When Amazon Web Services paid US $650 million in March for another data center to add to its armada, the tech giant thought it was buying a steady supply of nuclear energy to power it, too. The Susquehanna Steam Electric Station outside of Berick, Pennsylvania, which generates 2.5 gigawatts of nuclear power, sits adjacent to the humming data center and had been directly powering it since the center opened in 2023.

After striking the deal, Amazon wanted to change the terms of its original agreement to buy 180 megawatts of additional power directly from the nuclear plant. Susquehanna agreed to sell it. But third parties weren’t happy about that, and their deal has become bogged down in a regulatory battle that will likely set a precedent for data centers, cryptocurrency mining operations, and other computing facilities with voracious appetites for clean electricity.

Putting a data center right next to a power plant so that it can draw electricity from it directly, rather than from the grid, is becoming more common as data centers seek out cheap, steady, carbon-free power. Proposals for co-locating data centers next to nuclear power have popped up in New Jersey, Texas, Ohio, and elsewhere. Sweden is considering using small modular reactors to power future data centers.

However, co-location raises questions about equity and energy security, because directly-connected data centers can avoid paying fees that would otherwise help maintain grids. They also hog hundreds of megawatts that could be going elsewhere.

“They’re effectively going behind the meter and taking that capacity off of the grid that would otherwise serve all customers,” says Tony Clark, a senior advisor at the law firm Wilkinson Barker Knauer and a former commissioner at the Federal Energy Regulatory Commission (FERC), who has testified to a U.S. House subcommittee on the subject.

Amazon’s nuclear power deal meets hurdles

The dust-up over the Amazon-Susquehanna agreement started in June, after Amazon subsidiary Amazon Web Services filed a notice to change its interconnection service agreement (ISA) in order to buy more nuclear power from Susquehanna’s parent company, Talen Energy. Amazon wanted to increase the amount of behind-the-meter power it buys from the plant from 300 MW to 480 MW. Shortly after it requested the change, utility giants Exelon and American Electric Power (AEP), filed a protest against the agreement and asked FERC to hold a hearing on the matter.

Their complaint: the deal between Amazon and the nuclear plant would hurt a third party, namely all the customers who buy power from AEP or Exelon utilities. The protest document argues that the arrangement would shift up to $140 million in extra costs onto the people of Pennsylvania, New Jersey, and other states served by PJM, a regional transmission organization that oversees the grid in those areas. “Multiplied by the many similar projects on the drawing board, it is apparent that this unsupported filing has huge financial consequences that should not be imposed on ratepayers without sufficient process to determine and evaluate what is really going on,” their complaint says.

Susquehanna dismissed the argument, effectively saying that its deal with Amazon is none of AEP and Exelon’s business. “It is an unlawful attempt to hijack this limited [ISA] amendment proceeding that they have no stake in and turn it into an ad hoc national referendum on the future of data center load,” Susquehanna’s statement said. (AEP, Exelon, Talen/Susquehanna, and Amazon all declined to comment for this story.)

More disputes like this will likely follow as more data centers co-locate with clean energy. Kevin Schneider, a power system expert at Pacific Northwest National Laboratory and research professor at Washington State University, says it’s only natural that data center operators want the constant, consistent nature of nuclear power. “If you look at the base load nature of nuclear, you basically run it up to a power level and leave it there. It can be well aligned with a server farm.”

Data center operators are also exploring energy options from solar and wind, but these energy sources would have a difficult time matching the constancy of nuclear, even with grid storage to help even out their supply. So giant tech firms look to nuclear to keep their servers running without burning fossil fuels, and use that to trumpet their carbon-free achievements, as Amazon did when it bought the data center in Pennsylvania. “Whether you’re talking about Google or Apple or Microsoft or any of those companies, they tend to have corporate sustainability goals. Being served by a nuclear unit looks great on their corporate carbon balance sheet,” Clark says.

Costs of data centers seeking nuclear energy

Yet such arrangements could have major consequences for other energy customers, Clark argues. For one, directing all the energy from a nuclear plant to a data center is, fundamentally, no different than retiring that plant and taking it offline. “It’s just a huge chunk of capacity leaving the system,” he says, resulting in higher prices and less energy supply for everyone else.

Another issue is the “behind-the-meter” aspect of these kinds of deals. A data center could just connect to the grid and draw from the same supply as everyone else, Clark says. But by connecting directly to the power plant, the center’s owner avoids paying the administrative fees that are used to maintain the grid and grow its infrastructure. Those costs could then get passed on to businesses and residents who have to buy power from the grid. “There’s just a whole list of charges that get assessed through the network service that if you don’t connect through the network, you don’t have to pay,” Clark says. “And those charges are the part of the bill that will go up” for everyone else.

Even the “carbon-free” public relations talking points that come with co-location may be suspect in some cases. In Washington State, where Schneider works, new data centers are being planted next to the region’s abundant hydropower stations, and they’re using so much of that energy that parts of the state are considering adding more fossil fuel capacity to make ends meet. This results in a “zero-emissions shell game,” Clark wrote in a white paper on the subject.

These early cases are likely only the beginning. A report posted in May from the Electric Power Research Institute predicts energy demand from data centers will double by 2030, a leap driven by the fact that AI queries need ten times more energy than traditional internet searches. The International Energy Agency puts the timeline for doubling sooner–in 2026. Data centers, AI, and the cryptocurrency sector consumed an estimated 460 terawatt-hours (TWh) in 2022, and could reach more than 1000 TWh in 2026, the agency predicts.

Data centers face energy supply challenges

New data centers can be built in a matter of months, but it takes years to build utility-scale power projects, says Poorvi Patel, manager of strategic insights at Electric Power Research Institute and contributor to the report. The potential for unsustainable growth in electricity needs has put grid operators on alert, and in some cases has sent them sounding the alarm. Eirgrid, a state-owned transmission operator in Ireland, last week warned of a “mass exodus” of data centers in Ireland if it can’t connect new sources of energy.

There’s only so much existing nuclear power to go around, and enormous logistical and regulatory roadblocks to building more. So data center operators and tech giants are looking for creative solutions. Some are considering small modular reactors (SMRs)–which are advanced nuclear reactors with much smaller operating capacities than conventional reactors. Nano Nuclear Energy, which is developing microreactors–a particularly small type of SMR–last month announced an agreement with Blockfusion to explore the possibility of powering a currently defunct cryptomining facility in Niagara Falls, New York.

“To me, it does seem like a space where, if big tech has a voracious electric power needs and they really want that 24/7, carbon-free power, nuclear does seem to be the answer,” Clark says. “They also have the balance sheets to be able to do some of the risk mitigation that might make it attractive to get an SMR up and running.”

By Adam Kovac, Gregory Haley, and Liz Allan.

Cadence plans to acquire BETA CAE Systems for $1.24 billion, the latest volley in a race to sell multi-physics simulation and analysis across a broad set of customers with deep pockets. Cadence said the deal opens the door to structural analysis for the automotive, aerospace, industrial, and health care sectors. Under the terms of the agreement, 60% of the purchase would be paid in cash, and the remainder in stock.

South Korea’s National Intelligence Service reported that North Korea was targeting cyberattacks at domestic semiconductor equipment companies, using a “living off the land” approach, in which the attacker uses minimal malware to attack common applications installed on the server. That makes it more difficult to spot an attack. According to the government, “In December last year, Company A, and in February this year, Company B, had their configuration management server and security policy server hacked, respectively, and product design drawings and facility site photos were stolen.”

As the memory market goes, so goes the broader chip industry. Last quarter, and heading into early 2024, both markets began showing signs of sustainable growth. DRAM revenue jumped 29.6% in Q4 for a total of $17.46 billion. TrendForce attributed some of that to  new efforts to stockpile chips and strategic production control. NAND flash revenue was up 24.5% in Q4, with solid growth expected to continue into the first part of this year, according to TrendForce. Revenue for the sector topped $11.4 billion in Q4, and it’s expected to grow another 20% this quarter. SSD prices rebounded in Q4, as well, up 15% to $23.1 billion. Across the chip industry, sales grew 15.2% in January compared to the same period in 2023, according to the Semiconductor Industry Association (SIA). This is the largest increase since May 2022, and that trend is expected to continue throughout 2024 with double-digit growth compared to 2023.

Marvell said it is working with TSMC to develop a technology platform for the rapid deployment of analog, mixed-signal, and foundational IP. The company plans to sell both custom and commercial chiplets at 2nm.

The Dutch government is concerned that ASML, the only maker of EUV/high-NA EUV lithography equipment in the world, is considering leaving the Netherlands, according to De Telegraaf.

Quick links to more news:

Design and Power
Manufacturing and Test
Automotive and Batteries
Security
Pervasive Computing and AI
Events

Design and Power

AMD appears to have hit a roadblock with the U.S. Department of Commerce (DoC) over a new AI chip it designed for the Chinese market, as reported by Bloomberg. U.S. officials told the company the new chip is too powerful to be sold without a license.

JEDEC released its new memory standard as a free download on its website. The JESD239 Graphics Double Data Rate SGRAM can reach speeds of 192 GB/s and improve signal-to-noise ratio.

Accellera rolled out its IEEE Std. 1800‑2023 Standard for SystemVerilog—Unified Hardware Design, Specification, and Verification Language, which is now available for free download. The decision to offer it at no cost is due to Accellera’s participation in the IEEE GET Program, which was founded in 2010 with the intention of providing  open access to some standards. Accellera also announced it had approved for release the Verilog-AMS 2023 standard, which offers enhancements to analog constructs, dynamic tolerance for event control statements, and other upgrades.

Chiplets are a hot topic these days. Six industry experts discuss chiplet standards, interoperability, and the need for highly customized AI chiplets.

Optimizing EDA hardware for the cloud can shorten the time required for large and complex simulations, but not all workloads will benefit equally, and much more can be done to improve those that can.

Flex Logix is developing InferX DSP for use with existing EFLX eFPGA from 40nm to 7nm. InferX achieves about 30 times the DSP performance/mm² than eFPGA.

The number of challenges is growing in power semiconductors, just as it is in traditional chips. This tech talk looks at integrating power semiconductors with other devices, different packaging impacts, and how these devices will degrade over time.

Vultr announced it will use NVIDIA’s HGX H100 GPU clusters to expand its Seattle-based cloud data center. The company said the expansion, which will be powered by hydroelectricity, will make the facility one of the cleanest, most power efficient data centers in the country.

Amazon Web Services will expand its presence in Saudi Arabia, announcing a new $5.3 billion infrastructure region in the country that will launch in 2026. The new region will offer developers, entrepreneurs and companies access to healthcare, education and other services.

Google is teaming up with the Geneva Science and Diplomacy Anticipator (GESDA) to launch the XPRIZE Quantum Applications, with a $5 million in prizes for winners who can demonstrate ways to use quantum computing to solve real-world problems. Teams must submit a proposal that includes analysis of how long their algorithm would need to run before reaching a solution to a problem, such as improving drug development or designing new battery materials.

South Korea’s nepes corporation has turned to Siemens EDA for solutions in the development of advanced 3D-IC packages. The deal will see nepes incorporating several Siemens technologies, including the Calibre nmPlatform, Hyperlynx software and Xpedition Substrate Integrator software.

Siemens also formalized a partnership with Nuclei System Technology in which the pair of companies will work together on solution support for Nuclei’s RISC-V processor cores. The collaboration will allow clients to monitor CPU program execution in real-time via Nuclei’s RISC-V CPU Ips.

Keysight and ETS-Lindgren announced a breakthrough test solution for cellular devices using non-terrestrial networks. The solution is capable of measuring and validating the performance of both the transmitter and receiver of devices capable of supporting the network.

Nearly fifty companies raised $800 million for power electronics, data center interconnects, and more last month.

Manufacturing and Test

SEMI Europe issued a position statement to the European Union, warning against additional export controls or rules on foreign investment. SEMI argued that free trade partnerships are a better method for ensuring security than bans or restrictions.

Revenues for the top five wafer fab equipment manufacturers declined 1% YoY in 2023 to $93.5 billion, according to Counterpoint Research. The drop was attributed to weak spending on memory, inventory adjustments, and low demand in consumer electronics. The tide is changing, though.

Bruker closed two acquisitions. One involved Chemspeed Technologies, a Switzerland-based provider of automated laboratory R&D and QC workflow solutions. The second involved Phasefocus, an image processing company based in the UK.

A Swedish company, SCALINQ, released a commercially available large-scale packaging solution capable of controlling quantum devices with hundreds of qubits.

Solid Sands, a provider of testing and qualification technology for compilers and libraries, will partner with California-based Emprog to establish a representative presence in the U.S.

Automotive

Tesla halted production at its Brandenberg, Germany, gigafactory after an environmental activist group attacked an electricity pylon, reports the Guardian.

Stellantis will invest €5.6 billion (~$6.1B) in South America to support more than 40 new products, decarbonization technologies, and business opportunities.

The amount of data being collected, processed, and stored in vehicles is exploding, and so is the value of that data. That raises questions that are still not fully answered about how that data will be used, by whom, and how it will be secured.

While industry experts expect many benefits of V2X technology, technological and social hurdles to cross. But there is progress.

Infineon released its next-gen silicon carbide (SiC) MOSFET trench technology with 650V and 1,200V options improving stored energies and charges by up to 20%, ideal for power semiconductor applications such as photovoltaics, energy storage, DC EV charging, motor drives, and industrial power supplies.

Hyundai selected Ansys to supply structural simulation solutions for vehicle body system analysis, providing end-to-end, predictively accurate capabilities for virtual performance validation.

ION Mobility used the Siemens Xcelerator portfolio for styling, mechanical engineering, and electric battery pack development for its ION M1-S electric motorbike.

Ethernovia sampled a family of automotive PHY transceivers that scale from 10 Gbps to 1 Gbps over 15 meters of automotive cabling.

The California Public Utilities Commission (CPUC) approved Waymo’s plan to expand its driverless robotaxi services to Los Angeles and other cities near San Francisco, reports Reuters.

By 2027, next-gen battery EVs (BEVs) will on average be cheaper to produce than comparable gas-powered cars, reports Gartner. But the firm noted that average cost of EV accident repair will rise by 30%, and 15% of EV companies founded in the last decade will be acquired or bankrupt.

University of California San Diego (UCSD) researchers developed a cathode material for solid-state lithium-sulfur batteries that is electrically conductive and structurally healable.

ION Storage Systems announced its anodeless and compressionless solid-state batteries (SSBs) achieved 125 cycles with under 5% capacity degradation in performance. ION has been working with the U.S. Department of Defense (DoD) to test its SSB before expanding into markets such as EVs, energy storage, consumer electronics, and aerospace.

Security

Advanced process nodes and higher silicon densities are heightening DRAM’s susceptibility to Rowhammer attacks, as reduced cell spacing significantly decreases the hammer count needed for bit flips. A multi-layered, system-level approach is crucial to DRAM protection.

Researchers at Bar-Ilan University and Rafael Defense Systems proposed an analytical electromagnetic model for IC shielding against hardware attacks.

Keysight acquired the IP of Firmalyzer, whose firmware security analysis technology will be integrated into the Keysight IoT Security Assessment and Automotive Security solutions, providing analysis into what is happening inside the IoT device itself.

Flex Logix joined the Intel Foundry U.S. Military Aerospace Government (USMAG) Alliance, ensuring U.S. defense industrial base and government customers have access to the latest technology, enabling successful designs for mission critical programs.

The EU Council presidency and European Parliament reached a provisional agreement on a Cyber Solidarity Act and an amendment to the Cybersecurity Act (CSA) concerning managed security services.

The EU Agency for Cybersecurity (ENISA) and partners updated the compendium on elections cybersecurity in response to issues such as AI deep fakes, hacktivists-for-hire, the sophistication of threat actors, and the current geopolitical context.

The Cybersecurity and Infrastructure Security Agency (CISA) launched efforts to help secure the open source software ecosystem; updated its Public Safety Communications and Cyber Resiliency Toolkit; and issued other alerts including security advisories for VMware, Apple, and Cisco.

Pervasive Computing and AI

Johns Hopkins University engineers used natural language prompts and ChatGPT4 to produce detailed instructions to build a spiking neural network (SNN) chip. The neuromorphic accelerators could power real-time machine intelligence for next-gen embodied systems like autonomous vehicles and robots.

The global AI hardware market size was estimated at $53.71 billion in 2023, and is expected to reach about $473.53 billion by 2033, at a compound annual growth rate of 24.5%, reports Precedence Research.

National Institute of Standards and Technology (NIST) researchers and partners built compact chips capable of converting light into microwaves, which could improve navigation, communication, and radar systems.

Fig. 1: NIST researchers test a chip for converting light into microwave signals. Pictured is the chip, which is the fluorescent panel that looks like two tiny vinyl records. The gold box to the left of the chip is the semiconductor laser that emits light to the chip. Credit: K. Palubicki/NIST

The Indian government is investing 103 billion rupees ($1.25B) in AI projects, including computing infrastructure and large language models (LLMs).

Infineon is collaborating with Qt Group, bringing Qt’s graphics framework to Infineon’s graphics-enabled TRAVEO T2G cluster MCUs to optimize graphical user interface (GUI) development.

Keysight leveraged fourth-generation AMD EPYC CPUs to develop a new benchmarking methodology to test mobile and 5G private network performance. The method uses realistic traffic generation to uncover a CPU’s true power and scalability while observing bandwidth requirements.

The AI industry is pushing a nuclear power revival, reports NBC, and Amazon bought a nuclear-powered data center in Pennsylvania from Talen Energy for $650 million, according to WNEP.

Bank of America was awarded 644 patents in 2023 for technology including information security, AI, machine learning (ML), online and mobile banking, payments, data analytics, and augmented and virtual reality (AR/VR).

Mistral AI’s large language model, Mistral Large, became available in the Snowflake Data Cloud for customers to securely harness generative AI with their enterprise data.

China’s smartphone unit sales declined 7% year over year in the first six weeks of 2024, with Apple declining 24%, reports Counterpoint.

Shipments of LCD TV panels are expected to reach 55.8 million units in Q1 2024, a 5.3% quarter over quarter increase, reports TrendForce. And an estimated 5.8 billion LED lamps and luminaires are expected to reach the end of their lifespan in 2024, triggering a wave of secondary replacements and boosting total LED lighting demand to 13.4 billion units.

Korea Institute of Science and Technology (KIST) researchers mined high-purity gold from electrical and electronic waste.

The San Diego Supercomputer Center (SDSC) and the University of Utah launched a National Data Platform pilot project, aimed at making access to and use of scientific data open and equitable.

Events

Find upcoming chip industry events here, including:

Upcoming webinars are here.

Further Reading and Newsletters

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Systems and Design
Low Power-High Performance
Test, Measurement and Analytics
Manufacturing, Packaging and Materials
Automotive, Security and Pervasive Computing

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