Attorneys for Arm and Qualcomm are clashing in a US federal court this week over a dispute that could shape the future of the chip industry. The case centres on whether Qualcomm’s acquisition of Nuvia in 2021 for $1.4 billion allowed the transfer of computing core designs that build on Arm’s architecture. Arm, whose technology dominates the smartphone market and is increasingly used in laptops, argues that Nuvia’s designs are derivatives of its intellectual property and fall under licensing restrictions.
At the heart of the trial is the testimony of Gerard Williams, a former Apple executive who founded Nuvia. While Arm’s attorneys contend that Nuvia’s work is derived from Arm’s technology, Williams insisted the influence of Arm’s architecture was minimal, estimating it made up ‘one percent or less’ of Nuvia’s final designs. Qualcomm’s lawyers are defending their right to use Nuvia’s cores, highlighting how the company customises and extends Arm’s technology.
The outcome of this trial could impact Qualcomm’s ambitions in the laptop market, where it partners with Microsoft to compete against Apple’s custom chips. With potential losses of $50 million annually in licensing fees for Arm at stake, both companies are vying for control over the boundaries of intellectual property rights. A verdict could come as early as this week, and Qualcomm’s CEO Cristiano Amon may soon take the stand.
US authorities are weighing a potential ban on TP-Link Technology Co., a Chinese router manufacturer, over national security concerns, following reports linking its home internet routers to cyberattacks. According to the Wall Street Journal, the US government is investigating whether TP-Link routers could be used in cyber operations targeting the US, citing concerns raised by lawmakers and intelligence agencies.
In August, two US lawmakers urged the Biden administration to examine TP-Link and its affiliates for possible links to cyberattacks, highlighting fears that the company’s routers could be exploited in future cyber operations. The Commerce, Defence, and Justice departments have launched separate investigations into the company, with reports indicating that a ban on the sale of TP-Link routers in the US could come as early as next year. As part of the investigations, the Commerce Department has reportedly subpoenaed the company.
TP-Link has been under scrutiny since the US Cybersecurity and Infrastructure Agency (CISA) flagged vulnerabilities in the company’s routers, that could potentially allow remote code execution. This comes amid heightened concerns that Chinese-made routers could be used by Beijing to infiltrate and spy on American networks. The US government, along with its allies and Microsoft, has also uncovered a Chinese government-linked hacking campaign, Volt Typhoon, which targeted critical US infrastructure by taking control of private routers.
The Commerce, Defence, and Justice departments, as well as TP-Link, did not immediately respond to requests for comment.
Basis, an AI startup, has secured $34 million in a Series A funding round to develop its AI-powered accounting automation product. The round, led by Khosla Ventures, attracted a diverse group of investors, including NFDG (the AI-focused fund managed by former GitHub CEO Nat Friedman and ex-Apple executive Daniel Gross), OpenAI board members Larry Summers and Adam D’Angelo, and Google’s chief scientist Jeff Dean.
The New York-based company is part of a growing group of AI startups creating autonomous agents—systems capable of performing tasks independently. Basis’ product, designed specifically for accounting firms, can handle various workflows such as entering transactions, verifying data accuracy, and integrating with popular ledger systems like QuickBooks and Xero. The product has already shown promising results, with large firms like Wiss reporting a 30% reduction in time spent on manual accounting tasks. Basis functions similarly to a junior accountant, allowing staff to focus on reviewing the AI’s work rather than completing tasks themselves.
Basis also aims to address the critical shortage of accountants in the US, exacerbated by retiring baby boomers and a decline in younger generations entering the profession. According to the Bureau of Labor Statistics, the accounting sector employs over 3 million people, but the number of candidates sitting for the CPA exam has fallen by 33% between 2016 and 2021. The shortage has led many firms to outsource work to countries like India. Moreover, with AI’s potential to automate tasks traditionally performed by accountants, the sector is expected to experience significant disruption. A 2023 OpenAI paper suggested that automation powered by large language models could eventually impact all accountant and auditor roles.
A preliminary ruling by the US International Trade Commission (ITC) has found Lenovo smartphones, including models from its Motorola Mobility division, infringe patents held by Ericsson. The decision, announced on Tuesday, centres on technology related to 5G wireless communications. If upheld, the ruling could lead to a ban on the import of affected Lenovo smartphones into the United States.
The dispute began last year when Ericsson filed a complaint accusing Motorola’s Moto G, Edge, and Razr phones of patent violations. Lenovo has denied these allegations. The ITC is expected to deliver its final verdict in April, leaving the potential ban looming over Lenovo’s operations in a major market.
This is not the only legal battle between the two tech giants. They are currently engaged in related lawsuits across South America, the United Kingdom, and North Carolina. Courts in Brazil and Colombia have already granted preliminary bans on Lenovo smartphone sales, though Lenovo has been pushing back, including a successful appeal in the US to revisit these enforcement measures.
With 5G technology at the heart of the dispute, the case underscores the high stakes involved in global telecommunications innovation and intellectual property rights. Both companies have so far declined to comment on the latest ruling.
Elon Musk and his company SpaceX are facing multiple federal investigations into their compliance with security protocols designed to protect national secrets. According to reports, the reviews were initiated by the US Air Force, the Department of Defense Inspector General, and the undersecretary for intelligence and security. Concerns include Musk’s alleged failure to disclose meetings with foreign leaders and his reported contacts with Russian officials, including President Vladimir Putin.
The investigations follow longstanding concerns about Musk’s security practices. A previous review by the Pentagon was prompted in 2018 when Musk appeared on a live podcast and smoked marijuana, raising questions about his security clearance. Recently, the Air Force denied Musk high-level security access, citing potential risks.
SpaceX and Musk have declined to comment on the investigations. However, Pentagon officials emphasised the confidentiality of such probes, stating that the inquiries aim to protect the integrity of the process and those involved. National security concerns surrounding Musk have also been echoed by US allies and lawmakers.
Synopsys and SiMa.ai, two Silicon Valley-based companies, have announced a partnership to accelerate the development of energy-efficient AI chips designed for automotive applications. Synopsys, a leader in chip-design software, will collaborate with SiMa.ai, a startup known for its low-power hardware and software tailored for diverse AI functions.
The collaboration aims to meet the increasing demand for advanced AI technologies in electric vehicles, where efficient energy use is critical. SiMa.ai’s technology supports a range of applications, from driver-assistance systems that improve safety to voice assistants enabling hands-free commands. These tools often require different types of hardware, and the partnership allows automakers to simulate and select the best combinations for their needs.
The companies see this as a step towards integrating features like voice assistants into cars within the next three years. SiMa.ai’s CEO, Krishna Rangasayee, highlighted the importance of adapting data centre-level AI performance into power-efficient solutions for vehicles, ensuring both high performance and minimal energy consumption.
The US Commerce Department has finalised $406 million in grants to Taiwan’s GlobalWafers to boost silicon wafer production in Texas and Missouri. These funds will support the first large-scale US production of 300-mm wafers, critical components in advanced semiconductors. This initiative is part of the Biden administration’s effort to strengthen the domestic supply chain for chips.
The grant will aid GlobalWafers’ nearly $4 billion investment in building new manufacturing facilities, creating 1,700 construction jobs and 880 permanent manufacturing positions. The company plans to produce wafers for cutting-edge, mature-node, and memory chips in Sherman, Texas, and wafers for defence and aerospace chips in St. Peters, Missouri.
GlobalWafers’ CEO Doris Hsu expressed enthusiasm about collaborating with US-based customers for years to come. Currently, over 80% of the global 300-mm silicon wafer market is controlled by just five companies, with most production concentrated in East Asia.
This funding is part of the $52.7 billion CHIPS and Science Act, aimed at expanding domestic semiconductor manufacturing. Recent grants include $6.165 billion for Micron Technology and significant subsidies for Intel, TSMC, and GlobalFoundries.
TikTok and its parent company, ByteDance, have asked the Supreme Court to halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that the law violates the First Amendment, as it targets one of the most widely used social media platforms in the United States, which currently has 170 million American users. A group of TikTok users also submitted a similar request to prevent the shutdown.
The law, passed by Congress in April, reflects concerns over national security. The Justice Department claims TikTok poses a threat due to its access to vast user data and potential for content manipulation by a Chinese-owned company. A lower court in December upheld the law, rejecting TikTok’s argument that it infringes on free speech rights. TikTok maintains that users should be free to decide for themselves whether to use the app and that shutting it down for even a month could cause massive losses in users and advertisers.
With the ban set to take effect the day before President-elect Donald Trump’s inauguration, TikTok has urged the Supreme Court to decide by 6 January. Trump, who once supported banning TikTok, has since reversed his position and expressed willingness to reconsider. The case highlights rising trade tensions between the US and China and could set a precedent for other foreign-owned apps operating in America.
Florida-based AE Industrial Partners has acquired Israeli spyware company Paragon for an estimated $500 million, with reports suggesting the deal could reach up to $900 million. Paragon, a competitor to NSO Group, is known for providing cybersecurity tools to government agencies that it claims meet “enlightened democracy” standards. The acquisition was completed on 13 December and reportedly approved by both US and Israeli officials.
Paragon, founded in 2019 by former Israeli intelligence officers and backed by ex-Prime Minister Ehud Barak, is merging with Virginia-based cybersecurity firm Red Lattice. This move aims to strengthen the firm’s presence in the global surveillance market. The US subsidiary of Paragon recently signed a one-year contract with US Immigration and Customs Enforcement, reflecting its growing footprint in government cybersecurity services.
The acquisition comes amid tightened scrutiny of spyware technologies after allegations of abuse involving competitors like NSO Group. In 2021, the US added NSO to its trade blacklist, citing its misuse in targeting activists and journalists. Paragon, however, positions itself as a provider of ethically guided surveillance tools, limiting its activities to messaging apps and governmental communications.
Rhode Island officials have confirmed a major data breach in the state’s social services system, potentially exposing the personal and financial details of hundreds of thousands of residents. The hackers, believed to be an international cybercriminal group, accessed sensitive information through RIBridges, the state’s portal for government assistance programmes, including Social Security numbers and banking details.
The breach, which was detected earlier this month, affects users of the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Families, and healthcare services accessed through HealthSource RI since 2016. The attackers have demanded an undisclosed ransom, threatening to release the stolen data if unpaid. Deloitte, the system’s vendor, confirmed the breach on Friday, prompting the state to shut down the portal temporarily.
Residents impacted by the breach will be notified via letters detailing steps to secure their personal information and protect their bank accounts. For now, new applicants for state benefits must use paper applications as authorities work to secure the compromised system. Governor Dan McKee described the incident as extortion, calling for swift remediation and protection for affected citisens.
