REUTERS
"EnCharge AI raises over $100 million in funding to bring AI inference chips to market"
By Akash Sriram
February 13, 2025
Feb 13 (Reuters) - Startup EnCharge AI raised more than $100 million in a Series B funding round led by Tiger Global to bring more efficient and less expensive AI chips to the market, the company said on Thursday.
The company did not disclose details on valuation.
EnCharge AI develops analog chips that are integrated into semiconductors used for storage.
These in-memory chips are designed for inference, a phase where AI models are utilized rather than trained.
While most AI inference chips are typically housed in vast server clusters within data centers, EnCharge AI's chips are designed for edge computing, being utilized in user-facing devices like laptops.
Their approach to embedding analog processing in memory chips allows their accelerators to perform AI tasks with up to 20 times less energy consumption compared to some of the leading AI chips, the company said.
Battery-powered devices like laptops and smartphones need efficient chips to process AI and analog chips situated inside semiconductors for memory are a viable solution, CEO Naveen Verma told Reuters.
"It turns out that these platforms can now really overcome many of the barriers in terms of cost and sustainability, but also in terms of privacy and security, which the enterprise and also a lot of consumer applications care very much about."
Groq, founded by a former Alphabet chip engineer and Cerebras, are among the companies developing specialized chips for AI inference.
Other investors in the round included Samsung Electronics' VC arm and HH-CTBC, a partnership between Taiwan's Foxconn and CTBC Venture Capital.
Reporting by Akash Sriram in Bengaluru; Editing by Vijay Kishore
https://www.reuters.com/technology/arti ... 025-02-13/
POLITICS
Re: POLITICS
REUTERS
"US power companies increase data center demand spending as DeepSeek fears wane"
By Laila Kearney
February 13, 2025
Summary
* PPL to boost capital spending by 40% through 2028
* US AI power demand so far undimmed by Chinese startup DeepSeek
* US power demand to hit records this year and next, EIA forecasts
Feb 13 (Reuters) - U.S. electric utilities are adding tens of billions of dollars to spending plans to build new power supplies and bolster the grid as data centers for artificial intelligence and cloud computing drive up energy demand.
In company earnings calls on Thursday, PPL Corp said it would increase its capital investments through 2028 by nearly 40% to $20 billion.
Dominion, which serves the world's largest data center market in Northern Virginia, and utility giant Exelon both revised up capital plans earlier in the week.
The investments will also be used to provide power to the utilities' broader range of customers.
The significant upward revisions to capital investments indicate a continued rapid rise of data center power consumption and reject concerns that market gains by Chinese AI startup DeepSeek, which eroded power company share prices at the start of the year, would slash Big Tech's power demand.
"It continues to be full speed ahead," said Bill Fehrman, CEO of Ohio-based American Electric Power, which is considering adding $10 billion to its record $54 billion capital expenditure plan through the end of the decade.
After previously little-known DeepSeek drew national attention late last month, Fehrman said data center customers told AEP that they would continue their voracious pursuit of electricity supplies.
Executives with Duke, which is hiking its five-year plan by $10 billion, and Exelon similarly said that technology industry customers assured them there would be no slowing of their development of giant computer warehouses.
"We've not seen any changes in tone," Duke CFO Brian Savoy told Reuters.
U.S. electricity demand is projected to reach record highs this year and in 2026, according to the Energy Information Administration.
In addition to the rise of data centers, manufacturing and the electrification of industries like transportation are also spurring power consumption.
The country's data centers, however, are being built at an unusually large scale.
Data centers, which typically had a capacity of 20 megawatts, are now being constructed at as much as 1,000 megawatts, or 1 gigawatt, at a single site.
That's enough to power all of the homes in a major U.S. city.
PPL said it has 9 gigawatts in advanced stages of development and AEP said it has commitments for another 20 gigawatts of largely data center customers through 2030.
Utility spending is not a sure bet with many utilities needing to have their plans approved by state regulators.
Growing capital plans, which include new electricity generation and transmission lines, generally also lead to rising power bills for everyday homes and business.
It's unclear, however, whether some companies will include special provisions for data centers requiring them to bear more grid-related costs.
Utilities like AEP and Exelon are currently involved in regulatory fights over how to develop power contracts specific to data centers and other very large customers.
Reporting by Laila Kearney in New York, Seher Dareen and Vallari Srivastava in Bengaluru; Editing by Maju Samuel, Nia Williams and David Gregorio
https://www.reuters.com/business/energy ... 025-02-13/
"US power companies increase data center demand spending as DeepSeek fears wane"
By Laila Kearney
February 13, 2025
Summary
* PPL to boost capital spending by 40% through 2028
* US AI power demand so far undimmed by Chinese startup DeepSeek
* US power demand to hit records this year and next, EIA forecasts
Feb 13 (Reuters) - U.S. electric utilities are adding tens of billions of dollars to spending plans to build new power supplies and bolster the grid as data centers for artificial intelligence and cloud computing drive up energy demand.
In company earnings calls on Thursday, PPL Corp said it would increase its capital investments through 2028 by nearly 40% to $20 billion.
Dominion, which serves the world's largest data center market in Northern Virginia, and utility giant Exelon both revised up capital plans earlier in the week.
The investments will also be used to provide power to the utilities' broader range of customers.
The significant upward revisions to capital investments indicate a continued rapid rise of data center power consumption and reject concerns that market gains by Chinese AI startup DeepSeek, which eroded power company share prices at the start of the year, would slash Big Tech's power demand.
"It continues to be full speed ahead," said Bill Fehrman, CEO of Ohio-based American Electric Power, which is considering adding $10 billion to its record $54 billion capital expenditure plan through the end of the decade.
After previously little-known DeepSeek drew national attention late last month, Fehrman said data center customers told AEP that they would continue their voracious pursuit of electricity supplies.
Executives with Duke, which is hiking its five-year plan by $10 billion, and Exelon similarly said that technology industry customers assured them there would be no slowing of their development of giant computer warehouses.
"We've not seen any changes in tone," Duke CFO Brian Savoy told Reuters.
U.S. electricity demand is projected to reach record highs this year and in 2026, according to the Energy Information Administration.
In addition to the rise of data centers, manufacturing and the electrification of industries like transportation are also spurring power consumption.
The country's data centers, however, are being built at an unusually large scale.
Data centers, which typically had a capacity of 20 megawatts, are now being constructed at as much as 1,000 megawatts, or 1 gigawatt, at a single site.
That's enough to power all of the homes in a major U.S. city.
PPL said it has 9 gigawatts in advanced stages of development and AEP said it has commitments for another 20 gigawatts of largely data center customers through 2030.
Utility spending is not a sure bet with many utilities needing to have their plans approved by state regulators.
Growing capital plans, which include new electricity generation and transmission lines, generally also lead to rising power bills for everyday homes and business.
It's unclear, however, whether some companies will include special provisions for data centers requiring them to bear more grid-related costs.
Utilities like AEP and Exelon are currently involved in regulatory fights over how to develop power contracts specific to data centers and other very large customers.
Reporting by Laila Kearney in New York, Seher Dareen and Vallari Srivastava in Bengaluru; Editing by Maju Samuel, Nia Williams and David Gregorio
https://www.reuters.com/business/energy ... 025-02-13/
Re: POLITICS
REUTERS
"US retail sales post biggest drop in nearly two years amid winter freeze"
By Lucia Mutikani
February 14, 2025
Summary
* Retail sales drop 0.9% in January
* December sales growth revised up to 0.7% from 0.4%
* Core retail sales fall 0.8%; December revised higher
* Factory production dips 0.1%; motor vehicle output drops 5.2%
WASHINGTON, Feb 14 (Reuters) - U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.
But the larger-than-expected and across the board decline in retail sales reported by the Commerce Department on Friday probably does not reflect a material shift in consumer spending as it also followed four straight months of hefty increases.
A sharp upward revision to December's sales took some of the sting from the report.
Economists also noted that it was difficult to strip out large seasonal swings from the data at the turn of the year, which was also evident in the January consumer inflation report.
They continued to expect the Federal Reserve would not resume cutting interest rates before the second half.
Some of the policies of President Donald Trump's administration, like broad tariffs on imports, have cast a shadow over the economy.
"The drop was dramatic, but several mitigating factors show there's no cause for alarm," said Robert Frick, corporate economist at Navy Federal Credit Union.
Retail sales dropped 0.9% last month, the biggest decrease since March 2023, after an upwardly revised 0.7% increase in December, the Commerce Department's Census Bureau said.
Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, dipping 0.1%.
Retail sales increased 4.2% year-on-year in January.
Much of the country was blanketed by snowstorms and freezing temperatures last month while wildfires scorched entire neighborhoods in Los Angeles.
"The wildfires in Los Angeles, the second-largest metro area in the U.S., and severe winter weather in other parts of the country, may have limited face-to-face shopping activity," said Jay Hawkins, a senior economist at PNC Financial.
Some economists speculated that rising prices and confusion over tariffs could have impacted sales.
Pre-emptive buying in anticipation of tariffs that would raise prices for goods helped to boost retail sales in recent months.
But consumer sentiment has deteriorated, with one-year inflation expectations hitting a 15-month high in early February as households perceived that "it may be too late to avoid the negative impact of tariff policy," a University of Michigan survey of consumers showed last week.
"Maybe people are getting confused on the tariff story and think they are happening immediately and are therefore not even considering a purchase," said James Knightley, chief international economist at ING.
"We will need to wait until the February data to see if this is the start of a more cautious consumer trend or indeed whether it was simply a weather-related pull back."
A 25% tariff on Mexican and Canadian goods was delayed until March.
An additional 10% levy on goods from China went into effect this month.
Trump this week tasked his economics team with devising plans for reciprocal tariffs on every country that taxes U.S. imports.
Stocks on Wall Street were muted on Friday, while the dollar eased against a basket of currencies and U.S. Treasury yields fell.
FED ON HOLD
The data did little to change the view that the Fed will wait until later in the year to next cut its policy rate.
The U.S. central bank left its benchmark overnight interest rate unchanged in the 4.25%-4.50% range in January, having reduced it by 100 basis points since September, when it embarked on its policy easing cycle.
The policy rate was hiked by 5.25 percentage points in 2022 and 2023 to tame inflation.
Within the retail sales figures motor vehicles led the decline, with receipts at auto dealerships dropping 2.8% after advancing 0.9% in December.
In addition to the weather probably keeping buyers from showrooms, shortages could have been a factor.
Other data from the Census Bureau showed retail motor vehicle inventories were depleted in December.
Supply is unlikely to improve, with a third report from the Fed showing motor vehicle production plummeting 5.2% in January.
Sporting goods, hobby, musical instrument and bookstore sales plunged 4.6%.
Online store sales tumbled 1.9%.
Building material store sales fell 1.3%.
There were also sharp declines in sales at furniture, clothing and electronic retailers.
But receipts at food services and drinking places, the only services component in the report, increased 0.9% after edging up 0.1% in December.
Economists view dining out as a key indicator of household finances.
Higher gasoline prices lifted sales at service stations 0.9%.
Spending remains underpinned by labor market resilience, which is keeping wage growth elevated and the economic expansion on track.
Household wealth is at record highs thanks to high house prices, though the stock market has ceded some gains.
Retail sales excluding automobiles, gasoline, building materials and food services declined 0.8% last month after an upwardly revised 0.8% jump in December.
These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product, and were previously reported to have surged 0.7% in December.
Economists estimated inflation-adjusted consumer spending to have been flat or have posted a small dip in January.
Robust consumer spending offset the drag on GDP from inventories being nearly drawn down in the fourth quarter.
The Atlanta Fed lowered its first quarter GDP growth estimate to a 2.3% annualized rate from a 2.9% pace.
The economy grew at a 2.3% rate last quarter.
"The underlying strength of the economy remains largely unchanged," said Tuan Nguyen, U.S. economist at RSM US.
"If that strength persists, we should expect sales to rebound in the coming months."
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Toby Chopra
https://www.reuters.com/markets/us/us-r ... 025-02-14/
"US retail sales post biggest drop in nearly two years amid winter freeze"
By Lucia Mutikani
February 14, 2025
Summary
* Retail sales drop 0.9% in January
* December sales growth revised up to 0.7% from 0.4%
* Core retail sales fall 0.8%; December revised higher
* Factory production dips 0.1%; motor vehicle output drops 5.2%
WASHINGTON, Feb 14 (Reuters) - U.S. retail sales dropped by the most in nearly two years in January, likely weighed down by frigid temperatures, wildfires and motor vehicle shortages, suggesting a sharp slowdown in economic growth early in the first quarter.
But the larger-than-expected and across the board decline in retail sales reported by the Commerce Department on Friday probably does not reflect a material shift in consumer spending as it also followed four straight months of hefty increases.
A sharp upward revision to December's sales took some of the sting from the report.
Economists also noted that it was difficult to strip out large seasonal swings from the data at the turn of the year, which was also evident in the January consumer inflation report.
They continued to expect the Federal Reserve would not resume cutting interest rates before the second half.
Some of the policies of President Donald Trump's administration, like broad tariffs on imports, have cast a shadow over the economy.
"The drop was dramatic, but several mitigating factors show there's no cause for alarm," said Robert Frick, corporate economist at Navy Federal Credit Union.
Retail sales dropped 0.9% last month, the biggest decrease since March 2023, after an upwardly revised 0.7% increase in December, the Commerce Department's Census Bureau said.
Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, dipping 0.1%.
Retail sales increased 4.2% year-on-year in January.
Much of the country was blanketed by snowstorms and freezing temperatures last month while wildfires scorched entire neighborhoods in Los Angeles.
"The wildfires in Los Angeles, the second-largest metro area in the U.S., and severe winter weather in other parts of the country, may have limited face-to-face shopping activity," said Jay Hawkins, a senior economist at PNC Financial.
Some economists speculated that rising prices and confusion over tariffs could have impacted sales.
Pre-emptive buying in anticipation of tariffs that would raise prices for goods helped to boost retail sales in recent months.
But consumer sentiment has deteriorated, with one-year inflation expectations hitting a 15-month high in early February as households perceived that "it may be too late to avoid the negative impact of tariff policy," a University of Michigan survey of consumers showed last week.
"Maybe people are getting confused on the tariff story and think they are happening immediately and are therefore not even considering a purchase," said James Knightley, chief international economist at ING.
"We will need to wait until the February data to see if this is the start of a more cautious consumer trend or indeed whether it was simply a weather-related pull back."
A 25% tariff on Mexican and Canadian goods was delayed until March.
An additional 10% levy on goods from China went into effect this month.
Trump this week tasked his economics team with devising plans for reciprocal tariffs on every country that taxes U.S. imports.
Stocks on Wall Street were muted on Friday, while the dollar eased against a basket of currencies and U.S. Treasury yields fell.
FED ON HOLD
The data did little to change the view that the Fed will wait until later in the year to next cut its policy rate.
The U.S. central bank left its benchmark overnight interest rate unchanged in the 4.25%-4.50% range in January, having reduced it by 100 basis points since September, when it embarked on its policy easing cycle.
The policy rate was hiked by 5.25 percentage points in 2022 and 2023 to tame inflation.
Within the retail sales figures motor vehicles led the decline, with receipts at auto dealerships dropping 2.8% after advancing 0.9% in December.
In addition to the weather probably keeping buyers from showrooms, shortages could have been a factor.
Other data from the Census Bureau showed retail motor vehicle inventories were depleted in December.
Supply is unlikely to improve, with a third report from the Fed showing motor vehicle production plummeting 5.2% in January.
Sporting goods, hobby, musical instrument and bookstore sales plunged 4.6%.
Online store sales tumbled 1.9%.
Building material store sales fell 1.3%.
There were also sharp declines in sales at furniture, clothing and electronic retailers.
But receipts at food services and drinking places, the only services component in the report, increased 0.9% after edging up 0.1% in December.
Economists view dining out as a key indicator of household finances.
Higher gasoline prices lifted sales at service stations 0.9%.
Spending remains underpinned by labor market resilience, which is keeping wage growth elevated and the economic expansion on track.
Household wealth is at record highs thanks to high house prices, though the stock market has ceded some gains.
Retail sales excluding automobiles, gasoline, building materials and food services declined 0.8% last month after an upwardly revised 0.8% jump in December.
These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product, and were previously reported to have surged 0.7% in December.
Economists estimated inflation-adjusted consumer spending to have been flat or have posted a small dip in January.
Robust consumer spending offset the drag on GDP from inventories being nearly drawn down in the fourth quarter.
The Atlanta Fed lowered its first quarter GDP growth estimate to a 2.3% annualized rate from a 2.9% pace.
The economy grew at a 2.3% rate last quarter.
"The underlying strength of the economy remains largely unchanged," said Tuan Nguyen, U.S. economist at RSM US.
"If that strength persists, we should expect sales to rebound in the coming months."
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama and Toby Chopra
https://www.reuters.com/markets/us/us-r ... 025-02-14/
Re: POLITICS
REUTERS
"Applied Materials gives dour quarterly revenue forecast as export curbs tighten; shares fall"
By Reuters
February 13, 2025
Feb 13 (Reuters) - Applied Materials forecast second-quarter revenue below market estimates on Thursday, expecting escalating geopolitical tensions to weigh on sales of its chipmaking equipment, sending its shares down more than 5% in extended trading.
Revenue from China, Applied's largest market by revenue share in the first quarter, is threatened by tighter U.S. restrictions on exports of chipmaking technology.
Such curbs will hurt 2025 revenue by about $400 million, Chief Executive Officer Gary Dickerson said on a post-earnings call.
Half of this impact will be seen in the second quarter, financial chief Brice Hill said on the call.
This represents about 1.4% of the $29.18 billion analysts expect Applied to record in fiscal 2025 revenue, according to data compiled by LSEG.
The U.S. government said in December that new controls will be placed on the export of semiconductor manufacturing equipment needed to produce advanced-node chips to China.
"The ability of U.S. companies to serve the China market is constrained and has been further limited by updated trade rules," CEO Dickerson said.
Applied Materials forecast second-quarter revenue of about $7.1 billion, plus or minus $400 million, compared with the estimates of $7.21 billion
Half of the impact from trade restrictions to 2025 revenue is expected in the services segment, under which the company provides upkeep and optimization for machinery, the executives said, as the company is unable to address some customers in China.
Sales to China accounted for about 31% of Applied Materials' total first-quarter sales, down from about 45% of total revenue in the year-ago period.
Earlier on Thursday, U.S. President Donald Trump also tasked his economics team with devising a plan to impose reciprocal tariffs on every country that imposes duties on U.S. imports, targeting China, Japan and South Korea — some of Applied's largest markets.
This has offset the positive impact of a rise in demand for advanced chips capable of processing the vast data employed by generative AI.
Applied expects second-quarter adjusted profit of $2.30 per share, plus or minus 18 cents, in line with estimates of $2.30 per share.
The company reported first-quarter revenue of $7.17 billion, beating estimates.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona
https://www.reuters.com/technology/appl ... 025-02-13/
"Applied Materials gives dour quarterly revenue forecast as export curbs tighten; shares fall"
By Reuters
February 13, 2025
Feb 13 (Reuters) - Applied Materials forecast second-quarter revenue below market estimates on Thursday, expecting escalating geopolitical tensions to weigh on sales of its chipmaking equipment, sending its shares down more than 5% in extended trading.
Revenue from China, Applied's largest market by revenue share in the first quarter, is threatened by tighter U.S. restrictions on exports of chipmaking technology.
Such curbs will hurt 2025 revenue by about $400 million, Chief Executive Officer Gary Dickerson said on a post-earnings call.
Half of this impact will be seen in the second quarter, financial chief Brice Hill said on the call.
This represents about 1.4% of the $29.18 billion analysts expect Applied to record in fiscal 2025 revenue, according to data compiled by LSEG.
The U.S. government said in December that new controls will be placed on the export of semiconductor manufacturing equipment needed to produce advanced-node chips to China.
"The ability of U.S. companies to serve the China market is constrained and has been further limited by updated trade rules," CEO Dickerson said.
Applied Materials forecast second-quarter revenue of about $7.1 billion, plus or minus $400 million, compared with the estimates of $7.21 billion
Half of the impact from trade restrictions to 2025 revenue is expected in the services segment, under which the company provides upkeep and optimization for machinery, the executives said, as the company is unable to address some customers in China.
Sales to China accounted for about 31% of Applied Materials' total first-quarter sales, down from about 45% of total revenue in the year-ago period.
Earlier on Thursday, U.S. President Donald Trump also tasked his economics team with devising a plan to impose reciprocal tariffs on every country that imposes duties on U.S. imports, targeting China, Japan and South Korea — some of Applied's largest markets.
This has offset the positive impact of a rise in demand for advanced chips capable of processing the vast data employed by generative AI.
Applied expects second-quarter adjusted profit of $2.30 per share, plus or minus 18 cents, in line with estimates of $2.30 per share.
The company reported first-quarter revenue of $7.17 billion, beating estimates.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona
https://www.reuters.com/technology/appl ... 025-02-13/
Re: POLITICS
REUTERS
"Fed's Logan calls for caution on rate cuts, even if inflation cools"
By Reuters
February 14, 2025
PALM DESERT, California, Feb 14 (Reuters) - Dallas Federal Reserve Bank President Lorie Logan on Friday reiterated her view that even if inflation nears the Fed's 2% goal in coming months, the U.S. central bank should not necessarily reduce short-term borrowing costs in response.
"I think there's a real question about how restrictive monetary policy is right now," Logan said at a banking conference hosted by Southern Methodist University in Palm Desert, California.
"And so I think we need to be cautious."
And, Logan signaled, it remained far from clear if inflation will indeed cool in the near term, noting a pattern in recent years of higher inflation at the start of the year, when companies typically tend to implement price increases.
In January, U.S. consumer inflation rose at the fastest pace in nearly a year and a half, data released this week showed.
In another potential sign of upward inflationary pressures, Logan pointed to bank surveys that reveal a lot of optimism over economic growth and loan demand.
And, she said, the central bank will be watching geopolitics and the still-unclear policies of President Donald Trump's administration.
Meanwhile, the labor market has been strong, with the unemployment rate in January ticking down to 4.1%.
"I think we're in a good position right now to watch the data over the coming months... and taking our time to really go look at the data and see how these potential changes are to evolve," she said.
Logan said she has her eye on the recent rise in long-term borrowing costs, which she attributed to expectations for stronger growth ahead and possibly also to worries about inflation.
For now, she said, she does not see financial conditions broadly as being so tight as to require the Fed to respond by cutting rates.
"That's not where we are right now," Logan said.
"What I'm most focused on is making sure that...inflation is at our 2% target."
Reporting by Ann Saphir; Editing by Leslie Adler and David Gregorio
https://www.reuters.com/markets/us/feds ... 025-02-14/
"Fed's Logan calls for caution on rate cuts, even if inflation cools"
By Reuters
February 14, 2025
PALM DESERT, California, Feb 14 (Reuters) - Dallas Federal Reserve Bank President Lorie Logan on Friday reiterated her view that even if inflation nears the Fed's 2% goal in coming months, the U.S. central bank should not necessarily reduce short-term borrowing costs in response.
"I think there's a real question about how restrictive monetary policy is right now," Logan said at a banking conference hosted by Southern Methodist University in Palm Desert, California.
"And so I think we need to be cautious."
And, Logan signaled, it remained far from clear if inflation will indeed cool in the near term, noting a pattern in recent years of higher inflation at the start of the year, when companies typically tend to implement price increases.
In January, U.S. consumer inflation rose at the fastest pace in nearly a year and a half, data released this week showed.
In another potential sign of upward inflationary pressures, Logan pointed to bank surveys that reveal a lot of optimism over economic growth and loan demand.
And, she said, the central bank will be watching geopolitics and the still-unclear policies of President Donald Trump's administration.
Meanwhile, the labor market has been strong, with the unemployment rate in January ticking down to 4.1%.
"I think we're in a good position right now to watch the data over the coming months... and taking our time to really go look at the data and see how these potential changes are to evolve," she said.
Logan said she has her eye on the recent rise in long-term borrowing costs, which she attributed to expectations for stronger growth ahead and possibly also to worries about inflation.
For now, she said, she does not see financial conditions broadly as being so tight as to require the Fed to respond by cutting rates.
"That's not where we are right now," Logan said.
"What I'm most focused on is making sure that...inflation is at our 2% target."
Reporting by Ann Saphir; Editing by Leslie Adler and David Gregorio
https://www.reuters.com/markets/us/feds ... 025-02-14/
Re: POLITICS
REUTERS
"US manufacturing output falls in January on weak motor vehicle production"
By Reuters
February 14, 2025
WASHINGTON, Feb 14 (Reuters) - U.S. manufacturing production unexpectedly fell in January, weighed down by a sharp decline in motor vehicle output.
Factory output dipped 0.1% last month after a downwardly revised 0.5% rebound in December, the Federal Reserve said on Friday.
Economists polled by Reuters had forecast production edging up 0.1% after a previously reported 0.6% surge.
Production at factories increased 1.0% on a year-on-year basis in January.
Manufacturing, which accounts for 10.3% of the economy, has been recovering as the U.S. central bank started cutting interest rates in September.
But the nascent recovery is threatened by President Donald Trump's protectionist trade policy, which economists have warned would fracture supply chains and create shortages that raise raw material prices.
A 10% additional tariff on Chinese goods was imposed this month while a 25% levy on imports from Canada and Mexico was suspended until March.
A 25% tariff on all steel and aluminum imports goes into effect next month.
Uncertainty over the economic impact of the Trump administration's policies, including tax cuts and mass deportations, has diminished the chances of the Fed resuming rate cuts after pausing in January.
Motor vehicle and parts output plunged 5.2% last month.
Durable manufacturing production was unchanged as the weakness in motor vehicle output offset a 6.0% increase in aerospace and miscellaneous transportation equipment.
This category continues to recover following a crippling strike Boeing factory workers in late 2024.
Nondurable manufacturing production fell 0.3% amid declines in the output of food, beverage and tobacco, printing and support as well as petroleum and coal, and plastics and rubber products.
Mining output dropped 1.2% after rising 2.0% in December.
Utilities production surged 7.2% as freezing temperatures boosted demand for heating.
That followed a 2.9% rebound in December.
Industrial production rose 0.5% last month after surging 1.0% in December.
It advanced 2.0% year-on-year in January.
Capacity utilization for the industrial sector, a measure of how fully firms are using their resources, rose to 77.8% from 77.5% in December.
It is 1.8 percentage points below its 1972–2024 average.
The operating rate for the manufacturing sector slipped 0.1 percentage to 76.3%.
It is 1.9 percentage points below its long-run average.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/us-m ... 025-02-14/
"US manufacturing output falls in January on weak motor vehicle production"
By Reuters
February 14, 2025
WASHINGTON, Feb 14 (Reuters) - U.S. manufacturing production unexpectedly fell in January, weighed down by a sharp decline in motor vehicle output.
Factory output dipped 0.1% last month after a downwardly revised 0.5% rebound in December, the Federal Reserve said on Friday.
Economists polled by Reuters had forecast production edging up 0.1% after a previously reported 0.6% surge.
Production at factories increased 1.0% on a year-on-year basis in January.
Manufacturing, which accounts for 10.3% of the economy, has been recovering as the U.S. central bank started cutting interest rates in September.
But the nascent recovery is threatened by President Donald Trump's protectionist trade policy, which economists have warned would fracture supply chains and create shortages that raise raw material prices.
A 10% additional tariff on Chinese goods was imposed this month while a 25% levy on imports from Canada and Mexico was suspended until March.
A 25% tariff on all steel and aluminum imports goes into effect next month.
Uncertainty over the economic impact of the Trump administration's policies, including tax cuts and mass deportations, has diminished the chances of the Fed resuming rate cuts after pausing in January.
Motor vehicle and parts output plunged 5.2% last month.
Durable manufacturing production was unchanged as the weakness in motor vehicle output offset a 6.0% increase in aerospace and miscellaneous transportation equipment.
This category continues to recover following a crippling strike Boeing factory workers in late 2024.
Nondurable manufacturing production fell 0.3% amid declines in the output of food, beverage and tobacco, printing and support as well as petroleum and coal, and plastics and rubber products.
Mining output dropped 1.2% after rising 2.0% in December.
Utilities production surged 7.2% as freezing temperatures boosted demand for heating.
That followed a 2.9% rebound in December.
Industrial production rose 0.5% last month after surging 1.0% in December.
It advanced 2.0% year-on-year in January.
Capacity utilization for the industrial sector, a measure of how fully firms are using their resources, rose to 77.8% from 77.5% in December.
It is 1.8 percentage points below its 1972–2024 average.
The operating rate for the manufacturing sector slipped 0.1 percentage to 76.3%.
It is 1.9 percentage points below its long-run average.
Reporting by Lucia Mutikani; Editing by Chizu Nomiyama
https://www.reuters.com/markets/us/us-m ... 025-02-14/
Re: POLITICS
REUTERS
"Trump would not support foreign firm operating Intel's US factories -White House official"
By Arsheeya Bajwa
February 14, 2025
Feb 14 (Reuters) - President Donald Trump's administration likely would not support Intel's U.S. chip factories being operated by a foreign entity, a White House official told Reuters.
The comments came after Bloomberg reported that Taiwan's TSMC, the world's biggest chipmaker, is considering taking a controlling stake in Intel's factories at Trump's request.
The White House official said the Trump administration supports foreign companies investing and building in the U.S. but is "unlikely" to support a foreign firm operating Intel's factories.
Earlier, Bloomberg had reported that Trump's team raised the idea of a deal between the two firms in recent meetings with officials from TSMC, and they were receptive, citing a person familiar with the matter.
The talks are in very early stages, and the exact structure of a potential partnership has not been established.
But the expected result would have TSMC fully operating Intel's U.S. semiconductor factories, Bloomberg reported.
Such a deal could throw a financial lifeline to Intel, which has struggled to restore its lost chipmaking glory as it failed to capitalize on an AI boom and poured billions of dollars into becoming a contract chip manufacturer - a transformation that is yet to materialize.
Intel shares closed down 2.2% on Friday, while TSMC's U.S.-listed shares closed up about 1%.
"Combining TSMC's expertise and engineers with Intel's infrastructure could help kick-start President Trump's dream of having the U.S. become the center of the chip universe," said Brian Jacobsen, chief economist at Annex Wealth Management.
But such a deal would need deep concessions on both sides.
Should TSMC accept an arrangement to run Intel's factories, it would have to make significant changes to the U.S. chipmaker's operations because each chip manufacturer has distinct methods and techniques for operating factories.
To operate Intel's fabs, TSMC would also likely need to reveal some of its secret techniques and processes to Intel employees.
On its part, Intel would have to concede the fact that its manufacturing operations would become a totally different entity, likely with a completely different work culture.
As well, TSMC fully operating Intel's factories, known as fabs, also raises questions about Intel's key strategy of manufacturing the chips it has designed.
Most chipmakers are "fabless" - outsourcing to the likes of TSMC, which offers considerable cost savings.
"If Intel moves down this path, you focus on being a semiconductor design company."
"So you end up looking more like a Broadcom or a Marvell or an AMD," Wedbush Securities analyst Matthew Bryson said.
TSMC and Intel declined to comment.
The White House did not immediately respond to a Reuters request for comment.
TARIFF EXEMPTIONS?
Intel, which ceded its manufacturing technology edge to TSMC, is among a few chipmakers that both design and manufacture semiconductors.
TSMC is now the world's largest contract chipmaker which boasts a market valuation about eight times larger than that of Intel.
The Taiwanese contract chipmaker, whose customers include AI chip leader Nvidia and AMD, which has consistently eaten into Intel's share of the personal computer chip and server central processor market.
"Ironically, enough, TSMC might look for some tariff exemptions in order to make this happen and allow for efficient and effective flow of equipment and materials," said Michael Ashley Schulman, chief investment officer at Running Point Capital.
Trump tasked his economics team on Thursday to come up with plans for reciprocal tariffs on every country taxing U.S. imports, ramping up prospects for a global trade war.
Former Intel CEO Pat Gelsinger, who was ousted last year, set sky-high expectations for Intel's manufacturing and AI capabilities among major clients but fell short, losing or canceling contracts, Reuters had previously reported.
Intel's shares lost about 60% of their value last year as the capital-intensive bid to bolster manufacturing - a strategy championed by Gelsinger - strained the company's cash flow and ultimately led to it cutting about 15% of its workforce.
The success of Intel's 18A chipmaking technology, slated for this year, is key to the company's manufacturing ambitions
It is unclear whether Intel is open to a transaction, according to the report.
The arrangement may involve having major American chip designers take equity stakes, along with support from the U.S. government, Bloomberg reported, adding that it meant the venture would not solely be owned by a foreign company.
Intel is among the largest beneficiaries of the United States' push to onshore critical chip manufacturing.
Under the previous administration, the U.S. Commerce Department in November said it was finalizing a $7.86 billion government subsidy for Intel.
Reporting by Arsheeya Bajwa, Akash Sriram and Ananya Mariam Rajesh in Bengaluru, Max A. Cherney in San Francisco and Juby Babu in Mexico City; Editing by Anil D'Silva
https://www.reuters.com/technology/tsmc ... 025-02-14/
"Trump would not support foreign firm operating Intel's US factories -White House official"
By Arsheeya Bajwa
February 14, 2025
Feb 14 (Reuters) - President Donald Trump's administration likely would not support Intel's U.S. chip factories being operated by a foreign entity, a White House official told Reuters.
The comments came after Bloomberg reported that Taiwan's TSMC, the world's biggest chipmaker, is considering taking a controlling stake in Intel's factories at Trump's request.
The White House official said the Trump administration supports foreign companies investing and building in the U.S. but is "unlikely" to support a foreign firm operating Intel's factories.
Earlier, Bloomberg had reported that Trump's team raised the idea of a deal between the two firms in recent meetings with officials from TSMC, and they were receptive, citing a person familiar with the matter.
The talks are in very early stages, and the exact structure of a potential partnership has not been established.
But the expected result would have TSMC fully operating Intel's U.S. semiconductor factories, Bloomberg reported.
Such a deal could throw a financial lifeline to Intel, which has struggled to restore its lost chipmaking glory as it failed to capitalize on an AI boom and poured billions of dollars into becoming a contract chip manufacturer - a transformation that is yet to materialize.
Intel shares closed down 2.2% on Friday, while TSMC's U.S.-listed shares closed up about 1%.
"Combining TSMC's expertise and engineers with Intel's infrastructure could help kick-start President Trump's dream of having the U.S. become the center of the chip universe," said Brian Jacobsen, chief economist at Annex Wealth Management.
But such a deal would need deep concessions on both sides.
Should TSMC accept an arrangement to run Intel's factories, it would have to make significant changes to the U.S. chipmaker's operations because each chip manufacturer has distinct methods and techniques for operating factories.
To operate Intel's fabs, TSMC would also likely need to reveal some of its secret techniques and processes to Intel employees.
On its part, Intel would have to concede the fact that its manufacturing operations would become a totally different entity, likely with a completely different work culture.
As well, TSMC fully operating Intel's factories, known as fabs, also raises questions about Intel's key strategy of manufacturing the chips it has designed.
Most chipmakers are "fabless" - outsourcing to the likes of TSMC, which offers considerable cost savings.
"If Intel moves down this path, you focus on being a semiconductor design company."
"So you end up looking more like a Broadcom or a Marvell or an AMD," Wedbush Securities analyst Matthew Bryson said.
TSMC and Intel declined to comment.
The White House did not immediately respond to a Reuters request for comment.
TARIFF EXEMPTIONS?
Intel, which ceded its manufacturing technology edge to TSMC, is among a few chipmakers that both design and manufacture semiconductors.
TSMC is now the world's largest contract chipmaker which boasts a market valuation about eight times larger than that of Intel.
The Taiwanese contract chipmaker, whose customers include AI chip leader Nvidia and AMD, which has consistently eaten into Intel's share of the personal computer chip and server central processor market.
"Ironically, enough, TSMC might look for some tariff exemptions in order to make this happen and allow for efficient and effective flow of equipment and materials," said Michael Ashley Schulman, chief investment officer at Running Point Capital.
Trump tasked his economics team on Thursday to come up with plans for reciprocal tariffs on every country taxing U.S. imports, ramping up prospects for a global trade war.
Former Intel CEO Pat Gelsinger, who was ousted last year, set sky-high expectations for Intel's manufacturing and AI capabilities among major clients but fell short, losing or canceling contracts, Reuters had previously reported.
Intel's shares lost about 60% of their value last year as the capital-intensive bid to bolster manufacturing - a strategy championed by Gelsinger - strained the company's cash flow and ultimately led to it cutting about 15% of its workforce.
The success of Intel's 18A chipmaking technology, slated for this year, is key to the company's manufacturing ambitions
It is unclear whether Intel is open to a transaction, according to the report.
The arrangement may involve having major American chip designers take equity stakes, along with support from the U.S. government, Bloomberg reported, adding that it meant the venture would not solely be owned by a foreign company.
Intel is among the largest beneficiaries of the United States' push to onshore critical chip manufacturing.
Under the previous administration, the U.S. Commerce Department in November said it was finalizing a $7.86 billion government subsidy for Intel.
Reporting by Arsheeya Bajwa, Akash Sriram and Ananya Mariam Rajesh in Bengaluru, Max A. Cherney in San Francisco and Juby Babu in Mexico City; Editing by Anil D'Silva
https://www.reuters.com/technology/tsmc ... 025-02-14/
Re: POLITICS
REUTERS
"FACTBOX China's AI firms take spotlight with deals, low-cost models"
By Reuters
February 14, 2025
BEIJING, Feb 14 (Reuters) - Alibaba's announcement this week that it will partner with Apple to support iPhones' artificial intelligence services offering in China has again thrust the spotlight on the country's AI industry on the heels of DeepSeek.
Following are some of the prominent AI services and their developers to watch in China.
DOUBAO
Developed by ByteDance, a latecomer to the large language model (LLM) market, the namesake chatbot is the most popular consumer AI app in China.
The company's latest LLM, Doubao-1.5-pro, was released in January and outperforms ChatGPT's GPT-4 in some metrics.
ByteDance is among the leaders in developing cost-effective LLMs, and its offering is the cheapest available in the market, even more affordable than DeepSeek, according to a Barclays report.
Doubao-1.5 was priced at only 3% to 4% of GPT-4's pricing.
ByteDance's low-cost advantage is attributed to its use of the "mixture of experts" (MoE) framework, which is common among various AI models in China, including those of DeepSeek.
QWEN
Developed by e-commerce giant Alibaba, Qwen is the company's flagship LLM and chatbot.
It was released in March 2023 and has been rated among the top-tier in global benchmarks.
In January, Alibaba released Qwen 2.5-Max and claimed its functionality surpassed that of highly-acclaimed DeepSeek-V3.
A strong advocate of open AI development, Alibaba announced in September that many of its AI models would be made open-source.
ERNIE
Chinese search giant Baidu was among the first in China to launch a ChatGPT equivalent, Ernie Bot.
Baidu claims its latest model, Ernie 4.0, matches the capabilities of GPT-4.
On February 14, Baidu announced a plan to make its next-generation LLM, Ernie 4.5, open-source from June 30, a major shift in strategy as competition heats up.
HUNYUAN
Tencent released its flagship model Hunyuan in September and launched its chatbot, Yuanbao, in May 2024.
The company's massive user base, acquired through its popular consumer apps like WeChat, gives Tencent a significant potential advantage in pushing out consumer applications in the future.
Tencent also offers open-source models and advocates for open-source development.
Another advantage of Hunyuan is its focus on multi-modality, which includes text, image, and video generation capabilities.
GLM
Zhipu AI developed GLM and claims its latest LLM, GLM4, outperforms GPT-4 in some metrics.
Initially born out of a Tsinghua University laboratory, Zhipu counts Alibaba, Tencent, and the state-owned fund Zhongguancun Science City Innovation Development among its backers.
In January, the U.S. Commerce Department placed Zhipu on an export control entity list.
KIMI
It was developed by Moonshot, which is backed by the likes of Alibaba, Tencent, and Hongshan.
Its chatbot Kimi is known for its long-context processing technology and the company claims the model supports two million input tokens, or units of words, for each query.
On January 20, just two days before DeepSeek released the R1 model, Moonshot unveiled its own reasoning model, Kimi 1.5.
MINIMAX
Minimax is a pioneer among Chinese firms in researching the MoE framework and it open-sourced its most advanced model, MiniMax-01, in January.
MiniMax was founded in December 2021, well before the AI craze sparked by the launch of OpenAI's ChatGPT.
It is backed by Alibaba and other prominent investors, including Hongshan, Gaorong Capital, and IDG.
In addition to LLMs, MiniMax has gained recognition for its social consumer apps, such as Takie and Xingye.
01.AI
Similar to DeepSeek, 01.AI has adopted an open-source approach and pioneered the MoE framework.
The company claims that its models are trained with fewer resources and have a cost-effective advantage, achieving the lowest cost level of LLM inference in the industry, 1/40 less than GPT-4's list price.
Its founder Kai-Fu Lee, a former head of Google China, said recently in a written interview with Reuters that 01.AI has formed a joint partnership with Alibaba to create a lab focused on continuing the development of LLM technologies.
The company is backed by companies like Alibaba and Sinovation Ventures.
BAICHUAN
Baichuan was founded in April 2023 by a team of former executives from the search engine Sogou, including founder and CEO Wang Xiaochuan, who previously served as the CEO of Sogou.
The company gained recognition in June 2023 by becoming the first in China to launch an open-source model.
Reporting by Liam Mo and Brenda Goh; Editing by Miyoung Kim and Sharon Singleton
https://www.reuters.com/technology/arti ... 025-02-14/
"FACTBOX China's AI firms take spotlight with deals, low-cost models"
By Reuters
February 14, 2025
BEIJING, Feb 14 (Reuters) - Alibaba's announcement this week that it will partner with Apple to support iPhones' artificial intelligence services offering in China has again thrust the spotlight on the country's AI industry on the heels of DeepSeek.
Following are some of the prominent AI services and their developers to watch in China.
DOUBAO
Developed by ByteDance, a latecomer to the large language model (LLM) market, the namesake chatbot is the most popular consumer AI app in China.
The company's latest LLM, Doubao-1.5-pro, was released in January and outperforms ChatGPT's GPT-4 in some metrics.
ByteDance is among the leaders in developing cost-effective LLMs, and its offering is the cheapest available in the market, even more affordable than DeepSeek, according to a Barclays report.
Doubao-1.5 was priced at only 3% to 4% of GPT-4's pricing.
ByteDance's low-cost advantage is attributed to its use of the "mixture of experts" (MoE) framework, which is common among various AI models in China, including those of DeepSeek.
QWEN
Developed by e-commerce giant Alibaba, Qwen is the company's flagship LLM and chatbot.
It was released in March 2023 and has been rated among the top-tier in global benchmarks.
In January, Alibaba released Qwen 2.5-Max and claimed its functionality surpassed that of highly-acclaimed DeepSeek-V3.
A strong advocate of open AI development, Alibaba announced in September that many of its AI models would be made open-source.
ERNIE
Chinese search giant Baidu was among the first in China to launch a ChatGPT equivalent, Ernie Bot.
Baidu claims its latest model, Ernie 4.0, matches the capabilities of GPT-4.
On February 14, Baidu announced a plan to make its next-generation LLM, Ernie 4.5, open-source from June 30, a major shift in strategy as competition heats up.
HUNYUAN
Tencent released its flagship model Hunyuan in September and launched its chatbot, Yuanbao, in May 2024.
The company's massive user base, acquired through its popular consumer apps like WeChat, gives Tencent a significant potential advantage in pushing out consumer applications in the future.
Tencent also offers open-source models and advocates for open-source development.
Another advantage of Hunyuan is its focus on multi-modality, which includes text, image, and video generation capabilities.
GLM
Zhipu AI developed GLM and claims its latest LLM, GLM4, outperforms GPT-4 in some metrics.
Initially born out of a Tsinghua University laboratory, Zhipu counts Alibaba, Tencent, and the state-owned fund Zhongguancun Science City Innovation Development among its backers.
In January, the U.S. Commerce Department placed Zhipu on an export control entity list.
KIMI
It was developed by Moonshot, which is backed by the likes of Alibaba, Tencent, and Hongshan.
Its chatbot Kimi is known for its long-context processing technology and the company claims the model supports two million input tokens, or units of words, for each query.
On January 20, just two days before DeepSeek released the R1 model, Moonshot unveiled its own reasoning model, Kimi 1.5.
MINIMAX
Minimax is a pioneer among Chinese firms in researching the MoE framework and it open-sourced its most advanced model, MiniMax-01, in January.
MiniMax was founded in December 2021, well before the AI craze sparked by the launch of OpenAI's ChatGPT.
It is backed by Alibaba and other prominent investors, including Hongshan, Gaorong Capital, and IDG.
In addition to LLMs, MiniMax has gained recognition for its social consumer apps, such as Takie and Xingye.
01.AI
Similar to DeepSeek, 01.AI has adopted an open-source approach and pioneered the MoE framework.
The company claims that its models are trained with fewer resources and have a cost-effective advantage, achieving the lowest cost level of LLM inference in the industry, 1/40 less than GPT-4's list price.
Its founder Kai-Fu Lee, a former head of Google China, said recently in a written interview with Reuters that 01.AI has formed a joint partnership with Alibaba to create a lab focused on continuing the development of LLM technologies.
The company is backed by companies like Alibaba and Sinovation Ventures.
BAICHUAN
Baichuan was founded in April 2023 by a team of former executives from the search engine Sogou, including founder and CEO Wang Xiaochuan, who previously served as the CEO of Sogou.
The company gained recognition in June 2023 by becoming the first in China to launch an open-source model.
Reporting by Liam Mo and Brenda Goh; Editing by Miyoung Kim and Sharon Singleton
https://www.reuters.com/technology/arti ... 025-02-14/
Re: POLITICS
REUTERS
"Taiwan's GlobalWafers says US investments progressing as planned"
By Wen-Yee Lee
February 14, 2025
HSINCHU, Taiwan, Feb 14 (Reuters) - Taiwan's GlobalWafers said on Friday its investments in the United States were proceeding as planned as the company had not been notified of changes to agreed subsidies under the U.S. CHIPS Act.
The U.S. Commerce Department said in December it had finalised $406 million in government grants to GlobalWafers for projects in Texas and Missouri to significantly increase production of silicon wafers in the United States.
U.S. President Donald Trump's new administration, however, is seeking to renegotiate U.S. CHIPS and Science Act awards and has signalled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told Reuters.
GlobalWafers had previously told Reuters that the CHIPS Program Office had told the company that certain conditions that do not align with Trump's executive orders and policies are under review for all CHIPS Direct Funding Agreements.
It also said it had not been notified directly by Washington of any changes to the conditions or terms of its awards.
Speaking to reporters in Taiwan's chip hub of Hsinchu, GlobalWafers CEO Doris Hsu repeated that the company had not received any notifications of upcoming modifications but that if the CHIPS act was indeed modified it would need to reassess.
"We don't know what will happen, but if the CHIPS Act is indeed modified and we are affected, we will need to reassess our subsequent investments," Hsu added.
That would involve evaluating demand in the United States and prices that can be tolerated there, and whether it would be more beneficial for GlobalWafers to expand in the United States or produce in Taiwan, considering possible tariffs, she said.
"However, at this moment, everything is hypothetical and hasn't happened yet, as we haven't received any notification about required actions."
"For now, everything is proceeding according to the original plan."
GlobalWafers has secured contracts worth $406 million, she added.
The company has not received the funding from the United States yet, but that is because it needs to reach specific milestones this year, Hsu said.
"We have a first milestone to achieve, and once we reach it, we will submit the necessary documentation to the relevant authorities for review," Hsu said.
The company is not changing its U.S. expansion plan, which is under way at three plants across the country, she added.
Asked about the impact of U.S. import tariffs, which Trump has threatened to roll out across the board, Hsu said GlobalWafers was well positioned due to its existing three factories in the United States and its global presence.
"This provides us with more strategies to cope with potential tariff impacts," she said.
Reporting by Wen-Yee Lee; Writing by Ben Blanchard; Editing by Jacqueline Wong, Gerry Doyle and Susan Fenton
https://www.reuters.com/technology/taiw ... 025-02-14/
"Taiwan's GlobalWafers says US investments progressing as planned"
By Wen-Yee Lee
February 14, 2025
HSINCHU, Taiwan, Feb 14 (Reuters) - Taiwan's GlobalWafers said on Friday its investments in the United States were proceeding as planned as the company had not been notified of changes to agreed subsidies under the U.S. CHIPS Act.
The U.S. Commerce Department said in December it had finalised $406 million in government grants to GlobalWafers for projects in Texas and Missouri to significantly increase production of silicon wafers in the United States.
U.S. President Donald Trump's new administration, however, is seeking to renegotiate U.S. CHIPS and Science Act awards and has signalled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told Reuters.
GlobalWafers had previously told Reuters that the CHIPS Program Office had told the company that certain conditions that do not align with Trump's executive orders and policies are under review for all CHIPS Direct Funding Agreements.
It also said it had not been notified directly by Washington of any changes to the conditions or terms of its awards.
Speaking to reporters in Taiwan's chip hub of Hsinchu, GlobalWafers CEO Doris Hsu repeated that the company had not received any notifications of upcoming modifications but that if the CHIPS act was indeed modified it would need to reassess.
"We don't know what will happen, but if the CHIPS Act is indeed modified and we are affected, we will need to reassess our subsequent investments," Hsu added.
That would involve evaluating demand in the United States and prices that can be tolerated there, and whether it would be more beneficial for GlobalWafers to expand in the United States or produce in Taiwan, considering possible tariffs, she said.
"However, at this moment, everything is hypothetical and hasn't happened yet, as we haven't received any notification about required actions."
"For now, everything is proceeding according to the original plan."
GlobalWafers has secured contracts worth $406 million, she added.
The company has not received the funding from the United States yet, but that is because it needs to reach specific milestones this year, Hsu said.
"We have a first milestone to achieve, and once we reach it, we will submit the necessary documentation to the relevant authorities for review," Hsu said.
The company is not changing its U.S. expansion plan, which is under way at three plants across the country, she added.
Asked about the impact of U.S. import tariffs, which Trump has threatened to roll out across the board, Hsu said GlobalWafers was well positioned due to its existing three factories in the United States and its global presence.
"This provides us with more strategies to cope with potential tariff impacts," she said.
Reporting by Wen-Yee Lee; Writing by Ben Blanchard; Editing by Jacqueline Wong, Gerry Doyle and Susan Fenton
https://www.reuters.com/technology/taiw ... 025-02-14/
Re: POLITICS
"Number of older NY residents in poverty jumps 50% - New York's aging population is increasingly less financially stable as the state deals with a cost-of-living crisis"
By Raga Justin, Capitol Bureau, Albany, New York Times Union
Updated Feb 10, 2025 7:28 a.m.
ALBANY — The economic conditions that have tightened household budgets for many Americans have hit older adults especially hard, with the number of people in that age category who are living in poverty in New York jumping nearly 50% in the last decade, according to a report released Monday.
Researchers with the New York City-based think tank Center for an Urban Future said New York’s aging population is increasingly less financially stable as the state deals with a cost-of-living crisis; certain Capital Region counties have seen an especially “astonishing” growth in the number of impoverished senior residents.
“We’re really on the verge of a financial security crisis for older adults,” said Jonathan Bowles, the organization’s director and a co-author of the report.
“I’m really afraid that we’re going to see thousands more people working into their 70s — not because they want to, but because their retirement income is inadequate to meet their growing expenses of living in New York.”
The findings come as New York lawmakers have made the cost-of-living issue a top priority this year, spurred in part by widespread voter dissatisfaction that was apparent in November's elections, as well as pesky inflation and relatively stagnant wages.
But some advocates and researchers have proffered that no population has felt the brunt more than those aged 65 and older.
That population has also steadily increased within the last decade.
According to the report, based on information provided in American Community Surveys in 2012 and 2022, there are now more than 3.5 million older adults in New York, a nearly 30% increase within the past decade.
Overall, older New Yorkers comprise 18% of the state’s population.
That mirrors national and worldwide trends, which demographers attribute at least in part to access to better health care, allowing people to live longer, coupled with declining birth rates in many parts of the world.
But the number of older New Yorkers living below the poverty line has increased as well by nearly 50%, or 422,945 people.
The federal poverty line is set as an annual income under $16,000.
Around 49% of adults over the age of 70 reported zero retirement income, Bowles said.
Simultaneously, the number of older adults who have kept jobs or returned to work has increased by nearly 54% since 2012, a much higher increase than those under the age of 65.
The report points to adults living longer and healthier lives who may choose to continue their careers.
But it suggests that many residents are forced to continue working in order to keep pace with rising costs.
“People haven’t generated enough savings, and they don’t have income coming in, whether it’s through work, through self-employment, through investments,” Bowles said.
Many of those New Yorkers are foreign-born, Bowles said.
While New York City contains the most populous counties in the state, upstate counties have notched surprisingly sharp increases in the number of those living in poverty.
Rensselaer County had a 257% increase in impoverished older residents, according to the report.
Advocates have contended that the issues plaguing older residents have not been a major focus for state lawmakers who are trying to reshape New York as an attractive place for younger families and middle-aged people to raise children and secure well-paid jobs.
New York has seen a massive exodus of those residents to relatively cheaper states in the past several years, many of whom have cited the state’s high cost of living.
But older residents are often more embedded in their communities, particularly in suburban and rural areas, and are less likely to move.
“It’s striking how overlooked older adults have been in state policymaking,” Bowles said, pointing to relatively stagnant funding directed through the state Office of the Aging.
He and advocates with the AARP, an aging advocacy group that supported the report, have called for a multi-agency initiative to streamline the access that elderly residents have to federal and state government benefits.
They also say that the age eligibility for the Earned Income Tax Credit be increased so that older employees can take advantage of the break as well.
https://www.timesunion.com/state/articl ... 0headlines
By Raga Justin, Capitol Bureau, Albany, New York Times Union
Updated Feb 10, 2025 7:28 a.m.
ALBANY — The economic conditions that have tightened household budgets for many Americans have hit older adults especially hard, with the number of people in that age category who are living in poverty in New York jumping nearly 50% in the last decade, according to a report released Monday.
Researchers with the New York City-based think tank Center for an Urban Future said New York’s aging population is increasingly less financially stable as the state deals with a cost-of-living crisis; certain Capital Region counties have seen an especially “astonishing” growth in the number of impoverished senior residents.
“We’re really on the verge of a financial security crisis for older adults,” said Jonathan Bowles, the organization’s director and a co-author of the report.
“I’m really afraid that we’re going to see thousands more people working into their 70s — not because they want to, but because their retirement income is inadequate to meet their growing expenses of living in New York.”
The findings come as New York lawmakers have made the cost-of-living issue a top priority this year, spurred in part by widespread voter dissatisfaction that was apparent in November's elections, as well as pesky inflation and relatively stagnant wages.
But some advocates and researchers have proffered that no population has felt the brunt more than those aged 65 and older.
That population has also steadily increased within the last decade.
According to the report, based on information provided in American Community Surveys in 2012 and 2022, there are now more than 3.5 million older adults in New York, a nearly 30% increase within the past decade.
Overall, older New Yorkers comprise 18% of the state’s population.
That mirrors national and worldwide trends, which demographers attribute at least in part to access to better health care, allowing people to live longer, coupled with declining birth rates in many parts of the world.
But the number of older New Yorkers living below the poverty line has increased as well by nearly 50%, or 422,945 people.
The federal poverty line is set as an annual income under $16,000.
Around 49% of adults over the age of 70 reported zero retirement income, Bowles said.
Simultaneously, the number of older adults who have kept jobs or returned to work has increased by nearly 54% since 2012, a much higher increase than those under the age of 65.
The report points to adults living longer and healthier lives who may choose to continue their careers.
But it suggests that many residents are forced to continue working in order to keep pace with rising costs.
“People haven’t generated enough savings, and they don’t have income coming in, whether it’s through work, through self-employment, through investments,” Bowles said.
Many of those New Yorkers are foreign-born, Bowles said.
While New York City contains the most populous counties in the state, upstate counties have notched surprisingly sharp increases in the number of those living in poverty.
Rensselaer County had a 257% increase in impoverished older residents, according to the report.
Advocates have contended that the issues plaguing older residents have not been a major focus for state lawmakers who are trying to reshape New York as an attractive place for younger families and middle-aged people to raise children and secure well-paid jobs.
New York has seen a massive exodus of those residents to relatively cheaper states in the past several years, many of whom have cited the state’s high cost of living.
But older residents are often more embedded in their communities, particularly in suburban and rural areas, and are less likely to move.
“It’s striking how overlooked older adults have been in state policymaking,” Bowles said, pointing to relatively stagnant funding directed through the state Office of the Aging.
He and advocates with the AARP, an aging advocacy group that supported the report, have called for a multi-agency initiative to streamline the access that elderly residents have to federal and state government benefits.
They also say that the age eligibility for the Earned Income Tax Credit be increased so that older employees can take advantage of the break as well.
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