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Time of India
29-05-2025
- Business
- Time of India
US curbs export controls on chip design software and tools to China
The United States has imposed new export restrictions targeting a wide range of goods shipped to China, including semiconductor design software, chemicals, and industrial tools, Reuters reported, quoting sources. These new controls, likely to heighten Beijing-Washington tensions, target critical supply points to restrict China's access to essential sector components. The affected items include semiconductor design software, chemical compounds like butane and ethane, industrial machinery, and aviation-related equipment. The US commerce department recently dispatched notifications to various companies about these enhanced restrictions. Last Friday, companies providing electronic design automation (EDA) software for semiconductors were informed about new licensing requirements for Chinese customers, according to two Reuters. The Department confirmed its ongoing assessment of strategic exports to China, stating that "in some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending." Cadence shares dropped 10.7% whilst Synopsys fell 9.6%. Synopsys' CEO Sassine Ghazi clarified during an analyst call that they hadn't received any communication from the Bureau of Industry and Security. "We are aware of the reporting and speculations, but Synopsys has not received a notice from BIS ... We have not received a letter," Ghazi stated. Post-market trading saw both companies recover somewhat, with 3.5% gains. Synopsys maintained its 2025 revenue projections. The potential removal of Chinese customers could substantially affect these companies' revenues and Chinese chip design capabilities. A former Commerce Department official noted these EDA tools are crucial control points, revealing that similar restrictions were considered during Trump's presidency but deemed too severe. Chinese markets represent significant revenue streams for these companies, with China contributing approximately 16% for Synopsys and 12% for Cadence. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Times
22-05-2025
- Business
- Business Times
Chinese firms go on fundraising spree amid rush of easy money
[HONG KONG] Chinese companies are seizing on a window of opportunity to raise capital as global investors pour money into Asian assets in search of alternatives to the US. The surge in inflows created by the waning of US exceptionalism and the Beijing-Washington trade truce has fuelled one of the most active fundraising booms the region has seen in years. By far the biggest deal has been the share offering by Chinese electric vehicle (EV) battery maker Contemporary Amperex Technology Co Limited (CATL), but that's just part of a wider groundswell. Hong Kong share sales have raised US$25.8 billion this year, about 34 per cent higher than the total for all of 2024, according to data compiled by Bloomberg. Mainland companies issued US$2.8 billion of US dollar bonds in the second week of May alone, one of the busiest stretches in Asia this year, data compiled by Bloomberg show. 'The worst-case scenario of super high tariffs is behind us,' said Carlos Casanova, senior Asia economist at Union Bancaire Privee in Hong Kong. The market conditions in China appear to be more supportive than in previous years, while interest-rate cuts from the People's Bank of China have boosted liquidity, he said. CATL, as the battery giant is known, raised US$5.2 billion in its Hong Kong Kong debut on Tuesday (May 20), the largest listing in the world this year and the biggest in the city in four years. The shares jumped 16 per cent on their first trading day. The outlook is also improving for troubled mainland developers that had been largely shut out of US dollar bond markets due to the property debt crisis. Seazen Group is meeting investors this week about a potential US dollar debt sale, which may make it the first public bond offering by a major Chinese private-sector developer in more than two years. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Sharp turnaround The fundraising boom is a stark turnaround from just a few months ago, when geopolitical uncertainty and climbing interest rates had throttled demand for Chinese assets. Now, the thaw in US-China relations has encouraged money managers from London to Singapore to boost exposure to China amid optimism the country may be shaking itself free from years of sluggish growth. 'The percentage of the allocation to the global money already picked up significantly' for mainland-traded Chinese firms listing in Hong Kong this year, said Shi Qi, deputy head of capital markets at China International Capital Corp in Hong Kong, speaking on Bloomberg Television on Wednesday. 'We see Middle East sovereign funds and also some South-east Asian sovereign funds as well as other global long-onlys actually add their allocation to China,' she said. There's a healthy pipeline of future Chinese share sales, many of which are by companies without heavy reliance on US exports. Those lining up to list shares in Hong Kong include drugmaker Jiangsu Hengrui Pharmaceuticals and sensor manufacturer Hesai Group. BLOOMBERG
Time of India
16-05-2025
- Business
- Time of India
Trump wants Apple to Halt its India Push
US President Donald Trump said he's asked Apple Inc's Tim Cook to stop building plants in India to make devices for the American market, pushing the iPhone maker to add domestic production as it pivots away from China. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads US President Donald Trump said he's asked Apple Inc's Tim Cook to stop building plants in India to make devices for the American market, pushing the iPhone maker to add domestic production as it pivots away from China.'I had a little problem with Tim Cook yesterday,' Trump said of his conversation with the Apple CEO in Qatar, where he's on a state visit. 'He is building all over India. I don't want you building in India.' As a result of their discussion, Trump said Apple will be 'upping production in the US'.Trump's comments throw a wrench into Apple's plan to import most of the iPhones it sells in the US from India by the end of next India expansion is part of a shift beyond China as Apple looks to mitigate risks related to tariffs and geopolitical makes most of its iPhones in China and has no smartphone production in the US — though it's promised to hire more workers at home and pledged to spend $500 billion domestically over the next four years. 'This is a familiar Trump tactic: he wants to push Apple to localise more and build a supply chain in the US, which is not going to happen overnight,' said Tarun Pathak, research director at tech analytics firm Counterpoint. 'Making in the US will also be much more expensive than assembling iPhones in India.'Apple and its suppliers have accelerated a shift away from the world's No. 2 economy, a process that began when harsh Covid lockdowns hurt production at its largest plant. Tariffs introduced by Trump as well as Beijing-Washington tensions prompted Apple to amplify that iPhone facilities in India produce more than 40 million units per year, about 20% of Apple's annual output. While Trump has pushed Apple to make iPhones in the US, the lack of domestic engineering and manufacturing talent will make that nearly impossible in the short 'has one of the most sophisticated supply chains built out over years,' Pathak said. 'To disrupt that or to completely move out of India or China will be extremely difficult.'Trump's comments suggest he's fine with Apple building its products in India for that market. 'You can build in India if you want, to take care of India,' he bulk of India-made iPhones are assembled at Foxconn Technology Group's factory in southern India. Tata Group's electronics manufacturing arm, which bought Wistron Corp's local business and runs Pegatron Corp's operations in India, is also a key supplier. Tata and Foxconn are also building new plants and adding production capacity in southern India, Bloomberg News reported assembled $22 billion worth of iPhones in India in the 12 months through March, increasing production by nearly 60% over the previous year.
West Australian
16-05-2025
- Business
- West Australian
US President Donald Trump skewers Apple's Tim Cook over iPhone manufacturing pivot to India
President Donald Trump said he's asked Apple's Tim Cook to stop building plants in India to make devices for the US, pushing the iPhone maker to add domestic production as it pivots away from China. 'I had a little problem with Tim Cook yesterday,' Trump said of his conversation with Apple's chief executive in Qatar, where he's on a state visit. 'He is building all over India. I don't want you building in India.' As a result of their discussion, Trump said Apple will be 'upping their production in the United States'. Apple representatives in India did not respond to a request for comment. Trump's comments threaten to throw a wrench into Apple's plan to import most of the iPhones it sells in the US from India by the end of next year, accelerating a shift beyond China to mitigate risks related to tariffs and geopolitical tensions. Apple makes most of its iPhones in China and has no smartphone production in the US — though it's promised to hire more workers at home and pledged to spend $US500 billion domestically over the next four years. Building iPhones from scratch in the US will be extremely difficult even for cash-rich Apple. The supply chain for iPhones and skilled labour for a such a precisely engineered product have been concentrated in China for years, and Apple's only just started forging local partnerships in India. Expensive American labour and manufacturing also makes iPhone production in the US untenable. India, on the other hand, is one of Apple's fastest-growing markets with a vast customer base that aspires to buy its iconic products. The country also has state subsidies to help it expand assembly. 'This is a familiar Trump tactic: He wants to push Apple to localise more and build a supply chain in the US, which is not going to happen overnight,' said Tarun Pathak, research director at tech analytics firm Counterpoint. 'Making in the US will also be much more expensive than assembling iPhones in India.' Apple and its suppliers have accelerated a shift away from the world's No. 2 economy, a process that began when harsh COVID lockdowns hurt production at its largest plant. Tariffs introduced by Trump as well as Beijing-Washington tensions prompted Apple to amplify that effort. The iPhone facilities in India produce more than 40 million units per year, about 20 per cent of Apple's annual output. While Trump has pushed Apple to make iPhones in the US, the lack of domestic engineering and manufacturing talent will make that nearly impossible in the short run. Apple 'has one of the most sophisticated supply chains built out over years,' Pathak said. 'To disrupt that or to completely move out of India or China will be extremely difficult.' Trump's comments suggest he's fine with Apple building its products in India for that market. 'You can build in India if you want, to take care of India,' he said. Trump also discussed tariff negotiations with India, saying the South Asian country has made an offer to drop import taxes on US goods. India has one of the highest tariff barriers in the world and it's very hard to sell American products in the planet's most populous country, Trump said. The bulk of India-made iPhones are assembled at Foxconn Technology's factory in southern India. Tata's electronics manufacturing arm, which bought Wistron's local business and runs Pegatron's operations in India, is another key supplier. Tata and Foxconn are also building new plants and adding production capacity in southern India, Bloomberg News reported previously. Apple assembled $US22 billion worth of iPhones in India in the 12 months through March, increasing production by nearly 60 per cent over the previous year. Bloomberg
Time of India
15-05-2025
- Business
- Time of India
Trump wants Apple to stop moving iPhone production to India
By Jordan Fabian and Sankalp Phartiyal US President Donald Trump said he's asked Apple Inc.'s Tim Cook to stop building plants in India, taking aim at the iPhone maker's plans to diversify its manufacturing beyond China. 'I had a little problem with Tim Cook yesterday,' Trump said of his conversation with the Apple chief executive officer in Qatar, where he's on a state visit. 'He is building all over India. I don't want you building in India.' As a result of their discussion, Trump said Apple will be 'upping their production in the United States.' India has one of the highest tariff barriers in the world and it's very hard to sell American products in the planet's most populous country, Trump said. He said, though, that India has made an offer to drop tariffs on US goods, as the Asian nation seeks an agreement on import taxes. The US president's comments throw a wrench into Apple's plan to import most of the iPhones it sells in the US from India by the end of next year, accelerating a shift beyond China to mitigate risks related to tariffs and geopolitical tensions. Apple makes most of its iPhones in China and has no smartphone production in the US. Apple and its suppliers have accelerated a pivot away from the world's No. 2 economy, a process that began when harsh Covid lockdowns hurt production at its largest plant. Tariffs introduced by Trump as well as Beijing-Washington tensions prompted Apple to amplify that effort. The bulk of India-made iPhones are assembled at Foxconn Technology Group's factory in southern India. Tata Group's electronics manufacturing arm, which bought Wistron Corp.'s local business and runs Pegatron Corp.'s operations in India, is also a key supplier. Tata and Foxconn are also building new plants and adding production capacity in southern India, Bloomberg News reported previously. Apple assembled $22 billion worth of iPhones in India in the 12 months through March, increasing production by nearly 60% over the previous year.
