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China’s Micron chipmaker ban ramps up US trade tensions

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China's Micron chipmaker ban ramps up US trade tensions

A move by Beijing to bar US firm Micron Technology Inc from selling memory chips to key domestic industries has ramped up tensions in an ongoing trade spat with Washington and lifted shares of firms that could benefit from the move. 

China’s cyberspace regulator said late on Sunday that Micron, the biggest US memory chipmaker, had failed its network security review and that it would block operators of key infrastructure from buying from the company.

It did not provide details on what risks it had found or what products from the company would be affected.

Analysts said they saw limited direct impact on Micron, as most of its key customers in China are consumer electronics players but warned the move could prompt some companies to rid their supply chains of Micron products due to political risks.

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Beijing’s decision was opposed by Washington but also helped stocks of Micron’s rivals in China and South Korea, which are seen benefiting as mainland firms seek memory products from other sources.

“We firmly oppose restrictions that have no basis in fact,” a spokesperson from the US Commerce Department said in a statement on Sunday.

“This action, along with recent raids and targeting of other American firms, is inconsistent with (China’s) assertions that it is opening its markets and committed to a transparent regulatory framework.”

Tensions between Washington and Beijing have grown in recent months following raids and visits by Chinese authorities to US corporate due diligence firm Mintz Group and management consultancy Bain.

Micron said on Sunday it had received the regulator’s review and looked “forward to continuing to engage in discussions with Chinese authorities.”

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The company is the first US chipmaker to be targeted by Beijing after a series of export controls by Washington on certain American components and chipmaking tools to block them being used to advance China’s military capabilities.

China launched the review in late March amid a dispute over chip technology and worsening relations between Washington and Beijing.

The move also comes shortly after Group of Seven nations agreed to “de-risk, not decouple” economic engagement with China and as US President Joe Biden called for an “open hotline” between Washington and Beijing.

The US Commerce Department said it would speak directly with authorities in Beijing to clarify their actions.

“We also will engage with key allies and partners to ensure we are closely coordinated to address distortions of the memory chip market caused by China’s actions,” the department said.

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While the Chinese statement and state media said the Micron decision needed to be seen as an individual case in the context of national security concerns, not geopolitics, prominent Chinese commentator Hu Xijin struck a different note.

“Washington itself encourages US companies to do things that endanger China’s national security, so it suspects that Chinese companies are doing the same,” the former editor-in-chief of nationalist state tabloid Global Times tweeted. “The whole world should be wary of the US.”

China’s announcement on its Micron review helped boost shares in some local chipmaking-related firms on Monday, as state media reported that domestic players could benefit from the move.

Shares in companies including Gigadevice Semiconductors, Ingenic Semiconductor, Shenzhen Kaifa technology opened up between 3% and 8% before paring gains.

Micron’s major rivals also saw their shares gain, with South Korea’s Samsung Electronics and SK Hynix up 0.9% and 2.1%, respectively. They trimmed gains later and closed up 0.2% and 0.9%, as analysts expect limited impact on Micron.

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Both Samsung and SK Hynix had no comment.

“Since Micron’s DRAM and NAND products are much less in servers, we believe most of its revenue in China is not generated from telcos and the government. Therefore, the ultimate impact on Micron will be quite limited,” Jefferies said in a note.

Micron generated $5.2 billion of revenue from China including $1.7 billion from Hong Kong last year, about 16% of its total revenue, according to Jefferies.

Bernstein said a 2% hit to sales was the most realistic estimate given Micron’s exposure to the enterprise and cloud server segment is relatively small.

Beijing has broadly defined industries it considers “critical” as ones such as public communication and transport but has not specified just what type of business these apply to.

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China, the world’s biggest semiconductor buyer, has gradually reduced its reliance on foreign-made chips in a multi-year campaign to boost its self-sufficiency.

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Plea seeking restoration of ‘X’ adjourned till April 2

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Plea seeking restoration of 'X' adjourned till April 2

 Lahore High Court has adjourned the hearing of miscellaneous application seeking restoration of X (formerly Twitter) till April 21

LHC’s Justice Asim Hafeez heard the petition of Advocate Huzaifa Naeem filed for restoration of social media app X.

During the hearing Justice Asim Hafeez inquired about the petition and the petitioner stated that Pakistan Telecommunication Authority (PTA) has made impossible for public to access the micro-blogging site X.

The court suggested a solution referring to a minister who has suggested to access the platform with VPN.

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The petitioner stressed for a long-term effective solution, replied that “if police say to avoid a certain route as dacoit rule there, it is not a solution.”

The petition requested to court to declare the X outage as illegal and direct opposition to ensure the public access of X. Court has adjourned the petition for hearing till April 2.

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Samsung Galaxy to launch AI features in other devices as well on March 28

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Samsung Galaxy to launch AI features in other devices as well on March 28

Samsung Galaxy AI features will be introduced into other devices as well after on the acclaimed Galaxy S24 series.

Starting March 28, One UI 6.1 will begin rolling out across the Galaxy S23 series, S23 FE, Z Fold5, Z Flip55, and Galaxy Tab S9 Ultra, Tab S9+ and Tab S9 WiFi versions beginning this week.

In the US, Samsung Galaxy S24 users are embracing several innovative features that have revolutionized their smartphone experience.

One standout feature is Circle to Search with Google, which has become immensely popular among users. This feature allows users to search for information quickly by simply circling items on their screens, eliminating the need to switch between apps.

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Live Translate has been a game-changer for users, facilitating seamless communication by providing real-time voice and live caption translations during phone calls. This feature helps users overcome language barriers, ensuring smooth and effective communication.

Samsung’s Generative Edit tool has also garnered significant attention, offering users powerful AI-driven photo editing capabilities. This tool allows users to easily adjust and enhance their favorite pictures by resizing or filling in backgrounds after removing unwanted objects from the frame.

Another highly utilized feature is Chat Assist, integrated into the Samsung Keyboard. This feature provides users with translation, writing style suggestions, and spelling and grammar corrections, enhancing their communication experience across various apps.

These innovative AI features are enhancing the functionality and usability of Samsung Galaxy S24 smartphones, providing users with convenient and efficient ways to interact with their devices and communicate with others. 

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Amazon loses court fight to suspend EU tech rules’ ad clause

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Amazon loses court fight to suspend EU tech rules' ad clause

Amazon (AMZN.O) on Wednesday lost its fight to suspend a requirement regarding its online advertising under EU tech rules after Europe’s top court backed EU regulators, saying EU interests outweigh the U.S. online retailer’s material interests.

Under the Digital Services Act (DSA) which kicked in last year, Amazon was designated as a very large online platform subject to tough rules to tackle illegal and harmful content on its platform.

The company subsequently challenged a DSA requirement to make publicly available a repository containing detailed information on its online advertising and also asked for an interim measure until the court rules on the case.

A lower tribunal in September agreed to its request for an interim measure to suspend the contested obligation, which prompted the European Commission to turn to Europe’s top court.

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The Luxembourg-based Court of Justice of the European Union (CJEU) set aside the suspension order and dismissed Aamzon’s application for an interim measure.

The judge said that Amazon’s argument that the obligation unlawfully limits its fundamental rights to respect for private life and the freedom to conduct a business was not irrelevant.

He also said that without a suspension, it was likely that Amazon would suffer serious and irreparable harm before any judgment annulling the Commission’s decision.

However, he said a suspension could have a detrimental impact on the objectives of the DSA.

“Suspension would lead to a delay, potentially for several years, in the full achievement of the objectives of the Regulation on a Single Market for Digital Services and therefore potentially allow an online environment threatening fundamental rights to persist or develop,” the judge said.

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“The interests defended by the EU legislature prevail, in the present case, over Amazon’s material interests, with the result that the balancing of interests weighs in favour of rejecting the request for suspension.”

Amazon said: “We are disappointed with this decision, and maintain that Amazon doesn’t fit the description of a ‘Very Large Online Platform’ (VLOP) under the DSA, and should not be designated as such.”

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