US

US targets Chinese firms over TSMC chips in Huawei processor

Washington has blacklisted over two dozen Chinese entities, including Zhipu AI and Sophgo, for alleged links to restricted chip technology in Huawei processors. The Commerce Department has also tightened export controls on chips that could be diverted to Huawei.

Zhipu AI, backed by Tencent and Alibaba, was accused of contributing to China’s military modernisation through advanced AI research. Sophgo faced scrutiny after a chip found in Huawei’s Ascend 910B AI system matched one it ordered from Taiwan Semiconductor Manufacturing Co (TSMC).

The measures impose stricter licensing requirements for chip exports, targeting semiconductors at 14 or 16-nanometre nodes used in AI applications. New restrictions also affect DRAM memory, crucial for high-bandwidth AI processing, which could impact Chinese chipmaker CXMT.

Zhipu AI denied the claims, while Sophgo stated it had no direct or indirect ties to Huawei. Huawei and TSMC declined to comment on the latest sanctions, which build on previous curbs against Huawei and its network of suppliers.

NHTSA expands Tesla safety probes amid crash reports

Sean Duffy, nominated to lead the US Transportation Department, stated he would allow the ongoing federal investigation into Tesla’s advanced driver assistance technology to proceed. The National Highway Traffic Safety Administration (NHTSA) launched a probe into 2.4 million Tesla vehicles with Full Self-Driving (FSD) software after multiple crashes, including a fatal 2023 incident.

Duffy affirmed he would not interfere with the investigation despite Tesla CEO Elon Musk’s ties to former president Donald Trump. During a Senate hearing, Duffy responded to Senator Ed Markey’s request for objectivity, assuring that the NHTSA would be able to operate independently.

NHTSA recently opened a separate investigation into Tesla’s Actually Smart Summon feature, following crashes where vehicles failed to detect obstacles while being moved remotely. The agency is also evaluating whether Tesla’s recall of over two million vehicles in December 2023 adequately addressed safety concerns, particularly drivers’ attentiveness while using Autopilot.

Duffy also indicated he would review the Federal Aviation Administration’s proposed $633,000 fine against Musk’s SpaceX, linked to launch license violations.

TikTok users react to looming US Shutdown

Disappointment and confusion swept across TikTok users in the United States as news broke that ByteDance, the app’s Chinese owner, plans to shut down the platform for its 170 million US users by Sunday. The move comes in response to a federal ban requiring ByteDance to sell TikTok’s US assets by January 19 due to national security concerns. While some users hold out hope for a last-minute reprieve, many are preparing for the worst.

Content creators, many of whom have built careers and followings on TikTok, expressed frustration and sadness. Some vowed to boycott rival platforms like Instagram, Facebook, and X, while others scrambled to save their content. True crime creator Amber Goode, from Colorado, criticised the government for “playing with us,” while other users shared instructions on migrating to alternative platforms, including China-based apps like RedNote.

TikTok has maintained that it does not and would never share US user data with China, arguing that the ban violates First Amendment rights. Unless the Supreme Court intervenes, users attempting to open the app on Sunday will be redirected to a shutdown information page. President-elect Donald Trump is reportedly exploring executive actions to delay the ban, but the outcome remains uncertain.

The shutdown has sparked mixed emotions globally, with some international users relieved that American social media issues may no longer dominate their feeds. However, for US creators like Ishpal Sidhu, who stands to lose her livelihood, the uncertainty has cast a shadow over what was once a thriving platform.

China launches inquiry into US chip funding

China’s Commerce Ministry announced plans to investigate US government subsidies to its semiconductor sector following requests from China’s mature node chip industry. The ministry stated on Thursday that these subsidies, introduced under the Biden administration, allegedly provide American companies with an unfair competitive advantage in the global market.

According to the Chinese government, US firms have exported mature node chip products to China at reduced prices, causing harm to the interests of China’s domestic semiconductor industry. Beijing views these practices as a threat to its industry’s rights and competitive balance.

The investigation reflects rising tensions between the two nations over technology and trade, particularly as both seek to bolster their semiconductor sectors amid growing geopolitical competition.

Big tech CEOs set to attend Trump inauguration

Several prominent tech leaders, including Sundar Pichai, CEO of Alphabet, and Tim Cook, CEO of Apple, are scheduled to attend US President-elect Donald Trump’s inauguration on Monday, according to sources familiar with the event’s planning. This marks a significant moment as top executives from the tech industry, including Elon Musk, Jeff Bezos, and Mark Zuckerberg, are also expected to be in attendance. The move signals ongoing engagement between the tech sector and the incoming administration, despite various regulatory and political challenges that have shaped recent interactions between Silicon Valley and the US government.

The participation of these influential figures has attracted attention, especially given the politically charged atmosphere surrounding Trump’s presidency. While there have been tensions between Big Tech companies and the outgoing administration, with issues like data privacy, antitrust concerns, and platform regulation, the CEOs’ attendance at the inauguration may reflect an attempt to foster relationships with the new president and his team.

Apple has not yet responded to a request for comment on the reports of Tim Cook’s attendance, and the full list of attendees is still evolving. The inauguration will serve as a crucial occasion for shaping future dialogues between the tech sector and government officials. The presence of these key leaders also raises questions about how the next administration will approach regulations affecting the rapidly evolving technology industry.

TikTok prepares for possible US shutdown

TikTok is preparing to shut down its US operations on Sunday unless a federal ban is averted at the last minute, according to sources. The ban, stemming from a law signed last April, requires TikTok’s Chinese parent company, ByteDance, to sell its US assets by January 19 or face nationwide restrictions. The Supreme Court is currently deliberating on whether to uphold or pause the ban, but no ruling has been made yet.

President-elect Donald Trump, set to take office the day after the ban would take effect, is reportedly considering a temporary suspension of the shutdown. However, legal uncertainty clouds the possibility of such action. Meanwhile, the Biden administration, in its final days, has signalled it will not block the ban without a credible divestment plan from ByteDance. TikTok has argued that the law violates First Amendment rights and warned that a prolonged ban could lead to significant user loss and global disruptions to its services.

If the ban proceeds, TikTok plans to display a pop-up message informing users of the shutdown and allow them to download their data. The app would become largely inoperable as US companies would no longer be permitted to provide critical services for its maintenance. TikTok has emphasised its ability to restore operations quickly if the ban is reversed but warned that the shutdown would impact not just American users but its global platform due to its reliance on US-based infrastructure.

The political and legal standoff has sparked widespread public and corporate reactions. Social media users have expressed disappointment at the impending ban, while TikTok’s US operations, employing over 7,000 workers, hang in the balance. Despite ongoing efforts to delay the enforcement, the platform faces an uncertain future as Sunday’s deadline looms.

US chip industry criticises Biden’s export control policies

Several chip and manufacturing industry groups have criticised the Biden administration’s new export controls, arguing they were implemented without sufficient consultation. A private letter sent to President Joe Biden on January 13 expressed concerns that the rules could harm US companies and shift market share to global competitors.

The Semiconductor Industry Association (SIA) and SEMI, representing chipmakers and manufacturing equipment firms, objected to the new licensing requirements for AI chip exports, including advanced high-bandwidth memory. They argued the lack of public input ignored the regulations’ economic and international consequences.

High-bandwidth memory, essential for AI chip production, is primarily manufactured by US and South Korean companies. The new rules could restrict its sale to China, further tightening controls on advanced technology exports.

A separate source suggested the restrictions may also affect companies like Lam Research, which previously benefited from a rule interpretation allowing expanded sales in China. Neither the SIA, SEMI, nor Lam Research commented immediately.

Taiwan welcomes exclusion from US AI restrictions

Taiwan’s government has expressed confidence in its management of AI chip exports following the island’s exemption from new US restrictions. Officials stated the exclusion should reassure partners about the country’s legal compliance and export controls.

The US announced stricter AI chip export measures this week, limiting shipments to most countries while continuing a ban on China, Russia, Iran, and North Korea. Taiwan remains a ‘tier one’ partner, enjoying unrestricted access to US AI technology. Taiwan’s Economy Ministry emphasised efforts to help local businesses stay informed about evolving export regulations.

Taiwan is home to TSMC, the world’s largest contract chipmaker and a key supplier for Nvidia. The government, alert to Beijing’s claims over the island, maintains strict export controls to China and has vowed to enforce US restrictions. TSMC suspended shipments to a Chinese company last year after a chip was illegally integrated into Huawei technology.

Huawei has faced US trade bans since 2019 due to national security concerns, with companies restricted from selling technology to the Chinese firm without a special licence.

US dismantles China-backed malware infecting thousands of computers

The US Justice Department has removed malware from over 4,200 computers worldwide in an operation targeting a hacking group linked to the Chinese government. The malware, known as ‘PlugX,’ was used to steal information and compromise systems across the United States, Europe, and Asia. Investigators identified the cybercriminals behind the attack as ‘Mustang Panda’ and ‘Twill Typhoon,’ groups believed to have received financial support from China.

Court documents filed in the US District Court for the Eastern District of Pennsylvania allege that the Chinese government paid Mustang Panda to develop PlugX. The malware has been active since at least 2014 and was used not only to target governments and businesses but also Chinese political dissidents. Officials described the operation as a critical step in neutralising cyber threats backed by foreign states.

Authorities emphasised the growing risks posed by state-sponsored hacking groups and their ability to infiltrate global networks. The Justice Department remains committed to dismantling cyber threats and preventing adversaries from exploiting sensitive information. The scale of the attack highlights the persistent threat of cyber espionage and the need for international cooperation in addressing cybersecurity challenges.

US Supreme Court to hear challenge to Texas pornography age verification law

The US Supreme Court will hear a challenge on Wednesday regarding a Texas law that mandates adult websites verify the age of users before granting access to potentially harmful material. The law, which is part of a broader trend across Republican-led states, requires users to submit personal information proving they are at least 18 years old to access pornographic content. The case raises significant First Amendment concerns, as adult entertainment industry groups argue that the law unlawfully restricts free speech and exposes users to risks such as identity theft and data breaches.

The challengers, including the American Civil Liberties Union and the Free Speech Coalition, contend that alternative methods like content-filtering software could better protect minors without infringing on adults’ rights to access non-obscene material. Texas, however, defends the law, citing concerns over the ease with which minors can access explicit content online.

This case is significant because it will test the balance between state efforts to protect minors from explicit content and the constitutional rights of adults to access protected expression. If the Supreme Court upholds the law, it could set a precedent for similar age-verification measures across the US.