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May 27, 2026 · Morning edition
US chipmaker Qualcomm has reportedly finalized a significant agreement to supply millions of AI chips to ByteDance, the Chinese technology giant behind TikTok. This development marks a notable expansion for Qualcomm into the AI infrastructure market beyond smartphone processors and comes at a time when US restrictions on advanced chip sales to Chinese companies have been a key geopolitical point. The deal will assist ByteDance in transitioning its in-house chip designs into production-ready semiconductors for its AI agent software. Qualcomm's stock saw an immediate gain of up to 8.3% following the news.
Qualcomm has reportedly finalized a major agreement to supply millions of AI chips to ByteDance, marking a significant push by the U.S. chipmaker beyond its traditional strength in smartphone processors and deeper into AI infrastructure.
The deal would help ByteDance, the Chinese technology company behind TikTok, move its in-house chip designs toward production-ready semiconductors for its AI agent software. It also lands amid continued U.S.-China technology tensions, with restrictions on advanced chip sales to Chinese companies remaining a central geopolitical issue. Qualcomm’s shares rose as much as 8.3% after the news.
The reported agreement underscores a broader shift across the technology sector: AI demand is not only changing product road maps, but also reshaping capital markets, corporate workforces, semiconductor strategy and government industrial policy.
Taiwan’s stock market has become the world’s fifth largest, surpassing India with a total market capitalization of $4.95 trillion, as investors continue to chase exposure to the AI chip cycle. The rally has been powered largely by Taiwan Semiconductor Manufacturing Company, whose shares are up 49% this year. TSMC now accounts for about 42% of Taiwan’s benchmark TAIEX index, leaving the market closely tied to global demand for AI semiconductors. Global investors have reportedly redirected about $24 billion from Indian equities toward AI-linked markets this year.
At the corporate level, Cloudflare is moving to restructure around what it calls the “agentic AI era.” The internet infrastructure and cybersecurity company is laying off more than 1,100 employees globally, about 20% of its workforce. The company said the move reflects rapid adoption of AI tools and a plan to reimagine every team and function. Cloudflare’s chief executive said internal AI use at the company has increased sixfold over the past three months.
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China’s Huawei is also pressing for new ways to advance computing performance despite global restrictions. At the 2026 IEEE International Symposium on Circuits and Systems, Huawei introduced its “Tau Scaling Law,” a semiconductor principle focused on reducing signal propagation time rather than relying on traditional geometric scaling. The company also demonstrated its “LogicFolding” architecture, which vertically stacks chip circuitry and delivered a computing-density increase described as roughly equivalent to three years of conventional scaling without changing the manufacturing process.
The race for next-generation computing is extending beyond AI chips into quantum systems. The U.S. Department of Commerce announced Letters of Intent to provide $2 billion in federal incentives under the CHIPS and Science Act to nine U.S. quantum computing companies, including two quantum foundries, GlobalFoundries and IBM, and seven quantum computing firms. In Australia, PsiQuantum launched its Asia-Pacific Test & Validation Lab at Griffith University, a facility designed to cool, test and measure photonic quantum chips using powerful cryogenic systems as part of efforts to accelerate utility-scale, fault-tolerant quantum computing.
Meanwhile, technology companies are pushing back against proposed data-access rules in Canada. Apple and Google are among the major firms opposing Bill C-22, the Lawful Access Act, which would expand police access to citizens’ data. Critics have raised concerns over provisions involving metadata retention and government mandates for data interception and retrieval capabilities. Signal has threatened to withdraw from Canada if required to compromise user privacy, while Shopify CEO Tobi Lütke warned the bill could significantly damage the country’s technology industry.
Together, the developments point to a technology sector increasingly defined by AI’s infrastructure demands, government intervention in strategic technologies and escalating disputes over privacy, sovereignty and control of advanced computing.
Qualcomm has reportedly finalized a significant agreement to supply millions of artificial intelligence chips to ByteDance, the Chinese technology company behind TikTok, marking a notable expansion of the U.S. chipmaker…
Read full articleTaiwan has surpassed India to become the world’s fifth-largest stock market, reaching a total market capitalization of US$4.95 trillion as the global AI investment boom continues to lift chip-related shares.
Read full articleCloudflare is laying off more than 1,100 employees globally, about 20% of its workforce, as the internet infrastructure and cybersecurity company restructures operations around the rapid adoption of artificial intellige…
Read full articleHuawei has introduced a new semiconductor design principle it calls the “Tau (τ) Scaling Law,” presenting it at the 2026 IEEE International Symposium on Circuits and Systems as an alternative way to advance chip perform…
Read full articleThe global race to develop quantum computing technology intensified as the U.S. Department of Commerce announced Letters of Intent to provide $2 billion in federal incentives under the CHIPS and Science Act to nine U.S.…
Read full articleMajor technology companies including Apple and Google are opposing Canada’s proposed Bill C-22, known as the Lawful Access Act, which would expand police access to citizens’ data.
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