A major Chinese telecoms equipment maker is scrapping its effort to acquire a US computer company after a security panel refused to approve the deal.
Huawei Technologies Ltd’s (華為) bid to acquire 3Leaf Systems came amid concern in some countries about China’s growing economic might and political assertiveness. US critics said the deal might allow sensitive technology to be transferred to China’s military.
Huawei had said it hoped to win White House approval despite the recommendation by the Committee on Foreign Investment in the United States (CFIUS) to cancel the deal. However, in a weekend announcement, Huawei reversed course and said it would withdraw its application.
“This was a difficult decision, however we have decided to accept the recommendation of CFIUS to withdraw our application to acquire specific assets of 3Leaf,” the company said in a brief statement. “The significant impact and attention that this transaction has caused were not what we intended. Rather, our intention was to go through all the procedures to reveal the truth about Huawei.”
Huawei said it “will remain committed to long-term investment in the United States.”
Huawei is one of the biggest makers of network switching gear and reported sales of US$28 billion last year. It has struggled to gain a foothold in the US against rivals such as Cisco Systems Inc.
Huawei was founded by a former Chinese military officer, which has fueled speculation about its links to the People’s Liberation Army. The company said it is owned by its employees and has no military connection.
Companies that fail to receive CFIUS approval usually withdraw proposed deals.
In 2008, Huawei and a US partner, Bain Capital, withdrew a request for US government approval of a bid to buy 3Com. The companies said they failed to satisfy national security concerns.
Huawei said it failed to apply for approval of the US$2 million 3Leaf deal in advance because it bought the company’s technology and hired some employees, rather than acquiring the whole company. The Pentagon took the unusual step of demanding that Huawei retroactively apply for a CFIUS review.
At a US congressional hearing in Washington last week, National Intelligence Director James Clapper said the case highlighted the importance of ensuring that US industry was aware of potential security threats “when we depend on foreign concerns for key components in any of our telecommunications network.”
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”