Month: May 2020

The Trump administration on Friday moved to block shipments of semiconductors to Huawei Technologies from global chipmakers, in an action ramping up tensions with China.The U.S. Commerce Department said it was amending an export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.”The reaction from China  was swift with a report saying it was ready to put U.S. companies on an “unreliable entity list,” as part of countermeasures in response to the new limits on Huawei, FILE – A security personnel stands near the logo of Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) during an investor conference in Taipei, July 16, 2014.The rule change is a blow to Huawei, the world’s No. 2 smartphone maker, as well as to Taiwan’s Taiwan Semiconductor Manufacturing Co Ltd, a major producer of chips for Huawei’s HiSilicon unit as well as mobile phone rivals Apple and Qualcomm. TMSC announced late Thursday it would build a $12 billion chip factory in Arizona.TSMC said Friday it is “working with outside counsels to conduct legal analysis and ensure a comprehensive examination and interpretation of these rules. We expect to have the assessment concluded before the effective date,” the company said, adding the “semiconductor industry supply chain is extremely complex, and is served by a broad collection of international suppliers.”Huawei, which needs semiconductors for its widely used smartphones and telecoms equipment, is at the heart of a battle for global technological dominance between the United States and China.Huawei, which has warned that the Chinese government would retaliate if the rule went into effect, did not immediately comment on Friday. U.S. stock market futures turned negative on the Reuters report.”The Chinese government will not just stand by and watch Huawei be slaughtered on the chopping board,” Huawei Chairman Eric Xu told reporters on March 31.The United States is trying to convince allies to exclude Huawei gear from next generation 5G networks on grounds its equipment could be used by China for spying. Huawei has repeatedly denied the claim.Huawei has continued to use U.S. software and technology to design semiconductors, the Commerce Department said, despite being placed on a U.S. economic blacklist in May 2019.FILE – A chip by Huawei’s subsidiary HiSilicon is displayed in Fuzhou, Fujian province, China, March 21, 2019.Under the rule change, foreign companies that use U.S. chipmaking equipment will be required to obtain a U.S. license before supplying certain chips to Huawei, or an affiliate like HiSilicon. The rule targets chips designed or custom-made for Huawei.In order for Huawei to continue to receive some chipsets or use some semiconductor designs tied to certain U.S. software and technology, it would need to receive licenses from the Commerce Department.National security concernsCommerce Secretary Wilbur Ross told Fox Business “there has been a very highly technical loophole through which Huawei has been in able, in effect, to use U.S. technology with foreign fab producers.” Ross called the rule change a “highly tailored thing to try to correct that loophole.”Ross said in a written statement Huawei had “stepped-up efforts to undermine these national security-based restrictions.”The Commerce Department said the rule will allow wafers already in production to be shipped to Huawei as long as the shipments are complete within 120 days from Friday. Chipsets would need to be in production by Friday or they would be ineligible under the rule.The United States placed Huawei and 114 affiliates on its economic blacklist citing national security concerns. That forced some U.S. and foreign companies to seek special licenses from the Commerce Department to sell to it, but China hawks in the U.S. government have been frustrated by the vast number of supply chains beyond their reach.Separately, the Commerce Department extended a temporary license that was set to expire Friday to allow U.S. companies, many of which operate wireless networks in rural America, to continue doing business with Huawei through Aug. 13. It warned it expected this would be the final extension.Reuters first reported the administration was considering changes to the Foreign Direct Product Rule, which subjects some foreign-made goods based on U.S. technology or software to U.S. regulations, in November.Most chip manufacturers rely on equipment produced by U.S. companies like KLA, Lam Research and Applied Materials, according to a report last year from China’s Everbright Securities.Other recent actionThe Trump administration has taken a series of steps aimed at Chinese telecom firms in recent weeks.The U.S. Federal Communications Commission (FCC) last month began the process of shutting down the U.S. operations of three state-controlled Chinese telecommunications companies, citing national security risks. The FCC also in April approved Alphabet Inc. unit Google’s request to use part of an 8,000-mile undersea telecommunications cable between the United States and Taiwan, but not Hong Kong, after U.S. agencies raised national security concerns.This week, President Donald Trump extended for another year a May 2019 executive order barring U.S. companies from using telecommunications equipment made by companies deemed to pose a national security risk, a move seen aimed at Huawei and peer ZTE Corp. 
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A Taiwan-based company is planning a $12 billion semiconductor factory in the U.S. state of Arizona.Taiwan Semiconductor Manufacturing Co. is the world’s largest contract manufacturer of computer chips.The firm said Friday the factory will create as many as 1,600 jobs. Thousands more jobs are expected to be created along the supply lines to support production of the 5-nanometer chips.The factory will be able to produce 20,000 of the wafers each month. They’re used in an array of consumer electronics, including the iPhones and defense equipment.Construction of the facility is to begin next year, and the location in Arizona has not been determined.“This project,” the company said, “is of critical, strategic importance to a vibrant and competitive U.S. semiconductor ecosystem that enables leading U.S. companies to fabricate their cutting-edge semiconductor products within the United States.”The firm has another U.S. factory in Washington state.U.S. Commerce Secretary Wilbur Ross lauded the plan as showing the success of President Donald Trump’s programs.The company’s plan to set up the facility, he said, “is yet another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing and made the United States the most attractive place in the world to invest.”Also praising the move was Secretary of State Mike Pompeo, who said the facility will “increase U.S. economic independence, bolster our safety and competitiveness, and strengthen our leadership in high-tech manufacturing.”“This historic deal also strengthens our relationship with Taiwan, a vibrant democracy and force for good in the world,” he said.TSMC’s stock rose more than 1.5 percent Friday morning which outperformed the 0.8 percent gain in the main Taiwan stock market.  
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It’s a race against time.As communities start to open, governments are rushing to put together smartphone apps that can be part of their arsenal to curtail the spread of COVID-19.But the apps — and the technologies they rely on — vary, and for many that has led to confusion about what to expect.“It’s overwhelming how many proposals are coming out,” Gennie Gebhart, associate director of research at the Electronic Frontier Foundation (EFF), said. “There’s total alphabet soup of different acronyms, of different technologies. And it’s hard to understand exactly what is what. And I think that’s because it’s still early days.”Sorry, but your browser cannot support embedded video of this type, you can
download this video to view it offline. Embed” />CopyGennie Gebhart, associate director of research at the Electronic Frontier FoundationTracking your proximity to an exposureAt the moment, there’s not yet an app available in the United States that lets someone know if they’ve been exposed to someone testing positive for COVID-19. Around the world, Singapore, Australia and other nations have released apps that do this but with varying success.The main proposal for a consumer app comes from Apple and Google, which together create the operating systems for most smartphones in the world. They have joined forces to release software tools so that governments can make an app that will help with letting people know if they’ve been exposed to COVID-19.Their approach relies on Bluetooth, a short-range radio frequency inside a smartphone. Phones with the app will store the Bluetooth beams they receive from other phones and check daily a database of those who have reported testing positive. If there is a match – that someone has been too close for too long to a person with a confirmed diagnosis of COVID-19 – the person learns about it and can contact a health professional to find out the next steps to take.Privacy advocates such as the ACLU and EFF support this approach, which keeps data decentralized and anonymized. Bluetooth doesn’t provide information to public health departments.GPS location data approachBut some states, such as North and South Dakota, as well as Utah, are looking to apps for a different purpose — to help with their contact tracing efforts. That’s when public health workers contact people who have been exposed to someone with COVID-19. These apps rely on GPS location data, which can reveal information about a person’s movements, as well as the Bluetooth proximity information.With the Dakotas app, Care 19, if a person consents, their location data is shared with local public health officials. More than 45,000 residents of Utah – about 2 percent of the state’s population – have signed up for its state app, Healthy Together, according to CNBC.To download or not?Gebhart, of EFF, said there are an array of questions people might want to consider before they download a COVID-19 app. How much data is collected? Are users allowed to turn it on and off, or uninstall it at will?“There needs to be trust for the system to work for people to want to adopt it and want to interact with it,” she said.In many ways, the apps proposed have been unproven and untested, Gebhart said. But as governments open society again, this public health technology experiment may play a role in whether residents can begin to safely venture out.
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