The U.S. and European Union Strategize Global Tech Policies

The U.S. and European Union are seeking to establish joint policies that advance cooperation and democratic approaches to trade, technology, and security on both sides of the Atlantic. The second meeting of the U.S.-EU Trade and Technology Council (TTC) — May 15-16 in Saclay, near Paris — emphasized how Washington, Brussels and other free-market democracies should develop a joint response to the challenges presented by dictatorships and their controlled economies. In addition to semiconductor supply chain issues, topics including China’s digital clout, export controls for technology IP and human rights were discussed. Continue reading The U.S. and European Union Strategize Global Tech Policies

Billions of Dollars Are Vaporized in Cryptocurrency Meltdown

The bottom fell out of the cryptocurrency market last week, wiping out more than $300 billion in a sell-off that underscored the risks of the unregulated digital currencies. Bitcoin fell below $27,000, its lowest point since 2020, as part of a larger trend that saw cryptocurrency exchange Coinbase lose half its value. The stablecoin TerraUSD “imploded.” The panic has been described as the biggest reset in cryptocurrencies since Bitcoin fell by 80 percent in 2018. But the current crash is more severe, since far more people and institutions are investing in digital currencies today. Continue reading Billions of Dollars Are Vaporized in Cryptocurrency Meltdown

Apple Reports Record $97 Billion Quarter but Somber Outlook

Apple’s fiscal Q2 was one of the best quarters in its 46 years of business. The company reported record revenue of $97.3 billion, up 9 percent year-over-year, far outperforming analyst expectations of $94 billion. More than $28 billion in operating cash flow and a return of nearly $27 billion to Apple shareholders resulted in the January through March period. But Apple warned that the outlook could dim in the current quarter, with China’s COVID-19 resurgence threatening to slow manufacturing, stymying sales by anywhere from $4 billion to $8 billion in fiscal Q3. Continue reading Apple Reports Record $97 Billion Quarter but Somber Outlook

Lowered Expectations Drive Meta Stock Rise on Q1 Earnings

Meta Platforms’ stock price jumped 18 percent Wednesday on Q1 results that while not great were better than expected. Revenue was up 7 percent, to $27.9 billion, the most listless growth rate since Facebook’s May 2012 IPO. Reality Labs, the division driving the company’s metaverse ambitions, beat analysts’ expectations with revenue of $695 million, but the unit lost about $3 billion. Reality Labs is a large investment in a next-generation platform “comparable in value to the leading mobile platforms today,” Meta CEO Mark Zuckerberg said. Continue reading Lowered Expectations Drive Meta Stock Rise on Q1 Earnings

Snap Adds Users, Boosts Revenue, Posts $360 Million Loss

Snap has grown daily users to 332 million, an 18 percent increase in Q1 according to an earnings report. The January through March period reflects a 38 percent year-over-year revenue increase, but also documents a net loss of $360 million. The deficit — attributed to digital advertising circumstances including Apple’s new privacy policies, the war in Ukraine and the effects of inflation — comes on the heels of Snap’s first-ever quarterly profit in Q4 2021. The Q1 results reflect “underlying momentum” against “a challenging operating environment,” said Snap CEO Evan Spiegel. Continue reading Snap Adds Users, Boosts Revenue, Posts $360 Million Loss

Obama Takes Up Mantle of Social Media Regulatory Oversight

Former President Barack Obama sounded a warning against unregulated Big Tech in a speech last week at Stanford University near Palo Alto, California. Cautioning that the power of social media giants to curate information has “turbocharged” political polarization, Obama said the imbalance of power threatened the very pillars of global democracy itself. “Tech companies need to be more transparent about how they operate,” Obama said. “So much of the conversation around disinformation is focused on what people post. The bigger issue is what content these platforms promote.”  Continue reading Obama Takes Up Mantle of Social Media Regulatory Oversight

Netflix Considers Advertising Model as Subscribers Dip in Q1

Netflix has confirmed it is considering an ad-supported tier. The news follows speculation at SXSW, and coincides with a quarterly subscriber loss, the company’s first in more than a decade. As a result, “revenue growth has slowed considerably,” reads its Q1 shareholder letter, attributing the lag to “relatively high household penetration” that includes a “large number of households sharing accounts.” Combined with a COVID-induced streaming bubble followed by exploding competition and costs, the landscape has changed, and Netflix is contemplating how to change with it. Continue reading Netflix Considers Advertising Model as Subscribers Dip in Q1

TSMC Posts Record Q1 Profits Despite Continuing Shortages

TSMC (Taiwan Semiconductor Manufacturing Company) is reporting first quarter 2022 revenue between $17.6 billion and $18.2 billion, a 35.5 percent increase year-over-year. Compared to Q4 2021, the first quarter results represent a 12.1 percent revenue uptick and 22 percent growth in net income. This, despite ongoing fallout from supply chain shortages that company CEO C.C. Wei says he expects will continue triggering production constraints. Russia’s invasion of Ukraine and the COVID-19 lockdown in Shanghai, where the company has a plant, were cited as the most significant stressors to the company’s semiconductor output. Continue reading TSMC Posts Record Q1 Profits Despite Continuing Shortages

Agencies Warn That Hackers Are Targeting Control Systems

The White House has issued a warning about hackers attempting to disrupt the energy grid and other industrial control systems with “a Swiss Army knife” of custom-coded malicious software. A joint bulletin issued by the FBI, NSA, DHS and Energy Department cautioned businesses to be on the lookout for “advanced persistent threat actors,” or APTAs, a commonly used way to describe state-backed hackers. Specific reference was made to devices from Japanese electronics firm Omron and the French firm Schneider Electric, suppliers of industrial automation equipment. Continue reading Agencies Warn That Hackers Are Targeting Control Systems

China COVID Woes Cause Shutdowns, Supply Chain Impact

The supply chain crunch is about to worsen due to a phased shutdown of Shanghai that began Monday, say recent reports. The coastal city of 26 million people — a seat of international finance and business, and home to the world’s biggest container-shipping port — finds itself grappling with its worst COVID-19 outbreak to date. Authorities have switched from temporary neighborhood lockdowns to a mandatory citywide shutdown in a phased implementation whose stage two runs Friday to Tuesday. China’s biggest chipmaker, however, and an iPhone plant are continuing to operate under strict rules in Shanghai. Continue reading China COVID Woes Cause Shutdowns, Supply Chain Impact

Russia’s Native Tech Star Yandex Collapsing Over Sanctions

Yandex — the giant Russian tech brand involved in everything from search to music streaming and ride-hailing — has been reeling from the effects of economic sanctions and the country’s invasion of Ukraine. Yandex stock, described as “soaring” on its Nasdaq debut in 2011, was in February said to be “in freefall,” having declined to about half of its value. The company has an estimated 67 million users worldwide, including in Michigan, Arizona, Ohio, London and Paris, where partnerships with Uber and Grubhub were followed by forays into robotic food delivery and self-driving cars. Continue reading Russia’s Native Tech Star Yandex Collapsing Over Sanctions

CISA and FBI Warn of Possible Attacks on Satellite Networks

The U.S. government has issued a cybersecurity alert warning of “possible threats” to satellite communication networks and the country’s critical infrastructure. Concerned that recent attacks on European satellite networks could spread to the United States, a joint advisory published last week by the FBI and the Cybersecurity and Infrastructure Security Agency cited CISA’s “Shield’s Up” initiative, which warns that Russia’s invasion of Ukraine could trigger homeland attacks. The alert requests “all organizations significantly lower their threshold for reporting and sharing indications of malicious cyber activity.” Continue reading CISA and FBI Warn of Possible Attacks on Satellite Networks

COVID Surge Triggers Factory Closures in China’s Tech Hubs

A recent COVID-19 surge in China has resulted in the temporary closure of electronics and automobile factories in the manufacturing hubs of Shenzhen and Changchun. In Shenzhen, iPhone supplier Foxconn announced it is halting operations in compliance with local government policy. The city has been placed on lockdown for at least a week, with all inhabitants to undergo three rounds of testing following the discovery of 86 new COVID-19 cases. Recent outbreaks in 28 of China’s 31 provinces have infected more than 15,000 people, primarily with the highly transmissible Omicron variant, according to China’s National Health Commission. Continue reading COVID Surge Triggers Factory Closures in China’s Tech Hubs

Pandemic Prepared Chipmakers for New Scarcity Due to War

Two years of global chip shortages resulting from the COVID-19 pandemic have left the semiconductor industry better prepared for Russia’s invasion of Ukraine. The war has created turmoil in two countries that supply neon gas and palladium, essential ingredients to create processors. One estimate puts the countries’ combined output of semiconductor-grade neon at anywhere from one-quarter to half, while positing Russia has in the past originated as much as a third of the metal palladium. Potential shortages of both materials has raised concern in an industry already struggling to meet demand. Continue reading Pandemic Prepared Chipmakers for New Scarcity Due to War

Russia Invites Patent Theft, Paves the Way for Nationalization

Russia is pushing back against sanctions by encouraging intellectual property theft, declaring that “unfriendly” countries will not be compensated for the use of patented technologies. The government legislative commission also approved measures laying groundwork for the nationalization of property of companies exiting the country. Russian officials are also intimating that some trademark restrictions will be lifted, so as to maintain a presence for brands like McDonald’s that are pulling up stakes. In addition to inventions and trademarks, the Russian measures could affect computer software and other technology. Continue reading Russia Invites Patent Theft, Paves the Way for Nationalization