logo
Apple says it is partnering with Samsung for new chip technology from Texas plant

Apple says it is partnering with Samsung for new chip technology from Texas plant

Reuters18 hours ago
Aug 6 (Reuters) - Apple (AAPL.O), opens new tab said on Wednesday it is working with Samsung Electronics (005930.KS), opens new tab at the latter's chip production plant in Texas to "to launch an innovative new technology for making chips."
Apple said the technology "has never been used before anywhere in the world," and Samsung's Texas chip plant "will supply chips that optimize power and performance of Apple products, including iPhone devices," without elaborating further.
A Samsung spokesperson declined comment.
The statement was made as part of Apple's announcement it would spend an additional $100 billion in U.S. investments, bringing its total investment commitment to the country to $600 billion over the next four years.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump's planned 100% computer chip tariff sparks confusion among businesses and trading partners
Trump's planned 100% computer chip tariff sparks confusion among businesses and trading partners

The Independent

time15 minutes ago

  • The Independent

Trump's planned 100% computer chip tariff sparks confusion among businesses and trading partners

President Donald Trump 's plans for 100% tariffs on computer chips that aren't made in the U.S. are stoking confusion among businesses and trading partners — boosting stocks for leading semiconductor companies while leaving smaller producers scrambling to understand the implications. The U.S. imports a relatively small number of chips because most of the foreign-made chips in a device — from an iPhone to a car — were already assembled into a product, or part of a product, before it landed in the country. "The real question everybody in the industry is asking is whether there will be a component tariff, where the chips in a device would require some sort of separate tariff calculation,' said Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics. Trump said Wednesday that companies that "made a commitment to build" in the U.S. would be spared the import tax, even if they are not yet producing those chips in American factories. 'We'll be putting a tariff of approximately 100% on chips and semiconductors,' Trump said in the Oval Office while meeting with Apple CEO Tim Cook. 'But if you're building in the United States of America, there's no charge.' Wall Street investors interpreted that as good news not just for U.S. companies like AMD, Intel and Nvidia, but also for the biggest Asian chipmakers like Samsung and Taiwan Semiconductor Manufacturing Company that have been working to build U.S. factories. But it left greater uncertainty for smaller chipmakers in Europe and Asia that have little exposure to the AI boom but still make semiconductors inserted into essential products like cars or washing machines. These producers "probably aren't large enough to get on the map for an exemption and quite probably wouldn't have the kind of excess capital and margins to be able to add investment at a large scale into the United States,' Chorzempa said. The announcement came more than three months after Trump temporarily exempted most electronics from his administration's most onerous tariffs. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation. Chorzempa said chip tariffs could again raise prices by hundreds of dollars per vehicle if the semiconductors inside a car are not exempt. 'There's a chip that allows you to open and close the window," Chorzempa said. "There's a chip that is running the entertainment system. There is a chip that's kind of running all the electronics. There are chips, especially in EVs, that are doing power management, all that kind of stuff.' Much of the investment into building U.S. chip factories began with the bipartisan CHIPS and Science Act that President Joe Biden signed into law in 2022, providing more than $50 billion to support new computer chip plants, fund research and train workers for the industry. Trump has vocally opposed those financial incentives and taken a different approach, betting that the threat of dramatically higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for electronics.

US jobless claims edge up, but 'no-hire, no-fire' trend remains intact
US jobless claims edge up, but 'no-hire, no-fire' trend remains intact

Reuters

time16 minutes ago

  • Reuters

US jobless claims edge up, but 'no-hire, no-fire' trend remains intact

Aug 7 (Reuters) - The number of Americans filing new applications for unemployment benefits ticked up to the highest level in a month last week, suggesting the labor market was largely stable even though job creation is weakening and it is taking laid-off workers longer to find new employment. Initial claims for state unemployment benefits for the week ended August 2 rose 7,000 to a seasonally adjusted 226,000, the highest level since the week ending July 5, the Labor Department said on Thursday. Economists polled by Reuters had forecast 221,000 claims for the latest week. The labor market has slowed, with government data last week showing far fewer jobs were created in July than economists had expected as uncertainty over President Donald Trump's tariffs left businesses wary of adding workers. Moreover, employment gains in the previous two months were revised lower by nearly 260,000, a stunning reversal that prompted Trump to fire the head of the Bureau of Labor Statistics - a move that rattled investors and economists already anxious about the eroding quality of official U.S. economic data. The latest data on new claims indicates employers are not yet turning to large-scale layoffs as the economy loses steam but are managing through attrition. That has helped keep the unemployment rate, at 4.2% in July, relatively low even while job growth has slowed. Declining labor supply amid the White House's immigration crackdown is also helping to stave off a jump in the jobless rate. Employers' hesitancy to increase hiring means there are fewer jobs for those being laid off. The number of people receiving benefits after an initial week of aid, a proxy for hiring, rose to a seasonally adjusted 1.974 million during the week ending July 26, the claims report showed. That was the highest level of so-called continued claims since November 2021, and the increase of 38,000 from the previous week was the largest since late May. Despite the rise in both new and ongoing claims last week, economists note the two continue to remain largely range-bound and have not exhibited the kind of breakout upswing that in the past has signaled a deteriorating job market. Indeed, the weekly net change in new claims has remained below 10,000 - in either direction - for 10 straight weeks, the longest such streak in about three years. "The sideways drift in initial and continuing claims in recent months suggests that layoff activity is muted," Thomas Simons, chief U.S. economist at Jefferies, wrote in a note. "The 'no hire/no fire' theme in the labor market remains firmly intact." That said, continued claims had been averaging less than 1.9 million until early May and in the three months since have averaged about 40,000 higher at about 1.94 million. That reset now makes more sense to some economists in light of the historic downward revision to the job creation figures for May and June that were revealed by BLS last week. "The level of continued claims is still signaling that unemployed workers are finding it tough to find a job in a labor market where hiring is slow," Nancy Vanden Houten, lead U.S. economist at Oxford Economics, wrote. "Moreover, the steep rise in claims since April makes more sense following the sharp downward revisions to job growth in May and June and the sluggish pace of hiring in July." Meanwhile, the Labor Department also said worker productivity rebounded more than expected in the second quarter, easing a surge in labor costs at the start of the year. Nonfarm business sector productivity increased 2.4% in the April-June period after declining by 1.8% in the first three months of the year, BLS reported. Economists polled by Reuters had expected productivity to rise by 2.0%. Worker output increased by 3.7%, the largest improvement since the third quarter of 2023, while unit labor cost growth moderated to 1.6% from an upwardly revised 6.9% in the first quarter. The data may be indicative of ongoing investments by businesses in labor-saving technologies like artificial intelligence, economists said. "Productivity growth is settling back into its historical trend after bouncing around because of the pandemic," said Oren Klachkin, financial market economist at Nationwide. "Looking ahead, businesses will likely invest in labor-saving technologies to cap their wage bills, which should exert downward pressure on inflation. Companies facing the greatest labor constraints will likely be the most incentivized to invest."

Exclusive: Canada defense review makes case for sticking with F-35 jets, sources say
Exclusive: Canada defense review makes case for sticking with F-35 jets, sources say

Reuters

time16 minutes ago

  • Reuters

Exclusive: Canada defense review makes case for sticking with F-35 jets, sources say

OTTAWA, Aug 7 (Reuters) - Canadian defense officials have strongly made the case that Ottawa should stick to a plan to buy 88 Lockheed Martin Corp (LMT.N), opens new tab F-35 fighter jets rather than splitting the order, two sources familiar with the matter said on Thursday. The review stops short of making a formal recommendation, one of the sources said. The final decision rests with the Liberal government of Prime Minister Mark Carney, said the sources, who requested anonymity given the sensitivity of the situation. Carney, who won the April election on a promise to stand up to U.S. President Donald Trump, had requested the review by military officials in March on the grounds that Canada was over-reliant on the U.S. defense industry. Ottawa has made a legal commitment of funds for the first 16 F-35 aircraft. Although Carney made clear in March that Canada could seriously look at buying the remaining 72 planes from non-U.S. companies, the Defense Ministry review concluded there was no military sense in splitting the order. The F-35 is the most advanced fighter of its type, and buying another jet from a European rival would incur extra costs in training, supplies, and maintenance. The Canadian Armed Forces are highly integrated with their U.S. counterparts. Sticking to the original plan could remove a potential irritant in relations with the United States at a moment when talks on a new trade and security relationship have stalled. Since winning the election, Carney has softened his tone, noting that despite U.S. tariffs on steel, aluminum, and cars, Canada is in a good position compared to other nations facing higher tariffs. In a statement, the office of Defence Minister David McGuinty reiterated that Canada planned to buy 88 fighter jets. "We are committed to procuring what the air force needs, while ensuring economic benefits for Canadians and the responsible use of taxpayer dollars," it said. Carney's office declined to comment. Canada announced plans to buy the F-35s in 2010, but a switch in governments, rule changes for aircraft procurement, as well as challenges from the pandemic, triggered major delays.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store