Nichelle Nichols, Lieutenant Uhura on ‘Star Trek,’ Dies at 89

Nichelle Nichols, who broke barriers for Black women in Hollywood when she played communications officer Lt. Uhura on the original Star Trek television series, has died at the age of 89.

Her son Kyle Johnson said Nichols died Saturday in Silver City, New Mexico.

“Last night, my mother, Nichelle Nichols, succumbed to natural causes and passed away. Her light however, like the ancient galaxies now being seen for the first time, will remain for us and future generations to enjoy, learn from, and draw inspiration,” Johnson wrote on her official Facebook page Sunday. “Hers was a life well lived and as such a model for us all.”

Her role in the 1966-69 series as Lt. Uhura earned Nichols a lifelong position of honor with the series’ rabid fans. It also earned her accolades for breaking stereotypes that had limited Black women to acting roles as servants and included an interracial onscreen kiss with co-star William Shatner that was unheard of at the time.

“I shall have more to say about the trailblazing, incomparable Nichelle Nichols, who shared the bridge with us as Lt. Uhura of the USS Enterprise, and who passed today at age 89,” George Takei wrote on Twitter. “For today, my heart is heavy, my eyes shining like the stars you now rest among, my dearest friend.”

Like other original cast members, Nichols also appeared in six big-screen spinoffs starting in 1979 with “Star Trek: The Motion Picture” and frequented “Star Trek” fan conventions. She also served for many years as a NASA recruiter, helping bring minorities and women into the astronaut corps.

More recently, she had a recurring role on television’s “Heroes,” playing the great-aunt of a young boy with mystical powers.

The original “Star Trek” premiered on NBC on Sept. 8, 1966. Its multicultural, multiracial cast was creator Gene Roddenberry’s message to viewers that in the far-off future — the 23rd century — human diversity would be fully accepted.

“I think many people took it into their hearts … that what was being said on TV at that time was a reason to celebrate,” Nichols said in 1992 when a “Star Trek” exhibit was on view at the Smithsonian Institution.

She often recalled how Martin Luther King Jr. was a fan of the show and praised her role. She met him at a civil rights gathering in 1967, at a time when she had decided not to return for the show’s second season.

“When I told him I was going to miss my co-stars and I was leaving the show, he became very serious and said, ‘You cannot do that,'” she told The Tulsa (Okla.) World in a 2008 interview.

“‘You’ve changed the face of television forever, and therefore, you’ve changed the minds of people,’ ” she said the civil rights leader told her.

“That foresight Dr. King had was a lightning bolt in my life,” Nichols said.

During the show’s third season, Nichols’ character and Shatner’s Capt. James Kirk shared what was described as the first interracial kiss to be broadcast on a U.S. television series. In the episode, “Plato’s Stepchildren,” their characters, who always maintained a platonic relationship, were forced into the kiss by aliens who were controlling their actions.

The kiss “suggested that there was a future where these issues were not such a big deal,” Eric Deggans, a television critic for National Public Radio, told The Associated Press in 2018. “The characters themselves were not freaking out because a Black woman was kissing a white man. … In this utopian-like future, we solved this issue. We’re beyond it. That was a wonderful message to send.”

Worried about reaction from Southern television stations, showrunners wanted to film a second take of the scene where the kiss happened off-screen. But Nichols said in her book, “Beyond Uhura: Star Trek and Other Memories,” that she and Shatner deliberately flubbed lines to force the original take to be used.

Despite concerns, the episode aired without blowback. In fact, it got the most “fan mail that Paramount had ever gotten on Star Trek for one episode,” Nichols said in a 2010 interview with the Archive of American Television.

Born Grace Dell Nichols in Robbins, Illinois, Nichols hated being called “Gracie,” which everyone insisted on, she said in the 2010 interview. When she was a teen her mother told her she had wanted to name her Michelle but thought she ought to have alliterative initials like Marilyn Monroe, whom Nichols loved. Hence, “Nichelle.”

Nichols first worked professionally as a singer and dancer in Chicago at age 14, moving on to New York nightclubs and working for a time with the Duke Ellington and Lionel Hampton bands before coming to Hollywood for her film debut in 1959’s “Porgy and Bess,” the first of several small film and TV roles that led up to her “Star Trek” stardom.

Nichols was known as being unafraid to stand up to Shatner on the set when others complained that he was stealing scenes and camera time. They later learned she had a strong supporter in the show’s creator.

In her 1994 book, she said she met Roddenberry when she guest starred on his show “The Lieutenant,” and the two had an affair a couple of years before “Star Trek” began. The two remained lifelong close friends.

Another fan of Nichols and the show was future astronaut Mae Jemison, who became the first black woman in space when she flew aboard the shuttle Endeavour in 1992.

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Women’s Soccer Energizes England in a League of Their Own

Izzy Short, 13, struggles to pick her favorite England player as she anticipates the team’s appearance in Sunday’s final of the European soccer championships.

There’s forward Ellen White. Defender Lucy Bronze. Midfielder Georgia Stanway. Captain Leah Williamson. The whole team basically.

“I just look up to them really,” the high school player from Manchester said, excitement filling her voice. “They are all very positive … they all, like, appreciated one another and how they are such a good team and all of them just working together really. And they’re just so kind and so good as well.”

The march to Sunday’s final against Germany has energized people throughout England, with the team’s pinpoint passing and flashy goals attracting record crowds, burgeoning TV ratings and adoring coverage. The Lionesses, as the team is known, have been a welcome distraction from the political turmoil and cost-of-living crisis that dominate the headlines.

The final, set to be played before a sellout crowd of more than 87,000 at historic Wembley Stadium, is seen as a watershed moment for women’s sports in England. Although the game, known here as football, is a national passion, female players have often been scoffed at and were once banned from top-level facilities. Now the women’s team has a chance to do something the men haven’t done since 1966: Win a major international tournament.

Hope Powell played 66 times for England and coached the team from 1998 to 2013.

“I think we have to give thanks to the people that worked really hard before us, that went through all of that, being banned, fighting for the right to play,” Powell told the BBC. “I think we have to remember what came before is what got us to the point we are today.”

There were 68,871 people in the stands at Old Trafford, the home of Manchester United, when England beat Austria 1-0 in its opening game of this year’s European championship. That helped push total tournament attendance so far to 487,683 — more than double the record of 240,055, according to tournament organizer UEFA.

But it’s not just the victories that are attracting fans. It is how the team is winning.

With money from sponsorship deals and a new TV contract supporting full-time professional players, there is more flash and polish than many expected. While they don’t play like the men’s team, that’s not a bad thing.

There are fewer players flopping to the ground to draw fouls, less rolling around on the turf dramatically clutching purportedly injured knees or ankles and little shouting at the referees. Instead there is teamwork, artful passes and stunning goals like Stanway’s 20-meter (22-yard) screamer in the quarterfinal victory over Spain and the backheel from Alessia Russo in England’s 4-0 semifinal win against Sweden.

And here’s the thing: People like it.

Naomi Short, Izzy’s mom and the goalie for Longford Park Ladies Football Club, said fans are being treated to a “totally different vibe” at the stadium and on the field — one that’s more welcoming than the lager-fueled tribalism that has put some people off the men’s game.

“It’s not just girls watching it — it’s families, it’s men, women, children. Everybody’s watching it. It’s brought everybody together,” said Short, 44. “Whereas, you know, sometimes when you go to a men’s game, there is sometimes (a) slightly different atmosphere.”

There is also less distance between fans and the players, who know they have a responsibility to build a game their mothers and grandmothers were excluded from. The players stay after games and sign autographs. They take selfies. There is time for a chat. They know that little kids look up to them.

Coach Sarina Wiegman has made a point of noting that there’s more at stake than victory alone.

“We want to inspire the nation,” Wiegman said after the team’s semifinal victory. “I think that’s what we’re doing and we want to make a difference — and we hope that we will get everyone so enthusiastic and proud of us and that even more girls and boys start playing football.”

The groundswell of support for the team is also being fueled by the country’s dismal record in international competition and hopes that they can bring a European championship home to England, which prides itself as the place where modern football was invented.

England’s last major international championship, men’s or women’s, came at the 1966 World Cup — a lifetime ago for most fans. The men’s team disappointed fans again last year when they lost to Italy in the final of their European championship.

That leaves it to the women to end the drought.

Women’s football has a long and sometimes controversial history in England.

The women’s game flourished during and for a few years after World War I, when teams like Dick, Kerr Ladies Football Club filled the sporting gap created as top men’s players went off to the trenches to fight. Women’s teams, many organized at munitions plants, attracted large crowds and raised money for charity. One match in 1920 attracted 53,000 spectators.

But that popularity triggered a backlash from the men who ran the Football Association, the sport’s governing body in England. In 1921, the FA banned women’s teams from using its facilities, saying “the game of football is quite unsuitable for females and ought not to be encouraged.”

The ban remained in place for the next 50 years.

Women organized their own football association in 1969, and soon after the FA ended its ban on women. The FA took over responsibility for the women’s game in 1993, beginning the slow process of improving funding and facilities.

Things accelerated after the 2012 London Olympics, when authorities began to recognize there was a global audience for the women’s game, said Gail Newsham, author of “In a League of Their Own!” that tells the story of Dick, Kerr Ladies.

Last year, the FA signed a three-year deal for broadcast rights to the Women’s Super League, increasing funding and exposure for the game. Sky Sports will broadcast a minimum of 35 games a year on its pay TV channels, and the BBC will carry another 22 on its free-to-view network.

“It’s not that long ago that girls, you know, top players, were paying for their own travel to get to matches and then having to get up to go to work the next day. So all of this is helping,” Newsham said of the funding. “You can see the difference now in the professionalism of the girls playing football.”

The excitement about Sunday’s final has triggered a scramble for tickets.

Tickets that originally sold for 15-50 pounds ($18-$61) are now selling for 100-1,000 pounds ($122-$1,216) on resale sites.

The Short family has decided to watch the game at the local pub, making an afternoon of it, like fans around the country.

“I don’t think it will matter if it’s men or women,” Naomi Short said. “It’s England now. It’s coming home. You know, I’d like to think that’s what people are getting excited about.”

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US, Japan to Set Up Research Center for Next Semiconductors

The United States and Japan launched a new high-level economic dialogue Friday aimed at pushing back against China and countering the disruption caused by Russia’s invasion of Ukraine.

The two longtime allies agreed to establish a new joint research center for next-generation semiconductors during the so-called economic “two-plus-two” ministerial meeting in Washington, Japanese Trade Minister Koichi Hagiuda said.

U.S. Secretary of State Antony Blinken, U.S. Commerce Secretary Gina Raimondo, Japanese Foreign Minister Yoshimasa Hayashi and Hagiuda also discussed energy and food security, the officials said in a news briefing.

“As the world’s first- and third-largest economies, it is critical that we work together to defend the rules-based economic order, one in which all countries can participate, compete and prosper,” Blinken told the opening session.

Hagiuda said “Japan will quickly move to action” on next-generation semiconductor research and said Washington and Tokyo had agreed to launch a “new R&D organization” to establish a secure source of the vital components.

The research hub would be open for other “like-minded” countries to participate in, he said.

The two countries did not immediately release additional details of the plan, but Japan’s Nikkei Shimbun newspaper earlier said it would be set up in Japan by the end of this year to research 2-nanometer semiconductor chips. It will include a prototype production line and should begin producing semiconductors by 2025, the newspaper said.

“As we discussed today, semiconductors are the linchpin of our economic and national security,” said Raimondo, adding that the officials had discussed collaboration on semiconductors, “especially with respect to advanced semiconductors.”

Taiwan now makes the vast majority of semiconductors under 10 nanometers, which are used in products such as smart phones, and there is concern about the stability of supply should trouble arise involving Taiwan and China, which views the island as part of its territory.

The United States and Japan said in a joint statement they would work together “to foster supply chain resilience in strategic sectors, including, in particular, semiconductors, batteries, and critical minerals.” They vowed to “build a strong battery supply chain to lead collaboration between like-minded countries.”

On ties with Russia, Hagiuda said he gained U.S. understanding about Japan’s intention to keep its stake in the Sakhalin-2 oil and gas project despite sanctions against Moscow by Washington, Tokyo and others following the Ukraine invasion.

“There are voices calling for withdrawal. But it would mean our stake goes to a third country and Russia earns an enormous profit. We explained how keeping our stake is in line with sanctions, and I believe we gained U.S. understanding,” he said.

Japanese trading houses Mitsui & Co and Mitsubishi Corp hold a combined 22.5% stake in the project.

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US Probes Cyber Breach of Federal Court Records System

The U.S. Justice Department is investigating a cyber breach involving the federal court records management system, the department’s top national security attorney told lawmakers Thursday.

Matt Olsen, head of the Justice Department’s National Security Division, alluded to the threat of cyberattacks by foreign nations as he told the U.S. House of Representative Judiciary Committee that the incident was a “significant concern.”

Olsen made the remarks in response to questions from Representative Jerrold Nadler, the panel’s Democratic chairman, who said that “three hostile foreign actors” had attacked the courts’ document filing system.

Nadler said the committee learned only in March of the “startling breadth and scope” of the breach. Olsen said the Justice Department was working closely with the federal judiciary around the country to address the issue.

“While I can’t speak directly to the nature of the ongoing investigation of the type of threats that you’ve mentioned regarding the effort to compromise public judicial dockets, this is of course a significant concern for us given the nature of the information that’s often held by the courts,” Olsen said.

Olsen did not comment on who was behind the attack, but he noted that his division was focused generally on the risk of cyberattacks by foreign nations including China, Russia, Iran and North Korea.

The Administrative Office of the U.S. Courts in January 2021 said it was adding new security procedures to protect confidential or sealed records following an apparent compromise of its electronic case management and filing system.

The Administrative Office, the judiciary’s administrative arm, in a statement on Thursday called cybersecurity a high priority and said it has been taking “significant actions to protect our systems and the sensitive information they contain.”

Further details could not be immediately determined. A Justice Department spokesman said the department as a general policy does not confirm or deny the existence of specific investigations.

The federal judiciary has been working to modernize its electronic case management and filing system and the related online portal known as PACER, which is used to access records, citing the risk of cyberattacks on the aging electronic system.

“We are vulnerable,” U.S. Circuit Judge Amy St. Eve testified at a House committee hearing in May on the judiciary’s budget request. 

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Giant Video Screen Falls on Boy Band Mirror Dancers at Hong Kong Concert

A huge video panel fell on the stage during a concert by popular Hong Kong boy band Mirror on Thursday, crushing one performer and trapping others, prompting a government investigation and the suspension of future shows.

At least two dancers were injured, with one in a serious condition and the other stable, local broadcaster RTHK reported.

Three members of the audience were also injured, local media reported, with many fans emotional after the harrowing scenes.

“I am shocked by the incident. I express sympathy to those who were injured and hope that they would recover soon,” Hong Kong Chief Executive John Lee said Friday.

The government would investigate and review safety procedures to protect performers, staff and the public, he said.

Kevin Yeung, the city’s culture secretary, said the show would be suspended until the stage structure was safe. The government’s leisure bureau had already contacted the concert organizer about other stage incidents in recent days, he said in a statement.

The hugely popular cantopop group was formed in 2018 through a reality television show and had planned a series of 12 shows at Hong Kong’s Coliseum, next to the city’s Victoria harbor.

More than 13,000 Mirror fans signed an online petition asking the concert organizer to resolve the problems and ensure safety for all performers, according to the petition’s website.

MakerVille, the concert organizer which is owned by Hong Kong tycoon Richard Li’s PCCW Media Group, said it was thoroughly investigating the cause of the accident.

“We are deeply sorry that the incident caused unease to viewers or others affected.”

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Congress OKs Bill to Aid Computer Chip Firms, Counter China 

The House on Thursday passed a $280 billion package to boost the semiconductor industry and scientific research in a bid to create more high-tech jobs in the United States and help it better compete with international rivals, namely China. 

The House approved the bill by a solid margin of 243-187, sending the measure to President Joe Biden to be signed into law and providing the White House with a major domestic policy victory. Twenty-four Republicans voted for the legislation. The Senate passed the bill Wednesday, 64-33.

“Today, the House passed a bill that will make cars cheaper, appliances cheaper and computers cheaper,” Biden said. “It will lower the costs of everyday goods. And it will create high-paying manufacturing jobs across the country and strengthen U.S. leadership in the industries of the future at the same time.” 

As the vote was taking place, Biden was discussing the economy with CEOs at the White House. During the event, he was handed a note informing him it was clear the bill would pass — a development that produced a round of applause before the tally was final. 

Most Republicans argued that the government should not spend billions to subsidize the semiconductor industry. GOP leadership in the House recommended a vote against the bill, telling members the plan would provide enormous subsidies and tax credits “to a specific industry that does not need additional government handouts.” 

 

Taxes, regulations

Representative Guy Reschenthaler, a Pennsylvania Republican, said the way to help the industry would be through tax cuts and easing federal regulations, “not by picking winners and losers” with subsidies — an approach that Representative Joseph Morelle, a New York Democrat, said was too narrow. 

“This affects every industry in the United States,” Morelle said. “Take, for example, General Motors announcing they have 95,000 automobiles awaiting chips. So, you want to increase the supply of goods to people and help bring down inflation? This is about increasing the supply of goods all over the United States in every single industry.” 

Some Republicans viewed passing the legislation as important for national security. 

Representative Michael McCaul of Texas, the top Republican on the House Foreign Affairs Committee, said it was critical to protect semiconductor capacity in the U.S. and that the country was too reliant on Taiwan for the most advanced chips. That could prove to be a major vulnerability should China try to take over the self-governing island that Beijing views as a breakaway province 

“I’ve got a unique insight in this. I get the classified briefing. Not all these members do,” McCaul said. “This is vitally important for our national security.” 

The bill provides more than $52 billion in grants and other incentives for the semiconductor industry as well as a 25% tax credit for those companies that invest in chip plants in the U.S. It calls for increased spending on various research programs that would total about $200 billion over 10 years, according to the Congressional Budget Office. 

The CBO also projected that the bill would increase deficits by about $79 billion over the coming decade. 

Senate health, climate package

A late development in the Senate — progress announced Wednesday night by Democrats on a $739 billion health and climate change package — threatened to make it harder for supporters to get the semiconductor bill over the finish line, based on concerns about government spending that GOP lawmakers said would fuel inflation. 

Representative Frank Lucas, an Oklahoma Republican, said he was “disgusted” by the turn of events. 

Despite bipartisan support for the research initiatives, “regrettably, and it’s more regrettably than you can possibly imagine, I will not be casting my vote for the CHIPS and Science Act today,” Lucas said. 

Representative Kevin McCarthy, the Republican leader in the House, likened the bill’s spending to “corporate welfare to be handed out to whoever President Biden wants.” 

Leading into the vote, it was unclear whether any House Democrats would join with Senator Bernie Sanders, a Vermont independent, in voting against the bill; in the end, none did. 

Democrats urged to step up

Commerce Secretary Gina Raimondo talked to several of the most progressive members of the Democratic caucus in a meeting before the vote, emphasizing that the proposal was a critical part of the president’s agenda and that Democrats needed to step up for him at this important moment. 

Some Republicans criticized the bill as not tough enough on China, and GOP leaders emphasized that point in recommending a “no” vote. Their guidance acknowledged the threat China poses to supply chains in the U.S. but said the package “will not effectively address that important challenge.” 

But, as McCaul pointed out, China opposed the measure and worked against it. The bill includes a provision that prohibits any semiconductor company receiving financial help through the bill from supporting the manufacture of advanced chips in China. 

Zhao Lijian, a Chinese Foreign Ministry spokesman, commenting before the House vote, said the U.S. “should not put in place obstacles for normal science, technology and people-to-people exchanges and cooperation” and “still less should it take away or undermine China’s legitimate rights to development.”

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Twitter Accepts Oct. 17 Trial but Is Concerned Musk Will Try to Delay

 Twitter Inc. does not object to Elon Musk’s proposal to start a trial on October 17 over Musk’s bid to walk away from his $44 billion acquisition deal but the social media company wants a commitment to complete the trial in five days, Twitter said in a court filing on Wednesday. 

Musk has said he needs time to complete a thorough investigation of what he says is Twitter’s misrepresentation of fake accounts, which he said breached their deal terms. 

He originally sought a February trial, but on Tuesday proposed an October 17 trial after a judge ruled the proceeding was to start in three months. 

Twitter has called the fake accounts a distraction and pushed for the trial to hold Musk to the deal to start as soon as possible, arguing that delay damages its business. It said in its court filing that Musk had offered no assurance a trial would be completed in five days, as ordered by the judge, Kathaleen McCormick of the Delaware Court of Chancery. 

“Twitter sought that commitment because it believes Musk’s objective remains to delay trial, render impracticable the Court’s expedition order, and thus avoid adjudication of his contractual obligations,” said the Twitter filing. 

Attorneys for Musk, the world’s richest person and chief executive of electric car maker Tesla Inc, did not respond to requests for comment. 

Twitter also dismissed Musk’s claims that the company was dragging its feet in responding to his demands for documents. 

Twitter said Musk is the one holding up the process by refusing to answer the company’s complaint, which it said would clarify the issues and any counterclaims he may assert. 

Shares of Twitter closed up 1.3% at $39.85 on Wednesday. 

Musk agreed to acquire the company for $54.20 a share. 

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Meta Posts First Revenue Drop as Inflation Throttles Ad Sales

Meta Platforms Inc. issued a gloomy forecast after recording its first ever quarterly drop in revenue Wednesday, with recession fears and competitive pressures weighing on its digital ads sales. 

Shares of the Menlo Park, California-based company were down about 4.6% in extended trading. 

The company said it expected third-quarter revenue to be in the range of $26 billion to $28.5 billion, which would be a second consecutive year-over-year drop. Analysts were expecting $30.52 billion, according to IBES data from Refinitiv. 

Total revenue, which consists almost entirely of ad sales, fell 1% to $28.8 billion in the second quarter ended June 30, from $29.1 billion last year. The figure slightly missed Wall Street’s projections of $28.9 billion, according to Refinitiv. 

The company, which operates the world’s largest social media platform, reported mixed results for user growth. 

Monthly active users on flagship social network Facebook came in slightly under analyst expectations at 2.93 billion in the second quarter, an increase of 1% year over year, while daily active users handily beat estimates at 1.97 billion. 

Like many global companies, Meta is facing some revenue pressure from the strong dollar, as sales in foreign currencies amount to less in dollar terms. Meta said it expected a 6% revenue growth headwind in the third quarter, based on current exchange rates. 

Still, the Meta results also suggest that fortunes in online ads sales may be diverging between search and social media players, with the latter affected more severely as ad buyers reel in spending. 

Alphabet Inc., the world’s largest digital ad platform, reported a rise in quarterly revenue on Tuesday, with sales from its biggest moneymaker, Google search, topping investor expectations. 

Snap Inc. and Twitter both missed sales expectations last week and warned of an ad market slowdown in the coming quarters, sparking a broad sell-off across the sector. 

On top of economic pressures, Meta’s core business is also experiencing unique strain as it competes with short video app TikTok for users’ time and adjusts its ads business to privacy controls rolled out by Apple Inc. last year. 

The company is simultaneously carrying out several expensive overhauls as a result, revamping its core apps and boosting its ad targeting with AI, while also investing heavily in a longer-term bet on “metaverse” hardware and software. 

Meta executives told investors they were making progress in replacing ad dollars lost as a result of the Apple changes but said it was being offset by the economic slowdown. 

They added that Reels, a short video product Meta is increasingly inserting into users’ feeds to compete with TikTok, was now generating over $1 billion annually in revenue. 

However, Reels cannibalizes more profitable content that users could otherwise see and will continue to be a headwind on profits through 2022 before eventually boosting income, executives told analysts on Wednesday. 

“They are being greatly affected by everything,” Bokeh Capital Partners’ Kim Forrest said, referring to the economic slowdown as well as competition from TikTok and Apple.  

“Meta has a problem because they’re chasing TikTok and if the Kardashians are talking about how they don’t like Instagram … Meta should really pay attention to that.” 

On Monday, two of Instagram’s biggest users, Kim Kardashian and Kylie Jenner, shared a meme imploring the company to abandon its shift to TikTok-style content suggestions and “make Instagram Instagram again.” 

Not persuaded

CEO Mark Zuckerberg did not appear to be swayed, however. 

About 15% of content on Facebook and Instagram is currently recommended by AI from accounts users do not actively follow, and that percentage will double by the end of 2023, he told investors on the call. 

For now, at least, the metaverse part of Meta’s business remains largely theoretical. In the second quarter, Meta reported $218 million in non-ad revenue, which includes payments fees and sales of devices like its Quest virtual reality headsets, down from $497 million last year. 

Its Reality Labs unit, which is responsible for developing metaverse-oriented technology like the VR headsets, reported sales of $452 million, down from $695 million in the first quarter. 

Although Meta has recently slowed investments as cost pressures increased, executives reassured investors it was still on track to release a mixed-reality headset called Project Cambria later this year, focused on professionals. 

Meta broke out the Reality Labs segment in its results for the first time earlier this year, when it revealed the unit had lost $10.2 billion in 2021. 

Its second-quarter operating profit margin fell to 29% from 43% as costs rose sharply and revenue dipped. 

In November, Chief Financial Officer David Wehner will become Meta’s first chief strategy officer. Susan Li, Meta’s current vice president of finance, will become CFO.

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Community Solar Powers New York City’s Green Grid

Located on the rooftops of commercial skyscrapers, apartment buildings and warehouses, micro solar plants are starting to play a larger role in America’s quest for a green electrical grid. Aron Ranen reports from New York City.

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US Senate Advances Bill to Boost Microchip Production

The U.S. Senate has passed a $280 billion initiative that would boost domestic production of microchips and provide support for a key industry that competes with overseas countries including China. VOA’s Congressional Correspondent Katherine Gypson reports.

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US Senate Votes to Advance Sweeping Semiconductor Industry Bill

The U.S. Senate voted 64-32 on Tuesday to advance legislation to dramatically boost U.S. semiconductor manufacturing in a bid to make the domestic industry more competitive with China.

The legislation provides about $52 billion in government subsidies for U.S. semiconductor production as well as an investment tax credit for chip plants estimated to be worth $24 billion.

The Senate is expected to vote on final passage in coming days and the U.S. House could follow suit as soon as later this week.

President Joe Biden and others have cast the issue in national security terms, saying it is essential to ensure U.S. production of chips that are crucial to a wide range of consumer goods and military equipment.

Commerce Secretary Gina Raimondo called the vote “a symbol of the strong bipartisan coalition working to build more chips in America. These chips keep our economy strong and our country safe.”

The bill aims to ease a persistent shortage that has dented production in industries including automobiles, consumer electronics, medical equipment and high-tech weapons, forcing some manufacturers to scale back production. Auto production has been especially hit hard.

“The pandemic made clear with unforgiving clarity how America’s chip shortage was creating a crisis,” the Senate’s Democratic majority leader, Chuck Schumer said before the vote.

The Semiconductor Industry Association said the vote is a “vital step toward enactment of legislation that will strengthen American chip production and innovation, economic growth and job creation, and national security.”

Biden pushed hard for the bill, which has been in the works for well over a year, with a version passing the Senate in June 2021 but stalling in the House. This frustrated lawmakers from both parties who view competition with China and global supply chain issues as top priorities.

Critics like Senator Bernie Sanders have called the measure a “blank check” to highly profitable chips companies.

Biden met virtually on Monday with the chief executives of Lockheed Martin Corp, Medtronic and Cummins Inc along with labor leaders as part of the administration’s push for the legislation.

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‘Goodfellas,’ ‘Law & Order’ Actor Paul Sorvino Dies at 83

Paul Sorvino, an imposing actor who specialized in playing crooks and cops like Paulie Cicero in “Goodfellas” and the NYPD sergeant Phil Cerretta on “Law & Order,” has died. He was 83.

His publicist Roger Neal said he died Monday morning in Indiana of natural causes.

“Our hearts are broken, there will never be another Paul Sorvino, he was the love of my life, and one of the greatest performers to ever grace the screen and stage,” his wife, Dee Dee Sorvino, said in a statement.

In over 50 years in the entertainment business, Sorvino was a mainstay in films and television, playing an Italian American communist in Warren Beatty’s “Reds,” Henry Kissinger in Oliver Stone’s “Nixon” and mob boss Eddie Valentine in “The Rocketeer.” He would often say that while he might be best known for playing gangsters, his real passions were poetry, painting and opera.

Born in Brooklyn in 1939 to a mother who taught piano and father who was a foreman at a robe factory, Sorvino was musically inclined from a young age and attended the American Musical and Dramatic Academy in New York where he fell for the theater. He made his Broadway debut in 1964 in “Bajour” and his film debut in Carl Reiner’s “Where’s Poppa?” in 1970.

With his 6-foot-4-inch stature, Sorvino made an impactful presence no matter the medium. In the 1970s, he acted alongside Al Pacino in “The Panic in Needle Park” and with James Caan in “The Gambler,” reteamed with Reiner in “Oh, God!” and was among the ensemble in William Friedkin’s bank robbery comedy “The Brink’s Job.” In John G. Avildsen’s “Rocky” follow-up “Slow Dancing in the Big City,” Sorvino got to play a romantic lead and use his dance training opposite professional ballerina Anne Ditchburn.

He was especially prolific in the 1990s, kicking off the decade playing Lips in Beatty’s “Dick Tracy” and Paul Cicero in Martin Scorsese’s “Goodfellas,” who was based on the real-life mobster Paul Vario, and 31 episodes on Dick Wolf’s “Law & Order.” He followed those with roles in “The Rocketeer,” “The Firm,” “Nixon,” which got him a Screen Actors Guild Award nomination, and Baz Luhrmann’s “Romeo + Juliet” as Juliet’s father, Fulgencio Capulet.

Beatty would turn to Sorvino often, enlisting him again for his political satire “Bulworth,” which came out in 1998, and his 2016 Hollywood love letter “Rules Don’t Apply.” He also appeared in James Gray’s “The Immigrant.”

Sorvino had three children from his first marriage, including Academy Award-winning actor Mira Sorvino. He also directed and starred in a film written by his daughter Amanda Sorvino and featuring his son Michael Sorvino.

When he learned that Mira Sorvino had been among the women allegedly sexually harassed and blacklisted by Harvey Weinstein in the midst of the #MeToo reckoning, Sorvino told TMZ that if he had known, Weinstein “would not be walking. He’d be in a wheelchair.”

He was proud of his daughter and cried when she won the best supporting actress Oscar for “Mighty Aphrodite” in 1996. He told the Los Angeles Times that night that he didn’t have the words to express how he felt.

“They don’t exist in any language that I’ve ever heard — well, maybe Italian,” he said.

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Britain to Host 2023 Eurovision Song Contest on Ukraine’s Behalf 

Britain will host next year’s Eurovision Song Contest on behalf of winners Ukraine due to the ongoing conflict there, the competition’s organizers said on Monday.

While decades-long tradition dictates that the winner of the contest gets to host it the following year, the European Broadcasting Union (EBU) had said safety and security reasons meant runners-up Britain were instead invited to host.

The BBC will now stage the event, which normally draws a television audience of close to 200 million and was last held in Britain in 1998. Ukraine will automatically qualify to the grand final of the competition, the EBU said.

“It is a matter of great regret that our colleagues and friends in Ukraine are not able to host the 2023 Eurovision Song Contest,” BBC Director-General Tim Davie said in a statement.

“The BBC is committed to making the event a true reflection of Ukrainian culture alongside showcasing the diversity of British music and creativity.”

British Prime Minister Boris Johnson said last month he believed Ukraine could and should host the 2023 competition.

Johnson said on Twitter he had agreed last week with Ukrainian President Volodymyr Zelenskyy that “wherever Eurovision 2023 is held, it must celebrate the country and people of Ukraine.”

“As we are now hosts, the UK will honor that pledge directly — and put on a fantastic contest on behalf of our Ukrainian friends,” Johnson, who has been a vocal supporter of Ukraine, added.

Britain’s entry to this year’s Eurovision contest in Italy in May came second behind Ukraine’s Kalush Orchestra, which rode a wave of public support to claim an emotional victory.

The BBC said it would now begin the process of finding a city to host the event.

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Diana Kennedy, Food Writer Devoted to Mexico, Dies at 99

Diana Kennedy, a tart-tongued British food writer devoted to Mexican cuisine, died Sunday. She was 99. 

Kennedy spent much of her life learning and preserving the traditional cooking and ingredients of her adopted home, a mission that even in her 80s had her driving hundreds of miles across her Mexico in a rattling truck as she searched remote villages for elusive recipes. 

Her nearly dozen cookbooks, including Oaxaca al Gusto, which won the 2011 James Beard Award for cookbook of the year, reflect a lifetime of groundbreaking culinary contributions and her effort to collect vanishing culinary traditions, a mission that began long before the rest of the culinary world was giving Mexican cooking the respect that she felt it was due. 

Her long-time friend Concepción Guadalupe Garza Rodríguez said that Kennedy died peacefully shortly before dawn Sunday at her home in Zitacuaro, about 160 kilometers west of Mexico City. 

“Mexico is very grateful for her,” Garza Rodríguez said. Kennedy had had lunch at a local hotel on March 3 for her birthday, but during the past five weeks had mostly stayed in her room. Garza Rodríguez visited Kennedy last week and said she cried when they parted. 

Mexico’s Culture Ministry said via Twitter Sunday that Kennedy’s “life was dedicated to discovering, compiling and preserving the richness of Mexican cuisine.” 

“Diana understood, as few do, that the conservation of nature is key to continue obtaining the ingredients that make it possible to keep creating the delicious dishes that characterize our cuisine,” the ministry said. 

Her first cookbook, “The Cuisines of Mexico,” was written during long hours with home cooks across Mexico. It established Kennedy as the foremost authority on traditional Mexican cooking and remains the seminal work on the subject even four decades later. She described it as a gastronomy that humbled her, and she credited those — usually women — who shared their recipes with her. 

“Cooking teaches you that you’re not always in control,” she had said. “Cooking is life’s biggest comeuppance. Ingredients can fool you.” 

She received the equivalent of knighthood in Mexico with the Congressional Order of the Aztec Eagle award for documenting and preserving regional Mexican cuisines. The United Kingdom also has honored her, awarding her a Member of the British Empire award for furthering cultural relations with Mexico. 

‘Good food, whole food’

Kennedy was born with an instinctive curiosity and love of food. She grew up in the United Kingdom eating what she called “good food, whole food,” if not a lot of food. During World War II, she was assigned to the Women Timber Corps, where food was simple and sometimes sparse — homemade bread, fresh cream, scones and berries on good days, nettle soup or buttered green beans when rations were lean. 

These meals awakened in Kennedy an appreciation of flavor and texture that would last a lifetime. 

She met her husband, Paul Kennedy, a New York Times correspondent in Haiti. He was on assignment in Haiti, she was traveling there. They fell in love and in 1957 she joined him in Mexico, where he was assigned. 

‘New, exciting, and exotic’

A series of Mexican maids, as well as aunts, mothers and grandmothers of her new friends, gave Diana Kennedy her first Mexican cooking lessons — grinding corn for tamales, cooking rabbit in adobo. While her husband wrote about insurrections and revolutions, Kennedy explored a land that was, for her, “new, exciting and exotic,” sampling unique fruits, vegetables and herbs of various regions. 

The couple moved to New York in 1966 when Paul Kennedy was dying of cancer. 

Two years later, at the urging of New York Times food editor Craig Claiborne, she taught her first Mexican cooking class, hunting out ingredients in the Northeast to reproduce the bursting flavors of Mexico. Soon she was spending more of her time back in Mexico, establishing a retreat there that still serves as her home in the country. 

She was known for her sharp-tongued commentary, even as her pioneering work helped turn Mexico into a culinary mecca for foodies and the world’s top chefs, and transformed a cuisine long dismissed as tortillas suffocated in heavy sauces, cheeses and sour cream. 

She once told Jose Andres, James Beard Award winning chef and proprietor of an acclaimed Mexican restaurant, that his tamales were “bloody awful.” 

She worried that famous chefs, who flocked to Mexico in recent years to study and experiment with the purity of the flora, fauna and flavors, were mixing the wrong ingredients. 

“Many of them are using it as a novelty and do not know the things that go together,” she said. “If you are going to play around with ingredients, exotic ingredients, you’ve got to know how to treat them.” 

Kennedy was fiercely private and guarded about who she let into her sustainable Mexican retreat near the city of Zitacuaro in the conflicted western state of Michoacan. No one was welcome unannounced. Cell phones were turned off and computers were kept in a writing studio. Her companions were her paid staff, who treated her like a dear friend, and several beloved — if somewhat fierce — dogs. 

In 2019, the documentary “Diana Kennedy: Nothing Fancy,” showed a still feisty Kennedy relishing in the production of her garden and driving the bumpy roads of Zitacuaro. 

In her later years, Kennedy had said she wanted to slow down, but couldn’t. 

“There are so many more recipes out there, handed down mother to daughter that are going to be lost. There are seeds and herbs and roots that could disappear. There is absolutely so much more that needs to be done!” she said

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Semiconductor Bill Unites US Politicians From Left, Right — in Opposition

A bill to boost semiconductor production in the United States has managed to do nearly the unthinkable — unite the democratic socialist Sen. Bernie Sanders and the fiscally conservative right.

The bill making its way through the Senate is a top priority of the Biden administration. It would add about $79 billion to the deficit over 10 years, mostly as a result of new grants and tax breaks that would subsidize the cost that computer chip manufacturers incur when building or expanding chip plants in the United States.

Supporters say that countries around the world are spending billions of dollars to lure chipmakers. The U.S. must do the same or risk losing a secure supply of the semiconductors that power the nation’s automobiles, computers, appliances and some of the military’s most advanced weapons systems.

Sanders and a wide range of conservative lawmakers, think tanks and media outlets have a different take. To them, it’s “corporate welfare.” It’s just the latest example of how spending taxpayer dollars to help the private sector can scramble the usual partisan lines, creating allies on the left and right who agree on little else.

Sanders said he doesn’t hear from people about the need to help the semiconductor industry. Voters talk to him about climate change, gun safety, preserving a woman’s right to an abortion and boosting Social Security benefits, to name just a few.

“Not too many people that I can recall — I have been all over this country — say: ‘Bernie, you go back there and you get the job done, and you give enormously profitable corporations, which pay outrageous compensation packages to their CEOs, billions and billions of dollars in corporate welfare,'” Sanders said.

Sanders voted against the original semiconductor and research bill that passed the Senate last year. He was the only senator who caucuses with the Democrats to oppose the measure, joining with 31 Republicans.

While Sanders would like to see the spending directed elsewhere, several Republican senators just want the spending stopped, period. Sen. Mike Lee, a Republican, said the spending would help fuel inflation that is hurting the poor and middle class.

“The poorer you are, the more you suffer. Even people well-entrenched in the middle class get gouged considerably. Why we would want to take money away from them and give it to the wealthy is beyond my ability to fathom,” Lee said.

Conservative mainstays such as The Wall Street Journal’s editorial board, the Heritage Foundation and FreedomWorks have also come out against the bill.

“Giving taxpayer money away to rich corporations is not competing with China,” said Walter Lohman, director of the Heritage Foundation’s Asian Studies Center.

The opposition from the far left and the far right means that Senate Democratic Majority Leader Chuck Schumer, and fellow Democrat, House Speaker Nancy Pelosi, will need help from Republicans to get a bill over the finish line. Support from at least 11 Republican senators will be needed to overcome a filibuster. A final vote on the bill is expected in the coming week.

Republican Sen. Mitt Romney is among the likely Republican supporters. Asked about the Sanders’ argument against the bill, Romney said that when other countries subsidize the manufacturing of high technology chips, the U.S. must join the club.

“If you don’t play like they play, then you are not going to be manufacturing high technology chips, and they are essential for our national defense as well as our economy,” Romney said.

The most common reason that lawmakers give for subsidizing the semiconductor industry is the risk to national security from relying on foreign suppliers, particularly after the supply chain problems of the pandemic. Nearly four-fifths of global fabrication capacity is in Asia, according to the Congressional Research Service, broken down by South Korea at 28%, Taiwan at 22%, Japan, 16%, and China, 12%.

“I wish you didn’t have to do this, to be very honest, but France, Germany, Singapore, Japan, all of these other countries are providing incentives for CHIP companies to build there,” Commerce Secretary Gina Raimondo said Sunday on CBS’s “Face the Nation.”

“We cannot afford to be in this vulnerable position. We need to be able to protect ourselves,” she said.

The window for passing the bill through the House is narrow if some progressives join with Sanders and if most Republicans line up in opposition based on fiscal concerns. The White House says the bill needs to pass by the end of the month because companies are making decisions now about where to build.

Two key congressional groups, the Problem Solvers caucus and the New Democrat Coalition, have endorsed the measure in recent days,

The Problem Solvers caucus is made up of members from both parties. Rep. Brian Fitzpatrick of Pennsylvania, the group’s Republican co-chair, said Intel Corp. wants to build its chip capacity in the United States, but much of that capacity will go to Europe if Congress doesn’t pass the bill.

Rep. Derek Kilmer, a Democrat, said he believes the legislation checks a lot of boxes for his constituents, including on the front-burner issue of the day, inflation.

“This is about reducing inflation. If you look at inflation, one-third of the inflation in the last quarter was automobiles, and it’s because there’s a shortage of chips,” Kilmer said. “So this is about, one, making sure that we’re making things in the United States, and two, about reducing costs.”

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Tomorrow’s ‘Top Gun’ Might Have Drone Wingman, Use AI

Maverick’s next wingman could be a drone.

In the movies, fighter pilots are depicted as highly trained military aviators with the skills and experience to defeat adversaries in thrilling aerial dogfights.

New technologies, though, are set to redefine what it means to be a “Top Gun,” as algorithms, data and machines take on a bigger role in the cockpit — changes hinted at in “Top Gun: Maverick.”

“A lot of people talk about, you know, the way of the future, possibly taking the pilot out of the aircraft,” said 1st Lt. Walker Gall, an F-35 pilot with the U.S. 48th Fighter Wing based at RAF Lakenheath in England. “That’s definitely not something that any of us look forward to.”

“I’d like to keep my job as long as possible, but I mean, it’s hard to argue with newer and newer technology,” he said. “And if that’s the way of the future, that’s what it is. But I’m just here to enjoy it while I can.”

The future for fighter pilots was on display this week at the Farnborough International Airshow near London, one of the world’s biggest aviation, defense and aerospace expos.

Defense contractors outlined how artificial intelligence and other technologies will be used in the newest warplanes as global military delegations browsed mockups of missiles, drones and fighter jets. At stake are many billions of dollars as countries update military fleets or pump up defense procurement budgets amid rising geopolitical tensions.

The original “Top Gun” movie released in 1986 follows Tom Cruise’s hot-shot Navy pilot, Pete “Maverick” Mitchell, through fighter weapons training school. In the sequel, an aging Maverick, now a test pilot, learns the top secret hypersonic plane he’s working on is being canceled so the funding can be used for a pilotless drone program.

It’s a debate that’s been playing out for years in the real world. Drones have been used extensively in the war between Russia and Ukraine and other modern conflicts, raising the question of just how much need there is for human pilots to fly expensive fighter jets and other aircraft — or whether unmanned aerial vehicles could do the job.

At the Farnborough show, experts said the future of air warfare is likely to be manned and unmanned aircraft working together.

One day, fighter pilots will “have a drone aircraft that’s flying as a loyal wingman” under their control, said Jon Norman, a vice president at Raytheon Technologies Corp.’s missile and defense business.

Norman, a retired U.S. Air Force pilot, said he used to complain about drones controlled from the ground that got in his way when he was flying fighter jets.

The latest communications systems let fighters, drones and other aircraft talk to each other, he said.

Technology has already removed the need for a second person to sit in the backseat to work the radar — a role portrayed in the original “Top Gun” movie by the character Goose.

It will continue to play a bigger role in the cockpit, Raytheon executives said. Artificial intelligence will analyze reams of data from sensors placed on planes, drones, the ground or missiles flying through the air to give pilots in the sky and commanders back at headquarters a better sense of the battlefield.

In future battles, AI might allow a pilot to send an armed drone close to an enemy position “and have them just fire at will,” Norman added.

But it’s too soon to write an epitaph for the pilot.

“If we had had this conversation 20 years ago, almost everyone was certain that some (drones) would be serving in a combat aircraft replacement role. That simply hasn’t happened,” said Richard Aboulafia, managing director at consultancy AeroDynamic Advisory.

Nowadays, he said, drones mainly support manned military aircraft, which “allows them to get out there with a greater combat aircraft punch.”

There was speculation that the F-35 fighter, which went into operation in 2015, would be the last manned fighter jet, said Gareth Jennings, aviation editor at defense intelligence provider Janes. “But no one says that anymore.”

The F-35, built by Lockheed Martin Corp., is a stealthy fighter part of today’s generation of warplanes. There is a next generation of fighter jets in the concept stages offering even more high-tech advances, including potentially pilotless versions, but they won’t arrive before the next decade at the earliest.

Gall, who recently graduated from fighter pilot training school, said the F-35 is easy to fly and that technology would likely make its successors even easier. But he stressed that the fighter pilot’s role would remain intense.

Even if that role isn’t going away anytime soon, the Pentagon is working on transforming it.

The Air Combat Evolution program, run by the Pentagon’s DARPA research agency, is working on incorporating artificial intelligence into warfighting, including designing a plane that can fly itself in a dogfight.

The program has already carried out a live simulation of air combat, pitting a virtual plane piloted by an AI agent against a human pilot. If all goes well, researchers plan to carry out a live dogfight with AI-enabled planes by 2024.

Experts, though, are skeptical pilots will be eliminated from the cockpit in the near future.

“I don’t think we’ll be at the stage of not needing fighter pilots for a few decades yet,” said Jennings, the aviation editor. “Unmanned technology and the public willingness to accept not having a human in the loop are just not there, and won’t be for at least another 30 years or so.”

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Change in Title With Men Working at Disney Dress-Up Shops

When Disney reopens its Bibbidi Bobbidi Boutique shops at resorts in Florida and California next month, the workers who help children dress up as their favorite animated characters will have new, more gender inclusive titles.

That is because men are going to work at the shops for the first time.

The workers will be referred to as Fairy Godmother’s Apprentices instead of Fairy Godmothers-in-Training, as they were called before the shops closed due to the coronavirus pandemic. The decision to allow men to work at the shops was made before the pandemic but hadn’t been implemented before the closures.

The Bibbidi Bobbidi Boutique shops at Walt Disney World in Florida and Disneyland in California are scheduled to reopen at the end of August after being closed for two years, according to a Disney blog post.

Workers at the shops provide hairstyling, makeup, costumes and accessories to help children between ages 3 and 12 transform into their favorite characters.

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Hit Manga Series ‘One Piece’ Celebrates 25th Birthday

A manga series about a treasure-hunting pirate that has captivated millions of fans worldwide celebrates its 25th birthday as the final chapter of the bestselling saga reveals its secrets.

The last instalment of One Piece begins July 25 in Japanese weekly manga magazine Shonen Jump, published by Shueisha, following a one-month pause.

The series has racked up more than 100 volumes and smashed sales records since the first instalment appeared in 1997.

The story revolves around hero Luffy, who hunts for the coveted “One Piece” treasure alongside other pirates.

Author Eiichiro Oda, 47, landed a Guinness World Record for having the most copies published for the same comic book series by a single author — with 490 million produced.

His success has made his creation’s 25th birthday a global event, from the United States to France, the second-largest market for manga and Japanese animation.

The 100th volume of the series came out in France last year with 250,000 copies, a number rivalling works that have won the prestigious Prix Goncourt literature prize.

“I’m going to start showing all the secrets of this world that I’ve kept hidden,” Oda said in a handwritten message posted on Twitter. “It will be fun. Please fasten your seatbelt!”

Chedli Ben Hassine, a content creator who specializes in pop culture, told AFP One Piece has become “not only one of the greatest manga series in the world, but one of the greatest cultural works, all sectors included.”

“What makes this manga so special is above all the plot,” said Ryuji Kochi, president for Europe, the Middle East and Africa at Toei Animation, the Japanese company that has produced the series since 1999.

The One Piece universe includes cultural and geographical references that give it a universal dimension, including ancient Egypt, Venice and medieval Japan.

Engaging characters and modern themes of breakneck industrialization, racism, slavery and geopolitical intrigues add to the appeal of the series.

“By proposing totally different universes, the author never bores the reader,” Benoit Huot, head of manga at publishing company Glenat, told AFP. “You have a fresco, an epic, which lasts an extremely long time and where you can’t say it goes round in circles.”

Although the finale of One Piece promises plenty of twists and turns, the series has not reached a wider audience beyond Japanese comic fans like the global hits Star Wars and Harry Potter.

Japanese culture is far from matching the influence of Western creations backed by a large market and soft power that a cultural machinelike Hollywood can produce on an industrial scale, economist Julien Pillot told AFP.

Producers hope the upcoming release of a Netflix series adapted from the One Piece universe will help it conquer new territory, bringing the story to the global streaming platform’s more than 200 million subscribers.

Pillot said Hollywood has historically struggled to adapt manga series to the big screen, including the aesthetic and commercial flop that was the adaptation of Dragon Ball.

“If Netflix managed to create a product of very high quality, which captures the unique spirit of One Piece, that would be a good start,” he added.

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How China Became Ground Zero for the Auto Chip Shortage

From his small office in Singapore, Kelvin Pang is ready to wager a $23 million payday that the worst of the chip shortage is not over for automakers – at least in China.

Pang has bought 62,000 microcontrollers, chips that help control a range of functions from car engines and transmissions to electric vehicle power systems and charging, which cost the original buyer $23.80 each in Germany.

He’s now looking to sell them to auto suppliers in the Chinese tech hub of Shenzhen for $375 apiece. He says he has turned down offers for $100 each, or $6.2 million for the whole bundle, which is small enough to fit in the back seat of a car and is packed for now in a warehouse in Hong Kong.

“The automakers have to eat,” Pang told Reuters. “We can afford to wait.”

The 58-year-old, who declined to say what he had paid for the microcontrollers (MCUs), makes a living trading excess electronics inventory that would otherwise be scrapped, connecting buyers in China with sellers abroad.

The global chip shortage over the past two years – caused by pandemic supply chaos combined with booming demand – has transformed what had been a high-volume, low-margin trade into one with the potential for wealth-spinning deals, he says.

Automotive chip order times remain long around the world, but brokers like Pang and thousands like him are focusing on China, which has become ground zero for a crunch that the rest of the industry is gradually moving beyond.

Globally, new orders are backed up by an average of about a year, according to a Reuters survey of 100 automotive chips produced by the five leading manufacturers.

To counter the supply squeeze, global automakers like General Motors, Ford and Nissan have moved to secure better access through a playbook that has included negotiating directly with chipmakers, paying more per part and accepting more inventory.

For China though, the outlook is bleaker, according to interviews with more than 20 people involved in the trade from automakers, suppliers and brokers to experts at China’s government-affiliated auto research institute CATARC.

Despite being the world’s largest producer of cars and leader in electric vehicles (EVs), China relies almost entirely on chips imported from Europe, the United States and Taiwan. Supply strains have been compounded by a zero-COVID lockdown in auto hub Shanghai that ended last month.

As a result, the shortage is more acute than elsewhere and threatens to curb the nation’s EV momentum, according to CATARC, the China Automotive Technology and Research Center. A fledgling domestic chipmaking industry is unlikely to be in a position to cope with demand within the next two to three years, it says.

Pang, for his part, sees China’s shortage continuing through 2023 and deems it dangerous to hold inventory after that. The one risk to that view, he says: a sharper economic slowdown that could depress demand earlier.

Forecasts ‘hardly possible’

Computer chips, or semiconductors, are used in the thousands in every conventional and electric vehicle. They help control everything from deploying airbags and automating emergency braking to entertainment systems and navigation.

The Reuters survey conducted in June took a sample of chips, produced by Infineon, Texas Instruments, NXP, STMicroelectronics and Renesas, which perform a diverse range of functions in cars.

New orders via distributors are on hold for an average lead time of 49 weeks – deep into 2023, according to the analysis, which provides a snapshot of the global shortage though not a regional breakdown. Lead times range from six to 198 weeks.

German chipmaker Infineon told Reuters it is “rigorously investing and expanding manufacturing capacities worldwide” but said shortages may last until 2023 for chips outsourced to foundries.

“Since the geopolitical and macroeconomic situation has deteriorated in recent months, reliable assessments regarding the end of the present shortages are hardly possible right now,” Infineon said in a statement.

Taiwan chipmaker United Microelectronics told Reuters it has been able to reallocate some capacity to auto chips due to weaker demand in other segments. “On the whole, it is still challenging for us to meet the aggregate demand from customers,” the company said.

TrendForce analyst Galen Tseng told Reuters that if auto suppliers needed 100 PMIC chips – which regulate voltage from the battery to more than 100 applications in an average car – they were currently only getting around 80.

Urgently seeking chips

The tight supply conditions in China contrast with the improved supply outlook for global automakers. Volkswagen, for example, said in late June it expected chip shortages to ease in the second half of the year.

The chairman of Chinese EV maker Nio, William Li, said last month it was hard to predict which chips would be in short supply. Nio regularly updates its “risky chip list” to avoid shortages of any of the more than 1,000 chips needed to run production.

In late May, Chinese EV maker Xpeng Motors pleaded for chips with an online video featuring a Pokemon toy that had also sold out in China. The bobbing duck-like character waves two signs: “urgently seeking” and “chips.”

“As the car supply chain gradually recovers, this video captures our supply-chain team’s current condition,” Xpeng CEO He Xiaopeng posted on Weibo, saying his company was struggling to secure “cheap chips” needed to build cars.

All roads lead to Shenzhen

The scramble for workarounds has led automakers and suppliers to China’s main chip trading hub of Shenzhen and the “gray market,” brokered supplies legally sold but not authorized by the original manufacturer, according to two people familiar with the trade at a Chinese EV maker and an auto supplier.

The gray market carries risks because chips are sometimes recycled, improperly labeled, or stored in conditions that leave them damaged.

“Brokers are very dangerous,” said Masatsune Yamaji, research director at Gartner, adding that their prices were 10 to 20 times higher. “But in the current situation, many chip buyers need to depend on the brokers because the authorized supply chain cannot support the customers, especially the small customers in automotive or industrial electronics.”

Pang said many Shenzhen brokers were newcomers drawn by the spike in prices but unfamiliar with the technology they were buying and selling. “They only know the part number. I ask them: Do you know what this does in the car? They have no idea.”

While the volume held by brokers is hard to quantify, analysts say it is far from enough to meet demand.

“It’s not like all the chips are somewhere hidden and you just need to bring them to the market,” said Ondrej Burkacky, senior partner at McKinsey.

When supply normalizes, there may be an asset bubble in the inventories of unsold chips sitting in Shenzhen, analysts and brokers cautioned.

“We can’t hold on for too long, but the automakers can’t hold on either,” Pang said.

Chinese self-sufficiency

China, where advanced chip design and manufacturing still lag overseas rivals, is investing to decrease its reliance on foreign chips. But that will not be easy, especially given the stringent requirements for auto-grade chips.

MCUs make up about 30% of the total chip costs in a car, but they are also the hardest category for China to achieve self-sufficiency in, said Li Xudong, senior manager at CATARC, adding that domestic players had only entered the lower end of the market with chips used in air conditioning and seating controls.

“I don’t think the problem can be solved in two to three years,” CATARC chief engineer Huang Yonghe said in May. “We are relying on other countries, with 95% of the wafers imported.”

Chinese EV maker BYD, which has started to design and manufacture IGBT transistor chips, is emerging as a domestic alternative, CATARC’s Li said.

“For a long time, China has seen its inability to be totally independent on chip production as a major security weakness,” said Victor Shih, professor of political science at the University of California, San Diego.

With time, China could build a strong domestic industry as it did when it identified battery production as a national priority, Shih added.

“It led to a lot of waste, a lot of failures, but then it also led to two or three giants that now dominate the global market.”

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US Congress Moves Toward $52 Billion in Subsidies for Semiconductor Firms

The Senate this week took a key step toward passing a bill meant to provide $52 billion in subsidies to the semiconductor industry in the United States, part of an effort that lawmakers have characterized as protecting the country from supply shortages such as those that struck during the coronavirus pandemic.

The bill, called the CHIPS for America Act, also seeks to make the U.S. more competitive with China.

Semiconductors, commonly known as chips, are essential elements of modern manufacturing. They are used in computers, cellphones and automobiles as well as in various other capacities. During the pandemic, chip shortages slowed manufacturing in multiple industries to a crawl.

The legislation would create incentives for semiconductor manufacturers to build chip fabrication plants in the U.S. to bring back domestic production levels, which have fallen from more than one-third of total global capacity three decades ago to less than 12% now.

Discussing the legislation on the Senate floor, Senator Rob Portman, a Republican, said, “It is a plan to make America more competitive with China, and a plan to bring good jobs back to America.”

In a 64-34 procedural vote Tuesday, with more than a dozen Republicans voting with the overwhelming majority of Democrats, the Senate cleared the way for the legislation to come to a vote as soon as this week. The House of Representatives would need to pass the bill — which is still not in its final form — before President Joe Biden could sign it into law.

Making the case

Before the vote Tuesday, Senate Majority Leader Chuck Schumer told his colleagues that the bill “will fight inflation, boost American manufacturing, ease our supply chains and protect American security interests.”

He added: “America will fall behind in so many areas if we don’t pass this bill, and we could very well lose our ranking as the No. 1 economy and innovator in the world if we can’t pass this.”

Senator John Cornyn, the most senior Republican to vote in favor of advancing the bill, used Twitter to make his case ahead of the vote.

“If the US lost access to advanced semiconductors (none made in US) in the first year, GDP could shrink by 3.2 percent and we could lose 2.4 million jobs,” he tweeted. “The GDP loss would 3X larger ($718 B) than the estimated $240 B of US GDP lost in 2021 due to the ongoing chip shortage.”

The money in the bill comes with significant strings attached. Companies accepting the subsidies must agree not to use the funds for to buy back stock, pay shareholder dividends, or expand manufacturing in certain countries identified in the bill. Provisions allow the government to “claw back” the funds if a recipient violates any of the bill’s conditions.

Second try

If the bill advances to the House, it would mark the second time a bipartisan group of senators tried to secure money for the semiconductor industry. Last year, the Senate passed a $250 billion package that included broader research and development funding.

When the House received the bill, it waited nearly a year to pass its own version and made a number of additions that Senate Republicans would not agree to. The bill never advanced.

Now, however, things might be different. In a letter circulated to members of the House Democratic caucus on Wednesday, House Speaker Nancy Pelosi wrote in favor of the bill.

“With this package, the United States returns to its status as a world leader in the manufacturing of semiconductor chips,” Pelosi wrote, noting that the bill would create an estimated 100,000 well-paid government contracting jobs in the industry.

“Doing so is an economic necessity to lower costs for consumers and to win in the 21st Century Economy, as well as a national security imperative as we seek to reduce our dependence on foreign manufacturers,” Pelosi wrote.

Industry reacts

In an email exchange with VOA, Ajit Manocha, president and CEO of Semi, a global industry trade group, said, “We are pleased to see action to reverse the decline in the U.S. share of global semiconductor manufacturing capacity, which has fallen by 50 percent in the last 20 years and is forecast to shrink further.”

“The availability of robust incentives in other countries and the lack of a federal U.S. incentive have been key factors driving the location of more overseas manufacturing facilities,” Manocha added. “If the United States wants to maintain or increase its share of global semiconductor manufacturing capacity, the federal government absolutely needs to get in the game.”

Semiconductor Industry Association President and CEO John Neuffer said in a statement, “The Senate CHIPS Act would greatly strengthen America’s economy, national security, and leadership in the technologies that will determine our future.”

He added, “This is America’s window of opportunity to re-invigorate chip manufacturing, design, and research on U.S. shores, and Congress should seize it before the window slams shut.” 

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