he founded smic about 20 years ago.ars ago, when china was trying to build its own domestic technology. in the 1990's, globalization was not as controversial as it is now. he got a lot of money from the chinese government. particularly the shanghai government to be able to build out smic and begin to build semi conductors that were quite sophisticated at the time. he used these global connections to taiwan and the u.s. to recruit talent, he got a lot of support. many controversies along the way. he got sued for tsmc for allegedly stealing some of their ip. smic then ended up becoming the most successful chipmaker in china. haidi: how did they get the equipment to make advanced semi conductors? the question is, can theydo this at scale ? >> this is the big question. smic has been under various u.s. sanctions for a long time. more than 10 years ago, they were trying to buy equipment from applied materials, the big u.s. equipment maker's, to produce chips -- makers, to produce chips. they were concerned about smic's compet

smic, among those on that u.s.klist, but earlier it was revealed they were behind a cutting edge process during huawei's latest phone. bloomberg originals takes a closer look. ♪ >> this at first glance is just a smart phone. but once you know what's inside, it becomes clear it is so much more than that. >> what really changed everybody's view of this device was what was at the heart of it. the microprocessor that was designed and manufactured in china. >> it is at the center of tensions between the world's to biggest economies. the phone made by huawei represents a breakthrough by beijing as it tries to escape washington's controls on its access to technology and establish a self sufficient chip industry. if the u.s. controls had been successful, than a smart phone -- then smartphone advances such as this would not be possible without importing key components. >> china is more capable than ever of building advanced technologies. >> and that worried of u.s. of -- and that worried u.s. officials. it left them wanderi

and there was this big shipment to smic, the largest founder -- factory in china for dram equipment.e investigation is about. sonali: does it say anything about the u.s. national security crackdown when it comes to these companies? >> curbs were imposed and these companies found a way to keep selling to china. i don't think there was explicit mention of them selling something that was restricted and what china seems to be doing, especially on the foundry side, whether it is smic or ym kc is important. these are probably lagging nodes and they are getting whatever equipment they can get right now. guy: why such a big reaction in the stock? what impact could this have on the business? >> i think the headline number where china was 45% of this quarter's sale was -- it caught everyone's attention. it was surprising given the outlook they gave last year, which was this will be a heaven and china will be more like 25-30% of sales. this is higher. guy: great to catch up. always a pleasure. that is going to be a subject on bloomberg technology, coming up a little bit later. michelle gonzales

and daughter of the founder of uuai in 2020, due to alleged ties with the chinese defense complex, smicthe sanctions list. the largest semiconductor manufacturer in china and the fifth largest in the world. in october last year there were restrictions. affected supplies of semiconductors and equipment for the production of microcircuits for dozens of chinese companies and laboratories of research institutes. according to analysts, this is the most ambitious, from now on, to import technology, chinese manufacturers need a license to issue which, in most cases, the american side refuses. according to the new york times, these measures are intended to pacify the military and china's economic ambitions, in the development of chinese military programs that use supercomputers to simulate nuclear explosions, control hypersonic weapons, create advanced networks, signed a law for 50 billion dollars to develop domestic chip production. and there is also a fairly strong point of view that we need to go in the direction of the g2 format, yes, that is, such a new bipolar structure of the world, and

in 2020 , due to alleged ties with the chinese defense complex, smic, the largest, was included in thena and the fifth in the world. in october last year, restrictions affected supplies semiconductors and equipment for the production of microcircuits, for a dozen , according to analysts, these are the largest since the nineties us sanctions against china. from now on, to import technology, chinese manufacturers need a license to issue which, in most cases, the american side refuses. according to the statement. these measures should curb china's military and economic ambitions by slowing the development of chinese military programs that use supercomputers to simulate nuclear weapons. explosion, control of hypersonic weapons and creation of advanced networks to monitor the opposition. earlier, joe biden signed the chip science act, allocating more than $50 billion to develop domestic chip production. and there is also a fairly strong point of view that we need to move in the direction of peace, and in fact , the people who advocate for this claim that it has already taken place, simply d

another stock that we've been watching today is smic after its sales miss. that really highlights how u.s. curbs on chinese tech are impacting some of these chinese chipmaking related stocks. we are also watching icbc come under pressure on the back of that cyberattack as we continue to watch the fallout from that. kriti: we thank you so much for walking us through it. icbc story that is catching our eye. the world's biggest bank by assets. icbc has had its u.s. unit hit by a cyberattack, forcing it to use a messenger carrying a u.s. stick -- u.s. bc stick. edwin chan joining us from hong kong. walk us through the story here. what do we actually know? edwin: there's a lot we don't know. it is shaping up to be one of the most significant cyberattacks or ransomware attacks in recent memory. as you mentioned, there has been severe disruption through treasury trading with icbc. what usually happens in these cases is, if you are connected to the network and you hear about ransomware, you want to pull your network immediately and sanitize your system. so it seems

they want cooperation as opposed to being rivals but at the same time this also comes right after smic reported their earnings in china. week quarter in terms of chips that underscores the our tech conservatives are having on our counterparts abroad, tim. >> there's different perceptions of who's the driver of negativity if you look at the chinese press, they think the u.s. lost their way. they think the u.s. in terms of how they have been pushing the perception of china, their own perception of themselves i do think -- and i say this around almost every significant relationship we have in the world, the break we have had in diplomacy over the last ten years -- it's not just this administration, not just the trump administration, even in our cold war, our best and brightest were focused on diplomacy. we want communication. the fact that the military could be communicating somewhat, great. there could be cooperation on global narcotics trade i agree with guy, the expectation is almost zero, but if you think we're getting an agreement on regional temperance of china's influence in the so

criminal probe for shipments made to china's smic not sure what you want to trade here, dan. >> well, it is interesting seems like we're in the a different phase of earnings, right? multiple earnings seasons within this if you just looked at what we had to hear from tech stocks over the last 24 hours, it's not particularly great, geographically and different exposures and the like and tim's point about the alibaba spin that's not going to happen, some of our companies are squarely in the mix right here, and we're going to hear from nvidia next week, let's hear -- they've been tinkering a lot of those chips to get in and around the export bans and it didn't seem that was addressed in this xi/biden meeting, either, so -- i think semis in general, you know, it does not trade rich, 20 times versus a market that's 18, many of its peers are trading higher. you know, it's fine on valuation, but this headwind is going to be sticking around. it's not going away for the chipmakers some of the other ones that trade rich, i'd be careful in this environment where investors are shooting first and a

potentially skirting american export restrictions into chinese chipmaker smic that is according to ausetts and sent to a south korean subsidiary and then forwarded on to smic in a statement applied materials saying first disclosed in october of last year that it had been subpoenaed for information related to that shipment they say they're cooperating with the government. we'll be following that story. amazon dialing up the pressure on employees who aren't following the company's return to work guidance according to a post an an internal amazon site seen by cnbc, staffers not following the rules, they may not get promoted amazon currently requires employees to work from the office at least three days a week and texts between iphone and friend's android may get easier. announcing plans to adopt a messaging standard next year that will smooth the testing experience between iphones and running those google's operating system this is first reported from nine to five mac. they said the new feature will rollout this year. that will be major change and shift for apple. we'll follow that stor

smic's quarterly revenue dropped 15% to just over $1.6 billion, missing estimates.%. they had been hopes the popularity of huawei's new smartphones could help offset lost sales. the chipmaker help build huawei 's cutting edge chip, despite both firms being on a u.s. blacklist. drab posted its first ever profit unadjusted basis, a milestone for the southeast asia ride and deliver provider. earnings hit $29 million. revenue rose 61%, slowing from triple digit rates. grab has been cutting costs and focusing on profitability as it confronts intense competition. haidi: ebs group ceo says he does not see how inflation can be brought down to a target level without an economic downturn. speaking to us at the new economy forum in singapore, -- >> i don't see how we can bring back inflation at target. everybody focuses much on the big drop but the truth of the matter is inflation is well above target rates across the globe. it is a lot stickier than we think. i don't see how you can bring back inflation without creating an economic downturn. we start to see it now, clearly in

smic getting a gauge of where we are in terms of how they are doing in light of what may well come with to ban semiconductor related issues the u.s. has with china as well. haslinda: let's stay with earnings. dbs has reported third-quarter profit that beat analyst estimates propelled by strong margin growth in commercial lending. net income at his biggest lender -- at singapore's biggest lender dropped. the ceo says higher for longer and first rates will be -- longer interest rates will be a benefit in the coming year. he sees fee income momentum being sustained by wealth management in 2024. westpac will buy back $980 million of its own shares. net income rose from a year ago but missed estimates. west bank's -- westpac's ceo sees demand week but says there were glimmers of hope with cost pressures starting to ease for businesses. berkshire hathaway's cash has hit a fresh record of $157.2 billion boosted by interest rates and meaningful yields. that surpasses the previous high set two years ago. berkshire hathaway has largely parked its hoard in short-term measures. the company has stru

a 30 a 30% drop in third quarter profit smic is the biggest foundry. has been moved to a healthy level of course, this shows the impact that the u.s. export controls is having on the chinese chip d industry it makes the chip for the huawei phone. >>> andrew, what is coming up? >> we are here at lincoln center more from the 30th annual baron conference in a moment we will bring you an interview with one of baron's big investments. figs a lot of people wearing it as cool clothes e eauthaafr abo tt te thbrk. one took over our office. and he's using it to send out medical bills. good hands! hospital bill for prime?! gaaaaap! did you just say gap?! he's talking about expenses health insurance doesn't cover. good thing coach prime knows about...say it one time! aflac! because aflac gets you money to help close that gap! now how do we get this goat outta here? (whistles) aflac! meet one of my new homies! gaaaaap! get help with expenses health insurance doesn't cover at aflac.com. elephant would've been scarier. >>> welcome backback. we are here at the baron c