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1. The big hardware push The government announced a £1.1bn investment into AI hardware – the cutting-edge semiconductor chips on which AI models such as ChatCPT and Claude run. The ambition of this spend is significant: “Build globally competitive AI hardware companies in the UK.” The reality will be more complex. Right now, almost all advanced AI chips are made by one producer: Taiwan Semiconductor Manufacturing Corporation (TSMC). US companies such as Nvidia or Google do not produce AI chips themselves – they send hi-tech chip designs to TSMC, which carves these into silicon wafers using, among other things, deep…
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