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March 2025 Updates for Design Engineers


Read the latest semiconductor and electronics news and updates. 

 

In this edition:


Nvidia x Broadcom: Chip Testing on Intel Manufacturing Process

In a significant development for the global semiconductor industry, leading chip designers Nvidia and Broadcom are conducting manufacturing tests using Intel's advanced 18A process technology. This move signals a potential vote of confidence in Intel's efforts to revitalize its foundry business, which has faced challenges in recent years.​



Intel's 18A Process: A Technical Overview

Intel's 18A process represents a critical advancement in semiconductor manufacturing, aiming to compete directly with Taiwan Semiconductor Manufacturing Company's (TSMC) leading-edge technologies. The 18A node incorporates several key innovations:​

  • RibbonFET Transistors: Intel's implementation of gate-all-around (GAA) transistor architecture, known as RibbonFET, enhances drive current and allows for greater transistor density, improving performance and energy efficiency.​

  • PowerVia Technology: This backside power delivery method separates power and signal interconnects, reducing voltage droop and enhancing signal integrity, leading to better overall chip performance.​

These technological advancements position the 18A process to support the demanding requirements of next-generation applications, including artificial intelligence (AI) and high-performance computing.​


Nvidia and Broadcom's Testing Initiatives

The engagement of Nvidia and Broadcom in testing Intel's 18A process involves evaluating the process's capabilities through test chips. These tests are designed to assess factors such as performance metrics, yield rates and compatibility with existing design frameworks. It's important to note that these are preliminary assessments, and while promising, they do not yet constitute full-scale production commitments.​


Implications for Intel's Foundry Business

Securing manufacturing contracts with industry leaders like Nvidia and Broadcom would mark a substantial milestone for Intel's foundry division. Such partnerships could:​

  • Diversify Intel's Revenue Streams: By manufacturing chips for external clients, Intel can reduce its reliance on internal product lines, stabilizing revenue.​

  • Enhance Industry Credibility: Successfully fabricating complex designs for top-tier companies would reinforce Intel's position as a competitive player in the semiconductor manufacturing landscape.​

  • Stimulate Further Innovation: Collaborations with leading designers can drive technological advancements, benefiting the broader industry ecosystem.​


Challenges and Industry Caution

Despite these positive developments, several challenges remain:

  • Process Maturity: Intel must demonstrate consistent yield improvements and process stability to meet the stringent requirements of high-volume manufacturing.​

  • Intellectual Property (IP) Ecosystem: Developing a robust IP library compatible with the 18A process is crucial to attract a broader customer base, particularly smaller design firms that rely on readily available IP blocks.​

  • Competitive Landscape: TSMC's established dominance and ongoing advancements present a formidable challenge. Intel's ability to offer competitive pricing, performance, and reliability will be critical to gaining market share.​


The testing of Intel's 18A process by Nvidia and Broadcom represents a pivotal moment for Intel's aspirations in the foundry sector. While these evaluations are preliminary, they underscore a potential shift in industry dynamics. Intel's ability to address existing challenges and capitalize on this interest will be instrumental in determining its future role in semiconductor manufacturing. To stay informed about the latest global developments in the semiconductor industry, subscribe to our Newsletter.



Microsoft: Investing $279M in South Africa's AI Infastructure

In a strategic move to bolster technological infrastructure in South Africa, Microsoft has announced an investment of $297M by the end of 2027. This initiative aims to expand the nation's cloud computing and artificial intelligence (AI) capabilities, reinforcing Microsoft's commitment to fostering digital transformation across the African continent.​



Expansion of Cloud and AI Infrastructure

Building upon a prior investment of more than $1.1B over the past three years, which established enterprise-grade data centers in Johannesburg and Cape Town, Microsoft's latest funding will further enhance these facilities to meet the escalating demand for Azure services in the region. These data centers are designed to support high-performance computing requirements essential for AI workloads, enabling businesses and governmental entities to deploy advanced AI solutions efficiently.


Commitment to Digital Skills Development

Recognizing the importance of a skilled workforce in maximizing the potential of technological advancements, Microsoft plans to sponsor certification exams for 50K South Africans over the next year. These certifications will focus on high-demand digital skills, including AI, cloud architecture and cybersecurity, equipping individuals with the expertise needed to thrive in an increasingly digital economy. ​


Global Context of Microsoft's Investment

This investment aligns with Microsoft's global strategy to enhance its cloud and AI infrastructure. The company has earmarked approximately $80B for data center development in fiscal year 2025, with significant projects underway in regions such as Poland, Germany and India. These efforts underscore Microsoft's dedication to meeting the growing global demand for AI and cloud services. ​


Implications for South Africa's Digital Economy

South African President Cyril Ramaphosa has lauded Microsoft's investment, viewing it as a testament to the country's potential as a favorable business environment. The enhancement of cloud and AI infrastructure is anticipated to drive innovation, improve service delivery across various sectors and stimulate economic growth by attracting further investments and fostering a digitally skilled workforce. ​


Microsoft's substantial investment in South Africa's AI and cloud infrastructure signifies a pivotal step towards digital transformation in the region. By enhancing technological capabilities and prioritizing skills development, this initiative is poised to contribute significantly to economic growth and position South Africa as a leader in the adoption and production of advanced technologies.


With presence in the South African market, we, at McKinsey Electronics recognize the significance of Microsoft’s investment in AI and cloud infrastructure. We provide competitive pricing and cutting-edge solutions that align with this technological shift, empowering our South African partners to harness AI-driven innovations efficiently.



AIQ x ADNOC: $340M Agentic AI Deal

In a landmark move poised to transform the energy industry, Abu Dhabi-based artificial intelligence firm AIQ has secured a $340M contract with the Abu Dhabi National Oil Company (ADNOC). This three-year agreement aims to deploy advanced agentic AI solutions across ADNOC's upstream operations, underscoring the company's commitment to integrating cutting-edge technology to enhance efficiency and sustainability. ​



ENERGYai: The Core of the Transformation

Central to this initiative is the implementation of ENERGYai, an innovative AI platform developed by AIQ in collaboration with ADNOC experts, G42 and Microsoft. ENERGYai leverages large language model (LLM) technology combined with agentic AI, specifically tailored to ADNOC's operational workflows. This platform is designed to revolutionize various aspects of upstream operations, including:​

  • Seismic Data Analysis: Accelerating the interpretation of seismic surveys, reducing processing times from months to days.​

  • Geological Modeling: Enhancing the accuracy and speed of geological assessments, facilitating more informed decision-making.​

  • Real-Time Process Monitoring: Providing continuous oversight of operations, enabling proactive adjustments to optimize performance.​

By integrating these capabilities, ENERGYai aims to increase production forecast accuracy by up to 90%, significantly boosting operational efficiency. ​


Strategic Objectives and Expected Outcomes

ADNOC's collaboration with AIQ aligns with its strategic objective to become the world's most AI-enabled energy company. The deployment of agentic AI across its upstream assets is anticipated to yield several key benefits:​

  • Operational Efficiency: Streamlining complex processes, leading to cost reductions and improved resource utilization.​

  • Sustainability: Advancing ADNOC's sustainability goals by optimizing operations to reduce carbon intensity.​

  • Innovation Leadership: Setting a global benchmark for AI integration in the energy sector, reinforcing ADNOC's position as an industry leader.​


The first operational version of ENERGYai is expected to be completed by mid-2025, initially featuring five fully functional AI agents focused on subsurface operations. Following successful testing, the platform will be scaled across thousands of wells over the contract period. ​


Broader Industry Implications

This partnership reflects a broader industry trend toward adopting advanced technologies to maintain competitiveness and meet evolving sustainability standards. The successful implementation of agentic AI within ADNOC's operations could serve as a catalyst for similar initiatives across the global energy sector, highlighting the transformative potential of AI in traditional industries.​

The $340M collaboration between AIQ and ADNOC represents a significant milestone in the integration of artificial intelligence within the Emirati energy industry. By deploying the ENERGYai platform, ADNOC aims to enhance operational efficiency, achieve sustainability targets and solidify its position at the forefront of technological innovation in the energy sector.

Contact us today for the latest AI chips and systems.



Italy's Synapsia Signs $2.5B Deal with Emirati Bold Technologies

Italy's Synapsia has entered into a $2.5B agreement with the United Arab Emirates' Bold Technologies to implement advanced AI-driven city management solutions in Abu Dhabi. This collaboration underscores the UAE's strategic commitment to digital transformation and solidifies its position as a regional leader in technological innovation.​



Cognitive City Project: An Evolution of Smart Cities

Central to this partnership is the "cognitive city project," an evolution of the traditional smart city concept. Synapsia's AI technology aims to address critical urban challenges by:​

  • Optimizing Transportation: Implementing AI algorithms to enhance traffic flow, reduce congestion, and improve public transit efficiency.​

  • Streamlining Parking Solutions: Utilizing real-time data analytics to manage parking availability, thereby reducing search times and emissions.​

  • Enhancing Emergency Response: Deploying AI systems to facilitate rapid disaster response and resource allocation during emergencies.​

By integrating these AI capabilities, the project seeks to transform Abu Dhabi's urban infrastructure into an autonomous, self-learning network that optimizes infrastructure, transportation and energy use in real-time. ​


Financial Structure and Implementation Timeline

The agreement, signed on March 3, 2025, outlines a payment structure where Bold Technologies will disburse the $2.5B in five installments over 18 months, each contingent upon achieving specific project milestones. This phased approach ensures systematic progress and accountability throughout the implementation process.​


Formation of My Aion Inc. and Future IPO Plans

As part of the strategic collaboration, Synapsia and Bold Technologies plan to establish a new entity, My Aion Inc., which is slated for an initial public offering (IPO) on the Abu Dhabi Securities Exchange between 2027 and 2029. This move reflects the partners' confidence in the project's long-term viability and their commitment to contributing to the region's economic diversification.​


Strengthening Italy-UAE Economic Ties

This partnership aligns with broader economic initiatives between Italy and the UAE. Following a bilateral summit in February 2025, the UAE pledged to invest $40B in Italy, highlighting a mutual commitment to strengthening economic and technological collaborations. ​


UAE's Ambition in AI Leadership

The UAE's collaboration with Synapsia is a testament to its ambition to become a global leader in artificial intelligence, positioning itself competitively against regional counterparts like Qatar and Saudi Arabia. By integrating advanced AI solutions into urban management, the UAE aims to enhance operational efficiencies, improve quality of life and set new benchmarks for smart city initiatives worldwide.

The $2.5B agreement between Synapsia and Bold Technologies represents a significant milestone in urban innovation. By leveraging advanced AI technologies, Abu Dhabi is poised to transform into a cognitive city, setting a precedent for future urban developments globally.​

To keep up with the latest regional news, subscribe to the McKinsey Electronics newsletter here.


UAE Successfully Launches Etihad-SAT: Advancing Earth Observation and Sovereign Space Capabilities

The United Arab Emirates has marked a significant milestone in its space exploration journey with the successful launch of Etihad-SAT, the nation's first Synthetic Aperture Radar (SAR) satellite. This achievement underscores the UAE's commitment to enhancing its Earth observation capabilities and solidifying its position as a leader in space technology.​



Etihad-SAT was launched aboard a SpaceX Falcon 9 rocket from Vandenberg Space Force Base in California, USA. The Mohammed Bin Rashid Space Centre (MBRSC) confirmed that the first signal from the satellite was successfully received, indicating that the satellite is functioning as expected. ​

As the UAE's inaugural SAR satellite, Etihad-SAT represents a technological leap in the nation's satellite development program. Unlike traditional optical imaging satellites, SAR satellites can capture high-resolution images regardless of weather conditions or time of day, providing consistent and reliable data. Etihad-SAT offers three imaging modes:​

  • Spot Mode: High-resolution imaging for small areas.​

  • Scan Mode: Wide-area coverage for large regions.​

  • Strip Mode: Extended observation for longer regions.​


These capabilities make Etihad-SAT a versatile tool for various applications, including environmental monitoring, disaster management, maritime navigation and smart agriculture. ​

The development of Etihad-SAT was a collaborative effort between MBRSC and South Korea's Satrec Initiative. The partnership encompassed all phases of the satellite's creation, from technical specifications and preliminary design to manufacturing and testing. This collaboration highlights the UAE's dedication to enhancing its national space capabilities through strategic international partnerships and knowledge transfer. ​


The successful deployment of Etihad-SAT aligns with the UAE's broader vision of establishing itself as a prominent player in space science and technology. The data collected by the satellite will support various sectors by providing critical information for sustainable development and environmental conservation. Furthermore, the mission reinforces the UAE's commitment to developing innovative space solutions and contributes to the nation's goal of achieving technological advancement on a global scale. ​


As a proud Emirati company, we, at McKinsey Electronics recognize that the launch of Etihad-SAT marks a pivotal moment in the UAE's space endeavors, showcasing our nation's progress in developing and deploying advanced satellite technology. This accomplishment not only enhances the UAE's Earth observation capabilities but also demonstrates the country's growing expertise and ambition in the field of space exploration.


Saudi Arabia's DataVolt Invests in Net-Zero AI Data Center

In a strategic move aligning with Saudi Arabia's Vision 2030 initiative, DataVolt has committed $5B to develop a net-zero artificial intelligence (AI) data center within NEOM's Oxagon industrial zone. This endeavor underscores the Kingdom's dedication to sustainable technological advancement and positions it as a flourishing hub for digital innovation.​

The collaboration between DataVolt and NEOM focuses on establishing a 1.5-gigawatt (GW) data center campus designed to operate entirely on renewable energy sources. The project is set to unfold in multiple phases, with the initial phase, backed by the $5B investment, expected to be operational by 2028. The facility aims to integrate diverse computing densities and energy-efficient architectures, addressing the escalating energy demands associated with AI and high-performance computing workloads. ​


A cornerstone of this project is its commitment to sustainability. The data center is designed to achieve net-zero carbon emissions by leveraging NEOM's abundant renewable energy resources, including wind and solar power. Advanced cooling technologies will be implemented to enhance energy efficiency, aligning with global efforts to mitigate the environmental impact of data centers, which currently consume approximately 1 to 1.3% of global electricity. ​


This initiative positions Saudi Arabia at the forefront of the global energy transition, reinforcing its ambition to become a regional leader in AI and digital infrastructure. By investing in sustainable data center solutions, the Kingdom aims to attract technology-driven enterprises and foster innovation, thereby diversifying its economy beyond traditional oil revenues. ​


DataVolt's substantial investment in NEOM's net-zero AI data center exemplifies a significant stride towards sustainable technological development. This project not only aligns with Saudi Arabia's Vision 2030 goals but also sets a precedent for integrating renewable energy in large-scale data infrastructure, potentially serving as a model for future developments worldwide.

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