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Japanese Semiconductor Startup Secures $21 Million In Grants For Edge AI
Japanese Semiconductor Startup Secures $21 Million In Grants For Edge AI

Forbes

timea day ago

  • Business
  • Forbes

Japanese Semiconductor Startup Secures $21 Million In Grants For Edge AI

EdgeCortix's Sakura-II module. As Japan races to develop its domestic semiconductor ecosystem, Tokyo-headquartered chip design startup EdgeCortix announced it received 3 billion yen ($21 million) from a government-backed agency to develop specialized chips that can power 'edge AI,' a rapidly growing field of AI that involves running applications on devices themselves instead of on the cloud. The fresh funds, in the form of a project award from Japan's New Energy and Industrial Technology Development Organization (NEDO), bring the five-year-old company's total funding to $86 million, including $49 million in non-dilutive government grants and $37 million in equity financing. It received a 4 billion yen ($27.7 million) subsidy from a separate NEDO program last November. Across three previous equity funding rounds, with the most recent being a $20 million raise in October 2023, the startup's investors include SBI Investment, a CVC unit of Japanese financial services conglomerate SBI Group; Monozukuri Ventures; Seoul-based VC firm Futureplay; and automotive chips maker Renesas Electronics, formerly under Japanese electronics giant NEC. Renesas is also a customer of EdgeCortix. 'Building systems that are significantly more performance-per-watt efficient for AI processing than the current status quo, whether that's GPUs or other types of systems, especially in constrained environments…that is a critical factor for almost all edge applications,' says Sakyasingha Dasgupta, founder and CEO at EdgeCortix, in a video interview. 'That essentially differentiates us from the broader edge AI market.' In addition to the startup's focus on optimizing energy efficiency, Dasgupta adds, what distinguishes EdgeCortix is its architecture, referring to the design and programming that powers chips. Its patented 'Dynamic Neural Accelerator' architecture is an IP core, akin to a 'brain' for AI computing that can direct processors within a chip and adjust the way its components interact. This IP core can be integrated with processors such as neural processing units (NPU), which are tailored for machine learning. The latest grant will finance the development of EdgeCortix's new chiplet, a type of chip that uses interchangeable components, as opposed to monolithic ones. Dubbed 'NovaEdge,' EdgeCortix's chiplet for edge AI is designed for high-performance generative AI inference and on-device learning, the company says. Founded in 2019, EdgeCortix operates as a fabless semiconductor company, meaning it does not own its own fabrication facility, or 'fab.' The NovaEdge chiplet will utilize a 12-nanometer node produced by billionaire Morris Chang's Taiwan Semiconductor Manufacturing Co. (TSMC). EdgeCortix plans to commence mass production at TSMC subsidiary Japan Advanced Semiconductor Manufacturing (JASM)'s facility in Kumamoto, Japan, by 2027. A plant of Japan Advanced Semiconductor Manufacturing Company (JASM). With a wide range of applications, ranging from robotics to industrial automation, EdgeCortix's chips and accompanying software have recently gained traction in the defense industry. Earlier in May, the startup inked an agreement with the U.S. Department of Defense's venture-oriented Defense Innovation Unit (DIU) to use EdgeCortix's products for defense technologies, including AI-powered vision and generative AI. In December, the DIU had announced it would launch a new effort to accelerate the adoption of generative AI in both warfighting and enterprise management. Specifically, on the battlefield, edge AI may help quickly process sensitive information in environments with limited network connectivity or potential cybersecurity threats. Tech giant Palantir–cofounded by billionaires Peter Thiel, Alexander Karp, Stephen Cohen and Joe Lonsdale–has developed a range of edge AI offerings for military purposes, including Skykit, a backpack-sized server that can act as a fully operational intelligence unit for soldiers, analyzing data from sensors on drones and surveillance equipment. In the nascent field of edge AI, the decentralization of AI represents 'a profound shift in the technological landscape,' according to a report published in February by consulting firm Deloitte. Such computing developments may be particularly effective for use cases 'requiring rapid responses or operating in disconnected environments,' including smart home devices, autonomous vehicles, wearable health monitors, and industrial Internet of Things (IoT) systems. Global spending on edge infrastructure is projected to grow from $25.3 billion in 2022 to $55.6 billion by 2027, the report added, citing research from the International Data Center (IDC). A Palantir Technologies Skykit on display. Japan's government-backed investments align with broader efforts to bolster domestic chip design and manufacturing, with the aim of establishing greater independence for advanced AI technologies. Last November, Prime Minister Shigeru Ishiba announced a $65 billion plan to invest in the country's chip and artificial intelligence industry by 2030, according to local media. Central to these efforts is the state-backed chipmaker Rapidus. In March, the Japanese government pledged an additional $5.4 billion to Rapidus, bringing its total government subsidies or grants to around $11.5 billion. Headquartered in Tokyo and backed by industry giants, including financial services groups MUFG Bank and SoftBank, electronics makers NEC and Sony, Toyota, and telecoms provider NTT, Rapidus aims to launch commercial production of 2-nanometer chips—some of the world's thinnest and most advanced—by 2027. A major link in the global semiconductor supply chain, Japan is also home to industry giants including billionaire Uchiyama family's Lasertec, which manufactures chip testing equipment; KKR-backed chip production equipment maker Kokusai Electric; Bain-backed Kioxia, Advantest (chip testing equipment); and Sumco, a silicon wafer supplier.

US imposes new rules to curb semiconductor design software sales to China
US imposes new rules to curb semiconductor design software sales to China

TechCrunch

timea day ago

  • Business
  • TechCrunch

US imposes new rules to curb semiconductor design software sales to China

It appears the Trump administration has imposed new export controls on chip design software as it seeks to further undermine China's ability to make and use advanced AI chips. Siemens EDA, Cadence Design Systems and Synopsys all confirmed that they have received notices from the U.S. Commerce Department about new export controls on electronic automation design (EDA) software to China. EDA tools are primarily used to aid with the design and validation of semiconductor manufacturing, testing, and for monitoring performance and quality. They are used by chip foundries, chipmakers, networking hardware companies, the automotive industry, and many more. Siemens EDA, a division of German tech conglomerate Siemens, told TechCrunch that it has received a notice from the Commerce Department's Bureau of Industry and Security (BIS) last week about new export controls on EDA software to China and Chinese military end users. 'Siemens has supported customers in China for more than 150 years and will continue to work with our customers globally to mitigate the impact of these new restrictions while operating in compliance with applicable national export control regimes,' the company said. U.S.-based Synopsys, which also makes EDA software, said on Thursday that it had also received a similar letter from the BIS. The company also suspended its forecast for the third quarter and full-year 2025. Cadence also received a notice from the BIS saying a license is now required for 'the export, re-export or in-country transfer of electronic design automation software' to customers in China. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW The news was first reported by The Financial Times. The new export rules come as the U.S. ramps up its efforts to hinder Chinese companies as the battle for AI supremacy heats up. But these export controls are increasingly hurting the U.S. chip industry, which has long enjoyed significant market share in China. Nvidia alone has incurred billions in losses due to restrictions on sales of its H20 and Hopper AI chips to Chinese customers. The company, along with rival AMD, is even said to be working on selling lower-powered versions of its AI chips to Chinese customers. The U.S. Commerce Department did not immediately return a request for comment outside regular business hours.

Synopsys suspends forecasts after US cracks down on China chip software exports
Synopsys suspends forecasts after US cracks down on China chip software exports

Reuters

time2 days ago

  • Business
  • Reuters

Synopsys suspends forecasts after US cracks down on China chip software exports

May 29 (Reuters) - Synopsys (SNPS.O), opens new tab suspended its annual and quarterly forecasts just a day after issuing them, as new U.S. export restrictions on China cast uncertainty over its ability to sell chip design software in the key market. The company said it received a letter from the Bureau of Industry and Security (BIS) and the U.S. Department of Commerce, informing Synopsys of new export restrictions related to China, after reporting results on Wednesday. "Synopsys is currently assessing the potential impact of the BIS letter on its business, operating results and financial condition," it said in a statement.

US Tightens China Chip Curbs by Targeting Design Software
US Tightens China Chip Curbs by Targeting Design Software

Yahoo

time3 days ago

  • Business
  • Yahoo

US Tightens China Chip Curbs by Targeting Design Software

(Bloomberg) -- The Trump administration is moving to restrict the sale of chip design software to China, people familiar with the matter said, as the US government evaluates a broader policy announcement on the issue. NYC Congestion Toll Brings In $216 Million in First Four Months NY Wins Order Against US Funding Freeze in Congestion Fight NY Congestion Pricing Is Likely to Stay Until Year End During Court Case The Commerce Department's Bureau of Industry and Security sent letters to some of the leading providers of electronic design automation, or EDA, last Friday telling them to halt shipments to Chinese customers, said the people, asking not to be identified because the policy isn't yet public. Top makers of the technology include Cadence Design Systems Inc., Synopsys Inc. and Germany's Siemens AG. 'The Commerce Department is reviewing exports of strategic significance to China,' an agency spokesperson said. 'In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending.' Shares of Cadence fell 10.7% to $288.61 in New York trading, the worst single-day drop since the start of the pandemic in March 2020. Synopsys fell 9.6% to $462.43, its steepest decline since December. It's unclear how broad the restrictions will be, although it could mean an effective ban on doing business in China, according to one of the people. Synopsys gets about 16% of its revenue from China, while Cadence gets about 12%. 'On May 23, the US Government informed the Electronic Design Automation (EDA) industry about new export controls on EDA software to China and Chinese military end users globally,' a Siemens spokesperson said via email. 'Siemens has supported customers in China for more than 150 years and will continue to work with our customers globally to mitigate the impact of these new restrictions.' Synopsys Chief Executive Officer Sassine Ghazi acknowledged reports about the letter but said the company hadn't gotten a notice from BIS. 'We cannot speculate about any potential impact to a notice that we have not received,' he said on a conference call Wednesday to discuss the company's latest results. Cadence declined to comment. The Financial Times reported earlier on the letters. Washington has employed an escalating approach to curbing Beijing's ambitions to build a domestic semiconductor industry. It started by cutting China off from equipment used to make the most advanced electronic components then gradually broadened the scope of the rules. Software from Cadence and Synopsys is used to design everything from the highest-end processors for the likes of Nvidia Corp. and Apple Inc. to simple parts like power-regulation components. The US has also moved to keep the most advanced semiconductors out of China. Nvidia has been the main target of increasingly strict US export controls — in part because its chips are the gold standard for training artificial intelligence models. The Trump administration this year banned Nvidia from selling its H20 chips to Chinese customers, the third round of such restrictions since 2022. Nvidia CEO Jensen Huang has publicly objected to the restrictions and declared the US policy a 'failure.' Export controls by the US have emerged as a flashpoint in trade negotiations between Washington and Beijing. Chinese officials claiming that US restrictions — along with efforts to pressure allies not to use Huawei Technologies Co.'s latest Ascend chip — violated the spirit of recent discussions in Geneva aimed at defusing broader tensions over tariffs on the world's second largest economy by President Donald Trump. --With assistance from Ian King and Catherine Lucey. (Updates with comment from Siemens in sixth paragraph) Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

US curbs chip design software, chemicals, other shipments to China
US curbs chip design software, chemicals, other shipments to China

Free Malaysia Today

time3 days ago

  • Business
  • Free Malaysia Today

US curbs chip design software, chemicals, other shipments to China

Chinese chip design customers rely heavily on top-of-the-line US software. (Pexels pic) WASHINGTON : The US has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licenses already granted to certain suppliers, said three people familiar with the matter. The new restrictions – which are likely to escalate tensions with Beijing – appear aimed at choke points to prevent China from getting products necessary for key sectors, one of the people said. Products affected include design software and chemicals for semiconductors, butane and ethane, machine tools, and aviation equipment, the people said. Many companies received letters from the US Department of Commerce over the last few days informing them of the new restrictions. Firms that supply electronic design automation (EDA) software for semiconductors were sent letters last Friday that licenses would now be needed to ship to Chinese customers, two of the sources said. The electronic design automation software makers include Cadence, Synopsys and Siemens EDA, one said. The two sources said the commerce department will review requests for licenses to ship to China on a case-by-case basis, suggesting the action was not an outright ban. It is unclear whether the new restrictions are part of a broader strategy to create leverage for trade talks during a pause in the imposition of higher tariffs. The commerce department said it is reviewing exports of strategic significance to China, while noting 'in some cases, commerce has suspended existing export licenses or imposed additional license requirements while the review is pending.' The White House did not immediately respond to a request for comment. Shares of Cadence, which declined to comment, closed down 10.7% and shares of Synopsys fell 9.6%. Synopsys' CEO Sassine Ghazi said in a call with analysts that the company had not received a letter nor had it heard from the Commerce department's bureau of industry and security, which enforces export controls. 'We are aware of the reporting and speculations, but Synopsys has not received a notice from BIS … We have not received a letter,' Ghazi said. After the market closed, Synopsys reaffirmed its revenue forecast for 2025. Its shares and those of Cadence bounced back 3.5% in trading after the close. Siemens EDA did not immediately respond to a request for comment. Any move to strip the software makers of their Chinese customers could deal a blow to their bottom line and to their Chinese chip design customers, which heavily rely on top-of-the-line US software. 'They are the true choke point,' said a former commerce department official, who added that rules restricting the export of EDA tools to China have been under consideration since the first Trump administration, but were ruled out as too aggressive. Synopsys relies on China for about 16% of its annual revenue, and China accounts for about 12% of annual revenue for Cadence. Synopsys, which partners with chip companies such as Nvidia, Qualcomm and Intel, provides software and hardware used for designing advanced processors. The Financial Times earlier reported that the Trump administration had ordered the software firms to stop selling their services to Chinese groups.

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