The United States Commerce Department announced on Tuesday that it plans to award SK Hynix up to $450 million in grants to support the construction of an advanced packaging plant and research facility for AI products in Indiana. SK Hynix, the world’s second-largest memory chip maker, previously announced an investment of approximately $3.87 billion to build the facility, which will include a cutting-edge production line for next-generation high bandwidth memory chips, crucial for AI systems.
In addition to the grants, the Commerce Department plans to provide $500 million in government loans for the SK Hynix project, which is expected to qualify for a 25% investment tax credit. The facility is projected to create 1,000 jobs and address a critical gap in the US semiconductor supply chain. The project is part of a broader effort to enhance US semiconductor manufacturing, supported by a $39 billion subsidy program and $75 billion in government lending authority approved by Congress in August 2022.
Commerce Secretary Gina Raimondo highlighted the significance of securing commitments from all five major semiconductor manufacturers, including TSMC, Intel, Samsung Electronics, Micron, and SK Hynix. Raimondo stated that these commitments would ensure the U. has the most secure and diverse supply chain for advanced semiconductors that power AI technologies. The SK Hynix facility in West Lafayette, Indiana, will play a pivotal role in producing high-bandwidth memory chips essential for training AI systems.
The announcement comes amid increasing global tensions over semiconductor supply chains, with the US expanding chip export controls and firms from China stockpiling high bandwidth memory chips in response to these restrictions. SK Hynix’s CEO, Kwak Noh-Jung, expressed gratitude for the US Commerce Department’s support, emphasizing the company’s excitement about bringing this transformational project to fruition. The initiative follows a previous $75 million award to Absolics, an affiliate of SK Group, for a facility in Georgia to supply advanced materials to the US semiconductor industry.
The next US administration is expected to adopt a ‘constructive’ stance on cryptocurrency regardless of the election outcome, according to Brian Armstrong. The CEO of Coinbase has highlighted the industry’s growing political influence as the November election approaches. Both Republican and Democratic parties have acknowledged the increasing significance of the crypto sector, with major political action committees raising over $230 million to support pro-crypto candidates.
Coinbase, the largest United States crypto exchange, is currently engaged in a legal battle with the SEC over allegations of failing to register as an exchange. The support from Wall Street and corporate figures like Elon Musk has boosted the sector’s mainstream appeal. Recently, Republican candidate Donald Trump pledged to create a ‘stockpile’ of bitcoin, while advisors to Democratic Vice President Kamala Harris have engaged with top crypto companies to improve relations.
A recent Supreme Court ruling overturning the ‘Chevron deference’ doctrine, which limited judicial interpretation of laws, is seen as a positive development for the crypto industry. Coinbase has strengthened its board by adding former US Solicitor General Paul Clement, a key figure in the Chevron ruling case. The shifting political landscape and favourable court rulings are expected to attract new institutional capital to the crypto market. Coinbase’s recent surpassing of Q2 revenue expectations and strategic board expansions further highlight its proactive stance amid these changes.
Coinbase’s second-quarter revenue surpassed Wall Street predictions, fuelled by a revival in trading volumes and positive market sentiment due to regulatory relaxation. That resulted in a 3% rise in the company’s shares. The US Securities and Exchange Commission (SEC) approved an exchange-traded fund (ETF) to track bitcoin and ether prices, resolving a prolonged regulatory conflict and boosting market confidence. CEO Brian Armstrong expressed hope for constructive future regulatory measures.
Despite ongoing disagreements with the SEC over crypto token classifications, the approval of spot bitcoin ETFs by major financial players like BlackRock and Fidelity has bolstered the sector’s credibility. As a result, the total market capitalisation has increased to around $2.36 trillion. Revenue from Coinbase’s subscription and services segment jumped 79% to $599 million, with total revenue doubling to $1.45 billion, exceeding analyst forecasts. The company reported a profit of 14 cents per share, compared to a loss in the previous year.
Why does this matter?
Coinbase’s strong Q2 performance signals a significant recovery and growth in the cryptocurrency market, driven by positive regulatory developments. The SEC’s approval of bitcoin and ether ETFs marks a pivotal moment, potentially attracting more institutional investors and increasing mainstream acceptance of digital assets.
Hundreds of Chinese sellers on Temu have protested against what they describe as excessively high penalties imposed by the platform. Temu, an international online marketplace owned by PDD Holdings, has seen increased competition with rivals like Shein since its launch in September 2022. Merchants claim that new penalties introduced in April can reach up to five times the value of a sale when customers return products, causing significant financial strain.
A garment seller from Guangzhou reported that Temu has not adequately addressed their concerns despite urging vendors to register their fines. That led to a larger protest involving around 400 to 500 merchants from China on 29 July. Protesters shared videos online showing large crowds outside Temu’s headquarters, highlighting the widespread discontent among sellers.
Temu acknowledged the protest, noting that most participants were garment sellers who were also active on Shein. The company emphasised its efforts to resolve disputes and maintain quality standards, though some merchants argue that the penalties drive them out of business. Despite the challenges, Temu claims that most merchants on the platform are flourishing and benefit from increased sales and customer satisfaction.
Many sellers, however, remain in a difficult position. One vendor, facing fines nearly triple her initial estimate, expressed the struggle of balancing penalties with minimal profits. Another merchant, unable to quit due to financial commitments, described the situation as having ‘no way out.’ Temu maintains that while penalties are essential for quality control, they aim to enforce them fairly and resolve disputes effectively.
The Consumer Product Safety Commission (CPSC) of the United States declared that Amazon will be held accountable for selling hazardous third-party products on its platform. It has further asked the company to take steps to inform consumers and ensure that they return or destroy such products. The directive encompasses 400,000 items that violate flammability standards, such as defective carbon monoxide detectors, unsafe hairdryers, and children’s sleepwear. In response, Amazon revealed its intention to contest the order in court.
The US agency stated that ‘Amazon failed to notify the public about these hazardous products and did not take adequate steps to encourage its customers to return or destroy them, thereby leaving consumers at substantial risk of injury’. The CPSC labelled Amazon as a ‘distributor’ of faulty products, as such products are stored and shipped by the company.
This is not a one-off incident for the company as previously, in 2021, the CPSC also sued Amazon, compelling them to recall numerous hazardous products sold on their platform. Subsequently, Amazon was forced to remove most of these items and refunded customers. Nevertheless, Amazon maintained that they provide logistics for independent sellers and are not distributors.
Britain’s competition regulator, the CNMC, has imposed a hefty fine of €413.2 million (US$448 million) on online reservation platform Booking.com. The fine, the largest ever levied by the CNMC, targets Booking.com’s dominant market position in Spain, where it holds a 70% to 90% share. The penalties stem from practices dating back to 2019.
The CNMC found Booking.com to be imposing unfair terms on hotels and stifling competition from other providers. This included a ban on hotels offering lower prices on their own websites compared to Booking.com’s listings, as well as the ability of Booking.com to unilaterally impose price discounts on hotels. Additionally, the platform mandated that hotels resolve disputes in Dutch courts.
Booking Holdings, Booking.com’s parent company, intends to appeal the fine. They argue that the issue falls under the remit of the European Union’s Digital Markets Act and express strong disagreement with the CNMC’s findings. Booking Holdings plans to challenge the decision in Spain’s high court.
The investigation was triggered by complaints lodged in 2021 by the Spanish Association of Hotel Managers and the Madrid Hotel Business Association. Another point of contention is Booking.com’s practice of offering benefits to hotels that generate higher fees, which critics argue unfairly restricts competition from alternative booking services.
The US Commerce Department announced plans to grant Amkor Technology up to $400 million to support the construction of a $2 billion advanced semiconductor packaging facility in Arizona. Once operational, the plant will be the largest of its kind in the US, packaging and testing millions of chips for applications such as autonomous vehicles, 5G/6G, and data centers.
Apple is set to be the first and largest customer, with the chips being produced at a nearby TSMC facility. Advanced packaging is a sophisticated method of integrating multiple chips with various functions into a densely interconnected package. Commerce Secretary Gina Raimondo emphasised that this investment will help meet the growing demand for AI chips.
Raimondo highlighted that the chips Amkor will package are crucial for future technologies that will significantly impact global economic and national security. This move comes amid discussions of aid cuts for US chip manufacturers due to oversubscription of funding requests.
Around 80 countries have agreed on global digital commerce rules, including recognising e-signatures and protections against online fraud. Despite five years of negotiations led by Australia, Japan, and Singapore, the United States did not endorse the final text, citing the need for further work on essential security interests.
The European Union hailed the agreement as ‘historic,’ while Britain called it ‘groundbreaking.’ The agreement commits participants to digitalising customs documents and processes, recognising e-documents and e-signatures, and implementing legal safeguards against online fraud and misleading product claims. It also addresses limiting spam, protecting personal data, and supporting least developed countries.
Although 91 of the World Trade Organization’s 166 members, including China, Canada, and Saudi Arabia, participated in the negotiations, the US and other countries like Brazil, Indonesia, and Turkey expressed reservations. Making the accord a formal WTO agreement may be challenging due to the need for consensus, with India and South Africa particularly critical of deals excluding certain members.
Milan prosecutors are investigating an Italian unit of Amazon for suspected tax evasion. This new inquiry is separate from the recent multi-million euro seizure from another Amazon unit. Earlier this week, Italy’s tax police seized €121 million from Amazon as part of a different investigation into tax fraud and illegal labour practices.
The current investigation in Italy began in 2021 following routine checks by tax police in an area north of Milan. It focuses on tax rules concerning the trading of goods within Italy and internationally, particularly value added taxes and customs duties. The potential size of the tax evasion has not yet been determined.
Over the past few years, Italian tax authorities and tax police in Monza, near Milan, have been conducting checks on Amazon’s accounts in Italy. Amazon has not yet commented on the ongoing investigation.
Authorities are scrutinising Amazon’s compliance with tax regulations as part of their broader efforts to tackle tax evasion. This investigation highlights the increasing focus on multinational companies’ tax practices in Italy.
Turkey is set to launch a $5 billion package to boost annual electric vehicle (EV) production to one million cars. President Tayyip Erdogan announced that the country has paved the way for investments from major EV producers, including a $1 billion production plant by China’s BYD. The initiative aims to establish Turkey as a significant player in the EV market.
In addition to the EV sector, Erdogan revealed plans for a $5 billion investment to build a semiconductor chip factory. This effort is part of a broader strategy to enhance Turkey’s capabilities in high-tech manufacturing. The government also aims to become a regional hub for battery production, with a goal of building an 80 gigawatt-hour capacity by 2030, backed by a $4.5 billion incentive package.
Further support will be provided for renewable energy sectors. Erdogan announced $2.5 billion in grants for solar cell facilities with a capacity of up to 15 gigawatts. Another $1.7 billion has been allocated for manufacturing critical components in the wind energy sector. These initiatives are part of Turkey’s plan to diversify its energy sources and reduce reliance on imports.
Erdogan expects these incentives to attract at least $20 billion in private sector investments. The government will be unveiling further details of these high-tech incentives soon, as it continues to position Turkey as a leading player in various advanced technology industries.
