Tag Archives: sale

US and China Reach “Final Agreement” on TikTok Sale, Says Treasury Secretary

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US Treasury Secretary Scott Bessent announced on Sunday that the details regarding the transfer of TikTok’s US operations to a new owner have been finalized between the US and China.

“We have reached a conclusive agreement regarding TikTok,” Bessent stated. said, during an appearance with Margaret Brennan on CBS’s Face the Nation. He referred to Donald Trump and China’s Xi Jinping, mentioning: “With discussions scheduled for Thursday in South Korea, the two leaders will convene in Madrid, and we believe all details have been finalized, which will complete the agreement.”

While Bessent did not share specifics of the transaction, he noted it is part of a larger trade deal framework that both nations will discuss when President Trump and President Xi Jinping meet in the coming days.

Bessent’s remarks followed President Trump’s signing of a presidential order on September 25th, which allowed for a new ownership agreement in the US involving a majority of US investors.

“I am not involved in the commercial details of this transaction,” Bessent remarked. “My focus was to secure approval from the Chinese side for the transaction, which I believe we have effectively achieved over the past two days.”


Barron Trump, President Trump’s 19-year-old son, proposed that the president nominate former social media producer Jack Advent as a director. President Trump has indicated that the new US investors include prominent conservative media figures like Rupert Murdoch and Larry Ellison.

During his first presidential term, Trump threatened to ban TikTok in 2020 in retaliation for China’s handling of the coronavirus pandemic.

Congress enacted a ban on the app during Trump’s administration, which was signed into law by Joe Biden in April 2024. The agreement was set to take effect on January 20, 2025, but was extended four times by Trump while his administration negotiated the ownership transfer.

The estimated value of this contract is $14 billion, with US and international investors expected to hold about 65% of the company’s shares, while ByteDance and Chinese investors will maintain less than 20%.

Trump’s Executive Order grants new investors, including six of the seven board seats, oversight of the app’s algorithms.

Trump arrived in Malaysia on Sunday to participate in the Association of Southeast Asian Nations summit as part of a five-day tour of the region, and a direct meeting between Trump and Xi is planned for Thursday.

The two leaders are expected to discuss U.S. agricultural exports, the trade balance, and issues related to the fentanyl crisis, which were cited as reasons for Trump’s 20% tariffs on Chinese imports.

Source: www.theguardian.com

Trump Sparks Concerns Over Nvidia’s Potential Sale of Advanced AI Chips in China

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Donald Trump has indicated that Nvidia can sell more advanced chips in China than is currently allowed.

During a Monday briefing, Trump addressed the recent development, revealing his groundbreaking agreements with NVIDIA and AMD. He has authorized an export license allowing the sale of previously restricted chips to China, with the US government receiving 15% of the sales revenue. The US president defended the deal after analysts labeled it as potentially resembling “shakedown” payments or unconstitutional export taxes. He expressed hope for further negotiations regarding a more advanced Nvidia chip.

Trump mentioned that Nvidia’s latest chip, Blackwell, would not be available for trade, but he is considering trading “a slightly negatively impacted version of Blackwell,” which could see a downgrade of 30-50%.

“I believe he’ll be back to discuss it, but it will be a significant yet unenhanced version,” he remarked, referring to Nvidia’s CEO Jensen Huang, who has had multiple discussions with Trump about China’s export limits.



Huang has yet to comment on the revenue-sharing agreement pertaining to the sales of Nvidia’s H20 chips and AMD’s Mi308 chips in China.

The H20 and Mi308 chips were prohibited from being sold to China in April, even though the low-power H20 was specially designed to meet the restrictions set by the Biden administration. Nvidia previously stated last month that they hoped to receive clearance to resume shipments soon.

Nvidia’s impact is a major driver of the AI boom, garnering significant interest from both China and the US, which has led to heightened scrutiny among analysts in Washington and concerns from Chinese officials.

“I’m worried about reports indicating the US government might take revenue from sales of chips akin to advanced H20 sales,” he told the Financial Times.

Trump justified the agreement on Monday: “I stated, ‘Listen, I want 20% if I approve this for you,'” emphasizing that he hasn’t received any personal money from the deal. He suggested that Huang provided 15% as part of the agreement.

“I permitted him only for the H20,” Trump clarified.

He referred to the H20 as an “outdated” chip that is “already in a different form for China.”

However, Harry Cleja, research director at the Washington office of the Carnegie Mellon Institute of Strategic Technology, labeled the H20 as a “second tier” AI chip.

“The H20 is not the premier training chip available, but the type of computing dominating AI tasks today—particularly the ‘inference’ model and ‘agent’ products—are what the field is focused on,” Kresja told the Guardian, referring to systems employing advanced inference to autonomously resolve complex issues.

“Lifting H20 export restrictions undoubtedly provides Beijing with the necessary tools to compete in the AI realm.”

The US government has been attempting for several years to defend national security, especially concerning artificial intelligence development and the provision of technology that could be weaponized.

China’s Foreign Ministry remarked on Monday that the country has consistently articulated its stance on US chip exports, accusing Washington of utilizing technology and trade measures to “maliciously suppress and hinder China.”

Revenue-sharing contracts are quite rare in the US, reflecting Trump’s latest interference in corporate decisions after pressuring executives to reinvest in American manufacturing. He has requested the resignation of Intel’s new CEO, Lip-Bu Tan, regarding its connections with Chinese companies.

Trump has also suggested imposing 100% tariffs on the global semiconductor market, exempting businesses that commit to investing in the US.

Taiwan’s TSMC, a leading semiconductor manufacturer, announced plans in April to expand its US operations through a $100 million investment. However, foreign investments of this magnitude require government approval from Taiwan.

The Guardian confirmed that TSMC has yet to apply for this approval. The company has not responded to requests for comment.

Source: www.theguardian.com

Niger Probes $5 Million Sale of Earth’s Largest Martian Rock

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Dakar, Senegal – the largest meteorite discovered on Earth – a 54-pound (25 kilograms) rock that fetched over $5 million at a New York auction last month, setting a world record.

However, in a West African nation where rusty red rocks have been excavated from the Sahara desert, authorities have initiated an investigation into what they describe as “illegal international trafficking,” suggesting it may have been smuggled from the country.

Here’s what you should know about meteorites and legal controversies:

How was it discovered

According to Sotheby’s, the rock, designated NWA 16788, was dislodged from the surface of Mars by a massive asteroid collision and journeyed 140 million miles (225 million kilometers) to Earth.

It was uncovered in the Sahara, northwest Niger by an unnamed meteorite hunter in November 2023, as per the auction house’s report. The identities of buyers remain undisclosed.

In the arid regions of the Sahara like Niger, meteorite hunting is on the rise. While meteorites can fall anywhere on Earth, the Sahara has emerged as a prime location for their discovery due to its climate, which is conducive to conservation.

Hunters often seek space rocks to sell to collectors and scientists. The most coveted and valuable meteorites are from Mars and the Moon.

As reported by the Heritage Academic Journal, the rock was sold to international dealers and eventually made it to a private gallery in Italy. Last year, a team of scientists from the University of Florence examined the rock to determine its structure and origins before it fell to Earth.

The meteorite was briefly showcased in Rome before appearing at the New York auction last month.

Why Niger is investigating

Following the sale, Niger raised concerns about how the meteorite was made available for auction.

Last month, the Niger government launched an inquiry into the discovery and sale of meteorites, stating that it resembles “illegal international trafficking.”

Last week, President Abdullah Hamanetiani halted the export of precious stones, semi-precious stones, and meteorites to ensure proper traceability.

In a statement to the Associated Press, Sotheby’s maintained that the meteorite was exported from Niger and transported in line with all applicable international regulations.

“In selling this item, all necessary documentation was obtained at each stage of the journey, consistent with best practices and the requirements of the involved countries,” the statement indicated.

Niger authorities did not respond to inquiries from the Associated Press.

What international law says

Patti Garstenblis, a cultural heritage attorney and expert on illegal trade, noted that rare minerals like meteorites are recognized as cultural property under the UNESCO Cultural Property Treaty, which both Niger and the United States have ratified.

However, Garstenbliss pointed out that Niger needs to establish ownership and that the meteorite was stolen.

“I doubt Niger could reclaim the meteorite if it wasn’t stolen and was properly declared upon entering the U.S.,” she stated to the Associated Press.

Paleontologist Paul Sereno, who has spent years uncovering dinosaur fossils in Niger’s Sahara, is advocating for the return of the nation’s cultural and natural heritage, including meteorites.

“When laws clearly state that rare minerals like meteorites are cultural artifacts, unique and valuable items cannot just be claimed without consideration for the country,” he told the AP.

“We are no longer in a colonial era,” he added.

In certain countries, including Morocco, a major source of meteoritic specimens for international markets, if an object is found on their territory, compensation is required. Nonetheless, due to the expansive desert regions and the informal trading networks, enforcement remains challenging.

Source: www.nbcnews.com

OpenAI Discusses Share Sale Talks to Determine Pricing for Elon Musk’s SpaceX

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OpenAI is reportedly discussing the sale of shares held by current and former employees, a move that could value the company at an astonishing $50 trillion, surpassing Elon Musk’s SpaceX.

As the deal advances, the valuation of the ChatGPT developer is expected to rise by nearly two-thirds from its current $300 million (£22.5 billion).

Currently, Musk’s Rocket Company is valued at $3.5 trillion and is nearing a price tag of $400 million with new investments.

According to Bloomberg, which first reported on the talks, existing investors such as Thrive Capital approached OpenAI about acquiring shares from employees. Other backers of the San Francisco-based OpenAI include SoftBank, which led the $300 million funding round, and Microsoft.

Both OpenAI and Thrive Capital have chosen not to comment on the matter.

Tech startups frequently organize employee stock sales to boost motivation among staff and attract investors.

OpenAI faces competitive challenges from Mark Zuckerberg’s Meta in retaining key personnel, and employee stock sales could serve as incentives for retention. Facebook’s parent company has been actively recruiting OpenAI employees to develop its “Superintelligence” unit.

OpenAI CEO Sam Altman noted that despite Meta offering a staggering $100 million (£74 million) signing bonus, “none of our top talent” has left.

Another competitor, HumanAI, founded by former OpenAI employees, is reportedly in talks to raise funds that would value the company at $170 billion. Funding is crucial for AI startups aiming to leverage expensive computer chips and data center resources to train more advanced models that enhance their products.

This report emerges as Altman mentioned that OpenAI is set to unveil an upgraded version of its ChatGPT model. He shared a screenshot on Sunday that appeared to showcase the latest AI model, GPT-5, on social media.

OpenAI also launched two new open models recently, which intensify competition against Meta and China’s DeepSeek, offering open AI models that can be freely downloaded and customized.

“This model is the outcome of a multi-billion dollar research initiative aimed at making AI accessible to the widest audience possible,” Altman stated.

However, OpenAI primarily operates on a “closed” model, meaning you’ll need to pay for an enhanced version of ChatGPT or subscribe to integrate that model into your business.

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OpenAI operates as a profitable nonprofit organization and is still engaged in negotiations to transition into a for-profit model, amidst ongoing tensions with Microsoft.

In a June interview with the New York Times podcast, Altman acknowledged, “There certainly are points of tension in deep partnerships, and we are experiencing some of that.”

In March, a U.S. judge dismissed a request for a preliminary injunction by Musk to halt the shift toward an open commercial model. Musk, co-founder of OpenAI in 2019, left the organization the same year, criticizing it for deviating from its founding mission of advancing artificial intelligence for the greater good, rather than for profit.

Additionally, OpenAI is advancing its hardware segment after acquiring the startup IO, founded by iPhone designer Sir Jony Ive, in a $6.4 billion deal. Altman reportedly informed employees that OpenAI is developing a 100 million AI “people” intended to become integral to users’ daily experiences.

Although Altman describes the prototype as “the most exciting technology the world has ever seen,” mass production of the unknown IO device isn’t expected to commence until 2027.

Source: www.theguardian.com

Trump Announces Talks with China to Finalize TikTok Sale, Claims Deal is “Nearly Complete”

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Donald Trump announced plans to begin discussions with China regarding the TikTok deal on either Monday or Tuesday.

The US President indicated that the US has “mostly” finalized a deal to sell the TikTok short-video application.

“I think we’ll start on Monday or Tuesday… I may talk to President Xi or one of his representatives, but we’re mostly set with the deal,” Trump shared with reporters on Air Force One last Friday.

Trump also mentioned the possibility of visiting Xi Jinping in China, or that Chinese officials might come to the US.

Last month, both leaders exchanged invitations to visit each other’s countries.


Last month, Trump extended the deadline for the China-based ordinance to September 17th, concerning the sale of TikTok’s US assets, which is a popular social media platform with 170 million users in the United States.

Earlier this spring, there was a deal in motion to create a new US-based company for TikTok, predominantly owned by American investors, but it was stalled after China indicated disapproval, coinciding with the announcement of high tariffs on Chinese goods.

Trump stated on Friday that the US needs to secure a transaction that has likely been authorized by China.

When asked about his confidence in Beijing’s willingness to finalize the deal, he responded: “I’m not confident, but I think so. President Xi and I have a good relationship. I believe that benefits them.”

Trump’s June extension marks his third executive order aimed at delaying the ban or sale of TikTok, providing an additional 90 days to identify potential buyers or risk the app being banned in the US.

His first executive order, which granted TikTok a temporary respite, was issued on his first day in office, just three days after the Supreme Court upheld the ban. He issued a second executive order in April, with deadlines for sale or ban initially set for June 19th. TikTok will now be available until September.

In a statement released on the same day, TikTok expressed gratitude towards Trump and J.D. Vance, saying, “We appreciate President Trump’s leadership,” and noted that TikTok seeks to reach an agreement to “continue collaborating with Vice President Vance’s office.”

Democratic Senator Mark Warner, vice-chairman of the Senate Intelligence Committee, accused Trump of sidestepping the law in an effort to enforce it.

With a report by Dara Kerr

Source: www.theguardian.com

Request to Dissolve Google’s Advertising Technology Business Follows Chrome Sale Motion

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On Friday, the US government demanded that Google divest its highly lucrative advertising technology division. This follows a judge’s finding that the tech giant is responsible for a second illegal monopoly in just a year.

U.S. government attorney Julia Turber Wood stated in federal court in Virginia, “We have a defendant who has discovered a way to protest. Maintaining the monopoly of repeat offenders is not a viable solution,” she added.

This marks the second request from the US government, amidst another suit regarding Google’s premier search engine, which also seeks to address sales involving the Chrome browser.

The US government specifically pointed out that Google dominates the market for publishing banner advertisements on websites, impacting a wide range of creators and small news outlets.

A second phase of the Virginia court hearing is set for September, where discussions will focus on modifying the advertising landscape per the judge’s ruling.

During the initial phase of last year’s trial, plaintiffs alleged that the majority of websites utilize Google’s Ad software products.

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District Court Judge Leonie Brinkema largely agreed with the rationale and found that Google has established an illegal monopoly over the advertising software and tools utilized by publishers, albeit partially dismissing claims concerning tools used by advertisers.

The US government indicated it would leverage this trial to motivate Google to divest its exchange operations with ad publishers, asserting that it cannot be relied upon to change its practices.

“Behavioral modification is not enough since it won’t stop Google from discovering new methods of exerting control,” stated Tarver Wood.

Google has countered the suggestion of agreeing to a binding commitment to enhance transparency with advertisers and publishers on the AD Tech platform. However, Google’s attorney Karen Dunn acknowledged the “trust issues” raised in the case and expressed willingness to accept oversight to ensure compliance with the judge’s order. Google also contested the proposed divestiture as inappropriate, which Judge Brinkema quickly dismissed as a viable debate.

The judge encouraged both parties to seek mediation, stressing that a negotiated settlement is far more efficient and cost-effective than conducting a prolonged trial.

Source: www.theguardian.com

Elon Musk confirms sale of X to his AI startup Xai

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Elon Musk announced on Friday that his social media company, X, sold its artificial intelligence startup, Xa, in a rare financial arrangement within the business empire of the world’s wealthiest man.

The total stock trading valued Xai at $80 billion and X at $30 billion. X’s price fell from the $44 billion it paid to social media companies in 2022, but it was still higher than the $12 billion valuation given by some X investors recently. Xai’s final valuation in the December funding round was about $40 billion.

The two companies are private and already share important resources such as engineers. Xai’s chatbot, Grok, is trained with data posted by X users and is available in X. A banker at X for X informed investors that a portion of the social media company’s revenue came from Xai.

In his post, Musk wrote, “The future of Xai and X are intertwined. Today, we have officially taken a step towards combining data, models, calculation, distribution, and talent. The total company will provide a smarter, more meaningful experience to billions of people, while still remaining true to our core mission of improving knowledge in search of truth.”

The deal highlights Musk’s ability to manipulate different parts of his business empire. He merged the company that had lost value, X, with the company that had gained value, Xai, in a strategic move. Musk previously executed a similar strategy in 2016 when he used Tesla’s stocks to acquire SolarCity.

While Tesla is publicly traded, most of Musk’s other companies, like SpaceX, The Boring Company, and Neuralink, are private and less transparent. Musk often reallocates resources and employees among his businesses, operating them as a single entity.

X’s CEO, Linda Jaccarino, expressed concerns about the future, indicating a downturn in fortunes. X and Xai operate in different orbits, with X being more widely known. Since Musk’s acquisition, X has struggled financially due to controversial decisions and a decline in advertiser confidence.

According to Fidelity, X’s valuation plummeted to $12 billion in December. Some advertisers have returned to X recently, hoping for Musk’s favor, but the company has not yet achieved financial stability.

Xai was founded by Musk in 2023 to compete with OpenAI. Musk’s strategic moves and financial decisions have had a significant impact on X’s performance and revenue generation.

Despite challenges, the company remains resilient and continues to work towards its revenue targets. X’s focus on innovation and growth reflects its commitment to delivering value in the tech industry.

Musk’s vision for Xai and X reflects a strategic alignment of data, technology, and talent. The convergence of these resources aims to revolutionize the user experience and enhance knowledge discovery.

With Musk at the helm, X and Xai are poised to unlock new potentials and drive growth in the tech ecosystem. The integration of their capabilities will redefine the boundaries of innovation and propel the companies to new heights.

As Musk continues to navigate the complexities of business and technology, his visionary leadership will shape the future trajectory of X and Xai. The synergy between these entities promises a transformative journey towards excellence and impact in the digital landscape.

News of the trading deal on Friday was met with enthusiasm within X. Jaccarino’s message to employees underscores the excitement and optimism surrounding the company’s future prospects.

As X and Xai embark on a new chapter of growth and innovation, the resilience and determination of the team will drive them towards success. Musk’s strategic vision and leadership will guide the companies towards a future filled with limitless possibilities and achievements.

Ryan Mac Reports of contributions.

Source: www.nytimes.com

Trump claims we are in discussions with four parties regarding the TikTok sale, asserting, “The final decision rests with me.”

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Donald Trump stated on Sunday that negotiations are ongoing with four interested parties looking to acquire TikTok, and the Chinese-owned app is facing an uncertain future in the United States.

According to U.S. law, TikTok was mandated to be sold by its Chinese owner or face a ban in the country. When asked about the possibility of a deal on Sunday, Trump told reporters, “It could happen.”

“We are in discussions with four different groups, and there is significant interest, ultimately the decision lies with me,” he said aboard Air Force 1.

“All four potential buyers are reputable,” he added.

The TikTok ban came into effect on January 19th due to concerns that the Chinese government could potentially exploit the video-sharing platform to spy on Americans and manipulate public opinion.

TikTok was temporarily removed from the U.S. market and disappeared from app stores as the legal deadline approached, leaving millions of users disappointed. Trump paused the ban two and a half months after starting his second term in January, seeking a resolution with Beijing. TikTok later resumed its operations in the U.S. and returned to the Apple and Google App Stores in February.

Among the potential TikTok buyers is an initiative called “The People’s Bid for TikTok,” spearheaded by real estate and sports mogul Frank McCourt’s Project Liberty Initiative. Another interested group includes Microsoft, Oracle, and internet personality MrBeast, also known as Jimmy Donaldson.

TikTok does not appear to be in a rush to sell its platform.

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During his first term in office, Trump attempted to ban TikTok in the U.S. citing national security concerns.

Source: www.theguardian.com

OpenAI rejects $97.4 billion bid from Musk, asserts company is not for sale

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The recent opening rejected a $97.4 billion bid by a consortium led by billionaire Elon Musk for ChatGpt makers, stating that the startup is not up for sale.

This unsolicited offer is Musk’s latest attempt to thwart a startup co-founded with CEO Sam Altman.

“Openai is not for sale. The board unanimously turned down this latest attempt to disrupt Musk’s competition. Openai emphasized that their mission is to ensure that AGI benefits humanity and mentioned the possibility of a reorganization as a nonprofit organization.”

Altman confirmed in an interview with Axios that Openai is not for sale, and he responded to Musk’s offer with a simple “no thanks,” prompting Musk to call him a “swindler.”

A consortium, including Musk-led AI startup Xai, stated that they would withdraw their bid for Openai’s nonprofit status if plans to become a for-profit organization were removed, as per a court application filed on Wednesday.

Two days ago, the consortium introduced new terms in the proposal through a court filing. The filing exposed that the client’s “published ‘bids’ were not actual bids at all.” The Openai board communicated their position to Musk’s lawyer on Friday.

Other investors in the consortium include Valor Equity Partners, Baron Capital, and Hollywood Power Broker Ari Emanuel.

Altman and Musk have been in conflict for several years.

After Musk’s departure in 2019, Openai established a for-profit division that attracted significant fundraising, leading Musk to claim that the startup was deviating from its original mission and focusing more on profits than public good.

Musk filed a lawsuit against Altman, Openai, and their major supporter Microsoft in August last year on grounds of breach of contract.

In November, Musk requested a preliminary injunction from a US district judge to prevent the transition to a for-profit structure.

Source: www.theguardian.com

U.S. Supreme Court to Consider TikTok Ban or Sale Lawsuit

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The U.S. Supreme Court is set to hear oral arguments on Friday regarding the future of TikTok. This marks the latest development in an ongoing debate over whether to ban the immensely popular social media platform in the U.S. The judges will consider the balance between national security concerns and the preservation of free speech.

TikTok and its Chinese parent company ByteDance have appealed to the Supreme Court after a lower court upheld a law banning the app in the U.S. The ban is scheduled to take effect on January 19th, unless ByteDance sells TikTok’s assets to a non-Chinese entity. ByteDance has argued that a sale is not feasible from commercial, technical, and legal standpoints.

The oral arguments are expected to last for two hours, with each side given the opportunity to present their case. The court has outlined that the discussion will focus on whether the ban infringes on the First Amendment.

TikTok boasts 170 million users, approximately half of the U.S. population, making the potential ban a contentious issue. While some believe the app could be exploited by the Chinese government, there is a coalition of influencers, civil rights groups, and even President Donald Trump advocating against the ban, citing concerns about free speech violations.

ByteDance has faced legal challenges from federal and state authorities, with legislation to ban TikTok passing in Congress last year. The company maintains that it operates independently from Chinese influence and handles U.S. user data through Oracle.

Federal law at the center of the case

The law in question, known as the Protecting Americans from Regulatory Applications by Foreign Adversaries Act, was enacted by President Joe Biden. It follows a previous ban on TikTok in federal devices and underscores concerns about national security risks associated with the app.

U.S. lawmakers have expressed apprehensions about China’s potential control over TikTok’s content and user data, citing security threats and propaganda dissemination. However, no concrete evidence has been presented to show that China or ByteDance have manipulated the app for espionage purposes.

Shortly after Biden signed the law, TikTok filed a lawsuit against the U.S. government, arguing that the ban violates the Constitution and impinges on free speech rights. The company emphasized the importance of preserving communication and expression for its vast user base.

Supreme Court review and President Trump’s opinion

Following a recent ruling by a federal appeals court, TikTok sought an emergency motion from the Supreme Court to halt the ban. The court agreed to expedite oral arguments and has received numerous briefs from both sides of the debate.

Notably, former President Trump submitted an amicus brief requesting the court to suspend the ban to allow for negotiation. This stance contrasts with his previous efforts to ban TikTok over national security concerns.

President Trump’s involvement in the case underscores the complexity of the issue, with diverging viewpoints within the political landscape. The upcoming Supreme Court decision will have far-reaching implications for the future of TikTok in the U.S.

Source: www.theguardian.com

Utilize Arduino to investigate Indian manufacturing and curb the sale of counterfeit products

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Arduino is considering manufacturing in India. The startup, best known for its open source microcontroller boards, wants to limit the rise in counterfeit boards and meet growing demand from India’s youth.

The Italian company is currently exploring partnerships with electronic manufacturing services (EMS) companies in South Asia to start local production as early as the first quarter of next year, CEO Fabio Violante said in a virtual interview. told TechCrunch. This marks a significant change from the company’s current practice of producing all its boards in Italy.

India is the largest market for Arduino IDE downloads with 3.2 million. The country also has local branches of global Arduino distributors such as DigiKey, Mouser Electronics, and Avnet. However, India’s contribution to the customer base is currently less than 1%. Violante believes that her fake Arduino board is the main reason for this discrepancy.

“The strange situation for us in India is that even though the community is very large and the user base of the Arduino IDE is very large, we have no original product to sell to the Indian market, especially because people can’t afford the original product. “The amount is very small because finished electronic products are subject to high import duties,” he said. “So people mainly buy substitute products or clones, and in some cases those counterfeit products are made in China.”

Arduino clones are currently available for less than half the price of the original board. The latter also includes import duties. Therefore, by starting local manufacturing, Arduino will be selling its boards in India at the same low prices as their Chinese counterparts.

However, the problem with cloned boards is not limited to India, Biollante acknowledged, adding that the company currently sells one original board for every five to six clones in the market.

“This is difficult because we are open source and we make money by selling our original hardware,” he said. “So clones and counterfeits are a big part of the market.”

Arduino is trying to address the problem of counterfeit boards around the world by making its hardware more sophisticated and harder to counterfeit.

“Continuous innovation gives us a competitive edge,” Biollante said. “[The new boards] It uses a more sophisticated microcontroller, a more sophisticated power section that is not as easy to copy and paste. ”

The executive was in New Delhi last week to attend an investor-focused event organized by state agency Invest India, where he met with government officials and members of parliament, including India’s Minister of State for Electronics and Information Technology Rajeev Chandrasekhar. did.

To compete with China, India has been offering cashbacks and subsidies to global manufacturers to become production hubs. As a result, the country’s domestic electronics manufacturing increased by more than 111% to $99 billion in fiscal year 2022-23, from $47 billion in 2017-18, according to government data shared in parliament last week. However, most of this is due to growth in local mobile phone manufacturing. The country is already the second largest manufacturer of mobile phones, with Indian-made handsets accounting for more than 99% of domestic mobile phone sales. The government wants to expand local production not just for mobile phone assembly, but also for components including displays and semiconductors.

Violante told TechCrunch that Arduino is currently considering both large international EMS companies and small local companies in India that specialize in manufacturing electronic circuit boards and development boards.

The executive indicated that the company may initially consider making a $27 product. Uno R4 WiFi It was launched globally earlier this year. It aims to appeal to the masses with specifications such as a 32-bit Cortex M4 processor, 32KB RAM, and 256KB flash storage. However, over time, it may start producing the enterprise-oriented Pro series model that was launched last year.

Violante said Arduino is also looking to work with educational institutions in India to increase brand awareness among students and become part of local curricula. Additionally, partnerships with research institutions help the company connect with companies that collaborate with those institutions. The company already has a partnership with Tata Consultancy Services (TCS) in the US, and plans to expand that partnership in India as well. Furthermore, Arduino specifically plans to cater to local demand, and its initial start in the country means that, unlike many other startups, it does not rely on China for manufacturing, so over time it will grow locally. There is a possibility that the company will move towards exporting the manufactured boards to other countries.

Source: techcrunch.com