Chip designer MediaTek is allocating $5 billion for long-term growth, focusing on AI chips for data centers to diversify from smartphones. Meanwhile, Erex and Samsung's trading arm will build a biomass power plant in Japan by fiscal 2029 to supply renewable energy for AI data centers. In the U.S., Mitsubishi Electric is repurposing an Ohio plant to produce cooling systems for data centers, driven by AI infrastructure demand.
Taiwanese chip designer MediaTek has approved a $5 billion financing budget to fuel its long-term expansion, with a significant portion dedicated to developing artificial intelligence chips for data centers. This strategic move aims to decrease the company's dependence on the smartphone market and establish it as a key provider of custom AI chips for cloud service providers. The company's board has greenlit this substantial investment to support its growth ambitions in the burgeoning AI sector.
In parallel, Erex and Samsung's trading unit are collaborating to construct a biomass power plant in Japan. This facility is slated for completion by fiscal year 2029 and is intended to deliver a stable supply of renewable energy. The primary objective is to meet the escalating energy demands of data centers that are increasingly supporting artificial intelligence workloads. This initiative highlights the growing need for sustainable energy solutions to power the AI revolution.
Further addressing the infrastructure needs of AI, Mitsubishi Electric is set to produce data center cooling systems in the United States. The company will repurpose a section of an automotive parts manufacturing plant located in Ohio. This expansion into manufacturing cooling systems, including air conditioning and water cooling solutions, is a direct response to the heightened demand driven by the expansion of artificial intelligence infrastructure. The move signifies a commitment to supporting the U.S. data center market.
Taiwanese chip designer MediaTek has approved a $5 billion financing budget to fuel its long-term expansion, with a significant portion dedicated to developing artificial intelligence chips for data centers. This strategic move aims to decrease the company's dependence on the smartphone market and establish it as a key provider of custom AI chips for cloud service providers. The company's board has greenlit this substantial investment to support its growth ambitions in the burgeoning AI sector.