Enterprise

US is calling Huawei, ZTE a national security threat

The odds aren’t in China’s favor

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The U.S. Federal Communications Commission (FCC) designated Huawei and ZTE as a national security threat. This doesn’t come as a surprise since the US has been trying to sideline the two Chinese telecom equipment companies for months.

However, with the new designation comes a flood of bad news for the two companies. The action means carriers won’t be able to use money from federal subsidies to buy or maintain equipment from the two companies. While the US has actively tried to reduce its dependence on Huawei or ZTE gear, the latest announcement is an indication of escalation.

FCC Commissioner Geoffrey Starks said on Tuesday that “untrustworthy equipment” continues to remain a part of US telecom infrastructure. He asked Congress to allocate funding to replace the remaining equipment.

Three state-controlled telecom operators — China Telecom Americas, China Unicom Americas, Pacific Networks Corp, are also on the grinding block. FCC is considering termination of its authorization to operate.

Huawei is combatting issues on multiple fronts at the moment. The US has lobbied allied countries to avoid Huawei or ZTE technology. Furthermore, Huawei is barred from transacting with American counterparts like Google. Its consumer smartphone division has come to a startling halt since the phones can’t run the full capabilities of Android via Google Mobile Services.

ZTE too has been out of luck. In 2018, US President Donald Trump had said that of the two vendors, ZTE could continue trading after paying a fine of US$ 1.3 billion, and providing “high-level security guarantees.” However, the latest designation again puts the company in an impossible spot.

Enterprise

China accuses the United States of hacking into Huawei

Since 2009

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For years, the American government hounded Chinese companies for allegedly giving China an easy backdoor into the United States. The allegations don’t normally happen from the other way around, though. Today is different. The Chinese government has accused the United States of hacking into Huawei servers since 2009.

It’s an uncommon turn of events. In a Weibo post (via Nikkei Asia), China’s Ministry of State Security claimed that it discovered evidence of American hackers breaking into Chinese servers.

According to the post, the U.S. government’s Office of Tailored Access Operations used spyware to access Huawei’s servers since 2009. The spyware involved was called Second Date, a piece of spyware that was, according to the Chinese post, “developed by the U.S. National Security Agency.”

The spyware was partially discovered by Qihoo 360, an agency investigating American-led hacking attacks against China. The mere discovery, however, does not include explicit references to Huawei as a target.

China’s retaliation against the United States is slowly ramping up. Recently, the Chinese government started banning its officials from using iPhones for work. A wider ban might even be in the works.

For the United States, the American government is also investigating Huawei once again. After the surprising launch of the Mate 60 series, the government is interested to see how the Chinese company can still make smartphones without American technology.

SEE ALSO: Analyst: Qualcomm will fall as Huawei rises again

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Enterprise

Microsoft was planning to buy Nintendo

Plans were as recent as 2020

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For months, Microsoft found itself in a broiling tub of hot water. The American government is investigating whether the company’s planned acquisition of Activision Blizzard stifles competition in the industry. Though the results of the court proceedings are still unknown, a newly released document has revealed much more about Microsoft’s plans to further dominate the industry.

Documents releasing left and right are no longer new. Since Microsoft took the stand months ago, both sides in the matter have released documents to corroborate their claims. These releases are casting a light onto information that the company never wanted to make public in the first place.

Today, a new document (via The Verge) reveals that Microsoft’s Phil Spencer recently expressed desire to acquire Nintendo in the future. In an email between him and two marketing executives, Spencer writes that “Nintendo is THE prime asset for us in Gaming.”

The 2020 email thread is simply titled “random thought.” As such, it’s unlikely that the thread represents any official move to acquire Nintendo. However, the contents of the thread reveal that it’s more than just a passing interest.

Apparently, a former member of the company’s board of directors was heavily acquiring shares from Nintendo. Spencer is keeping in touch with the buyer and waiting for prime opportunities to bridge the two companies. It’s a long-term strategy. “I don’t think a hostile action would be a good move, so we are playing the long game,” he writes.

Acquiring Nintendo is certainly a bold move for Microsoft. However, it is unknown whether the CEO is still contemplating on the move today, especially since the company is under the microscope for anti-competitive practices and acquisitions.

SEE ALSO: Microsoft introduces a 1TB model for the Xbox Series S

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Enterprise

Qualcomm continues 5G chip deal with Apple until 2026

Apple’s in-house chip isn’t ready yet

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Since the start of Apple Silicon, the company has been trying to replace its third-party components with in-house ones. One component that it still lacks is an in-house 5G modem chip. Despite ongoing development, it seems that the component is still forthcoming. Qualcomm, Apple’s partner for modems, has just inked a new deal, extending its partnership with Apple until 2026.

Originally, Apple was set to end its deal with Qualcomm this year. Previous rumors reported that the in-house 5G modem was developing well. Today, the chipmaking company officially confirmed that it will continue to supply Apple with 5G chips for “smartphone launches in 2024, 2025, and 2026.”

While the announcement does not explicitly mention specific models, it’s clear that the in-house modem is not ready to take over the entire lineup until 2026. Apple can still introduce the modem at any point before 2026. However, it’s likely that such an introduction would be gradual, instead of a complete takeover.

The new deal is still big for Qualcomm, though. Huawei’s sudden resurgence with Kirin can potentially damage Qualcomm’s sales. After all, Huawei was a major customer for the chipmaker. With the renewed deal today, Qualcomm keeps a customer for the foreseeable future.

SEE ALSO: Analyst: Qualcomm will fall as Huawei rises again

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