Announcement of $200 Million Edge AI Package
Aim to Reduce Reliance on Low-Cost Chinese Smartphones
Focus on Whether Samsung Electronics Will Benefit
The U.S. Department of State is expected to invest up to 200 million dollars (about 289.8 billion won) to supply safe and affordable smartphones across the Indo-Pacific region. As this initiative aims to reduce the region's reliance on low-cost Chinese smartphones, attention is focusing on whether Samsung Electronics might also become a candidate for review.
On the 19th (local time), the U.S. Department of State announced the "Edge Artificial Intelligence (AI) Package" program, worth up to 200 million dollars. The move is interpreted as an effort by the United States to expand a trusted technology ecosystem and secure digital influence in markets currently dominated by low-cost Chinese mobile phones.
The core of the project is to distribute low-cost, high-performance smartphones equipped with Android and iOS, operating systems led by U.S. companies. In connection with this, the Department of State stated that it "will enable 1 billion next-generation internet users in the Indo-Pacific region to be integrated into an open, interoperable, and innovative software ecosystem."
Although the Department of State did not specify which parties this initiative is targeting, it stressed that it "will offset price distortions caused by untrusted vendors." This is seen as a reference to Chinese manufacturers such as Huawei and Xiaomi, whose main products are low-cost smartphones.
Proposals must clearly demonstrate, among other things, how the funds provided by the United States can lower the consumer price of devices to a competitively attractive level. The Department of State also emphasized that the vision of "Pax Silica," a U.S.-led AI supply chain alliance launched in December last year, is linked to this policy.
South Korea is also participating in Pax Silica. Since both smartphone manufacturers (OEMs) and mobile network operators (MNOs) can submit project proposals, Samsung Electronics, which shares the global smartphone market with Apple, could be among the primary candidates for review.
Companies wishing to participate must submit their proposals to the U.S. Department of State within the next 90 days. After the Department conducts its review, it will decide whether to provide support.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
