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Siemens and Nvidia Collaborate to Expand Digital Services

A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, US, July 31, 2017. (Reuters)
A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, US, July 31, 2017. (Reuters)
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Siemens and Nvidia Collaborate to Expand Digital Services

A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, US, July 31, 2017. (Reuters)
A NVIDIA logo is shown at SIGGRAPH 2017 in Los Angeles, California, US, July 31, 2017. (Reuters)

Siemens has signed a partnership agreement with chip designer Nvidia Corp to create an industrial metaverse - an enhanced virtual reality for companies to reduce the costs of running their factories, buildings and speed up new product design.

The deal is a cornerstone of Siemens Xcelerator, a new open digital platform also launched by the German technology and engineering company on Wednesday.

The cloud-based platform, which will feature hardware, software and digital services, is part of Siemens' ambition to grow its digital business by 10% per year from the 5.6 billion euros ($5.89 billion) generated in 2021.

"Siemens Xcelerator will make it easier than ever before for companies to navigate digital transformation - faster and at scale," Siemens Chief Executive Roland Busch said in a statement.

Siemens, which bought Brightly Software for $1.58 billion on Monday, is moving further into the digital space because it offers faster growth rates and higher margins than its traditional business of trains and industrial drives and automation.

Siemens and Nvidia are just two of the companies which are working in the so-called metaverse, which refers broadly to the idea of a shared virtual platform that people can access through different devices and where they can move through digital environments.

Facebook-owner Meta Platforms and Microsoft and others are also looking at metaverse technology can be used in business and leisure.

Siemens's Xcelerator will be the umbrella term for services which will allow customers to visualize yachts or factories, for example, before construction starts.

"We can essentially replace having to build a thing in the real world first," Tony Hemmelgarn, CEO of Siemens Digital Industries Software, told reporters.

The platform would also ensure products "are going to work well, before we commit to building them in the real world when it becomes really expensive and difficult to change," he added.

The services will be offered to customers through Siemens's software as a service (SaaS) subscription model, to make it more affordable for small and medium-sized companies.

As part of the collaboration, Siemens will connect Xcelerator and its own software and digital twin products with Nvidia's Omniverse, a platform for 3D design.

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Technology

Samsung Says Trade Turmoil Raises Chip Business Volatilities, May Hit Phone Demand

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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Samsung Says Trade Turmoil Raises Chip Business Volatilities, May Hit Phone Demand

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

South Korean technology giant Samsung Electronics warned on Wednesday US tariffs could cut demand for products such as smartphones, making it difficult to predict future performance.
According to Reuters, Samsung said it expected its semiconductor business to encounter greater uncertainties throughout the year, while its smartphone shipments faced downward pressure in the second quarter.
The cautious outlook from one of the world's biggest electronics manufacturers reflects the uncertainties roiling global trade due to US President Donald Trump's tariff war, and comes a day after General Motors pulled its annual forecast.
The world's largest memory chipmaker reported a small rise in first-quarter operating profit as customers concerned about US tariffs rushed to purchase smartphones and commodity chips, mitigating the impact of its underperforming artificial intelligence chip business.
It reported 6.7 trillion won ($4.68 billion) in operating profit for the quarter ended in March, up 1.2% from a year earlier and in line with its earlier estimate.
Samsung shares, one of the worst-performing major tech stocks last year, fell 0.4% in line with the broader market.
Steep US tariffs on Chinese goods and toughening restrictions on AI chip sales to China, Samsung's top market, threaten to dampen demand for some of the electronics components the company produces such as chips and smartphone displays.
Trump's "reciprocal" tariffs, most of which have been suspended until July, threaten to hit dozens of countries including Vietnam and South Korea where Samsung produces smartphones and displays.
Samsung said it was considering relocating the production of TVs and home appliances in response to the tariffs.
Chip demand is expected to remain solid in the second quarter, driven by AI servers and preemptive purchasing activities after the pause in tariffs, Samsung said.
But it warned that the frontloading of chip shipments by some customers may have a negative impact on demand later this year.
“We believe that demand uncertainties are growing in the second half as a result of recent changes in tariff policies in major countries, and strengthening of AI chip export controls,” Kim Jae-june, a Samsung vice president in the memory division, said on an earnings call.
Samsung CFO Park Soon-cheol said however that "we cautiously expect the overall performance to gradually improve as we move into the second half, assuming the easing of current uncertainties".
Some analysts were unconvinced, saying the company did not give detailed guidance for its struggling AI chip business.
"With pull-in demand still ongoing and macro uncertainty lingering, the explanation for the 'first-half low, second-half rebound' outlook was lacking," Ryu Young-ho, a senior analyst at NH Investment & Securities said.
AI CHIPS
Samsung's mobile device and network business reported a 23% rise in profit to 4.3 trillion won during the period, reaching its highest level in four years, helped by the latest version of the flagship Galaxy S model with AI features.
Samsung has accelerated smartphone production in Vietnam, India and South Korea ahead of the US duties, a person familiar with the matter told Reuters earlier.
While mobile performed strongly, the chip division's operating profit slumped 42% to 1.1 trillion won from a year earlier despite chip stockpiling by some customers.
Samsung reported a fall in sales of High Bandwidth Memory (HBM) - used in AI processors - due in part to US export controls on AI chips.
Samsung said it had supplied samples of its enhanced HBM3E products to major customers and expected HBM sales, which have bottomed out in the first quarter, to "gradually" rise from the second quarter, without offering detailed targets.
Analysts estimate that about one third of Samsung's HBM revenue has come from China, and it lags behind cross-town rival SK Hynix in supplying such chips to Nvidia in the United States.
SK Hynix last week logged its second-highest quarterly operating profit in the first quarter with a 158% jump to 7.4 trillion won, boosted by strong AI-related demand.
Revenue rose 10% to 79.1 trillion won in the January-to-March period, in line with its earlier estimate of 79 trillion won.