Nvidia’s $20bn AI chip pile-up - Asian Tech Roundup

Plus: Canva crops jobs

Welcome to Computing's weekly roundup of tech news in Asia. This time we look at the battle of wills between the Chinese authorities and the country's chip-hungry AI companies. There's also news of sweeping layoffs at Australia's Canva, and a sovereignty proposal by India that would see LLMs come to data rather than vice versa.

Around 600,000 Nvidia H200 AI chips are sitting in Hong Kong awaiting shipment to mainland China, Reuters reports.

The stranded GPUs would be sufficient to provide the compute for three xAI Colossus-sized hyperscale datacentres.

The high-end AI chips, which typically sell for $32,000-$40,000 a piece, are worth around $20 billion in total - but they could fetch three times that amount on China's grey market, with many companies willing to pay those inflated prices. But for now they remain stranded in Hong Kong, refused entry by the Chinese government, which has been reinforcing its self-sufficiency strategy.

While small shipments have been approved, the authorities have yet to allow large-scale imports of the US-made processors, despite strong demand from the country’s AI companies.

In October, eight-GPU H200 servers were being offered in mainland China for more than $900,000, around three times their price a year earlier on the grey market. At that valuation, the 600,000 GPUs installed in 75,000 eight-GPU servers would be worth more than $67 billion.

The stand-off represents a test of Beijing's desire for domestic companies to reduce their dependence on US technology while also seeking to match or surpass it in terms of AI capability.

Australia

• Canva will cut 1,271 jobs, around 22% of its workforce, after the graphic-design platform recorded its first slowdown in growth for a decade. Source
• Sydney start-up MP Space, founded by former Tesla engineers, raised $23 million to expand Australian manufacturing of spacecraft power systems already selected for more than 500 spacecraft. Source
• A Bond Law Review study calls for dedicated Australian AI legislation, mandatory governance training and independent AI certification and auditing, arguing existing laws are failing to keep pace. Source
• Labor’s proposed AI copyright changes are facing a backlash from creatives in prime minister Anthony Albanese’s Grayndler electorate, where arts and cultural industries have an unusually large presence. Source
• MP Space, founded by former Tesla engineers, raised $23 million to expand Australian production of spacecraft batteries and power systems, with its technology selected for more than 500 spacecraft. Source
• The US and Australia signed an $8.5 billion critical-minerals agreement, including US funding for a Western Australian gallium refinery producing up to 100 tonnes annually. Source

China

• Around 600,000 Nvidia H200 AI chips are reportedly stockpiled in Hong Kong as Beijing withholds approval for large-scale imports, despite demand from Chinese technology companies. Source
• Tencent released Hy4 with cybersecurity training restricted to defensive tasks, excluding material on building hacking tools or breaking into systems. Source
• Chinese semiconductor firms are preparing domestic HBM3 production, with CXMT making memory chips as China seeks alternatives to foreign AI-memory technology. Source
• Beijing urged the US and EU to reconsider tariffs on Chinese goods, linking increased purchases of US agricultural products to lower trade barriers. Source
• China’s manufacturing growth has slowed, with factory growth weakening in October as fierce domestic competition drove price cuts, increasing concerns about China’s reliance on exports and potential trade tensions. Source
• AGIBOT set a Guinness World Record after 110 production-model Expedition A3 humanoid robots danced simultaneously, coordinated through its LinkBots fleet-management platform. Source
• China-linked Vapor Panda used the AI-powered ARTEX penetration-testing framework against more than 200 organisations worldwide, with post-exploitation activity confirmed at nine targets. Source
• China detailed four preparatory missions involving its Long March 10 rockets, Mengzhou spacecraft and Lanyue lander, culminating in a crewed lunar landing before 2030. Source
• China plans separate launches for its crew capsule and lunar lander, which would rendezvous in lunar orbit before two astronauts descend to the surface. Source
• HP and Asus are moving PC production back to China as rising component costs erode the economics of manufacturing in alternative Asian locations. Dell is reportedly considering a similar move. Source
• In related news, Oracle reportedly cancelled a $7 billion chip-leasing agreement with Tencent after US officials raised security concerns, while Chinese officials urged Tencent to support domestic processors. Source
• The US Federal Communications Commission voted to stop recognising device-testing labs in China and other non-reciprocal countries, giving manufacturers two years to shift testing elsewhere. Source

India

• India has proposed a scheme called DEPA for AI Training, where models travel to encrypted data in secure environments, with the aim of training local AI without handing Big Tech unrestricted access to sensitive data. Source
• Meta has not clarified whether Indian government requests trigger keyword or hashtag restrictions, amid hundreds of recent content and account restrictions across social platforms. Source
• India’s CERT-In says hacking group Crafty Falcon breached lenders, fintech firms and cryptocurrency exchanges using AI-driven tools, at least two of which are linked to China. Source
• The Delhi High Court ruled that LinkedIn performs no public function, meaning users generally cannot challenge account restrictions through writ petitions. Source

Japan

• Waymo and Toyota will test factory-integrated, autonomous bZ4X SUVs in Japan during 2027, laying the groundwork for later deployment in Britain and other markets. Source
• Japanese, South Korean and European standards bodies agreed to explore an industry-led AI specifications organisation modelled on 3GPP, although its scope and governance remain undecided. Source

Malaysia

• AWS launched Semarak AI Malaysia, offering eligible SMEs six months' access to Amazon Quick and Kiro, targeting 10,000 participating businesses by 2028. Source
• Google is to invest US$15 billion in Malaysia over 2027 and 2028, expanding its datacentre footprint in the country alongside commitments on jobs, skills, water and clean energy. Source

South Korea

• A consumer group alleges Tesla marketed Full Self-Driving software to South Korean customers despite most vehicles being unable to use it legally. Source
• South Korea inaugurated its 614-petaflop Hangang supercomputer, built with 8,496 Nvidia GH200 chips, with an IonQ quantum-computing connection planned for May 2027. Source
• South Korean semiconductor exports reached $56.4 billion in October, accounting for 48.9% of goods exports as AI infrastructure demand fuelled memory-chip sales. Source

Taiwan

• Taiwan's hardware companies are seeking to create a major Taipei–Singapore technology collaboration as a gateway to ASEAN nations. Source
• A small number of Micron workers went on strike last month, in what may be the first industrial action in Taiwan's semiconductor industry. Source

Elsewhere in Asia

• North Korea: The FBI has blamed North Korea for stealing $6.3 billion from Binance in what was reported as the largest cryptocurrency heist to date. Source
• Philippines: The government has ordered 172,654 MacBook Neo laptops for teachers and administrators in Apple’s largest Mac education deal, with distribution scheduled through March 2027. Source
• Singapore: Singapore’s Swap Mobile Lets You Change Phones Every Six Months says the new MVNO lets customers exchange eligible handsets after six months, with each switch starting another 24-month subscription. Source
• Thailand: Opposition leader Natthaphong Ruengpanyawut received an Apple warning that mercenary spyware was targeting his iPhone; the attackers and spyware involved remain unidentified. Source