The first half of 2024 painted a complex picture for the US tech industry. While some sectors weathered economic anxieties, others witnessed significant advancements and investments. Let's delve deeper into the key themes that shaped this period.
Donald Trump Joins TikTok
On the evening of June 1 (local time), former US President Donald Trump announced that he had joined TikTok. Trump's first post on TikTok was a 13-second video, seemingly filmed at a UFC event in New Jersey on the same day.
According to NBC News, Trump's move marks a turning point from several years ago when he issued executive orders to ban TikTok in the US. However, the ban was halted by the courts.
"The United States must take strong action against the owners of TikTok to protect national security," a 2020 executive order signed by Trump stated.
In March 2024, he changed his stance and opposed the TikTok ban, saying it only benefits rival social networks like Facebook. However, many Republican politicians continued to vehemently criticize TikTok. Trump himself still viewed TikTok as a national security threat even while opposing the ban.
In April 2024, US President Joe Biden signed a law banning TikTok, giving ByteDance, the parent company, a 9-month deadline to divest if they wished to avoid the ban. However, Biden's election campaign also owned a TikTok account and regularly posted content.
(As reported by NBC News)
Out top 5 Chip Foundries, Intel still dreams of leadership position
Intel CEO Pat Gelsinger asserts that Intel aims to regain its leading position in chip manufacturing as the American company has fallen behind TSMC and Samsung in recent years.
"We want to become the chip foundry for all customer segments. Of course, all products will be manufactured by machines located in the US," Gelsinger told CNBC on the sidelines of the Computex technology conference in Taipei on June 4.
Intel is seeking to boost its chip foundry business, a sector that reported a $7 billion loss in 2023. According to a report by Counterpoint Research on May 22, the US company is currently not among the top 6 highest revenue-generating foundries.
Intel was once the world's largest chip manufacturer until 2017 when Samsung Electronics surpassed it in revenue. In 2023, Taiwan's TSMC continued to surpass Samsung, becoming the world's largest chip foundry. Therefore, Intel sets the goal of "returning to the top position due to many losses related to inferior competitive processing technology."
Data from S&P Global compiled in March shows that US chip giants such as Intel, Broadcom, Qualcomm, and Marvell Technology are earning more revenue from China than from the US.
Both Google and Microsoft announced mass layoffs
On June 3, a Microsoft spokesperson confirmed to CNBC the layoffs in the Mixed Reality division. Despite impacting the team responsible for the HoloLens 2 augmented reality glasses, the company will continue selling the device. It's unclear whether the Windows manufacturer plans to produce HoloLens 3.
According to CNBC sources, over 1,000 employees, including those in the Mixed Reality division, will be laid off in this round of cuts.
Microsoft hasn't seen significant success with HoloLens since its launch in 2015. However, the US Department of Defense has contracted the company to modify the device for military use. Meanwhile, Microsoft and other tech firms have poured billions into commercializing AI while reducing investments in virtual and augmented reality.
Meanwhile, according to Business Insider, Microsoft also cut hundreds of employees from its Azure cloud division.
Another tech giant announcing layoffs on the same day as Microsoft is Google. At least 100 employees from various teams within Google's cloud division will depart. According to CNBC sources, the company notified employees last week, and the eliminated positions include sales, consulting, operations, and technical roles.
A Google spokesperson stated that the number of layoffs is insignificant and aims to better align with market demands: "We maintain a commitment to invest in areas critical to our business operations and ensure long-term success."
Since the beginning of 2023, Google has been continuously laying off employees. Employees have also complained about strict deadlines, scarce resources, and limited advancement opportunities, even as Google records record profits.
Last month, Google laid off around 200 positions from the "Core" group, including critical teams and technical staff. CEO Sundar Pichai pledged that the company would make fewer cuts in the latter half of 2024.
(According to CNBC, Insider)
