A prominent video game creator who helped lead Facebook’s expansion into virtual reality has resigned from the social networking service’s corporate parent after becoming disillusioned with the way the technology is being managed.

John Carmack cut his ties with Meta Platforms, a holding company created last year by Facebook founder Mark Zuckerberg, in a Friday letter that vented his frustration as he stepped down as an executive consultant in virtual reality.

“There is no way to sugar coat this; I think our organization is operating at half the effectiveness that would make me happy,” Carmack wrote in the letter, which he shared on Facebook. “”Some may scoff and contend we are doing just fine, but others will laugh and say, ‘Half? Ha! I’m at quarter efficiency!'”

In response to an inquiry about Carmack’s resignation and remarks, Meta on Saturday directed The Associated Press to a tweet from its chief technology officer and head of its reality labs, Andrew Bosworth. “”It is impossible to overstate the impact you’ve had on our work and the industry as a whole,” Bosworth wrote in his grateful tweet addressed to Carmack.

Carmack’s departure comes at a time that Zuckerberg, Meta’s CEO, has been battling widespread perceptions that he has been wasting billions of dollars trying to establish the Menlo Park, California, company in the “metaverse” — an artificial world filled with avatars of real people.

While the metaverse losses have been mounting, Facebook and affiliated services such as Instagram have been suffering a downturn in advertising that brings in most of the company’s revenue. The decline has been brought on by a combination of recession fears, tougher competition from other social networking services such as TikTok and privacy controls on Apple’s iPhone that have made it tougher to track people’s interests to help sell ads.

Those challenges have caused Meta’s stock to lose nearly two-thirds of its value so far this year, wiping out about $575 billion in shareholder wealth.

Although Carmack had only been working part time at Meta, the dismay that he expressed seems likely to amplify the questions looming over Zuckerberg’s efforts to become as dominant in virtual reality as Facebook has been in social networking since he started the service nearly 20 years ago while attending Harvard University.

Zuckerberg began to explore virtual reality in earnest in 2014 with Facebook’s $2 billion purchase of headset maker Oculus. At the time, Carmack was Oculus’ chief technology officer and then joined Facebook after the deal closed. Before joining Oculus, Carmack was best known as the co-creator of the video game Doom.

Federal regulators are now trying to limit Zuckerberg’s sway in virtual reality by preventing his attempt to buy Within Unlimited, which makes a fitness app designed for the metaverse.

Carmack testified earlier this week in a trial pitting the Federal Trade Commission against Meta over the fate of the deal. Zuckerberg is expected to testify at some point in the trial, which is scheduled to resume Monday in San Jose, California.

Despite his frustration with the way things have been going at Meta, Carmack praised its latest virtual reality headset, the Quest 2, in his resignation letter. He described the headset as “almost exactly what I wanted to see from the beginning” of his Oculus tenure.

“It is successful, and successful products make the world a better place,” Carmack said of the Quest 2. “It all could have happened a bit faster and been going better if different decisions had been made, but we built something pretty close to The Right Thing.”

But Carmack ended his letter with this entreaty: “Maybe it actually is possible to get there by just plowing ahead with current practices, but there is plenty of room for improvement. Make better decisions and fill your products with ‘Give a Damn!'” 
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Taiwan’s government said on Saturday it would fine Foxconn, the world’s largest contract electronics maker, for an unauthorized investment in a Chinese chip maker even after the Taiwanese firm said it would be selling the stake.

Taiwan has turned a wary eye on China’s ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.

Foxconn, a major Apple Inc. supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup.

Late Friday, Foxconn said in a filing to the Taipei stock exchange its subsidiary in China had agreed to sell its entire equity stake in Tsinghua Unigroup.

Taiwan’s Economy Ministry said in response that its investment commission, which has to approve all foreign investments, will ask Foxconn on Monday for a “complete explanation” about the investment. 

“As for the fact that the investment was not declared beforehand, the amount will still be calculated in accordance with the formula and the penalty will be imposed in accordance with the law,” it said, without giving details. 

Foxconn did not immediately respond to a request for comment. 

People familiar with the matter have previously told Reuters that Foxconn did not seek approval from the Taiwan government before the investment was made and authorities believe it violated a law governing self-ruled Taiwan’s relations with China, which claims the island as its own. 

In a statement on Saturday before the economy ministry’s, Foxconn said as the year-end approached the original investment had “remained unfinalized.” 

Foxconn said that Xingwei, 99% controlled by its China-listed unit Foxconn Industrial Internet Co Ltd., had agreed to sell its holdings for at least $772 million to a Chinese company called Yantai Haixiu. 

Xingwei controls a 48.9% stake in a different entity that holds a 20% stake in the vehicle owning all of Unigroup. 

“In order to avoid uncertainties from further delays or impact to investment planning and the flexible deployment of capital, the Xingwei Fund will transfer its entire holding in Shengyue Guangzhou to Yantai Haixiu,” it said. “After the transfer is completed, FII will no longer indirectly hold any equity in Tsinghua Unigroup.” 

Tsinghua Unigroup did not respond to a request for comment. 

Taiwanese law states the government can prohibit investment in China “based on the consideration of national security and industry development.” Violators of the law could be fined repeatedly until corrections are made. 

Foxconn, formally called Hon Hai Precision Industry Co. Ltd., is keen to make auto chips, in particular, as it expands into the electric vehicle market. 

The company has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics. 

Taipei prohibits companies from building their most advanced foundries in China to ensure they do not site their best technology offshore. 

 
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China is spending $143 billion to combat U.S. moves to cut off its supply of semiconductor technology. 

The funds will be used to provide financial subsidies and incentives to help China’s chipmakers develop and acquire semiconductor technology to withstand the U.S. move. 

This is one of three measures, analysts say, taken by Beijing to protect semiconductor companies supporting its vast electronics, automotive and military hardware industries.  

“China views semiconductors as a strategic resource. Therefore, it wants to become self-sufficient in all aspects of advanced chip design and manufacturing,” said Lourdes S. Casanova, director of the Emerging Markets Institute at Cornell University. “These funds are meant to build China’s capabilities towards this goal.”

Washington issued an order in October barring U.S. companies from supplying semiconductor chips, chipmaking devices, and updates for past sales to Chinese companies. It also prohibited American citizens from working for Chinese semiconductor firms.  

The U.S. government Thursday broadened its crackdown on China’s chip industry by adding memory chipmaker YMTC and 21 “major” Chinese players in the artificial intelligence chip sector to a Commerce Department trade blacklist. YMTC’s suppliers will now be prevented from shipping U.S. goods to it without a license.  

The U.S. move is likely to hit not just China’s semiconductor industry, but dozens of other businesses as well, such as electronics, artificial intelligence, and automobile manufacturing that depend on U.S.-made chips from companies like Nvidia and AMD. The stakes are high. For instance, Chinese electrical vehicle makers controlled 56% of the global market in the first half of 2022. Such vehicles depend heavily on semiconductor chips. 

Analysts said the U.S. order may also force non-U.S. companies using American technology to cut off support for China’s leading factories and chip designers.  

China has initiated the process of challenging the U.S. order at the World Trade Organization.  Its Commerce Ministry has accused the United States of “generalizing the concept of national security and abusing export control measures, which hinders the normal international trade in chips and other products.” 

Non-US support 

The U.S. move would be much less effective if chipmakers in other countries, particularly in Japan and the Netherlands, take advantage of the market vacuum and step up their supplies to China. This is possible because the new $143 billion package will make it possible for Chinese firms to offer higher prices. The United States is lobbying both these countries to refuse Chinese purchase orders. 

China is likely to raise this issue during the expected visit of Japanese Foreign Minister Yoshimasa Hayashi to China later this month. This will be the first visit by the Japanese foreign minister to China.  

“Beijing will very likely discuss the issue. It will make it clear that stopping the supply of semiconductor technology would damage China-Japan relations,” said Dexter Roberts, author, and principal of Cold Mountain, an investment management company. 

Casanova said the Netherlands and other European countries will likely follow U.S. policy. “However, other countries have been more reluctant. For instance, both Mexico and Brazil did not ban Huawei as a possible supplier of telecom equipment in the 5G auctions in both countries,” she said.  

It is difficult to predict Japan’s response to the U.S. request, she said. China is Japan’s No. 1 trade partner, with 22%, followed by the U.S. with 18.5%. 

There are no reports of the United States trying to restrict Taiwan, its close ally, from dealing with the Chinese semiconductor industry. TSMC, the world’s largest semiconductor company, is based in Taiwan.   

“China is the world’s largest importer of semiconductors since 2005 and China’s semiconductor industry relies mainly on imports from the Taiwanese TSMC,” Casanova said. 

Decoupling China’s semiconductor industry from the global supply chain may hurt U.S. consumers, besides taking away business from American companies that supply chips to Chinese firms.  

“As the U.S. continues to ratchet up efforts to slow the development of China’s advanced chips sector, there will be an impact on global and U.S. consumers who will inevitably pay higher prices. There may be supply shortages of the many products that use chips, from autos to mobile phones and electronic devices,” Roberts said. 

At the same time, the United States has realized that starving China of semiconductor technology will not be easy unless it is backed by other countries. In October, the Peterson Institute of International Economics, a Washington-based economic research organization, said semiconductor-producing countries are closely linked to each other in a supply chain. 

“Each of the five major global semiconductor producers—China, South Korea, Japan, Taiwan, and the United States—is also a large chip importer. Not all chips are equal, and no producer specializes in every chip category, leaving even the largest exporters reliant on imports,” it said.  

Despite the odds, the Biden administration has shown it is determined to delink the Chinese semiconductor industry from the global supply zone. The trade war in the chip industry is set to intensify because chips are central to China’s security and industrial growth plans, analysts said. 
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VOA chief national correspondent Steve Herman was among several journalists to be suspended from Twitter late Thursday.

Followers of the former White House bureau chief’s Twitter account were greeted with a blank screen and message saying, “Account suspended.”

Accounts for journalists from CNN, The New York Times and The Washington Post, as well as some independent journalists, showed similar messages.

It was not immediately clear why those accounts were suspended. VOA’s email requesting comment from the media contact listed on Twitter’s company website was returned with a “delivery failure” message.

Many of the reporters have written articles or posted about changes made to Twitter by its new owner, Elon Musk.

In replies to tweets late Thursday, Musk said on the platform: “Criticizing me all day long is totally fine, but doxxing my real-time location and endangering my family is not.”

Musk added: “Same doxxing rules apply to ‘journalists’ as to everyone else,” a reference to Twitter rules banning sharing of personal information, called doxxing.

Reuters reported that Twitter earlier suspended @elonjet, an account tracking Musk’s private jet in real time, a month after he said his commitment to free speech extended to not banning the account.

A spokesperson for the Times said: “Tonight’s suspension of the Twitter accounts of a number of prominent journalists, including The New York Times’ Ryan Mac, is questionable and unfortunate. Neither the Times nor Ryan have received any explanation about why this occurred. We hope that all of the journalists’ accounts are reinstated and that Twitter provides a satisfying explanation for this action.”

CNN in a statement described the suspensions as “impulsive and unjustified” and said it had asked Twitter for an explanation. The broadcaster said it would reevaluate its relationship with the platform based on that response.

Twitter is more heavily using automation to moderate content, over manual reviews, its new head of trust and safety, Ella Iwin, told Reuters this month.

At the time of Herman’s suspension, the veteran broadcast journalist had about 112,000 followers. In the hour or so prior to his account being suspended, Herman had been posting about other journalists being removed from the site.

Some information for this article came from Reuters.
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A hacker who reportedly posed as the chief executive of a financial institution claims to have obtained access to the more than 80,000-member database of InfraGard, an FBI-run outreach program that shares sensitive information on national security and cybersecurity threats with public officials and private sector individuals who run U.S. critical infrastructure.

The hacker posted samples purportedly from the database to an online forum popular with cybercriminals last weekend and said the asking price for the entire database was $50,000. 

The hacker made the disclosures to independent cybersecurity journalist Brian Krebs, who broke the story. The hacker called the vetting process surprisingly lax. 

The FBI did not immediately respond to a request for comment from The Associated Press. Krebs reported that the agency told him it was aware of a potential false account and was looking into the matter. 

InfraGard’s members include business leaders, information technology professionals, and officials of the military, state and local law enforcement, and the government who are involved in overseeing the safety of such things as the electrical grid, transportation, health care, pipelines, nuclear reactors, the defense industry, dams, water plants and financial services. Founded in 1996, it is the FBI’s largest public-private partnership, with local alliances affiliated with all its field offices. It regularly shares threat advisories from the FBI and the Department of Homeland Security and serves as a behind-closed-doors social media site for select insiders. 

The database has the names, affiliations and contact information of tens of thousands of InfraGard users. Krebs first reported its theft on Tuesday. 

The hacker, going by the username USDoD on the BreachForums site, said on the site that records of only 47,000 of the forum’s members — slightly more than half — include unique emails. The hacker also posted that the data contained neither Social Security numbers nor dates of birth. Although fields existed in the database for that information, InfraGard’s security-conscious users had left them blank. 

However, the hacker, according to Krebs, claimed to have been messaging InfraGard members, posing as the financial institution’s CEO, to try to obtain more personal data that could be criminally weaponized. 

The AP reached the hacker on the BreachForums site via private message. The person would not say whether a buyer for the records had been found or answer other questions, but did say that Krebs’ article “was 100% accurate.” 

The FBI did not immediately respond to an email seeking comment on how the hacker was able to trick it into approving the InfraGard membership. Krebs reported that the hacker had included a contact email address under the person’s control, as well as the CEO’s real mobile phone number, when applying for InfraGard membership in November. 

Krebs quoted the hacker as saying InfraGard approved the application in early December and the email account was used to receive a one-time authentication code. 

Once inside, the hacker said, the database information was easy to obtain with simple software script.
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Two Ethiopians have filed a lawsuit against Facebook’s parent company, Meta, over hate speech they say was allowed and even promoted on the social media platform amid heated rhetoric over their country’s deadly Tigray conflict.

Former Amnesty International human rights researcher Fisseha Tekle is one petitioner in the case filed Wednesday and the other is the son of university professor Meareg Amare, who was killed weeks after posts on Facebook inciting violence against him.

The case was filed in neighboring Kenya, home to the platform’s content moderation operations related to Ethiopia. The lawsuit alleges that Meta hasn’t hired enough content moderators there, that it uses an algorithm that prioritizes hateful content and that it acts more slowly to crises in Africa than elsewhere in the world.

The lawsuit, also backed by Kenya-based legal organization the Katiba Institute, seeks the creation of a $1.6 billion fund for victims of hate speech.

A Facebook spokesman, Ben Walters, told The Associated Press they could not comment on the lawsuit because they haven’t received it. He shared a general statement: “We have strict rules which outline what is and isn’t allowed on Facebook and Instagram. Hate speech and incitement to violence are against these rules and we invest heavily in teams and technology to help us find and remove this content.” Facebook continues to develop its capabilities to catch violating content in Ethiopia’s most widely spoken languages, it said.

Ethiopia’s two-year Tigray conflict is thought to have killed hundreds of thousands of people. The warring sides signed a peace deal last month.

“This legal action is a significant step in holding Meta to account for its harmful business model,” said Flavia Mwangovya of Amnesty International in a statement pointing out that the Facebook posts targeting its former researcher and the professor were not isolated cases.

The AP and more than a dozen other media outlets last year explored how Facebook had failed to quickly and effectively moderate hate speech in cases around the world, including in Ethiopia. The reports were based on internal documents obtained by whistleblower Frances Haugen.
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Law enforcement officials and financial services regulators have filed a raft of criminal and civil charges against Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange company FTX, alleging wide-ranging fraud that eventually brought down the company, which was valued at $32 billion earlier this year.

The Department of Justice on Tuesday morning unsealed an indictment charging Bankman-Fried with eight criminal counts, including conspiracy to commit wire fraud, actual wire fraud, money laundering, and violation of laws governing donations to politicians and political parties.

At the request of U.S. prosecutors, Bankman-Fried, 30, was arrested on Monday evening at his home in the Bahamas, where the headquarters of FTX is located. The U.S. and the Bahamas have an extradition treaty, and Bankman-Fried is expected to be transferred to U.S. custody in the near future.

‘House of cards’

Earlier Tuesday, the Securities and Exchange Commission issued its own set of civil charges, also accusing Bankman-Fried of “years-long fraud” that included hiding information from investors, diverting customer funds to a hedge fund he owned, using other customer funds to make political donations, and to purchase hundreds of millions of dollars in real estate.

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler. “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.”

Also on Tuesday, the Commodity Futures Trading Commission filed a lawsuit against Bankman-Fried.

Rapid rise, rapid fall

In the short time since its founding in 2019, FTX grew to be one of the largest cryptocurrency exchanges in the world, and Sam Bankman-Fried — often referred to as “SBF” — became one of the industry’s most recognizable figures. He was a regular speaker at business conferences, gave testimony before Congress, and was seen by many as a model cryptocurrency executive.

The list of investors who plowed billions of dollars into FTX is long and distinguished, including Sequoia Capital, SoftBank Group, Tiger Global Management, and Third Point Ventures.

Earlier this year, Bankman-Fried positioned his company as a savior for the broader crypto industry when a broad selloff of cryptocurrencies left many firms in the space reeling. FTX extended lines of credit to crypto lender BlockFi and crypto broker Voyager Digital in an effort to help them weather the storm. Both BlockFi and Voyager eventually filed for bankruptcy protection.

Signs of trouble

In September, news reports began raising questions about the relationship between FTX and Alameda Research, a hedge fund owned by Bankman-Fried which was supposed to be a completely separate corporate entity from FTX.

However, it gradually became clear that the two companies were actually closely connected. Media reports began to reveal that a large share of Alameda’s assets was tied up in an illiquid crypto token called FTT, which was issued by FTX. Over several days in early November, customers rushed to pull their money from accounts with FTX, sending the company into a massive liquidity crisis and forcing it to stop processing customer withdrawals.

After several days of attempts to arrange a rescue package, including a briefly considered sale of FTX to Binance, its largest competitor, FTX, Alameda, and more than 100 affiliated companies filed for bankruptcy.

On Tuesday, the Justice Department and the SEC alleged that Alameda actually had “virtually unlimited” access to funds held by FTX on behalf of its customers.

The charges against Bankman-Fried claim that Alameda illegally used those funds to invest in highly illiquid cryptocurrency tokens, as well as to make “undisclosed venture investments, lavish real estate purchases, and large political donations.”

Before its collapse, cryptocurrency investors around the world had placed billions of dollars in their accounts with FTX. In large part because of transfers to Alameda, FTX is facing an estimated shortfall of $8 billion.

‘I made a lot of mistakes’

Against the advice of his attorneys, Bankman-Fried has given a number of interviews to news organizations since his company declared bankruptcy. His contention has been that, while he may have made mistakes, he never intended to defraud anyone.

In early December, Bankman-Fried told The Wall Street Journal that he could not account for money that FTX customers transferred to Alameda Research.

In an appearance at a conference sponsored by The New York Times, he said, “Clearly I made a lot of mistakes. There are things I would give anything to be able to do over again. I did not ever try to commit fraud on anyone. I was excited about the prospects of FTX a month ago. I saw it as a thriving, growing business. I was shocked by what happened [in November.]”

His claims contradict the allegations leveled by prosecutors in the indictment unsealed Tuesday, which accuse Bankman-Fried of “willfully and knowingly” defrauding investors and customers.

‘Utter failure’ of controls

Last month, control of FTX and its constituent companies was turned over to John Ray III, an attorney and corporate insolvency specialist who has been brought on to manage multiple companies facing bankruptcy, including the failed energy giant Enron in the early 2000s. His primary task will be to assemble all the remaining assets of FTX in an effort to recover some of the money its customers lost in the exchange’s collapse.

Ray appeared at a hearing held by the House Financial Services Committee on Tuesday, during which he described a company that lacked even the most basic corporate governance structures and was run by a small cabal ill-equipped for the job of running a multi-billion dollar corporation.

In prepared testimony, Ray said, “[N]ever in my career have I seen such an utter failure of corporate controls at every level of an organization, from the lack of financial statements to a complete failure of any internal controls or governance whatsoever.”

In the broadest sense, Ray said, the company’s failure was the result of the “absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets.”

Under questioning, Ray said that the asset recovery process will take months to complete, and will not make FTX customers whole. “At the end of the day, we’re not going to be able to recover all the losses here,” he said.

The committee had also expected to hear from Bankman-Fried on Tuesday, but the FTX founder’s arrest on Monday made that impossible.

Lawmakers angry

The allegations of fraud and mismanagement at FTX have raised calls in Washington for action by Congress to rein in the cryptocurrency industry, which operates under a poorly defined set of regulatory rules.

House Financial Services Committee Chair Maxine Waters on Tuesday said that she was “deeply troubled” by the revelations coming out about FTX. At the same hearing, U.S. Representative Patrick McHenry, who will take over the chairmanship when Republicans assume control of the House next month, criticized Bankman-Fried but said that he still sees “promise” in digital assets.

Others were less tolerant of the industry, with Representative Brad Sherman, a Democrat, calling the entire industry “a garden of snakes.”

Industry representatives urged lawmakers to tread carefully when it comes to establishing new rules for cryptocurrencies.

“Following the failure of FTX International, it’s understandable that lawmakers want to do something, but they should be wary of passing legislation in haste that would do more harm than good,” Kristin Smith, executive director of the Blockchain Association, wrote on Monday. “Instead, Congress should take its time to investigate the issues we’ve seen and work closely with the crypto industry to find solutions that benefit everyone.”
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NASA’s Orion capsule made a blisteringly fast return from the moon Sunday, parachuting into the Pacific off Mexico to conclude a test flight that should clear the way for astronauts on the next lunar flyby.

The incoming capsule hit the atmosphere at Mach 32, or 32 times the speed of sound, and endured reentry temperatures of 5,000 degrees Fahrenheit (2,760 degrees Celsius) before splashing down west of Baja California near Guadalupe Island. A Navy ship quickly moved in to recover the spacecraft and its silent occupants — three test dummies rigged with vibration sensors and radiation monitors.

NASA needed a successful splashdown to stay on track for the next Orion flight around the moon, currently targeted for 2024. Four astronauts will make the trip. That will be followed by a two-person lunar landing as early as 2025.

Astronauts last landed on the moon 50 years ago Sunday. After touching down on Dec. 11, 1972, Apollo 17’s Eugene Cernan and Harrison Schmitt spent three days exploring the lunar surface, the longest stay of the Apollo era. They were the last of the 12 moonwalkers.
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The Wall Street Journal reports U.S. smartphone giant Apple Inc. is accelerating plans to move some China-based production lines to other southeastern Asian countries such as India and Vietnam.

That, analysts said, would represent a significant shift in the so-called de-Sinification of global supply chains after manufacturers become aware of risks of concentrating production in China.

China’s zero-COVID policy, which paralyzed some of its supply chains, and its deteriorating business environment would be the major trigger behind the shift, they added.

India: the world’s next factory?

“China’s anti-virus measures have forced many multinationals, including Apple, to hedge against the risk of disrupted supply chains. Though China is set to ease COVID restrictions, uncertainty remains because these multinationals have had experienced much sudden change of policy there – reasons behind Apple’s accelerated relocation of its production lines outward,” Darson Chiu, a research fellow of the economic forecasting center under the Institute of Economic Research (TIER) in Taipei, told VOA over the phone.

He said that many companies, including Apple, have seen the potential in India in competing with China to be “the world’s next factory,” adding that cost of labor and land is “at one-fifth of the level in China.”

“This highlights an evolving trend, where many companies, not just Apple, are concerned about the environment in China, and not just because of COVID. When we look at theft of intellectual property, that’s of technology, cyber-attacks on companies inside China, the onerous restrictions that apply from Chinese government to data flows, there are a number of factors that are making China a much less attractive environment for manufacturers to be,” Stephen Ezell, director of global innovation policy at the Information Technology and Innovation Foundation (ITIF) in Washington told VOA by video.

“And I think it’s possible that Apple represents the tip of the spear for a much greater share of global high-tech production moving outside of China,” he added.

A domino effect?

Ezell said more multinationals might follow suit if Apple succeeds in shipping products from India, as it had produced a small percentage of iPhone 14s there.

Citing people involved in the discussion, The Wall Street Journal reported on December 6 that Apple had asked its suppliers to plan more actively for assembling its products elsewhere in Asia, “particularly India and Vietnam,” to reduce dependence on China-based assemblers, led by Taiwan-headquartered Foxconn’s Zhengzhou plant. 

Turmoil over anti-virus measures and wage disputes last month among the plant’s 300,000 workers have made Apple uncomfortable having so much business tied up in the plant, which made about 85% of the iPhone’s pro series, according to the report.

It added that Apple’s long-term goal is to ship 40% to 45% of iPhones from India, compared with a current single-digit percentage, citing Ming-chi Kuo, an analyst at TF International Securities in Hong Kong.

When asked by VOA, Foxconn refused to comment. But the company Thursday announced on its WeChat account that it has lifted closed-loop Covid restrictions at its Zhengzhou plant.

Paul Triolo, senior vice president for China, and technology policy lead at Albright Stonebridge Group in Washington, told VOA that Apple has already done some manufacturing with Foxconn in India, which plans to add 50,000 workers to total at 70,000 there over the next two years.

He warned, though, that it will be hard for Foxconn to duplicate its highly optimized China supply chain in India, where skilled workers and infrastructure including airports, ports and high-speed rail, as well as an ecosystem of component suppliers at a low cost, are lacking.

Painful transition

“India has some advantages … it does tend to crank out a lot of engineers but you’re talking about a sort of different cultural issues and expectations and labor practices, and all these things. So it’s not as easy as just picking up something and dropping it into another country. You have to learn the local situation. You have to work with local governments. That can be painful,” Triolo told VOA by video.

He added that, even though companies like Foxconn are good at managing production, the cost structures will be different in India.

Hence, he noted that some of Apple’s diversification of supply chains may happen inside China, as Foxconn is reportedly looking to expand at its Taiyuan plant in China’s northern Shanxi province.

The biggest challenge of all lies in India’s ability to strengthen its depth of supplier base for Apple at an optimal cost, Ezell said.

“The production ecosystem, that’s what’s the key driver in decreasing the cost, not just low labor costs. So, the challenge for India is going to be several folds. One, building a localized base of suppliers that can support production at lower cost. And then more broadly, ensuring that India does have the highly skilled trained workforce and individuals that had experience and building what are truly very complex electronics with iPads or phones,” Ezell said.

Negative impact on China’s jobless rate

Arthur Guo, a senior analyst at the market intelligence firm International Data Corp in Beijing, said he would not be surprised to see Apple diversify the production of its iPhone 15 next year after the lockdown at Foxconn’s Zhengzhou plant has seriously affected the supply of the iPhone 14.

That will hurr China’s economic growth and unemployment rate, Guo said in a written reply to VOA.

“However, this relocating process will last for a period and will not be implemented immediately. In the future, we believe China still will be an important production country for Apple and will find a better solution to this problem,” Guo added.

Earlier estimates by TF’s Kuo showed that the total shipment of iPhone 14 pro and pro max in the fourth quarter would be 15 million to 20 million units less than expected due to labor protests at the Zhengzhou plant.
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Taiwanese chip giant TSMC is building a second U.S. facility in the southwest state of Arizona, highlighting the Biden Administration’s push to bring more of the semiconductor supply chain to the United States. But are there enough trained workers there to meet the demand? Michelle Quinn has our story from Arizona, where they are ramping up training for workers and students at all levels. Videographer: Levi Stallings 
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After more than half a century, the last Boeing 747 rolled out of a Washington state factory on Tuesday.

The 747 jumbo jet has taken on numerous roles — a cargo plane, a commercial aircraft capable of carrying nearly 500 passengers, and the Air Force One presidential aircraft — since it debuted in 1969. It was the largest commercial aircraft in the world and the first with two aisles, and it still towers over most other planes.

The plane’s design included a second deck extending from the cockpit back over the first third of the plane, giving it a distinctive hump that made the plane instantly recognizable and inspired a nickname, the Whale. More elegantly, the 747 became known as the Queen of the Skies.

It took more than 50,000 Boeing employees less than 16 months to churn out the first 747. The company has completed 1,573 more since then.

But over the past 15 years or so, Boeing and its European rival Airbus released new wide-body planes with two engines instead of the 747’s four. They were more fuel-efficient and profitable.

Delta was the last U.S. airline to use the 747 for passenger flights, which ended in 2017, although some other international carriers continue to fly it, including the German airline Lufthansa.

The final customer is the cargo carrier Atlas Air, which ordered four 747-8 freighters early this year. The last was scheduled to roll out of Boeing’s massive factory in Everett, Washington, on Tuesday night.

Boeing’s roots are in the Seattle area, and it has assembly plants in Washington state and South Carolina. The company announced in May that it would move its headquarters from Chicago to Arlington, Virginia.

The move to the Washington, D.C., area puts its executives closer to key federal government officials and the Federal Aviation Administration, which certifies Boeing passenger and cargo planes.

Boeing’s relationship with the FAA has been strained since the deadly crashes of its best-selling plane, the 737 Max, in 2018 and 2019. The FAA took nearly two years — far longer than Boeing expected — to approve design changes and allow the plane back in the air.
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U.S. President Joe Biden was in Arizona Tuesday promoting investments in U.S. semiconductor manufacturing. He was joined by officials from the Taiwanese semiconductor giant TSMC, which says it is tripling its Arizona investment. VOA correspondent Michelle Quinn has our story.
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