WASHINGTON — Taiwan Semiconductor Manufacturing Co. has begun producing advanced 4-nanometer chips in Arizona for U.S. customers, a milestone in the Biden administration’s semiconductor efforts, Commerce Secretary Gina Raimondo told Reuters.

In November, the Commerce Department finalized a $6.6 billion grant to TSMC’s U.S. unit for semiconductor production in Phoenix, Arizona.

“For the first time ever in our country’s history, we are making leading-edge 4-nanometer chips on American soil, American workers — on par in yield and quality with Taiwan,” Raimondo told Reuters in an interview, saying it had begun in recent weeks.

“That’s a big deal — never been done before, never in our history. And lots of people said it couldn’t happen,” Raimondo said of the previously undisclosed production start.

A spokesperson for TSMC, the world’s largest contract chipmaker and a major supplier to Apple and Nvidia, which reports earnings next week, declined to comment Friday.

In April, TSMC agreed to expand its planned investment by $25 billion to $65 billion and to add a third Arizona production facility by 2030.

Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. Commerce persuaded all five leading-edge semiconductor firms to locate production facilities in the United States as part of the program.

Raimondo told Reuters earlier that Commerce had to persuade TSMC to boost its U.S. plans.

“It didn’t happen on its own. … We had to convince TSMC that they would want to expand,” Raimondo said.

TSMC will produce the world’s most advanced 2-nanometer technology at its second Arizona factory, expected to begin production in 2028. TSMC also agreed to use its most advanced chip manufacturing technology, called “A16,” in Arizona.

The TSMC award from Commerce also includes up to $5 billion in low-cost government loans.

Raimondo wants the United States to make 20% of world’s leading-edge logic chips by 2030 — up from the 0% before TSMC began production in Arizona.

In April, Commerce said TSMC expects to begin high-volume production in its first U.S. fab by the first half of 2025.

Last month, Commerce finalized an award of $407 million to help fund Amkor Technology’s planned $2 billion advanced semiconductor packaging facility in Arizona, which is set to be the largest of its kind in the U.S.

When fully operational, Amkor’s Arizona plant will package and test millions of chips for autonomous vehicles, 5G/6G and data centers. Apple will be its first and largest customer, with the chips produced at a nearby TSMC facility.
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WASHINGTON — Russia’s efforts to obtain China’s help in enhancing artificial intelligence is seen as a bid to challenge America’s lead in the field even as the outgoing Biden administration is expected to impose new export control measures to further curb Beijing’s access to AI chips.

As the new year began, Russian President Vladimir Putin ordered the country’s state-owned Sberbank, to work with China in researching and developing AI technology, according to the Kremlin.

“The Russian president sees his country in global competition for AI with the United States and has positioned the state resources to try and compete with the U.S. in information and cyberspace – two areas where artificial intelligence is supposed to aid Russia in what they see as Western narratives and influence,” said Samuel Bendett, adjunct senior fellow at the Center for a New American Security.

Moscow views Beijing’s success in AI as an example to follow, and its “cooperation with China is viewed as a necessary step towards acquiring artificial intelligence-related skill sets, knowledge and technology,” Bendett told VOA in written comments.

The U.S. currently leads in AI innovation, followed by China, which is falling behind by wide margins, according to a November report by the Stanford Institute for Human-Centered Artificial Intelligence. Russia ranks 31st out of 83 countries in AI implementation, innovation and investment, according to U.K.-based Tortoise Media’s Global AI Index.

Response to sanctions

Western sanctions imposed on Russia since its invasion of Ukraine in 2022 have limited the country’s AI development, and Moscow has turned to Beijing to offset the restriction, according to Bendett in his report “The Role of AI in Russia’s Confrontation with the West.”

Sberbank, which Putin instructed to collaborate with China, is under Western sanctions.

It is Russia’s largest bank and leads the country’s AI development efforts.

The outgoing Biden administration is expected to impose a new set of export control measures aimed at further limiting China’s ability to access chips that support AI technology. The new measures could come as early as Friday, according to Bloomberg.

Sberbank CEO German Gref said in 2023 that Russia cannot obtain graphics processing units, microchips needed to support AI development, according to Reuters.

But the bank’s first deputy CEO, Alexander Vedyakhin, said in December that despite Western sanctions, Russia can improve its AI ranking by 2030 through its own development.

Another key area where Russia has sought to further apply AI help from China is in the military.

“There already have been top level meetings between Russia and Chinese militaries in 2024,” and “ongoing dialogue” between the defense ministries of the two countries is likely so they can understand “how AI could aid in a large-scale conventional conflict, like the one unfolding in Ukraine,” Bendett said.

Russian and Chinese officials met in Beijing early last year to discuss military application of AI, especially in developing autonomous weapons, according to Russia’s Foreign Ministry.

AI-powered weapons

In December, Ukraine said Russia began using AI-powered strike drones with improved capabilities that can evade air defenses, identify key targets and operate offline.

James Lewis, director of the Strategic Technologies Program at the Center for Strategic and International Studies, said Russia is likely to use AI technology on enhancing drones as well as in making weapons with improved target detection and attack speed.

The China-Russia AI partnership “creates new risk for the U.S.,” but military application of “AI won’t compensate for bad strategy” in the battlefield, he said.

Attending an AI conference in Moscow last month, Song Haitao, president of the Shanghai Artificial Intelligence Research Institute, said China plans to sign an agreement with Russia’s Sberbank to promote bilateral cooperation on AI development.

Speaking at the conference, Putin applauded China for “making great strides” in advancing AI technology and its application, including in building “smart cities” and conducting “modern governance.”

Sam Bresnick, research fellow at Georgetown University’s Center for Security and Emerging Technology, said although it is not entirely clear how Beijing might benefit from helping Moscow in developing AI, China might want some military technologies and wartime data from Russia in return.

“Russia is very good at making submarines, and there’s been a speculation in the past that China could benefit from acquiring that kind of technology. Another one is helicopter technology,” Bresnick said.

“The war in Ukraine has generated an astonishing amount of data,” Bresnick continued. “China would probably be interested in getting its hands on them because having more militarily relevant data from Russia would help China develop its own AI systems for military.”

Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, told VOA on Thursday that “in terms of the application of artificial intelligence, China actively advocates the principles of ‘people-oriented’ and ‘intelligent for good,’ ensuring that artificial intelligence is safe, reliable and controllable, better enabling global sustainable development, and enhancing the common well-being of all mankind.” 
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Technology companies, industry executives and entrepreneurs are in Las Vegas, Nevada, this week for CES, the consumer electronics show featuring the latest advancements in artificial intelligence, vehicle technology, robotics and more. Tina Trinh reports from Las Vegas.
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LAS VEGAS — So much of the technology showcased at CES includes gadgets made to improve consumers’ lives — whether by leveraging AI to make devices that help people become more efficient, by creating companions to cure loneliness, or by providing tools that help people with mental and physical health. 

But not all innovation is good, according to a panel of self-described dystopia experts that has judged some products as “Worst in Show.” The award that no company wants to win calls out the “least repairable, least private, and least sustainable products on display.” 

“We’re seeing more and more of these things that have basically surveillance technology built into them, and it enables some cool things,” Liz Chamberlain, director of sustainability at the e-commerce site iFixit told The Associated Press. “But it also means that now we’ve got microphones and cameras in our washing machines, refrigerators and that really is an industry-wide problem.” 

The fourth annual contest announced its decisions Thursday. 

A new smart ring every few years? 

Kyle Wiens, CEO of iFixit, awarded the Ultrahuman Rare Luxury Smart Ring the title of “least repairable.” 

The rings, which come in colors like dune and desert sand, cost $2,200. Wiens said the jewelry “looks sleek but hides a major flaw: its battery only lasts 500 charges.” Worse, he said, is the fact that replacing the battery is impossible without destroying the device entirely. 

“Luxury items may be fleeting, but two years of use for $2,200 is a new low,” he said. 

Ultrahuman did not immediately respond to a request for comment. 

An AI-powered smart crib? 

Bosch’s “Revol” crib uses sensors, cameras and AI that the company says can help monitor vital signs like how an infant is sleeping, heart and respiratory rates and more. The crib can also rock gently if the baby needs help falling asleep and signal to parents if a blanket or other object is interfering with breathing. 

EFF Executive Director Cindy Cohn said the crib preys on parents’ fears and “collects excessive data about babies via a camera, microphone, and even a radar sensor.” 

“Parents expect safety and comfort — not surveillance and privacy risks — in their children’s cribs,” she said in the report. 

A spokesperson for Bosch told The Associated Press that all data is encrypted end-to-end and stored on Bosch-administered servers, “while all data at rest is secured locally with individual data encryption keys.” 

“Caregivers have the final say on whether data is transmitted at all. The Revol has an offline mode, which keeps data local if preferred,” the spokesperson said, adding that the smart crib helps keep children safe. 

Too much waste? 

Although AI is everywhere at CES, Stacey Higginbotham, a policy Fellow at Consumer Reports, felt that SoundHound AI’s In-Car Commerce Ecosystem, powered by its Automotive AI, pushes it to unnecessary extremes. 

The feature “increases energy consumption, encourages wasteful takeout consumption and distracts drivers — all while adding little value,” Higginbotham said. That landed the in-car system as “least sustainable” on the list. 

Soundhound AI’s platform allows drivers and passengers to order takeout for pick-up directly from the car’s infotainment system. The company did not respond to a request for comment. In a statement Tuesday, Keyvan Mohajer, CEO of SoundHound AI, said the product’s launch marks a moment “decades in the making.” 

“What begins here with food and restaurants will ultimately open up a whole new commercial ecosystem for vehicle and device manufacturers everywhere,” he said. 

Vulnerable to hacking? 

TP-Link’s Archer BE900 router won for “least secure” of CES. The company is a top-selling router brand in the U.S. But its products are vulnerable to hacking, said Paul Roberts, founder of The Security Ledger. 

“By Chinese law, TP-Link must report security flaws to the government before alerting the public, creating a significant national security risk,” he said. “Yet TP-Link showcased its Archer BE900 router at CES without addressing these vulnerabilities.” 

In an email response, TP-Link Systems contested the report. 

“TP-Link Systems Inc. is a U.S.-headquartered company and does not provide any such security reporting to China as referenced by iFixit,” the company said. “TP-Link Systems has a secure, vertically-integrated, and U.S.-owned international supply chain. Nearly all products sold in the United States are manufactured in Vietnam.” 

TP-Link said it controls its own supply chains, and “is constantly assessing potential risks to its U.S. operations, customers, and supply chain,” adding that it acknowledges that vulnerabilities exist across the industry. 

“However, contrary to claims of widespread vulnerabilities, comparative data places TP-Link on par with, or in some cases ahead of, other major industry players in terms of security outcomes,” the company said. 

Who asked for this? 

The awards also feature a category called “who asked for this?” Top of that list was Samsung’s Bespoke AI Washing Machine, which Nathan Proctor, senior director of U.S. PIRG, a consumer advocacy group, said is filled “with features no one needs,” including the ability to make phone calls. 

“These add-ons only make the appliance more expensive, fragile, and harder to repair,” he said. 

Samsung did not respond to a request for comment. 

At a press conference at CES Tuesday, Jong-Hee Han, vice chairman of Samsung’s device experience division, said that he was “proud of how we have introduced new technologies and intelligence to the home, connected key devices and set the standard for the home of the future.” 

“We are reinforcing our commitment to delivering personalized experiences through our widespread implementation of AI and we will continue this journey of AI leadership in the home and beyond, not just for the next decade, but for the next century,” he said. 

Worst overall 

Gay Gordon-Byrne, executive director of The Repair Association, called the LG “AI Home Inside 2.0 Refrigerator with ThinkQ” the worst product overall. The fridge adds “flashy features,” Gordon-Byrne said, including a screen and internet connection. 

“But these come at a cost,” Gordon-Byrne said. “Shorter software support, higher energy consumption, and expensive repairs reduce the fridge’s practical lifespan, leaving consumers with an expensive, wasteful gadget.” 

LG did not respond to a request for comment.
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