| Hi, this is Jane reporting from Hawaii. Today’s election is pivotal for a litany of global issues, not least of which is the fate of the semiconductor industry. But first... Three things you need to know today: • Canada arrested a man suspected of authoring a series of Snowflake hacks
• Apple proposed investing more in Indonesia to lift iPhone sales ban
• Palantir reported record profit and sees “unwavering” AI demand “Take a deep breath!” Thomas Sonderman, the veteran CEO of SkyWater Technology Inc., spoke for many in the chips industry when I caught up with him at an industry conference this week and asked about the US election. The confab, hosted in the tropical environs of Oahu, Hawaii, is the product of a bitter trade war over chips some 40 years ago between Japan and the US. It's easy to forget that the two nations that today are working together to curb China’s ascent as a tech superpower were once on opposite sides of a similar contest. Events like the International Trade Partners Conference were a step toward resolving those issues, with the mid-Pacific location symbolizing a middle ground. Whether the US and China would ever come to such cordial interactions will depend a lot on who the next American leader will be, and the entire semiconductor industry is watching. For Sonderman, a new administration is a chance to step back, reelevaluate and potentially rethink the deluge of US chip policy measures, subsidies and export controls on China that have come over the past few years. “Let’s think about what we are trying to do here,” he said, noting that in aggregate all the measures limiting China have more hurt than helped the overall chips industry. But it’s far from certain that such calm analyses will prevail. For instance, if Donald Trump reclaims the White House, he’s already expressed his preference to leverage tariffs to bring advanced chipmaking to the US — over the more widely favored option of funding and subsidies, as provided for by the 2022 Chips and Science Act. “That chip deal is so bad,” Trump told Joe Rogan in a three-hour conversation in October. “Joe, you put a big tariff on the chips coming in. I say, you don’t have to pay the tariff, all you have to do is build your plant in the United States. We didn’t have to give them the money to build a plant.” He was referring to Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., makers of everything from Apple Inc.’s iPhone chips to Nvidia Corp.’s priciest AI server hardware. Those companies are building multibillion-dollar projects in Arizona and Texas — and have repeatedly said their huge investments are contingent on major support from the US government. The issue is a live one in Washington, as House Speaker and Republican Mike Johnson had to walk back comments in recent days about repealing the Chips Act and its pricey subsidy program. The law sets aside $39 billion in grants plus 25% tax credits and billions more in loans for a series of incentives to revitalize and reboot chipmaking in the US. And it’s proving popular enough, even in the highly polarized US politics, to elicit pushback against any threat. For SEMI Americas president Joe Stockunas, the foremost concern is that, as of today, only one company — Polar Semiconductor with a relatively small $123 million — has a binding contract for funding under the Chips Act. The close to two dozen other award announcements await the signing of contracts to lock in the funds. “It's actually pretty tough for me to stomach right now because we've really seen good momentum built this year,” Stockunas told me. Delays, whichever administration takes over from the Biden White House, are his biggest fear. In an industry scarred by boom-bust cycles, delays can be derailing. Intel Corp. Chief Executive Officer Pat Gelsinger last week told Bloomberg Television that his company hasn’t yet received any funds to help with construction of new facilities in Arizona and Ohio and criticized the speed at which support has been made available. Still, he’s confident that, regardless of who wins the US presidential election, the initiative will continue. “The Chips Act was a bipartisan act with strong support from both sides of the aisle,” Gelsinger said. Vice President Kamala Harris's bid may present the smoothest path forward. She defended the Chips Act against Johnson's criticism and has spoken of the need to protect US tech leadership over China. But no one is taking anything for granted. Whether the next POTUS is Harris or Trump, we’re all reminding ourselves to breathe while we wait for an end to the uncertainty. Sooner rather than later, preferably.—Jane Lanhee Lee Even emerging markets are growing slower these days. Southeast Asia’s internet economy will log its slowest growth on record this year, a group of researchers said, underscoring weakness in consumer demand and a push to show profits instead of revenue gains. Nintendo slashed its profit and sales forecast after a disappointing quarter for the rapidly aging Switch console. Chinese state-sponsored hackers were behind a breach of Singtel this summer, according to people familiar with the matter, part of a broader campaign against telecom companies. Meta has granted approval for US government agencies and defense contractors to use its AI models. Uber is proposing a cut to New York City drivers’ base pay rate, among other recommendations, as it seeks to lower prices of rides in one of its largest markets. | 
