Category: Communications

The market for securities backed by various digital infrastructure — including data centers — could grow about 46% by the end of next year to roughly $115 billion, according to Bank of America.

Data centers account for 61% of the current $79 billion market for digital-infrastructure securitizations, according to BofA’s note. Fiber infrastructure makes up another 20% while cell towers are at 18%. The estimates take into account both asset-backed securities and commercial mortgage-backed securities.

Companies have been developing large data centers to help support demand for artificial intelligence, and banks as well as private lenders have been competing to underwrite such deals. Meta Platforms Inc. picked Pacific Investment Management Co. and Blue Owl Capital Inc. to lead a $29 billion deal for its data-center expansion in rural Louisiana. JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group, meanwhile, are leading a loan of more than $22 billion to support Vantage Data Centers’ plan to build a massive data-center campus, Bloomberg reported last week.

Investors’ concerns about the development of data centers, cloud adoption and the path of investment in AI have been assuaged recently after major hyperscalers reported strong earnings, strategists including Chris Flanagan wrote in the note dated Aug. 22. The four big data-center developers in particular — Microsoft Corp., Alphabet Inc., Amazon.com Inc. and Meta Platforms Inc. — disclosed higher cloud business revenues and reiterated plans for capital spending increases, BofA noted.

Risk premiums on all three types of digital infrastructure ABS — data centers, fiber and cell towers — have tightened significantly over the past two years. While BofA strategists expect limited spread tightening going forward, they see such securitizations as offering attractive relative value compared to some other types of ABS. Bloomberg

India’s semiconductor market is poised for a transformational decade, with industry leaders projecting it to surpass $100 billion by 2030. According to a report by the India Electronics and Semiconductor Association (IESA), the country could cater to nearly 8–10% of global demand, amounting to $40 billion, if policy momentum and execution continue at pace.

Ashok Chandak, President of IESA, highlighted that India has already made significant progress under the Semicon India programme but stressed that the sector requires long-term support.

“It is very clear that the semiconductor industry is a long haul. One programme or a few years of efforts is just the beginning and a starting point… this programme needs to continue for an additional five to ten years minimum, so that it becomes more impactful and self-sustainable in the future,” he said.

Chandak underlined that the next phase, dubbed “Semicon 2.0,” must expand its scope. “The previous one was $10 billion. Equal or more would be welcome, surely. And also the expectation is that this time, it could cover the wider range of topics, including the supply chains, particularly materials, chemicals, and gases.”

On the design front, Chandak pointed out that India already accounts for nearly 20% of the global semiconductor design workforce. He noted that more than 300 institutes now have access to electronic design automation tools under the government’s design-linked incentive scheme, calling it “one of the world’s largest government-supported programmes.”

Despite geopolitical uncertainties, Chandak maintained that India must adopt a balanced global approach.

“No country is able to fulfil 100% of its value chain and demand on its own. We need to establish proof points by executing our currently announced projects… and build interdependence with multiple countries,” he said, citing active interest from global players in the upcoming Semicon India 2025 event.

On capacity creation, Chandak revealed that 10 central government-approved projects and several state-supported initiatives are already underway. “All these projects put together, there is a capacity of about 80 million chips per day… at least three plants would be in pilot production this year,” he said, adding that full-scale operations could enable India to produce 70–72 million chips daily within the next two years. CNBCTV18

President Donald Trump has US buyers lined up for TikTok and could further extend the deadline for China-based ByteDance to divest the app’s U.S. assets, he said, days after the White House joined the short video platform.

Speaking to reporters, Trump dismissed bipartisan security concerns over TikTok, saying his administration would watch for any problems. He said he would talk to Chinese President Xi Jinping “at the right time.”

The Republican president has repeatedly opted not to enforce the deadline following passage of a 2024 law requiring that TikTok stop operating by January 19 of this year. He recently pushed the deadline to September 17.

“I haven’t spoken to President Xi about it,” Trump told reporters during a visit to a White House gift shop across the street from the presidential residence. “In the meantime, until the complexity of things work out, we just extend a little bit longer.”

“We have very substantial American buyers that want to buy it,” he added, without naming any individuals or companies.

Asked if he was concerned about privacy or national security, Trump said: “I’m really not. I think it’s highly overrated … I’m a fan of TikTok.”

Last year’s law requires ByteDance to divest of the app’s U.S. assets or demonstrate significant progress toward a sale. Trump opted not to enforce it after taking office on January 20.

Some lawmakers have criticized the delay, arguing his administration is flouting the law and ignoring national security concerns related to Chinese control over TikTok. Reuters

China proposed rules for internet platform pricing on Saturday, seeking public comment after a raft of complaints by merchants and consumers of unfair or misleading pricing by big platforms.

The draft rules for platforms selling goods or services are meant to encourage price transparency and fairness, the National Development and Reform Commission said in a statement.

Those operating on such platforms shall “agree on and change prices through standardised means such as contracts and orders,” the commission said.

The rules require platform operators and merchants to “adhere to clear pricing regulations, increase the transparency of pricing rules and promptly disclose fee changes to better accept public oversight”, it said.

Merchants have accused the mega platforms of unfairly manipulating prices to bump up sales, while consumers have complained of misleading pricing.

In 2021 Alibaba was fined a record $2.75 billion for anti-monopoly violations, a decision the firm said it accepted, while e-commerce leaders this year have brushed off regulatory risk as they fight price wars in “instant retail”, where delivery can be as quick as half an hour.

The rules will be open for public comment for a month. CNBC

Verizon has agreed to settle a patent infringement lawsuit that led to a $175 million verdict against the telecom giant last month, according to a filing in Texas federal court.

Verizon and patent holder Headwater Research filed their notice of settlement under seal.

Headwater obtained the jury verdict in July based on allegations that Verizon’s mobile phones, tablets and cellular networks infringed its wireless communications patents. Headwater also won a $279 million verdict against Samsung in a related case in the same Marshall, Texas, court in April, and settled similar lawsuits against AT&T and T-Mobile earlier this month.

Tyler, Texas-based Headwater was founded by scientist and inventor Gregory Raleigh. Headwater said in its 2023 complaint against Verizon that its patented technology allows wireless devices to “reduce data usage and network congestion, extend battery life by decreasing power consumption, and enable users to stay connected.”

Headwater said it shared information about its technology with Verizon under a non-disclosure agreement between 2009 and 2011.
Verizon denied the allegations and argued that the patents were invalid. Reuters

Apple Inc. assembly partner Foxconn Technology Group has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country.

The extraction of Chinese workers from the factory of Yuzhan Technology, a Foxconn component unit, in southern Tamil Nadu state is the second such move in a few months. Foxconn has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named as the information is private.

Earlier this year, officials in Beijing verbally encouraged regulatory agencies and local governments to curb technology transfers and equipment exports to India and Southeast Asia in what is a potential attempt to prevent companies from shifting manufacturing elsewhere. It wasn’t immediately clear why the Foxconn workers were sent home, but the move yet again underscores the sway that Chinese technicians and supply chain hold over the manufacturing of high-precision engineered products such as Apple’s iPhone.

The Economic Times earlier reported that Yuzhan’s Chinese staff were leaving. Last month, Bloomberg News reported that Foxconn had asked hundreds of Chinese engineers and technicians to return home from its iPhone factories in India.

The Yuzhan factory makes enclosures, or metal cases, and display modules for older iPhone models and isn’t working on the latest iPhone 17 line as yet. It began production just months ago, and Apple still imports a bulk of its displays, the people said.

For now, Apple can step up display imports and lean on other local suppliers for enclosures. But the removal of experienced Chinese staff threatens to dent the US tech giant’s efforts to rapidly localize its supply chain in India.

Apple has taken a conscious decision to work with Indian suppliers and hasn’t brought in any significant Chinese partners to the South Asian country. Its local partnerships include a growing reliance on conglomerate Tata Group’s electronics manufacturing arm — the only Indian iPhone assembler. While Chinese suppliers have built iPhones for nearly two decades, Indian suppliers sometimes still go through teething problems.

A thaw in the frosty relationship between India and China could help Apple, automakers and other local manufacturers. China has assured India of supplies of rare earth minerals and tunnel-boring machines but discussions are yet to bear results.

Video: China Will ‘Firmly Stand’ With India Against US Tariffs

Cupertino, California-based Apple is producing all four iPhone 17 models in India ahead of their debut next month, marking the first time that all new variations — including pro-level versions — will ship from the South Asian country from the get-go. Bloomberg

Tamil Nadu’s Minister for Information Technology and Digital Services, Palanivel Thiaga Rajan suggested that it is essential for India to tap into its domestic market given the current geopolitical concerns globally.

“After decades of hyper-globalism, the world is heading towards a phase of fragmentation and de-globalisation. Protectionist measures such as tariffs, trade regulations and shifting supply chains are making it increasingly harder for businesses to enter international markets,” he said. “In this climate it’s critical for India to leverage its sheer scale and the strength of its massive domestic consumption market. We will have to focus on building for India – manufacturing local products, by local entrepreneurs for local consumers,” Rajan said.

The minister was speaking at the “ZeroToOne: GenAI Product Day” at the IIT Madras Research Park in Chennai.

He also added that the Tamil Nadu government’s aim is to create a robust innovation ecosystem where even young MSMEs have the tools to adopt AI and digital technologies to design, manufacture and deliver impactful products.

During the event, the minister unveiled MakeGPT, a platform that helps create sophisticated Internet of Things (IoT) systems using natural prompts. The platform, built by IIT Madras Research Park-based Kochadai Technologies, allows users to describe their ideas in plain language and automatically generate complete working IoT solutions.

“Imagine telling an AI ‘Create a soil moisture monitoring system that sends alerts to my phone when plants need water’ and receiving a complete prototype with component lists, firmware code, and assembly instructions,” said Naveena Swamy, Founder, Kochadai Technology Solutions. “That’s the reality MakeGPT delivers today. We’re democratizing hardware innovation for everyone.”

The event saw participants discuss the unique use cases of generative AI in product development and hardware innovation. It also involved live showcases of many GenAI themed student projects. The Hindu BusinessLine

Operators will generate $30 billion from cellular Internet of Things (IoT) connectivity globally in 2030, according to Juniper Research.

This represents a substantial rise of 74% from $18 billion in 2025; driven by a rising demand for operational efficiency and automation.

To capitalise on this growth, Juniper Research urges network operators to innovate how they monetise IoT connectivity, with network application programming interfaces (APIs) emerging as a key technology. By providing standardised, on-demand access to cellular network capabilities, APIs enable operators to shift from monthly subscription charges to usage-based monetisation.

Network APIs Fuel Cellular IoT Adoption

Enterprises increasingly demand flexibility in how they are charged; Juniper Research believes that the established recurring subscription model for connectivity is becoming insufficient in meeting this demand. Instead, operators must support IoT-centric APIs that charge through the usage of IoT networks, rather than solely connectivity.

“Operators will find far more success in the IoT space through usage-based billing. As we move closer to 6G, operators cannot repeat the mistakes of 5G. Connectivity alone is not enough. Operators must leverage software-defined networks to increase revenue through billing mechanisms that align with high data usage.” explained Alex Webb, Senior Research Analyst at Juniper Research.

Network APIs key opportunity for future revenue growth
To maximise the impact of APIs, operators must simplify how enterprises use these advanced network capabilities. Juniper Research urges operators to implement standards-based network APIs through developer portals. This will enable all enterprises, regardless of their experience with networking protocols, to easily deploy network applications without needing deep telecom expertise; maximising cellular IoT’s appeal. Juniper Research

South Korea vowed to make investment in artificial intelligence a top policy priority, as the government slashed its economic growth projection for this year due to trade headwinds caused by US tariffs.

In the first bi-annual economic policy plan under President Lee Jae Myung’s new administration, the finance ministry said it would introduce from the second half of 2025 policy packages for 30 major AI and innovation projects.

These include AI technologies for robots, cars, ships, home appliances, drones, factories and chips, as well as advanced materials and cultural products such as “K-beauty” and “K-food”.

“A grand transformation into AI is the only way out of growth declines resulting from a population shock,” the ministry said in a statement, referring to South Korea’s record low birthrate.

While the government plans to include measures such as financial investments, tax incentives and regulatory improvements in the packages, it said it would also create a 100 trillion won ($71.56 billion) fund, jointly with the private sector, to invest in strategic sectors.

The policy plans aim to make the country one of the world’s top three AI powers and boost potential economic growth rates in a country with the world’s lowest birth rate, the ministry said.

South Korea’s potential growth rate is estimated at around 2% and expected to fall below 1% by the late 2040s, though the government hopes the new policies can lift the rate to 3%.

Asia’s fourth-largest economy grew in the second quarter at the fastest pace in more than a year, as consumer demand rebounded and technology exports remained robust, but still faces trade uncertainties due to higher US tariffs.

Last month, South Korea agreed to a US trade deal that reduces tariffs on the Asian ally to 15% from a threatened 25%, but still higher than the baseline 10% that had been in place.

The finance ministry expects the export-reliant economy to grow 0.9% this year, down sharply from the 2.0% expansion last year and its previous projection of 1.8% in January. The economy is expected to grow 1.8% in 2026, the ministry said.

Exports are forecast to grow 0.2% in 2025, but fall 0.5% in 2026, according to the ministry. In 2024, exports jumped 8.1%.

Lee’s liberal administration said it would increase government budget spending for next year at a higher rate than this year, emphasising its proactive fiscal policy stance.

Other major policy plans announced on Friday include support measures for childcare and work-life balance, stronger sanctions to prevent industrial accidents, regulatory frameworks for digital assets and capital market reforms to win a developed-market designation from a global stock index provider. Reuters

US technology shares are showing signs of vulnerability after a massive run, which has some investors pointing to overdone AI-driven gains while funds have taken steps to position away from the high-flying sector.

Investors are looking to de-risk portfolios or lock in profits during a seasonally difficult period for stocks. Friday’s looming speech by Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium is creating caution, investors said, with the potential for volatility if his comments fail to meet growing market expectations that the central bank is poised to cut interest rates.

“When you have overcrowding and you have had such strong performance, it doesn’t take much to see an unwind of that,” said Keith Lerner, co-chief investment officer at Truist Advisory Services. “At the same time this week, everyone is waiting for the Fed, and there is repositioning ahead of that.”

The heavyweight S&P 500 tech sector fell sharply for a second consecutive session on Wednesday, putting its decline on the week at about 2.5%, while the tech-heavy Nasdaq Composite was off about 2% for the week. Shares of some highflyers, including Nvidia Corp and Palantir Technologies, were getting hit particularly hard.

The pullback comes after a huge rally in which the tech sector soared over 50% through last week since the market’s low for the year in April. That easily topped the 29% gain of the broader S&P 500 during that period and drove up valuations of tech stocks to lofty levels.

Investors cited wariness about the artificial intelligence trade, which has been a key driver of tech stocks and the broader market as indexes have soared to record highs this year.

Shares of Nvidia, the semiconductor giant that has symbolized the AI trade, have gained about 30% this year while shares of AI-focused data and analytics firm Palantir have roughly doubled year-to-date.

Indeed, the tech sector’s price-to-earnings ratio recently reached about 30 times expected earnings for the next 12 months, its highest level in a year, according to LSEG Datastream, while tech’s share of the overall S&P 500’s market value is nearly its highest since 2000.

Recent cautionary signs included a study from researchers at the Massachusetts Institute of Technology that found that 95% of organizations are getting no return on AI investments, as well as comments by OpenAI CEO Sam Altman, who told tech news website the Verge last week that investors may be getting overexcited about AI.

Since last week, some AI-linked shares have pulled back sharply: Nvidia has dropped about 5% while shares of Palantir have slumped some 16%. In Europe, stocks of so-called AI adopters have been under pressure over concerns over how powerful new AI models could disrupt the software sector.

Still, some investors said, the caution is unlikely to be a sign that enthusiasm over AI is fizzling.

“These are price corrections,” said Andrew Almeida, director of investments at financial planning network XYPN. “But if you look at the big picture, it’s clear that more people will be investing more dollars in AI infrastructure. This is certainly not a ‘reckoning’ with the AI theme.”

Investors also could be paring back their stock exposure during a traditionally rocky period for equities. August and September rank as the worst-performing months on average for the S&P 500 over the past 35 years, according to the Stock Trader’s Almanac.

“Valuations were stretched, these names have not taken a breather, and we’re going into a tougher season for stocks,” said King Lip, chief strategist at Baker Avenue Wealth Management.

Other sectors such as consumer staples, healthcare and financials were up on the week, while relative strength for the equal-weight S&P 500 signaled to some investors a possible start of broadening of gains beyond the massive tech stocks that have led indexes higher.

Powell’s upcoming speech comes as Fed fund futures on Wednesday were indicating an 84% chance that the central bank will cut rates at its next meeting on September 16-17.

Investors will be watching to see if Powell gives any indication that the central bank is on track for such a move or if he pushes back on the market’s expectation for easing, which could spark volatility. Tech stocks tend to carry higher valuations which could make them sensitive to higher-than-expected interest rates going forward.

“There are a lot of people who have overweighted tech, and it has worked for them,” said Chuck Carlson, chief executive officer at Horizon Investment Services.

“They don’t want to get caught on the wrong side of that if in fact, the Fed doesn’t do anything in September. So I think that is also causing (investors) to maybe not necessarily get out of tech, but to reduce the overweight a little bit.” Reuters