"We can’t get enough components, we can’t get containers, costs have been driven up tremendously." — Christopher Tse, CEO of Musical Electronics, which makes consumer products from Bluetooth speakers to Rubik’s Cubes, on the supply chain disruption.
Biden urges CEOs to improve US cybersecurity after attacks
President Joe Biden urged a group of CEOs to help improve cybersecurity across the nation’s critical infrastructure and economy, citing a lack of trained professionals to adequately protect the US.
“Our skilled cybersecurity workforce is not growing fast enough to keep pace,” Biden said on Aug 25 at a meeting with CEOs including Apple’s Tim Cook, Alphabet’s Sundar Pichai, Amazon.com’s Andy Jassy, Microsoft’s Satya Nadella, and JPMorgan Chase & Co’s Jamie Dimon.
The meeting follows massive cyber and ransomware attacks over the past year on critical infrastructure, including that of Colonial Pipeline Co and JBS, as well as software and cloud providers such as Microsoft and SolarWinds Corp, which have largely been perpetrated by cyber groups based in Russia and China.
Biden called the meeting to discuss how industry and the federal government can partner to improve cybersecurity following these attacks. The president plans to urge the CEOs to make commitments on workforce development and improvements to cybersecurity in their sectors, according to a senior administration official.
As part of the meeting, the White House is announcing new public-private initiatives and cybersecurity workforce training efforts to fill the approximately 500,000 open jobs in the industry.
The talent shortfall in cybersecurity spans industries. That means gaps exist in all 16 critical infrastructure sectors, like energy, health care and manufacturing — and that companies in those sectors lack the necessary personnel to adequately defend computer networks against cyberattacks, said Simone Petrella, CEO of the cybersecurity training firm CyberVista.
The cybersecurity talent portal CyberSeek — a project support by the National Initiative for Cybersecurity Education — estimates more than 464,000 cybersecurity job opening between April 2020 and March 2021.
Biden’s administration continues to point to cybersecurity as a priority. Among the actions the White House has taken this year is an executive order directing federal agencies to boost security protocols and mandating cyber incident reporting from large pipeline companies. But more collaboration is needed between private companies and government, the official said, adding that the private sector in many cases has more authority or influence than the government to make necessary cybersecurity changes.
The meeting will focus on ransomware, the root causes of malicious cyber activity, and how to ensure that cybersecurity is baked into technology sold by industry from the start, according to the official. Other participants include chief executives from IBM and ADP as well as from Bank of America. — Bloomberg
Western Digital in talks to combine with Japan’s Kioxia
Western Digital Corp is in talks to merge with Japan’s Kioxia Holdings Corp in a deal that could unite two technology storage providers, according to a person familiar with the matter.
A deal, which could be worth more than US$20 billion ($27 billion), may be reached by mid-September at the earliest if negotiations are successful, the person said, asking not to be identified because the matter is private. Talks could still fall apart and Kioxia, which is closely held, is still also pursuing an IPO, the person added.
A spokesman for Kioxia said the company is preparing for an IPO at the right time and declined to comment on “market rumours and speculation.” A representative for Western Digital declined to comment.
Western Digital shares rose 7.8% in New York after the talks were reported by the Wall Street Journal, giving the company a market value of about US$20 billion. Toshiba Corp, which spun off Kioxia in 2018 and remains a large shareholder, gained 2.1% in Tokyo.
A combination of the long-time joint venture partners would create a bigger competitor for Samsung Electronics Co in the market for memory chips used as storage in portable devices and computers.
Toshiba, the inventor of flash memory, sold a majority stake in Kioxia in 2018. That type of chip is taking over for data storage from hard disk drives, Western Digital’s main product.
Kioxia and Western Digital had combined sales of about US$17 billion in flash memory chips last year, according to IDC Corp. Samsung had US$18.6 billion. Industry sales jumped 37% in 2020.
Western Digital has provided Kioxia with funds for capital expenditure and research and development in return for production out of its Japanese partner’s plants. The relationship has been fractious in the past involving a bitter dispute when Western Digital, under a previous chief executive officer, tried to acquire Kioxia when Toshiba was suffering financial difficulties as a result of its nuclear power division’s troubles.
Kioxia filed for an IPO last summer in which shareholders including Toshiba and Bain Capital were planning to sell shares. — Bloomberg
Bank of Korea hikes rate as growth seen weathering delta hit
South Korea raised interest rates on Aug 26, becoming the first major Asian economy to start exiting record-low borrowing costs as financial risks are seen to pose a bigger threat to the economy than the latest virus wave.
In a statement released after a quarter-percentage-point hike to 0.75%, the Bank of Korea (BOK) said it will “gradually adjust” the degree of support for the economy, taking into account Covid-19 developments, financial imbalances and other factors. The central bank kept its growth forecast for this year unchanged from May, but raised its inflation outlook above target to 2.1%.
The move shows the focus of monetary policy in Korea has shifted from propping up the economy to curbing a debt-driven asset bubble that risks spiralling out of control. How the BOK’s tightening move affects growth and markets will be closely watched by other central banks seeking to chart a way out of pandemic-era stimulus.
The BOK forecast the economy will expand 4% this year, suggesting it sees limited economic damage from the recent surge in infections and strict curbs on activity. Its step toward normalization contrasts with the hesitancy of the Reserve Bank of New Zealand to increase borrowing costs last week as the country headed back into a lockdown.
“The BOK just couldn’t wait any longer when it has consistently stressed its focus on household debt and financial imbalances,” said Kim Sanghoon, a fixed-income strategist at KB Securities Co. “It’s not like the economy is plunging amid the latest virus wave, but household debt is something that can’t be ignored any more.”
Recent data suggest the Korean economy has largely held up amid a surge in local and global delta cases. Exports have rallied so far in August, business confidence has strengthened and optimism still prevails among consumers. The BOK expects consumption to improve as vaccination picks up and the extra budget offers support, the statement showed. — Bloomberg
Photo: Bloomberg
