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US, other G7 nations, fall behind in global tech race, study finds
The “Group of 7” (G7) nations are falling behind in key tech economic indicators such as high-tech exports, the number of software developers, and AI-related patent filings, endangering their future competitiveness, according to new study by London-based workforce consultancy SThree and the Center for Economics and Business Research (Cebr).
In fact, not one G7 nation made it into the top 10 — a “clear warning sign” for the future, the study warned. (The G7 consists of the US, UK, Canada, France, Germany, Italy, Japan, and the European Union as a non-enumerated member.)
“Once the global epicenter for innovation, these countries are now facing stiff competition from emerging tech hubs,” said SThree CEO Timo Lehne. “The challenge is no longer simply about maintaining their position; it’s about ensuring they lead the charge in fostering innovation and nurturing the businesses that will drive the future of global technology.”
Without focusing on innovation and future industries, tech leadership by the G7 is no longer guaranteed, Lehne said.
Tech advances are reshaping the global economy, with industries such as AI, automation, and clean energy relying on a STEM-skilled workforce. As a result, countries investing in science, technology, engineering and math (STEM) education and training will drive growth; those that don’t may fall behind, according to the report.
The G7 has already seen the effects of reduced competitiveness this year, with the US’s “Magnificent Seven” (Apple, Microsoft, Amazon, Nvidia, Alphabet, Meta, and Tesla) losing $1.5 trillion in market value since the start of 2025. The companies saw similar losses in just a few days last year as well.
According to SThree, the US has slipped several spots and is now behind the UK and Canada in tech competitiveness, while Singapore, Ireland, and Australia all secured top-10 spots based on STEM skills and training.
Asian countries occupied the top spots in the “Foundational Education Pillar,” with Singapore on top, followed by Japan and South Korea. Estonia was the top-scoring European nation at No. 4.
SThree and the Centre for Economics and Business Research
Singapore’s success can be attributed to its focus on services, R&D, and innovation, according to industry observers. The nation’s government has an Economic Development Board (EDB), which works to attract and grow industries, and it has shifted its focus from low-cost manufacturing to high-value sectors such as aerospace and semiconductors. It has also become a hub for digital technologies, with many companies relocating their headquarters from Hong Kong due to China’s influence over that territory, which it reclaimed in 1997.
Education and research institutes in Singapore focus on developing a skilled workforce in tech fields like AI, while companies benefit from funded research partnerships. Singapore has also nurtured a number of tech unicorns including Lazada, Grab, and Ninja Van, promotes fintech through annual events, and has easy work visa access.
The study didn’t include some large economies such as China, India or any African nation because of “a lack of data availability within those countries.” Yet, researchers noted that not including China “is arguably the biggest omission in this year’s index. From what we know, China’s STEM ecosystem is developing very quickly. It boasts 63 of the top 500 research institutions, it is increasingly seen as a research superpower that is competing with the likes of the United States and Europe, and is investing heavily in R&D3.”
Switzerland and Sweden got top marks for STEM skills, while Denmark passed Sweden for second place for Life Sciences, according to the study. Finland and the Republic of Korea saw improved scores on engineering skills, coming in first and second, respectively.
Although the UK and US refused to sign last month’s European Union AI agreement regulating the technology, each ranks 11th and 16th, respectively, for AI patents, with Korea, Japan, and Singapore at the top.
“The lack of competitiveness in the G7 was felt when US tech giants lost $1.13 trillion in market value, affecting companies like Germany’s Infineon and Japan’s SoftBank,” the study said, pointing to losses in 2024. “In overall tech rankings, Singapore, Ireland, and Australia lead in fostering tech innovation, surpassing all G7 nations.”
The importance of investing in STEMSingapore has skyrocketed in tech innovation and exports for a myriad of reasons, not the least of which is because STEM skills can boost critical thinking and problem-solving across any role.
Cebr and SThree used 26 indicators in areas like education, workforce integration, industry opportunities, and innovation to develop their index ranking 35 countries based on STEM skills. Success depends on collaboration between governments, businesses, and education to build a skilled STEM workforce.
A growing number of organizations are dropping traditional college degree requirements in favor of skills gained through alternative methods. Large companies, including Boeing, Walmart, and IBM, have signed on to varying skills-based employment projects, such as the Rework America Alliance, the Business Roundtable’s Multiple Pathways program, and the campaign to Tear the Paper Ceiling, pledging to implement skills-based practices, according to McKinsey & Co.
“So far, they’ve removed degree requirements from certain job postings and have worked with other organizations to help workers progress from lower- to higher-wage jobs,” McKinsey said in a November report.
Skills-based hiring helps companies find and attract a broader pool of candidates better suited to fill positions long term, and it opens up opportunities to non-traditional candidates, including women and minorities, according to McKinsey.
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Qualcomm launches global antitrust offensive against Arm, accusing it of stifling competition
Qualcomm has launched a global antitrust offensive against Arm Holdings, accusing its longtime partner of anti-competitive practices in regulatory complaints filed across three continents. This escalating legal battle marks a significant shift in the relationship between two of the most influential players in the semiconductor industry.
The unprecedented legal offensive spans three continents, with Qualcomm filing complaints with the European Commission, US Federal Trade Commission, and Korea Fair Trade Commission, reported Bloomberg.
The dispute threatens to upend the global technology supply chain, potentially impacting billions of devices — from smartphones and laptops to AI-driven systems and data center infrastructure. At stake is the future of semiconductor intellectual property licensing, with potential ripple effects including increased costs for manufacturers and consumers, as well as heightened uncertainty across an industry that relies heavily on Arm’s processor designs.
A shifting semiconductor landscapeThe dispute centers on Arm’s shift from an open licensing model — under which chipmakers like Qualcomm could develop custom processors based on Arm’s designs — to a more restrictive approach favoring its own chip products. Qualcomm argues that this move threatens competition in the semiconductor industry, which has relied on Arm’s technology for over two decades.
The chipmaker argues that Arm is undermining the competitive ecosystem it previously cultivated by pursuing its own chipmaking ambitions.
Arm has received the EU complaint and preparing to respond, the report added.
The report also said that Qualcomm met with US Federal Trade Commission officials in Washington earlier this year to discuss its concerns. The company has accused Arm of withholding critical technology that should be provided under existing license agreements.
Additionally, Qualcomm has raised similar concerns with South Korea’s antitrust regulator, the report added citing people familiar with the development.
The dispute emerges against the backdrop of Arm’s recent strategic pivot, including its controversial decision to design and sell server chips directly to Meta — a move that has already disrupted traditional industry dynamics.
As Arm continues to push forward with its strategic vision — including its direct chip design efforts — the stakes have never been higher in this high-stakes technological chess match.
“Arm remains focused on enhancing innovation, promoting competition, and respecting contractual rights and obligations. Any allegation of anti-competitive conduct is nothing more than a desperate attempt by Qualcomm to detract from the merits and expand the parties’ ongoing commercial dispute for its own competitive benefit. Arm is confident that it will ultimately prevail in this dispute,” an Arm spokesperson said.
Qualcomm did not comment on the development.
Market dynamics and technological shiftsAt the heart of the conflict lies Arm’s instruction set architecture — the fundamental code enabling software communication with processors. Qualcomm’s challenge extends beyond immediate commercial interests, potentially questioning the very mechanisms of technological licensing and intellectual property management in the semiconductor sector.
The complaints come as regulators worldwide scrutinize the evolving dynamics of the semiconductor market. Arm, which is majority-owned by Japan’s SoftBank, licenses its processor architecture to a vast ecosystem of chipmakers, including Apple and MediaTek.
However, under CEO Rene Haas, the company has moved toward offering more complete chip designs, competing directly with some of its own customers. That move signaled a dramatic shift from Arm’s traditional role as a neutral technology licensing company to a direct competitor in the semiconductor market.
This strategic repositioning has fundamentally altered the company’s relationship with long-standing partners like Qualcomm, Nvidia, and Apple.
However, both companies are maneuvering to capitalize on the expanding computing market, particularly in AI and high-performance computing. The smartphone chip market — previously a primary revenue source — has become increasingly saturated, pushing companies to seek new growth opportunities.
Arm’s response to the allegations has been robust and devoid of any wrongdoing. The company stated it remains “focused on enhancing innovation, promoting competition, and respecting contractual rights and obligations,” characterizing Qualcomm’s complaints as “a desperate attempt to detract from the merits” of their ongoing commercial dispute, the report added.
Potential industry ramificationsThe ongoing legal and regulatory battles between Qualcomm and Arm highlight broader tensions in the semiconductor industry, particularly as companies position themselves to capitalize on growing demand for computing chips beyond smartphones. AI, data centers, and enterprise computing are emerging as key battlegrounds, with chipmakers vying for market dominance.
Both companies have a history of regulatory challenges. Qualcomm, which previously faced scrutiny over its own licensing practices, has largely prevailed in antitrust cases, including a high-profile appeal against the FTC. Meanwhile, Arm is under pressure to sustain growth following its failed acquisition by Nvidia in 2022 and its subsequent public listing.
With court-ordered mediation talks scheduled and multiple regulatory investigations underway, the technology industry will be watching closely. The outcome could significantly reshape the semiconductor landscape, influencing how chip design companies interact with their customers and compete in an increasingly complex market.
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