Issue #58 of Data+AI in Asia
Welcome to this week’s edition of Data+AI in Asia! This time, the newsletter explores the Chinese government’s plans to set up a large fund for investments into AI and other tech fields, Malaysia’s investigation into an Nvidia chips fraud case, projections of strong increases in US AI chip output as a result of South Korean and Taiwan investments, Japan’s AI unicorn Preferred Networks, Chinese AI startup Manus, Singapore’s struggle with AI talent, and Asian democracies hesitation of DeepSeek.
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Enjoy!
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This week in Data+AI in Asia:
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China Plans US$138bn Fund for AI, Chips, and Quantum Tech
The Chinese government is looking to establish a US$138 billion (1 trillion yuan) fund to support tech startups in the near future. The so-called “national venture capital guidance fund” is set up as a public and private partnership and its focus will be on hard technology, e.g., semiconductors and renewable energy. It will focus on frontier fields such as AI, quantum tech, and hydrogen storage and it is supposed to be operated based on market-oriented methods. The government is looking to use the new fund to boost support for the practical application of AI models as well as the development of venture capital investments
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Malaysia Investigates Companies’ Involvement in Nvidia AI Chips Fraud Case
Malaysia is taking "necessary action" against local companies involved in a fraud case involving the alleged movement of Nvidia's AI chips from Singapore to China. Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz recently said that the country is investigating the case. The investigation involves the police, customs, and the Malaysian Communications and Multimedia Commission. Singapore's Law and Home Affairs Minister K Shanmugam said servers from Dell and Supermicro were sent to Singapore-based companies, which were then exported to Malaysia and likely contained items subject to export controls by the US. The servers may have contained Nvidia chips. The Malaysian government is enhancing international cooperation to monitor the flow of sensitive technologies, such as Nvidia's H100 and A100 chips used in high-performance AI applications. Malaysia's government takes the allegation seriously and is likely to adopt measures similar to those of Singapore to curb any alleged smuggling. Singapore has charged three men with fraud in connection to the alleged movement of Nvidia chips and has asked Malaysia and US authorities to share relevant information to assist with investigations.
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South Korean and Taiwan Investments Set to Lead to Surge in US AI Chip Output
The US is expected to account for just over 20% of the global output of advanced semiconductors used in applications like AI by 2030, driven by large investments from Taiwanese and South Korean chipmakers. Taiwan Semiconductor Manufacturing Co. is expected to drive the rise in production. At the same time, Taiwan's share of global output is projected to shrink from 71% to 58%, and South Korea's is expected to fall from 12% to 7%. The US focuses on onshoring the production of logic semiconductors, particularly for data centers, telecommunications, and military hardware. TSMC plans to invest US$100 billion in the US to build more fabrication facilities, packaging plants, and a research and development center. Taiwan and South Korea accounted for just under 70% of chip investment in the US last year. US President Donald Trump is favoring tariffs over subsidies to incentivize American production.
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Japan’s AI Unicorn Preferred Networks Focuses on Real-World Issues
Preferred Networks, a Japanese AI unicorn, aims to use deep learning to solve real-world problems and go global. The company has ventured into industries such as trucking, healthcare, and robots, drawing attention from big names like Toyota. Preferred Networks is one of few unicorns in Japan, with Japanese companies valued at over $1 billion making up just 0.5% of the world's total. The company is also in a joint venture with Mitsui & Co. in autonomous driving, addressing challenges in the trucking industry. Dealing with real-world problems typically requires more time than digital solutions. The company's technologies can take up to five years in fields like AI-based materials discovery. Preferred Networks is also working on developing more advanced processors to gain a competitive advantage. The company is eyeing foreign investors and is receiving inquiries in entertainment, semiconductors, and computers.
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Is Chinese AI Startup Manus the Next DeepSeek?
Chinese tech companies, including Manus AI, are launching artificial intelligence breakthroughs, such as the world's first general AI agent. The company claims to have developed the world's "first general AI agent", which can do everything, including tasks such as researching real estate and analyzing stocks. Manus AI also claims its model has surpassed ChatGPT developer OpenAI's models across all three difficulty levels in the GAIA benchmark, which assesses general AI assistants on their real-world problem-solving capabilities. The app, which requires an invitation code, quickly took the Chinese internet by storm after tech influencers shared their impressions of the agent. However, the overseas reception to the app has been lukewarm, with only a handful of users having experienced it firsthand. Some critics argue that the "DeepSeek moment" for AI applications is just a "marketing frenzy" based on the hype surrounding open-source models. Manus AI is not the only company looking to follow in the footsteps of startup DeepSeek, which unveiled low-cost inference models based on open-source technology. Alibaba Group released its own open-source AI reasoning model, QwQ-32B, which outperforms DeepSeek's R1 in areas such as mathematics, coding, and general problem-solving. Beijing is also supporting AI and other technologies in an apparent hope that advances in AI and other technologies can boost the economy amid curbs from the West.
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Singapore Companies Struggle with AI Talent
Singapore is widely considered a leader in AI. However, Singapore's workforce still faces a skills gap as businesses adopt AI, with technical fluency, leadership, and communication being the most difficult skills to find. With 94% of business leaders in Singapore prioritizing AI adoption in 2025, companies are under pressure to equip their workforce with the necessary expertise. However, 41% of HR professionals report that less than half of candidates meet all required qualifications. As hiring slows, businesses are prioritizing upskilling and reskilling initiatives to build a future-ready workforce. Key areas of focus include AI-related training (73.5%) and soft skills development (77%), emphasizing communication, collaboration, and adaptability.
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Asian Democracies Show Doubts about DeepSeek
The release of China's DeepSeek R1 generative AI model has sparked discussions on AI governance and industrial policies in Asia. South Korea, Japan, and Taiwan have taken action to address concerns about the company's collection and processing of personal data. South Korea's AI Basic Act, which includes provisions for transparency, accountability, and a risk-based tiered system of regulation, aligns with the growing international consensus on trustworthy AI. Taiwan has imposed a moratorium on the use of DeepSeek in the public sector, citing national security concerns about data leakage. The country's overall policy regarding AI and algorithmic technology from China has been based on principles supporting freedom of speech and access to technology. Japan's Prime Minister Shigeru Ishiba has taken note of the implications of DeepSeek's release as a reason to continue moving towards the passage of an AI Basic Act. Japan has led the way in developing rules for data free flow with trust at multilateral venues, while South Korea has taken the lead in global AI governance discussions. Taiwan's importance to global AI efforts cannot be understated, as it produces a vast majority of the world's advanced chips.
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A timely and comprehensive roundup—AI in Asia is clearly at a critical inflection point. From China’s strategic funding to regional concerns around talent and trust, the landscape is evolving rapidly. These developments will shape not only tech ecosystems, but also policy, ethics, and cross-border collaboration. At the Europe-Asia Economic Summit (EAES), taking place 26–28 May 2025 in Davos, Switzerland, we’ll dive into these dynamics with voices from across the region. We'd love to welcome the Data+AI in Asia team and your community to join our delegation and help shape the dialogue on AI’s future. Feel free to connect with Aina Meng or Martina M. Froehlich from our team to explore participation. #AI #AsiaTech #EuropeAsia #Geopolitics #DataGovernance #Innovation #EAES2025 #Davos
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3 周The Nvidia fraud case in Malaysia adds an interesting twist compliance and security are becoming just as crucial as innovation. Anders C. Johansson
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3 周The future of AI in Asia looks incredibly promising, with strategic investments and innovative solutions emerging across diverse markets. #TechProgress ??