SMSD.L - Samsung Electronics Co., Ltd.

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  • Bloomberg

    Huawei Wants Stable Samsung, Hynix Chip Supply, Korea Daily Says

    (Bloomberg) -- Huawei Technologies Co. has sought high-level assurances from Samsung Electronics Co. and SK Hynix Inc. they will continue to supply memory chips despite mounting pressure from the U.S. to isolate the Chinese telecommunications company, the Korea Economic Daily reported.The Shenzhen-based company called in senior officials at the two South Korean chipmakers’ Chinese units to ensure a stable supply of the semiconductors regardless of recent U.S. government restrictions, the report said, citing unidentified industry sources. Representatives for the two Korean companies denied the report on Monday as Samsung said such meetings had not taken place, while Hynix didn’t elaborate.Huawei is one of the five biggest clients for Samsung and SK Hynix, spending around 10 trillion won ($8.1 billion) to buy DRAM and NAND flash memory chips from the Korean companies every year, the newspaper said. The report comes amid rising pressure against global suppliers after U.S. President Donald Trump barred any chipmaker using American equipment from supplying Huawei without U.S. government approval.While memory chipmakers aren’t subject to the U.S. government restrictions, Huawei worries that the Trump administration could widen its restrictions later, according to the report.As the two South Korean companies supply more than 70% of the DRAM chips globally, including them in any U.S. action would threaten the survival of the Chinese company, said the newspaper. It cited an industry official it didn’t identify as saying that Huawei is quickly building its memory-chip inventory in preparation for a worsening scenario.(Updates with Hynix and Samsung’s responses from the second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Samsung Takes Another Step in $116 Billion Plan to Take on TSMC

    (Bloomberg) -- Samsung Electronics Co. has begun building a cutting-edge chip production line intended to help it take on Taiwan Semiconductor Manufacturing Co. in the business of making silicon for external clients.South Korea’s largest company said it’s started construction on a 5-nanometer fabrication facility in Pyeongtaek, south of Seoul, dedicated to its made-to-order foundry business, an arena TSMC dominates. Based on the Extreme Ultraviolet Lithography or EUV process, Samsung expects the fab’s output to go toward applications from 5G networking to high-performance computing from the second half of 2021, it said in a statement.Samsung, the world’s largest maker of computer memory, smartphones and displays, in 2019 outlined its aim of spending $116 billion to compete with TSMC and Intel Corp. in contract chipmaking, making silicon for customers like Qualcomm Inc. or Nvidia Corp. Its announcement on Thursday coincides with the announcement of restrictions on the sale of semiconductors made with American gear to China’s Huawei Technologies Co., a constraint that threatens more than a tenth of TSMC’s business.“This will enable us to break new ground while driving robust growth for Samsung’s foundry business,” ES Jung, head of the contract chipmaking division, said in a statement.Read more: Behind Samsung’s $116 Billion Bid for Chip SupremacySamsung first unveiled its expansion blueprint in April 2019, outlining at the time its goal of hiring thousands and ramping up investment in logic chips in the years leading up to 2030. That initiative arose as sales of smartphones and consumer electronics plateaued and competition from Chinese rivals depressed margins.EUV is the latest and most advanced chipmaking method, requiring machines costing tens of millions of dollars and delivering better precision and performance in the chips it produces. TSMC and Samsung, through its spending plan, are the leaders in developing that process and expanding into 5nm and smaller manufacturing nodes.Before the arrival Covid-19, Samsung had begun collaborating with major clients on designing and manufacturing custom chips and that work was already starting to add to its revenue, a Samsung executive has said. The company’s newest fab in Pyeongtaek joins another 5nm facility in Hwaseong that will begin production in the second half of this year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • In Virus Relief, Tech-Savvy Korea Beats Paperwork-Heavy Japan
    Bloomberg

    In Virus Relief, Tech-Savvy Korea Beats Paperwork-Heavy Japan

    (Bloomberg) -- Lee Jong-chul, a 57-year-old truck driver who lives just south of Seoul, says it took little more than a minute to access his 400,000 won ($330) cash handout from the South Korean government earlier this month.For 2.8 million Korean households it didn’t take any time at all: the money was automatically wired to their bank accounts without even an application.In nearby Japan, hundreds of Tokyo residents trying to process their claims for 100,000 yen ($930) handouts had to line up for hours outside a government office in Setagaya. Many of them were queuing because there was no other way to get their passwords reset for online applications they were supposed to complete at home.Japan’s Government 10 Years Behind on Tech, Minister SaysLike many people in Japan, 41-year-old hairdresser Emiko Sato, has reached the conclusion that it’s less hassle simply to wait for the paperwork to arrive by snail mail.“It’s really dawned on me how outdated government policy and administration is in Japan,” said Sato, by phone from Saitama, north of Tokyo, where she lives as a single mother with two small children.The contrasting speed and efficiency of distributing virus relief to people in need in Japan and South Korea come despite a remarkably similar trajectory in putting together the funding for the handouts in the two Northeast Asia rivals. That difference reveals a nimbler and more tech-savvy administrative infrastructure in Korea more suited to swift action than the lengthy paper-centric approach of Japan.It took Prime Minister Shinzo Abe in Japan and President Moon Jae-in in Korea about a month each to get their extra budgets approved on the same day: April 30. During that time, both leaders buckled to the populist idea of giving handouts to everyone rather than those most in need.Japan Scrambles to Get $930 to All Who Apply as Virus SpreadsIn both countries, some local communities acted faster than the central government to dole out cash.The similarities appear to end there.In South Korea, 80% of households had received handouts as of May 19, according to a daily tally by the Ministry of the Interior and Safety. The government runs a dedicated website on the program, offering quick search links that show how much families can receive, and ways to apply -- either online, via websites or credit card apps, or in person at banks or municipal offices.“I’m really happy we’re getting this cash, because we’re all going to go bankrupt otherwise,” said Lee. The Korean trucker has worked only twice in the past month, driving his 15-ton dumpster to transport sand and stones to construction sites.South Korea’s centralized administrative capability and a national identification system are key factors behind its speedy delivery of the handouts. The identification number enables the government to access personal records, saving South Koreans from the heavy paperwork required in Japan to verify basic information such as place of residence.Smartphones are also playing a prominent role for South Korea, which has one of the fastest broadband and wireless networks in the world and is home to technology giants like Samsung Electronics Co.Each time Lee uses his credit card, his mobile app pings him an update of how much of the cash handout remains. To encourage him to spend the cash instead of saving it, the app also reminds him he has a three-month deadline to use it or lose it.Waiting GameIn Japan, people want to know when they’ll get the money in the first place.As of May 19, 72% of Japan’s municipalities had started mailing out application forms but only 19% had started to actually deposit money into bank accounts from postal claims, according to the internal affairs ministry. Around a third of local governments had started distributing handouts in response to online claims as of May 14, the ministry said.The mail-based approach is dominating largely because only 16% of Japan’s 127 million population have obtained a card and PIN code to go with their national identification number needed for online applications.Obtaining the card itself takes about a month, and if you get the PIN number wrong multiple times, you get locked out of the process and have to physically go to a government office to unlock it.Nami Kobayashi, a 39-year-old freelancer who runs a flower shop and music school in Osaka, personally told Abe how strained her budget was after the government invited her to attend a hearing with him and other cabinet ministers and 10 freelancers in March.Even she is still waiting for financial help from the government.Kobayashi tried to apply for the 100,000 yen online, but the system crashed due to heavy traffic and she is now waiting for an application form in the mail.“Nothing has come my way and I’m almost giving up. It’s like, whatever,” she said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Sony, Microsoft Strike Deal on Tiny AI Chip With Huge Potential
    Bloomberg

    Sony, Microsoft Strike Deal on Tiny AI Chip With Huge Potential

    (Bloomberg) -- Sony Corp. and Microsoft Corp. have partnered to embed artificial intelligence capabilities into the Japanese company’s latest imaging chip, a big boost for a camera product the electronics giant describes as a world-first for commercial customers.The new module’s big advantage is that it has its own processor and memory built in, which allows it to analyze video using AI tech like Microsoft’s Azure, but in a self-contained system that’s faster, simpler and more secure to operate than existing methods.The two companies are appealing to retail and logistics businesses with potential uses like optimizing warehouse and factory automation, quantifying the flow of customers through stores and making cars smarter about their drivers and environment.At a time of increasing public surveillance to help rein in the spread of the novel coronavirus, this new smart camera also has the potential to offer more privacy-conscious monitoring. And should its technology be adapted for personal devices, it even holds promise for advancing mobile photography.Read more: Sony Releases Faster Camera Sensors With Integrated AIInstead of generating actual images, Sony’s AI chip can analyze the video it sees and provide just metadata about what’s in front of it -- saying instead of showing what’s in its frame of vision. Because no data is sent to remote servers, opportunities for hackers to intercept sensitive images or video are dramatically reduced, which should help allay privacy fears.Apple Inc. has already proven the efficacy of combining AI and imaging to create more secure systems with its Face ID biometric authentication, powered by the iPhone’s custom-designed Neural Engine processor. Huawei Technologies Co. and Alphabet Inc.’s Google also have dedicated AI silicon in their smartphones to assist with image processing. These on-device chips represent what’s known as edge computing: handling complex AI and machine-learning tasks at the so-called edge of the network instead of sending data back and forth to servers.“We are aware many companies are developing AI chips and it’s not like we try to make our AI chip better than others,” said Hideki Somemiya, senior general manager of Sony’s System Solutions group. “Our focus is on how we can distribute AI computing across the system, taking cost and efficiency into consideration. Edge computing is a trend, and in that respect, ours is the edge of the edge.”Sony’s advance is to eliminate the need for transfers within the device itself. Whereas Apple and Google still use conventional image sensors that convert light particles into computer-readable image formats for their chips to read, Sony’s new part is capable of doing the analytical work without any data leaving its physical boundaries.The AI-capable sensor may also help advance augmented reality applications. The two U.S. giants, whose iOS and Android operating systems control practically the entire smartphone market, are heavily invested in AR development. Google Maps now offers the option to show 3-D directions atop a video feed of a user’s surroundings while Apple is planning new 3-D cameras on its next set of iPhones in the fall. The agenda-setters of the mobile industry are looking for ever smarter mobile cameras, spurring the demand for more sophisticated imaging gear.Read more: Google Delivers an Answer to Apple on Augmented RealitySony already enjoys a substantial lead as the world’s foremost provider of image sensors, counting Apple, Samsung Electronics Co. and every major Chinese smartphone maker among its customers along with pro camera stalwarts like Hasselblad V, Fujifilm Holdings Corp. and Nikon Corp.Its next set of customers may be automakers.The AI-powered Sony sensor is capable of recording high-resolution video and simultaneously conducting its AI analysis at up to 30 frames each second. That rapid, up-to-the-microsecond responsiveness makes it potentially suitable for in-car use such as detecting when a driver is falling asleep, Sony’s Somemiya said. Without the need for a “cloud brain” as some existing systems have, Sony’s AI sensor could hasten the adoption of smart-car technology.”This on-chip approach enables a system design to be more flexible and even optimized, given that the cost of image processing, which is one of the most compute-intensive tasks for autonomous driving, can be offloaded from an electronic control unit,” said Shinpei Kato, founder and chief technology officer of Tokyo-based Tier IV Inc., which develops self-driving software.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    TSMC Plans $12 Billion U.S. Chip Plant in Victory for Trump

    (Bloomberg) -- Taiwan Semiconductor Manufacturing Co. plans to spend $12 billion building a chip plant in Arizona, a decision designed to allay U.S. national security concerns and shift more high-tech manufacturing to America.TSMC said Friday it will start construction of its next major fabrication facility in 2021, to be completed by 2024. While the investment falls short of its previous expenditure on cutting-edge factories, it’s a shift for a company that now makes semiconductors for major names like Apple Inc. and Huawei Technologies Co. mainly from its home base of Taiwan.As the world’s largest and most advanced maker of chips for other companies, TSMC plays a crucial role in the production of devices from smartphones and laptops to servers running the internet. Its decision to situate a plant in the western state comes after White House officials had warned repeatedly about the threat inherent in having much of the world’s electronics made outside of the U.S. TSMC had negotiated the deal with the administration to create American jobs and produce sensitive components domestically for national security reasons, according to people familiar with the situation.The Asian chipmaker’s U.S. investment underscores the delicate balance it needs to strike between its huge roster of American clients and China, which views independently governed Taiwan as part of its territory. Beijing’s ambition of creating a world-class domestic semiconductor industry has unnerved Washington, which fears the country’s technological ascendancy may pose a longer-threat. Executives at TSMC, which operates plants in Nanjing and Shanghai and makes chips that go into everything from 5G networks to American fighter jets, have emphasized the company is neutral.“The scale & technology is similar to what TSMC did in China, suggesting a balance between the U.S. & China,” Sanford C. Bernstein & Co. analysts led by Mark Li wrote after the announcement. “Overall, this is probably the minimal price to stay neutral. TSMC needs both U.S. & China to maintain scale & stay competitive and this is probably the minimal cost to keep this strategy.”Read more: Huawei Warns of ‘Pandora’s Box’ If U.S. Curbs Taiwan SupplyThe envisioned facility represents a small step in global industry terms. Upon completion, it will crank out 20,000 wafers a month, versus the hundreds of thousands that TSMC’s capable of from its main home base. And it will employ 5-nanometer process technology, a current standard that will likely become a few generations old by the time output begins in a few years.The higher cost of operating in America may have been a factor ahead of the decision. A true cutting-edge fab is expensive to build: The company spent NT$500 billion ($17 billion) to build an advanced facility in the southern Taiwanese city of Tainan that will supply new iPhones this year. It plans another $16 billion in capital spending in 2020. The Arizona plant still requires approval from TSMC’s board, which may hinge on incentives.“There is a cost gap, which is hard to accept at this point. Of course, we have -- we are doing a lot of things to reduce that cost gap,” TSMC Chairman Mark Liu said on a recent analyst conference call.U.S. Won’t Tolerate Tech Fence-Sitters Any Longer: Tim CulpanIf the federal government provides cash for a U.S. plant, it’ll mark a shift in policy and rhetoric from a Republican administration. Trump’s White House has rarely supported such direct industrial intervention, favoring market dynamics. A similar government-backed effort with Foxconn -- Apple’s main iPhone assembler -- in Wisconsin has so far not created as many jobs as expected.However, emerging trends may be forcing a reconsideration. The U.S. government is already giving or lending billions of dollars to keep companies afloat in the midst of a pandemic-fueled recession. The crisis has also highlighted how vulnerable global supply chains are to such shocks.The White House may also be motivated by broader political factors. Trump has attacked international trade deals and tried to limit China’s access to semiconductor technology, seeking to contain the country’s technological ascent. TSMC said its Arizona facility will create 1,600 jobs and a deal to bring highly skilled work to Arizona may help Trump’s re-election prospects this year.“TSMC’s plan to build a $12 billion semiconductor facility in Arizona is yet another indication that President Trump’s policy agenda has led to a renaissance in American manufacturing and made the United States the most attractive place in the world to invest,” U.S. Secretary of Commerce Wilbur Ross said in a statement.By producing chips for many of the leading tech companies, TSMC has amassed the technical know-how needed to churn out the smallest, most efficient and powerful semiconductors in the highest volumes. It manufactures important components designed by Apple and most of the largest semiconductor companies, including Qualcomm Inc., Nvidia Corp., Advanced Micro Devices Inc. and China’s Huawei. Shares of Applied Materials Inc., Lam Research Corp. and KLA Corp. rose on optimism that these U.S.-based providers of chipmaking equipment may face fewer export controls when supplying TSMC.Concentrating such valuable capabilities in the hands of one company in Asia is a concern for the U.S., especially when, across the Strait of Taiwan, China is rushing to develop its own semiconductor industry.TSMC’s local rival, GlobalFoundries Inc., has given up on advanced manufacturing and Intel Corp., the world’s largest chipmaker, mainly manufactures for itself. Its attempt to become a so-called foundry for external clients has failed to gain major customers. TSMC’s only other significant challenger is South Korea’s Samsung Electronics Co., which is investing more than $116 billion in its effort to keep up with the leader.“TSMC welcomes continued strong partnership with the U.S. administration and the State of Arizona on this project,” the company said in a statement. “This project will require significant capital and technology investments from TSMC. The strong investment climate in the United States, and its talented workforce make this and future investments in the U.S. attractive to TSMC.”Read more: Foxconn Factory Subsidy Estimate Slashed by Wisconsin Agency(Updates with analyst’s comment from the fourth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Traders Are Rewriting Strategies for Post-Virus Asia Stocks
    Bloomberg

    Traders Are Rewriting Strategies for Post-Virus Asia Stocks

    (Bloomberg) -- As it becomes increasingly clear that the coronavirus pandemic will have social and economic effects that outlast personnel lockdowns, market participants are redrawing their long-term trading strategies.When it comes to Asian equities, Citigroup Inc. and Bank of Singapore are among those with recent, new recommendations. Money managers including T. Rowe Price Group Inc. are holding media briefings. Among the panoply of themes gaining traction: all things online, supply chains decoupling from China and a focus on resilient corporate balance sheets.Strategy discussions are increasing as economic activity resumes, however slowly. Workers are coming back to factories in China, cinemas and gyms are greeting customers again in Hong Kong, and the Philippines is allowing some businesses to reopen. The MSCI Asia Pacific Index dropped 0.4% on Wednesday, down for a second day, after recouping about half of virus-triggered losses.E-EverythingThe epidemic has changed the way many people work, live and even have fun. To JPMorgan Asset Management’s Mark Davids, the crisis highlights the importance of cloud technology to support work-from-home, along with online streaming and e-commerce -- all leading to more usage of memory chips and sensors.“These trends existed prior to the crisis, but the crisis just accelerated that,” the portfolio manager said in an interview last week. The firm’s Asia Growth Fund, which Davids co-manages, has beaten 97% of peers in the past five years. It counts Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. among its biggest investments. “We still think there’s plenty of upside in some of these names.”The view is echoed by many firms, including Union Bancaire Privee, which says the pandemic will boost the theme of “digital acceleration” in online learning, entertainment, gaming, shopping, and e-commerce. China’s push toward a digital economy will make 5G and cloud computing priorities for years to come, the firm said in a note May 7.Quant fund McKinley Capital Management LLC points to companies that provide online diagnostic tools -- some with AI -- and telemedicine. These will make up “the single most important investment trend in the next couple of years, perhaps the next generation,” according to Chief Executive Officer Rob Gillam. He sees health-care stocks accounting for an increasing share of a typical growth basket.Beyond ChinaThen there’s the supply-chain impact. The U.S.-China trade war had already put a focus on the theme of diversifying away from Chinese factories and suppliers, and the pandemic has only enhanced it.Companies and governments will likely seek to spread out their supply chains and bring them “closer to home,” benefiting players such as warehouse-automation companies, UBS Group AG’s global wealth-management unit said May 7.Decoupling from China isn’t just gaining popularity in Washington. Asian countries such as Japan are looking to encourage companies to move. And with China’s economic growth slowing, Citigroup sees opportunities for the region’s emerging markets.Also read: Big Asia Economies Rethink a Made-in-China World“Enter the lower-income parts of emerging Asia -- where investment, spurred by supply-chain diversification out of China, FDI incentives and liberalization and infrastructure -- could be growth catalysts,” Citigroup economists led by Johanna Chua wrote in a note May 5. Those dynamics could also be triggers for policy reforms, she and her team wrote.At BNP Paribas Asset Management, Paul Sandhu, the head of multi-assets quant solutions and client advisory for Asia Pacific , said the pandemic should force investors to reassess countries’ readiness to tackle such crises and ensure industries can continue running so that they are “properly capitalized for their own tail risk.”Building ResilienceCompanies that end up surviving the massive demand-and-supply shock wreaked by the coronavirus lockdowns may change their behavior as a result of their experience. Some could shift toward more resilience and, in effect, less risk, according to Eli Lee, head of investment strategy at Bank of Singapore.Lee expects consolidation and restructuring in sectors that will be challenged by long-term changes in consumer behavior after the crisis -- such as airlines, energy, retail malls, autos, hotels and offline leisure.“We expect companies to ensure stronger balance sheets with greater liquidity, longer-term funding and reduced leverage,” Lee wrote in a note May 5. “For many companies, this portends reduced dividend payouts, reduced buybacks and capital expenditure plans and capital raising from investors.”(Updates with Wednesday market performance in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Korean baseball's return is a bitter pill for American sports, but a win for ESPN
    Yahoo Finance

    Korean baseball's return is a bitter pill for American sports, but a win for ESPN

    While sports remain shut down in the U.S., pro baseball is starting up again in South Korea—and ESPN bought the rights to air the games.

  • Sky News

    Samsung users 'freaked' by accidental overnight alert

    Samsung has apologised after customers were left "freaked" and "scared" when an alert was sent accidentally overnight. In its reply, Samsung said the alert was "sent unintentionally during internal testing and there is no effect on your device". Samsung's Find My Mobile service helps to locate phones and tablets and protects data, it says on its website.

  • Samsung Galaxy Z Flip review: back to the folding flip phone future
    The Guardian

    Samsung Galaxy Z Flip review: back to the folding flip phone future

    Samsung Galaxy Z Flip review: back to the folding flip phone futureRevamp of 2000’s flip phone means big screen folds in half into a compact clamshell that fits in small pockets

  • Sky News

    Samsung satellite crash-lands near rural US house

    The Space Selfie device, which the company said aimed to capture images "using a unique view of planet earth as the backdrop," was found by Nancy Mumby-Welke and her husband on Saturday morning after they heard a loud crash on their property in Gratiot County, Michigan. Samsung confirmed in a statement that the device "came back down to earth," but described its descent as an "early soft landing in a selected rural area" that was "planned" because of US weather conditions. "No injuries occurred and the balloon was subsequently retrieved," Samsung said.

  • The Independent

    Samsung phones can be unlocked with any fingerprint

    Anyone's fingerprint can unlock the Samsung Galaxy S10, the company has confirmed.As with other recent phones, all of the sensitive information on the Samsung phone is protected by a fingerprint sensor, which is intended to ensure that only the owner can unlock the phone.

  • Huawei Founder Sees ‘Live or Die Moment’ From U.S. Uncertainty
    Bloomberg

    Huawei Founder Sees ‘Live or Die Moment’ From U.S. Uncertainty

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Huawei Technologies Co.’s founder Ren Zhengfei warned in an internal memo the company is at a “live or die moment” and advised underutilized employees to form “commando squads” to explore new projects. Workers who fail will have their salaries cut every few months and may lose their jobs, the billionaire said yesterday.Since May, Huawei has occupied the uncomfortable position of being both an established global technology brand and a member of the United States Entity List, which bars it from trading with American suppliers. Despite a series of 90-day reprieves, the latest of which came yesterday, the uncertainty caused by American sanctions has already cost the company a great deal. Even if Huawei is eventually brought in from the cold, the impact of this summer’s upheaval will be widespread and painful.The most immediate of Huawei’s losses is the international smartphone market. The company’s internal estimates show it expects to sell 60 million fewer phones in 2019 than it would have done without the U.S. impositions. In 2018, Huawei grew its mobile shipments by 34% to 206 million, according to IDC data, and in the first quarter of 2019 its pace accelerated to a 50% improvement while rivals Samsung Electronics Co. and Apple Inc. both saw shrinking sales. By the second quarter, partially affected by U.S. sanctions, Huawei’s growth had been slashed to 8.3%.Having successfully penetrated the European mobile market, Huawei was on a path to becoming the world’s biggest phone vendor, however the loss of Google’s Android, the brains inside its handsets, and the related Play Store app ecosystem made Huawei devices undesirable outside of China.Ren warned in his memo that redundant staff need to find a way to make themselves useful.“They either form a ‘commando squad’ to explore new projects -- in which case they could be promoted to company commander if they do well,” he wrote. “Or they can find jobs in the internal market. If they fail to find a role, their salaries will be cut every three months.”Read more: Huawei’s Founder Wants an ‘Invincible Iron Army’ to Fight U.S.The consumer division is, according to Huawei itself, its growth engine. Accounting for 45% of its revenue last year, the business that sells phones and other gadgets is instrumental to Huawei’s future health, and it’s taken a substantial reputation blow from all the allegations and sanctions levied against Huawei. That won’t be repaired anytime soon.On the same front is Huawei’s loss of software engineering time as it’s had to scramble to create a potential Android substitute. In the wake of the U.S. ban, the company switched to 24-hour days, working as many as 10,000 developers across three shifts and three offices to eliminate the need for American software and circuitry. Huawei ended up hurrying its HarmonyOS out this month, just to demonstrate it can code its own operating system, though it convinced very few people that it has anything approaching an Android alternative waiting in the wings.Less quantifiable but still significant will be the talent drain that Huawei suffers from the tarnishing of its global reputation and the overwork that’s resulted from its efforts to recover. The company has downsized its workforce in response to its new circumstances.Ren wrote that the company’s priorities are for employees to make “meritorious deeds” and for management “to promote outstanding employees as soon as possible and infuse new blood to our organization.”In explaining the fresh extension to Huawei’s reprieve from U.S. sanctions, Commerce Secretary Wilbur Ross said that some American telecoms are “dependent” on Huawei tech and need time to wean themselves off it. So while the Washington authorities are giving Huawei a little more breathing room, the company’s situation is still very much precarious, as its founder has indicated.Without the U.S. trade intervention, Huawei would be threatening Samsung for the crown of the world’s most prolific smartphone vendor and it would be capitalizing on its lead in 5G technology instead of counting the cost of lost customers. The company remains in a strong position, but the dynamism of its growth and the luster of its cutting-edge technology have both been diminished by the measures taken by the American government.To contact the reporters on this story: Vlad Savov in Tokyo at vsavov5@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Peter Elstrom, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Apple CEO warns Trump about China tariffs, Samsung competition
    Reuters

    Apple CEO warns Trump about China tariffs, Samsung competition

    Trump said Cook "made a good case" that tariffs could hurt Apple, given that Samsung's products would not be subject to those same tariffs. Tariffs on an additional $300 billion worth of Chinese goods, including consumer electronics, are scheduled to go into effect in two stages on Sept. 1 and Dec. 15.

  • Are Samsung Smartphones a Threat to Axon Body Cams?
    Motley Fool

    Are Samsung Smartphones a Threat to Axon Body Cams?

    At least one law enforcement agency is using the devices as body cameras, and more could follow.

  • Sky News

    Samsung to unveil Galaxy Note 10: What to expect

    Samsung's news "phablet" device, the Galaxy Note 10, is being launched tomorrow - but a lot has already leaked ahead of the event in New York. The company announced Wednesday's launch event earlier this year with a teaser invitation featuring a stylus ahead of a small camera, suggesting the event will be for the successor device to the Galaxy Note 9. Whether Samsung has managed to keep any details under tight wraps or whether the whole thing has been spoiled by eagle-eyed leakers is still up in the air.

  • Mandalay Digital Group (APPS) Q1 2020 Earnings Call Transcript
    Motley Fool

    Mandalay Digital Group (APPS) Q1 2020 Earnings Call Transcript

    APPS earnings call for the period ending June 30, 2019.

  • Advanced Micro Devices (AMD) Q2 2019 Earnings Call Transcript
    Motley Fool

    Advanced Micro Devices (AMD) Q2 2019 Earnings Call Transcript

    AMD earnings call for the period ending June 30, 2019.

  • Is Samsung’s Foldable Phone Returning to Haunt Apple?
    Market Realist

    Is Samsung’s Foldable Phone Returning to Haunt Apple?

    On Wednesday, Samsung (SSNLF) announced that its previously launched Galaxy Fold phone would be ready for a relaunch in September.

  • Why Did Apple Just Pay Samsung Nearly $700 Million?
    Motley Fool

    Why Did Apple Just Pay Samsung Nearly $700 Million?

    Apple needs to reimburse Samsung for unsold iPhone screens.

  • Stock Market News: Ford's China Sales Slow; Samsung Sees Big Profit Hit
    Motley Fool

    Stock Market News: Ford's China Sales Slow; Samsung Sees Big Profit Hit

    The stock market was lower on a strong jobs report.

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