EUROPEAN UNION
Inflation fight remains ‘key’
In policy recommendations to be given to member states yesterday, seen by Bloomberg News, the European Commission, the bloc’s executive arm, was to tell national governments that “it will take time for price pressures to disappear” so “combating inflation remains a key policy priority in the coming period.” Officials reiterated that fiscal measures taken to aid consumers and businesses through the energy crisis should be phased out this year, and that they should revert to prudent policies for their public finances to ensure long-term debt sustainability. The annual recommendations to capitals around the region differ from last year’s by elevating inflation as a key challenge for governments to help tackle. A turbulent geopolitical context, the ensuing energy crisis and implementation of the EU’s unprecedented 800 billion euros (US$862 billion) recovery fund have been dominant themes since the previous report.
GERMANY
Business outlook sours
The country’s business outlook deteriorated for the first time since October last year, as a struggling manufacturing sector threatens to undermine the recovery of Europe’s biggest economy. An expectations gauge by the Ifo institute slipped to 88.6 this month from 91.7 the previous month, worse than expected by every single economist in a Bloomberg survey. A measure of current conditions also slipped. “The mood in the German economy has taken a significant hit,” Ifo president Clemens Fuest said in a statement yesterday. “The German economy is skeptical about the summer.”
TECHNOLOGY
Apple, Broadcom join forces
Apple Inc on Tuesday announced a multibillion-dollar collaboration with US tech firm Broadcom Inc to make “cutting-edge” components for wirelessly connecting to high-speed 5G telecom networks. The iPhone maker did not specify exactly how many billions of dollars it would put into the Broadcom alliance, but said it is part of a commitment to invest in the US economy. “All of Apple’s products depend on technology engineered and built here in the United States, and we’ll continue to deepen our investments in the US economy because we have an unshakable belief in America’s future,” Apple chief executive Tim Cook said in a statement. The alliance would include designing and manufacturing sophisticated radio frequency components and other “cutting-edge wireless connectivity” parts in the US, Apple said.
UNITED STATES
White House hosts forum
The White House hosted a forum for workers whose employers use automated systems to monitor them, and plans a broader effort to ask Americans what priorities the government should pursue regarding artificial intelligence as President Joe Biden weighs new regulations on emerging workplace technologies. The meeting with White House officials on Tuesday would feature employees from call centers, warehouses, healthcare, gig work and the trucking industry, as the administration seeks to better understand how companies deploy automated technology for worker surveillance. Companies including Amazon.com Inc and Uber Technologies Inc have come under criticism from labor groups who say technologies designed to improve performance and efficiency can push them to accept unsafe working conditions.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
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