Asian Economics: Trending Business News From Asia

Here is some of the top news from Asia you need to know to stay updated on the region’s economic landscape. 

South Korea Plan To Invest $7 Billion In The Next 3 Years

The South Korean President, Yoon Suk Yeol, announced on 9 April 2024 that the nation will invest $7 billion in artificial intelligence to enhance their semiconductor manufacturing capabilities. This announcement was made as South Korea is looking to compete with the big players, i.e., China, USA and Japan. 

South Korea is Asia’s fourth-largest economy, and most of its exports are semiconductor chips. A fifth of all exports come from semiconductors. The president also said, “Current competition in semiconductors is an industrial war and an all-out war between nations. Just as we have dominated the world with memory chips for the past 30 years, we will write a new semiconductor myth with AI chips in the next 30 years.

Nvidia To Invest $200 Million In Indonesia For AI Centre

American tech giant Nvidia recently started pushing in Southeast Asia to set up facilities in the regions. Now, it will build a $200 million AI centre in Indonesia in partnership with telco giant Indosat Ooredoo Hutchison. 

The Communication and Information Technology minister of Indonesia Said that the centre would be situated in the Java province and would help to bolster local telecommunication infrastructure, human resources, and digital talent. This will also help Indonesia’s economy, which is projected to surpass Russia’s economy by 2026

US Plans To Put Sanction On China If It Helps Russia In Ukraine Conflict

The secretary of the US Treasury, Janet Yellen, announced on 8 April 2024 that the US will put sanctions on China’s companies, banks, and even its leadership if it provides any help to Russian armed forces in the ongoing Ukraine-Russia conflict. 

Biden issued a new executive order in December, which gave Janet the power to put sanctions on China only if it helped Russia in the ongoing war. She clarified that China can maintain its economic relationship, but any military aid will trigger sanctions. 

Microsoft To Make Its Biggest Ever Investment In Japan 

In a bid to improve the data centres in Japan, Microsoft has pledged around $2.9 billion. This is the biggest-ever investment made by Microsoft in Japan. The investment aims to upgrade the 2 existing data centres in the country with advanced, state-of-the-art AI semiconductor chips. 

Microsoft will use its cloud computing expertise to empower Japan’s AI research and development capabilities. Microsoft plans to upskill 3 million workers, establish a robotic and AI lab, fund university research, and strengthen cybersecurity.

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