantly more transistors into the same area. This allows for improved power efficiency, higher performance, and enhanced capabilities compared to chips built on older process nodes.

Manufacturing challenges and geopolitical context

While Xiaomi has achieved a significant milestone in chip design, questions remain about the manufacturing process given current geopolitical tensions. Xiaomi did not provide more information about the XRing O1, especially regarding which contract semiconductor manufacturer is producing the locally designed mobile SoC. 

Semiconductor foundries in mainland China are not able to mass produce 3nm chips owing to US tech restrictions. The ability of Xiaomi to launch a 3nm chip for mass production, despite restrictions aimed at China’s semiconductor industry, lies in the specific scope of the US export controls and the nature of global manufacturing. 

Current US restrictions primarily target China’s access to advanced AI chips and, crucially, leading-edge manufacturing equipment that would enable China-based foundries (like SMIC) to produce chips below certain nodes domestically.

Industry analysts suggest Xiaomi has likely partnered with Taiwan Semiconductor Manufacturing Company (TSMC) for production, as the Taiwanese chipmaker is one of the few companies globally capable of mass-producing 3nm chips. 

This implies that Xiaomi, like many other chip designers globally (including US companies like Apple and Nvidia), is likely relying on a non-China-based foundry, almost certainly TSMC in Taiwan, to manufacture the XRing O1 chip using their 3nm process.

The development of the XRing O1 also represents a major financial commitment from Xiaomi. Xiaomi’s Lei on Monday said the company has already spent 13.5 billion yuan (US$1.9 billion) on the research and development of the XRing O1. In 2025, the firm put in place a 10-year, 50 billion yuan spending programme for semiconductor development.

This investment aligns with statements from CNBC reporting that “Chinese technology giant Xiaomi will invest at least 50 billion yuan ($6.9 billion) over the next 10 years to develop its chips, CEO Lei Jun said in a Weibo post on Monday.”

For Xiaomi, the XRing O1 represents a move towards greater vertical integration, potentially reducing reliance on external suppliers and strengthening its brand by offering unique hardware capabilities in its devices. Succeeding in the high-end mobile SoC market will require not only competitive hardware performance but also robust software optimisation and ecosystem support, areas where rivals like Apple and Qualcomm have strong advantages built over many years.

China’s accelerating semiconductor advancement: National significance

The development has been celebrated within China as a significant technological achievement. State media, including China Central Television (CCTV) and Communist Party newspaper People’s Daily, this week lauded Xiaomi’s efforts to develop the XRing O1.

The new 3nm chip was touted by CCTV as “exciting news for the country’s semiconductor industry“, which it said surpassed 1 trillion yuan in export volume last year, as quoted in SCMP’s report.

Overall, the XRING O1 launch is a notable milestone for China’s domestic semiconductor design capabilities. State media have lauded the achievement, framing it as a significant step for the country’s chip industry and a breakthrough in “hardcore technology.”

Industry implications

It is almost inevitable that the launch will intensify competition in the premium smartphone segment, forcing traditional mobile chip suppliers to continue innovating rapidly to maintain their market positions. The long-term impact will depend on Xiaomi’s ability to consistently deliver competitive chips at scale and manage its supply chain relationships in a complex geopolitical environment.

Qualcomm, which has been a primary chip supplier for Xiaomi’s high-end smartphones, appears unconcerned about the development. Amid various reports about the XRing O1, Qualcomm chief executive Cristiano Amon was quoted as saying at this week’s Computex 2025 trade show, which runs from May 20 to 23, that the US firm maintains a solid partnership with Xiaomi. 

This statement was further reinforced by direct comments to CNBC, where Amon stated, “We remain a strategic supplier of chips for Xiaomi, and most importantly, I think Qualcomm Snapdragon chips are used in the Xiaomi flagships and will continue to be used in the Xiaomi flagships.”

The XRing O1 chip is scheduled to make its official debut at Xiaomi’s product launch event on Thursday, May 22, alongside the new 15S Pro smartphone and Pad 7 Ultra tablet. The tech community will be watching closely to see if the performance of these devices lives up to the significant expectations created by this semiconductor breakthrough.

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The Telecom AI Platform collaboration between Jio Platforms Limited (JPL), AMD, Cisco, and Nokia revealed at last month’s Mobile World Congress 2025 may represent a significant shift in how telecom networks evolve in coming years.

The partnership focuses on developing an open AI framework for network operations, and comes as service providers worldwide face mounting pressure to improve efficiency and create new revenue streams.

Announced on March 3, the alliance brings together expertise across RAN, routing, AI data centres, security, and telecom infrastructure to create what the companies describe as a “central intelligence layer” for telecom and digital services. The multi-domain intelligence framework aims to integrate AI and automation in all network operations, with Jio serving as the first implementation case.

“We are building a multimodal, multi-domain orchestrated workflow platform […] for the telecom industry,” said Mathew Oommen, Group CEO of Reliance Jio. He highlighted the platform’s potential to transform networks into “self-optimising, customer-aware ecosystems.”

Technical foundations and AI

What sets the Telecom AI Platform apart is its technological approach. The platform will be LLM-agnostic and use open APIs, using multiple forms of artificial intelligence including agentic AI, general and domain-specific LLMs, Small Language Models (SLMs), and non-GenAI machine learning techniques.

AMD’s chair and CEO Lisa Su heralded “more secure, efficient, and scalable networks,” made possible through the platform, which uses Cisco’s Agile Services Networking and Data Centre Networking, plus Nokia’s capabilities in RAN, Core, fixed broadband, and optical transport.

India first, then global expansion

The Open Telecom AI Platform’s first customer, Jio, describes a “replicable reference architecture and deployable solution for the broader global service provider industry.”

The company hopes to position India as a front-runner in AI-driven telecom innovation. The timing of the project is significant, as telecom operators worldwide face increasing pressure to enhance network performance and offer new services beyond those of traditional telecom infrastructure.

“The initiative goes beyond automation – it’s about enabling AI-driven, autonomous networks that adapt in real-time, enhance user experiences, and create new service and revenue opportunities across the digital ecosystem,” Oommen said.

Real-world applications and benefits

Industry analysts suggest the Telecom AI Platform could drive significant improvements in several key areas:

1. Network security: Enhanced threat detection and prevention through AI-driven analysis across network layers
2. Operational efficiency: Reduced total cost of ownership through automation and predictive maintenance
3. Self-healing networks: Autonomous identification and resolution of network issues before they impact service
4. Revenue generation: Creation of new AI-enabled services and applications for enterprise and consumer segments

Potential timeline and global impact

While specific deployment timelines weren’t disclosed in the announcement, the companies indicated that development is actively underway. The platform’s open architecture design suggests its impact could extend far beyond Jio’s network in India.

The Telecom AI Platform represents a significant step toward what industry experts call “cognitive networks” – telecommunications infrastructure with embedded intelligence that can learn, adapt, and evolve autonomously. For global telecom operators watching this development, the platform could provide a blueprint for integration that addresses their most pressing challenges: reducing operational costs, enhancing security posture, improving customer experience, and developing new revenue streams.

As telecom networks continue their evolution toward 6G and beyond, initiatives like this Telecom AI Platform may well determine which operators thrive in the future – and which countries will lead the next wave of telecommunications innovation.

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With authorities like the Hong Kong Monetary Authority (HKMA) enforcing strict record-keeping mandates, regulatory compliance becomes more important. Recent enforcement actions and scrutiny from abroad have also prompted Asian regulators to tighten oversight measures.

Meanwhile, the widespread use of messaging apps like WhatsApp and WeChat for business presents compliance and security risks, compounded by the rising cyber-threats and data breaches. The shift to remote work has further intensified the need for improved business communications security.

The growing influence of messaging apps in Hong Kong businesses

Like many places around the world, messaging apps play an increasingly important role in business operations in Hong Kong, letting staff communicate with customers for inquiry and complaint handling, new product promotions, service consultations, and similar conversations.

The most popular messaging platform in Hong Kong used for business communications is WhatsApp. WeChat is also popular, especially for engaging with clients from mainland China.

Speaking of the use of messaging apps in Hong Kong for business, Vincent Wong, Assistant Product Manager at Hong Kong Telecom, explained that “the major business purpose in Hong Kong is for staff to handle daily inquiries from customers and promote new products and the latest market updates to customers.”

Hong Kong Telecom – LeapXpert collaboration for compliant communications

Hong Kong Telecom (HKT), one of the region’s telecommunications service providers, helps its enterprise customers ensure governance and security in client interactions amid an increasingly stringent regulatory environment. HKT has partnered with LeapXpert to deliver more secure and compliant digital communication solutions. This lets HKT provide its enterprise customers with a governed, compliant and secure framework to communicate with customers on messaging apps.

Wong described HKT’s offering as a “Cloud-based service based on the functionality of the LeapXpert platform.”

The LeapXpert Communications Platform lets enterprise employees engage with clients using popular consumer messaging channels, like WhatsApp, iMessage, Telegram, WeChat, Signal, Line, and SMS, from platforms like Microsoft Teams, WeCom and Slack. The platform helps ensure regulatory compliance, enterprise governance and security.

According to Avi Pardo, Chief Business Officer at LeapXpert, the strategic partnership between the two companies positions HKT as “a premier provider of compliance-driven communication services, offering scalable solutions that support unified, secure and compliant cross-app communications tailored for business growth.”

Wong stated that “LeapXpert demonstrates strong capabilities in messaging compliance, enabling corporations to control and monitor conversations between staff and clients to ensure regulatory compliance and adherence to authority guidelines.”

Pardo said the integration of the LeapXpert platform with HKT’s services “creates a unique market differentiator that delivers significant value to enterprise customers, catering to the precise needs of modern, single-identity responsible business communication.”

Wong also said that, in addition to messaging compliance and archiving functionality, “HKT provides professional services, including configuration, user training and after-sales support.”

Strong market feedback

HKT targets banking and financial industries, investment traders, and some professional services industries, such as law firms and healthcare institutions. These especially require communications compliance and monitoring. The company also plans to target larger enterprises that use MS Teams for daily communication.

HKT has signed Bank of East Asia, a Hong Kong-based financial services group, as its first customer for the LeapXpert solution. The LeapXpert Communications Platform, underpinned by HKT’s connectivity infrastructure, allows BEA employees to communicate natively with customers over WhatsApp and WeChat in a manner that is governed, secure and compliant.

Business enablement and compliance

The LeapXpert platform, according to Pardo, lets businesses use messaging apps more securely, and ensure governance and compliance. He said this combination “enhances client engagement by allowing employees to communicate on their preferred platforms, improving efficiency by reducing the need to switch between apps.”

Pardo said advanced security features help protect businesses from risk, and HTK’s network provides reliability and local support. “This positions HKT with a unique compliance service throughout the region,” he said.

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Major US artificial intelligence companies, like OpenAI, Anthropic, and Google, have expressed concern over China’s increasing abilities in AI development.

In submissions to the US government, the companies have warned America’s edge in AI is dwindling, as Chinese models like DeepSeek R1 become more advanced. The submissions were filed in response to a government request for input on an AI Action Plan, and were made in March 2025.

China’s growing AI presence

DeepSeek R1, the AI model from China, has drawn attention from US developers. OpenAI described DeepSeek as evidence that the technological gap between the US and China is closing. The corporation described DeepSeek as “state-subsidised, state-controlled, and freely available,” and expressed concerns about China’s ability to influence global AI development.

OpenAI compared DeepSeek to Chinese telecommunications company Huawei, warning that Chinese regulations could allow the government to compel DeepSeek to compromise sensitive systems or important infrastructure.

OpenAI also expressed worries about data privacy, pointing out that DeepSeek’s requirements for data-sharing with the Chinese government could strengthen the state’s surveillance abilities.

Anthropic’s submission focused on biosecurity, noting that DeepSeek R1 “complied with answering most biological weaponisation questions, even when formulated with a clearly malicious intent.”

The willingness to generate possibly dangerous information contrasts with the safety protocols the submissions describe as implemented in US-developed models.

Competition goes beyond DeepSeek. Baidu, China’s largest search engine, recently launched Ernie X1 and Ernie 4.5, two new AI models designed to compete with leading Western systems. Ernie X1, a reasoning model, is said to match DeepSeek R1’s performance at half the cost. Meanwhile, Ernie 4.5 is priced at 1% of OpenAI’s GPT-4.5 and has outperformed it on certain benchmarks, according to Baidu.

Both OpenAI and Anthropic framed the competition as ideological, describing it as a contest between “democratic AI” developed under Western principles and “authoritarian AI” shaped by state control. However, the recent success of Baidu and DeepSeek suggests that cost and accessibility may have a greater impact on global adoption than ideology.

US AI security and infrastructure concerns

The US companies’ submissions also raised their concerns about security and infrastructure challenges linked to the technology development. OpenAI’s submission focused on the dangers of Chinese state influence over AI models like DeepSeek, while Anthropic’s submission its emphasised biosecurity concerns tied to AI capabilities. The company disclosed that its own Claude 3.7 Sonnet model demonstrated improvements in biological weapon development, highlighting the dual-use nature of advanced AI systems. Anthropic also pointed to gaps in US export controls.

While Nvidia’s H20 chips comply with US export restrictions, they still perform well in text generation – a key factor in reinforcement learning. Anthropic urged the government to strengthen these controls to prevent China from gaining an advantage.

Google’s submission took a more balanced approach, acknowledging security risks while warning against over-regulation. The company argued that strict export controls could harm US economic competitiveness by creating barriers for domestic cloud providers and AI developers. Google suggested targeted controls to protect national security without disrupting business operations.

All three businesses stressed the need for improved government oversight of AI security. Anthropic called for expanding the AI Safety Institute and strengthening the National Institute of Standards and Technology (NIST) to assess and mitigate AI-related security threats.

Economic competitiveness and energy needs

The submissions also focused on the economic factors shaping AI development. Anthropic stressed infrastructure challenges, warning that by 2027, training a single advanced AI model could require five gigawatts of power. The corporation proposed the building 50 gigawatts of AI-dedicated power capacity by 2027 and streamlining the power transmission line approval process.

Baidu’s recent announcements have highlighted the importance of cost-effective AI development. Ernie 4.5 and X1 are reportedly available for a fraction of the cost of comparable Western models, with much lower token processing fees than OpenAI’s current models. Such pricing strategies from Chinese models could pressure US developers to reduce costs to remain competitive. OpenAI portrayed the competition as an ideological contest between Western and Chinese models’ arguing a free-market strategy would result in more innovation and better outcomes for consumers.

Google’s stance in the submissions was more concerned with practical policy recommendations. The company called for increased federal investment in AI research, improved access to government contracts, and streamlined export controls.

Regulatory strategies

A unified approach to AI regulation emerged as a consistent theme across all three submissions. OpenAI proposed a regulatory framework managed by the Department of Commerce, claiming that fragmented domestic state-level regulations could drive AI development overseas. The company supported a tiered export control framework that would allow broader access to US-developed AI in countries considered democratic while restricting access in authoritarian states. Anthropic called for stricter export controls on AI hardware and training data, warning that even marginal improvements in model performance could provide strategic advantages to China.

Google’s submission focused on copyright and intellectual property rights. The company argued that its current ‘fair use’-based policies are essential for AI development, and warned that overly strict copyright rules could disadvantage US firms compared to Chinese competitors.

All three companies emphasised the need for faster governmental implementation of AI. OpenAI suggested removing existing testing and procurement processes, joining Anthropic’s advocacy of streamlined AI procurement processes from federal agencies. Google supported similar reforms, highlighting the importance of improved interoperability in government cloud infrastructure.

Maintaining a competitive edge

The submissions from OpenAI, Anthropic, and Google reflect a shared concern about maintaining US leadership in AI in the country as competition from China intensifies. The rise of DeepSeek R1 and Baidu’s latest models points to a growing challenge not just in technological capability but also in cost and accessibility.

As AI development accelerates, the balance between security, economic growth, and technological leadership will likely remain key policy challenges.

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Malaysia’s 5G Advanced rollout has moved forward, as Digital Nasional Berhad (DNB) and Ericsson announce a new partnership.

The collaboration was announced during Mobile World Congress (MWC) 2025, and aims to implement 5G Advanced technologies across industrial zones and introduce what the companies describe as the “world’s first 5G-powered mobile workspace solution.” The partnership centres on two initiatives: a 5G Advanced deployment to enhance industrial connectivity across Malaysia, and a 5G-powered mobile workspace solution that is designed to replace traditional wi-fi in enterprise environments.

Positioning Malaysia as a 5G global frontrunner

Datuk Azman Ismail, CEO of DNB, highlighted the significance of this collaboration. “By combining DNB’s expertise in 5G deployment with Ericsson’s global leadership in connectivity, we are strengthening Malaysia’s position as a digital economy leader, powering innovation across key sectors like manufacturing, healthcare, and agriculture,” he said.

The partnership’s core focus areas include:

1. Accelerating enterprise digitalisation: Expanding 5G connectivity in strategic industrial zones and collaborating with mobile network operators to deliver connectivity services.
2. Driving IoT and wearables innovation: Using Reduced Capability (RedCap) technologies to enable connectivity for industrial automation and smart devices.
3. Co-creating future-ready solutions: Using DNB’s 5G Advanced network as an platform to develop applications with solution providers, developers, and academic institutions.
4. Advancing sustainability: Integrating AI-powered energy optimisation tools to maximise efficiency and reduce environmental impact, in support of Malaysia’s journey net-zero emission goals.
5. Strengthening network security: Implementing security measures to help safeguard Malaysia’s digital infrastructure against cyber threats.
6. Expanding global API ecosystem: Integrating with a worldwide Application Programming Interface network.

DNB implements a 5G-based office network solution

In a separate announcement during MWC 2025, DNB said it has begun deploying Ericsson’s Enterprise Virtual Cellular Network (EVCN) at its Kuala Lumpur headquarters. The companies claim this is the first instance of a complete “5G-first” office environment, replacing existing wi-fi with cellular technology. Instead of using standard wi-fi infrastructure, DNB’s headquarters now connects devices through 5G cellular networks. The system integrates with Microsoft Intune and Entra ID to manage the 5G-enabled client hardware throughout the organisation.

The change brings several advantages over traditional enterprise networking solutions:

• Security and control: 5G infrastructure eliminates extant and future wi-fi vulnerabilities, and gives administrators greater control over devices’ connections.
• Operational efficiency and cost savings: Simplified network management and large-scale device setup reduce the need for legacy infrastructure, cutting costs.
• Mobility and user experience: Employees get consistent experiences on their 5G-enabled devices, in the office or working remotely.

“By integrating Ericsson’s Enterprise Virtual Cellular Network with DNB’s nationwide 5G infrastructure, we are empowering organisations to move beyond traditional IT models and embrace a new era of cloud-native, secure, and scalable solutions,” David Hagerbro, Head of Ericsson Malaysia, Sri Lanka and Bangladesh said.

Implications of Malaysia’s 5G Advanced rollout

Malaysia’s implementation of 5G-A systems represents an early test case worth monitoring. While DNB and Ericsson have outlined ambitious plans, the accurate measure of success will be in practical adoption rates, measurable efficiency improvements, and the results of cost-benefit analysis by early adopters.

Key questions remain about how widely these solutions will be adopted beyond initial deployments:

• Will the promised security benefits outweigh the costs of transitioning from established WiFi infrastructure?
• Can the system scale effectively in different enterprises with varying technical requirements?
• Will the everyday experience of workers and businesses show meaningful improvements over current connectivity solutions?

The coming months will likely reveal whether Malaysia’s approach to 5G Advanced implementation offers a viable model for other countries or whether adjustments will be needed as real-world applications expose unforeseen challenges. Technology observers across Southeast Asia will be watching to see if the technology delivers on its potential.

The post Malaysia’s 5G Advanced rollout: From industry to office appeared first on TechWire Asia.

At MWC 2025, Indosat Ooredoo Hutchison became the first mobile operator in Southeast Asia to deploy AI-RAN (Artificial Intelligence Radio Access Network), in collaboration with Nokia and NVIDIA. The deployment integrates Nokia’s 5G Cloud RAN solution with NVIDIA AI Aerial, creating what the companies term a unified computing infrastructure that hosts both AI and RAN workloads.

AI and telecom convergence

Indosat is the world’s third operator to deploy AI-RAN commercially. The recent initiative combines AI and wireless connectivity to improve network performance, efficiency, and service capabilities. As part of the partnership, the companies have signed an MOU to develop, test, and deploy AI-RAN solutions. The initial focus will be on AI inferencing workloads using NVIDIA AI Aerial, followed by the full integration of RAN workloads on the same platform.

Indosat, Nokia, and NVIDIA will work with Indonesian universities and research institutes to advance AI-driven telecom applications, support academic research and student training, and drive innovation in network optimisation, spectral efficiency, and energy management.

AI-RAN’s role in network transformation

The AI-RAN infrastructure is expected to change Indosat’s network strategy, letting the company share infrastructure costs for multiple applications and introduce AI-powered services. The integration’s aims of improving spectral efficiency and reduction in energy use laying the groundwork for future 6G improvements.

The initiative is in line with Indonesia’s national AI strategy, establishing Indosat as an enabler of AI services rather than just a telecom provider. The company has established a ‘Sovereign AI Factory’ in Indonesia, designed to support startups, enterprises, and government organisations in developing AI applications for healthcare, education, and agriculture. With NVIDIA AI Enterprise software and serverless APIs, Indosat plans to scale AI inferencing for Indonesia’s population of 277 million, optimising AI workloads across the network.

Expanding AI capabilities across applications

The provided serverless API framework, created in collaboration with NVIDIA, will allow Indosat’s AI partners, including Hippocratic.ai, Personal.ai, GoTo, and Accenture, to deploy distributed inference engines on a large scale.

Indosat President Director and CEO Vikram Sinha made clear the broader impact of AI integration in telecom, saying, “By embedding AI into our radio access network, we’re not just enhancing connectivity – we’re building a nationwide AI-powered ecosystem that will fuel innovation across industries. This aligns with our mission to connect and empower every Indonesian.”

Deployment roadmap

The AI-RAN rollout will follow a phased approach:

• Early 2025: A 5G AI-RAN lab established in Surabaya to support development, testing, and validation.
• Second half of 2025: Launch of a small-scale commercial pilot to test AI inferencing workloads running on the NVIDIA AI-RAN infrastructure.
• 2026: Broader expansion of AI-RAN deployment.

Industry perspectives

Tommi Uitto, President of Mobile Networks at Nokia, stated: “When you combine AI with RAN, you create an engine for future innovation. With our 5G Cloud RAN platform, Indosat can transform its network into a multi-purpose computing grid that uses the synergies of AI-accelerated computing. With our AI-powered products, we help Indosat augment RAN capabilities for enhanced performance, operational efficiency, advanced automation and optimised energy efficiency.”

Ronnie Vasishta, SVP Telecoms at NVIDIA said: “The combination of Indosat’s vision for a nationwide AI grid and NVIDIA AI expertise and full-stack software and hardware platform will catalyse AI adoption and innovation across Indonesia, creating a new playbook for telecom operators worldwide.”

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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.

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The Infosec Registered Assessors Programme (IRAP), an initiative set up by the Australian Signals Directorate (ASD) has evaluated the Qualys Cloud Platform, giving it a “Protected” level.

This is a significant achievement for Qualys, which describes itself as an “Enterprise Cyber Risk & Security Platform.” It demonstrates the company’s compliance with the Australian government’s highest and most stringent security standards for handling sensitive customer data.

Managing Director for Australia and New Zealand at Qualys, Sam Salehi, confirmed the significance of this newly-acquired protected status, stating how, “it’s a reflection of [Qualys’] ongoing investment in securing Australia’s public and critical infrastructure sectors. It demonstrates our capability to meet over 1,200 stringent security controls.”

Australian government agencies and commercial entities can now use Qualys more confidently, knowing that its security measures and protections meet high standards. That includes in critical infrastructure sectors, like energy, transportation, telecommunications, and healthcare, where safeguarding sensitive data is of critical importance.

Enterprises and organisations can now deploy Qualys’ solution seamlessly, according to Salehi, safeguarding “their most critical systems and better meet[ing] their compliance requirements.”

Organisations that are striving to adhere to the Australian Cybersecurity Centre’s Essential Eight mitigation strategies and the Australian Government’s Protective Security Policy Framework (PSPF) standards will especially benefit from Qualys Cloud Platform’s adherence with the strict standards. It promises to reduce the overall risk of certain vulnerabilities and support efforts to meet government mandates to protect critical infrastructure and sensitive data.

It has also been announced that Qualys’ Enterprise TruRisk Management has introduced a Risk Operations Centre (ROC) in an effort to integrate various security solutions, therefore improving prioritisation and actionable remediation solutions.

Qualys hopes to redefine cyber risk operations with its newfound protected status and freshly developed ROC, eliminating cyber risk via tailored remediation actions. The efforts are designed to enhance business outcomes by improving security posture, reducing vulnerabilities, and helping organisations respond more effectively to potential threats.

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The intensifying technological rivalry between the US and China has entered a new phase, with a prominent Chinese cybersecurity organisation launching a security probe into Intel products. The development comes amid tightening US restrictions on semiconductor exports to China and growing competition for AI supremacy.

The Cyber Security Association of China (CSAC) announced via WeChat on October 16 that it would examine Intel’s central processing units (CPUs) sold in mainland China, citing concerns over “frequent vulnerabilities and high failure rates.” The Association highlighted historical security vulnerabilities in Intel chips and reported instances of specific processor series causing videogame crashes.

The following day, Intel’s China division responded swiftly, stating through its official WeChat account that it “strictly abides by the laws and regulations of the country,” and that it has consistently prioritised product safety and quality. The company expressed its willingness to “maintain communications with the relevant authorities,” and address any concerns regarding product safety.

In retrospect, the security review follows a series of US measures to restrict China’s access to advanced semiconductor technology, including the October 2022 export controls on high-end chips and chip-making equipment, and the subsequent expansion of those measures in 2023. The timing and nature of the review suggest it could be part of China’s broader strategy to counter US technology restrictions.

The move appears particularly significant as Intel holds substantial business interests in China, which remains one of the world’s largest semiconductor markets. According to industry analysts, the review could signal China’s willingness to leverage its market access as a countermeasure against US trade restrictions.

The scrutiny of Intel comes as Chinese domestic CPU manufacturers such as Loongson, Zhaoxin, and Hygon having made significant strides in recent years. The companies have captured over 50% market share in state-owned agencies and public procurement markets, suggesting China’s growing capability to reduce dependence on foreign processors.

The stakes are particularly high for Intel, which derived 27.4% of its revenue from China in 2023. The substantial market exposure comes at a challenging time for the company, which has recently faced declining earnings and implemented a series of job cuts. The situation is further complicated by US export controls that prevent Intel from selling its most advanced products to Chinese clients, with some customers banned entirely from receiving Intel shipments.

However, CSAC’s criticism extends beyond security concerns. The association noted Intel’s position as a significant beneficiary of the Biden administration’s CHIPS and Science Act, which it characterised as unfairly discriminating against China’s semiconductor industry. The group also criticised Intel’s supplier policies prohibiting the use of products and labour from China’s Xinjiang region – a requirement aligned with US law but contested by Chinese authorities. The timing and nature of this security review follow a familiar pattern. 

In 2023, China employed similar tactics against Micron Technology, leading to significant market disruption. After a cybersecurity investigation by the Cyberspace Administration of China concluded that Micron’s products posed “network security issues,” Chinese authorities banned companies in critical infrastructure sectors from purchasing Micron products. 

The impact was substantial, with Micron facing multi-billion dollar market consequences. China has already begun reducing its dependence on foreign semiconductors, reportedly directing major state-owned telecommunications carriers to phase out chips from Western manufacturers like Intel.  In the broader context, the review appears to be part of what some industry observers call China’s “Python Strategy” – a methodical approach to gradually tightening restrictions on foreign companies while promoting domestic alternatives. 

Its strategy has already been witnessed in action by other US technology companies, most notably Micron Technology, which faced a cybersecurity review in 2023 that restricted its products’ use in critical information infrastructure. This further reflects the complex interdependencies in the global semiconductor supply chain. 

While China remains a crucial market for US semiconductor companies, the Chinese government has been actively investing in its domestic semiconductor industry through initiatives like the “Made in China 2025” plan, which aims to reduce reliance on foreign technology.

Therefore, Intel’s experience might be a cautionary tale for other US technology companies operating in China. The security review marks a significant escalation in the ongoing technology conflict between the world’s two largest economies. It suggests that as US-China relations continue to evolve, technology companies may increasingly find themselves navigating complex political and regulatory challenges in addition to those of a technical and commercial nature.

This development could accelerate several trends: China’s push for technological self-reliance, the reconfiguration of global supply chains, and the increasing bifurcation of the worldwide technology ecosystem into US and Chinese spheres of influence.

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To leverage the full capabilities generative AI offers requires an enterprise-wide implementation, with fully-connected data resources. It’s the processes, infrastructure, and strategy needed to achieve that which prove challenging. Without that far-reaching presence of AI across the business, the technology cannot provide significant competitive advantages.

However, a global study by MIT Technology Review Insights (MITTR) has found that despite the technology advancing at a rapid pace, the practical application of AI remains relatively limited in scope – reducing such competitive advantages. The study uncovered a significant reality gap between decision-makers’ expectations of generative AI’s implementation, and their organizations’ ability to implement it.

The report for the study was produced in partnership with Telstra International, a global arm of leading telecommunications and technology company Telstra. The respondents comprised business leaders across Asia-Pacific, the Americas, and Europe, who mostly manage IT, data, and data engineering-related function in industries such as financial services, manufacturing, logistics, energy, media and communications.

Limited AI deployment at most organizations

Around 37% of respondents said their organisations had experimented with deploying AI in limited areas, but many realize that there are significant impediments to full rollouts across the business. In fact, those that have adopted generative AI widely – or the early adopters – are less confident that they have the knowledge, skills, resources, and infrastructure to enable their end-game.

It’s easy, of course, to remain bullish about the possibilities of a new technology when decision-makers’ experience of real-world implementations are limited. The fact is that while most business leaders expect to disrupt their industries using generative AI, the majority will likely face disruption by their competitors instead. The difference between the disrupters and disrupted lies in the ability to overcome the problems and roadblocks that prevent the technology from working effectively across the business.

“As the world becomes increasingly digitized and human-to-machine interactions flourish, being able to process data to drive informed real-time or near real-time business decisions is paramount,” said Geraldine Kor, Managing Director and Head of Global Enterprise at Telstra International.

“When implemented successfully, this proficiency will be a game-changer for most organizations, and will distinguish leaders from followers. However, building end-to-end capabilities to handle large datasets, accurately contextualize the data for business value and ensure the responsible and ethical application of AI is extremely challenging.”

Top challenges in generative AI

The MITTR report highlights the following top challenges faced by many organisations:

Hardware: Appropriate hardware, in-house or outsourced, is a prerequisite of extensive generative AI adoption, and decision-makers often fail to grasp the degree of the requirement. Accessing these assets poses a dilemma: outright purchase carries risk and in a fast-moving landscape, over-committing is risky.

Datasets and volume: Good data – fundamental for generative AI – is in short supply. Among early adopters, 58% said available volume of data at their companies was at best modest, and half said the same of data accuracy and storage infrastructure (Figure 6).

Regulatory, compliance, and data privacy environment: This was the most commonly mentioned non-IT impediment, with more than half of early adopters saying they struggle to address cybersecurity issues (Figure 6).

Budget for technology investment: The second most common barrier reported by respondents is budgetary constraints (Figure 7). The numerous technological challenges for generative AI adoption indicate that success may require substantial investment.

Competitive environment and organizational culture: About half of respondents cited the competitive environment as a barrier to generative AI adoption, while 41% said the same of cultural attitude toward technological innovation (Figure 7).

Shortage of AI talent: 31% of respondents who were early adopters said skills within their companies were a barrier, while 46% said the same of available external talent. Non-early adopters were more optimistic: a minority (21%) of them said the skill levels within their workforce were a barrier to rapid adoption, with a similar number (23%) saying the same of skills within their domestic economies.

Expertise to navigate generative AI deployment challenges

The above challenges highlight the need for a well-planned and robust data strategy in implementing AI projects, which requires a whole-of-company approach to fully realize AI-driven operations.

However, organizations often encounter roadblocks in areas such as connectivity and data management, issues around legacy interoperability, and strategic planning for generative AI.

With this era of digital business defined by a hyperconnected landscape of distributed workforces, decentralized applications, and external ecosystems, the seamless and secure movement of data is key to competitive advantage.

“The hyperconnected digital fabric is the foundation of the digital-first economy, and data in motion is essential to the effective creation, consumption and contextualization of corporate and ecosystem data, applications, and operations,” said Linus Lai, Chief Analyst and Vice President for Digital Business, Trust and Services at IDC Australia and New Zealand.

“Organizations must develop the capabilities for anytime and anywhere access, pervasive digital experiences, real-time insights, and business continuity and reliability. By doing so, a digital business can excel in value creation for improved efficiency, new innovation, and greater agility; enabling the business to adapt continuously.”

The requirement for expertise to navigate these challenges means enterprises in Asia Pacific often look to established providers with a track record in deploying technologies that have significant strategic impact. One example would be Telstra International, which owns the largest subsea cable network in Asia Pacific that carries around a third of the region’s internet traffic, offering connectivity to more than 200 countries and territories.

Telstra offers an array of product and service offerings to support organizations on their digitization and AI journey. These include AI and data envisioning customer workshops that examine the organization’s existing processes, identify gaps and co-create solutions aligned with business objectives. Additionally, Telstra’s Security Operations Centers in Australia provide comprehensive managed security services, complemented by security services centers in Asia and the U.K.

“Effectively deploying generative AI solutions is predicated upon having 100% confidence in the end-to-end operationalization of capturing, processing, contextualizing, and actioning data,” said Kor.

“In today’s hyperconnected business and AI landscape, it is essential that IT leaders embark upon a technology adoption strategy that right-fits, right-sizes and right-locates their IT investments.”

Click here to download the MIT Technology Review Insights report, “Generative AI: Differentiating Disruptors from the Disrupted”.

About Telstra International

Telstra is a leading telecommunications and technology company with a proudly Australian heritage and a longstanding, growing international business. Today, Telstra International has over 3,000 employees based in more than 35 countries outside of Australia, providing services to thousands of business, government, carrier and OTT customers.

Telstra International empowers businesses with innovative technology solutions including data and IP networks, and network application services such as managed networks, unified communications, cloud, industry solutions, integrated software applications and services. These services are underpinned by its subsea cable network, with licences in Asia, Europe and the Americas and access to more than 2,000 Points of Presence (PoPs) in more than 200 countries and territories globally.

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