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US starts process to restrict some investment in key tech in China

US starts process to restrict some investment in key tech in China

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The White House has taken a significant step towards safeguarding sensitive technologies by initiating measures to restrict certain U.S. investments in China’s critical tech sectors. 

US starts process to restrict some investment in key tech in China
asiatimes.com

President Joe Biden signed an executive order on Wednesday, directing the U.S. Treasury Department to regulate investments in semiconductors, microelectronics, quantum computing, and artificial intelligence, with a particular focus on countries of concern, initially identifying China, Hong Kong, and Macau. The move aims to protect national security interests while setting the stage for a more controlled investment landscape.

The executive order establishes a framework where notification of investments will be required, and certain prohibitions will be applied to prevent the most acute national security risks. The targeted investments are those that could potentially provide China with military and intelligence advantages. Notably, these regulations will only apply to future investments and will not have retroactive effects.

The technology sectors under scrutiny are semiconductors, microelectronics, quantum computing, and artificial intelligence. These sectors hold immense strategic importance, and the United States has already imposed export restrictions on various technologies that are relevant to these fields. However, by restricting investments, the U.S. aims to prevent its funds from inadvertently aiding China in advancing its own domestic capabilities, which could undermine existing export controls.

While this executive order sets the groundwork for investment restrictions, it is important to note that the implementation process will be meticulous and may extend into 2024, coinciding with the presidential election year. The U.S. Treasury Department will undertake a rulemaking process that will include opportunities for public comment and stakeholder engagement. This thorough approach underscores the importance of these regulations for national security and international technological competition.

The Treasury Department’s proposed regulations target various aspects of technology investment in China. It is considering prohibiting investments in areas such as semiconductor manufacturing equipment, advanced integrated circuits, and certain quantum technologies. Additionally, the department is mulling over notification requirements for investments in less advanced integrated circuits and AI-related software with potential military or intelligence applications.

Also Read: Tokyo Electron’s Sales Dive 17% as Chip Market Malaise Persists

The U.S. has engaged in discussions with allies and partners to ensure that these measures are strategically sound and carefully tailored. Although no coordinated action was taken by allies on the day of the announcement, countries like Britain and the European Union have indicated their intention to implement similar investment restrictions. In fact, the Group of Seven advanced economies previously agreed that outbound investment restrictions should be part of the collective approach.

President Biden’s executive order represents a proactive stance towards protecting national interests and maintaining a competitive edge in crucial tech sectors. By establishing a regulatory framework for technology investments, the U.S. is working to strike a balance between economic engagement and safeguarding sensitive technologies. As the implementation process unfolds over the coming months, industry stakeholders, investors, and experts will closely monitor the developments that shape the future of U.S.-China technology interactions.

Tokyo Electron’s Sales Dive 17% as Chip Market Malaise Persists

Tokyo Electron’s Sales Dive 17% as Chip Market Malaise Persists

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In the midst of a persisting chip market downturn, Tokyo Electron Ltd., Asia’s largest semiconductor equipment manufacturer, is finding solace in the accelerated investments by Chinese chip-makers. 

Tokyo Electron’s Sales Dive 17% as Chip Market Malaise Persists
capgemini.com

As the United States and its allies impose stricter export controls on cutting-edge technology, Chinese players are turning to mature semiconductor equipment, bolstering Tokyo Electron’s revenues. Tokyo Electron’s CEO, Toshiki Kawai, revealed on an earnings call that the company is experiencing “extremely strong investment” in China, leading to the acquisition of new customers. Kawai asserted that this trend is not a fleeting phenomenon limited to the current year but is anticipated to continue due to sustained demand.

This surge in demand from China is effectively compensating for the investment delays encountered among high-end logic chip manufacturers and foundries. Remarkably, China’s contribution accounted for 39% of Tokyo Electron’s revenues in the recent June quarter.

Tokyo Electron occupies a pivotal role in the chipmaking supply chain, supplying the machinery pivotal to Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co., and Intel Corp. The company is weathering the storm by aligning its strategy with the prevalent market dynamics. It anticipates continued investment momentum in the automotive and industrial sectors, consistent with trends observed in the preceding fiscal year.

Despite a challenging global electronics market that led to a 17% sales drop in the June quarter, Tokyo Electron remains resolute in its full-year revenue forecast of ¥1.7 trillion ($11.8 billion). The company achieved an operating profit of ¥82.4 billion, slightly surpassing estimates. Hiroshi Kawamoto, Tokyo Electron’s finance unit head, stated that the Chinese clients are proactively adapting their strategies to circumvent restrictions, showcasing resilience in the face of evolving challenges.

Also Read:  Apple is working on its most powerful MacBook chip yet, the M3 Max

Notably, the company remains unscathed by Japan’s newly imposed constraints on chip-making equipment shipments, indicating its operational robustness. Tokyo Electron’s positive performance can be attributed to the advantageous boost from China, which counterbalances the subdued spending witnessed in other quarters due to the prevailing market slump. The global chip landscape has been marked by uncertainty, leading to July’s announcement by TSMC of a lowered annual sales projection and the postponement of its Arizona project’s production initiation to 2025.

However, despite the subdued market conditions, Tokyo Electron’s Hiroshi Kawamoto remains optimistic about the future. He revealed that the company has received numerous inquiries regarding artificial intelligence (AI)-related investments. Although the initial impact might be modest, the company believes that AI will gradually contribute to its earnings in the upcoming fiscal year. As the chip market experienced a probable bottoming out last quarter, Tokyo Electron positions itself to harness the evolving landscape, counting on innovation and strategic partnerships to navigate the ongoing challenges.

Amazon’s Robot

Amazon’s Robot Workers to Help Run Australia’s Largest Warehouse

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Amazon’s Australian expansion takes a bold step forward as it prepares to operate within the country’s largest warehouse, leveraging advanced robotics for unprecedented efficiency.

Amazon’s Robot
Independent.co.uk

This move underscores Amazon’s commitment to innovation, efficiency, and blending cutting-edge technology with human expertise in its Australian operations. The upcoming fulfilment centre, sprawling over an impressive 209,000 square meters – equivalent to around 29 football fields, is slated for completion by 2025. Situated at Melbourne’s Craigieburn Logistics Estate, this monumental project is set to redefine the e-commerce landscape in Australia.

The true innovation lies in the seamless collaboration between human workers and a fleet of high-tech robots. These robots are designed to work alongside employees, optimising the order fulfilment process. By transporting inventory pods directly to human workers, these robots significantly reduce the time and physical strain associated with tasks like stocking items and picking orders. This harmonious man-machine partnership showcases how technology can augment human labour to achieve unmatched efficiency.

Beyond its technological marvel, this fulfilment centre is a cornerstone for job creation in Australia. In conjunction with the robot workforce, Amazon plans to generate approximately 2,000 job opportunities. Furthermore, an additional 2,000 jobs will emerge during the construction and fit-out phase of the facility. Amazon’s commitment to fostering employment growth while embracing automation reflects its dedication to progressive business practices.

This ambitious project marks a substantial expansion of 9,000 square meters when compared to Amazon’s existing Western Sydney robotics site, introduced with great success in 2022. The warehouse’s development is backed by Australian Super, the nation’s largest pension fund, with Logos at the helm of management and development. This underscores the growing trend of unlisted assets, particularly warehouses, gaining prominence within Australia’s A$3.5 trillion pension industry. The surge in online shopping has transformed the investment landscape, driving a shift towards digital economy-focused opportunities.

Also Read: Uber Is Developing an AI-Powered Chatbot to Integrate Into App

As Amazon’s Australian venture prepares to embrace this new paradigm, the integration of advanced technology and human prowess takes centre stage. The union of robotic precision and human skill amplifies operational efficiency, showcasing the trans-formative power of collaboration. With the fulfilment centre’s completion on the horizon, the business world anticipates Amazon’s pioneering role in shaping the future of warehousing in Australia.

In conclusion, Amazon’s adoption of robotics in Australia’s largest warehouse signifies a monumental leap towards enhanced efficiency and innovation in the e-commerce sector. This unprecedented synergy between cutting-edge technology and human expertise reaffirms Amazon’s commitment to redefining the retail landscape. As the countdown to the fulfilment centre’s completion begins, the business realm eagerly anticipates the dawn of a new era in Australian warehousing.

SoftBank

SoftBank May Turn Profit After $48 Billion in Vision Fund Losses

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After five quarters of revenue losses, SoftBank Group Corporation’s Vision Fund is set to earn a profit owing to a recovery driven by artificial intelligence which is increasing startup market valuations.

After suffering losses of 6.9 trillion dollars approximately $48 billion over the previous two years of operation at the Vision Fund investment subsidiary, the Japanese behemoth is battling to restore its foundation.

SoftBank
Image Source: ft.com

Based on the average of expert expectations, analysts anticipate a minor gain at the investment company for the three months ending in June, whereas SoftBank is expected to disclose a profit of about 73 billion dollars on Tuesday.The IPO (Initial Public Offering) of Arm Ltd. will determine if SoftBank owner Masayoshi Son can embark on the attack and look for new possibilities in business.

In a marketplace launch as early as September, his chip creator hopes to make a profit of a maximum of ten billion dollars at an estimated valuation of 60 to 70 billion dollars. If Arm were successful in achieving its fundraising goal, it would surpass Meta Platforms Inc. as well as Alibaba Group Holding Limited as the biggest technology debut ever.

The values of Arm’s competitors have increased as a result of their obsession with artificial intelligence. The valuation of NVIDIA Corporation has surpassed a trillion dollars this year, and the Nasdaq 100, a barometer for technology firms, had its greatest January-June result ever.

Also Read: Crypto stocks dip after bitcoin slumps to six-week low.

According to Kirk Boodry, a researcher at Astris Advisory, SoftBank provides investors with a means to participate in Arm as an artificial intelligence play before its debut.

“A further run once a public prospectus comes out would not be surprising at all,” he said.

“I’m not convinced we are completely out of the woods yet,” as July’s gains may turn out to be ephemeral while “tech seems priced for perfection (again),” Boodry said. Still, the bounce is “worth highlighting,” and Arm’s upside should provide support even if the Vision Fund looks weak, he said.

Source: finance.yahoo.com

According to Boodry’s estimation, the Vision Fund’s public holdings increased by around 1.1 billion dollars in the June quarter. The two companies that contributed the most, DoorDash Inc. along with Grab Holdings Ltd., had increases of 20 per cent and 14 per cent, respectively, throughout the time frame. Coupang Inc. had a 9 per cent increase. In the same time frame, SoftBank’s stocks increased 31 per cent, which was a three-year high.

Meta

Meta to end news access for Canadians

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Facebook-parent Meta Platforms Corporation told reporters Saturday that if the nation’s Online News Act is enacted in its present form, it will end the accessibility of news and information for Canadians on its portals.

Meta
Image Source: gadgetsnow.com

The bill would require Meta and Google to discuss advertising deals and charge news publishing houses for their information. A Meta spokesperson argued that the proposed legislation was “neither sustainable nor workable,” and expressed concern that it would force them to pay for links or content that they did not post.

Also Read: Google tests blocking news content for some Canadians

The move follows Google’s recent tests on news censorship and both firms’ ongoing expansion of their market share in branding. The Canadian news media industry has called for more regulatory oversight of tech businesses.

The “Online News Act,” or House of Commons bill C-18, which was implemented in April of last year, outlined rules that would require platforms such as Meta as well as Alphabet Inc child company Google to discuss advertising deals as well as charge news publishing houses for their information.

“A legislative framework that compels us to pay for links or content that we do not post, and which are not the reason the vast majority of people use our platforms, is neither sustainable nor workable,” a Meta spokesperson said as a reason to suspend news access in the country.

Source: usnews.com

Meta’s move follows after Google began testing restricted news censorship as a possible reaction to the legislation last month.

The Canadian news media industry has pressed the government regarding more regulatory oversight of tech businesses so as to recover financial losses sustained over the years as technical behemoths such as Google as well as Meta progressively expand their market share in branding.

Pablo Rodriguez, Canadian Heritage Minister, stated in a statement issued on Sunday that it was disheartening to see Facebook stooping to threats rather than cooperating with the Canadian government in good conscience and that the C-18 bill was not related to how Facebook tends to make news media accessible to Canadians.

“All we’re asking Facebook to do is negotiate fair deals with news outlets when they profit from their work,” Rodriguez said. “This is part of a disappointing trend this week that tech giants would rather pull news than pay their fair share.”

Source: usnews.com

The year before, Facebook expressed concern about the legislation as well as warned that it could potentially be pressured to inhibit news-sharing on its platform.

Also Read: Instagram starts testing its age verification tools in more countries

Other nations which have questioned businesses like Facebook and Google to pay news publishing houses for material featured on their portals include New Zealand as well as Australia.

In December, New Zealand Broadcasting Minister Willie Jackson said, “It’s not fair that the big digital platforms like Google and Meta get to host and share local news for free. It costs to produce the news and it’s only fair they pay.”

Source: timesofindia.indiatimes.com
iPhone 14 in India

iPhone may get cheap as Apple starts manufacturing iPhone14 in India.

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Apple Inc. revealed on Monday that it will make the newest iPhone 14 in India as the tech giant moves some of its manufacturing out of China. Since 2017, Apple has been producing iPhones in India, however often they were older models. Apple recently introduced the newest iPhone 14 model in its collection.

iPhone 14 in India
Image Source: macrumors.com

The device is being produced in the Sriperumbudur factory near Chennai by the company’s international partner Foxconn. Apple will sell phones made in India both domestically and internationally. In the next few days, users in India will start receiving the iPhones manufactured locally.

Apple continues to produce the majority of its iPhones primarily in China. Even while the majority of the world works to open its communities, Beijing has continued to use the tactic of lockdowns to quell Covid revivals. Production has been halted at facilities across China due to lockdowns caused by the zero-Covid policy, and certain possible weak links in Apple’s supply chain have been revealed.

Apple has been working to increase revenues in India, the second largest smartphone marketplace in the world, in the interim. According to Counterpoint Research, Apple only held a 3.8% market share in the country last year while cheaper rivals like Samsung and China’s Xiaomi continued to rule.

However, in the second quarter, Apple was the best top seller in the ultra-premium( phones over Rs. 45000) category. That’s because its iPhone 13 devices from the previous generation had good sales.

By 2025, according to analysts, Apple will gradually reduce its dependence on China, where it has been manufacturing the large bulk of its gadgets for more than a decade, and develop India into a worldwide hub for iPhone production.

According to research released earlier this month by JP Morgan analysts, Apple would increase its production capabilities in India to manufacture 25% of all its iPhones by 2025 and relocate 5% of worldwide iPhone 14 production there by late 2022. In recent years, India has drawn investments from Apple’s production partners Wistron and Foxconn by providing generous subsidies as Delhi works to establish the nation as a manufacturing hub.

JP Morgan analysts claim that India is a suitable location due to the presence of global production giants as well as “ample labor resources and competitive labor prices.”

As its capacity for domestic production of iPhone 14 in India grows, many people would anticipate a decrease in the price of Apple’s mobile devices there. The standard iPhone 14 model costs Rs. 79,900 which is equivalent to $799 in the United States. The entry-level iPhone Pro Max has a retail price of $1,099 in the United States, but it costs $1,717 in India.

Apple has boosted its investment in India during the past five years, despite the fact that it only has a small share of the country’s market. It introduced the country’s online Apple Store two years ago, and it has since announced that it’s working on the inauguration of the first-ever physical Apple Store in the nation.

Samsung, a rival to Apple, has already established one of its largest plants in India and views it as a crucial global manufacturing base. The market leader in smartphones, Xiaomi from China, as well as rivals Oppo, Vivo, and OnePlus all, assemble some of their products locally.

The Information recently reported that Google also plans to move some of the manufacturing of its Pixel products to India. The business announced last week that it would introduce the next Pixel 7 devices in India after forgoing shipping flagship models there for two generations.

Apple’s emphasis on production in India demonstrates the tech giant’s intention to spread production outside of China and grow its client base in India, which is currently a minor market for the business.