chips in 2021. it's just that demand grew even further, and as a result of that, we didn't have the the number of chips we needed and the cost was measured in the hundreds of billions of dollars. imagine a situation in which it wasn't a question of demand jumping ahead of supply, but supply falling by one third because that's the share of new processor chips that are produced on taiwan. the results would be catastrophic. it'd be almost impossible to buy a smartphone the next year. data center buildout would grind to a halt around half of pc processors slightly less than that, are produced by tsmc, taiwan's biggest semiconductor company. a cell phone towers are crucially, crucially reliant on chips made on taiwan. the auto industry would face delays far worse than it faced this year. and then down the chain of goods that rely on semiconductors from dishwashers to microwaves. if there's a third fewer processor, chips in the world, that is a lot of goods that won't be produced and the cost will almost

so instead of relying on chips made overseas in places like china, the supply chain for those chips wille here in america. welcome to talking business asia. i'm suranjana tewari. most semiconductors are made in asia. i'm in one of the areas of singapore where a lot of that fabrication happens, but the entire ecosystem stretches throughout the world. take this iphone, for example. it's been built around chips that were designed by apple over in the us, manufactured by companies like taiwan semiconductor manufacturing company, ortsmc, in taiwan. chips made injapan and south korea may also be in this phone. a lot of the assembly then happens in china. with the war over chips heating up, countries like india might play a bigger role in production in the future. now, in this industry, size matters. the smaller, the better. these chips have transistors — think of tiny switches — and they measure about five nanometres. a nanometre is, get this, a millionth of a millimetre. just to put that into perspective, a human hair is 50,000 to 100,000 nanometres. so we're talking 50 to 100 times smaller t

is the us chips act a real threat to china?nk the us chip act is really something that china really worries about, i think what china really worries about is the export controls. because i mean, if you look at the as chris mentioned, the tsmc arizona fab, yes, they are building what is going to be the most advanced fab in america, but when that fab kicks into mass production, the tsmc's taiwan fab already moved on to next generation. so i think tsmc will always keep its most advanced chip—making on the island. so that makes the island indispensable to the rest of the semiconductor industry. but they sort of have to work with the us to have american interest to potentially defend the island in the event of chinese aggression, military aggression, towards the island. so, i'm not sure if that chips act is really on top of chinese leaders' minds. i think in beijing's mind, they're really trying to focus on building its own semiconductor supply chain. five years down the road, i want you to tell me how small you think the chips in m

well, the us chips act is helping level the playing field.r the course of the last couple of decades, a lot of the manufacturing of silicon moved to asia because of the incentives provided by the governments here, and now us chips act is able to bridge the cost gap that exists in production in the us versus asia. so us chips act will provide the necessary grants and the investment tax credits to enable more manufacturing in the us. yeah, i'm glad you mentioned cost, because there's a reason that the supply chains move to asia in the first place, isn't there? are you confident that the us can be the dominant manufacturer? well, the supply chains for memory manufacturing will be diversified. of course, micron has a well—diversified footprint of manufacturing here in asia, and micron will continue to invest in ourfabs in asia to meet the demand needs of the future. but also in order to meet the growth in demand, we need to add new capacity. so us new manufacturing fabs that we'll be building in boise, idaho as well as near syracuse in new york,

thanks to the chips act passed by the biden administration. the country is investing billions to encourage research and development in the industry while the law just passed just last august. it's already having an impact on small players in need of a boost. d. w reporter alexander a williams, went to a research lab in charlottesville, virginia, to find out more for us. now she is a co founder of q. c. 82. it's a small start up burke from the lapse of the university of virginia and the u. s. they're developing cutting edge semiconductors, also called chips. the red box as arc fee, the laser that drive the car system and an inside this chamber. okay. environmental chamber, there is a very small chair. the cool thing is that everything here is at room temperature. and now other than the chip you don't need and is that she works with hussein's id, the c e o of q c o 2. sadie says q c, $82.00 steps may be microscopic. we can have a big impact. that's because they'll be used for quantum computers. these computers can do things like simulate the mov

that is, if the chips and science act delivers on its promise. now let's have a look at some other global business stories making us today. members of the public will now be able to blow the whistle on companies flouting antitrust law in the u. that's thanks to way hop i and set up by the european commission. the tool allows individuals to report merger breaches and other anti competitive practices. the fcc is charging the former head of mcdonalds for defrauding investors. ex fios steven easterbrook was paid more than $1000000.00 in severance, claiming he was terminated without cause. when in reality, he had been fired for having an inappropriate relationship with an employee. goldman sachs says it will cut $3200.00 jobs more than one 3rd of the cuts are likely to come into lenders cor, trading and banking units. earlier us banking piers, morgan stanley and city group also cut thousands of jobs as they expect a weaker economy this year. well, for more on this, we go out young quarter at the new york stock exchange. hi there again. now, goldman ha

and now other than the chip be, don't me. and if she works with hussein's id, the c e o of q c into sadie says q c. 82 ships may be microscopic. we can have a big impact. that's because they'll be used for quantum computers. these computers can do things like simulate the movement of atoms and molecules. this can help lower the cost and speed of manufacturing drugs, but much of the work that hussein through ye and the rest of the to city to teen does is theoretical and it can be hard for a start up that so future focused to get funding. the source intensive initially time ah, money, labor intensive in the beginning. but it also leads to much more scalable technology that has much more don chevy. but their vision may be getting more support, thanks to the chips and science act. it's a $280000000000.00 technology package designed to grow the chips and high tech industry in the united states. the thing is, they'll be asked to sign into law in august of last year. funding hasn't actually been drawn down yet, but it's still drivin

ah, ah, the global chip brace is on. we'll look at how semiconductors could become a major battle ground for rival superpowers in 2023. also on the show from goldman sachs to golden sacked, the investment bank lays off thousands as a global downturn weighs on markets will get more from wal welcome to the w business. this is christy plats and back with you from berlin. it's becoming a major battle ground among rival superpowers. the u. s. is encouraging its international partners to join a plan ban of chinese computer chips. according to media reports, us ambassador to japan, rama manuel says the u. s. is in discussions with japan, the netherlands and south korea, nations critical to the industry supply chain. in an interview with bloomberg, he said, all the parties are at the table. all the parties have a mutual shared interest in the outcome. he said the deal must be multilateral in order to work. the korean government for its part has denied its and talks with the u. s. at the stage. meanwhile, another u. s. partner an

what makes bishop chips the u. k is classic st alpha dia was 21 years old when a photographer 1st discovered him in hamburg. now he's one of the most in demand mail models in germany and across the globe, walking the runway and posing for top international fashion houses. but despite his success, the senegalese, german model says people often only see him for the color of his skin. dia wants to change that. we spoke with him about his career and about the fashion industry. elsa. dia, is germany's most successful male model. no one is in more demand than he is. the job has completely changed his life. his face adorns international magazines and ad campaigns, and he walks for the world biggest fashion houses us modern, had moved, modeling has connected me to a new world, a world that i had previously never been exposed to before. i'd only been on a plane 3 times, but now i have friends all over. that's what modeling has given me as me and nobody can take that away from me. does at me, does modern human was come? me k

they're developing cutting edge semiconductors, also called chips. the red box as og, 3 the laser there drive the car system and an inside this chamber. okay. environmental chamber, there is a very small chair. the cool thing is that everything here is at room temperature. and now other than the chip to be don't need and is that she works with hussein's id, the c e o of q c o 2. sadie says q c, 82 steps, maybe microscopic can have a big impact. that's because they'll be used for quantum computers. these computers can do things like simulate the movement of atoms and molecules. this can help lower the cost and speed of manufacturing drugs, but much of the work that hussein through ye and the rest of the to city to teen does is theoretical and it can be hard for a startup at so future focused to get funding in resource intensive initially time ah, money, labor intensive in the beginning. but it also leads to much more scalable technology that has much more longevity. but their vision may be getting more support, thanks to the chips and science act. it'

and the global chips race would south 2023. could see semiconductors provide a major pass around arrival super powers. this is due to the business on robots in berlin. welcome to the program. china reopened it. stores international travelers have been leaving and arriving in the country for the 1st time. in almost 3 years. there were long queues today course as families rushed to reunite coming up seeing one another. since before the pandemic hit, the reopening is expected to provide a major piece to airlines and the global economy. however, or i was in china still need to provide proof of a negative cobit 19 test. as the chinese travelers landing in many european countries. as a discuss this further, let's cross to asian journalist andrea bait, andreas. good. have you on the program as ever. how big a deal is this reopening of china for the global aviation sector? it's supposed to be a very big deal because the missing puzzle piece so far to get back to normality after the pandemic was really the opening up of china. and as re

so instead of relying on chips made overseas in places like china, the supply chain for those chips will are made in asia. i'm in one of the areas of singapore where a lot of that fabrication happens, but the entire ecosystem stretches throughout the world. take this iphone, for example. it's been built around chips that were designed by apple over in the us, manufactured by companies like taiwan semiconductor manufacturing company, or tsmc, in taiwan. chips made injapan and south korea may also be in this phone. a lot of the assembly then happens in china. with the war over chips heating up, countries like india might play a bigger role in production in the future. now, in this industry, size matters. the smaller, the better. these chips have transistors — think of tiny switches — and they measure about five nanometres. a nanometre is, get this, a millionth of a millimetre. just to put that into perspective, a human hair is 50,000 to 100,000 nanometres. so we're talking 50 to 100 times smaller than a strand of hair on my head. that's what enables, you know, our phone to get faster each

so you can see that it actually mentally, chips are by far the worst. that means that there's actually more suppliers of memory chips in, especially from china that are competing with some, some so, so that us why samsung results are particularly weak beyond a global demand weakening. where which of samsung businesses has been hardest hit memory chips, or in other words, the less developed or the less, you know, that the bigger nodes, the chips be easier at least to, of course, to compete with some. so this is white. d s. m c's results in my view, which are coming on the 11th of getting might be set me better than p s and c. in other words, the more you move to lower notes and, and, and of course, less competitive chips in terms of others beat it with you, the, the better you will do. so some, some next to move up the ladder, the sooner the better to avoid competition from chinese chip makers. but alicia the same time, we're seeing samsung's shares rising. we saw that today this today despite the poor earnings results. how can, how is wise is happening.

you sell the 5g modem chips to apple.le has made it very clear they want to make their own 5g modems. the word has it, scoop on the street -- the. [laughter] in chipland that they have failed so far. they sill immediate you guys. what kind of -- and i know you're in a quiet period, but are you going to be in the iphone 15? >> look, we did say during our earnings call that we expect to be in, you know, the iphone launching in 2023. beyond that we're not making any predictions. at the end of the day, we are going to continue to be the company setting the pace of innovation in 5g connectivity technology, and we're always going to be available for apple if they choose to -- liz: are you friends with tim cook? >> absolutely. liz: you talk? you say, i mean, come on, let's -- we've been together a long time. >> i'm sure they will recognize we are one of their best suppliers. i think we have, if you look at the quality of our technology in their products, and as i said, we'll be available for themthey want to continue with qualco

to make the smallest chips that's very important for all the big chip manufacturers. so china being restricted access to that will certainly slow things down. as you know, china has for many years or billions of dollars into the chip sector, trying to catch up with japan in the way. and the reality is they have failed largely. and so this is clearly going to do things slow things down. the question is on intended consequences offered by dentist clearly. so continued the trade war with china and i'm much more sophisticated way, but it's not clear what the end goal actually will be here. i comes at least will be frazier. it is japan in the netherlands that are reportedly teaming up with us here against china. do you see a bigger alliance for me? i well, i think you have a lot of countries which are broadly, you know, under the title of the west, but obviously japan and south korea falls under that broad liberal democracy. westerns of mine said as well, even though they're not technically in europe or america. yes. you have a lot of countries, we've been big trade partne

the quantum chip is just as big as a finger nail. it sits at the bottom of this nearly 2 meter long construction of cables, metal sheets, and conductors. marissa justine as responsibility is to make sure that everything is connected properly. she runs the so called device packaging t o. in order to show that quantum effects, it has to be operated if very cold, dark environment or colder than outer space. and then we have to be able to send signals from room temperature electronics all the way into the christ. i to reach the processor, interact with the quantum processor, and then the signals up to come out again. and i'm responsible for getting that processor to be in a good environment where the cubits can operate at their potential job welding the technology onto the chip requires clinical precision and building quantum computers has more challenges. since they use different laws than normal computers, they are also extremely difficult to program. how do we control their control signals that we send in? how do we make sense of the

that is, if the chips and science act delivers on its promise. well let's dig a bit deeper into the global ships, rice and speak to richard gordon, who is semiconductors and electronics laid out a consultancy. god now is great to have you on the program. richard, i semiconductors have become a major focus of competition between super bows. evans now why exactly is that though? yeah, governments around the world have realised that semiconductors are critical to the global economy and are actually becoming a national security issue. so what's going on at the moment with the industry? my strategic point of view is that the a globalized nature of the industry is kind of unraveling. and it's being rebuilt along with tech, no nationalism lines. so each, each show power block. if you like us, you can even have it took from our old china leader below the semi country industries on the market, a domestic or, or nationalized abuses. we're hearing how, you know, the u. s. is investing hundreds of billions of dollars in teary boosting its domestic semiconduc

today we produce only around 10% of the world's chips. instead of supply chain where these chips started with us, it starts with countries you can't rely on. new automobiles need 3,000 of these chips just to be made. overseas factories make these chips shut down in the pandemic, automakers had to shut down their lines too. we couldn't produce cars because we didn't have enough chips. can't let that happen again. that's why we came together to pass the bipartisan chips and science act and we're seeing the results now. [applause] just a few hours north on here, i.b.m. invested $20 billion in its facility in poughkeepsie, new york, in semiconductor design and manufacturing. quantum computing. artificial intelligence. intel is investing $20 billion building two chim factory, fabrication facilities, just outside of columbus, ohio. $100 billion with micron in syracuse. $40 billion in phoenix. our economic agenda has ignited a boom in manufacturing from semiconductors to electric vehicles to advanced batteries. we're going to power those vehicle

>> that was chip roy. >> so chip roy and the reason we're watching chip roy -- thank you, manu. appreciate it. let's talk more with our panel here. the reason we're all watching chip roy is because he is one of the 20 rebels who seems to have an opposition to voting for mccarthy based in wanting to liberalize democratize the rules of the house. it does not seem particularly personal to kevin mccarthy as much as an overall dissatisfaction with washington. some people would say i'm being generous with my interpretation but that is my view. he seems like he might be the first one that could change his mind, jamie gangle, if mccarthy makes all the changes that apparently he has already made. >> so chip roy has been more than signaling that and he put out there that he had 10 votes with him. we're now at 14 plus 1 so -- >> that one was for donald trump by matt gaetz. >> he doesn't have it. there is chaos in the chaos caucus but i want to turn to kevin mccarthy for a moment. at what point is it up to kevin mccarthy to show leadership and step aside for the sake of the party and for th

that's a look at what is going on with those chips., we've got more on what is happening with these stocks, because we have had a rally. david: and a very strong one. relatively beside tencent and alibaba, still substantial, double digits. the question is, do these names have room to run? it might be conducive to another link higher. what is it say right now on why the specific group can defy the economic downturn? >> as we can see, the intel doesn't seem to be affecting asian chip shares. they have been doing quite well this year, outperforming the overall asian markets. the main reason is that the markets are the investment community is looking ahead for a possible bottom out in the chip cycle. sales of semiconductors have been falling since the middle of last year, many analysts are expecting the sales to bottom out sometime before june this year are perhaps much earlier, around march, april, or may. history shows that the semiconductor shares typically start to rise a few months before the actual bottom out of the chip cycle. that

chip and i are good friends. absolutely agree that the new rules, the new way of doing business is good. for all the reasons that he just said -- >> he said they didn't have that deal set until they voted on friday morning. i mean, you saw -- on thursday we all thought the negotiations had ended and we had three more votes where mccarthy lost. he says no, that's not right, we didn't have this deal until friday morning. >> i believe him when he says he was trying to make that deal throughout the week, but he's one of the few. there was no reason for us to keep voting, keep voting, keep allowing these speeches that just degraded and diminished and insulted kevin mccarthy. we didn't have to keep doing that. we could have adjourned for the whole week and kept negotiating. so that's where the heartburn is. that's what i want people to know. this deal was easy. that wasn't the hard part. there's not as much disagreement as everyone thinks on how that rules package went by and what some of the new changes needed to be.

on the story line of all chip players being created equal, where do you weigh in? >> clearly, the market positioning matters for chipmakers. we were talking about the change since the beginning of the year and how exciting it was for a company like nvidia but the pc market is not as exciting. it's going through massive inventory correction and that's what we heard from intel last night. they don't expect it to bottom and one quarter, it could be the second quarter. until that happens, it's hard to see how intel can improve their topline and they have some problems on the server side which is more resilient in terms of demand. data dement -- data center demand is doing well but it's losing some shares. i think there are some company specific issues over there but they also have a pretty bad backdrop when it comes to the demand-side especially for pc chips. kriti: compare that to a d. there market cap dipped low that of market devices at amd. >> it has exposure to the same things that intel has. i think the one key metric for me next week is how the global shipments

when it came to chip manufacturing.hese rumors going to circulate in such a way? ian: we've got all kinds of rumors and speculation going on, including our own reporting, saying what are the europeans going to do? what are the japanese going to do? is this situation going to become more extreme? on the flipside side, some u.s. companies don't like the fact they are being locked out of the largest market and are lobbying against it. a lot of ebb and flow in terms of conversations in washington about how this is going to play out, whether we see easing more and increasing clampdown on china and potential consequences we will see in the marketplace. caroline: get us up to speed with china's focus more broadly and technology because we talk here of them clearly defining and wanting to double down and ensure they can take chip manufacturing. in the same breath, we are talking about jack ma who has been in exile since he spoke out against the chinese regulators and many of these billionaires have been forced to sell down thei

are you sticking with the big blue chips?do you want to take more risk -- or do you want to take more risk? ray: i am still not convinced we are going to have fed cuts in the way we are looking at. i think the fed has to hold its line and it will wait until the end to do it. if it goes well i'm looking at critical infrastructure. anything around analytics, automation, ai, cloud. take service now. he beat their numbers -- in silicon valley we talk about the role of 40 but they are operating at rule of 60. they have made a commitment to not fire anyone in 2023 so you are seeing them take off. and we are going to see what happens with salesforce. tom: smart analysis. fantastic stuff. ray wang, founder of constellation research joining us out of san francisco. adani group says the report from hindenburg research is bogus but group shares continue to come under pressure. or on that story just ahead. this is bloomberg. -- more on that story just ahead. this is bloomberg. ♪ tom: welcome back to the open. 42 minutes into the european

haidi: we are also watching the outlook for chip socks -- chip stocks.are plunging and the demand for gadgets is just not the same. it's get more from bloomberg technology editor joining us from tokyo. it's interesting to see the market reaction because you have the bloomberg asia semiconductor tour sector sitting at a five month high. what are we expecting as we get samsung numbers? >> good to be here. the samsung numbers, what samsung says about its outlook, whether it's going to be cutting output for the first time, usually samsung typically continues to spend during downturns. they are hoping they can outrun the downturn but it been so ugly. chip prices are down by double digits. it has come to a point where they lose money for every chip that they make. the more they make, the more they lose and it has been an ugly quarter. so there's a lot of expectation samsung will finally cut output and hopefully that will trigger a bit of a recovery. but everyone is looking when customers demand a bounce back. with that, no amount of output is going to help pri

that includes the passage of the chips act which wrought -- which brought more to u.s.-made chips.ll as an embargo on chinese exports. we have talked a lot about u.s. policy to restrict china's access to chipmaking equipment and the latest generation of chip technology. my question is what has china's response been? what has china's policy been to advance their own semi conductor industry? >> that's a good question. the way to think about it is think about what south korea and taiwan did. it took 30 years to get to the position we are and where samsung is the world's largest chipmaker. china has been following that path. unfortunately, the u.s. are not supporting china in the way they supported taiwan and south korea and therefore china has got to this point where they spend billions and haven't got to the point where they can do things like withstand these restrictions the americans are putting upon them. they are at a point where they are having to reevaluate how they are going to pursue this going forward and perhaps take an even longer approach to gain that independence they so

the chip act as well. don't forget the possibility that the world gets more polarized as a consequence of this. but the imf very positive. bmi is positive as well. have we got reaction to this? david: some commodity markets, the standout, which is not as the beaten services. that coming in higher than the expectations. it was the best, it close to points. the biggest beats since june. there is this thread, january is a good month, we are wrapping up a good month on a fairly weak note. we talked about samsung. there is this chip thread going to markets, whether that is a huawei story and taiwan exports are coming out today. they coming out data. rishaad: let's look under the hood. these are the sub gauges. the standout, right now, new orders, that is very good. it's up from 43.9. in expansion territory. that is the only forward guidance amongst his rearview mirror facing data ultimately. all down to the reopening story which is what we can get to now. david: let's bring in eric zhu, is here to talk us throu

i sent 3000, 300 of these chips.be in the position auto manufacturers cannot make cars because we don't make chips in america. i have made a decision i was very blunt about it causing a stir around the world not just here for the cost of everything from refrigerator to cell phone went out for the same reason. we can't let that happen again. so what we did with the chips in science law and made a d commitment the supply chain is going to begin in america not end in america. really. decades ago the united states of america invested 2% of its gdp of research and development 2% of billions of dollars of gdp we invested in research and development. student we did today? seven tenths of 1%. used rank number one of the world and research of the realm of the best universities the best lines in the l world. we stopped investing in ourselves. guess what, we now rank nine in the world from number one. no summer two intw the world are closing in on us fast chips in science act convince our friends will allow us to claim her lead

apple will ditch a broadcom chip in 2025.s because broadcom chairs to immediately drop almost 5%, before recovering some ground, and closing down about 2%. broadcom makes what is known as a combined wi-fi and bluetooth module. this is how your phone connects to wi-fi, or your car headphones, over bluetooth. apple has been designing a replacement. we just didn't know the timing. apple is fraud comes largest customer, accounting for -- is broadcom's largest customer. amounting to $7 billion. that is why you saw the big drop. sources say apple also plans to have its own cellular modem chip by late 2020 for or -- 2024 allowing it to replace apart currently made by qualcomm. it was known and speculated to replace the qualcomm part. it was supposed to do a soon as this year, but development snacks push back the timeline. that is why we didn't see such a big reaction in qualcomm. we so apple shares and the u.s. session -- in the u.s. session higher. rishaad: what is the readthrough for the broader chip industry? su: apple is a cash