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Samsung Electronics Union Approves 5.1% Wage Increase

Samsung Electronics’ main union in South Korea has approved a 5.1% wage increase for 2024, finalizing a deal reached last month between the company and the National Samsung Electronics Union (NSEU). The agreement, which required ratification by union members, also includes additional benefits such as company product purchase points and 30 Samsung Electronics shares per employee.

The NSEU, representing approximately 36,000 members—around 30% of Samsung’s South Korean workforce—has previously engaged in strikes to demand better pay and working conditions. However, Samsung maintained that production remained unaffected during the disputes.

This resolution comes as Samsung Electronics faces intensified competition in the semiconductor market, particularly in AI-related memory chip production. The deal helps stabilize labor relations at a crucial time for the world’s largest memory chipmaker as it seeks to strengthen its position in the industry.

Malaysia to Pay $250 Million for Arm Holdings Chip Design

Malaysia has announced a $250 million agreement with Arm Holdings, spanning 10 years, to acquire chip design blueprints for local manufacturers. The deal aligns with the country’s ambition to develop its own graphics processing unit (GPU) chips within the next five to ten years, amid rising demand for artificial intelligence (AI) and data centers.

Prime Minister Anwar Ibrahim stated that the partnership would enable Malaysia to design, manufacture, and distribute AI chips globally. As part of the deal, Arm will establish its first Southeast Asian office in Kuala Lumpur, serving as a hub for regional expansion, including Australia and New Zealand.

Arm CEO Rene Haas emphasized Malaysia’s strong foundation in the semiconductor industry, citing its expertise in advanced packaging, assembly, and manufacturing. Economy Minister Rafizi Ramli revealed that the agreement covers seven high-end chip designs and includes a training program for 10,000 engineers.

The initiative aims to strengthen Malaysia’s semiconductor ecosystem by fostering 10 local chip companies, each projected to generate annual revenues between $1.5 billion and $2 billion. The government plans to develop a complete supply chain for AI servers, autonomous vehicles, IoT, and robotics, prioritizing local firms for key production roles.

Since 2023, global tech giants such as Microsoft, Nvidia, Google, and ByteDance have invested billions in Malaysia’s digital infrastructure, particularly in cloud services and data centers. The country is also constructing Southeast Asia’s largest integrated-circuit design park, offering tax breaks and subsidies to attract international tech players, with Arm expected to play a central role.

Malaysia Investigates Server Shipments Tied to Singapore Fraud Case

Malaysia has launched an investigation into whether local laws were violated in the shipment of servers linked to a fraud case in Singapore, as the equipment may have contained advanced artificial intelligence (AI) chips subject to U.S. export restrictions.

The case, which surfaced late last month, led Singaporean authorities to charge three men with fraud. Reports suggest the case involves the transfer of Nvidia AI chips to Chinese AI company DeepSeek. Singapore stated that the servers, supplied by U.S. firms, were shipped to Malaysia and may have contained Nvidia chips. However, it has not clarified whether these components fall under U.S. export controls.

Malaysia’s trade ministry issued a statement confirming that the government is taking “necessary actions” to determine if any Malaysian laws were breached regarding the shipment of U.S.-sanctioned AI chips. It further emphasized ongoing collaboration with both the United States and Singapore to develop effective measures for addressing trade compliance issues involving restricted technology.

Meanwhile, U.S. authorities are investigating whether DeepSeek has been using restricted American-made chips to develop its AI models. The Chinese firm’s advancements in AI have drawn significant global attention, particularly after its model’s performance made headlines in January.