The PABC’s recent Vendor Expo was a great event where we were welcomed to look at many of the companies and research teams based at the Center and get to know some of the work done in this vital field. We were also given insights into the philosophy behind the organization and introduced to some of the personalities that together differentiate it from a pure business-focused outfit.

Capturing the spirit of innovation at the juncture of research and realization is key to ensuring that research and experimentation in biotechnology become sound practice.

In some fields, the ethos of incubator organizations can fixate on the bottom line, better to realize returns for investors. But in biotech, it’s long-term research that yields outcomes that are for the good of humankind. Those goals are not at odds with a commercial mindset; the difference at PABC is in the commitment necessary to create a collaborative research environment and the provision of secondary support over several years, if necessary.

The Center was created by the Hepatitis B Foundation (hepb.org) with the remit of creating a confluence of academic research and nascent practice in the life sciences. PABC is also extending its education and development activities with its new Academic Innovation Zone (AIZ) – we were able to explore some of the participants’ work in person at the Vendor Expo.

As well as acting as an incubator for nascent companies, the PABC is known in the state for its work with high-school students. The Center’s AP Chemistry program , which is a collaboration with the local Central Busks School District, offers exceptional young people extracurricular learning opportunities. Plus, it organizes summer break science education programs.

Source: PABC

The first round of awards for the $5 million AIZ program came in the Fall of 2024. Those selected are given free use of facilities and funding, plus mentoring and advice. They also become part of the PABC’s collaborative environment, where cutting-edge work in the biotechnology field takes place.

The Academic Innovation Zone employs two talent scouts, themselves skilled biotechnologists, who assess applicants and proactively research the most interesting academic programs for potential. This process is ongoing to ensure the enthusiasm and inquisitive nature of young companies continue to keep the spirit of the PABC alive.

Three companies from the first wave of the AIZ are already reaching clinical trial stages, using some of the funds granted to them to transition from startup status to viable businesses in the sector. However, although always welcome, funds are only part of the AIZ story.

Biotechnology and life science companies have naturally, over the course of several years, been emerging from and relocating to the pharma belt between North Jersey and Philadelphia. As you might expect, many ties and joint projects emanate from major local universities, with early-stage biotech companies emerging from post-graduate programs.

Lou Kassa, President, PABC

By concentrating on the transitional period between graduate academic research and commercial viability, the PABC provides a continuous didactic journey for talented individuals and groups from the area. It’s a journey that can begin in high school and culminate in a fully-fledged, successful biotechnology company.

While there is access to venture capital and funding opportunities available through PABC, what drives the Center’s ethos was formulated by the nature of its founding bodies: the non-profit Hepatitis B Foundation and research organization, the Baruch S. Blumberg Institute. There’s an appreciation that work in the life sciences requires a long-term commitment to research. Exploration and experimentation are considered integral parts of the Center’s activities, and the facilities and long-term support on offer reflect that.

The recent success stories from the Pennsylvania Biotechnology Center’s Academic Innovation Zone include Serna Bio, a company investigating small molecule drug use in RNA-targeted therapies at a time when big pharma is moving away from phenotypic screening-based drug discovery. RNA is a space 35 times larger than what’s being targeted by classical drug discovery, so Serna’s journey is just beginning.

The CEO of Greene Street Pharma, Frank C. Jones, took time out from his work to show us around the company’s lab and facilities. Frank also dedicates time to teaching at the Center, where his infectious enthusiasm and charm help advance the knowledge of the next generation of biotechnologists. Greene Street’s transdermal delivery systems (about to enter human clinical trials) match the effectiveness of oral treatment delivery and will remove gastrointestinal complications for many patients.

Evrys Bio’s remit is close to the PABC founding organization’s heart, The Hepatitis Foundation. It’s concentrating on sirtuin-targeted antivirals that could help cure both B and C variants, while Aprea Therapeutics’ work looks to repair damage to the DNA of healthy cells to prevent their death or mutation – with use cases in long-term cancer treatment, among many others.

If you’re at all interested in life sciences, biotech, and medtech in general, the Pennsylvania Biotechnology Center isn’t just another incubator. As a center for excellence, it seems to have captured the elusive drive of curiosity in academic research and created a space in which it’s nurtured in the right way.

The post Harnessing humans’ inquisitive nature for humanitarian Life Sciences appeared first on Tech Wire Asia.

Semiconductor Manufacturing International Corporation (SMIC) is China’s premier advanced semiconductor foundry. Despite facing tumultuous trade winds that have buffeted the Chinese chip industry in recent years, SMIC has remained undeterred. Confronted with crippling sanctions aimed at stifling its capabilities by limiting access to crucial tools and expertise, it has responded with a display of resilience. 

Investing substantially in homegrown innovation, SMIC has showcased its capacity to thrive independently. So much so that experts have begun to acknowledge the limitations of US sanctions in crippling the Chinese chip giant, and it is evident that SMIC’s trajectory remains unwaveringly upward. In a recent DigiTimes article, Robert Castellano, president of The Information Network, highlighted the pivotal roles played by SMIC and Huawei in Beijing’s response to US sanctions, citing them as significant beneficiaries of local semiconductor industry subsidy policies. 

Castellano emphasized that both companies have emerged as crucial participants in China’s efforts to counteract the impact of sanctions, underscoring their strategic significance in the nation’s semiconductor landscape. “Projects, such as the expansion of Huawei’s Shanghai Qingpu R&D base and SMIC’s 12-inch wafer fab, have been listed as key investment projects,” DigiTimes noted.

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In the face of formidable US trade sanctions and technology export restrictions, the Chinese semiconductor foundry has not only weathered the storm with minimal revenue impact but is also boldly expanding its 12-inch wafer production lines. Moreover, the proportion of revenue from SMIC’s 12-inch wafer production has increased from 64.4% in the fourth quarter of 2022 to 74.2% in the same period of 2023, an increase of nearly 10%.

For context, in the final quarter of 2023, SMIC International witnessed a notable surge in revenue, soaring by over 3.5% to surpass the US$1.678 billion mark, marking the sole quarter of revenue growth throughout the previous year. However, despite surpassing revenue projections, a substantial decline in gross margin resulted in a steep decline of net profit by 54.7%, plummeting to approximately US$175 million. 

A Kirin chip in the new Huawei Mate 60 Pro smartphone demonstrates China’s semiconductor industry progress. (Photo by Rebecca BAILEY/AFP).

Regarding the drop in net profit, SMIC attributed it to several factors, such as the industry downturn, low market demand, high industry inventory, and intense competition among competitors. These factors led to lower capacity usage and fewer wafer shipments for the company. Moreover, SMIC invested heavily during the reporting period, resulting in higher depreciation expenses than the previous year. 

As a result, SMIC predicts a 2% increase in revenue for the first quarter of 2024 compared to the previous quarter, totaling around US$1.71 billion. This surpasses the market’s anticipated revenue of US$1.67 billion, indicating that the US sanctions have not significantly affected the company’s revenue, according to the article by DigiTimes.

The US is not stopping SMIC & Huawei

Last year, SMIC gained international attention when analysts revealed the company’s involvement in helping Huawei to develop highly advanced domestically produced chips in China. SMIC’s swift capacity expansion has also attracted considerable notice. In 2023, the company’s capital expenditure reached US$7.47 billion, marking a 17.6% increase from 2022. 

However, SMIC recently announced that it anticipates capital expenditure to remain relatively unchanged compared to last year. Yet, SMIC is advancing steadily in developing advanced 7nm and 5nm nodes, which Huawei has selected for its mobile processors and AI-centric Ascend series. Progress on both nodes remains smooth, promising enhanced performance for Huawei’s Kirin mobile chips and Ascend GPUs.

There are indications that SMIC’s 5nm chips could be ready for deployment this year, further closing the gap between China’s semiconductor industry and Western fabs. While SMIC is also eyeing advancements in 3nm technology, it’s likely at least a year away from fruition, if not longer, according to various reports.

The post SMIC defying US sanctions with 5nm innovation and Huawei alliance appeared first on Tech Wire Asia.

When it comes to the landscape of semiconductor production, the US has found itself in a peculiar position: absent from the forefront of leading-edge chip manufacturing. This absence, glaring in recent years, reflects a complex interplay of factors ranging from outsourcing to regulatory hurdles. However, as the global pandemic tightened its grip on supply chains, the US embarked on a concerted effort to revitalize its semiconductor industry. 

Now, amid renewed urgency and a strategic vision, the nation has taken a reasonably ambitious stance to reclaim its status as a formidable player in chip manufacturing. “Our investments in leading-edge logic chip manufacturing will put this country on track to produce roughly 20% of the world’s leading-edge logic chips by the end of the decade,” Commerce Secretary Gina Raimondo said during a speech at the Center for Strategic and International Studies (CSIS) on February 26, 2024.

“That’s a big deal,” Raimondo added. “Why is that a big deal? Because folks, today we’re at zero.” Her speech came a year following the initiation of funding applications under the 2022 CHIPS and Science Act by the US Department of Commerce. With a staggering US$39 billion earmarked for manufacturing incentives, the stage has been set for a transformative journey in the semiconductor landscape. 

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Raimondo’s ambitious vision, unveiled concurrently, delineates the path ahead. By 2030, the US aims to spearhead the design and manufacture of cutting-edge chips, establishing dedicated fabrication plant clusters to realize this audacious objective. She outlined how, besides everything else, there’s been a significant shift in the need for advanced semiconductor chips due to AI. 

(FILES) US Commerce Secretary Gina Raimondo testifies during the Senate Commerce, Science, and Transportation hearing. (Photo by SAUL LOEB/AFP).

“When we started this, generative AI wasn’t even part of our vocabulary. Now, it’s everywhere. Training a single large language model takes tens of thousands of leading-edge semiconductor chips. The truth is that AI will be the defining technology of our generation. You can’t lead in AI if you don’t lead in making leading-edge chips. And so our work in implementing the CHIPS Act became much more important,” Raimondo emphasized.

The US meeting its goal will create “hundreds of thousands of good-paying jobs,” Raimondo said Monday. “The truth of it is the US does lead, right? We do lead. We lead in the design of chips and the development of large AI language models. But we don’t manufacture or package any leading-edge chips that we need to fuel AI and our innovation ecosystem, including chips necessary for national defense. We don’t make it in America, and the brutal fact is the US cannot lead the world as a technology and innovation leader on such a shaky foundation,” she iterated.

Why is there a gap between US and chip manufacturing?

The US grappled with a significant gap in chip manufacturing for several reasons. Firstly, many semiconductor companies outsourced their manufacturing operations overseas to cut costs, leading to a decline in domestic chip production capacity. Secondly, as semiconductor technology advanced, the complexity and cost of building cutting-edge fabrication facilities increased, discouraging investment in new fabs. 

Additionally, global competitors like Taiwan, South Korea, and China expanded their semiconductor industries rapidly, intensifying competition. Furthermore, while other countries provided substantial government support to their semiconductor industries, the US fell behind. Then, there were regulatory hurdles, and environmental regulations make building and operating semiconductor fabs in the US challenging and costly. 

A combination of outsourcing, technological challenges, global competition, lack of government support, and regulatory issues contributed to the US’s gap in chip manufacturing, with none of the world’s leading-edge chips being produced domestically.

And then the world woke up one day in deperate need of leading-edge semiconductors to fuel the next industrial revolution, and the US realized its mistake.

“We need to make these chips in America. We need more talent development in America. We need more research and development in America and just a lot more manufacturing at scale,” Raimondo said in her speech at CSIS.

2030 vision: prioritizing future-ready projects

US President Joe Biden greets attendees after delivering remarks on his economic plan at TSMC chip manufacturing facility. (Photo by Brendan SMIALOWSKI/AFP).

Raimondo declared that the US will first prioritize projects that will be operational by the end of this decade. “I want to be clear: there are many worthy proposals that we’ve received with plans to come online after 2030, and we’re saying no, for now, to those projects because we want to maximize our impact in this decade,” she clarified.

The US will give priority to “excellent projects that could come online this year” instead of granting incentives to projects that will come online in 10 or 12 years from now. She also referred back to the goal mentioned last year – when the US is all said and done with this CHIPS initiative – to have at least two new large-scale clusters of leading-edge logic fabs, each of those clusters employing thousands of workers. 

“I’m pleased to tell you today we expect to exceed that target,” she claimed. So far, the Commerce Department has awarded grants to three companies in the chip industry as part of the CHIPS Act: BAE Systems, Microchip Technology, and, most recently, a significant US$1.5 billion grant to GlobalFoundries. Additional funding is anticipated for Taiwan Semiconductor Manufacturing Co. and Samsung Electronics as they establish new facilities within the US.

Raimondo also highlighted her nation’s commitment to supporting the production of older-generation chips, referred to as mature-node or legacy chips. “We’re not losing sight of the importance of current generation and mature node chips, which you all know are essential for cars, medical devices, defense systems, and critical infrastructure.”

Yet the lion’s share of investments, totaling US$28 billion out of US$39 billion, is earmarked for leading-edge chips. Raimondo emphasized that this program aims for targeted investments rather than scattering funds widely. She disclosed that the Department has received over US$70 billion in requests from leading-edge companies alone.

For now, anticipation is high for the Commerce Department’s new round of grant announcements, scheduled to coincide with President Joe Biden’s State of the Union address on March 7. Among the expected recipients is TSMC, which is establishing new Arizona facilities.

Two months ago, the rhetoric was centered on China. Today, it’s firmly USA-first.

The post Zero to 20%: US aims for chip domination by 2030 appeared first on Tech Wire Asia.

In an era where digital privacy is paramount, Apple is integrating PQ3 into iMessage. This announcement marks a watershed moment in messaging security, propelling iMessage to unprecedented heights of protection. As the first widely deployed messaging app to achieve Level 3 security, what does the announcement mean for iPhone users, and why should they care?

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At the heart of Apple’s PQ3 integration lies a revolutionary cryptographic protocol designed to withstand the challenges posed by quantum computing. Unlike traditional encryption methods, which may be vulnerable to future quantum attacks, PQ3 provides robust protection against even the most sophisticated adversaries. Using advanced cryptographic techniques, PQ3 ensures that iMessage conversations remain secure and private, regardless of the evolving threat landscape.

“To our knowledge, PQ3 has the strongest security properties of any at-scale messaging protocol in the world,” Apple’s Security Engineering and Architecture (SEAR) team stated in a blog post a week ago.

The new state of the art in quantum-secure messaging at scale. Source: Apple.

A quantum leap in messaging security

Traditionally, messaging platforms rely on classical public key cryptography like RSA, elliptic curve signatures, and Diffie-Hellman key exchange for secure end-to-end encryption. These algorithms are based on complex mathematical problems deemed computationally intensive for conventional computers, even with Moore’s law in play. However, the advent of quantum computing poses a new challenge.

A powerful enough quantum computer could solve these mathematical problems in novel ways, potentially jeopardizing the security of end-to-end encrypted communications. While quantum computers capable of decryption aren’t yet available, well-funded attackers can prepare by exploiting cheaper data storage. They accumulate encrypted data now, planning to decrypt it later with future quantum technology—a tactic termed “harvest now, decrypt later.”

When iMessage launched in 2011, it became the first widely available messaging app with default end-to-end encryption. Over the years, Apple has continually enhanced its security features. In 2019, the iPhone maker bolstered its cryptographic protocol by transitioning from RSA to elliptic curve cryptography (ECC) and safeguarding encryption keys within the secure enclave, increasing protection against sophisticated attacks. 

“Additionally, we implemented a periodic rekey mechanism for cryptographic self-healing in case of key compromise. These advancements underwent rigorous formal verification, ensuring the robustness of our security measures,” the blog post reads. The cryptographic community has been developing post-quantum cryptography (PQC) to address the threat of future quantum computers. These new public key algorithms can run on today’s classical computers without requiring quantum technology. 

Designing PQ3

Designing PQ3 involved rebuilding the iMessage cryptographic protocol to enhance end-to-end encryption, meeting specific goals:

1. Post-quantum cryptography: PQ3 protects all communication from current and future adversaries by introducing post-quantum cryptography from the start of a conversation.
2. Mitigating key compromises: It limits the impact of critical compromises by restricting the decryption of past and future messages with a single compromised key.
3. Hybrid design: PQ3 combines new post-quantum algorithms with current elliptic curve algorithms, ensuring increased security without compromising protocol safety.
4. Amortized message size: To minimize additional overhead, PQ3 spreads message size evenly, avoiding excessive burdens from added security.
5. Formal verification: PQ3 undergoes standard verification methods to ensure robust security assurances.

According to Apple, PQ3 introduces a new post-quantum encryption key during iMessage registration, using Kyber post-quantum public keys. These keys facilitate the initial critical establishment, enabling sender devices to generate post-quantum encryption keys for the first message, even if the receiver is offline.

Furthermore, PQ3 implements a periodic post-quantum rekeying mechanism within conversations to self-heal from crucial compromise and protect future messages. This mechanism creates fresh message encryption keys, preventing adversaries from computing them from past keys.

The protocol utilizes a hybrid design, combining elliptic curve cryptography with post-quantum encryption during initial critical establishment and rekeying. Rekeying involves transmitting fresh public key material in line with encrypted messages, with the frequency of rekeying balanced to preserve user experience and server infrastructure capacity.

PQ3 continues to rely on classical cryptographic algorithms for sender authentication and essential verification to thwart potential quantum computer attacks. These attacks require contemporaneous access to a quantum computer and cannot be performed retroactively. But Apple noted that future assessments will evaluate the need for post-quantum authentication as quantum computing threats evolve.

A man uses an Apple iPhone in Beijing on September 12, 2023. (Photo by Pedro PARDO/AFP).

Why PQ3 on iMessage matters for iPhone Users

Integrating PQ3 into iMessage signifies a huge leap forward in privacy and security for iPhone users. With the exponential growth of data and the looming specter of quantum computing, traditional encryption methods face unprecedented challenges. PQ3 mitigates these risks by providing quantum-resistant protection, ensuring that your conversations remain shielded from future threats. 

PQ3’s implementation in iMessage demonstrates Apple’s interest in safeguarding user privacy and staying ahead of emerging security threats. Beyond its robust encryption capabilities, PQ3 introduces a host of additional security features designed to enhance the overall integrity of iMessage. These include secure fundamental establishment mechanisms, cryptographic self-healing protocols, and real-time threat detection capabilities. 

By incorporating these advanced security measures, Apple hopes to ensure that iMessage remains a bastion of privacy in an increasingly interconnected world.

When can iPhone users expect the update?

Support for PQ3 will begin with the public releases of iOS 17.4, iPadOS 17.4, macOS 14.4, and watchOS 10.4. Already available in developer previews and beta releases, PQ3 will automatically elevate the security of iMessage conversations between devices that support the protocol. As Apple gains operational experience with PQ3 globally, it will gradually replace the existing protocol within all sustained conversations throughout the year.

The post Apple adds PQ3 protocol into iMessage appeared first on Tech Wire Asia.

Once a dominant semiconductor force, Intel has faced significant challenges from rising competitors in recent decades. But, fueled by a strategic overhaul and innovative technologies in recent years, the Silicon Valley behemoth is primed for a resurgence. In 2021, Intel initiated its comeback with an extensive technology roadmap, culminating this week in the launch of its contract chip manufacturing business. Branded as the “world’s first systems foundry” for the AI era, the move signals Intel’s intention to challenge Asian rivals like TSMC and Samsung for industry supremacy.

In a strategic pivot unveiled on February 21, Intel rebranded its contract chip-making venture from Intel Foundry Services to the sleeker, more succinct title of Intel Foundry. This renaming marks a significant step in CEO Pat Gelsinger’s plan, announced in early 2021, to revitalize Intel’s manufacturing sector and establish a formidable presence in the chipmaking ecosystem. Embracing Gelsinger’s ambitious IDM 2.0 strategy, Intel Foundry represents an evolution of the company’s integrated device manufacturing model. 

Pat Gelsinger, Intel CEO, introduces Intel Foundry during the Intel Foundry Direct Connect event on Wednesday, Feb. 21, 2024, in San Jose, California. (Credit: Intel Corporation).

This initiative involves substantial investments in manufacturing capabilities, alongside a renewed focus on contract chip manufacturing and strategic collaborations with external foundries. With Intel Foundry at its core, Gelsinger’s comeback blueprint aims to fortify Intel’s product lineup and position the company as a leading provider of cutting-edge semiconductor solutions for a diverse range of partners and clients.

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“AI is profoundly transforming the world and how we think about technology and the silicon that powers it,” said Gelsinger. “This is creating an unprecedented opportunity for the world’s most innovative chip designers and Intel Foundry, the world’s first systems foundry for the AI era. Together, we can create new markets and revolutionize how the world uses technology to improve people’s lives.”

The company emphasized customer support and ecosystem partnerships. Synopsys, Cadence, Siemens, and Ansys are ready to expedite chip designs for Intel Foundry customers using validated tools, design flows, and IP portfolios for Intel’s advanced packaging and 18A process technologies.

Intel Foundry roadmap extends past 5N4Y

Foundry process roadmap graphic. Source: Intel

At this week’s event, Intel, for the first time since 2021, provided an update to its process roadmap. Intel confirmed that its ambitious plan to introduce five nodes within four years, known as 5N4Y, is progressing as planned. In fact, Intel anticipates reclaiming its position as a process leader from TSMC with Intel 18A by 2025. Intel also reaffirmed its mission to dethrone Samsung and claim the title of the world’s second-largest foundry by 2030. 

An Intel factory employee holds a wafer with 3D stacked Foveros technology at an Intel fab in Hillsboro, Oregon. (Credit: Intel Corporation).

Beyond that, Intel revealed plans for enhanced versions of Intel 3, Intel 18, and Intel 14A, each fine-tuned to elevate performance, introduce innovative features, or incorporate the groundbreaking Foveros Direct 3-D stacking technology for cutting-edge chip designs. Furthermore, Intel hinted at extending the capabilities of Intel 3 with the introduction of Intel 3-T, where the “T” signifies the integration of Foveros Direct technology, connecting chips through a pioneering method known as through-silicon vias. 

The company then announced the forthcoming Intel 14A, slated for commercialization in late 2026, and teased a revolutionary leap in lithography technology with High NA EUV. The roadmap promises a future brimming with innovation and transformative possibilities for Intel and the semiconductor industry.

After all, each successive node heralds a surge in performance-per-watt, reflecting Intel’s pursuit of innovation propels it closer to its lofty aspirations.

Also highlighted are mature process nodes, including new 12 nanometer nodes expected through the joint development with UMC announced last month. These evolutions are designed to enable customers to develop and deliver products tailored to their specific needs. Intel Foundry plans a new node every two years and node evolutions along the way, giving customers a path to evolve their offerings on Intel’s leading process technology continuously. 

“Intel also announced the addition of Intel Foundry FCBGA 2D+ to its comprehensive suite of ASAT offerings, which already include FCBGA 2D, EMIB, Foveros, and Foveros Direct,” the company added. To date, Intel has rolled out products on the first two nodes of Gelsinger’s plan—Intel 7 and Intel 4—and now, the company is gearing up for the next stage with Intel 3 ready for high-volume manufacturing.

 The first product on Intel 3 will be a new generation of Xeon server CPUs, codenamed Sierra Forest, focusing on high-core density, slated for release in the first half of this year. 

Intel scored Microsoft

Intel claims that customers are backing Intel’s long-term systems foundry strategy. Intel Foundry has secured design wins across various process generations, including Intel 18A, Intel 16, and Intel 3, with substantial customer volume on Intel Foundry’s advanced packaging capabilities. 

Microsoft’s Satya Nadella announced during Gelsinger’s keynote that they’ve selected a chip design for Intel 18A production. “We are in the midst of a fascinating platform shift that will fundamentally transform productivity for every individual organization and the entire industry,” Nadella said. 

“To achieve this vision, we need a reliable supply of the most advanced, high-performance, and high-quality semiconductors. That’s why we are so excited to work with Intel Foundry and why we have chosen a chip design that we plan to produce on the Intel 18A process,” he added.

Intel Foundry anticipates a lifetime deal value exceeding US$15 billion across wafers and advanced packaging.

The post Intel Foundry: racing for chip supremacy with 18A tech and Microsoft onboard appeared first on Tech Wire Asia.

In the bustling landscape of logistics in Southeast Asia, Teleport is a potential game-changer, striving as it is to achieve 24-hour or next-day delivery at a lower cost. As the logistical arm of Capital A Bhd, Teleport wants to challenge the status quo of the industry.

But amid the region’s rapid economic expansion and escalating consumer demands, the critical question looms: can Teleport truly revolutionize the delivery landscape of Southeast Asia? 

Teleport’s growth has been impressive. The company has rapidly expanded its presence across key markets in Southeast Asia, including Malaysia, Thailand, Indonesia, Philippines, India, Singapore, and China. This strategic expansion has allowed Teleport to tap into the region’s burgeoning e-commerce market, catering to the growing demand for seamless and efficient delivery services.

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In a recent interview with Tech Wire Asia, Pete Chareonwongsak, the CEO of Teleport, shared insights into how the company is employing innovation to tackle future challenges in Southeast Asia.

How do you view the logistics industry in Southeast Asia amid rising demand for faster, cheaper deliveries?

CEO Pete Chareonwongsak. Source: Teleport

I think we do not have enough homegrown Southeast Asian logistics companies. When someone says Southeast Asia logistics, the names that typically come to mind are J&T and Ninja Van. The former initially started in Indonesia and is funded by the Chinese, so it’sexpanded to where 90% of its business now comes from China, not Southeast Asia. So it’s never really been born and bred here.

The same is true with Ninja Van, which started in Singapore and expanded to all the Southeast Asian countries. That’s the closest, but it’s funded by global venture capital.

That is why I’ve always felt we, Teleport, have an opportunity as we were born and raised here in Southeast Asia. Our DNA, infrastructure, and everything in between is here; we will not leave this part of the world. 

So my understanding of Southeast Asia logistics is that many great companies come and go: their focus starts here but eventually moves elsewhere. Our mission has been to connect Southeast Asia better than anyone else, especially in performing next-day delivery.

Has Teleport proven its viability in its current market, or does it still have much to prove to establish a more substantial presence?

There’s a lot more. Based on statistics, we could reach about five million SMEs of a specific size in the region and give them access to our services. Everyone always talks about the SME opportunities in Southeast Asia, only to eventually realize that the money’s not there. But the opportunity is there. If you’re here long term, then at some point, you have to do something that allows collaborations to happen. 

So, there are still opportunities in the long term. We currently serve at most 10,000 clients, but five million SMES are within the region. That means we have a long way to go in making it accessible.

Why do logistics companies frequently expand beyond Southeast Asia? What do they look for elsewhere that they need help finding here, especially given the region’s abundance of SMEs and MSMEs?

What is missing is the total addressable market. That’s why they go elsewhere because, undeniably, there are many larger markets that exist elsewhere today. So, at some point, when they’re funded a certain way or aim to grow a certain way, they need to go and find a large market to justify their reach and growth. That makes it hard for Southeast Asia-focused companies to stay here. There’s always something else, somewhere else. 

We have an understanding of the region that some other companies lack, and our dedication and focus is here, today and tomorrow. So that’s what we see that they don’t see, perhaps making sense of their move to look elsewhere for markets. But if no one builds like we are doing, connecting Southeast Asia in a cheaper, faster, and better way, then SMEs will never have a real opportunity to grow. 

Many of the Southeast Asian brands, e-commerce, and even supply chain operators never really have something that changes their capacity to grow. They have to flow with the market,  still to this day. So we’ve got to find some angle to serve them, and that’s really where Teleport’s focus is.

Which is Teleport’s biggest addressable market at the moment?

It is China into Southeast Asia. The region is the triangle between Kuala Lumpur, Singapore, and Bangkok. The cross-border opportunities between these three countries, in particular, are mature.

Next-day delivery at a significantly reduced cost is a bold proposition. How is Teleport working towards this goal?

If you look at the top three reasons why somebody would be willing to use Teleport, the first is price, the second is reliability, and the third is speed. You have to hit all three, and that is very hard. But that’s what we’re trying to do. How do we bring the actual cost down? Then, once we’ve brought the cost down, how do we make money? People need to understand what it costs us to enable next-day deliveries.

Our view on life now is pretty simple: how do we get the cost down? And the way to do that is to not start the business model by buying a lot of stuff. So our first question was how do we build the business model we want without owning anything initially? The most important thing about next-day delivery is sending things between two borders. How do we do that in a next-day fashion? It’s got to go on a plane. 

So, how do we put stuff on a plane? There are only two ways. One is you buy some aircraft, and FedEx, DHL, and UPS have bought hundreds of planes. So they’ve signed up for that visibility, and if we want to do that, we would have to compete against them over time with a better cost solution. 

But what are other ways to put stuff on planes? Well, you and I fly everywhere, and every time a plane flies, a little bit of space is left over. That’s called the belly. How do we get access to that space across Southeast Asia? We need partnerships, and that’s where AirAsia came in. That’s how we built the business, off AirAsia’s belly. We wouldn’t be here without it, because it gave us the most extensive Southeast Asian network.

With those spaces overnight, we then had to figure out how to build a business model on that space, which is very cost-effective. Because passengers have paid for the seats and baggage allowances, we need to figure out how to bolt that little bit of space onto the rest of the business model, which is end-to-end delivery. Essentially, that was how we built the business. So it becomes much easier when you don’t own the thing. 

The second thing is figuring out how to partner so you can gain access to the asset you need. The third is then how you tie it all together and do it.

Does Teleport have specific growth goals for its portfolio regarding the number of businesses?

We set a 24-month goal. Around two million e-commerce parcels a day are coming into Southeast Asia, and we want to capture most of that. For perspective, two million a day would be on par with our esteemed competitors. The amount is undoubtedly huge on a global scale, but we are looking towards that direction.

What role can technology play in facilitating the transformation of the logistics industry to meet the demands of faster and more affordable deliveries?

My view on addressing that this year is to slow down the growth slightly, which is shocking to most people. But if we don’t build these foundations with the right technologies, we won’t reach the two-year goal of two million deliveries, for example. So this is the year where we figure out the value of Gen AI or any AI solutions to our operations.

Source: Teleport

How many airplanes are in the fleet you use?

Airasia has 204 passenger aircraft, which will all be fully re-activated by the end of the first quarter. Teleport owns three freighter planes in Malaysia. On top of that, we have 30 airline partners based in Asia and Southeast Asia.

What changes do you anticipate in the competitive landscape if Teleport achieves its vision, and what adjustments might other logistics companies need to make in response?

A couple of things. Firstly, in this region, there are a lot of low-cost carriers that would eventually think about how to continue to improve their business. Like how Teleport built the company off AirAsia’s back, many other low-cost carriers will do the same – spin off a logistic business from their airline operations.

Even in China and Latin America, people have started to spin off their logistics business. So, the multimodal angle is going to be an essential trend.

https://www.linkedin.com/posts/teleportasia_black-box-ceo-pete-on-awan-launch-part-activity-7093153593406484480-GV61?utm_source=share&utm_medium=member_desktop

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In semiconductor manufacturing, there is a battle raging between Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics. As the demand for advanced chips skyrockets in the era of AI, 5G, and the Internet of Things (IoT), the competition between these industry giants has intensified, with each vying for dominance in the lucrative chip market.

Not too long ago, in a compelling twist unveiled during Samsung Electronics’ fourth-quarter financial disclosure of 2023, whispers of a meaningful deal echoed through the tech sphere: the company’s foundry division had clinched a coveted contract for 2-nanometer (nm) AI chips. At that point, shrouded in mystery, Samsung kept the identity of this pivotal partner concealed. 

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Dashveenjit Kaur | 18 January, 2024

Earlier this week, a revelation from Business Korea unveiled the patron: Japanese AI startup Preferred Networks Inc. (PFN). Since its inception in 2014, PFN has emerged as a powerhouse in AI deep learning, drawing substantial investments from industry giants like Toyota, NTT, and FANUC, a leading Japanese robotics firm.

Samsung vs TSMC

Samsung, headquartered in Suwon, South Korea, is set to unleash its cutting-edge 2nm chip processing technology to craft AI accelerators and other advanced AI chips for PFN, as confirmed by industry insiders on February 16, 2024. 

Should news of this landmark deal be legitimate, it would prove mutually advantageous. It empowers PFN with access to state-of-the-art chip innovations for a competitive edge while propelling Samsung forward in its fierce foundry market rivalry with TSMC, as per insider reports.

Ironically, PFN has had a longstanding partnership with TSMC dating back to 2016 but is opting to shift gears hereon, going for Samsung’s 2nm node for its upcoming AI chip lineup, according to a knowledgeable insider. PFN also chose Samsung over TSMC due to Samsung’s full-service chip manufacturing capabilities, covering everything from chip design to production and advanced packaging, sources revealed.

Experts also speculate that although TSMC boasts a more extensive clientele for 2nm chips, PFN’s strategic move to Samsung hints at a potential shift in the Korean giant’s favor. This pivotal decision may pave the way for other significant clients to align with Samsung, altering the competitive landscape in the chipmaking realm.

No doubt, in the cutthroat world of contract chipmaking, TSMC reigns supreme, clinching major deals with industry giants like Apple Inc. and Qualcomm Inc. But, as the demand for top-tier chips escalates, the race for technological superiority is heating up, with TSMC and Samsung at the forefront of the battle. While TSMC currently leads the pack, boasting 2nm chips for clients like Apple and Nvidia, Samsung is hot on its heels. 

“Apple is set to become TSMC’s inaugural customer for the 2nm process, positioning TSMC at the forefront of competition in the advanced process technology,” TrendForce stated in its report. Meanwhile, according to Samsung’s previous roadmap, its 2nm SF2 process is set to debut in 2025. 

Samsung’s Advanced Node Roadmap Down to 1.4nm in 2027. Graph: The Korean Economic Daily.

“As stated in Samsung’s Foundry Forum (SFF) plan, Samsung will begin mass production of the 2nm process (SF2) in 2025 for mobile applications, expand to high-performance computing (HPC) applications in 2026, and further extend to the automotive sector and the expected 1.4nm process by 2027,” TrendForce noted.

Compared to the second-generation 3GAP process at 3nm, it offers a 25% improvement in power efficiency at the same frequency and complexity and a 12% performance boost at the same power consumption and complexity while reducing chip area by 5%. In short, with TSMC eyeing mass production of 2nm chips by 2025, the competition between these tech titans is set to reach new heights.

Yet, in a strategic maneuver reported by the Financial Times, Samsung is gearing up to entice customers with discounted rates for its 2nm process, a move poised to shake up the semiconductor landscape. With its sights set on Qualcomm’s flagship chip production, Samsung aims to lure clients away from TSMC by offering competitive pricing. 

This bold initiative signals Samsung’s determination to carve out a larger market share and challenge TSMC’s dominance in the semiconductor industry.

The post Samsung’s leap: Securing 2nm AI chip deal, nipping at TSMC’s Heels appeared first on Tech Wire Asia.

Nvidia, leader in graphics processing units (GPUs) and AI is considering a significant strategic move: establishing a separate business unit dedicated to building custom AI chips for external clients. This strategic decision marks a substantial shift in the company’s approach, signaling its commitment to meeting customers’ evolving needs in these rapidly expanding sectors.

Nvidia’s dominance in the GPU market has long been undisputed, with its graphics cards powering everything from gaming rigs to supercomputers. Nvidia’s H100 and A100 chips have been the go-to for a range of big clients, serving as versatile AI processors. However, cloud computing and AI demands have grown increasingly specialized, needing tailored solutions to achieve optimal performance and efficiency. 

Recognizing this paradigm shift, Nvidia is planning proactive steps to establish a separate division focused on developing custom chips for these high-growth markets. Several sources have told Reuters recently that Nvidia is planning a division dedicated to custom AI chip development for those markets.

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“Nvidia is building a new business unit focused on designing bespoke chips for cloud computing firms and others, including advanced AI processors, according to nine sources familiar with the company’s plans,” Reuters#’ report reads. The top AI chipmaker wants a slice of the booming custom AI chip market – and to defend itself against competitors exploring other options.

WATCH: The dominant global designer and supplier of AI chips, Nvidia aims to pursue $30 billion custom chip opportunity with a new business unit https://t.co/2qVFZRsBwN pic.twitter.com/tGpgY0ovyK

— Reuters Business (@ReutersBiz) February 10, 2024

This move begs the question: does it make sense for Nvidia to venture into this domain? The company currently dominates 80% of the high-end AI chip market. This has boosted its stock market value by 40% this year to US$1.73 trillion, following a more than triple increase in 2023.

What’s in it for Nvidia, helping companies develop custom AI chips?

Greg Reichow, general partner at Eclipse Ventures, highlighted to Reuters the need for precise application optimization. “You can’t just throw in an H100 or A100 if you’re focused on power or cost efficiency. It’s crucial to have the perfect balance of computing tailored to your needs,” he emphasized.

In other words, customization is critical because one size does not fit all in cloud computing and AI. These fields demand highly specialized hardware solutions tailored to specific workloads and applications. By creating a dedicated custom chips division, Nvidia can offer bespoke solutions that address the unique requirements of its customers, enabling them to maximize performance and efficiency while minimizing costs.

Plus, the demand for AI chips is skyrocketing as organizations integrate AI into their operations across various industries. By offering custom AI chips, Nvidia can tap into a lucrative market opportunity and diversify its revenue streams beyond its traditional GPU business. “Beyond data center chips, Nvidia has pursued telecom, automotive, and video game customers,” the Reuters report reads. 

In 2022, Nvidia announced plans to let third-party customers incorporate its proprietary networking technology into their chips. That means, should Nvidia pursue a custom chips unit, it would present opportunities to collaborate with industry partners. 

According to the Reuters report, Nvidia officials have met with representatives from Amazon.com, Meta, Microsoft, Google, and OpenAI to discuss making custom chips for them.

Besides customization and rapid demand, the pace of innovation in cloud computing and AI has also been relentless.  

New algorithms, frameworks, and applications are constantly emerging, driving the need for cutting-edge hardware that can keep pace with these advancements. With a dedicated focus on custom chips, Nvidia can accelerate the development and deployment of next-generation technologies, giving its customers a competitive edge in an ever-evolving landscape. 

Nvidia’s reputation as a market leader in AI hardware also positions it well to compete in the custom AI chip market. Its deep understanding of AI algorithms and its vast ecosystem of developers give it a competitive edge in designing chips optimized for AI workloads. 

What are the cons of building a standalone custom chip unit?

Building a separate business unit for custom AI chips demands substantial investment in research, development, and manufacturing, meaning Nvidia would have to allocate its resources wisely while maintaining focus on its core GPU business. In an increasingly crowded market, with players like Intel and AMD trying to get more of a foothold, Nvidia must stand out through innovation and service excellence.

Managing the complexities and risks of designing custom AI chips, including technical challenges and market dynamics, is crucial. Additionally, Nvidia faces the task of convincing potential clients of the benefits of custom AI chips and overcoming adoption barriers like cost and compatibility concerns in the nascent market.

Yet, the potential rewards of a custom chip division may outweigh the risks. By using its expertise, its reputation, and its partnerships, Nvidia could establish itself as a critical player in the custom AI chip market and drive future growth and innovation in AI hardware. To achieve any of that though will require careful planning, execution, and adaptation to evolving market dynamics.

The post Is Nvidia considering a custom AI chips division? appeared first on Tech Wire Asia.

When it comes to semiconductor technology, China’s ambition for self-sufficiency has become increasingly evident, notably propelled by its largest state-backed chipmaker, Semiconductor Manufacturing International Corp (SMIC), and tech giant Huawei Technologies. Despite facing years of sanctions from the US over their alleged ties to the Chinese military, both companies are steadfastly pushing forward, determined to advance chip technology and bolster China’s semiconductor capabilities.

Ultimately, their goal is to reduce dependence on foreign chip imports. SMIC has been at the forefront of the country’s semiconductor push, striving to close the technological gap with leading chip-producing nations. Despite facing sanctions and technical challenges, SMIC has made significant strides in advancing chip fabrication processes, with plans to mass-produce 5-nanometer chips in collaboration with Huawei.

A report by the Financial Times recently revealed that China’s leading chipmakers anticipate producing next-gen smartphone processors this year. “The country’s biggest chipmaker, SMIC, has put together new semiconductor production lines in Shanghai, according to two people familiar with the move, to mass produce the chips designed by technology giant Huawei,” the FT said.

SMIC is gearing up to mass-produce new-generation 5nm chips designed by Huawei, marking a significant milestone in China’s quest for chip independence. This collaboration underscores the resilience and determination of Chinese firms to overcome external challenges and establish themselves as key players in the global semiconductor market.

The move came when Beijing leveraged strategic partnerships and international collaborations to accelerate its semiconductor advancements. The country has forged partnerships with leading semiconductor companies and research institutions worldwide, facilitating technology transfer and knowledge exchange to bolster its semiconductor ecosystem.

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However, China’s semiconductor ambitions have not been without challenges and controversies. For starters, China’s semiconductor industry still lags behind its global counterparts in some critical regions, such as advanced process technology and design capabilities. Achieving true technological sovereignty remains an uphill battle, requiring sustained investments, talent cultivation, and policy support. 

To top it off, the country has faced accusations of intellectual property theft, industrial espionage, and unfair trade practices, prompting scrutiny and backlash from the international community. 

What does SMIC have planned for its 5nm collaboration with Huawei?

The country’s biggest chipmaker SMIC has put together new semiconductor production lines in Shanghai. Source: SMIC.

The decision to advance chip production despite sanctions reflects China’s strategic imperative to reduce reliance on foreign technology and assert its technological prowess on the world stage. China has invested heavily in semiconductor research and development in recent years, aiming to close the technological gap with leading chip-producing nations such as the US and Taiwan.

So SMIC’s efforts to set up new semiconductor production lines in Shanghai signify a pivotal moment in China’s quest, especially by using Huawei’s expertise in chip design and the former’s manufacturing capabilities. Moreover, the collaboration between SMIC and Huawei highlights the synergy between state-backed enterprises and leading technology companies in China. 

Two sources familiar with the plans reveal tothe  FT that SMIC intends to utilize its current US and Dutch equipment inventory to manufacture more minor 5nm chips. This production line will manufacture Kirin chips developed by Huawei’s HiSilicon unit, slated for upcoming iterations of its flagship smartphones.

Despite trailing behind the cutting-edge 3nm chips, the adoption of 5nm technology signifies China’s semiconductor sector’s steady advancement amidst US export restrictions. “With the new 5nm node, Huawei is well on track to upgrade its new flagship handset and data center chips,” one person familiar with the plans told FT.

How will this advancement help Huawei?

For context, SMIC’s 7nm and 5nm chip production lines utilize American machines accumulated before the company faced US restrictions. Additionally, its fab includes ASML lithography machines acquired last year. However, the Dutch government’s recent revocation of export licenses for advanced machines has hindered ASML from selling to China.

“SMIC is facing a more significant roadblock for production expansion after the US and its alliance tightened export restrictions on advanced chipmaking gear,” according to the FT‘s source. “Still, the fate of China’s chip industry and its technological development in the coming years will depend on these production lines by SMIC.”

Huawei recently made waves with its Mate 60 Pro, boasting a 7nm processor that spurred a 50% surge in Chinese shipments in 2023. If successful for smartphones, SMIC’s 5nm production could extend to Huawei’s Ascend 920, narrowing the gap with Nvidia’s GPUs. Of course, the push for more advanced chips has resulted in added expenses. 

Sources close to Chinese chip firms revealed that SMIC charges 40 to 50% higher prices for products from its 5nm and 7nm nodes than TSMC. Additionally, SMIC’s yield, or the number of usable chips, is less than one-third of TSMC’s.

🇨🇳 SMIC is aiming to use its existing stock of US and Dutch-made equipment to produce more-miniaturized 5nm chips. The production line will make Kirin chips designed by Huawei’s HiSilicon unit and destined for new versions of its premium smartphones.

“With the new 5nm node,… pic.twitter.com/yAzWv6ymXJ

— Byron Wan (@Byron_Wan) February 6, 2024

Reaction to the Mate Pro 60 was spectacular. Just wait till Washington gets a load of this…

The post SMIC and Huawei are breaking barriers with 5nm chips despite US sanctions appeared first on Tech Wire Asia.

In the lead-up to his surprising and temporary exit from OpenAI in 2023, Sam Altman embarked on an audacious mission to woo billions of dollars out of global powerhouses for his enigmatic chip endeavor, cryptically named Tigris. Reports suggest Altman’s trips to the Middle East last year were not mere travels to top up his sun tan, but strategic moves to secure financial support for Project Tigris, a clandestine venture disclosed by insiders in the same year. After all, OpenAI’s CEO envisions the birth of an AI-centric chip juggernaut poised to disrupt Nvidia’s AI dominance in the fiercely contested semiconductor realm.

However, Altman’s ambitions reach beyond AI chips. Another potential facet adding complexity to his role at OpenAI involves collaborating with Jony Ive, Apple’s former chief design officer. As revealed by a Financial Times report, Altman enlisted Ive’s design firm, LoveFrom, to spearhead the development of a novel consumer device for OpenAI. Allegedly backed by Softbank CEO Masayoshi Son, the influential Silicon Valley duo is drawing inspiration from the transformative impact of the iPhone’s touchscreen on internet usage. 

Yet, with no finalized deal and OpenAI’s CEO’s brief departure, the company’s role in future developments remained uncertain. Until talks on building chip fabrication plants began to surface.

OpenAI CEO Sam Altman during a session of the World Economic Forum (WEF) meeting in Davos on January 18, 2024. (Photo by Fabrice COFFRINI/AFP).

What is the reason behind Project Tigris?

In Altman’s defense, since OpenAI unveiled ChatGPT over a year ago, the AI landscape has witnessed unprecedented interest from corporations and consumers. He isn’t wrong, though–the surge, in turn, has ignited an overwhelming demand for the computational prowess and processors essential for constructing and executing these burgeoning AI applications. 

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Altman has repeatedly emphasized that the existing chip supply falls significantly short of meeting OpenAI’s insatiable requirements. But Altman’s endeavors faced a temporary hiatus when he was briefly removed as OpenAI CEO in November. However, soon after his return, Project Tigris was revived. Altman has even explored the possibility with Microsoft, and sources say the software giant is showing keen interest in the venture.

What has Sam Altman planned for OpenAI now?

The latest development is that Altman has discreetly initiated conversations with potential investors, aiming to secure substantial funds not just for AI chips but for creating chip-fabrication plants, known as fabs. According to anonymous sources quoted in Bloomberg last month, these discussions were with the likes of G42 from Abu Dhabi,  and the influential SoftBank Group.

“The startup has discussed raising between US$8 billion and US$10 billion from G42”, said one of Bloomberg‘s sources. “It’s unclear whether the chip venture and wider company funding efforts are related,” the report reads. This fab project apparently entails collaboration with top chip manufacturers, with the intention of establishing a global network of fabs.

While Bloomberg has previously hinted at fundraising efforts for the chip venture, the accurate scale and manufacturing focus have yet to be unveiled. Still in their early stages, these talks have not yet finalized the list of participating partners and backers, adding a layer of intrigue layer to this evolving narrative. 

Is OpenAI’s venture into building its chip fabs a viable endeavor?

Ultimately, Altman advocates for urgent industry action to ensure an ample supply by the end of the decade, per sources familiar with his perspective. However, his approach, emphasizing the construction and maintenance of fabs, diverges from the cost-effective strategy favored by many AI industry peers, including Amazon, Google, and Microsoft—OpenAI’s primary investor. 

These tech giants typically design custom silicon and outsource manufacturing to external suppliers. The construction of a cutting-edge fab involves a significant financial investment, often reaching tens of billions of dollars, and establishing a network of such facilities spans several years. A single chip factory’s cost can range from US$10 billion to US$20 billion, influenced by factors such as location and planned capacity. 

Is Altman looking for Korean expertise – and money? Source: X.com.

For instance, Intel’s Arizona fabs are estimated to cost US$15 billion each, and TSMC’s nearby factory is projected to reach around US$40 billion. Moreover, these facilities may require four to five years to complete, with potential delays due to current workforce shortages. Some argue that OpenAI seems more inclined to support leading-edge chip manufacturers like TSMC, Samsung Electronics, and potentially Intel rather than enter the foundry industry. 

In an article for The Register, it’s hinted that the strategy could involve channeling raised funds into these fabrication giants, such as TSMC, where Nvidia, AMD, and Intel’s GPUs and AI accelerators are manufactured. TSMC stands out as a prime candidate, given its role in producing components for significant players in the AI industry. 

“If he gets it done—by raising money from the Middle East or SoftBank or whoever—that will represent a tech project that may be more ambitious (or foolhardy) than OpenAI itself,” Cory Weinberg said in his Briefing for The Information.

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