Tech billionaire Elon Musk’s takeover of Twitter comes as the U.S. holds midterm elections this week, with observers warning that online misinformation about the credibility of the electoral process can have real-world effects. Is Twitter, under Musk, ready? Tina Trinh reports. Michelle Quinn contributed.
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Facebook parent company Meta is preparing to begin large-scale layoffs this week, according to U.S. media reports. 

The layoffs, which were first reported by The Wall Street Journal, are expected to affect thousands of employees and would be the company’s first job cuts of this scale in its 18-year history. 

The job cuts are expected to come as early as Wednesday.  

Meta has not commented on the news reports.  

The expected layoffs would follow a string of job cuts at technology companies in recent months, including Twitter, Microsoft, Lyft and Stripe. 

Meta’s chief executive, Mark Zuckerberg, said in his company’s last earnings call in October that “we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.” 

He said the company would focus its investments on a small number of “high priority growth areas” while most other teams would “stay flat or shrink over the next year.” 

Meta, along with other technology firms, are facing economic pressures on several fronts, including slowing economic growth, rising interest rates that force digital advertisers to cut back, and increasing interest rates, which make it more expensive for companies like Meta to borrow money.  

Social media companies are also facing growing competition from newer rivals like TikTok and Snapchat.  

Twitter cut around half of its staff last week after Tesla billionaire Elon Musk took over the company. 

Bloomberg News is reporting that Twitter is now reaching out to dozens of recently fired employees and asking them to return.  

It said some employees were let go by mistake while others were laid off before management realized their skills would be useful for the company’s plans. 

Some information in this report came from Reuters. 

 
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Meta Platforms Inc. is planning to begin large-scale layoffs this week that will affect thousands of employees, The Wall Street Journal reported on Sunday, citing people familiar with the matter, with an announcement planned as early as Wednesday.

Meta declined to comment on the WSJ report.

Facebook parent Meta in October forecasted a weak holiday quarter and significantly more costs next year wiping about $67 billion off Meta’s stock market value, adding to the more than half a trillion dollars in value already lost this year.

The disappointing outlook comes as Meta is contending with slowing global economic growth, competition from TikTok, privacy changes from Apple, concerns about massive spending on the metaverse and the ever-present threat of regulation.

Chief Executive Mark Zuckerberg has said he expects the metaverse investments to take about a decade to bear fruit. In the meantime, he has had to freeze hiring, shutter projects and reorganize teams to trim costs.

“In 2023, we’re going to focus our investments on a small number of high priority growth areas. So that means some teams will grow meaningfully, but most other teams will stay flat or shrink over the next year. In aggregate, we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today” Zuckerberg said on the last earnings call in late October.

The social media company had in June cut plans to hire engineers by at least 30%, with Zuckerberg warning employees to brace for an economic downturn.

Meta’s shareholder Altimeter Capital Management in an open letter to Zuckerberg had previously said the company needs to streamline by cutting jobs and capital expenditure, adding that Meta has lost investor confidence as it ramped up spending and pivoted to the metaverse.

Several technology companies, including Microsoft Corp., Twitter and Snap have cut jobs and scaled back hiring in recent months as global economic growth slows due to higher interest rates, rising inflation and an energy crisis in Europe.
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South Korean team DRX were crowned League of Legends world champions on Saturday after scoring a surprise 3-2 victory over compatriots T1 in a thrilling final of the eSports tournament in San Francisco.

T1, the most successful team in eSports history, started as favorites and took the lead in the first round of the competition.

But DRX took command after many upsets, in particular thanks to 19-year-old Kim “Zeka” Geon-woo.

Their win, the team’s first-ever, was highly anticipated for talented 26-year-old Kim “Deft” Hyuk-kyu, who started competing in 2014 but had only made it past the quarterfinals once, also in 2014.

No player so “old” had ever won the world championships until this year.

The final took place at the Chase Center in San Francisco, home to the Golden State Warriors NBA team, in front of some 16,000 spectators.

The League of Legends World Championship is considered one of the most prestigious eSports tournaments. 
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U.N. rights chief Volker Turk on Saturday urged Twitter’s new owner, Elon Musk, to make respect for human rights central to the social network after he sacked around half the company’s employees.

Reports of Musk laying off the platform’s entire human rights team were “not, from my perspective, an encouraging start,” Turk said in an open letter.

The United Nations High Commissioner for Human Rights said he was writing with “concern and apprehension about our digital public square and Twitter’s role in it.”

He warned against propagating hate speech and misinformation and highlighted the need to protect user privacy.

Musk, the richest person in the world, took control of the platform a week ago in a contentious deal.

After completing his mammoth $44 billion acquisition, Musk quickly set about dissolving Twitter’s board and sacking its chief executive and top managers.

Twitter on Friday fired roughly half of its 7,500-strong workforce.

“Like all companies, Twitter needs to understand the harms associated with its platform and take steps to address them,” wrote Turk.

“Respect for our shared human rights should set the guardrails for the platform’s use and evolution. In short, I urge you to ensure human rights are central to the management of Twitter under your leadership.”

Turk posted the open letter on Twitter, where he has more than 25,000 followers.

Turk, an Austrian longtime U.N. official who took up his post as the U.N. rights chief on Oct. 17, spelt out some fundamental human rights principles, urging Musk to put them at the heart of Twitter’s management going forward.

‘Horrific’ consequences

Turk urged Twitter to stand up for the rights to privacy and free expression to the fullest extent possible, under relevant laws, and to transparently report on government pressures that would infringe those rights.

But he said free speech “is not a free pass,” saying that the viral spread of harmful disinformation, as seen during the COVID-19 pandemic, resulted in real-world harm.

“Twitter has a responsibility to avoid amplifying content that results in harms to people’s rights,” Turk said.

“There is no place for hatred that incites discrimination, hostility or violence on Twitter.

“Hate speech has spread like wildfire on social media… with horrific, life-threatening consequences.”

Twitter should therefore continue to bar such hatred on the platform, while every effort should be made to remove such content promptly, said Turk.

He also said free speech depended on the effective protection of privacy.

“It is vital that Twitter refrain from invasive user tracking and amassing related data and that it resist, to the fullest extent possible under applicable laws, unjustified requests from governments for user data,” Turk said.

He said research was essential to understand the impact of social media on societies, and therefore urged Musk to maintain access to Twitter’s data through its open application programming interfaces.

Finally, he stressed that Twitter should have content moderation capacity in all languages and contexts, not just in the United States or in English-language content. 
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Twitter on Saturday launched a subscription service for $7.99 a month that includes a blue check now given only to verified accounts as new owner Elon Musk overhauls the platform’s verification system just ahead of the U.S. midterm elections.

In an update to Apple iOS devices, Twitter said users who “sign up now” can receive the blue check next to their names “just like the celebrities, companies and politicians you already follow.” So far, verified accounts do not appear to be losing their checks.

Anyone being able to get the blue check could lead to confusion and the rise of disinformation ahead of Tuesday’s elections if impostors decide to pay for the subscription and co-opt the names of politicians and election officials. Along with widespread layoffs that began Friday, many fear the social platform that public agencies, election boards, police departments and news outlets use to keep people reliably informed could become lawless if content moderation and verification are chipped away.

The change represents the end of Twitter’s current verification system, which was launched in 2009 to prevent impersonations of high-profile accounts such as celebrities and politicians. Before the overhaul, Twitter had about 423,000 verified accounts, many of them rank-and-file journalists from around the globe that the company verified regardless of how many followers they had.

Experts have raised grave concerns about upending the platform’s verification system that, while not perfect, has helped Twitter’s 238 million daily users determine whether the accounts they were getting information from were authentic. Current verified accounts include celebrities, athletes, influencers and other high-profile public figures, along with government agencies and politicians worldwide, journalists and news outlets, activists and businesses and brands.

The update Twitter made to the iOS version of its app does not mention verification as part of the new blue check system.

Musk, who had earlier said that he wants to “verify all humans” on Twitter, has floated that public figures would be identified in ways other than the blue check. Currently, for instance, government officials are identified with text under names stating that they are posting from an official government account.

President Joe Biden’s @POTUS account, for example, says in gray letters it belongs to a “United States government official.”

Co-founder Dorsey apologizes for job losses

The change comes a day after Twitter began laying off workers to cut costs and as more companies are pausing advertising on the platform as a cautious corporate world waits to see how it will operate under its new owner.

About half of the company’s staff of 7,500 was let go, tweeted Yoel Roth, Twitter’s head of safety and integrity.

He said the company’s front-line content moderation staff was the group the least affected by the job cuts and that “efforts on election integrity — including harmful misinformation that can suppress the vote and combating state-backed information operations — remain a top priority.”

Twitter co-founder Jack Dorsey Saturday took blame for the widespread job losses. He had two runs as CEO of Twitter, with the most recent stretching from 2015 into 2021.

“I own the responsibility for why everyone is in this situation: I grew the company size too quickly,” he tweeted. “I apologize for that.”

Musk tweeted late Friday that there was no choice but to cut jobs “when the company is losing over $4M/day.” He did not provide details on the daily losses at Twitter and said employees who lost their jobs were offered three months’ pay as a severance.

Revenue already falling

Meanwhile, Twitter has already seen “a massive drop in revenue” because of pressure from activist groups on advertisers to get off the platform, Musk tweeted Friday. That hits Twitter hard because of its heavy reliance so far on advertising to make money. During the first six months of this year, nearly $92 of every $100 it made in revenue came from advertising.

United Airlines Saturday became the latest major brand to pause advertising on Twitter, confirming the move but declining to discuss the reasons for it or what it would need to see to resume advertising on the platform.

It joined the growing list of big companies pausing ads on Twitter, including General Motors, REI, General Mills and Audi.

Musk tried to reassure advertisers last week, saying Twitter would not become a “free-for-all hellscape” because of what he calls his commitment to free speech.

But concerns remain about whether a lighter touch on content moderation at Twitter will result in users sending out more offensive tweets. That could hurt companies’ brands if their advertisements appear next to them.
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Twitter began widespread layoffs Friday as new owner Elon Musk overhauls the company, raising grave concerns about chaos enveloping the platform and its ability to fight disinformation just days ahead of the U.S. midterm elections.

The speed and size of the cuts also opened Musk and Twitter to lawsuits. At least one was filed Thursday in San Francisco alleging Twitter has violated federal law by not providing fired employees the required notice.

The company had told workers by email that they would find out Friday if they had been laid off. It did not say how many of the roughly 7,500 employees would lose their jobs.

Musk blames activists for drop in advertising

Musk didn’t confirm or correct investor Ron Baron at a Friday conference in New York when he asked the billionaire Tesla CEO how much money he would save after he “fired half of Twitter.”

Musk responded by talking about Twitter’s cost and revenue challenges and blamed activists who urged big companies to halt advertising on the platform. Musk hasn’t commented on the layoffs themselves.

“The activist groups have been successful in causing a massive drop in Twitter advertising revenue, and we’ve done our absolute best to appease them and nothing is working,” he said.

No other social media platform comes close to Twitter as a place where public agencies and other vital service providers — election boards, police departments, utilities, schools and news outlets — keep people reliably informed. Many fear Musk’s layoffs will gut it and render it lawless.

Several employees who tweeted about losing their jobs said Twitter also eliminated their entire teams, including one focused on human rights and global conflicts, another that checks Twitter’s algorithms for bias in how tweets get amplified, and an engineering team devoted to making the social platform more accessible for people with disabilities.

Fear that disinformation spreads ‘like wildfire’

Eddie Perez, a Twitter civic integrity team manager who quit in September, said he fears the layoffs so close to the midterms could allow disinformation to “spread like wildfire” during the post-election vote-counting period in particular.

“I have a hard time believing that it doesn’t have a material impact on their ability to manage the amount of disinformation out there,” he said, adding that there simply may not be enough employees to beat it back.

Perez, a board member at the nonpartisan election integrity nonprofit OSET Institute, said the post-election period is particularly perilous because “some candidates may not concede and some may allege election irregularities, and that is likely to generate a new cycle of falsehoods.”

Workers laid off worldwide

Twitter’s employees have been expecting layoffs since Musk took the helm. He fired top executives, including CEO Parag Agrawal, and removed the company’s board of directors on his first day as owner.

As the emailed notices went out, many Twitter employees took to the platform to express support for each other — often simply tweeting blue heart emojis to signify its blue bird logo — and salute emojis in replies to each other.

The sweeping layoffs will jeopardize content moderation standards, according to a coalition of civil rights groups that escalated their calls Friday for brands to pause advertising buys on the platform. The layoffs are particularly dangerous ahead of the elections, the groups warned, and for transgender users and other groups facing violence inspired by hate speech that proliferates online.

Leaders with the organizations Free Press and Color of Change said they spoke with Musk on Tuesday, and he promised to retain and enforce election integrity measures already in place. But the mass layoffs suggest otherwise, according to Jessica Gonzalez, co-CEO of Free Press.

“When you lay off reportedly 50% of your staff — including teams who are in charge of actually tracking, monitoring and enforcing content moderation and rules — that necessarily means that content moderation has changed,” Gonzalez said.

The layoffs affected Twitter’s offices around the world. In the United Kingdom, Twitter would be required by law to give employees notice, said Emma Bartlett, a partner specializing in employment and partnership law at CM Murray LLP.

In the case of mass firings, failure to notify the government could “have criminal penalties associated with it,” Bartlett said, adding that whether criminal sanctions are ever applied is another question.

The speed of the layoffs could also open Musk and Twitter up to discrimination claims if it turns out, for instance, that they disproportionally affected women, people of color or older workers.

Employment lawyer Peter Rahbar said most employers “take great care in doing layoffs of this magnitude” to make sure they are justified and don’t unfairly discriminate or bring unwanted attention to the company.

The layoffs come at a tough time for social media companies, as advertisers are scaling back and newcomers — mainly TikTok — are threatening older platforms like Twitter and Facebook.

In a tweet Friday, Musk blamed activists for what he described as a “massive drop in revenue” since he took over Twitter late last week. He did not say how much revenue had dropped.

Big companies including General Motors, REI, General Mills and Audi have all paused ads on Twitter because of questions about how it will operate under Musk. Volkswagen Group said it is recommending its brands, which include Audi, Lamborghini and Porsche, pause paid activities until Twitter issues revised brand safety guidelines.

Musk last week sought to convince advertisers that Twitter wouldn’t become a “free-for-all hellscape,” but many remain concerned about whether content moderation will remain as stringent and whether staying on Twitter might tarnish their brands.

In his tweet, Musk said “nothing has changed with content moderation.”

But Twitter advertisers have steadily declined since Musk agreed to buy Twitter in April, according to MediaRadar, which tracks ad buys. Between January and April, the average number of advertisers on Twitter was 3,350. From May through September, the number dropped to 3,100. Prior to July, more than 1,000 new advertisers were spending on Twitter every month. In July and August, that number dropped to roughly 200.
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Twitter Inc temporarily closed its offices on Friday after telling employees they would be informed by email later in the day about whether they are being laid off.

The move follows a week of uncertainty about the company’s future under new owner Elon Musk.

The social media company said in an email to staff it would tell them by 9 a.m. Pacific time on Friday (12 p.m. EDT/1600 GMT) about staff cuts.

“In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday,” said the email sent on Thursday, seen by Reuters.

Musk, the world’s richest person, is looking to cut around 3,700 Twitter staff, or about half the workforce, as he seeks to slash costs and impose a demanding new work ethic, according to internal plans reviewed by Reuters this week.

The company’s content moderation team is expected to be a target of the cuts, tweets from Twitter employees suggested on Friday. Musk has promised to restore free speech while preventing it from descending into a “hellscape.”

Twitter did not immediately respond to a request for comment.

Twitter employees vented their frustrations about the layoffs on the social network, using the hashtag #OneTeam.

User Rachel Bonn tweeted: “Last Thursday in the SF (San Francisco) office, really the last day Twitter was Twitter. 8 months pregnant and have a 9 month old. Just got cut off from laptop access.”

Responding to the #OneTeam thread, Twitter’s Head of Safety & Integrity Yoel Roth, said: “Tweeps: My DMs (direct message routes) are always open to you. Tell me how I can help.”

Roth was the most senior executive to message publicly with a tweet of support for staff who are losing their jobs. He also appeared to still have his job. Last week, Musk endorsed Roth, citing his “high integrity” after he was called out over tweets critical of former U.S. President Donald Trump years earlier.

Roth did not respond to a request for comment.

Twitter said in the email that its offices would be temporarily closed and all badge access suspended in order “to help ensure the safety of each employee as well as Twitter systems and customer data.”

The company’s office in Piccadilly Circus, London, appeared deserted on Friday, with no employees in sight.

Inside, any evidence the social media giant had once occupied the building had been erased. Security staff said there were ongoing refurbishments, refusing to comment further.

The company said employees who were not affected by the layoffs would be notified via their work email addresses. Staff who had been laid off would be notified with next steps to their personal email addresses, the memo said.

A member of security staff at Twitter’s EMEA headquarters in Dublin told reporters that nobody was coming into the office on Friday and employees had been told to stay home.

Another member of the security staff locked the revolving doors at the front of the building where around 500 members of staff worked before the layoffs began.

Some employees tweeted their access to the company’s IT system had been blocked and feared that suggested they had been laid off.

“Looks like I’m unemployed y’all. Just got remotely logged out of my work laptop and removed from Slack,” tweeted a user with the account @SBkcrn, whose profile is described as former senior community manager at Twitter.

A class action lawsuit was filed on Thursday against Twitter by its employees, who argued the company was conducting mass layoffs without providing the required 60-day advance notice, in violation of federal and California law.

The lawsuit also asked the San Francisco federal court to issue an order to restrict Twitter from soliciting employees being laid off to sign documents without informing them of the pendency of the case.

Musk has directed Twitter’s teams to find up to $1 billion in annual infrastructure cost savings, according to two sources familiar with the matter and an internal Slack message reviewed by Reuters.

He has already cleared out the company’s senior ranks, firing its chief executive and top finance and legal executives. Others, including those sitting atop the company’s advertising, marketing and human resources divisions, have departed throughout the past week.

Musk’s first week as Twitter’s owner has been marked by chaos and uncertainty. Two company-wide meetings were scheduled, only to be canceled hours later. Employees told Reuters they were left to piece together information through media reports, private messaging groups and anonymous forums.

The layoffs, which were long expected, have chilled Twitter’s famously open corporate culture that has been lauded by many of its employees.

“If you are in an office or on your way to an office, please return home,” Twitter said in the email on Thursday.

Shortly after the email landed in employee in boxes, hundreds of people flooded the company’s Slack channels to say goodbye, two employees told Reuters. Someone invited Musk to join the channel, the sources said.
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A new U.N. report finds agricultural automation can boost global food production and be a boon for small-scale farmers in developing countries.

The U.N. Food and Agriculture Organization, FAO, has just released The State of Food and Agriculture 2022 report. The report’s authors said automation is rapidly changing the face of agriculture. New technologies, they say, are quickly leaving behind some of the old larger-type tractors and large machinery in ways that could benefit small holders in developing countries.

Parallels can be drawn with the introduction of cellphones. The World Bank, among other observers, notes African and other developing countries can harness digital technologies to boost their economies by advancing from landlines to smartphones.

FAO said automation can play an important role in making food production more efficient and more environmentally friendly.

Chief FAO economist Maximo Torero said many emerging technologies would have been unimaginable years ago. He cited as examples fruit-picking robots that use artificial intelligence and sensors that monitor plants and animals.

“Automation allows agriculture to be more productive, efficient, resilient, and sustainable and can improve working conditions,” Torero said. “However, as with any technological change, automation also implies disruption to the agricultural systems. The risk is that the automation could exacerbate inequalities if we are not careful on how it is being done and developed and deployed.”

The report looks at 27 case studies from all over the world. They represent technologies at different stages of readiness suitable for large or small agricultural producers of varying levels of income.

Torero said the report investigates the drivers of these technologies and identifies barriers preventing their adoption, particularly by small-scale producers. The report, he said, also looks at one of the most common concerns about automation — that it creates unemployment.

“While it concludes that such fears are overblown, it acknowledges that agricultural automation can lead to unemployment in places where rural labor is abundant, and wages are low,” he said. “It is important to understand that in a continent like sub-Saharan Africa, where there is an enormous amount of youth population, we can build the skill sets of these people to be able to have access to these technologies.”

In areas where cheap labor is abundant, the FAO urges policymakers to avoid subsidizing automation while creating an enabling environment for its adoption. At the same time, the report said governments should provide social protection to the least skilled workers who are likely to lose their jobs during the transition.
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The U.S. Supreme Court’s overturning of protections for abortion rights has intensified scrutiny of the personal data that technology firms collect. For women who live in states where most abortions are now illegal, their smartphones and devices could be used against them. Tina Trinh reports. Camera: Saqib Ul Islam, Greg Flakus
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Small farmers produce about one-third of the world’s food. Yet they lack global visibility and face many obstacles getting their crops to larger markets.  A new app is helping to change that for some farmers in Africa. VOA’s Julie Taboh has more. Camera, production: Adam Greenbaum
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Santa Clara, California-based chip producer Marvell Technology has confirmed that it is eliminating research and development staffs in China – the third U.S. chipmaker that has done so this year as the U.S.-China tech rivalry intensifies.

Observers say this will hobble China’s chip ambitions and worsen its talent shortfall in the field of designing and manufacturing cutting-edge computer chips.

“China is definitely going to be at a loss when it comes to American companies like Marvell essentially redesigning their workforce, because China still hasn’t reached a point where it’s able to pump out the same level of chip talent as America or the UK or Israel,” Abishur Prakash, a co-founder at Center for Innovating the Future (CIF) in Canada told VOA over the phone.

China becoming off-limits

These tech giants are aware the era when companies could set up supply chains and move talent around the globe freely is coming to an end and “China is becoming off-limits for Western companies,” added Prakash, the author of five books including the latest one, titled “The World is Vertical: How Technology Is Remaking Globalization.”

Marvell’s decision came weeks after the Biden administration, in early October, imposed additional curbs on China-bound exports of advanced chips, as well as the technology and equipment to produce 14-nanometer chips or better. 

The new rules also prohibited “U.S. persons” including U.S. citizens and green card holders from working at Chinese chip firms, in an apparent move to stem the flow of U.S.-trained tech talent to China. 

“In China, we will focus our R&D [research and development] investments on local customers and the China market,” Stacey Keegan, vice president of Corporate Marketing at Marvell told Reuters in a statement last Thursday. “As a part of this realignment, several of our business units and functions are announcing changes to their global location strategy that will result in the elimination of roles in China,” he added without specifying how many staff it is cutting.

U.S. memory chip giant Micron announced in January it would close its 100-member DRAM design operations in Shanghai, while Texas Instruments in May moved its microcontroller unit R&D team in Shanghai to India.

And more companies may follow suit to downsize their China operations, CIF’s Prakash said.

‘Unplugging from China’

“The worst is yet to come because China is going to be forced to adapt to the new design of globalization that’s emerging. And American companies are essentially at the precipice of a new phase, where instead of plugging into China, they’re unplugging from China,” he added.

Prakash argued that global chipmakers face multiple conundrums. First, they’re forced to take the U.S. side in political disputes because they use American tools and systems. Secondly, they have to deal with multiple regions in the world, including the EU, India and even Saudi Arabia, which want to become global chip hubs. 

That leads to their third problem: how to insulate themselves from U.S.-China geopolitical tensions while ensuring profitability in China?

“The way to do that is to build a dual-track strategy, one for within China and one for outside of China. But it’s not just going to be dual-track. There’s going to be far more tracks because multiple countries are there, not just China,” Prakash said.

China lacks leverage

The tech analyst said the possibility can’t be ruled out that Beijing may make a drastic move and ban American companies that comply with U.S. sanctions on selling to China. 

But Frank Lee, a senior partner of Blue Ocean Capital in Beijing, says such a move would be a “bad idea, which will only serve the U.S.’s purposes,” that is, a U.S.-China tech de-coupling.

He said China has been hit badly by the U.S. sanctions that first cut off chip supplies to China and now limit China’s access to top-tier chip talent.  

Lee formerly served as an executive at China’s Lenovo Group, the world’s largest maker of personal computers.

In the short run, he says, China, whose chip sector is still lagging behind its U.S. rival by at least 20 years, will face an uphill battle in fighting a chip war with the U.S.  

“The biggest problem is that China doesn’t have too much leverage to retaliate against the U.S. when it comes to chips,” Lee told VOA.

Lee said that China may one day leapfrog the U.S., though, because some Chinese firms enjoy advantages in the development of future devices, powered by 5G or 6G mobile chips.

Citing a Beijing Daily report, Lee said a Chinese firm, Zhongke Xintong Microelectronics, is slated to mass-produce next-generation, super-fast photonics chips in 2023. That would potentially free the company and some of its peers from reliance on extreme ultraviolet machines currently needed to make advanced chips. The EUV machines are made by a Dutch firm, ASML, which is honoring the U.S. sanctions.

Without such a breakthrough, China can neither produce advanced chips nor incubate local talents because it takes years for engineers to master the equipment and the production of advanced chips, said Lin Tsungnan, professor of electrical engineering at National Taiwan University in Taipei.

“Amid heightened U.S.-China tech rivalry, when its access to top-tier talent is limited, China will have a shortage. China can certainly train its local talent, but that’s only possible for mid- to low-end chip talent,” Lin told VOA over the phone.

This article originated in VOA’s Mandarin Service.
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