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  • Chip wars: How ‘chiplets’ are emerging as a core part of China’s tech strategy

    Chip wars: How ‘chiplets’ are emerging as a core part of China’s tech strategy

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    July 13 (Reuters) – The sale of struggling Silicon Valley startup zGlue’s patents in 2021 was unremarkable except for one detail: The technology it owned, designed to cut the time and cost for making chips, showed up 13 months later in the patent portfolio of Chipuller, a startup in China’s southern tech hub Shenzhen.

    Chipuller purchased what is referred to as chiplet technology, a cost efficient way to package groups of small semiconductors to form one powerful brain capable of powering everything from data centers to gadgets at home.

    The previously unreported technology transfer coincides with a push for chiplet technology in China that started about two years ago, according to a Reuters analysis of hundreds of patents in the U.S. and China and dozens of Chinese government procurement documents, research papers and grants, local and central government policy documents and interviews with Chinese chip executives.

    Industry experts say chiplet technology has become even more important to China since the U.S. barred it from accessing advanced machines and materials needed to make today’s most cutting edge chips, and now largely underpins the country’s plans for self-reliance in semiconductor manufacturing.

    “U.S.-China competition is on the same starting line,” Chipuller chairman Yang Meng said about chiplet technology in an interview with Reuters. “In other (chip technologies) there is a sizeable gap between China and the United States, Japan, South Korea, Taiwan.”

    Barely mentioned before 2021, Chinese authorities have highlighted chiplets more frequently in recent years, according to a Reuters review. At least 20 policy documents from local to central governments referred to it as part of a broader strategy to increase China’s capabilities in “key and cutting-edge technologies”.

    “Chiplets have a very special meaning for China given the restrictions on wafer fabrication equipment,” said Charles Shi, a chip analyst for brokerage Needham. “They can still develop 3D stacking or other chiplet technology to work around those restrictions. That’s the grand strategy, and I think it might even work.”

    Beijing is rapidly exploiting chiplet technology in applications as diverse as artificial intelligence to self-driving cars, with entities from tech giant Huawei Technologies to military institutions exploring its use.

    More major investments in the area are on the way, according to a review of corporate announcements.

    CHINA’S CHIPLET ADVANTAGE

    Chiplets, or small chips, can be the size of a grain of sand or bigger than a thumbnail and are brought together in a process called advanced packaging.

    It is a technology the global chip industry has increasingly embraced in recent years as chip manufacturing costs soar in the race to make transistors so small they are now measured in the number of atoms.

    Bonding chiplets tightly together can help make more powerful systems without shrinking the transistor size as the multiple chips can work like one brain.

    Apple’s high-end computer lines use chiplet technology, as do Intel and AMD’s more powerful chips.

    About a quarter of the global chip packaging and testing market sits in China, according to Dongguan Securities.

    While some say this gives China an advantage in leveraging chiplet technology, Chipuller chairman Yang cautioned the proportion of China’s packaging industry that could be considered advanced was “not very big”.

    Under the right conditions, chiplets that are personalised according to the needs of the customer can be completed quickly, in “three to four months, this is the unique advantage China holds,” according to Yang.

    Needham’s Shi said according to import data published by China’s customs agency, China’s purchase of chip packaging equipment soared to $3.3 billion in 2021 from its previous high of $1.7 billion in 2018, although last year it fell to $2.3 billion with the chip market downturn.

    Since early 2021 research papers on chiplets started surfacing by researchers of the Chinese military People’s Liberation Army and universities it runs, and state-run and PLA-affiliated laboratories are looking to use chips made using domestic chiplet technology according to six tenders published over the past three years.

    Public documents by the government also show millions of dollars worth of grants to researchers specializing in chiplet technology, while dozens of smaller companies have sprouted throughout China in recent years to meet domestic demand for advanced packaging solutions like chiplets.

    CHIPLETS ON THE TABLE

    Against the backdrop of escalating U.S.-China tension, Chinese company Chipuller acquired 28 patents either owned by zGlue or invented by people whose names are on zGlue’s patents, according to an analysis using IP management technology firm Anaqua’s Acclaim IP database.

    The acquisition was through a two-step transfer, first through British Virgin Islands-registered North Sea Investment Co Ltd, according to documents seen by Reuters and confirmed by Yang.

    The Committee on Foreign Investment in the United States (CFIUS), a powerful Treasury-led committee that reviews transactions for potential threats to U.S. security, did not respond to a Reuters request for comment about whether such sales would require their approval.

    CFIUS lawyers Laura Black at Akin’s Trade Group, Melissa Mannino at BakerHostetler and Perry Bechky at Berliner Corcoran & Rowe say patent sales alone would not necessarily give CFIUS authority over the deal, as it depends whether the assets purchased constitute a U.S. business.

    Representative Mike Gallagher, an influential lawmaker whose select committee on China has pressed the Biden administration to take tougher stances on China, told Reuters zGlue’s case highlights the “urgent need to reform CFIUS”.

    “(People’s Republic of China) entities should not be able to act with impunity to take advantage of distressed U.S. firms to transfer their IP to China,” he said in an emailed statement.

    Chipuller’s Yang said zGlue’s lawyer communicated with both CFIUS and the Department of Commerce to ensure the sale to North Sea would not fall foul of export controls.

    These discussions did not include mention of Chipuller or the possibility of a Chinese entity ending up in possession of the patents, according to a Chipuller spokesperson.

    “Everything was done very transparently and in accordance with (U.S.) law,” Yang said.

    Yang said he considered himself a founder of zGlue as he became an investor in the company in 2015, soon after its formation, and later became a director and chairman.

    CFIUS visited zGlue offices in 2018 to conduct an investigation because the company’s largest non-U.S. investor, Yang, was from China, the chairman said.

    “So we have spent a lot of time communicating with CFIUS,” Yang said, adding that Chipuller currently does not supply any Chinese military or U.S.-sanctioned entities.

    Chipuller isn’t the only firm with chiplet technology.

    Huawei, China’s tech and chip design giant that has been put on the U.S.’s most restricted list, has been actively filing chiplet patents.

    Huawei published over 900 chiplet-related patent applications and grants last year in China, up from 30 in 2017, according to Anaqua’s director of analytics solutions Shayne Phillips.

    Huawei declined to comment.

    Reuters identified over a dozen announcements over the past two years for new factories or expansions of existing ones from companies using chiplet technology in manufacturing across China’s tech sector, representing an investment totalling over 40 billion yuan.

    They include domestic giants TongFu Microelectronics (002156.SZ) and JCET Group (600584.SS), as well as fast-growing startups such as Beijing ESWIN Technology Group, which spent 5.5 billion yuan on a factory for its chiplet-focused subsidiary that began operating in April.

    One article published in May by an outlet run by China’s Ministry of Industry and Information Technology (MIIT) urged big Chinese tech firms the use of domestic packaging companies such as TongFu to help build China’s self-sufficiency in computing power.

    “Use Chiplet technology to break through the United States’ siege of my country’s advanced process chips,” it said.

    MIIT did not respond to a request for comment.

    Chipuller chairman Yang puts it this way: “Chiplet technology is the core driving force for the development of the domestic semiconductor industry,” he said on the company’s official WeChat channel. “It is our mission and duty to bring it back to China.”

    ($1 = 7.2205 Chinese yuan renminbi)

    Reporting by Jane Lanhee Lee and Eduardo Baptista; Additional reporting by Echo Wang and Stephen Nellis; editing by Kenneth Li, Brenda Goh and Lincoln Feast.

    Our Standards: The Thomson Reuters Trust Principles.

    Reports on global trends in computing from covering semiconductors and tools to manufacture them to quantum computing. Has 27 years of experience reporting from South Korea, China, and the U.S. and previously worked at the Asian Wall Street Journal, Dow Jones Newswires and Reuters TV. In her free time, she studies math and physics with the goal …

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  • Deadly Indian rail crash shifts focus from new trains to safety

    Deadly Indian rail crash shifts focus from new trains to safety

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    • India’s train network seeing rapid expansion, modernisation
    • Experts say focus on safety has not kept pace with expansion
    • Government says data shows no major accident for years

    NEW DELHI, June 3 (Reuters) – India’s vast rail network is undergoing a $30 billion transformation with gleaming new trains and modern stations but Friday’s deadly train accident shows more attention should be paid to safety, industry analysts said.

    At least 288 people were killed in the country’s worst rail accident in over two decades after a passenger train went off the tracks and hit another in the eastern state of Odisha.

    State monopoly Indian Railways runs the fourth largest train network in the world. It transports 13 million people every day and moved nearly 1.5 billion tonnes of freight in 2022.

    Long considered the lifeline of the world’s most populous country, the 170-year-old system has seen rapid expansion and modernisation under Prime Minister Narendra Modi’s push to boost infrastructure and connectivity in the fast-growing economy.

    This year, the government made a record 2.4-trillion-rupee ($30 billion) capital outlay for the railways, a 50% increase over the previous fiscal year, to upgrade tracks, ease congestion and add new trains.

    A new, semi-high-speed train built in India and called the “Vande Bharat Express”, or “Salute to India Express”, is showcased as evidence of this modernisation, with Modi himself flagging off the first journeys of many of the trains around the country.

    But Friday’s crash has come as a jolt to this makeover, experts said.

    “The safety record has been improving over the years but there is more work to do,” said Prakash Kumar Sen, head of the department of mechanical engineering at Kirodimal Institute of Technology in central India and lead author of a 2020 study on “Causes of Rail Derailment in India and Corrective Measures”.

    “Human error or poor track maintenance are generally to blame in such crashes,” Sen said.

    The railways have been introducing more and more trains to cope with soaring demand but the workforce to maintain them has not kept pace, he said.

    Workers are not trained adequately or their workload is too high, and they don’t get enough rest, Sen said.

    The east coast route on which Friday’s crash occurred, is one of the country’s oldest and busiest, as it also carries much of India’s coal and oil freight, he said.

    “These tracks are very old … the load on them is very high, if maintenance is not good, failures will happen,” Sen said.

    ‘GOOD SAFETY RECORD’

    Indian Railways maintains that safety has always been a key focus, and points to its low accident rate over the years.

    “This question (on safety) is arising because there has been one incident now. But if you see the data, you will see that there have been no major accidents for years,” a railways ministry spokesperson said.

    The number of accidents per million train kilometres, a gauge of safety, had fallen to 0.03 in fiscal 2021-22 from 0.10 in 2013-14, the spokesperson said.

    A 1-trillion-rupee, five-year safety fund created in 2017-18 has been extended for another five years from 2022-23, with a further 450 billion rupees of funding, after the first plan led to an “overall improvement in safety indicators”, he added.

    “Some malfunction has happened and that the inquiry will reveal,” he said, referring to Friday’s crash. “We will find out why it happened and how it happened.”

    Srinand Jha, an independent transport expert and author at the International Railway Journal, said the railways have been working on safety mechanisms such as anti-collision devices and emergency warning systems but have been slow to install them across the network.

    “They will always tell you that accidents are at a very manageable level because they talk about them in terms of percentages,” Jha said, adding that in recent years the focus has been more on new trains and modern stations and not as much on tracks, signalling systems and asset management.

    “This accident brings out the need to focus more on these aspects,” he said.

    Reporting by YP Rajesh
    Editing by Mark Potter

    Our Standards: The Thomson Reuters Trust Principles.

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  • U.S. FDA proposes shift to annual COVID vaccine shots

    U.S. FDA proposes shift to annual COVID vaccine shots

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    Jan 23 (Reuters) – The U.S. health regulator on Monday proposed one dose of the latest updated COVID-19 shot annually for healthy adults, similar to the influenza immunization campaign, as it aims to simplify the country’s COVID-vaccine strategy.

    The U.S. Food and Drug Administration also asked its panel of external advisers to consider the usage of two COVID vaccine shots a year for some young children, older adults and persons with compromised immunity.The regulator proposed the need for routine selection of variants for updating the vaccine, similar to the way strains for flu vaccines are changed annually, in briefing documents ahead of a meeting of its panel on Thursday.

    The FDA hopes annual immunization schedules may contribute to less complicated vaccine deployment and fewer vaccine administration errors, leading to improved vaccine coverage rates.The agency’s proposal was on expected lines, following its announcement of its intention for the update last month.

    A nurse fills up syringes with the coronavirus disease (COVID-19) vaccines for residents who are over 50 years old and immunocompromised and are eligible to receive their second booster shots in Waterford, Michigan, U.S., April 8, 2022. REUTERS/Emily Elconin

    The Biden administration has also been planning for a campaign of vaccine boosters every fall season.

    Currently, most people in the United States need to first get two doses of the original COVID vaccine spaced at least three to four weeks apart, depending on the vaccine, followed by a booster dose a few months later.

    Pfizer’s primary vaccine doses for children and people involve three shots, with the third a bivalent shot given about two months later.

    If the panel votes in favor of the proposal, Pfizer Inc (PFE.N) and Moderna Inc’s (MRNA.O) bivalent vaccines, which target both the Omicron and the original variants, would be used for all COVID vaccine doses, and not just as boosters.

    Reporting by Leroy Leo in Bengaluru; Editing by Shailesh Kuber and Shinjini Ganguli

    Our Standards: The Thomson Reuters Trust Principles.

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  • Omicron subvariant XBB.1.5 accounts for 43% of U.S. COVID cases – CDC

    Omicron subvariant XBB.1.5 accounts for 43% of U.S. COVID cases – CDC

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    Jan 13 (Reuters) – The fast-spreading Omicron subvariant XBB.1.5 is estimated to account for 43% of the COVID-19 cases in the United States for the week ended Jan. 14, data from the Centers for Disease Control and Prevention showed on Friday.

    The subvariant accounted for about 30% of cases in the first week of January, higher than the 27.6% the CDC estimated last week.

    XBB.1.5, which is related to Omicron, is currently the most transmissible variant. It is an offshoot of XBB, first detected in October, which is itself made from a combination of two other Omicron subvariants.

    The World Health Organization (WHO) said earlier this week XBB.1.5 may spur more COVID-19 cases based on genetic characteristics and early growth rate estimates.

    While it is unclear if XBB.1.5 can cause its own wave of global infections, experts say the current booster shots continue to protect against severe symptoms, hospitalization and death.

    WHO Director General Tedros Adhanom Ghebreyesus tweeted last week the subvariant has been on the rise globally and has been identified in over 25 countries.

    The rise in the new variant correlated with an uptick in COVID-19 cases in United States over the last six weeks.

    Increased prevalence of XBB.1.5 cases has eclipsed the previously dominant Omicron subvariant BQ.1.1 and BQ.1, which were offshoots of BA.5. The two strains together accounted for 44.7% of cases in the United States in the week ended Jan. 14, compared with 53.2% a week ago, the CDC said.

    Reporting by Khushi Mandowara and Sriparna Roy in Bengaluru; Editing by Maju Samuel and Shounak Dasgupta

    Our Standards: The Thomson Reuters Trust Principles.

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  • Southwest Airlines is sued for not providing refunds after meltdown

    Southwest Airlines is sued for not providing refunds after meltdown

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    NEW YORK, Jan 3 (Reuters) – Southwest Airlines (LUV.N) has been sued by a passenger who said it failed to provide refunds to passengers left stranded when an operational meltdown led the carrier to cancel more than 15,000 flights late last month.

    In a proposed class action filed on Dec. 30 in New Orleans federal court, Eric Capdeville accused Southwest of breach of contract after a fierce winter storm that swept across the United States shortly before Christmas upended the carrier’s schedule.

    Though Southwest has promised to reimburse passengers for expenses, Capdeville said it offered only a credit to him and his daughter after scrapping their Dec. 27 flight to Portland, Oregon from New Orleans and being unable to book alternative travel.

    Affected passengers “cannot use their airline tickets through no fault of their own and they are not getting the benefit of their bargain with defendant,” the complaint said.

    Capdeville, a Marrero, Louisiana resident, is seeking damages for passengers on Southwest flights canceled since Dec. 24, and who did not receive refunds or expense reimbursements.

    In a statement on Tuesday, Southwest had no comment on the lawsuit, but said it had “several high priority efforts underway to do right by our customers, including processing refunds from canceled flights, and reimbursing customers for expenses incurred as a result of the irregular operations.”

    Capdeville’s lawyer did not immediately respond to requests for additional comment.

    The meltdown at Dallas-based Southwest has been blamed on staffing shortages and outdated flight scheduling software.

    Southwest has said it would reimburse affected passengers for reasonable expenses such as last-minute hotel, rental car and dining costs, but it might take several weeks.

    The carrier largely restored normal operations on Dec. 30, several days after other airlines had recovered from the storm.

    In a Dec. 29 letter to Southwest Chief Executive Bob Jordan, Transportation Secretary Pete Buttigieg called the disruptions “unacceptable” and said the law requires refunds when carriers cancel flights unless passengers accept rebooking.

    The case is Capdeville v Southwest Airlines Co, U.S. District Court, Eastern District of Louisiana, No. 22-05590.

    Reporting by Jonathan Stempel in New York; Editing by Nick Zieminski

    Our Standards: The Thomson Reuters Trust Principles.

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  • U.S. FDA allows abortion pills to be sold at retail pharmacies

    U.S. FDA allows abortion pills to be sold at retail pharmacies

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    WASHINGTON, Jan 3 (Reuters) – The U.S. Food and Drug Administration (FDA) will allow retail pharmacies to offer abortion pills in the United States for the first time, the agency said on Tuesday, even as more states seek to ban medication abortion.

    The regulatory change will potentially expand abortion access as President Joe Biden’s administration wrestles with how best to protect abortion rights after they were sharply curtailed by the Supreme Court’s decision to overturn the landmark Roe v Wade ruling and the state bans that followed.

    Pharmacies can start applying for certification to distribute abortion pill mifepristone with one of the two companies that make it, and if successful they will be able to dispense it directly to patients upon receiving a prescription from a certified prescriber.

    The FDA had first said it would be making those changes in December 2021 when it announced it would relax some risk evaluation and mitigation strategies, or REMS, on the pill, that had been in place since the agency approved it in 2000 and were lifted temporarily in 2021 due to the COVID-19 pandemic.

    The changes included permanently removing restrictions on mail order shipping of the pills and their prescription through telehealth.

    The agency finalized the changes on Tuesday after reviewing supplemental applications from Danco Laboratories and GenBioPro, the two companies that make the drug in the United States.

    “Under the Mifepristone REMS Program, as modified, Mifeprex and its approved generic can be dispensed by certified pharmacies or by or under the supervision of a certified prescriber,” the agency said on its website on Tuesday.

    Mifeprex is the brand name version of mifepristone which, in combination with a second drug called misoprostol that has various uses including miscarriage management, induces an abortion up to 10 weeks into a pregnancy in a process known as medication abortion.

    Abortion rights activists say the pill has a long track record of being safe and effective, with no risk of overdose or addiction. In several countries, including India and Mexico, women can buy them without a prescription to induce abortion.

    “Today’s news is a step in the right direction for health equity,” Planned Parenthood President Alexis McGill Johnson said in a statement.

    “Being able to access your prescribed medication abortion through the mail or to pick it up in person from a pharmacy like any other prescription is a game changer for people trying to access basic health care,” Johnson added.

    NO EQUAL ACCESS

    The regulatory change will, however, not provide equal access to all people, GenBioPro, which makes the generic version of mifepristone, said in a statement.

    Abortion bans, some targeting mifepristone, have gone into effect in more than a dozen states since the U.S. Supreme Court overturned the constitutional right to terminating pregnancies when it scrapped the 1973 Roe v. Wade ruling last year.

    Women in those states could potentially travel to other states to obtain medication abortion.

    The president of anti-abortion group SBA Pro-Life America, Marjorie Dannenfelser, said the latest FDA move endangers women’s safety and the lives of unborn children.

    “State lawmakers and Congress must stand as a bulwark against the Biden administration’s pro-abortion extremism,” she said in a statement.

    FDA records show a small mortality case number associated with mifepristone. As of June 2021, there were reports of 26 deaths linked with the pill out of 4.9 million people estimated to have taken it since it was approved in September 2000.

    Retail pharmacies will have to weigh whether or not to offer the pill given the political controversy surrounding abortion, and determine where they can do so.

    A spokesperson for CVS Health (CVS.N) said the drugstore chain owner was reviewing the updated REMS “drug safety program certification requirements for mifepristone to determine the requirements to dispense in states that do not restrict the dispensing of medications prescribed for elective termination of pregnancy.”

    A spokesperson for Walgreens (WBA.O), one of the largest U.S. pharmacies, said the company was also reviewing the FDA’s regulatory change. “We will continue to enable our pharmacists to dispense medications consistent with federal and state law.”

    Reporting by Ahmed Aboulenein; Additional reporting by Eric Beech in Washington, Shivani Tanna, Rahat Sandhu, and Kanjyik Ghosh in Bengaluru; Editing by Himani Sarkar

    Our Standards: The Thomson Reuters Trust Principles.

    Ahmed Aboulenein

    Thomson Reuters

    Washington-based correspondent covering U.S. healthcare and pharmaceutical policy with a focus on the Department of Health and Human Services and the agencies it oversees such as the Food and Drug Administration, previously based in Iraq and Egypt.

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  • EXCLUSIVE Russian software disguised as American finds its way into U.S. Army, CDC apps

    EXCLUSIVE Russian software disguised as American finds its way into U.S. Army, CDC apps

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    LONDON/WASHINGTON, Nov 14 (Reuters) – Thousands of smartphone applications in Apple (AAPL.O) and Google’s (GOOGL.O) online stores contain computer code developed by a technology company, Pushwoosh, that presents itself as based in the United States, but is actually Russian, Reuters has found.

    The Centers for Disease Control and Prevention (CDC), the United States’ main agency for fighting major health threats, said it had been deceived into believing Pushwoosh was based in the U.S. capital. After learning about its Russian roots from Reuters, it removed Pushwoosh software from seven public-facing apps, citing security concerns.

    The U.S. Army said it had removed an app containing Pushwoosh code in March because of the same concerns. That app was used by soldiers at one of the country’s main combat training bases.

    According to company documents publicly filed in Russia and reviewed by Reuters, Pushwoosh is headquartered in the Siberian town of Novosibirsk, where it is registered as a software company that also carries out data processing. It employs around 40 people and reported revenue of 143,270,000 rubles ($2.4 mln) last year. Pushwoosh is registered with the Russian government to pay taxes in Russia.

    On social media and in U.S. regulatory filings, however, it presents itself as a U.S. company, based at various times in California, Maryland and Washington, D.C., Reuters found.

    Pushwoosh provides code and data processing support for software developers, enabling them to profile the online activity of smartphone app users and send tailor-made push notifications from Pushwoosh servers.

    On its website, Pushwoosh says it does not collect sensitive information, and Reuters found no evidence Pushwoosh mishandled user data. Russian authorities, however, have compelled local companies to hand over user data to domestic security agencies.

    Pushwoosh’s founder, Max Konev, told Reuters in a September email that the company had not tried to mask its Russian origins. “I am proud to be Russian and I would never hide this.”

    Pushwoosh published a blog post after the Reuters article was issued, which said: “Pushwoosh Inc. is a privately held C-Corp company incorporated under the state laws of Delaware, USA. Pushwoosh Inc. was never owned by any company registered in the Russian Federation.”

    The company also said in the post, “Pushwoosh Inc. used to outsource development parts of the product to the Russian company in Novosibirsk, mentioned in the article. However, in February 2022, Pushwoosh Inc. terminated the contract.”

    After Pushwoosh published its post, Reuters asked Pushwoosh to provide evidence for its assertions, but the news agency’s requests went unanswered.

    Konev said the company “has no connection with the Russian government of any kind” and stores its data in the United States and Germany.

    Cybersecurity experts said storing data overseas would not prevent Russian intelligence agencies from compelling a Russian firm to cede access to that data, however.

    Russia, whose ties with the West have deteriorated since its takeover of the Crimean Peninsula in 2014 and its invasion of Ukraine this year, is a global leader in hacking and cyber-espionage, spying on foreign governments and industries to seek competitive advantage, according to Western officials.

    Reuters Graphics

    HUGE DATABASE

    Pushwoosh code was installed in the apps of a wide array of international companies, influential non-profits and government agencies from global consumer goods company Unilever Plc (ULVR.L) and the Union of European Football Associations (UEFA) to the politically powerful U.S. gun lobby, the National Rifle Association (NRA), and Britain’s Labour Party.

    Pushwoosh’s business with U.S. government agencies and private companies could violate contracting and U.S. Federal Trade Commission (FTC) laws or trigger sanctions, 10 legal experts told Reuters. The FBI, U.S. Treasury and the FTC declined to comment.

    Jessica Rich, former director of the FTC’s Bureau of Consumer Protection, said “this type of case falls right within the authority of the FTC,” which cracks down on unfair or deceptive practices affecting U.S. consumers.

    Washington could choose to impose sanctions on Pushwoosh and has broad authority to do so, sanctions experts said, including possibly through a 2021 executive order that gives the United States the ability to target Russia’s technology sector over malicious cyber activity.

    Pushwoosh code has been embedded into almost 8,000 apps in the Google and Apple app stores, according to Appfigures, an app intelligence website. Pushwoosh’s website says it has more than 2.3 billion devices listed in its database.

    “Pushwoosh collects user data including precise geolocation, on sensitive and governmental apps, which could allow for invasive tracking at scale,” said Jerome Dangu, co-founder of Confiant, a firm that tracks misuse of data collected in online advertising supply chains.

    “We haven’t found any clear sign of deceptive or malicious intent in Pushwoosh’s activity, which certainly doesn’t diminish the risk of having app data leaking to Russia,” he added.

    Google said privacy was a “huge focus” for the company but did not respond to requests for comment about Pushwoosh. Apple said it takes user trust and safety seriously but similarly declined to answer questions.

    Keir Giles, a Russia expert at London think tank Chatham House, said despite international sanctions on Russia, a “substantial number” of Russian companies were still trading abroad and collecting people’s personal data.

    Given Russia’s domestic security laws, “it shouldn’t be a surprise that with or without direct links to Russian state espionage campaigns, firms that handle data will be keen to play down their Russian roots,” he said.

    ‘SECURITY ISSUES’

    After Reuters raised Pushwoosh’s Russian links with the CDC, the health agency removed the code from its apps because “the company presents a potential security concern,” spokesperson Kristen Nordlund said.

    “CDC believed Pushwoosh was a company based in the Washington, D.C. area,” Nordlund said in a statement. The belief was based on “representations” made by the company, she said, without elaborating.

    The CDC apps that contained Pushwoosh code included the agency’s main app and others set up to share information on a wide range of health concerns. One was for doctors treating sexually transmitted diseases. While the CDC also used the company’s notifications for health matters such as COVID, the agency said it “did not share user data with Pushwoosh.”

    The Army told Reuters it removed an app containing Pushwoosh in March, citing “security issues.” It did not say how widely the app, which was an information portal for use at its National Training Center (NTC) in California, had been used by troops.

    The NTC is a major battle training center in the Mojave Desert for pre-deployment soldiers, meaning a data breach there could reveal upcoming overseas troop movements.

    U.S. Army spokesperson Bryce Dubee said the Army had suffered no “operational loss of data,” adding that the app did not connect to the Army network.

    Some large companies and organizations including UEFA and Unilever said third parties set up the apps for them, or they thought they were hiring a U.S. company.

    “We don’t have a direct relationship with Pushwoosh,” Unilever said in a statement, adding that Pushwoosh was removed from one of its apps “some time ago.”

    UEFA said its contract with Pushwoosh was “with a U.S. company.” UEFA declined to say if it knew of Pushwoosh’s Russian ties but said it was reviewing its relationship with the company after being contacted by Reuters.

    The NRA said its contract with the company ended last year, and it was “not aware of any issues.”

    Britain’s Labour Party did not respond to requests for comment.

    “The data Pushwoosh collects is similar to data that could be collected by Facebook, Google or Amazon, but the difference is that all the Pushwoosh data in the U.S. is sent to servers controlled by a company (Pushwoosh) in Russia,” said Zach Edwards, a security researcher, who first spotted the prevalence of Pushwoosh code while working for Internet Safety Labs, a nonprofit organization.

    Roskomnadzor, Russia’s state communications regulator, did not respond to a request from Reuters for comment.

    FAKE ADDRESS, FAKE PROFILES

    In U.S. regulatory filings and on social media, Pushwoosh never mentions its Russian links. The company lists “Washington, D.C.” as its location on Twitter and claims its office address as a house in the suburb of Kensington, Maryland, according to its latest U.S. corporation filings submitted to Delaware’s secretary of state. It also lists the Maryland address on its Facebook and LinkedIn profiles.

    The Kensington house is the home of a Russian friend of Konev’s who spoke to a Reuters journalist on condition of anonymity. He said he had nothing to do with Pushwoosh and had only agreed to allow Konev to use his address to receive mail.

    Konev said Pushwoosh had begun using the Maryland address to “receive business correspondence” during the coronavirus pandemic.

    He said he now operates Pushwoosh from Thailand but provided no evidence that it is registered there. Reuters could not find a company by that name in the Thai company registry.

    Pushwoosh never mentioned it was Russian-based in eight annual filings in the U.S. state of Delaware, where it is registered, an omission which could violate state law.

    Instead, Pushwoosh listed an address in Union City, California as its principal place of business from 2014 to 2016. That address does not exist, according to Union City officials.

    Pushwoosh used LinkedIn accounts purportedly belonging to two Washington, D.C.-based executives named Mary Brown and Noah O’Shea to solicit sales. But neither Brown nor O’Shea are real people, Reuters found.

    The one belonging to Brown was actually of an Austria-based dance teacher, taken by a photographer in Moscow, who told Reuters she had no idea how it ended up on the site.

    Konev acknowledged the accounts were not genuine. He said Pushwoosh hired a marketing agency in 2018 to create them in an attempt to use social media to sell Pushwoosh, not to mask the company’s Russian origins.

    LinkedIn said it had removed the accounts after being alerted by Reuters.

    Reporting by James Pearson in London and Marisa Taylor in Washington
    Additional reporting by Chris Bing in Washington, editing by Chris Sanders and Ross Colvin

    Our Standards: The Thomson Reuters Trust Principles.

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  • Swiss National Bank monitoring Credit Suisse situation – Maechler

    Swiss National Bank monitoring Credit Suisse situation – Maechler

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    ZURICH, Oct 5 (Reuters) – The Swiss National Bank (SNB) is following the situation at Credit Suisse (CSGN.S) closely, SNB Governing Board member Andrea Maechler told Reuters on Wednesday.

    Switzerland’s second-biggest bank saw its shares slide by as much as 11.5% and its bonds hit record lows on Monday, before clawing back some of the losses, amid concerns about its ability to restructure its business without asking investors for more money. read more

    “We are monitoring the situation,” Maechler said on the sidelines of an event in Zurich. “They are working on a strategy due to come out at the end of October.”

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    The SNB has declined to comment in the past about Credit Suisse, which has said it has a strong capital base and liquidity. It is due to announce details of a restructuring plan along with third-quarter results on Oct. 27.

    In July, Credit Suisse announced its second strategy review in a year and replaced its chief executive, bringing in restructuring expert Ulrich Koerner to prune its investment banking arm and cut more than $1 billion in costs. read more

    The bank is considering measures to scale back its investment bank into a “capital-light, advisory-led” business, and is evaluating strategic options for the securitised products business, Credit Suisse has said.

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    Reporting by John Revill
    Editing by Michael Shields and Mark Potter

    Our Standards: The Thomson Reuters Trust Principles.

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  • White House signals Biden may address filibuster reform soon

    White House signals Biden may address filibuster reform soon

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    WASHINGTON, Oct 22 (Reuters) – The White House on Friday offered a strong signal that it is preparing to seek changes soon to a long-standing Senate tradition that has allowed Republicans to block voting rights legislation and other major Democratic initiatives.

    Democratic President Joe Biden, who spent 36 years in the Senate, has previously opposed any significant overhaul of a Senate rule known as the filibuster, which requires 60 of the 100 senators to agree on most legislation. read more

    His opposition has angered Democrats and activists who say an arcane rule should not stand in the way of important issues such as voting rights and immigration.

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    “I expect you’ll hear more from the president about it in the coming weeks,” White House spokesperson Jen Psaki told reporters on Friday about the filibuster. Asked what more he would want to address with filibuster reform beyond voting rights, Psaki said to “stay tuned.”

    During a televised town hall event on Thursday, Biden said the Senate should “fundamentally alter” the filibuster process, but did not offer specifics on how.

    The White House’s potential shift on the issue comes after the latest successful effort by Republicans to block Democratic legislation aimed at thwarting restrictive new voting laws enacted in Republican-led states. On Wednesday, Republicans used the filibuster to block beginning a debate on the measure.

    When Republicans control the White House and the Senate, Democrats have used the filibuster as well.

    Psaki suggested Biden had lost patience with Republican resistance to Democrats’ ideas on voting rights, saying the president is “frustrated” and “disappointed.”

    “When a hand has been extended by Democrats to work together to protect the fundamental right, Republicans have not only recoiled, they have blocked the … ability to make any semblance of progress,” Psaki said.

    While Democrats are united on voting rights, they are not unified in whether to overhaul the filibuster. U.S. Senator Joe Manchin, a moderate Democrat from West Virginia, has publicly opposed eliminating the filibuster, even for specific issues.

    With a 50-50 split in the Senate, Democrats would need all of its members to support changes.

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    Reporting by Jeff Mason and Jarrett Renshaw; additional reporting by Steve Holland; Editing by Jonathan Oatis and Bill Berkrot

    Our Standards: The Thomson Reuters Trust Principles.

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