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TSMC, SMIC, UMC see gross sales enhance as chip scarcity rages

Memory chips are seen on a Samsung Electronics memory module in this arranged photograph in Seoul, South Korea, on Thursday, July 26, 2018.

SeongJoon Cho | Bloomberg | Getty Images

The world’s 10 biggest chip manufacturing companies saw their revenues surge to a record high in the first quarter of 2021, according to market research firm TrendForce.

The combined quarterly total revenue of the chipmakers, known as foundries, rose to a record high of $22.75 billion in the first quarter, according to a TrendForce blog published Monday.

Chips are used in everything from cars and games consoles, to washing machines and toothbrushes. They form part of the life blood of the global economy and are vital to many of the world’s biggest industries. But they’re also in short supply —  and the shortage could last until 2023.

“Owing to soaring demands for various end devices, manufacturers have been ramping up their component procurement activities, and foundry capacities, as a result, have been in shortage since 2020, with various foundries raising their wafer prices and adjusting their product mixes to ensure profitability,” TrendForce analyst Joanne Chiao wrote.

Around 57% of the world’s chip foundry revenues in the last quarter were generated by one Taiwanese chipmaker: TSMC, or the Taiwan Semiconductor Manufacturing Corporation.

The Taipei-headquartered firm saw its revenue climb to $12.9 billion in the first quarter, up 2% on the first quarter of 2021, according to TrendForce, which analyzed how well each of the company’s various chips sold.

The U.S. and the European Union have said they want to be more self-reliant when it comes to semiconductors as the vast majority of the world’s chips are made in Asia.

TSMC chips

TSMC’s 7, 12 and 16 nanometer (nm) chips are the company’s main revenue drivers, according to TrendForce.

“The revenue from the 7nm foundry service has kept climbing at a stable pace thanks to orders from AMD, MediaTek, and Qualcomm,” Chiao said, adding that sales are up 23% on the last quarter.

Meanwhile, revenue for 12nm and 16nm chips has “grown on account of the demand related to MediaTek’s 5G RF (radio frequency) transceivers and Bitmain’s cryptocurrency mining machines,” TrendForce added, highlighting how sales are up almost 10% on the last quarter.

However, sales of TSMC’s smallest and most innovative 5nm chips actually saw a quarterly decrease, Chiao said, adding that the main reason is because Apple (TSMC’s largest 5nm client) “entered the off-season for device production.”

Storm hurts Samsung

Elsewhere, South Korean chip giant Samsung saw its foundry revenue drop 2% on the last quarter to $4.1 billion.

Chiao said that’s partly because a freak winter storm in February in Texas caused power outages in Austin and forced Samsung to temporarily stop producing chips at one of its plants in the state.

Elsewhere, Taiwan’s United Microelectronics Corporation saw its quarterly revenues climb 5% quarter on quarter to $1.6 billion, while China’s SMIC saw its climb 15% to $1.1 billion.

TrendForce expects the chip foundries to see further revenue growth as the prices of the chip wafers they produce continue to rise and demand persists.

It said the quarterly total revenue of the top 10 foundries will “once again reach a historical high” by undergoing a 1-3% increase quarter-on-quarter for the second quarter of 2021.

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First Worldwide Athletes Arrive in Japan for the Olympics

Australia’s women’s national softball team became the first international female participant to arrive in Japan ahead of the Tokyo Olympics on Tuesday, a vote of confidence in a battered event battling a coronavirus outbreak and growing public opposition.

The 23 players and 10 staff, all vaccinated against Covid-19, landed at Narita International Airport outside Tokyo and traveled to the city of Ota, where they will train before moving to the Olympic Village on July 17.

The team known as the Aussie Spirit must severely restrict their movements as Japan seeks to contain a sustained fourth wave of the coronavirus. On Friday, the Japanese government extended the state of emergency in Tokyo and eight other prefectures until June 20. In other prefectures – including Gunma, where the Australian players will be training – emergency measures are in place that will limit the hours and capacities of companies in certain locations, ending 6/13.

New infections every day have declined by more than 40 percent in the past two weeks, according to a New York Times database, but Japan is still seeing more than 3,500 cases a day, most since January.

The Australian team will be confined to one level of a hotel where the players eat, train and meet. You can only leave the hotel to exercise.

“They will be extremely limited in what they can do each day and that will require another sacrifice for them, but it is a sacrifice they are ready,” Ian Chesterman, vice president of the Australian Olympic Committee, said Monday .

The players have not been competing against international teams since February 2020 as Australia’s borders have been almost completely closed since the beginning of the pandemic. Their early arrival in Japan will enable them to train against Japanese professional softball clubs and the Japanese national team. Out of the 23 Australian players who traveled to Japan, a team of 15 will be selected for the games, which are set to begin on July 23.

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Inventory futures begin month barely decrease after main indexes noticed beneficial properties in Might

Traders on the floor of the New York Stock Exchange.

Source: NYSE

Stock futures are slightly lower in overnight trading after major indexes saw gains in May.

Futures on the Dow Jones Industrial Average fell 30 points, or 0.09%. S&P 500 futures shed 0.09% and Nasdaq 100 futures ticked 0.04% lower.

The moves in overnight trading come after the blue-chip Dow and the S&P 500 gained 1.93% and 0.55% in May, respectively, to mark their fourth consecutive positive month. The S&P 500 closed Friday just 0.8% off its record high.

The small cap Russell 2000 rose 0.11% in May to post its eighth positive month in a row — its longest monthly win streak since 1995.

The Nasdaq gained 2.06% last week to post its best weekly performance since April. However, the tech-heavy composite lost 1.53% in May, breaking a 6-month win streak.

A key inflation gauge — the core personal consumption expenditures index — rose 3.1% in April from a year earlier, faster than the forecasted 2.9% increase. Despite the hotter-than-expected inflation data, treasury yields fell on Friday.

“Overall, given the market’s reaction to [Friday]’s PCE release, investor concerns about inflation may have been exaggerated — or perhaps already priced in,” Chris Hussey, a managing director at Goldman Sachs, said in a note.

“Consensus may be building that the inflation we are seeing today is ‘good’ inflation — the kind of rise in prices that accompanies accelerating growth, not a monetary policy mistake,” Hussey said.

Investors are awaiting the Federal Reserve’s meeting scheduled for June 15-16. Key for the markets is whether the Fed begins to believe that inflation is higher than it expected or that the economy is strengthening enough to progress without so much monetary support. 

May’s employment report, set to be released on Friday, will provide a key reading of the economy. According to Dow Jones, economists expect to see about 674,000 jobs created in May, after the much fewer-than-expected 266,000 jobs added in April.

Zoom Video Communications and Hewlett Packard Enterprise are set to report quarterly earnings results on Tuesday after the bell.

— CNBC’s Patti Domm contributed reporting.

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For China’s Single Moms, a Highway to Recognition Paved With False Begins

For a few wonderful weeks, Zou Xiaoqi, a single mother in Shanghai, felt accepted by her government.

After giving birth in 2017, Ms. Zou, a financial clerk, went to court to question Shanghai’s policy of granting maternity benefits only to married women. She had little success and lost one lawsuit and two appeals. Then, earlier this year, the city suddenly dropped its marriage obligation. In March, a jubilant Ms. Zou received a performance check on her bank account.

She had barely started partying when the government reintroduced policy a few weeks later. Unmarried women were again not entitled to government payments for medical care and paid vacation.

“I always knew there was this possibility,” said Ms. Zou, 45 years old. “If you can get me to return the money, I will probably return it.”

The Shanghai authorities’ flip-flop reflects a broader view in China of longstanding attitudes towards family and gender.

Chinese law does not specifically prohibit single women from giving birth. However, official family planning guidelines only mention married couples, and local officials have long provided benefits based on these provisions. Only Guangdong Province, which borders Hong Kong, allows unmarried women to apply for maternity insurance. In many places women still face fines or other punishments for childbirth out of wedlock.

But as China’s birthrate has plummeted in recent years and a new generation of women embraced feminist ideals, these traditional values ​​have come under increasing pressure. Now a small but determined group of women are demanding guaranteed maternity benefits regardless of marital status – and, more generally, recognition of their right to make their own reproductive choices.

The U-turn in Shanghai, however, highlights the challenges facing feminists in China, where women face deeply ingrained discrimination and a government that is suspicious of activism.

It also shows the authorities’ reluctance to give up decades of control over family planning, even in the face of demographic pressures. The ruling Communist Party announced Monday that it would end its two-child policy, which allows couples to have three children in the hope of reversing a falling birth rate. However, single mothers remain unrecognized.

“There has never been a change in the policy,” said a Shanghai maternity hotline agent when he was reached by phone. “Single mothers never met the requirements.”

Ms. Zou, who found out she was pregnant after breaking up with her boyfriend, said she would continue to fight for recognition even though she didn’t need the money.

“This is about the right to vote,” she said. Currently, when an unmarried woman becomes pregnant, “You can either get married or have an abortion. Why not give people the right to a third choice? “

As education levels have risen in recent years, more and more Chinese women have refused marriage, childbirth, or both. According to government statistics, only 8.1 million couples got married in 2020, the lowest number since 2003.

With the rejection of marriage, the recognition of single mothers has increased. There are no official statistics on single mothers, but a 2018 report by the state-sponsored All-China Women’s Federation estimates that there will be at least 19.4 million single mothers in 2020. These included widowed and divorced women.

When Zhang A Lan, a 30-year-old filmmaker, grew up in Central Hebei Province, unmarried mothers were viewed as defiled and sinful, she said. When she decided to give birth without getting married two years ago, it was common for people on social media to question these old stereotypes.

“Marriage is obviously not a prerequisite for childbirth,” said Ms. Zhang, who gave birth to a boy last year.

Yet many women described a persistent gap between attitudes on the Internet and in reality.

Many Chinese are still concerned about the financial burden and social stigma that single mothers face, said Dong Xiaoying, a Guangzhou lawyer who advocates the rights of single mothers and gay couples. Lesbians are also often denied maternity rights because China does not recognize same-sex unions.

Ms. Dong, who wants to have a child out of wedlock herself, said her parents found the decision incomprehensible.

“It’s a bit like getting out of the closet,” said Ms. Dong, 32. “There’s still a lot of pressure.”

However, the biggest obstacles are official.

The authorities have taken some measures to start recognizing the reproductive rights of single women. A representative of the National People’s Congress, China’s legislature, has for years put forward proposals to improve the rights of unmarried women. While authorities have shut down other feminist groups, those who support unmarried mothers have largely escaped control.

The easier contact with authorities may be due, at least in part, to the fact that women’s goals are aligned with national priorities.

China’s birth rate has declined in recent years after decades of one-child policies severely reduced the number of women of childbearing age. Recognizing the threat to economic growth, the government has begun pushing women to have more children. On Monday, she announced that couples would be allowed to have three children. The government’s latest five-year plan, published last year, promised a more “inclusive” birth policy and raised hopes for recognition of unmarried mothers.

A state outlet was recently mentioned in a headline about the original relaxation of politics in Shanghai: “More and more Chinese cities are offering maternity insurance to unmarried mothers in the demographic crisis.”

But the obvious support only goes so far, said Ms. Dong. Far from promoting women’s empowerment, the authorities have recently attempted to pull women out of the workforce and return to traditional gender roles – the opposite of what single motherhood would allow. “From a governance point of view, they don’t really want to open up completely,” she said.

The National Health Commission emphasized this year that family planning is the responsibility of “husbands and wives together”. In January, the Commission rejected a proposal to open up egg freezing to single women, citing ethical and health concerns.

Open rejection of gender norms can still lead to reprisals. Last month, Douban, a social media site, shut down several popular forums where women discussed their desire not to marry or have children. Site moderators accused the groups of “extremism”, according to group administrators.

Shanghai’s U-turn was the clearest example of the authorities’ mixed message on the reproductive rights of unmarried women.

When the city appeared to be expanding maternity benefits earlier this year, officials never specifically mentioned unmarried women. Their announcement simply said that a “family planning review” that required a marriage certificate would no longer be conducted.

In April women were again asked for their marriage certificates when applying online.

“The local administrators don’t want to take responsibility,” said Ms. Dong. “No higher national authority has said that these family planning rules can be relaxed, so they don’t dare to open that window.”

Many women hope that pressures from an increasingly vocal public will make such regulations untenable.

32-year-old Teresa Xu saw this postponement firsthand in 2019 when she filed a lawsuit against China’s ban on freezing eggs for single women. At first, the judge treated her like a “naive little girl,” she said. But when her case found support on social media, officials became more respectful.

Even so, her case is still pending and officials have not given her an update in over a year. Ms. Xu said she was confident in the long run.

“There’s no way of predicting what they’re going to do in the next two or three years,” she said. “But I think there are some things that cannot be denied when it comes to the development and desires of society. There is no way to reverse this trend. “

Joy Dong contributed to the research.

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South Africa races to halt third Covid wave as its financial outlook improves

A healthcare worker holds a vile containing Pfizer vaccine to be administered on elderly persons at the Bertha Gxowa Hospital in Germiston, on May 17, 2021.

Michele Spatari | AFP | Getty Images

South African economic activity has rebounded quicker than expected in recent months and the rand is the strongest-performing emerging market currency this year, but the country is racing to roll out Covid-19 vaccines as a third wave looms.

In its Financial Stability Review on Thursday, the South African Reserve Bank said the economy was continuing to rebound from a 2020 recession that saw gross domestic product contract by 7%, its steepest decline for over a century.

“Positive data releases, an uptick in global economic activity, robust international trade, elevated commodity prices and improved mobility” led NKC African Economics to upgrade its first-quarter GDP forecast to a 1.4% quarterly expansion, up from a previous forecast of a 3.3% contraction. NKC analysts now expect GDP to grow by 3.1% in 2021.

The industrial sector, particularly mining and manufacturing, has demonstrated positive growth rates on the back of increased global demand and high commodity prices 

“Google Mobility data, which has proven to be a good indicator of economic activity, has improved to its best levels since the coronavirus shock occurred,” NKC senior economist Pieter du Preez highlighted in a note Wednesday.

Third wave risks

The major ratings agencies have all reaffirmed their ratings for South Africa over the past week, but Fitch noted that although the fiscal accounts surprised to the upside on both the fourth quarter of 2020 and first quarter of 2021, the country still faces “substantial risks to debt stabilization.”

S&P also highlighted structural complaints, a lack of economic reforms and a sluggish vaccination drive as hindrances to medium-term growth potential.

Despite the positive surprises thus far, the SARB warned the outlook remains highly dependent on the pace of the vaccine rollout and possible resurgence of the virus, suggesting that the pandemic could last into 2022.

To date, the country has reported a total of over 1.6 million Covid cases, and more than 56,000 deaths, according to data compiled by Johns Hopkins University.

Now, South Africa’s seven-day rolling average of new daily cases is rising, up from its nadir of around 780 in early April to over 3,700 at the end of last week.

Given the scale of the previous hit to economic activity, the government appears reluctant to reimpose stringent virus restrictions, though President Cyril Ramaphosa met with the country’s coronavirus taskforce this week to discuss possible strategies.

South African President Cyril Ramaphosa visits the coronavirus disease (COVID-19) treatment facilities at the NASREC Expo Centre in Johannesburg, South Africa April 24, 2020.

Jerome Delay | Reuters

South Africa has begun working toward its goal to vaccinate 5 million senior citizens by the end of June and 67% of its 60 million population by February. The country has purchased 30 million doses of the Pfizer-BioNTech inoculation and ordered 31 million doses of Johnson & Johnson’s vaccine, both of which have proven effective against the dominant variant circulating in the country.

The central bank also noted the risks posed by an abrupt shift in global financial conditions and the consistently “high and rising level of public debt” in South Africa.

NKC’s du Preez said the impending third wave of Covid-19 will disrupt the economic recovery process. Meanwhile, the government is embroiled in protracted negotiations with unions over its commitment to freezing public sector wages, which du Preez said is also negative for the economic outlook.

“The National Treasury would either be forced to reprioritize expenditure or over-spend on an already large fiscal deficit,” he said. 

“Reprioritizing expenditure would entail reducing funding for critically important sectors in the economy or reducing very much needed infrastructure upgrades.”

The Treasury therefore finds itself “between a rock and a hard place,” du Preez added, since overspending could send out a signal that authorities are not serious about fiscal consolidation.

Roaring rand

Any sign of fading commitment to this austerity drive would exert pressure on the rand, Capital Economics senior emerging markets economist Jason Tuvey highlighted in a recent note.

The rand has soared on the back of higher metals prices, and was trading up at around 13.76 to the dollar by Monday morning. 

However, Capital Economics analysts said in a note Thursday that “the star performance of the rand is unlikely to last as we expect most commodity prices to fall back, and that U.S. long-term yields will begin to rise again, putting renewed pressure on EM currencies.”

“In addition, we think the SARB will not tighten policy as quickly as investors now discount, and that concerns about South Africa’s fiscal situation will eventually resurface.”

Capital Economics anticipates that the rand will weaken to around 15.5 to the dollar by the end of the year.

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Dispute Over a Coal Trade Pits Poland Towards Its Neighbors

However, this won’t solve a major problem. A sudden withdrawal from coal, feared by many in Poland, will put the country in the position of Germany, which is heavily dependent on natural gas imports from Russia.

Polish Prime Minister Mateusz Morawiecki said this month that the government will not allow the Bogatynia mine to close because “it could endanger Poland’s energy security”.

More important, however, are the domestic political risks of a swift move away from coal.

During a visit to Bogatynia prior to Poland’s election as president last year, incumbent Andrzej Duda said that miners had done Poland “a great service” and that they would not be given up. The city’s voters supported him in the elections and helped him win.

Andrzej Grzegorowski, union leader at the power station next to the Turow mine, said he voted for Mr Duda because “he has high hopes for the future of coal”. However, whether he will vote again for Mr Duda’s ruling Law and Justice Party will depend on whether they keep the mine open, he added.

Fearful of fighting the miners, a shrinking but well-organized and vocal constituency, Polish politicians have long struggled to balance demand for green energy from Brussels with voter demand for jobs.

“Everyone in my family has always been connected to the mine here,” said Bogumił Tyszkiewicz, union leader at the Turow mine. His two brothers, two brothers-in-law and his sister work for the Polish Energy Group (PGE), a state-owned company that operates the mine and the adjacent power plant. Only his son, who has found work for a green electricity company in another city, does not depend on the mine for a living.

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Tesla begins utilizing cabin cameras for driver monitoring

Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019.

Frederic J. Brown | AFP | Getty Images

Tesla has started using cabin cameras in some Model 3 and Model Y vehicles to make sure drivers are paying attention to the road when they use driver assistance features, according to release notes obtained by CNBC.

Their Model 3 and Model Y cars already had driver-facing cabin cameras, but the company’s owners manuals said they were not used for driver monitoring. Instead, Tesla’s systems required drivers to “check in” by touching the steering wheel, which is equipped with sensors.

Now, Tesla is telling drivers their cabin cameras have been switched on for driver monitoring in new vehicles that lack radar sensors, according to Kevin Smith, a second-time Tesla buyer in Murfreesboro, Tennessee. Smith says he took delivery of a 2021 Tesla Model Y crossover on Thursday.

The technical changes come amid regulatory scrutiny of Tesla vehicle safety in the U.S. and abroad. The company is facing dozens of federal probes into the underlying causes of Tesla-involved crashes in the U.S., some of which may have involved Autopilot.

Elon Musk’s auto business sells its driver assistance systems under the brand names Autopilot and Full-Self Driving, or FSD, an optional $10,000 upgrade. Tesla also offers some drivers who paid for FSD the option to try unfinished driver assistance features in its FSD Beta program, effectively turning them into beta testers.

Tesla’s owners manuals caution drivers that use of these systems requires “active supervision.” However, owners have repeatedly demonstrated over-confidence in the systems, sharing videos and accounts of driving while asleep at the wheel, driving without their hands on the wheel, or even driving while sitting in the passenger or back seat of the car.

A federal vehicle safety watchdog, the National Transportation Safety Board, has called on Tesla to stop beta-testing on public roads using customers in lieu of professionals, and to add robust driver monitoring to its vehicles.

It’s not clear whether Tesla’s new camera-based driver monitoring system and cars without radar meet the standards set forth by the NTSB or other safety standards.

One owner’s experience

Kevin Smith ordered his 2021 Model Y at the end of March and expected to get a vehicle with the sensor suite Tesla previously marketed, including radar.

But on Tuesday this week, Tesla announced it would exclude radar and downgrade the vehicles’ functionality in a blog post. The post also said Tesla will restore the missing features once Tesla transitions customers to a “pure vision” or camera-based version of its driver assistance and safety features.

Before he could get his new Model Y delivered, Smith was asked in an “Order Update” on the Tesla website to confirm that he would accept the modified car for the same price as the one he originally ordered.

The waiver noted that the company is transitioning to Tesla Vision, its camera-based Autopilot system, and that some new cars delivered beginning in May 2021 will not have radar. It also cautioned that Vision may be delivered with some features “temporarily limited or inactive” and said Tesla will restore those features with over-the-air software updates in the “weeks ahead.”

An Order Update for Tesla customers taking delivery of Model 3 or Model Y in May 2021.

Screenshot

When he took delivery of his all-wheel-drive 2021 Model Y, Smith saw a “release note” in the vehicle’s touchscreen display that informed him of a cabin camera update:

“The cabin camera above your rearview mirror can now detect and alert driver inattentiveness while Autopilot is engaged. Camera data does not leave the car itself, which means the system cannot save or transmit information unless data sharing is enabled. To change your data settings, tap Controls > Safety & Security > Data Sharing on your car’s touchscreen.”

Adding a camera-based driver monitoring system does not restore the driver assistance and safety features Tesla said it had turned off for now.

Consumer Reports and the Insurance Institute for Highway Safety on Wednesday removed top-level safety endorsements for the Model 3 in the U.S. after the company announced it had excluded radar from these vehicles. Consumer Reports noted, “The government’s top vehicle safety rating agency says the vehicles may lack some key advanced safety features, including forward collision warning (FCW) and automatic emergency braking (AEB).”

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Nashville Hat Store Bought Yellow Star Anti-Vaccine Patches

On Saturday, protesters gathered outside a hat shop in Nashville that sold “unvaccinated” Star of David patches and compared vaccination records with the Nazi practice of requesting “your papers.”

The store, Hatwrks, said on Instagram in a post that was later deleted that it was selling the patches for $ 5. In an outbreak of anti-Semitic attacks across the country, the post was criticized on social media and off-store, where protesters held signs saying “No Nazis in Nashville” and “Sell hats, don’t hate”.

In a separate post on the store’s Instagram account, which also touted “mask-free shopping” and promoted the conspiracy theory that vaccines contain microchips, it says, “All unvaccinated people are segregated from society, tagged and required a mask wear. What’s next?”

The hat company Stetson said that “because of the objectionable content and opinions of Hatwrks,” the store would stop selling its products.

A post on the business’s account responding to the criticism reads, “I respect history a lot more by campaigning against the fallen than offering silence and compliance.” A later post apologized “for any insensitivity “and said,” my hope was to share my sincere concern and fear and to do everything possible to ensure that nothing “like the Holocaust” ever happens again.

Gigi Gaskins, who is the shopkeeper according to state records, didn’t respond to requests for comment.

The criticism of vaccination passports or the digital proof of a Covid-19 vaccination goes beyond the USA: demonstrators gathered in London and Brussels on Saturday to protest the vaccination requirements.

Oregon said last week that companies would need to check customers’ vaccination status before they could enter without a mask, despite corporate groups there questioning the practicality of the requirement. New York created the Excelsior Pass, but doesn’t require it to be widely used.

In Tennessee, Republican Governor Bill Lee signed law on Wednesday banning local governments from requiring businesses to review vaccination records.

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Large success paves means for automotive entry

Craig Federighi, Apple’s senior vice president of software engineering, speaks about CarPlay on stage during Apple’s Worldwide Developer Conference on June 5, 2017 in San Jose, California.

Josh Edelson | AFP | Getty Images

In the early 2010s, automakers and their suppliers were excited about creating sophisticated auto dashboard apps that went beyond a CD player and tiny LED screen.

Automakers worked with companies like Microsoft to develop maps, music, and road assistance services that are often bundled into one upgrade package. They joined large consortia to create industry standards for connecting smartphones to cars.

Then Apple came in and changed everything.

Apple introduced CarPlay in 2014 to integrate the iPhone and the dashboard of a car. Since then, it has become ubiquitous in new cars.

Over 80% of new cars sold worldwide support CarPlay, Apple said last year. That corresponds to around 600 new models, including cars from Volkswagen, BMW and Chrysler. One of the longest-running holdouts, Toyota began recording CarPlay in 2019.

It’s also a top feature for many drivers and car buyers. 23 percent of new car buyers in the US say they “must have” CarPlay, and 56 percent are interested in having CarPlay when buying a new vehicle, according to a 2017 Strategy Analytics study. When Ford’s highly anticipated electric F-150 hits stores, it will support CarPlay.

Apple has been able to fit in between customers and car companies, making sure the user interface is what every iPhone user wants while on the move. It is an underrated triumph for one of the most successful companies in the world. CarPlay does not directly contribute to Apple’s sales or profits. But it ensures the continued loyalty of iPhone users and gives Apple a path into the auto industry if it wants to expand.

The performance of the smartphone

Control your music easily in CarPlay with iOS 13.

Most cars use an infotainment operating system based on Linux, BlackBerry QNX, or Google’s Android Automotive to run a screen embedded in the car’s dashboard. The infotainment systems often have their own music or map software and automotive companies sell wireless subscriptions and other updated features for them.

CarPlay runs on these infotainment operating systems and allows iPhone owners to access their most important apps while driving in a way that is safer than looking at their phone. Via CarPlay, users can access Apple or Google Maps, play Apple Music or Spotify, or dictate a text message to be sent home. All processing is done on the phone itself.

CarPlay and a competing Android program, Android Auto, are not auto operating systems. It really is phone software, said Mark Fitzgerald, an analyst at Strategy Analytics. Ultimately, it’s like using your car’s display as an external monitor for your phone.

“What’s in your car when you plug it in is essentially a client software client that just renders data from your phone to your infotainment system’s display,” said Fitzgerald.

Many users find this to be all they need.

When users have both CarPlay and an integrated system, they typically use CarPlay. 34% of CarPlay users surveyed by Strategy Analytics in 2018 said they only use CarPlay in the car and 33% said they mainly use CarPlay. Only 4% of the users surveyed state that they use the embedded system in favor of CarPlay.

Apple has also expanded CarPlay over the years to make it more valuable to iPhone owners.

When CarPlay first came out, a cable was required to connect your phone to your car. Apple has been supporting Bluetooth wireless connections since 2015, so users can start CarPlay by simply getting in the car and connecting their phone. While it took a few years for new cars to support this feature, it has now become widespread.

Last summer, Apple and BMW announced that users could use their iPhone to unlock car doors or even start the engine. Apple participates in a standard group to extend the function to other automakers.

Google has similar software called Android Auto that extends its Android operating system into the car’s dashboard. CarPlay and Android Auto are not mutually exclusive – a car that supports one usually supports the other. It’s popular as its Android app was downloaded 100 million times by 2020.

When automakers realized that smartphones’ computing power and software would improve much faster than they could improve their built-in infotainment systems, they tried to adapt them.

The Car Connectivity Consortium, to which most of the top car manufacturers and major suppliers belong, has developed Mirrorlink, an open standard for connecting smartphones to car systems. It was introduced in 2011 but was quickly superseded by Apple and Google.

Samsung, the biggest supporter of the standard and who also owns a major dashboard vendor, stopped supporting Mirrorlink in its phones last year. No other major Android brand supports this yet, and the consortium’s website only lists a few older devices as supported devices.

A big leap to self-driving cars

The new dashboard mode in CarPlay.

Mack Hogan | CNBC

Apple’s success with CarPlay explains the auto industry’s interest in rumors that Apple is planning to build its own car. If Apple has had so much success in adopting the dashboard, the company may be able to turn that into a competitive vehicle.

According to media reports, Apple has been researching at least the software for a self-driving electric vehicle since 2014. Earlier this year, Hyundai said in an official statement that there were talks with Apple about making its car before it went back, most likely due to Apple’s strict confidentiality requirements. Hyundai finally said it was no longer in talks with Apple.

Automotive executives showed outward confidence but respected the challenge an automotive Apple could pose. The CEO of Volkswagen said he was “not afraid” of Apple’s entry into the market. The BMW CEO said he “sleeps peacefully at night” in response to questions about Apple’s plans. Toyota’s CEO warned that making a smartphone is much different than making a car.

Apple’s final plans remain unclear. According to a Reuters report, Apple could still choose to sell software and hardware – an autonomous driving system – to automakers rather than designing its own vehicle.

However, if Apple were to enter the auto world, it would require a fundamentally different strategy than CarPlay.

CarPlay is mainly about making the iPhone more desirable. It also offers other benefits to Apple, such as: B. Increase the value of Apple Music subscriptions. Users want to play music in their car but need an easy way to control it while driving. In a March release, Citi analyst Jim Suva estimated that CarPlay could increase Apple’s annual service revenue by $ 2 billion.

But CarPlay itself is not a money maker. Right now, CarPlay is free in most new vehicles, from base models to luxury SUVs. BMW used to charge users a monthly fee to access CarPlay, but it was discontinued in 2019 after customers complained.

Apple says automakers don’t charge any fees for using the software. It’s not a licensing deal. (If it did, Apple could pool it at $ 750 per unit and sell 9 million units by 2025, which Suva estimates will generate $ 6.5 billion in revenue.)

Apple could get a foothold in the car to support more of its ambitions. It already uses its App Store sales platform to encourage software developers to optimize their apps for the car, in categories such as finding a car charger, ordering groceries, or finding a parking space. These features would be a key part of an Apple in-car experience. Apple also collects data necessary to run CarPlay, and even if that data is anonymized to ensure user privacy, Apple provides a lot of raw data on what people are doing in their cars.

However, CarPlay has not been able to power a self-driving car, which requires various chips and special hardware that are qualified for use in the car.

If Apple were to sell software to self-driving automakers, it would take a different form from CarPlay. Google’s automotive industry fragmentation is a good example: it is building Android Automotive as its car operating system, Android Auto as its CarPlay competitor, and funding the development of Waymo, a self-driving tech company and auto service that is now a sister company within Alphabet.

However, CarPlay’s success could lead to strong demand for an Apple Car – or at least ensure that consumers don’t dismiss the idea as crazy.

Apple usually presents updates to its CarPlay software at the annual WWDC developer conference, which begins on June 7th this year.

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World News

Hong Kong Exempts Executives From Quarantine Guidelines

Hong Kong’s borders have been sealed for more than a year and its quarantine rules — which require compulsory hotel stays of up to three weeks — are among the strictest in the world.

Corporate executives, however, are now eligible for special treatment.

The city’s Securities and Futures Commission quietly published a notice on Friday saying that fully vaccinated “senior executives” from local companies or their international affiliates could apply for an exemption to skip quarantine when they visit or return to Hong Kong. It did not issue a news release, and the notice offered no explanation for the timing or justification for the measure.

Neither the Securities and Futures Commission nor Hong Kong’s Department of Health responded to requests for comment on Saturday.

The Chinese territory reported no new cases on Friday. Though densely populated, it has managed to avoid a full lockdown and has kept its coronavirus caseload low through aggressive social distancing rules and forced quarantine in government facilities for close contacts of Covid-19 patients, among other measures. Even vaccinated travelers must quarantine in hotels for one to two weeks, depending on where they fly in from.

The quarantine exemption announced on Friday is not the first for corporate executives in Hong Kong; a similar one was issued last year for executives from local companies re-entering the territory from the Chinese mainland. But it further illustrates how coronavirus policies in Hong Kong, which has one of the biggest income inequality gaps in the world, do not apply evenly to all of its 7.5 million residents.

Officials have imposed lockdowns and mass testing after Covid-19 clusters were detected in poor neighborhoods, where many residents live in crowded tenements with faulty piping and poor ventilation. Critics have accused the government of allowing the conditions for outbreaks to fester, then imposing heavy-handed measures on a group that can least afford to bear them.

The government has also repeatedly accused the 370,000 or so migrant domestic workers who live in the city of violating social distancing restrictions, even though major outbreaks have revolved around clusters of expatriates and wealthy locals.

In early May, the government backtracked on a contentious order that would have required all migrant domestic workers to be vaccinated. But it still went ahead with a plan to subject them to a second round of compulsory coronavirus testing, despite the first round turning up just three positives among 340,000 people.

The government has said that its compulsory testing protocols are based solely on “risk assessment” and apply equally to anyone working in high-risk places, including nursing homes.

In other news around the world:

  • Malaysia reached 9,020 new coronavirus cases on Saturday, the fifth straight day of record new infections in the country, according to Reuters. On Friday, Prime Minister Muhyiddin Yassin announced that a two-week nationwide lockdown would begin in June to fight the recent surge.

  • Saudi Arabia is lifting a ban on travelers from 11 countries, the Saudi Press Agency announced on Saturday. Beginning on Sunday, visitors will be allowed entry from the United Arab Emirates, Germany, the United States, Ireland, Italy, Portugal, the United Kingdom, Sweden, Switzerland, France and Japan.

  • Kate, the Duchess of Cambridge and wife of Prince William, announced on Twitter that she received her first dose of the coronavirus vaccine at London’s Science Museum. “I’m hugely grateful to everyone who is playing a part in the rollout — thank you for everything you are doing,” she wrote. According to the government portal, more than 39 million people in the United Kingdom have received at least one dose of a Covid vaccine.

  • Taiwan reported 486 new domestic coronavirus cases on Saturday, according to Reuters. The number includes 166 cases added to the totals for recent days as an adjustment in its infection numbers following delays in reporting positive tests.