AT&T and Verizon have confirmed cyberattacks linked to a Chinese hacking group known as “Salt Typhoon,” but assured the public on Saturday that their US networks are now secure. Both companies acknowledged the breaches for the first time, stating they are cooperating with law enforcement and government agencies to address the threat. AT&T disclosed that the attackers targeted a small group of individuals tied to foreign intelligence, while Verizon emphasised that the activities have been contained following extensive remediation efforts.
The attacks, described by US officials as the most extensive telecommunications hack in the nation’s history, reportedly allowed Salt Typhoon operatives to access sensitive network systems, including the ability to geolocate individuals and record phone calls. Authorities have linked the breaches to several telecom firms, with a total of nine entities now confirmed as compromised. In response, the Cybersecurity and Infrastructure Security Agency has urged government officials to transition to encrypted communication methods.
US Senators, including Democrat Ben Ray Luján and Republican Ted Cruz, have expressed alarm over the breach’s scale, calling for stronger safeguards against future intrusions. Meanwhile, Chinese officials have denied the accusations, dismissing them as disinformation and reaffirming their opposition to cyberattacks. Despite assurances from the companies and independent cybersecurity experts, questions remain about how long it will take to fully restore public confidence in the nation’s telecommunications security.
President-elect Donald Trump has called on the US Supreme Court to postpone implementing a law that would ban TikTok or force its sale, arguing for time to seek a political resolution after taking office. The court will hear arguments on the case on 10 January, ahead of a 19 January deadline for TikTok’s Chinese owner, ByteDance, to sell the app or face a US ban.
The move marks a stark shift for Trump, who previously sought to block TikTok in 2020 over national security concerns tied to its Chinese ownership. Trump’s legal team emphasised that his request does not take a stance on the law’s merits but seeks to allow his incoming administration to explore alternatives. Trump has expressed a newfound appreciation for TikTok, citing its role in boosting his campaign visibility.
TikTok, with over 170 million US users, continues to challenge the legislation, asserting that its data and operations affecting US users are fully managed within the country. However, national security concerns persist, with the Justice Department and a coalition of attorneys general urging the Supreme Court to uphold the divest-or-ban mandate. The case highlights the growing debate between free speech advocates and national security interests in regulating digital platforms.
Chinese AI firm DeepSeek has unveiled DeepSeek V3, a groundbreaking open-source model designed for a range of text-based tasks. Released under a permissive licence, the model supports coding, translations, essay writing, and email drafting, offering developers the freedom to modify and deploy it commercially.
In internal benchmarks, DeepSeek V3 outperformed major competitors, including Meta’s Llama 3.1 and OpenAI’s GPT-4o, especially in coding contests and integration tests. The model boasts an impressive 671 billion parameters, significantly exceeding the size of many rivals, which often correlates with higher performance.
DeepSeek-V3!
60 tokens/second (3x faster than V2!) API compatibility intact Fully open-source models & papers 671B MoE parameters 37B activated parameters Trained on 14.8T high-quality tokens
DeepSeek V3 was trained on a dataset of 14.8 trillion tokens and built using a data centre powered by Nvidia H800 GPUs. Remarkably, the model was developed in just two months for a reported $5.5 million—far less than comparable systems. However, its size and resource demands make it less practical without high-end hardware.
Regulatory limitations influence the model’s responses, particularly on politically sensitive topics. DeepSeek, backed by High-Flyer Capital Management, continues to push for advancements in AI, striving to compete with leading global firms despite restrictions on access to cutting-edge GPUs.
US strategies to maintain technological leadership over China include a combination of the CHIPS and Science Act and export controls. Secretary of Commerce Gina Raimondo recently underscored the importance of technological innovation over solely blocking China’s advancements, suggesting that maintaining a competitive edge is essential. The CHIPS Act aims to strengthen the US’s economic security, while export controls are designed to protect critical intellectual property.
Combining these policies may be the most effective way to sustain US leadership. Export controls serve to slow China’s technological progress, complementing the domestic benefits of the CHIPS Act. However, ensuring the effectiveness of export controls demands close coordination with supply chain partners. Non-compliance by any party in the supply chain can compromise these efforts.
Expanding export controls beyond advanced technologies to mature processes presents a significant challenge. Managing compliance across numerous companies and countries raises costs and logistical complexity. Additionally, aligning with countries that share economic interests can reduce these difficulties. Collaborative efforts with strategic partners ensure export controls remain effective and sustainable.
The potential relocation of production from Taiwan to mitigate instability in the Taiwan Strait poses another challenge. Working with regions that complement US production goals, rather than those with conflicting interests, will be critical to achieving long-term success in export control implementation.
China’s semiconductor industry has seen a significant rise in merger and acquisition (M&A) activity in 2024, with 31 deals disclosed so far. Over half were announced after September, signalling a surge in activity during the latter part of the year. Nearly half of these transactions focused on semiconductor materials and analog chips, key areas driving innovation and growth.
Notable companies in the analog chip sector, such as Convert, Halo Microelectronics, BPS, and Novosense, played pivotal roles. For instance, BPS acquired controlling shares in Convenient Power to strengthen its power management chip offerings. This move highlights the growing synergy in product lines for mobile and automotive applications while expanding customer bases and supply chain networks.
Semiconductor materials companies also showed robust activity, with seven deals disclosed. Transactions included upstream silicon wafer manufacturers like Li-on and TCL Zhonghuan, as well as raw material providers such as Grandit. JCET, a major semiconductor packaging firm, made headlines with its acquisition of SanDisk Semiconductor and its subsequent control transfer to China Resources Group.
Digital circuits lagged behind in M&A activity, recording only two transactions. Among these, GigaDevice secured a 70% stake in Xysemi for RMB 580 million. Analysts note the dominance of analog chips and materials in reshaping China’s semiconductor industry.
Vietnam’s new internet law, known as ‘Decree 147,’ came into effect Wednesday, requiring platforms like Facebook and TikTok to verify user identities and share data with authorities upon request. Critics view the move as a crackdown on freedom of expression, with activists warning it will stifle dissent and blur the lines between legal and illegal online activity. Under the rules, tech companies must store verified information alongside users’ names and dates of birth and remove government-designated “illegal” content within 24 hours.
The decree also impacts the booming social commerce sector by allowing only verified accounts to livestream. Additionally, it imposes restrictions on gaming for minors, limiting sessions to one hour and a maximum of 180 minutes daily. Vietnam, with over 65 million Facebook users and a growing gaming population, may see significant disruptions in online behaviour and businesses.
Critics liken the law to China’s tight internet controls. Activists and content creators have expressed fear of persecution, citing recent examples like the 12-year prison sentence for a YouTuber critical of the government. Despite the sweeping measures, some local businesses and gamers remain sceptical about enforcement, suggesting a wait-and-see approach to the decree’s real-world impact.
The Biden administration has initiated a trade investigation targeting Chinese-made legacy semiconductors, which power everyday goods like cars and telecom equipment. This ‘Section 301’ probe aims to address concerns about China’s state-driven expansion in chip manufacturing, which US officials warn could harm American semiconductor producers. Departing President Joe Biden had already imposed a 50% tariff on Chinese semiconductors, set to take effect 1 January, while tightening export controls on advanced AI and memory chips.
Commerce Secretary Gina Raimondo revealed that Chinese legacy chips account for two-thirds of semiconductors in US products, with many companies unaware of their origin—a finding she called alarming, particularly for the defence industry. US Trade Representative Katherine Tai stated that China’s subsidised chip pricing threatens global competition, enabling rapid capacity growth and undercutting market-oriented producers.
China’s commerce ministry has criticised the probe, calling it protectionist and a potential disruptor to global supply chains. Meanwhile, a public hearing on the issue is scheduled for March, with the probe expected to conclude within a year. The investigation follows the COVID-19 pandemic’s impact on semiconductor supply chains, prompting the US efforts to bolster domestic chip production with $52.7 billion in subsidies.
As the Biden administration transitions to President-elect Donald Trump’s leadership in January, this probe may offer Trump an opportunity to escalate tariffs on Chinese imports, echoing the trade practices he implemented during his prior term. Critics, including the US tech industry, have urged officials to approach the investigation collaboratively to avoid further disruption.
China has enacted new regulations asserting state ownership over rare earth materials, critical for semiconductor production, with a rule effective from October 1. Additionally, on December 3, the Ministry of Commerce announced a ban on the export of dual-use items such as gallium, germanium, and antimony to the US. These moves are expected to impact industries reliant on these materials, especially solar cell production and semiconductor manufacturing.
As the world’s largest supplier of rare earths, China has long dominated the market due to its lax environmental regulations, which allow for large-scale extraction and refining. However, with many countries looking to reduce their dependency on China, the long-term effectiveness of these export restrictions may diminish. Nations like the US and Australia are expanding their rare earth production lines, and efforts to recycle rare earth materials are also gaining traction.
Despite these efforts, challenges remain in replicating China’s refining capabilities, as many countries are limited by technical and environmental obstacles. Notably, the US has partnered with Australia’s Lynas Corporation to build a rare earth extraction facility, aiming to strengthen its supply chain.
The future of the rare earth market may shift toward the development of substitute materials, although creating viable replacements is a time-consuming process. In this ongoing battle, China has already secured patents for some high-performance materials that could serve as alternatives, indicating that the competition could soon turn to technological innovation and patent rights.
President-elect Donald Trump hinted at allowing TikTok to continue operating in the US, at least temporarily, citing the platform’s significant role in his presidential campaign. Speaking to conservative supporters in Phoenix, Arizona, Trump shared that his campaign content had garnered billions of views on TikTok, describing it as a “beautiful” success that made him reconsider the app’s future.
TikTok’s parent company, ByteDance, has faced pressure from US lawmakers to divest the app over national security concerns, with allegations that Chinese control of TikTok poses risks to American data. The US Supreme Court is set to decide on the matter, as ByteDance challenges a law that could force divestment. Without a favourable ruling or compliance with the law, TikTok could face a US ban by January 19, just before Trump takes office.
Trump’s openness to TikTok contrasts with bipartisan support for stricter measures against the app. While the Justice Department argues that Chinese ties to TikTok remain a security threat, TikTok counters that its user data and operations are managed within the US, with storage handled by Oracle and moderation decisions made domestically. Despite ongoing legal battles, Trump’s remarks and a recent meeting with TikTok’s CEO suggest he sees potential in maintaining the platform’s presence in the US market.
Democratic Senator Ed Markey and Republican Senator Rand Paul are urging President Joe Biden to extend the January 19 deadline for ByteDance, the China-based owner of TikTok, to sell the app’s US assets or face a nationwide ban. The Supreme Court is set to hear arguments on January 10 regarding ByteDance’s legal challenge, which claims the law mandating the sale violates First Amendment free speech rights. In their letter to Biden, the senators highlighted the potential consequences for free expression and the uncertain future of the law.
The controversial legislation, signed by Biden in April, was passed due to national security concerns. The Justice Department asserts that TikTok’s vast data on 170 million American users poses significant risks, including potential manipulation of content. TikTok, however, denies posing any threat to US security.
The debate has split lawmakers. Senate Minority Leader Mitch McConnell supports enforcing the deadline, while President-elect Donald Trump has softened his stance, expressing support for TikTok and suggesting he would review the situation. The deadline falls just a day before Trump is set to take office on January 20, adding to the uncertainty surrounding the app’s fate.
