Taiwan and China Tech Tensions, X Goes Dark in Brazil | Bloomberg Technology
04 Sep 2024 (14 days ago)
Taiwan-China Tech Rivalry
- Taiwan accuses China of illegally poaching talent from its tech firms, highlighting trade tensions.
- Taiwan claims Chinese chip companies are illegally acquiring talent and trade secrets, intensifying global rivalry in key technologies used in phones, cars, and AI.
- China's Semiconductor Manufacturing International Corporation (SMIC) is a significant concern for Taiwan as it competes with Taiwan Semiconductor Manufacturing Company (TSMC).
- The U.S. is concerned about China gaining access to advanced semiconductors, which could enhance its military capabilities, a policy that began under the Trump administration.
- The U.S. is also pressuring other countries like Japan and the Netherlands to restrict China's access to key technologies.
Taiwan's Economic Growth and Tech Dominance
- Taiwan's dominance in advanced chips has significantly boosted its economy, with local industries becoming 90% richer since the introduction of ChatGPT in November 2020, and property prices hitting a record high in March.
- Taiwan's government has set ambitious growth goals, aiming for GDP per capita to surpass South Korea's by next year.
U.S. - China Relations and Tech Industry Impact
- Chinese TV manufacturer BYD will postpone announcing a major plant investment in Mexico until after the U.S. election.
- Anna Rathbun, a technology investor, believes that the U.S.'s hawkish stance on China is a bipartisan issue and will likely persist regardless of the election outcome.
X (formerly Twitter) Banned in Brazil
- The platform formerly known as Twitter, X, faces a countrywide suspension in Brazil.
- Brazilian judges ruled against Elon Musk, upholding a nationwide ban against his social media platform X, formerly known as Twitter.
- A panel of the Supreme Court in Brazil confirmed the order to ban X in the country, but did not discuss the Starlink part of the problem.
Tech Earnings and Market Performance
- AI's impact on earnings season is under scrutiny.
- The market is experiencing a risk-off day, with the Nasdaq 100 down by 2.3%.
- The chip sector is under downward pressure, with Nvidia down 8%, marking its biggest drop in about a month.
- Intel will be presenting at the City Global Technology Conference tomorrow and the options market is pricing in a swing of around 5% in either direction.
- Hewlett-Packard Enterprise is proceeding with its $4 billion lawsuit against the estate of the late Mike Lynch, seeking damages related to the Autonomy acquisition.
- Hewlett-Packard Enterprise will likely face questions about the ongoing court case during their earnings call this week.
- The NASDAQ experienced a significant downturn, dropping by more than 2%, primarily driven by chip-related stocks.
- The NASDAQ experienced a decline with Apple down more than 2% and Nvidia down 7%, attributed to the performance of the semiconductor industry.
AI Impact and Regulation
- Several AI-related companies, including Super Micro, Lumen, and Symbiotic, faced a decline in their stock prices following bearish research reports that questioned their valuations.
- Nvidia's stock has performed well over the past two years, even with a recent drop. Investors are still interested in companies involved in AI, with OpenAI's latest funding round demonstrating a high valuation.
- California's legislature has approved an AI safety bill that mandates companies to prevent their technology from causing significant harm. The bill, which has garnered both support and criticism, awaits Governor Gavin Newsom's decision, who has expressed a desire to avoid excessive regulation in the AI sector.
- The proposed AI regulation in California aims to strike a balance between fostering innovation and mitigating potential harm while promoting transparency. The regulation includes parameters based on investment levels in AI and targets high-risk applications, such as those that could be exploited for cyberattacks on critical infrastructure.
- Sama provides data labeling and evaluates models.
- Wendy Gonzalez is the CEO of Sama.
Smartphone Market Developments
- Huawei surpassed Apple in Chinese smartphone shipments, securing a position in the top five.
- Apple's upcoming iPhone event is scheduled for September 9th, featuring devices with minimal design changes from previous models and a strong emphasis on new AI features.
Other Business and Tech News
- DirectTV says customers lost access to Walt Disney programming after the companies failed to reach a new licensing pact.
- Airbnb is urging New York City officials to scale back a local regulation that outlawed most of its short-term rental listings.
- Hyperscalers are investing heavily in AI infrastructure, with a significant portion of the investment going to Nvidia. The remaining investment is distributed among companies like Broadcom and Marvell, which provide custom chips and infrastructure for AI development.
- Companies like Amazon and Google are focusing on developing their in-house chips for AI, while enterprises are concerned about compliance aspects of generative AI and prefer not to rely solely on cloud-based solutions.
- The demand for AI-ready servers is high, with limited options available in the market. Companies like Dell, Super Micro Computer (SMC), and Hewlett Packard Enterprise (HPE) are the primary providers, operating with thin margins in this growing market segment.
Concert Ticket Frustrations in the U.K.
- Fans in the U.K. expressed frustration over technical issues and dynamic pricing during the sale of concert tickets for a performer named Liam.
- Nikki Bentley and Rob Harlow experienced technical difficulties while attempting to purchase tickets.