Japanese government pledges $307m to NTT, Intel, and SK Hynix for chip project

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The subsidies will be used to fund the joint research and production of cutting-edge optical technology semiconductors

Today, the Japanese government has announced it will provide roughly $307 million in subsidies for a semiconductor project backed by NTT, Intel, and SK Hynix.

The chip specialists from Japan, the US, and South Korea, respectively, are set to collaborate on the development of optical semiconductor technology, a field that potentially offers higher data processing speeds and lower energy consumption than its electrical counterparts.

Under the current plan, the companies plan to begin producing related products by 2027.

“We hope the (project), by enabling faster communications and realizing reduced power consumption, will be a game changer in the future,” Ken Saito, minister of economy, trade and industry.

The move comes as one of the West’s latest instances of government intervention aimed at increasing domestic chip competencies and lessening reliance on China.

Japan has quietly been bolstering its position in the international semiconductor industry over th past year, typically investing indirectly in domestic chip production and adjacent technologies in efforts to carve out a niche on the world stage.

Last summer, for example, the Japan Investment Corporation (JIC) – a government-backed fund overseen by the Ministry of Economy, Trade and Industry – announced the takeover of esoteric microelectronics specialist JSR for $6.4 billion.

JSR produces photoresists, chemicals crucial for the photolithographic process used when making microchips. The company is the global leader in the photoresist market – perhaps the only aspect of the global chipmaking economy in which Japan plays a vital role.

In addition to this acquisition, in October the government announced $1.3 billion in subsidies for US firm Micron to set up a semiconductor firm in Hiroshima. Then, in December, the JIC also moved to takeover Fujitsu’s semiconductor packaging arm Shinko Electric Industries for around $4.7 billion.

According to JIC CEO Keisuke Yokoo, the government fears that Japan’s medium-sized enterprises in the microelectronics sphere will not be able to compete in the long-term with giants from rival nations in the US and China, hence requiring government support to remain competitive on the international stage.

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AWS confirms $10bn Mississippi data centre development  

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According to AWS, the company has already invested over $108 billion in cloud computing infrastructure in the US  

Amazon Web Services (AWS) has confirmed that it is behind a $10 billion data centre development in Mississippi that was revealed by state legislature last week. The investment, which will see the construction of two data centres, is reportedly the largest investment in the state’s history. 

In a blog post published last week, Amazon outlined its plans for the project – dubbed Project Atlas –saying the two new data centre complexes would span 1,700 acres of land and  create around 1,000 new jobs.  

The data centres are expected to be operational by 2027. 

The project has financial backing from the Mississippi state government, which will invest $44 million in the project (primarily in workforce training), as well as $215.1 million in upgrading local public infrastructure to meet the new developments requirements. 

According to the post, AWS has invested over $108 billion in the US across varying industries to support their digital transformations. AWS’s investment in Mississippi began in 2010 and already totals over$2.3 billion, with related projects including in solar farms, wind farms, and fulfilment centres. 

“It’s the single largest capital investment that has ever been made in the state of Mississippi – by a lot,” said Mississippi Governor Tate Reeves in a statement. 

The investment will “tap into the burgeoning tech sector across the state to create new, well-paying jobs and boost the state’s Gross Domestic Product each year. We look forward to delivering new workforce development opportunities and educational programs that support the next generation of talent across the Magnolia State,” added Roger Wehner, AWS director of economic development. 

The announcement comes just days after AWS announced a $15 billion investment in Japan’s cloud computing infrastructure by 2027. This investment will go towards strengthening and expanding existing facilities in Tokyo and Osaka to meet growing consumer demand. This, AWS say, is vital for the support of future AI services such as generative AI. 

Last May, AWS also announced a major investment in India, pledging $12.7 billion in the country’s data centre market by 2030. 

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342 People Oppose Brsk’s Full Fibre Broadband Poles in Burnley

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Which? calls on broadband providers to cancel April price hikes 

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The call to action comes after Ofcom announced plans to ban mid-contract price rises late last year 

According to research from Which?, many mobile and broadband customers are set to face major price hikes this April, with the alternative being to face large fees to exit their contract. 

As part of their mission to provide financial clarity for mobile and broadband customers, Which? analysed the mobile industry market data to better understand the impact of the price rises on customers. It found that, of all the mobile providers using CPI (Consumer Prices Index) as a foundation for their price increases, EE, Three, and Vodafone are all increasing their prices by 7.9% this year, costing customers up to an additional £27.36 per year.  

In terms of broadband, the average BT customer will have the biggest price increase, up by 7.9% and increasing their bills by up to £35.92 per year. 

“We think it is unconscionable that broadband and mobile providers are still planning to go ahead with this year’s inflation-linked price rises, which will impact millions of people, even after the regulator declared this practice causes substantial consumer harm and proposed a ban,” Which? said on its website. 

“It’s outrageous that telecoms firms could yet again trap their customers between inflation-busting price hikes and punitive exit fees this April, despite Ofcom declaring this practice causes substantial consumer harm,” said Rocio Concha, Which? Director of Policy and Advocacy. 

“Telecoms providers must do the right thing by halting unfair price hikes immediately, rather than piling more misery on their customers.” 

Find the full Which? analysis here. 

Back in December, Ofcom announced their proposal to ban inflation-linked mid-contract price rises to give customers more transparency regarding their future bills. Their research found that, as of April last year, four in ten broadband customers and over half of mobile customers were on contracts that were subject to inflation-linked price rises. Despite this, awareness of what this actually meant was staggeringly low; 55% of broadband customers and 58% of pay monthly mobile customers did not understand what inflation rates like CPI and RPI (Retail Prices Index) measure, and therefore do not fully understand how price increases are calculated.  

Ofcom concluded that the price rises cause “substantial amounts of consumer harm” and proposed the rule change. 

A period of consultation is currently underway, and the results are to be published in Spring. 

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Xavier Niel’s NJJ to buy Turkcell’s Ukraine unit 

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Reasons for the sale, which was initially announced back in December, have not been specified 

NJJ Capital, the investment company owned by French billionaire Xavier Niel, has agreed to buy Turkcell’s Ukrainian operations, including mobile operator Lifecell, for at least $500 million. 

The agreement was initially signed in December when Turkcell agreed to transfer over all shares in the businesses to NJJ for an undisclosed price. At the time, the three business units – mobile operator Lifecell, contact centre specialist Global Bilgi, and telecoms tower firm Ukrtower – were valued at UAH 12.7 billion ($335.5 million), UAH 47.2 million ($1.2 million), and UAH 1.9 billion ($50 million), respectively.  

The deal “makes sense”, according to Niel, due in part to his existing telecoms operations in neighbouring Poland through French telco Iliad, given the large amount of roaming traffic between the two countries.  

For Lifecell in particular, Niel noted that the sale was relatively cheap, saying “it’s an asset we’re not paying very much for compared to its profits”. 

The final price for the acquisition will not be revealed until the deal has closed, but it should be at least $500 million, according to an NJJ spokesperson.  

The deal is still subject to regulatory checks, including the go-ahead from the Ukrainian competition authority. 

Niel appears to have started this year with a renewed appetite for M&A, this month also showing an interest in purchasing Altice Portugal. The company is part of the Altice Group and is owned by another French billionaire, Patrick Drahi, who announced his intention to sell off the unit last summer. The unit has attracted a number of potential buyers, including Saudi-based STC and others who have asked not to be identified. –Three non-binding offers for the business are thought to have been received.  

No decisions have yet been made of yet and discussions remain ongoing. 

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