Official talks on construction and operation of a new TSMC semiconductor chip manufacturing fab the in U.S. is promising but riddled with political and technical intrigue.
By John Blyler – Will the news of a new semiconductor fab on U.S. soil be a boost to the economy and technological stability or is it merely a fanciful political scheme? To answer that question, let’s start with the news that has created so much discussion in the electronics space.
Recently, the Taiwan Semiconductor Manufacturing Company (TSMC) announced its intention to build and operate an advanced 5nm semiconductor fab in the U.S. state of Arizona. TSMC, headquartered in Taiwan, is the largest chip manufacturer in the world. The company currently operates a fab in Camas, Washington and design centers in both Austin, Texas and San Jose, California. The Arizona facility would be TSMC’s second manufacturing site in the United States.
The new manufacturing plant would be supported with funds from Arizona and the U.S. government. The fab will have a 20,000 wafer-per-month capacity, create over 1,600 jobs directly and thousands more indirectly, explained the company in a press statement.
This by TSMC is welcomed in the U.S. but not without controversy. Shortly after the announcement of the new fab, the U.S. Department of Commerce announced new restrictions on TSMC’s second-largest customer, HiSilicon of China – which is fully owned by Huawei. Some industry experts feel that the two events are related to the issue of U.S. export control.
Here’s where the political side of the TSMC fab announcement begins to emerge. Huawei, already part of the US trade war with China, was recently placed under new and more stringent export control. On May 19, the Commerce Department issued new rules to more fully close off Huawei’s access to the semiconductor chips it needs to build cellphones and 5G infrastructure. This could conceivably block China’s big telecommunications company from entering the much desired global 5G mobile network space. more>
Posted in Business, CONGRESS WATCH, Economic development, Economy, Education, History, How to, Net, Science, Technology
Tagged Business improvement, Capital, Congress Watch, illusion, Internet, Manufacturing, Semi Fab, Technology
How governments can solve layer 3 network complexity
What if government agencies could monitor and analyze their IP networks to ensure peak efficiency and service continuity—all while trying to modernize the network, balance cost, performance, and resiliency? Jim Westdorp, Ciena Government Solutions’ Chief Technologist, explains how this is possible.
By Jim Westdorp – Do you know what your layer 3 network is doing?
The dynamic nature of IP networking makes it virtually impossible to know at any point in time how traffic is traversing your networks. Troubleshooting problems by issuing pings and router CLI commands, scanning log files, and manually correlating the results is imprecise and inefficient. Many government networks disable services like Internet Control Message Protocol (ICMP), which makes these inefficient tasks impossible. The results can impact service delivery, the agility of the network, and mission.
Traditional management tools have several limitations. For example, they can’t:
- Provide real-time visibility into routing paths across the network
- Provide unique alerts for Layer 3 technologies related to: state changes, pathing, performance, and the availability of the network elements to route packets
- Show and model how routing errors and changes impact service delivery
- Understand the resiliency of the network
- Correlate routing events with performance metrics of network services to assure service performance
- Compute and provision transport paths to deploy new services
- Provide unified visibility and analysis for multi-vendor, multi-layer networks
Think about all the things you’d like to be able to do with your network, and ask yourself a few questions:
- What if you could get a graphical view of all the IP flows in your network and gain deeper insights into traffic patterns, flows, and congestion?
- What if you could drill deep into specific flows to understand the detailed route and particular pieces of network equipment those flows traversed?
- What if you could troubleshoot your network using DVR-like functionality to see the exact state of the network at the time of an event, even if it was days in the past?
- What if you had automated analytics to help identify the best paths to route traffic through your network?
- What if your cyber team could utilize the same platform to be alerted to conditions indicative of external interference with a government?
Often, “what-ifs” are hypotheticals. Not in this case, with Blue Planet’s Route Optimization and Analysis (ROA). This technology has been field-proven for more than a decade with government entities that have strategic imperatives to monitor and analyze their IP Networks to ensure peak efficiency and service continuity—all while trying to modernize the network, balance cost, performance, and resiliency. more>
Posted in Broadband, Business, Communication industry, CONGRESS WATCH, EARTH WATCH, Economic development, Economy, Education, History, How to, Net, Technology
Tagged Broadband, Business improvement, Ciena, Fiber optics, Internet, Skills, Technology
The U.S. financial system could be on the cusp of calamity. This time, we might not be able to save it.
By Frank Partnoy – The reforms were well intentioned, but, as we’ll see, they haven’t kept the banks from falling back into old, bad habits. After the housing crisis, subprime CDOs naturally fell out of favor. Demand shifted to a similar—and similarly risky—instrument, one that even has a similar name: the CLO, or collateralized loan obligation. A CLO walks and talks like a CDO, but in place of loans made to home buyers are loans made to businesses—specifically, troubled businesses. CLOs bundle together so-called leveraged loans, the subprime mortgages of the corporate world. These are loans made to companies that have maxed out their borrowing and can no longer sell bonds directly to investors or qualify for a traditional bank loan. There are more than $1 trillion worth of leveraged loans currently outstanding. The majority are held in CLOs.
Despite their obvious resemblance to the villain of the last crash, CLOs have been praised by Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin for moving the risk of leveraged loans outside the banking system. Like former Fed Chair Alan Greenspan, who downplayed the risks posed by subprime mortgages, Powell and Mnuchin have downplayed any trouble CLOs could pose for banks, arguing that the risk is contained within the CLOs themselves.
Banks do not publicly report which CLOs they hold, so we can’t know precisely which leveraged loans a given institution might be exposed to. But all you have to do is look at a list of leveraged borrowers to see the potential for trouble. Among the dozens of companies Fitch added to its list of “loans of concern” in April were AMC Entertainment, Bob’s Discount Furniture, California Pizza Kitchen, the Container Store, Lands’ End, Men’s Wearhouse, and Party City. These are all companies hard hit by the sort of belt-tightening that accompanies a conventional downturn.
Under current conditions, the outlook for leveraged loans in a range of industries is truly grim. Companies such as AMC (nearly $2 billion of debt spread across 224 CLOs) and Party City ($719 million of debt in 183 CLOs) were in dire straits before social distancing. Now moviegoing and party-throwing are paused indefinitely—and may never come back to their pre-pandemic levels.
Meanwhile, loan defaults are already happening. There were more in April than ever before. Several experts told me they expect more record-breaking months this summer. It will only get worse from there. more>
Posted in Banking, Business, CONGRESS WATCH, Economic development, Economy, History, How to
Tagged Banking reform, Business improvement, Capital, CDO, CLO, collateralized debt obligation, collateralized loan obligation, Congress Watch
The economic impact of closing the racial wealth gap
The persistent racial wealth gap in the United States is a burden on black Americans as well as the overall economy. New research quantifies the impact of closing the gap and identifies key sources of this socioeconomic inequity.
By Nick Noel, Duwain Pinder, Shelley Stewart, and Jason Wright – The United States has spent the past century expanding its economic power, and it shows in American families’ wealth. Despite income stagnation outside the circle of high earners, median family wealth grew from $83,000 in 1992 to $97,000 in 2016 (in 2016 dollars).
Beyond the overall growth in top-line numbers, however, the growth in household wealth (defined as net worth—the net value of each family’s liquid and illiquid assets and debts) has not been inclusive. In wealth, black individuals, families, and communities tend to lag behind their white counterparts. Indeed, the median white family had more than ten times the wealth of the median black family in 2016. In fact, the racial wealth gap between black and white families grew from about $100,000 in 1992 to $154,000 in 2016, in part because white families gained significantly more wealth (with the median increasing by $54,000), while median wealth for black families did not grow at all in real terms over that period.
The widening racial wealth gap disadvantages black families, individuals, and communities and limits black citizens’ economic power and prospects, and the effects are cyclical. Such a gap contributes to intergenerational economic precariousness: almost 70 percent of middle-class black children are likely to fall out of the middle class as adults. Other than its obvious negative impact on human development for black individuals and communities, the racial wealth gap also constrains the US economy as a whole. It is estimated that its dampening effect on consumption and investment will cost the US economy between $1 trillion and $1.5 trillion between 2019 and 2028—4 to 6 percent of the projected GDP in 2028. more>
Posted in Business, CONGRESS WATCH, Economic development, Economy, Education, History, How to, Net
Tagged Business improvement, Capital, Jobs, McKinsey, Racial equality, Skills
By John Blyler – The U.S. Space Force is being brought to life with federal funding and contractor rockets and electronics. This might be a good time to remember the lesson’s learned from the earlier Reagon era Strategic Defense Initiative (SDI) program.
First, let’s check out what’s behind the Space Force. A few years back, President Trump floated the idea of a space force as a new branch of the military. The Pentagon was quick to remind the president that a space force already existed in the armed services, mainly under the purview of the Air Force. No matter, the White House believed a new initiative was needed especially in light of the tensions and trade war with China. Dominance in space was the rallying call.
For those of us working in the defense industry in the 1980s and 90s, this all seemed eerily reminiscent of the famous “Star Wars” program initiated by former US President Ronald Reagan during the Cold War era. Officially known as the Strategic Defense Initiative (SDI), the program focused mainly around a space-based anti-missile system aimed at protecting US from potential preemptive military strikes from the former Soviet Union.
At the time, the main components of the SDI were considered technologically impossible – i.e., anti-ballistic missiles including lasers and electromagnetic weapons. While there were some successes, the program failed to meet its loftier technical goals.
Now let’s fast forward to today. While many dangers persist in the world, it’s not clear that the most imminent threat is from space. For example, it would be far easier and less costly to launch a cyberattack against an enemy’s infrastructures, steal technology IP, rig an election process or upset financial markets than to dominate in space. Regardless, the race to create a space force has been awakened and – more importantly – funded. more>
Posted in Business, CONGRESS WATCH, Economy, Education, History, How to, Science, SPACE WATCH, Technology
Tagged Business improvement, Congress Watch, Satellite, Space, star wars, Technology