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As TSMC invests $100bn to address chip shortage, where does that leave the rest of the industry? • The Register

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Analysis Taiwan Semiconductor Manufacturing Co., also known as TSMC, plans to spend $100bn over the next three years in response to chip demand and has advised its customers to expect to pay more.

Word of the firm’s investment plan comes from Nikkei Asia, which claims to have seen a letter from TSMC CEO C.C. Wei outlining the investment plan. It follows closely on the heels of Intel CEO Pat Gelsinger outlining Intel’s foundry strategy and spending plans.

The demand for semiconductors reflects the lack of supply, which Falan Yinug, director of industry statistics and economic policy for the Semiconductor Industry Association, in February attributed to pandemic-related demand – IT purchases to support remote work – and the increased use of semiconductors in vehicles.

“The shortage is a reminder of the essential role semiconductors play in so many critical areas of society, including transportation,” said Yinug in a blog post. “This trend will only continue as demand for electronics and connectivity grows.”

The drought in Taiwan, where TSMC is based, hasn’t helped.

Yinug argued that the shortage should be addressed by more federal support for chip manufacturing in the US and attributed the declining US share of the global semiconductor market – from 37 percent in 1990 to 12 percent today – to foreign government subsidies of foreign competitors that have gone unanswered.

Micron Technology HQ in Boise, Idaho

Micron chief warns ‘severe shortage’ of DRAM expected to continue this year

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A week later, the US-focused trade group sent a letter [PDF], signed by the CEOs of AMD, Intel, and other US chip makers, to US President Joe Biden asking for “substantial funding for incentives for semiconductor manufacturing.”

Biden on Wednesday rewarded the industry by asking Congress, as part of his American Rescue Plan, “to invest $50 billion in semiconductor manufacturing and research, as called for in the bipartisan CHIPS Act.”

If Biden’s plan gets approved, chipmakers may also see a halo effect from adjacent spending contemplated under the economic stimulus program, like $20bn for regional innovation hubs and community revitalization, $14bn for NIST “to bring together industry, academia, and government to advance technologies and capabilities critical to future competitiveness,” and $50bn for the National Science Foundation (NSF) to create a technology directorate focused “on fields like semiconductors and advanced computing, advanced communications technology, advanced energy technologies, and biotechnology.”

Another piece of US legislation proposed last year, the America Foundries Act of 2020, would offer as much as $25bn in grants to US states to fund fab facilities if it becomes law.

US chipmakers have already made comparable commitments, with Intel last month promising $20bn to build two new fabs in Arizona as a part of its planned foundry business.

But Intel will have competition there. Last year, in May, TSMC also tapped Arizona as the location of a planned $12bn semiconductor fab it plans to build. And Samsung Foundry as of January was casting about for government subsidies to build a new fab site in Arizona, New York, or Texas [PDF], a deal estimated to be worth $17bn and part of its plan to spend $116bn on its foundry and chip business over the next decade. Both projects aim to be operational in 2024.

The EU in March, as part of its Digital Compass plan, said it wants to double its chip output to 20 per cent of the global market by 2030. The following day, Apple, a TSMC customer, said it would invest over €1bn in a European chip design center based in Munich, Germany.

In November, trade group SEMI projected that the semiconductor industry will add 38 new 300mm fabs by 2024, and more recently forecast a surge in fab equipment spending.

According to a Congressional Research Service report published October 26, 2020, “Semiconductors: US Industry, Global Competition, and Federal Policy” [PDF], Taiwan, South Korea, and Japan accounted for two-thirds of the world’s semiconductor fabrication capacity in 2019, and China was responsible for 12 per cent of global fabrication.

The report notes that US legislators have become increasingly concerned about the concentration of chip manufacturing in East Asia and the implications that has on the semiconductor supply chains in the event of trade conflict or warfare.

The federal government appears to be ready to pay to shift the center of chip-making gravity to more accurately reflect US interests. But other countries and foreign competitors have their own ideas about where chips should be made. ®

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Molly Russell inquest: social media ‘almost impossible’ to keep track of, says teacher | UK news

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The headteacher of Molly Russell’s secondary school has told an inquest into the teenager’s death it is “almost impossible” to keep track of the risks posed to pupils by social media.

North London coroner’s court heard of the “complete and terrible shock” at Molly’s school after the 14-year-old killed herself in November 2017. Molly, from Harrow in north-west London, killed herself after viewing extensive amounts of online content related to suicide, depression, self-harm and anxiety.

Sue Maguire, the headteacher at Hatch End high school in Harrow, was asked how difficult it was for a school to stay on top of dangerous social media content.

She said: “There is a level where I want to say it is almost impossible to keep track of social media but we have to try, and we have to respond to the information as we receive it.”

Describing the school’s “shock” at Molly’s death, Maguire added that teachers had warned students about the “dangers of social media for a long time”.

She said: “Our experience of young people is that social media plays a hugely dominant role in their lives and it causes no end of issues. But we don’t present a stance that they should not use it. But it presents challenges to schools that we simply didn’t have 10 or 15 years ago.”

Oliver Sanders KC, representing the Russell family, asked Maguire whether the school was aware of the suicide and self-harm-related content available to students on sites such as Instagram.

Maguire said: “At the time, we were shocked when we saw it. But to say that we were completely shocked would be wrong because we had been warning young people about the dangers of social media for a long time.”

The deputy headteacher, Rebecca Cozens, who is also head of safeguarding at the school, told the inquest once young people had gone “down the rabbit hole” on social media, it was a “deep one”.

Asked by Sanders whether there was an awareness of the type of material Molly had engaged with, Cozens said: “I don’t think at that time an awareness of the depth of it and how quickly it would snowball … and the intensity then, when you’re going down that rabbit hole it is a deep one.”

On Monday a senior executive at Meta, the owner of Instagram, apologised after acknowledging that Molly had viewed content that breached the platform’s content guidelines. Elizabeth Lagone, the head of health and wellbeing policy at Meta, said: “We are sorry that Molly saw content that violated our policies, and we don’t want that on the platform.”

Last week an executive at Pinterest, another platform Molly interacted with heavily before her death, said the site was not safe when the teenager used it.

The senior coroner, Andrew Walker, told the Russell family he would deliver his conclusions by the end of the week.

  • In the UK, the youth suicide charity Papyrus can be contacted on 0800 068 4141 or email pat@papyrus-uk.org, and in the UK and Ireland Samaritans can be contacted on freephone 116 123, or email jo@samaritans.org or jo@samaritans.ie. In the US, the National Suicide Prevention Lifeline is at 800-273-8255 or chat for support. You can also text HOME to 741741 to connect with a crisis text line counsellor. In Australia, the crisis support service Lifeline is 13 11 14. Other international helplines can be found at befrienders.org

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Microsoft to kill off old access rules in Exchange Online • The Register

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Microsoft next month will start phasing out Client Access Rules (CARs) in Exchange Online – and will do away with this means for controlling access altogether within a year.

CARs are being replaced with Continuous Access Evaluation (CAE) for Azure Active Directory, which can apparently in “near-real time” pick up changes to access controls, user accounts, and the network environment and enforce the latest rules and policies as needed, according to a notice this week from Microsoft’s Exchange Team.

That might be useful if suspicious activity is detected, or a user account needs to be suspended, and changes to access need to be immediate.

“Today, we are announcing the retirement of CARs in Exchange Online, to be fully deprecated by September 2023,” the advisory read. “We will send Message Center posts to tenants using client access rules to start the planning process to migrate their rules.”

CARs is used by Microsoft 365 administrators to allow or block client connections to Exchange Online based on a variety of characteristics set forth in policies and rules.

“You can prevent clients from connecting to Exchange Online based on their IP address (IPv4 and IPv6), authentication type, and user property values, and the protocol, application, service, or resource that they’re using to connect,” according to a Microsoft document from earlier this year.

For example, access can be granted to Exchange resources from specific IP address, and all other clients blocked. Similarly, the system can filter access to Exchange services by department or location, or based on usernames.

Microsoft announced the replacement CAE in January, touting its ability to act fast on account revocation, disablement, or deletion; password or user location changes; the detection of nefarious activity; and other such updates, according to a blog post at the time by Alex Simons, corporate vice president of product management for the Windows giant’s identity and network access division.

“On receiving such events, app sessions are immediately interrupted and users are redirected back to Azure AD to reauthenticate or reevaluate policy,” Simons wrote. “With CAE, we have introduced a new concept of zero trust authentication session management that is built on the foundation of zero trust principles – verify explicitly and assume breach.”

With this zero-trust focus, session integrity – rather than a set session duration – is what dictates a user’s authentication lifespan, we’re told.

CAE not only aims to give enterprises greater and more immediate control over access and events, but users and managers may appreciate the speed at which changes are adopted, Microsoft claims.

“Continuous access evaluation is implemented by enabling services, like Exchange Online, SharePoint Online, and Teams, to subscribe to critical Azure AD events,” Microsoft added earlier this month. “Those events can then be evaluated and enforced near real time. Critical event evaluation doesn’t rely on Conditional Access policies so it’s available in any tenant.”

Critical events can include a user account being deleted or disabled, a user password is changed or reset, or multifactor authentication is enabled for a user. There also are other events, such as when an administrator explicitly revokes all refresh tokens for a user or a rogue insider is detected by Azure AD Identity Protection.

Finally, for workload identities, CAE enforces token revocation for workloads, among other things, according to Microsoft. ®

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EU proposes new liability rules around AI tech to protect consumers

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The current EU rules around product liability are more than 40 years old, meaning they do not cover harm caused by drones and other AI tech.

The European Commission has outlined a set of new proposals to enable people who are harmed by AI tech products to seek and receive compensation.

The proposals were published today (28 September). They are designed to comply with the EU’s 2021 AI Act proposal, which set out a framework for trust in AI-related technology.

Today’s AI Liability Directive aims to provide a clear and comprehensive structure for all Europeans to claim compensation in the event they are harmed by AI tech products, such as drones and robots.

The EU’s directive includes rules for businesses and consumers alike to abide by. Those who are harmed by AI products or tech can seek compensation just as they would if they were in harmed any other way.

The rules will make it easier for people who have been discriminated against by AI technology as part of the recruitment process, for example, to pursue legal action.

An example of harm that may be caused by tech products is data loss. Robots, drones, smart-home systems and other similar digital products must also comply with cybersecurity regulations around addressing vulnerabilities.

The directive builds on existing rules that manufacturers must follow around unsafe products ­– no matter how high or low-tech they are.

It is proposing a number of different strategies to modernise and adapt liability rules specifically for digital products. The existing rules around product liability in the EU are almost 40 years old, and do not cover advanced technologies such as AI.

European commissioner for internal market, Thierry Breton, said that the existing rules have “been a cornerstone of the internal market for four decades”.

“Today’s proposal will make it fit to respond to the challenges of the decades to come. The new rules will reflect global value chains, foster innovation and consumer trust, and provide stronger legal certainty for businesses involved in the green and digital transition.”

Vice-president for values and transparency, Věra Jourová, said that for AI tech to thrive in the EU, it is important for people to trust digital innovation.

She added that the new proposals would give customers “tools for remedies in case of damage caused by AI so that they have the same level of protection as with traditional technologies”. The rules will also “ensure legal certainty” for the EU’s internal market.

As well as consumer protection, the proposals are designed to foster innovation. They have laid down guarantees for the AI sector through the introduction of measures such as the right to fight a liability claim based on a presumption of causality.

The AI Liability Directive will need to be agreed with EU countries and lawmakers before it can become law.

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