US

Taiwanese chip maker Vanguard warns of economic risks from US tariffs

Vanguard International Semiconductor has cautioned that US tariffs on imported chips may drive inflation and weaken global economic growth.

Chairman Leuh Fang stated that while the direct impact on Vanguard would be minimal, broader consequences for the semiconductor industry remain uncertain.

The company remains in a wait-and-see mode, as it is unclear how far the proposed tariffs will go. Higher import duties could reduce purchasing power and slow economic expansion, Fang noted.

However, the firm expects little direct exposure to the tariffs due to its focus on legacy chips for automotive and display applications.

Vanguard has no plans to establish a US manufacturing facility. Meanwhile, larger industry players such as TSMC, which owns over a quarter of Vanguard’s shares, are investing in American production to navigate trade uncertainties.

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Tesla’s new China autopilot update falls short of expectations

Tesla has introduced a long-awaited update to its Autopilot software in China, adding city navigation features that allow for automatic lane changes and traffic light detection. However, many Chinese Tesla owners were disappointed, expressing that the update did not meet the high expectations set by CEO Elon Musk. The new features, while similar to the company’s Full Self-Driving (FSD) system, are less advanced in China due to insufficient data on local roads and traffic rules.

Tesla faces stiff competition from Chinese automakers like Huawei, Xiaomi, and BYD, which offer advanced driver-assistance systems at lower prices or even for free. These rivals have already launched vehicles capable of navigating complex Chinese traffic, leaving Tesla behind in the race for smart-driving technology. Despite this, Tesla continues to charge its customers nearly $9,000 for the limited version of its FSD software, which many feel does not live up to the promises made by the company.

The delays in rolling out full FSD in China are partly due to regulatory hurdles and restrictions on data transfer between China and the US. Tesla is working on gaining approval from Beijing for its advanced systems, but China currently only requires registration for level-two autonomous features like Autopilot. Tesla is also looking into establishing a data centre in China to train its AI software, though the process has been complicated by strict Chinese data laws.

While Tesla’s Autopilot update is seen as a step forward, it faces growing criticism for not keeping pace with the rapidly evolving smart-driving features offered by local competitors. Tesla’s challenge in China highlights the complex balance the company must maintain between innovation, regulatory compliance, and local competition.

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Trump orders review of tariffs over digital service taxes

US President Donald Trump has directed his trade officials to revive investigations into digital service taxes imposed by foreign countries on American tech giants.

The move could lead to new tariffs on imports from nations like France, Canada, and India, which have introduced taxes targeting major firms such as Google, Meta, Apple, and Amazon. Trump argues that these levies unfairly exploit US companies and has vowed to protect America’s tax base from foreign appropriation.

The renewed probe follows previous investigations during Trump’s first term, where the US Trade Representative found that several countries discriminated against American firms, paving the way for potential retaliatory tariffs.

While the Biden administration initially imposed 25% tariffs on goods from countries with digital taxes, these duties were suspended to allow for global tax negotiations. However, with talks stalling and the US rejecting the 15% global minimum tax, Trump has now abandoned the deal entirely.

The new directive also calls for scrutiny of the Digital Markets Act and Digital Services Act imposed by the European Union, assessing whether they encourage censorship or undermine free speech for US companies.

As tensions grow, the US could impose fresh tariffs on billions of dollars worth of foreign imports. Trump has not yet revealed the specific tariff rates or the value of goods that may be targeted in this latest round of trade actions.

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AI safety cuts loom

The National Institute of Standards and Technology is set to cut up to 500 staff members, a move that could devastate the US AI Safety Institute and its related programme, Chips for America. Recent reports indicate that these cuts are primarily aimed at probationary employees, with some already receiving verbal notice of termination.

Established under a previous US presidential directive, the AI Safety Institute has faced an uncertain future ever since its inception. The current government’s plans to reduce its workforce are raising concerns among experts, who warn that such reductions will hinder the nation’s capacity to develop critical safety standards in AI development.

Critics from various AI safety and policy organisations have voiced their alarm, emphasising that these cuts occur at a time when specialised expertise is essential. The potential loss of institutional knowledge could leave the government ill-equipped to manage emerging risks in artificial intelligence.

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Rumble and Trump Media take legal action in US against Brazilian judge

Trump Media & Technology Group and Rumble have filed an emergency motion in a US court against Brazilian Supreme Court Justice Alexandre de Moraes. The firms argue that his orders violate US sovereignty, constitutional rights, and laws.

The dispute began when Moraes ordered Rumble to suspend its services in Brazil until it complied with local regulations. The judge also threatened criminal charges against Rumble’s CEO, Chris Pavlovski, for non-compliance. The company had previously sued Moraes in a US court over alleged illegal censorship.

Moraes has been a key figure in Brazil’s crackdown on disinformation, particularly during Jair Bolsonaro’s presidency.

He has also ordered fines and restrictions on accounts linked to Bolsonaro allies, including Allan dos Santos, who is under investigation for spreading false information.

The Brazilian Supreme Court has yet to respond to the motion, while Rumble and Trump Media continue their legal battle in the US.

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Musk faces growing competition in satellite internet

Elon Musk’s Starlink network is facing increasing competition in the satellite internet market, particularly from SpaceSail, a Shanghai-based company backed by the Chinese government, and Amazon’s Project Kuiper. SpaceSail is expanding rapidly, having entered Brazil in November and begun operations in Kazakhstan by January. Meanwhile, Brazil is also in talks with Project Kuiper and Canada’s Telesat to diversify its options for providing high-speed internet to remote areas.

SpaceSail plans to launch 648 low Earth orbit (LEO) satellites this year, with the ambition of deploying up to 15,000 by 2030. This move aims to compete directly with Starlink, which currently operates around 7,000 satellites but plans to increase its constellation to 42,000 by the end of the decade. China’s push into satellite internet is part of its broader strategy to dominate space and digital technologies, which has raised concerns among Western governments, particularly regarding Beijing’s potential to extend its censorship and surveillance reach globally.

China’s rapid expansion in satellite technology, supported by state funding and military research, has intensified. It has launched 263 LEO satellites in the past year alone, and researchers are focusing on low-latency systems to compete with Starlink’s capabilities. The Chinese government is also exploring ways to track and monitor satellite constellations, potentially targeting Starlink as a strategic competitor.

As competition in the satellite internet sector intensifies, particularly between the US, China, and other players like Brazil, the geopolitical and military implications of these space technologies are becoming clearer. With nations striving to secure positions in space, experts warn of an increasingly complex and competitive environment.

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Amgen expands in India with $200 million investment

US drugmaker Amgen has announced a $200 million investment in a new technology centre in southern India, which will focus on using AI and data science to support the development of new medicines. The centre, located in Hyderabad, is expected to have a workforce of around 2,000 by the end of the year, with 300 employees already on-site. Amgen plans to make additional investments in the coming years as part of its ongoing expansion in India.

Amgen’s decision to invest in India reflects the growing importance of the country in the global pharmaceutical industry, often referred to as the ‘pharmacy of the world.’ The company’s new centre aligns with broader efforts by global pharmaceutical companies to increase their presence in India. The BioAsia conference in Hyderabad will feature executives from major drugmakers, including Amgen, Eli Lilly, and Novartis.

Amgen’s move comes amid heightened cooperation between India and the US, which recently launched discussions for an early trade deal. A key focus of these talks is to promote collaboration in critical and emerging technologies, which includes areas like pharmaceuticals. US officials have praised Amgen’s expansion as a model for how both countries can work together to harness innovation and technology.

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US lawmakers criticise EU’s Digital Markets Act

US House Judiciary Chair Jim Jordan has called on European Union antitrust chief Teresa Ribera to clarify how the EU enforces its Digital Markets Act (DMA), which he believes disproportionately targets American companies. His request follows a memorandum signed by US President Donald Trump, warning that the administration would scrutinise the EU’s new rules regulating how US companies interact with consumers in Europe.

Jordan and his co-signatory, Scott Fitzgerald, criticised the DMA’s hefty fines, which can reach up to 10% of a company’s global revenue for violations. They argue that the rules not only disadvantage US companies but also potentially benefit Chinese firms, stifling innovation and handing over valuable data to adversarial nations. The letter urges Ribera to address these concerns with the judiciary committee by March 10.

The European Commission, where Ribera is the second-highest official, has rejected claims that its laws are aimed at American companies. Ribera defended the DMA in a recent interview, stating that the EU should not be pressured into altering laws that have already been approved by European lawmakers.

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Google plans global expansion of YouTube Premium Lite

Google is reportedly preparing to launch YouTube Premium Lite, a cheaper alternative to its full subscription service, in several countries, including the US, Australia, Germany and Thailand. Bloomberg reports that the service will cater to users who want an ad-free experience for most videos but do not necessarily need access to YouTube Music.

YouTube previously tested a similar version of Premium Lite in parts of Europe in 2021, but the plan was discontinued in 2023. However, recent tests suggest that the updated version may include limited ads rather than a completely ad-free experience. Pricing remains unclear, but in Australia, a test version was listed at $8.99 AUD per month, significantly lower than the standard YouTube Premium price.

A YouTube spokesperson confirmed that the company is working on a new subscription tier with ‘most videos ad-free’ and hopes to expand it with support from its partners. While no official launch date has been announced, the move could provide a middle ground for users seeking fewer interruptions without committing to the full YouTube Premium package.

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China’s tech giants take on US rivals in stock market surge

Chinese tech stocks are experiencing a major surge, inspiring catchy nicknames as they rival the United States ‘Magnificent Seven’ tech giants. Driven by excitement around AI startup DeepSeek and perceived state backing following President Xi Jinping’s meeting with business leaders like Alibaba founder Jack Ma, the Hong Kong market has climbed significantly.

The Hang Seng index now ranks among the best-performing major markets this year, with leading firms stepping into the spotlight.

Brokerages have dubbed rising Chinese companies the ‘Seven Sisters,’ likely emerging from sectors like AI, chip-making, and high-end manufacturing. Companies such as Tencent, Alibaba, Xiaomi, and BYD are top contenders.

Another group, the ‘Terrific Ten,’ has also gained attention, with firms like JD.com, Geely, Baidu, and SMIC included, boosting the Hang Seng Tech index by nearly 70% over the past year—outpacing Nasdaq’s 27% gain.

The rivalry pits China‘s rising stars against the US ‘Magnificent Seven,’ a term coined by Bank of America, representing giants like Apple, Meta, and Nvidia.

Meanwhile, UBS has identified eight AI-driven Chinese stocks as the ‘VENUS Eight,’ and DeepSeek features among the ‘Little Dragon’ startups in Hangzhou, signalling China’s growing tech ambitions in the global market.

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