Japan Car Makers Scramble to Assess Impact of Renesas Auto Chip-plant Fire

Toyota, Nissan, Honda and other Japanese automakers scrambled on Monday to assess the production impact of a fire at a Renesas Electronics automotive chip plant that could aggravate a global semiconductor shortage. “We are gathering information and trying to see if this will affect us or not,” a Honda spokesperson said. Other car makers including Toyota and Nissan said they too were assessing the situation. The effect on car makers could spread beyond Japan to other auto companies in Europe and the United States because Renesas has around a 30% global share of micro control unit chips used in cars. Renesas said it will take at least a month to restart production on a 300 mm (millimeter) wafer line at its Naka plant in northeast Japan after an electrical fault caused machinery to catch fire on Friday and poured smoke into the sensitive clean room. Two-thirds of production at the affected line is automotive chips. The company also has a 200 mm (millimeter) wafer line at the Naka plant, which has not been affected. Concerns on the impact of the fire on production sent auto shares sliding in Tokyo on Monday, with the big three, Toyota, Honda and Nissan, down more than 2% by the midday break. Renesas shares tumbled as much as 5.5% and were down 3.9% midday. The benchmark Topix index shed 1.1%. “It will probably take more than a month to return to normal supply. Given that, even Toyota will face very unstable production in April and May,” said Seiji Sugiura, senior analyst at Tokai Tokyo Research Institute. “I think Honda, Nissan and other makers will also be facing a difficult situation.” Semiconductors such as those made by Renesas are used extensively in cars, including to monitor engine performance, manage steering or automatic windows, and in sensors used in parking and entertainment systems.An employee wearing protective equipment pushes a cart at a semiconductor production facility for Renesas Electronics during a government organized tour for journalists in Beijing, May 14, 2020.Nissan and Honda had already been forced to scale back production plans because of the chip shortage resulting from burgeoning demand from consumer electronic makers and an unexpected rebound in car sales from a slump during the early months of the coronavirus pandemic. Toyota, which ensured parts suppliers had enough stocks of chips, has fared better so far. “It could take three months or even half a year for a full recovery,” said Akira Minamikawa, analyst at technology research company Omdia. “This has happened when chip stockpiles are low, so the impact is going to be significant,” he added. Government promises help  Renesas said it customers, which are mostly automotive parts makers rather than the car companies, will begin to see chip shipments fall in around a month. The company declined to say which machine caught fire because of the electrical fault or which company made it. The Japanese government promised help for the auto industry. “We will firmly try to help the Naka factory achieve swift restoration by helping it quickly acquire alternative manufacturing equipment,” Chief Cabinet Secretary Katsunobu Kato told a regular news conference on Monday. The latest incident at the Naka facility comes after an earthquake last month shut down production for three days and forced Renesas to further deplete chip stocks to keep up with orders. The plant was closed for three months in 2011 following the deadly earthquake that devastated Japan’s northeast coast. 

Biden to Nominate Former Sen. Nelson as NASA Chief

U.S. President Joe Biden announced Friday he plans to nominate former U.S. Sen. Bill Nelson to lead the U.S. space agency, NASA.In a statement, the White House says as a member of the U.S. House of Representatives and a three-term senator from Florida, Nelson, a Democrat, chaired committees on space, science and transportation. They also note he co-authored the landmark 2010 NASA bill which set the current path of private-sector partnership. In the statement, the White House notes Nelson, as a congressman in 1986, even flew on a six-day space shuttle mission. He currently serves on the NASA advisory council.Nelson, if approved by the Senate, would take over the agency as commercial space projects are already shuttling supplies and astronauts to the International Space Station.NASA is also preparing to return astronauts to the moon in the next four years.Nelson’s nomination has already received the endorsement of Sen. Marco Rubio, a Florida Republican.“I cannot think of anyone better to lead NASA than Bill Nelson,” Rubio tweeted on Thursday.
If approved, Nelson would be NASA’s 14th administrator, and would take over from the Trump administration’s appointee, former Oklahoma congressman Jim Bridenstine.

Twitter Asks Users to Weigh in on Rules for World Leaders

Twitter on Friday began a survey of global users about platform rules for world leaders while consulting human rights and academic specialists on its next policy steps.The announcement comes after Twitter joined other social networks banning then-president Donald Trump for his comments seen as inciting the violent attack on the US Capitol in January.The ban was criticized by Trump supporters while others had argued Twitter should have taken action earlier despite its policy of allowing leeway for world leaders and newsworthy posts.”Politicians and government officials are constantly evolving how they use our service, and we want our policies to remain relevant to the ever-changing nature of political discourse on Twitter and protect the health of the public conversation,” the Twitter safety team said in a blog post.”That’s why we’re reviewing our approach to world leaders and seeking your input.”Twitter will be asking users their views in a survey in 14 languages, from Friday until April 12.”Generally, we want to hear from the public on whether or not they believe world leaders should be subject to the same rules as others on Twitter. And, should a world leader violate a rule, what type of enforcement action is appropriate,” the statement said.”We’re also in the process of consulting with a range of human rights experts, civil society organizations, and academics worldwide whose feedback will be reflected in forthcoming revisions to the policy framework.”

Facebook Signs Deal to Pay Australia’s News Corp for Content

Facebook has reached an agreement with Australia’s News Corp under a new law that makes social media giants pay domestic news outlets for their content.The terms of the multi-year deal were not disclosed in Tuesday’s announcement. The deal comes nearly one month after Australia’s parliament approved a law that would allow a government arbitrator to decide the price a digital company should pay news outlets if the two sides fail to reach an agreement.News Corp Chief Executive Officer Robert Thomson said the agreement “is a landmark in transforming the terms of trade for journalism, and will have a material and meaningful impact on our Australian news businesses.”According to Facebook’s head of news partnerships in Australia, Andrew Hunter, the deal means the social media giant’s 17 million users in the country “will gain access to premium news articles and breaking news video from News Corp’s network of national, metropolitan, rural and suburban newsrooms.”The law’s passage occurred after a bitter standoff between U.S.-based Facebook and News Corp, owned by global media mogul Rupert Murdoch, that culminated with the social media giant blocking all Australian news content from the site, as well as the websites of several public agencies and emergency services, including pages that include up-to-date information on COVID-19 outbreaks, brushfires and other natural disasters.The situation was resolved after negotiators for the government and Facebook reached an agreement on a set of changes to the legislation before its final passage.News Corp says its Australian subsidiary, Sky News, had also reached a separate deal with Facebook that extends an existing agreement.Australian media companies have seen their advertising revenue increasingly siphoned off by big tech firms like Google and Facebook in recent years.Google had also threatened to block news content if the law were passed, even warning last August that Australians’ personal information could be “at risk” if digital giants had to pay for news content.But the company had already signed a number of separate agreements with News Corp and other Australian media giants such as Nine Entertainment and Seven West Media.Nine Entertainment and Seven West have said they have signed letters of intent with Facebook on a potential deal.

Semiconductor Chip Shortage Causes GM to Cut Fuel Management Module from Trucks

U.S. automaker General Motors Corporation announced Monday it will build certain 2021 light-duty full-size pickup trucks without a fuel management module due to the global semiconductor chip shortage.In an email to the Reuters news agency, GM spokeswoman Michelle Malcho said the decision will lower the fuel economy slightly in those models effected by the decision, including the Chevy Silverado and the GMC Sierra.Malcho emphasized all trucks are still being built, something GM has repeatedly stressed it would try to sustain as pickups are among GM’s most profitable models. She declined to say the volume of vehicles affected.The change runs through the 2021 model year, which typically ends in late summer or early fall, she said.Malcho said it would not have a major impact on the Detroit automaker’s U.S. corporate average fuel economy (CAFE) numbers.Other automakers around the world, including Ford and Nissan, have had to make production adjustments because of the microchip shortage.Industry observers say the shortage has been driven by the pandemic in a number of ways, including a surge in demand for consumer electronics, as more people work and study from home. Automakers, meanwhile, expecting lower sales, cancelled orders for chips last year, only to see sales rebounding, catching suppliers unprepared.  

Facebook Scraps Trans-Pacific Cable

Facebook has scrapped plans to connect California, Taiwan and Hong Kong via a 12,000 kilometer underwater cable, citing tensions between the U.S. and China.
The social media giant told the Wall St. Journal, which broke the story, it was halting the project due to political pressure from the U.S. government, which noted potential national security concerns.
“Due to ongoing concerns from the U.S. government about direct communication links between the United States and Hong Kong, we have decided to withdraw our [Federal Communications Commission] application,” a Facebook spokesperson said. “We look forward to working with all the parties to reconfigure the system to meet the concerns of the U.S. government.”  
Facebook, along with several Chinese companies including China Telecom, applied for permits to start the cable in 2018. The cable would have sped up the flow of data across the Pacific.
This is not the first time a Pacific cable that included Hong Kong has been placed on hold. In September of 2020, Google and Facebook shelved the Pacific Light Cable Network that would have linked the U.S. with Taiwan, Hong Kong and the Philippines.  
Around the same time, Facebook and Amazon ditched a proposed cable link between San Francisco and Hong Kong called the Bay to Bay Express Cable.