Technology

U.S. high-tech chip curb risks lower-tech blowback

11 Oct 2022

Washington’s export controls hinder China from developing advanced semiconductors needed for supercomputers and the like. But the ban may prompt Chinese chipmakers to hasten their progress in the commoditised parts of the market, embedding firms like SMIC in global supply chains.

Ticktock starts on Twitter’s board, too

7 Oct 2022

Elon Musk hasn’t closed his $44 bln deal for the social media firm. He hasn’t gone to court either. Whether it’s debt, legal liabilities or other nuances holding things up, it doesn’t matter. The more time ticks without real consequences for Musk, the worse Twitter’s board looks.

Capital Calls: U.S. jobs

7 Oct 2022

Concise views on global finance: Employment numbers reported Friday show a robust market. But just like a sudden glut of inventory inflicting major retailers, businesses could find themselves overflowing with employees, too.

Best destination for SoftBank’s Arm IPO is nowhere

7 Oct 2022

Boss Masayoshi Son would prefer to list the chip designer, now probably worth around $20 bln, in the United States. The UK government hopes to lure it to London. Valuations may not differ that much. But cooling chip sales and choppy markets mean SoftBank would be wiser to wait.

Samsung stares at use-it-or-lose-it cash dilemma

7 Oct 2022

Cooling demand for chips and smartphones hit operating profit at the South Korean trade bellwether. It’s trying to catch up to rivals on multiple fronts, and a crashing won cuts the cheque it could write for overseas M&A. Deploying its $77 bln war chest is getting trickier.

Musk’s messy Twitter deal could have an X-factor

5 Oct 2022

The billionaire’s on-again $44 bln acquisition will be financially burdensome, for him and his bankers. But look past that immediate challenge, and it’s possible Musk could tie Twitter to Tesla and SpaceX and do something game-changing. If, that is, his attention doesn’t wander.

Naver’s $1.2 bln U.S. bet tests investor limits

5 Oct 2022

They wiped $3 bln off the South Korean e-commerce giant’s market value after its swoop for struggling online marketplace Poshmark. Naver boss Choi Soo-Yeon reckons she can turn her target’s fortunes around. But amid crashing markets and slowing growth, the deal looks ill-timed.

Vodafone’s UK merger plan has cost-of-living catch

3 Oct 2022

The $32 bln telecoms group and Hong Kong’s CK Hutchison are in talks to merge their British operations. A deal could unlock cost savings, but shareholders so far seem unenthused. It may be harder for watchdogs to accept lower competition while customers reel from higher prices.

Capital Calls: Tesla greases supply-chain fears

3 Oct 2022

Concise views on global finance: The $760 bln electric-car maker manufactured more vehicles in the third quarter but delivered fewer than analysts were expecting, raising fresh concerns about the industry’s ability to get production running smoothly again.

Meta dethrones employees, elevates investors

30 Sep 2022

Facebook’s parent announced a hiring freeze and warned of restructuring. That’s reasonable for a firm exposed to an advertising slowdown. But Zuckerberg, who controls Meta, doesn’t have to care as much about profit. His decision spells trouble for Silicon Valley writ large.

Capital Calls: Google and gaming

30 Sep 2022

Concise views on global finance: The search giant is binning “cloud gaming” service Stadia three years after its launch.

Review: U.S.-China tech fight leaves global losers

30 Sep 2022

Historian Chris Miller’s “Chip War" offers a timely account of America’s increasingly frantic efforts to stay ahead of China on semiconductors. Both sides have policy and trade weapons at their disposal. The collateral damage to big companies and other countries will be immense.

Silicon Valley’s post-Covid brain drain

27 Sep 2022

Before the pandemic, 75% of venture capital was invested in California, New York and Massachusetts. In this Exchange podcast, AOL co-founder Steve Case explains that a hybrid working revolution is reversing that trend and encouraging permanent investment away from the coasts.

Capital Calls: EasyJet, Nexi

27 Sep 2022

Concise views on global finance: The budget airline scraps its offset plan and focuses efforts on cleaner technology; the 12 bln euro payment company’s valuation gap with peer Worldline looks increasingly hard to justify.

Shopify plays ‘choose your own adventure’ with pay

23 Sep 2022

The Canadian e-commerce firm is giving rank and file the chance to choose between equity and cash. Flexibility is good, and it could eliminate a gap between perceived and actual benefits. But it also forces employees to take a stand on how they think their own company is valued.

ESPN would help Disney and Comcast settle a score

23 Sep 2022

Bob Chapek, who reigns at the Magic Kingdom, wants to buy the rest of Hulu sooner rather than later to beef up his streaming strategy. Brian Roberts, his counterpart and Disney nemesis, has less reason to sell quickly. A deal including the sports network could tempt him to talk.

India’s fintech fest is a vibrant coming-out party

23 Sep 2022

Crashing valuations did not dampen spirits at a Mumbai confab this week drawing 7,000 daily visitors. Officials celebrated startups, their global potential, and offered a checklist for not running afoul of evolving regulation. Questions on profitability will be for another day.

Review: Tencent reflects China’s blunted tech edge

23 Sep 2022

The social media and gaming giant became the crown jewel of China’s private sector. Lulu Chen's "Influence Empire" describes how boss Pony Ma and his rivals grew so powerful they drew Beijing’s ire. Their humbling bodes ill for President Xi Jinping’s state-led innovation push.

Italy’s first female leader, Amazon’s monopoly

22 Sep 2022

Far-right leader Giorgia Meloni is favourite to become prime minister after Sunday’s election. In this Viewsroom podcast, Breakingviews columnists debate how she will handle Rome’s debt, which is expected to reach 148% of GDP. And: the online retail giant’s antitrust battle.

Capital Calls: Sea’s distress call

21 Sep 2022

Concise views on global finance: The boss of Singapore’s $26 bln e-commerce to video-games outfit has laid out plans to achieve financial self-sufficiency, sending a wake-up call to other cash-burning peers in the region.