This week’s stories cover two semiconductor and one sustainability issues

1-Qualcomm in search of acquiring Intel’s chip-design arm

Qualcomm looks to acquire portions of Intel’s design arm to boost the company’s product portfolio, according to two sources familiar with the matter. I saw this scoop at Reuters and  Qualcomm has been searching different parts of Intel, which is struggling to generate cash and looking to separate business units and sell off other assets, the people said.

“Other pieces of Intel such as the server segment would make less sense for Qualcomm to acquire, another source with knowledge of Qualcomm’s operations said. Qualcomm has not approached Intel about a potential acquisition, an Intel spokesperson said. Intel is “deeply committed to our PC business,” the spokesperson said.”

Qualcomm, which is known for chips available in smartphones Apple as a customer, has been working on plans to buy different units of Intel for months. Qualcomm’s interest and plans have not been finalized and could change, according to the sources.

Reuter’s story underlined that Intel’s board is set to meet this week to weigh a proposal from Intel CEO Pat Gelsinger and other executives on how to trim its operations in an attempt to save cash. Potential options include a sale of its programmable chip unit, Altera, as Reuters put it.  

2- Europe’s semiconductor industry calls for ‘Chips Act 2.0’

The EU targets to manufacture 20% of the world’s chips by 2030, claimed by European Semiconductor Industry Association, namely ESIA. The association represents Europe’s semiconductor sector and, called for an “immediate Chips Act 2.0” — if the bloc is to maintain momentum in the global race for technological leadership.

I read this story at The Next Web and  Chips Act entered into force in September 2023,. aiming to mobilize €43bn in public and private investments. “The EU has still to approve state aid for Intel’s planned €30bn mega fab in Germany. Last month, it finally approved €5bn in support of TSMC’s upcoming chip plant in Dresden — a year later after the Taiwanese chip giant announced its commitment to invest in the bloc,” according to the story.

Let me add that ESIA announced that annual semiconductor sales in the European market reached $ 53.809 billion in 2022.

3-Global data center industry to emit 2.5 billion tons of CO2 by 2030: Morgan Stanley

A surge in data center construction is projected to generate approximately 2.5 billion metric tons of carbon dioxide-equivalent emissions globally by the end of the decade, according to research by Morgan Stanley.

I saw this story at Reuters and the growth is expected to drive increased investments in decarbonization efforts. Major tech companies such as Google, Microsoft, Meta, and Amazon, known as hyperscalers, are leading the rapid expansion of energy-intensive data centers to support their AI and cloud initiatives.

On the other hand, Morgan Stanley’s report highlights that this expansion will bring a significant market for decarbonization solutions. The greenhouse gas emissions from the global data center industry are estimated to be about 40% of the total annual emissions of the U.S. The construction of these large-scale data facilities is likely to boost investments in clean energy, energy-efficient equipment, and environmentally friendly building materials.(I have a story here about Nivogo, a Turkish circular economy startup)

In addition, technologies such as carbon capture, utilization, and sequestration (CCUS) and carbon dioxide removal (CDR) processes are expected to see increased support as tech companies strive to meet their climate goals.