Longtime Slashdot reader schwit1 shares a report from Reuters: The Federal Communications Commission, which oversees the U.S. telecom industry, is working on the measure to bar imports of new Chinese optical transceivers, which allow data to travel over fiber-optic cables at the speed of light within data centers. Officials hope to publish it this year, when it would take effect. The move, not previously reported, aims to prevent Chinese firms from stealing data, installing malware or disrupting service at U.S. data centers, which house the chips to train and run AI models. The FCC could still modify or shelve the restriction, the sources stressed, speaking on condition of anonymity to discuss sensitive matters. [...] A U.S. ban on new models of Chinese data center devices would likely hit China's Zhongji Innolight, one of the biggest global sellers of transceivers, which was added to the Pentagon's list of alleged Chinese military-backed companies in June. The list can be a harbinger of tougher action. A ban could also raise costs for American cloud firms such as Amazon Web Services, as it may force them to transition to other producers such as U.S.-based Coherent and Lumentum.

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Apple's stock "fell just shy of 10% on Friday," reports Yahoo Finance, "after CEO Tim Cook warned about the impact of the global memory shortage on the company's business." During Apple's third quarter earnings call, Cook said the company paid significantly more for memory in the quarter and expects that to further increase in the current period. And while Apple is able to offset some of that price jump, it won't be able to tackle it all... The CEO said that iPhone and Mac sales outpaced Apple's own expectations and that a lack of flexibility in the supply chain is making it more difficult to keep up with demand. Yahoo Finance cited an investment analyst who predicts overall gross margins for Apple's iPhone could drop from 38% to 34.5%. But another analyst sees a scenario where Apple "raises iPhone prices, unit growth will slow, and as unit growth slows, so will user growth, which we think ultimately will slow Services growth." (Still, Yahoo Finance predicts Apple's new leasing program "could help address those concerns.") Apple has another controversial option, according to the blog 9to5Mac: Bloomberg reports that US senators from both sides of the aisle are urging Apple CEO Tim Cook to commit by August 21 to not using memory chips from Chinese suppliers CXMT and YMTC.... Apple is not required to obtain U.S. government approval to purchase chips from the companies, but doing so without the administration's support could expose it to significant political ramifications. Which is why, in an interview with The Wall Street Journal ahead of Apple's recent price hikes, Tim Cook said that "everything needs to be on the table," adding that "we should look at all supply...." More recently, the Journal reported that Apple's use of Chinese memory chips could extend beyond China, with the company seeking the administration's blessing to use components from CXMT and YMTC in products sold elsewhere outside the US. The report also detailed Micron's efforts to persuade the administration to reject Apple's request, arguing that allowing Chinese suppliers into Apple's supply chain could undermine domestic memory production... [Bloomberg's reported that U.S. lawmakers warned] other companies could follow Apple's lead, potentially undermining domestic memory production and planned investments in states such as Indiana, Idaho, New York, and Virginia... [T]he senators sought details about any information Apple has shared with CXMT during the component qualification process, noting that the transfer of controlled technical information to advanced chipmaking facilities in China may require a Commerce Department license. The blog MacRumors notes that Apple has already increased prices for Macs and iPads in June because of surging memory prices. Apple CEO Tim Cook said Thursday "we did it because we're in what I would characterize as a 100-year flood on memory pricing with exponential increases in memory prices." Cook did not comment on whether Apple plans to raise iPhone prices when the iPhone 18 Pro models and first foldable launch this September, but multiple analysts believe prices will go up. Cook said Apple is expecting to pay higher memory costs in the September quarter, though Apple will be able to partially offset it with lower costs on some non-memory components and a stockpile of inventory. Sky News points out that "It was Tim Cook's final earnings appearance before his retirement after 15 years at the helm of the company." Apple, which recently topped Nvidia as the most valuable listed company, has been largely spared the volatility in share price seen by chipmakers and big spenders on artificial intelligence. Apple continues to generate cash without the huge investment spending that its Wall St peers are dealing with "and that showed across most parts of the operation," said Thomas Monteiro, an analyst at Investing.com.

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According to The Information (paywalled), a state-backed Shanghai company has begun mass-producing China's first homegrown immersion DUV lithography machines, with about five units expected this year for SMIC, Hua Hong, and CXMT. Roughly 20 more units are expected in 2027. Tom's Hardware reports: The Information didn't name the manufacturer, but its sources described the operation as having pulled DUV development teams from several Chinese companies, one of them the state-backed startup Shanghai Yuliangsheng Technology. SMIC has been testing a Yuliangsheng immersion tool since September 2025. Most components in the new systems are domestic, though some critical parts still come from Japan, and delays at local suppliers have held back output this year. [...] China accounts for around 20% of ASML's net sales this year, down from 33% in 2025, driven mainly by mainstream logic demand... Independent analysis from the AI Futures Project in June put commercial-scale Chinese immersion DUV in the mid-2030s, with ASML holding 98.7% of the immersion market. Qualifying the new machines for production lines could take many months, and they trail ASML's tools on performance and build quality. China's domestic EUV effort, which Reuters first reported as a working prototype in December, remains years away.

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From the site tech-news site XDA Developers: The consumer tech economy needs more DRAM manufacturers, and it needs them more urgently than perhaps at any point in its history. Anyone keeping track of the pricing trends will know that memory prices have climbed into the stratosphere on the back of AI infrastructure's relentless demand, and every consumer device that depends on RAM has traveled from inflated to unaffordable, quarter after quarter, with almost no relief in sight. Which is exactly why a story out of Shenzhen is worth paying attention to, even in its current rumor phase. According to the details circulated by various semiconductor analysts on X, the Chinese government, DRAM maker SwaySure and Chinese tech giant Huawei have partnered to set up a 12-inch memory production plant. If the reports hold up, it could change memory economics for years to come, but not necessarily in the way you'd hope... SwaySure itself is a known player. The company was registered in Shenzhen in March 2022, is reportedly backed by municipal government, and appears alongside Huawei on the US Commerce Department's Entity List, suggesting Washington has realized the connection between the two entities. Although, that's also where the story becomes a little less straightforward. None of these claims have been independently confirmed, and many of the technical details circulating online trace back to a single X account. Huawei has previously denied operating the wider network of state-backed fabs that analysts have reported. Even the widely quoted figure of 140,000 wafers per month isn't new, and public records indicate SwaySure's production line is already operational. What gives the report weight, then, is the fact that Huawei has spent years building this kind of domestic semiconductor ecosystem through partners that appear to operate independently. The rationale that analysts on X keep revisiting has little to do with consumer memory. Huawei's Ascend AI accelerators require high-bandwidth memory (HBM), and US export controls have all but cut Chinese entities from procuring HBM from Samsung or SK Hynix... Owning the supply outright solves a problem that purchasing power can't, which is why the DRAM push is read as a bid to secure captive HBM for Huawei's own silicon rather than to flood the market with cheaply manufactured DDR5... The catch, however, is the fact that most of this new and rejuvenated capacity is expected to be absorbed by China's own domestic demand, rather than to relieve the global shortage... This development does not seem to be an isolated incident, given the state of DRAM economics. CXMT, China's largest manufacturer of DRAM, is already running close to 265,000 wafer starts per month as of now as per analyst estimates, and is projected to hit 350,000 by the end of the year, bringing it within the touching distance of Micron's estimated 385,000.... [T]he oligopoly seems to be facing the first credible challenge to its capacity discipline in decades, and it seems to be coming from a country building fabs much faster than the competition could hope to match. Now, whether it tangibly impacts the consumer market economics in the time to come may be a story in its own right in a few years, but for now, for what it's worth, it's a new direction, and much of it feeds optimism.

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CNN reports on yaks "designed and cloned" in secretive, high-altitude labs in Tibet — 2.4 miles (4,000 meters) above sea level. They're a critical part of the local economy, and researchers "hope to create an 'elite' herd of super-yaks, healthier and more fertile than their predecessors." Both domestic yaks and their wild cousins have been facing threats for years, with some rare subspecies at risk of disappearing entirely. Authorities in the southwestern Chinese region have poured tens of millions of dollars into boosting the yak industry in recent years — and they hope cloning can help. The first yak clone came in July 2025, Chinese state media hailing it as a breakthrough achievement that combined cloning with gene selection. More clones were born this spring — and researchers are now aiming to create a herd of more than 100 "elite" yak clones by 2028, boasting desired traits like faster growth and larger size. "This shows the technology has moved from a one-time success to a stable, mass-scale application," said Fang Shengguo, the project's scientific lead and director of the State Conservation Center for Gene Resources of Endangered Wildlife, according to state-run news agency Xinhua... Many experts acknowledge there are legitimate arguments for using cloning in conservation, and for gene selection in farming. But the ethical waters are murky, and any such project should have high levels of public transparency and accountability, said Lisa Moses, a veterinarian and bioethicist at Harvard Medical School. So far, much of the yak cloning project remains mysterious, with information largely limited to glowing state-media coverage... [S]ome scientists say these projects reduce our sense of urgency toward fixing the environment, and that we can't simply churn out clones while the planet burns. To truly enact change, they say, we have to continue addressing the root cause of the problem — restoring degraded habitats, lowering carbon emissions, cracking down on poaching, and more. But for others, "there is a strong feeling ... that traditional conservation is essentially failing now," Moses said. "What we've been doing for the last 100 years to try to stave off ecological destruction is not working.... The argument is, we don't have a choice," she added. "If we want to try to do something that will actually make a difference, we need to use these technologies, specifically synthetic biology, to essentially override evolution and change the fitness of the species for the environment that they live in." "History is littered with good intentions in the environment gone wrong," Moses said, "and I would argue that these technologies have even more unknowns than ones that we previously employed." The article points out that the number of wild yaks "dropped more than a third in the last 30 years, with just 10,000 to 20,000 individuals left, according to the Wildlife Conservation Society." The yaks are threatened by climate change and habitat degradation, "with warmer temperatures bringing invasive plant species and increased competition for resources... in one of the world's most inhospitable terrains."

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Moonshot AI has temporarily paused new subscriptions for its Kimi K3 model after demand surged beyond the company's current capacity within days of the launch. The open-source Chinese AI model, described as one of the largest of its kind at 2.8 trillion parameters, has rattled U.S. rivals by beating Anthropic's Fable 5 and OpenAI's GPT-5.6 Sol in front-end coding tests. The Associated Press reports: "Kimi K3 has received far more love than we expected," Moonshot AI, which is Beijing-based, wrote in a X post late on Sunday. "Over the past 48 hours, demand has pushed close to the limits of our current capacity." Moonshot said that it's prioritizing existing subscribers and would be temporarily pausing new ones. "We're adding capacity as fast as we can and will reopen new subscription spots in batches," it added. The AI startup also posted a similar message on Chinese social media. "New model releases generally trigger massive interest, which can strain existing compute infrastructure," said Lian Jye Su, a chief analyst at the technology research and advisory group Omdia. "This does show Moonshot AI does not have sufficient compute chips to serve the current surge in demand." Su said that the key reason was more likely due to Moonshot not fully anticipating the surge in K3's popularity. K3 is "very demanding" in terms of compute requirements, he said, making compute allocation challenging and expensive.

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Xi Jinping used his first appearance at China's World AI Conference to promote a vision of low-cost, broadly accessible AI and call for international cooperation rather than technological rivalry. "AI development should not be a solo performance by a single country, but a symphony of international cooperation," he said. Bloomberg reports: His presence at the gathering, attended by scores of tech and government leaders, conveys a potent signal of China's ambitions to dominate a technological sphere with the potential to revolutionize industry and economies -- an effort that's shot to the top of the nation's agenda. Chinese models are winning over companies worldwide, with their share of US firms' AI usage nearing a record 60% on the popular marketplace OpenRouter. Behind the rhetoric, Beijing is grappling with the balance between openness and national security as models grow more capable. Chinese officials recently discussed with companies including Alibaba -- developer of the popular Qwen models -- how to mitigate the security risks posed by their increasingly powerful models, people familiar with the matter said. The talks are early, with no enforcement planned, but restricting foreign access to top models was among the options raised, the people said. Reuters previously reported that Beijing was weighing curbs on overseas access. Earlier today, the Beijing-based AI company "Moonshot" released a massive new model that reset the AI race overnight, immediately vaulting into the top tier of global AI, beating Anthropic's Fable 5 and OpenAI's GPT-5.6 Sol in front-end coding tests.

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In March, Anthropic's Claude "quietly deployed software to spy on China-based customers," reports the Washington Post — apparently to unmask Chinese rivals "suspected of hijacking its technology to make their own AI tools smarter." Last week Anthropic removed the spyware "after a software developer revealed its existence and privacy advocates criticized Anthropic, saying it had surveilled its own users." Anthropic's tracking code was designed in part to catch Chinese firms "distilling" its AI models, a technique that involves pressing a large, expensive AI system to serve as a tutor to a smaller, cheaper one. Asking the larger system huge numbers of questions — hundreds of thousands or more — generates responses that can be used to upgrade the power of the smaller one on the cheap. Distillation isn't illegal, and it has been used for years in the AI industry. But distillation without permission is against AI companies' rules, and, used effectively, is giving Chinese AI companies a major leg up, American AI companies say... Anthropic and ChatGPT-maker OpenAI have both accused Chinese AI companies of using this technique to build copycat AI models of their own. In a May blog post, Anthropic said that Chinese companies' use of distillation, along with evading U.S. export controls on high-end computer chips, has allowed them to "trail closely" behind U.S. models. But if these techniques can be blocked, it might be possible for the United States to "lock in a 12-24 month lead" on Chinese capabilities, the company said... This month, Anthropic said in a letter to U.S. senators that was obtained by The Post that it uncovered a campaign in which Chinese tech giant Alibaba's Qwen AI team used roughly 25,000 fraudulent accounts to generate more than 28.8 million exchanges with Claude to improve its own technology. In February, Anthropic made similar accusations against the Chinese firms Deepseek, Moonshot and MiniMax and said the campaigns were "growing in intensity and sophistication...." Anthropic and OpenAI have appealed to the U.S. government, arguing that distillation amounts to intellectual property theft that harms the U.S. in the geopolitical AI contest.... That Chinese AI labs are using U.S. models to improve their own technology appears beyond dispute. In a February 2025 study, researchers from China's Peking University and the state-funded Chinese Academy of Sciences developed methods to detect signs of distillation in leading large language models. They concluded that, with the exception of ByteDance's Doubao, most domestic models they tested showed substantial evidence of distillation, mostly drawing from U.S. models... In one set of intensive tests, a Qwen model misidentified itself as Claude nearly a third of the time, the Chinese researchers found. U.S. firms have also used distillation to piggyback on AI systems made by others. In 2024, OpenAI released a tool to make it easier for customers to distill its own models and produce data sets for AI training. SpaceX founder Elon Musk said in court testimony in May that his AI company xAI used distillation to train its models and that the technique is common throughout the industry. The article also notes that Anthropic "said it has banned nearly 700,000 accounts that were using Claude in China." But the article includes this quote from Kyle Chan, a fellow at the Washington-based Brookings Institution's China Center. "Anthropic's framing is that this is a geopolitical contest for basically the future of the world and freedom and democracy. It's that this is not just undercutting the U.S. commercially, but undercutting American strategic advantage in the most powerful technology we know today."

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Nobel-winning chemist Omar Yaghi is leaving UC Berkeley for China's Tsinghua University, where he will lead a new AI institute focused on accelerating the discovery of advanced materials. "Last week, Tsinghua University in Beijing welcomed Dr. Yaghi in an appointment ceremony, calling him one of the world's foremost chemists," reports The New York Times. "The university said he saw his new post as an opportunity 'not to slow down, not to repeat what has already been done, but to do science with more energy, more intensity, and more ambition than ever before.'" From the report: Dr. Yaghi was born in Amman, Jordan, to Palestinian refugees whose one-room home lacked electricity and running water. Early on, he became fascinated with a schoolbook's depiction of atomic building blocks. When he was 15, his father, a butcher, sent him to the United States. Last year, before flying to Stockholm to receive his Nobel Prize, Dr. Yaghi in an interview with The New York Times voiced concern about Mr. Trump's immigration policies, saying that they endanger the nation's system of universities, companies and governments that promote scientific excellence. "I think it's regrettable," he said of Mr. Trump's nationalism. "We have to know that people coming from different backgrounds improve the level for everybody involved," he added. "That's an amazing story. Great thinkers can improve not only the U.S. but the world." Dr. Yaghi joined the University of California, Berkeley, in 2012, and while there earned many awards for his scientific advances. He received his Nobel Prize for helping discover a world of chemistry in which molecular building blocks are assembled into structures that possess vast internal surface areas -- the largest of any known substance. His porous structures can act like sponges that readily absorb, store and release gases and vapors. He named them metal-organic frameworks. The metal atoms form an adjustable framework that can hold chemicals associated with life -- carbon atoms in particular. While deeply theoretical, the frameworks are so radical, innovative and flexible in nature that materials experts and companies foresee many commercial uses for them. The frameworks can, for instance, harvest water from desert air. In 2018, Dr. Yaghi's students at Berkeley tested the idea in the Mojave Desert in California, finding that a small passive harvester could each day produce nearly three cups of pure, drinkable water. The device is now nearing commercialization. In the interview with The Times, Dr. Yaghi credited the invention to his boyhood efforts to secure water for his family. The municipal pipes worked for only a few hours every week or two. That hardship, he added, shows how the diverse experiences of emigres can lead to unexpected breakthroughs. Dr. Yaghi has longstanding ties with Tsinghua University. In 2022, the Beijing school appointed him as an honorary professor and in that role he closely followed its work in chemistry, materials science and related disciplines. Now, on joining Tsinghua full time, Dr. Yaghi is being named as the head of a new A.I. institute for science research that will focus on the design and synthesis of new materials. Its underlying aim, the university said, is to "overcome the efficiency bottlenecks of traditional trial-and-error approaches" and shorten the usual cycles of discovery.

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An anonymous reader quotes a report from Reuters: Chinese startup DeepSeek is developing its own AI chip, according to three people familiar with the matter, a push that could reduce its reliance on Nvidia and Huawei chips, which it has depended on to train and run its globally popular models. The chip is designed for inference -- the stage of AI computing in which a trained model generates responses for users -- rather than for training new models, the sources said. If successful, DeepSeek's expansion into semiconductor development would mark a major strategic shift for a company widely hailed in China as the country's AI champion, potentially adding to challenges faced by Chinese tech giant Huawei.

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Chinese AI systems "have matched the performance of Anthropic's powerful model Mythos in some cybersecurity scenarios," reports the Wall Street Journal. They call it "a development poised to reset the global tech race and pressure the White House in its overhaul of U.S. AI policy." Security researchers said that a new AI model, released this month by China's Zhipu AI, also known as Z.ai, can match the latest U.S. models when it comes to finding security bugs, although it still lags behind Anthropic's and OpenAI's products in other tasks. Overall, the capability gap between top U.S. models and those built by Chinese companies has narrowed significantly, and use of Chinese AI systems has surged as businesses seek to rein in runaway costs. A host of companies, including Microsoft, are weighing how they can offer Chinese models on their platforms, a development that is set to alter the balance of power among tech companies... Unlike models from Anthropic or OpenAI, Zhipu's GLM-5.2 is open-weight. That means it can be downloaded and run on hardware operated by anybody and can be modified and used without supervision. Open-weight models are ideal for users who want unfettered access to systems they control, but they are also ideal for hackers, who can run them in the shadows. GLM-5.2 has ranked as one of the 10 most-used AI models, according to data from OpenRouter, a company that provides access to more than 400 AI models. In some benchmarking tests, according to the cybersecurity company Semgrep, GLM-5.2 bested Anthropic's Claude Opus 4.8 model, which was released in May. When given further instructions, Opus 4.8 and GLM-5.2 can match Mythos in bug-finding ability, according to researchers... "Banning Fable while selling chips China needs to develop its own version is a gift to China," said Saif Khan, a distinguished technology fellow at the Institute for Progress think tank who worked on export restrictions in the Biden administration. The U.S. needs to maximize the use of Mythos and comparable models to harden its cyber defenses while it can, he added. Among the Mythos 5 and Fable 5 users that had lost access before Friday's decision to restore Mythos 5 access for some trusted entities: the National Security Agency, which had been testing the tools and found them impressive in trials, according to people familiar with the matter... "It is incentivizing companies across the globe to use cheaper but very capable Chinese open-weight models, while at the same time undermining the U.S. AI industry," said Niels Provos, a researcher who led security teams at Google and Stripe. "I don't understand it." Thanks to long-time Slashdot reader schwit1 for sharing the article.

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Longtime Slashdot reader schwit1 shares a report from Autoblog: For years, the Chinese auto industry has employed a hostile price war to kneecap global competitors. Armed with massive state subsidies, cheap raw materials, and an aggressive "scale-first" business model, Chinese automakers flooded the market with electric vehicles priced so low that legacy manufacturers stood no chance to compete. How did they do it? Simple, they couldn't. They did it anyway. Reports from CarNewsChina show that Chinese automakers have been selling vehicles at a loss until a recent law passed by the Chinese government banned below-cost sales of new vehicles. During the ongoing sales slump in China caused by rolled-back subsidies and direct government intervention banning below-cost sales, the truth behind the rapid expansion of the Chinese auto industry has been exposed. "By the first quarter of 2026, China captured 32 percent of the global auto market, with its New Energy Vehicles (NEVs) controlling an incredible 61 percent of global share," the report notes. Yet that dominance has come at a steep cost: throughout 2025, "the profit margin for China's auto industry plunged to 4.4 percent and dropped further to a historic low of 3.2 percent in early 2026." "Gross profit, not net profit, per vehicle, plummeted to a mere $2,000. We can expect the net figure to be loss-making." Autoblog adds: "Data shows over 70 percent of Chinese car sales were loss-making. This left more than half of the country's auto industry in the red. Great Wall Motor (GWM) even saw net profits drop 17 percent despite steady revenue growth." China's EV price war has now hit a wall. New regulations are discouraging below-cost sales, rising material costs are forcing automakers to cut discounts and raise prices, and reduced tax incentives are weakening domestic demand. To sustain growth, manufacturers are increasingly turning to exports.

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