AI Hardware - Geopolitics

AI is not just software - while much of the regulations/frameworks and guidelines focus on software and data - you do need to consider hardware. Think of the USA Chips & Science Act, Global China AI Initiative remarks, and the overall push for nearshoring, reshoring, or friendshoring taking place, suggesting that AI hardware is becoming increasingly political and competitive. Of course you need to look at where raw materials are sourced, fabricated, manufactured etc. For anything semi-conductor this space may change quickly with synthetic biology and wipe out current industries or competitiveness. Just want to highlight a key development this year, in May.

Make in India – Since May, under the country's $2 billion production-linked incentive (PLI) programme for information technology hardware, companies like Intel, Apple via Foxcon (some parts of iPhone 15), DELL, Hewlett Packard, Asus, Acer, Google (for Pixel 8), and Lenovo have applied to begin manufacturing in India with Indian partners. There have been 40 companies that have applied. What you don't know is that with many Global North countries distancing themselves from China, India becomes the next big market (more than US$ 1 billion population). India imposed licensing requirements on imports of laptops, tablets, PCs, on August 3, and then removed them on September 23, but very likely in near future to reintroduce them (expected November 1, 2024) and may have them as a quota against exports or more customs duties (though this may not be the only way for regulating imports) to promote those products “Made in India”. More information here.