Nokia's Q1 sales drop 19% yoy as mobile operators reduce spending

Nokia reported Q1 2024 sales of EUR 4.667 billion, a drop of 19% yoy in constant currency (-20% reported). Q1 comparable diluted EPS amounted to EUR 0.09; reported diluted EPS of EUR 0.08.

Highlights

Mobile Networks Division

The Mobile Networks division faced significant challenges in the first quarter, with net sales falling by 37% in constant currency, primarily due to reduced spending in North America and India. The slowdown in India was anticipated following the rapid deployment of 5G in the first half of 2023, and the outlook for the region remains unchanged for the full year. However, the division experienced a robust gross margin of 42%, a notable improvement from 34% in the previous year. This improvement was partly due to a favorable shift in regional and product mix and partly due to exceptionally low indirect costs of sales. The division expects the first quarter to be the lowest point in demand, with activities expected to pick up progressively through the rest of 2024.

Network Infrastructure Division

The Network Infrastructure division of Nokia has shown promising signs of recovery, continuing the momentum of improved order intake from the end of the previous year into the first quarter. This uptick in orders contributed to year-on-year growth and an increased backlog. Specifically, the Fixed Networks segment has a positive outlook for 2024, often being an early indicator of market recovery. Conversely, the Optical Networks segment may experience a slower recovery. Despite broader economic challenges, the division is optimistic about returning to net sales growth in 2024, particularly with a stronger performance expected in the second half of the year.

Nokia Technologies Division

Nokia Technologies had an exceptionally strong start to the year, underscored by several significant patent licensing agreements. These deals boosted the division's annual licensing net sales run-rate from between EUR 0.9 to 1.0 billion in the fourth quarter of the previous year to approximately EUR 1.3 billion in the first quarter. The division also recorded over EUR 400 million in catch-up net sales during this period. With the smartphone licensing renewal cycle now complete and no major renewals on the horizon for several years, Nokia Technologies is poised for a period of stability. Looking forward, the division plans to focus its efforts on expanding into new growth areas, aiming to elevate its annual licensing net sales run-rate to between EUR 1.4 to 1.5 billion in the mid-term.

Cloud and Network Services Division

The Cloud and Network Services division began the year slowly, impacted by the challenging spending environment. Nevertheless, the division is witnessing improving order intake and momentum in its pipeline. A significant development has been progress with the Network as Code platform, which enables operators to monetize their 5G investments by offering developers advanced API access to the network. This platform has already attracted 11 operators, with many more in active discussions, promising new revenue streams and strategic growth in the future.

"We have been executing quickly on the operating model changes we announced back in October along with our cost savings roadmap. These actions, combined with our expectation for improved net sales growth in the second half of the year, supported by our order backlog, mean we are solidly on track to achieve our full year comparable operating profit outlook of EUR 2.3 to 2.9 billion and free cash flow conversion of 30% to 60%," stated Nokia CEO Pekka Lundmark.

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Napatech expands IPU Portfolio with 400GbE powered by Altera and Intel

Napatech disclosed the expansion of their IPU product line to include 400 GbE solutions based on the latest generation of technology from Intel and Altera.

In 2023, Napatech developed the F2070X product line of production-grade hardware with turnkey software that delivers a 200 Gbps SmartNIC or IPU for a variety of top applications, services, and use cases. The products are based on Altera’s industry-leading IPU Platform F2000X-PL, anchored by the successful joint effort that delivered F2070X solutions optimized for leading data center use cases that include network, storage, and security offload and acceleration. Strong customer demand and early design-win success have resulted in initial orders for the F2070X, speaking to the value of Napatech’s turnkey solutions.

The next stage of the collaboration is a logical continuation, scaling the platform by 2X in throughput and the option for the 400 Gbps IPU, defined by Altera’s Hot Springs Canyon architecture. It is packed with the latest technology from Intel and Altera, including the Intel Xeon D processor and Agilex 7 I-Series FPGA. The products also feature an innovative, disaggregated design that unlocks new network architectures, applications, and services. It allows deployment as a SmartNIC that can be expanded to IPU configurations with an optional processor. The disaggregation also provides flexible combinations of FPGA and processor resources that deliver customers the optimal mix of functionality, performance, size, cost, and power while supported in standard, high-volume servers from leading OEMs.

The new SmartNIC and IPU solutions, based on the Hot Springs Canyon architecture, are designed for the highest volume and growth segments for programmable NICs. These include modern cloud and edge computing applications and services, AI infrastructure, disaggregated storage, hybrid multi-cloud enterprise business applications such as data analytics and cybersecurity, and other high-volume, distributed use cases. 

Altera and Napatech collaborated on the detailed specifications of the Hot Springs Canyon architecture and initial product designs in partnership with a tier-1, global server OEM that continues to lead in enterprise and cloud data centers. Consequently, this next phase of the partnership again includes significant contributions by all parties reflecting the shared commitment to bringing this differentiated solution to the market.

“Through generations of innovation, Altera and Intel have earned the trust and confidence of cloud, enterprise, and telecom data center operators,” said Jarrod Siket, chief marketing officer at Napatech. “Napatech continues to benefit from their product and technology leadership, as well as sales, marketing, and business development strengths, that help to unlock Napatech’s strategic value for our customers and shareholders.”

“Together with Napatech, we extend the success of Altera’s 3rd generation IPU platform from a majority of the global hyperscale, next wave and AI specialty cloud service providers into the wider public, private, and on-premise data center markets for cloud and enterprise market segments,” said Jim Dworkin, Vice President and General Manager of the Cloud & Enterprise Acceleration Division at Altera. “We are pleased to see Napatech continuing to expand its IPU and SmartNIC portfolio with market-leading hardware and software providing customers with best-in-class, turnkey data center networking, storage, security, and telemetry solutions based on Altera technology.”

https://www.napatech.com/media/press-releases/napatech-expands-ipu-portfolio-with-400gbe-solution-powered-by-altera-and-intel/

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Paratus powers Johannesburg-to-Lisbon route with Infinera

Paratus Group, a prominent network provider in Africa, has implemented Infinera's GX Series and FlexILS solutions to establish the express route with the lowest latency between Johannesburg and Lisbon. This route achieves a latency of 123 milliseconds and can support wavelengths up to 800G.

The deployment utilized Infinera's technology on Paratus Group's newly finished 1,890-km express fiber link. This route stretches from Johannesburg to Europe, passing through Botswana to Swakopmund. There, it connects with the Equiano subsea cable that extends from Namibia to Lisbon, and continues to London and other European destinations.

Paratus is the landing partner for the Equiano subsea cable, which offers diverse routing and geographically separated paths. Deploying Infinera’s solutions mitigates possible cable station faults and ensures the network remains intact and fully functional around the clock.

“As a steadfast partner on the ground in Africa, Paratus offers unrivalled wholesale capacity solutions for network operators, as exemplified by our advanced technology from Infinera, our infrastructure, and our commitment to offering redundancy,” said Martin Cox, Paratus Group Chief Commercial Officer.

“Our continual investment in creating Africa’s quality network is now extended with the live launch of this superhighway powered by Infinera’s industry-leading technology. This is an exciting time for network operators in South Africa because they can now enjoy the fastest and most robust connectivity from Africa to Europe,” said CEO of Paratus Group, Schalk Erasmus.

“Deploying Infinera’s GX networking solution enables Paratus to leverage the industry’s highest-capacity solution to offer its customers high-performance services while minimizing latency and maximizing reliability,” said Nick Walden, Senior Vice President, Worldwide Sales, Infinera. “We are pleased to work with Paratus to launch these new services to the region.”

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Carrier looks to direct-to-chip liquid cooling opportunities

Carrier Ventures  investment and technology partnership with Strategic Thermal Labs, an Austin-area heat transfer research and development company with industry renowned expertise in data center liquid cooling. 

Carrier plans to leverage STL's groundbreaking technology for a liquid cooling solution for data centers. As part of the financial investment, Carrier will receive a board seat in STL, along with exclusivity for a highly differentiated solution.

"Direct-to-chip liquid cooling is significantly more efficient than traditional cooling methods and critical to data centers of the future as AI and other technologies continue to fuel the global demand for high-density computing," said Ajay Agrawal, Senior Vice President, Global Services, Business Development & Chief Strategy Officer, Carrier. "Together with STL, we will help to significantly reduce data center energy consumption, while also providing customers with a highly scalable solution."

"Data center power consumption is surging at unprecedented rates with a significant portion of that power increase belonging to inefficient cooling technology," said Austin Shelnutt, President, STL. "The world needs highly innovative cooling solutions that can enable the next generation of computer infrastructure while using far less energy in the process. Coupling the legacy of Carrier's energy efficient infrastructure solutions with STL's unique depth and breadth of expertise in data center cooling is highly synergistic. We believe this partnership will be incredibly powerful in the fight to mitigate global energy consumption."

The investment in STL follows Carrier's acquisition of leading data center infrastructure management (DCIM) provider Nlyte in 2021. Carrier's Nlyte DCIM tools share detailed information between HVAC equipment, power systems and servers/workloads that run within data centers, providing unprecedented transparency and control of the infrastructure for improved uptime.

https://www.strategicthermal.com

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Vodafone Business appoints Marika Auramo as CEO

Marika Auramo has been appointed CEO of Vodafone Business, with effect from 1 July 2024.

She joins from SAP, the global enterprise company, where she was Chief Business Officer for the EMEA region. In this role, Marika was responsible for driving the go-to-market strategy for SAP’s product portfolio across 89 countries and for managing 14,000 employees. Marika joined SAP in 1999 and has held a diverse set of leadership roles since then, including COO EMEA North, Managing Director for the Nordic and Baltic region, Global COO of SAP Database and Data Management in the US, and Interim President of the EMEA region.

Margherita Della Valle, CEO of Vodafone Group, said: “I am delighted that Marika will be joining Vodafone to lead our Business division, a key growth driver. She brings extensive B2B experience from the IT industry, and I look forward to welcoming her as a member of our Executive Committee.”

Marika Auramo said: “I am looking forward to working with Margherita and the management team and to engaging with Vodafone’s customers and partners. Vodafone Business has strong growth opportunities ahead – as large corporates, SMEs and the public sector look to adopt more digital tools to enhance growth and productivity – and I will be working alongside my new colleagues to capture this.”

Marika will take over from Giorgio Migliarina, who has successfully led Vodafone Business as interim CEO. Vodafone Business reported service revenue growth of 5% at the Group’s third quarter trading update. Vodafone Business is growing across all segments due to strong public sector demand and increasing customer adoption of new digital services, such as Cloud, Security and IoT. 

https://www.vodafone.com/news/corporate-and-financial/marika-auramo-appointed-ceo-of-vodafone-business

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Korea's KISTI deploys 600G Research Network with Ciena

The Korea Institute of Science and Technology Information (KISTI) has successfully launched the first 600G nationwide research network in South Korea using Ciena’s 6500 powered by WaveLogic 5 Extreme (WL5e) programmable 800Gb/s coherent technology.

The network is believed to be the first research network to provide long distance 600G capabilities in Asia.

“With the recent increase in data-intensive science based on petascale or exascale data, many of the research tasks performed by our member institutions are driven by large-scale big data. Therefore, we have built KREONET, a high-speed national science and research network between member institutions. This collaborative research environment enables cutting-edge scientific and technological research and requires a high-speed network,” explained BuSeung Cho, director of KISTI’s KREONET Center. “The 600G research network can support the capacity and high bandwidth demands required by domestic and foreign member institutions.”

“South Korea is a leader in digital innovation, being the world’s first country to launch commercial 5G service for example, and much of this progress is a result of the priority South Korea places on research and development. To help these researchers further innovate and collaborate better with their peers, KISTI is leveraging Ciena’s WaveLogic coherent technology to empower its advanced network infrastructure,” said Henry Kim, President, Ciena North Asia.

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Windstream extends fiber to Georgia data centers

Windstream Wholesale has expanded its fiber network to two prominent data centers, Ascent and Stack, located in Alpharetta, Georgia. 

By seamlessly integrating its operations into the Ascent data center located at 4905 North Point Parkway and the Stack Data center located at 3200 Webb Bridge Road, both in Alpharetta, Windstream Wholesale has effectively tailored its services to meet the requirements of this valued customer. This network expansion not only highlights Windstream Wholesale’s flexibility but also positions the company to offer diversity advantages to future customers in the thriving Atlanta market.

To secure the initial customer deal, Windstream Wholesale proposed innovative route designs tailored to the specific requirements of the data center locations. This proactive approach, combined with close customer collaboration, ensured the successful implementation of the customer's connectivity solution.

“We invested the necessary time to work with the customer, actively listening to their needs and delivering the optimal routing solution,” said John Nishimoto, senior vice president of product, strategy and marketing at Windstream Wholesale. “Our initial deal facilitated the customer’s success and enabled us to bring these new data centers on-net. Leveraging different paths for the two routes enhances the value proposition and positions Windstream Wholesale as a one-stop-shop for diverse multi-vendor route solutions.”

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Video: Intel's Silicon Photonics Roadmap

Amit Nagra, VP and GM, Silicon Photonics Product Division from Intel, shares an update on progress in silicon photonics, wafer manufacturing, and 1.6T components following this year's OFC24:

- Intel's strategic shift in the pluggable market: Instead of providing the full transceiver module, Intel is now focusing on supplying the key chipsets that go into these modules. Interestingly, five out of the six key pieces of silicon that go into a module can be sourced internally from Intel.

- Investment in photonics wafer manufacturing technology: Intel continues to invest in this technology in their New Mexico Fab, developing a next-generation process that improves the size, capability, speeds, and features of the process. This investment also allows Intel to transform the economics to create very compelling and cost-competitive silicon photonic solutions.

- Announcement of 1.6 Tbps components: At OFC 2024, Intel announced 1.6 Tbps components, both on the transmit side and the receive side, supporting 200G/lane for both the DR and FR formats. Intel aims to have the same coverage of the five components, including the transmitter PIC, the receiver PIC, and the associated electronics IC (EIC) and controller IC.

https://youtu.be/fKTIM64TICo

Learn more at www.intel.com/siliconphotonics 

Want to be involved our video series? Contact info@nextgeninfra.io

Check out OFC Conference and Exposition 2024 videos here: https://ngi.fyi/ofc24yt

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Intel scales its neuromorphic system

Intel provided an update on its large-scale neuromorphic systems based on its human brain-inspired Loihi 2 processors.

A new large-scale system (code named Hala Point ), which is deployed at Sandia National Laboratories, achieves over 10 times more neuron capacity and up to 12 times higher performance compared with its first-generation large-scale research system (code named Pohoiki Springs).

Intel said its Hala Point represents a significant advancement in neuromorphic computing, a brain-inspired approach designed to enhance the performance and efficiency of artificial intelligence (AI) systems. As the first large-scale neuromorphic system, Hala Point has demonstrated state-of-the-art computational efficiencies in mainstream AI workloads, capable of performing up to 20 quadrillion operations per second (20 petaops). Its efficiency is particularly notable, achieving more than 15 trillion 8-bit operations per second per watt (TOPS/W) when running conventional deep neural networks. 

Sandia National Laboratories is set to utilize Hala Point forbrain-scale computing research. The focus will be on tackling complex scientific computing problems across various domains, including device physics, computer architecture, and informatics. This usage underscores the system's potential to address high-level scientific and engineering challenges, leveraging its unique capabilities to advance knowledge in these critical areas. 

Hala Point is integral to addressing sustainability challenges associated with the rapid scaling of deep learning models, which have grown to trillions of parameters. The recent developments in neuromorphic computing, including those showcased at the International Conference on Acoustics, Speech, and Signal Processing (ICASSP), emphasize the potential of this technology to revolutionize AI hardware.

Key Points:

• High Performance: Hala Point achieves up to 20 petaops with an efficiency exceeding 15 TOPS/W, surpassing GPU and CPU architectures.
• Research Applications: Sandia National Labs will utilize Hala Point for advanced scientific and computing research.
• Sustainability Focus: Neuromorphic computing addresses AI's sustainability challenges by integrating memory and computing for energy efficiency.
• Neuromorphic Advancements: Loihi 2 processors, the basis for Hala Point, utilize brain-inspired computing principles for significant energy and performance gains.
• 
  Industry Collaboration: Intel collaborates with over 200 entities in the INRC to further develop and commercialize neuromorphic computing technologies.

“The computing cost of today’s AI models is rising at unsustainable rates. The industry needs fundamentally new approaches capable of scaling. For that reason, we developed Hala Point, which combines deep learning efficiency with novel brain-inspired learning and optimization capabilities. We hope that research with Hala Point will advance the efficiency and adaptability of large-scale AI technology,” states Mike Davies, director of the Neuromorphic Computing Lab at Intel Labs.

“Working with Hala Point improves our Sandia team’s capability to solve computational and scientific modeling problems. Conducting research with a system of this size will allow us to keep pace with AI’s evolution in fields ranging from commercial to defense to basic science,” said Craig Vineyard, Hala Point team lead at Sandia National Laboratories.

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Australia's nbn tests Nokia's next-gen PON

Australia's NBN Co. completed the world’s first live network demonstration of multiple next-generation PON technologies using Nokia's fiber access platform.

The tests demonstrated 10G, 25G, 50G and 100G broadband speeds over nbn's existing fiber network.

Nokia’s Lightspan platform is designed to support a full range of PON technologies, from GPON to 100G PON.

The company says the tests show how operators can easily enhance 10G PON to symmetrical 25G PON and eventually evolve to 50G PON or 100G using the same passive and active fiber components.

Dion Ljubanovic, nbn Chief Network Officer, said: “This is an incredible result and demonstrates the fiber we deploy in our network is only limited by the capabilities of the equipment that will connect to it into the future. We are always looking for ways to push the capabilities of the nbn network and with the average Australian home forecast to download around 1 terabyte per month within the next decade, this successful demonstration showcases the world-class capabilities of nbn fiber to support the next generation of broadband services in the long term.”

Geert Heyninck, Vice President of Broadband Networks at Nokia, said: “There is a huge opportunity for operators to leverage their existing fiber broadband networks to efficiently add advanced services which goes way beyond consumer services. Think enterprise, mobile backhaul, Smart City, Industry 4.0. It’s important for service providers to have choices to match the right speed and cost points to meet the different use cases. As the industry’s first and only solution capable of supporting the full range of PON technologies from 10G to 25G, 50G, and even 100G, we can give operators the freedom and flexibility to meet their business needs while also helping to optimize network performance and reduce costs.”

https://www.nokia.com/about-us/news/releases/2024/04/17/nokia-and-nbn-show-worlds-first-10g-25g-50g-and-100g-speeds-over-live-fiber-broadband-network/

The PON Wars: Debunking the 25G vs. 50G Debate

Sunday, January 07, 2024    

by Maurizio Severi, Head of Fiber Business Line at Nokia Fixed NetworksWhen listening to the arguments in the telecom industry about 25G and 50G PON, you could get the impression that there’s some kind of PON war going on. Even though 25G PON is being deployed, fierce debate still surrounds it. However, the debate concerning 25G versus 50G PON is fruitless, and it detracts from what is important. It’s not about the technology; it is never about...

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SiTime debuts MEMS Integrated Clock Chip for Data Centers

SiTime unveiled its Chorus family of clock generators for AI datacenter applications. 

The company says its Chorus  family of clock-system-on-a-chip (ClkSoC) devices achieves a tenfold increase in performance while occupying only half the size of traditional standalone oscillators and clocks. This innovative design integrates clock, oscillator, and resonator technologies into a single chip, streamlining system clock architecture and reducing design time by up to six weeks. By incorporating timing products recently acquired from Aura Semiconductor, Chorus enhances its strategy to provide a comprehensive suite of uniquely differentiated solutions.

Key Features of SiTime’s Chorus SiT91211 and SiT91213 Clock Generator

• Higher Performance: Delivers up to 10X better resilience with integrated MEMS resonator.
• Design Simplicity: Integrated MEMS technology speeds the design process and eliminates common issues such as noise and impedance matching with integrated MEMS resonator.
• Smaller Footprint: up to half the size in a 4 mm x 4 mm QFN.
• Low RMS Phase Jitter: 70 femtoseconds typical (12 kHz to 20 MHz).
• Flexible Frequency: Programmable frequency from 1 MHz to 700 MHz.
• Flexible Output Types: Up to four differential (LVPECL, LVDS, LPHCSL) or eight LVCMOS outputs.
• Flexible Supply Voltage: Programmable, 1.8V, 2.5V, or 3.3V.
• Reduced Power and Simplified Circuitry: FlexSwing™ output reduces power consumption and eliminates termination resistors.
• Excellent Frequency Stability: ±20 ppm and ±50 ppm from -40°C to 105°C.
• EMI Reduction: Configurable spread-spectrum clock generation.
• Compliant with the Latest PCIe Standard: Generation 1 to 6.
• Enhanced System Robustness: Clock fault monitors (Lock Loss).

“AI is driving tremendous needs for higher data throughput in datacenters and lower power consumption, and SiTime is uniquely positioned to help address these issues,” said Piyush Sevalia, executive vice president of marketing at SiTime. “Before Chorus, hardware designers had to use discrete product types, such as clocks, oscillators and resonators, which resulted in performance compromises. Chorus delivers integrated clock generators to solve these problems and is yet another example of how we are transforming the timing market with our unique approach.”

https://www.sitime.com/company/news/press-release/sitime-continues-advance-precision-timing-integrated-clock-chip-ai

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Colt Data Centre Services expands in West London

Colt Data Centre Services (Colt DCS) has acquired land next to its existing site at Hayes, West London, with the goal to make the campus one of the largest in the UK.

West London is a key development location for data centres spurred on by the wider adoption of the public cloud by UK businesses and is becoming one of the most prominent submarkets in Europe. London's standing as one of the world's leading financial, media and business hubs remains a draw for companies looking to grow in the UK and Western Europe. 

Colt DCS is rapidly developing its initial site in Hayes, which will feature two buildings and provide 60MW of IT power. The first phase of this site is set to be completed by the third quarter of 2025. DCS said it has already seen significant interest from existing customers wanting space in this location. CThe company plans to expand with a second site, more than doubling the capacity of the London Hayes Data Centre campus. This expansion will make it one of the UK's largest data center sites and the biggest multi-building campus in Colt DCS's global network. The company has secured land and renewable energy sources necessary to support this growth, ensuring they can meet the rising demand for high-density AI workloads.

Additionally, the new site will contribute to Colt DCS’s goal of promoting a sustainable hyperscale data center future and assist in scaling customer operations. It will also benefit the local community socially and economically through involvement in educational programs, job creation, and business development initiatives.

DCS currently operates 18 state-of-the-art-carrier neutral data centers spanning 8 cities.

Richard Wellbrock, Chief Commercial Officer, at Colt DCS, said: "There is continued strong demand from customers for UK-based hyperscale data centres, driven by continued growth in demand for digital services. To cater for the fast-paced world of digital services, customers require scale in their data centre solutions. We are also excited to learn about the UK Government's plans to take the digital economy to the next level in the global marketplace, and our expansion in Hayes will increase the UK's capacity and capability in creating a vibrant environment for growth. We are committed to create a lasting sustainable impact on the local communities near our facilities and remain a trusted partner for our customers worldwide."

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Microsoft enters strategic partnership with UAE-based G42

Microsoft will invest $1.5 billion in G42, the  UAE-based artificial intelligence (AI) technology holding company, with the goal of bringing the latest Microsoft AI technologies and skilling initiatives to the UAE and other countries around the world. As part of this expanded partnership Brad Smith, Vice Chair and President of Microsoft, will join the G42 Board of Directors. 

Under the strategic partnership. G42 will run its AI applications and services on Microsoft Azure and partner to deliver advanced AI solutions to global public sector clients and large enterprises. G42 and Microsoft will also work together to bring advanced AI and digital infrastructure to countries in the Middle East, Central Asia, and Africa, providing these nations with equitable access to services to address important governmental and business concerns while ensuring the highest standards of security and privacy.  

The companies also agreed to elevate the security and compliance framework of their joint international infrastructure. Both companies will move forward with a commitment to comply with US and international trade, security, responsible AI, and business integrity laws and regulations. The work on these topics is governed by a detailed Intergovernmental Assurance Agreement (IGAA) between G42 and Microsoft that was developed in close consultation with both the UAE and US governments. 

H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42, said: “Microsoft’s investment in G42 marks a pivotal moment in our company's journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations. This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally.”  

"Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations,” said Brad Smith, Microsoft Vice Chair and President. "We will combine world-class technology with world-leading standards for safe, trusted, and responsible AI, in close coordination with the governments of both the UAE and the United States."  

Peng Xiao, Group Chief Executive Officer of G42, said: “Through Microsoft’s strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale. This partnership significantly enhances our international market presence, combining G42's unique AI capabilities with Microsoft’s robust global infrastructure. Together, we are not only expanding our operational horizons but also setting new industry standards for innovation.” 

https://www.g42.ai/resources/news/microsoft-invests-abu-dhabis-g42

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Equinix enters $600m JV to build xScale data center in San Jose

Equinix and PGIM Real Estate will establish a $600 million joint venture to develop and operate an xScale data center in San Jose, California.

PGIM is the $210 billion real estate investment and financing arm of Prudential Financial's global asset management business.

The two-story facility, which will be known as SV12x, will be built out in two phases and is expected to provide more than 28 megawatts (MW) of power capacity at full build out.  SV12x is located at Equinix's Great Oaks data center campus in San Jose, California alongside four existing Equinix International Business ExchangeTM (IBX) data centers. The first phase of the facility is scheduled to be completed in Q2 2024.

This new joint venture will bring the global xScale data center portfolio to more than $8 billion across more than 35 facilities, and an expected greater than 725 megawatts of power capacity when completed and fully constructed.

https://www.equinix.com/

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Ericsson posts a 14% drop in Q1 sales, sees stabilization in 2nd half of year

Citing a steep decline in Network sales to mobile operators, Ericsson reported overall Q1 sales of SEK 53.3 billion, a 14% drop from a year earlier. Gross income excluding restructuring charges decreased to SEK 22.8 (24.9) billion as lower sales were partly offset by an improvement in gross margin. Reported gross income was SEK 22.7 (24.2) billion. Gross margin excluding restructuring charges improved to 42.7% (39.8%) supported by a competitive product portfolio, cost actions, improved commercial discipline, as well as increased IPR licensing revenues. Reported gross margin was 42.5% (38.6%).  Net income was SEK 2.6 (1.6) billion. EPS diluted was SEK 0.77 (0.45).

Comments from Börje Ekholm, President and CEO of Ericsson:

"In Q1, we continued to execute on our strategy to strengthen our leadership in mobile networks, drive a focused expansion in enterprise, and pursue cultural transformation. We maintained our leading market position, but as expected our customers continued to exercise caution with their investments. Against this tough market backdrop, we delivered solid expansion in gross margins. This underscores the competitiveness of our solutions, our commercial discipline, and our actions on costs. We will continue to proactively optimize the business, including through strategic cost-saving measures, to ensure Ericsson is best positioned to increase shareholder value."

"We expect a further decline in the RAN market, at least through the end of this year, as customers remain cautious with their investments and the pace of investment in India continues to normalize. Dell’Oro estimates the global RAN equipment market will decline by -4% in 2024, which may prove optimistic."

"If current trends persist, we expect our sales to stabilize during the second half of the year, benefiting from recent contract wins and the normalization of customer inventory levels in North America. In Q2, we expect Networks gross margin excluding restructuring charges to be in the range of 42-44%. In the second half, our margins should benefit from improved business mix. We also remain highly focused on delivering stronger cash flow, based on our operating discipline. "

"Our enterprise strategy aims to leverage network capabilities to increase telecoms industry revenue growth above the level that traffic growth alone could deliver. We are creating new, differentiated, products and services, supporting our customers in this transformation. In turn, this will support industry investment levels in the longer term."

"While near-term dynamics are challenging, we remain fully committed to our long-term targets, and we continue to be focused on increasing shareholder value."

Highlights

Networks Sales: Ericsson experienced a 19% organic decrease in year-over-year sales in the Networks segment as customers remained cautious in their investments. Despite this downturn, Ericsson maintained a strong gross margin of 44.3%, highlighting the strength of its technology leadership, competitive product offerings, and strategic cost management efforts.

Cloud Software and Services: Ericsson continued to enhance its delivery performance and commercial discipline within this segment. The gross margin stood at 37.4%, and the EBITA margin improved for the fifth consecutive quarter, reaching a rolling four-quarter EBITA margin of 3.0%.

Enterprise and Global Communications Platform: While Ericsson saw overall organic growth in its Enterprise sales, the Global Communications Platform experienced a decline due to the loss of a low-margin customer contract in Q4 and a strategic scale-back in some countries. Ericsson remains focused on utilizing its existing business to further develop its Global Network Platform for network APIs.

Intellectual Property Revenues (IPR): Ericsson's IPR revenues increased, bolstered by a new 5G patent license agreement with a handset manufacturer. Ericsson is optimistic about future growth in IPR revenues, driven by additional 5G agreements and expansion into new licensing areas, although the timing of contracts may vary.

https://www.ericsson.com/48f6a7/assets/local/investors/documents/financial-reports-and-filings/interim-reports-archive/2024/3month24-ceo-slides.pdf

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Rivos raises $250 million for its RISC-V silicon

Rivos, a start-up based in Santa Clara, California, raised more than $250M in its oversubscribed Series A-3 funding round for its RISC-V accelerated platform targeting data analytics and Generative AI.

Matrix Capital Management, the largest investor in this round, was joined by new investors including Intel Capital, MediaTek, Cambium Capital, CIDC, Capital TEN, and Hotung Venture Group, as well as existing investors Walden Catalyst, Dell Technologies Capital, Koch Disruptive Technologies, and VentureTech Alliance.

Rivos is working on power optimized chips combining high performance server-class RISC-V CPUs and a Data Parallel Accelerator (a GPGPU optimized for large language models (LLMs) and data analytics).

The funding will enable the company to tape out its first silicon product.

"Expanding the application of data analytics and large language models to encompass not just traditional data types such as text, images, and video, but also genomic and medical data, unlocks unprecedented opportunities for innovation in research and treatment," remarked David Goel, Managing General Partner of Matrix Capital Management. "The Rivos team has adeptly integrated the groundbreaking new RISC-V architecture with an inventive accelerator, effectively bringing this vision to life. Their prototype chip serves as a compelling demonstration of their unique capability to leverage the advanced TSMC 3nm process node - a feat few startups have managed to achieve. We eagerly anticipate furthering our support for the company's move into new realms of achievement, marking each milestone with shared enthusiasm and commitment to excellence."

https://www.rivosinc.com/

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Indonesia's HSPnet deploys Ciena on subsea and terrestrial routes

HSPnet, which is an Indonesian internet services and integrated network access provider, has deployed Ciena's WaveLogic Ai-powered 6500 platform on its B3JS (Jakarta-Bangka-Bintan-Batam-Singapore) and BDMCS (Batam-Dumai-Medan) cable systems.

The transmission routes, totaling around 2,000km across both underwater and land cables, offer capacity of up to 6 Tbps. 

The activation of the B3JS and BDMCS cables is a collaboration between Ciena, Ciena partner Terrabit Networks, and HSPnet. Leveraging Ciena’s 6500, HSPnet is able to offer 100G to 400G wavelength services to its Tier 1 and Tier 2 Indonesian telco customers. Ciena's 6500 also provides power and space efficiency benefits, enabling HSPnet to reduce energy consumption.

“With the go-live of our transmission routes on B3JS and BDMCS, we’re on an upward trajectory to become the main backbone network operator in Indonesia with very strong internet network services. Running on Ciena’s proven coherent optical technology, we’re able to provide a reliable and fast connectivity alternative to all HSPnet customers as well as future-proof our network to meet additional capacity needs over time,” said Daniel Simanjuntak, Technical and Operations Director, PT Parsaoran Global Datatrans.

“By increasing its network capacity on these critical routes connecting key economic hubs in ASEAN, HSPnet is well-positioned to provide seamless data exchange and enable business competitiveness on a global scale. Cloud and edge computing applications, secured Artificial Intelligence workloads, and low-latency data center interconnect (DCI) applications can now be supported by Ciena's underlying WaveLogic technology,” said Jamie Jefferies, Vice President and General Manager, Ciena International.

https://www.ciena.com

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Arelion launches Global 5G roaming with BroadForward

Arelion announced a partnership with BroadForward to introduce its latest 5G Standalone Roaming solution.

Leveraging its established expertise in global 3G and 4G roaming services, Arelion aims to boost its customers' worldwide roaming capabilities by harnessing the advanced features of 5G technology. As the operator of the top-ranked IP backbone network globally, Arelion is well-positioned to facilitate the 5G solutions essential for providing high-quality mobile data services and supporting IoT applications.

"Our close partnership with Arelion provides BroadForward with an opportunity to enable worldwide 5G services across Arelion's global network footprint," said Taco Schoute, CEO of BroadForward. "Arelion's forward-thinking vision aligns with our commitment to innovative signaling technologies that help mobile network operators transitioning to 5G, enabling collaborative solutions that leverage the power of existing network infrastructure."

"Partnering with BroadForward expands Arelion's offerings to include 5G roaming capabilities, helping our customers provide new and innovative mobile data solutions on a global scale," said Mark Currier, Global Product Manager at Arelion. "BroadForward's multi-technology signaling platform and flexible licensing model enables us to leverage our global network and address our customers' individual needs, establishing Arelion as the connectivity partner of choice for mobile network operators and IoT providers."

https://www.arelion.com

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MaxLinear teams with Dell on enterprise and cloud storage

MaxLinear has partnered with Dell to introduce the Panther III Storage Accelerator into Dell's high-end PowerMax storage solution, aiming to set new benchmarks in performance, data reduction, security, and data protection. This integration promises to transform enterprise storage capabilities, particularly for AI and machine learning which demand substantial data handling and storage scalability. 

Dell’s PowerMax storage series, comprising models 2500 and 8500, promise exceptional performance and scalability, enhanced by features like end-to-end NVMe and dynamic fabric architecture to support critical applications and workflows. The PowerMax series also focuses on security and efficiency, providing  data protection features and adaptability to both on-premise and hybrid cloud deployments, thereby setting a new standard in enterprise storage.

MaxLinear's Panther III Storage Accelerator stands out with its performance and feature set tailored for modern data centers. It offers high throughput and scalable capacity, alongside advanced functionalities like single-pass data reduction and real-time validation, which ensure optimal storage efficiency and data security. The accelerator's powerful data reduction capabilities and encryption standards provide reliable protection against unauthorized access, making it an integral component in securing and managing large volumes of sensitive data.

Key features of the MaxLinear Panther III and Dell PowerMax platform include:

• Enhanced Data Reduction: Guarantees up to 5:1 and 3:1 data reduction ratios for Open and Mainframe systems, respectively, optimizing storage efficiency and minimizing costs.
• Ultra-Fast Response Times: Achieves response times under 60 microseconds, facilitating swift access to crucial data and applications.
• Robust Security and Energy Efficiency: Offers top-tier security and energy-efficient design, ensuring safe and sustainable operation in mission-critical storage environments.

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Samsung to receive up to $6.4B of CHIPs Act funding for Texas fabs

Samsung Electronics will receive up to $6.4 billion in direct funding under the CHIPS and Science Act.

The proposed investment is expected to boost Samsung’s existing presence in Texas. This incluses two new leading-edge logic fabs, an R&D fab, and an advanced packaging facility in Taylor, as well as an expansion to their existing Austin facility. Samsung is expected to invest more than $40 billion dollars in the region in the coming years, and the proposed investment would support the creation of over 20,000 jobs.

Highlights:

• Taylor, Texas: Construct a comprehensive advanced manufacturing ecosystem, ranging from leading-edge logic to advanced packaging to R&D, transforming the small municipality of Taylor into an expansive hub of leading-edge semiconductor manufacturing. This ecosystem would include two leading-edge logic foundry fabs focused on mass production of 4nm and 2nm process technologies, an R&D fab dedicated to development and research on technology generations ahead of nodes currently in production, and an advanced packaging facility producing 3D High Bandwidth Memory and 2.5D packaging, both of which have critical artificial intelligence applications. The semiconductors that are designed and manufactured in this ecosystem would serve a wide variety of end markets – from communications, automotive, and defense industries to high-performance computing and artificial intelligence.
• Austin, Texas: Expand a facility that has been an economic engine for Central Texas for nearly 30 years. This proposed investment would expand the existing facilities to support the production of leading fully depleted silicon-on-insulator (FD-SOI) process technologies for critical U.S. industries, including aerospace, defense, and automotive. This proposed investment also includes commitments to collaborate with the U.S. Department of Defense.

Samsung has been manufacturing chips in the United States since 1996. The company said it is committed to strengthening U.S. economic and national security and increasing the resilience of both the U.S. and global semiconductor supply chains. 

Samsung also notes that it has ongoing partnerships with Austin Community College, The University of Texas at Austin, Texas A&M University, Texas State Technical College, Temple College, Manor High School and Taylor High School — to train its future semiconductor workforce. The proposed CHIPS investment also includes up to $40 million in dedicated workforce funding. 

“Semiconductor research and development is critical to building a robust and thriving semiconductor manufacturing industry in the United States,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio. “Samsung’s plans to build a cutting-edge R&D and advanced packaging facilities in Texas are shining examples of the types of R&D projects that will help build, and heavily contribute to, America’s chip manufacturing industry.”

“We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination," said Kye Hyun Kyung, President and CEO of the Device Solutions (DS) Division at Samsung Electronics. "To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help advance the security of the U.S. semiconductor supply chain.”

The U.S. Department of Commerce has received more than 630 statements of interest, more than 180 pre-applications and full applications for NOFO 1, and more than 160 small supplier concept plans for NOFO 2. The Department is continuing to conduct rigorous evaluation of applications to determine which projects will advance U.S. national and economic security, attract more private capital, and deliver other economic benefits to the country. The announcement with Samsung is the sixth PMT announcement the Department of Commerce has made under the CHIPS and Science Act, with additional PMT announcements expected to follow throughout 2024.

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