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UK and US Engage in Private Talks to Resolve Apple Encryption Dispute

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British officials have been in private discussions with U.S. counterparts to resolve concerns surrounding the UK’s demand that Apple build a backdoor into its encrypted data, according to a Bloomberg News report on Thursday. This follows Apple’s decision last month to remove its Advanced Data Protection security feature for cloud data in the UK, a move that has raised concerns about the potential for government access to sensitive information.

The removal of this encryption feature allows Apple to access iCloud backups, including iMessages, in specific situations, which it can then hand over to authorities if legally required. Previously, with end-to-end encryption enabled, even Apple itself could not access users’ data. This shift marks a significant response to government demands for easier access to encrypted user data.

The UK’s Home Office and Apple have not responded to requests for comment. Governments and tech giants have long been in a standoff over strong encryption, with authorities often viewing it as an obstacle to surveillance and crime-fighting. However, the UK’s demands are seen as particularly expansive.

In response to the situation, U.S. officials are investigating whether the UK’s actions violate agreements between the two countries. A letter sent on February 25 by U.S. Director of National Intelligence Tulsi Gabbard indicated that the U.S. is examining whether the UK violated the CLOUD Act, which restricts foreign governments from making requests for data on U.S. citizens.

On Friday, Apple’s appeal against the UK’s order will be heard in a secret hearing at London’s High Court

Apple to Introduce Live Translation Feature for AirPods

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Apple is working on a new feature for its AirPods that will enable the device to live-translate conversations into another language, according to a Bloomberg News report on Thursday. This innovative feature is expected to be rolled out as part of a software upgrade later this year, coinciding with the launch of the iOS 19 update for its mobile operating system.

While Google’s Pixel Buds have offered a similar translation feature for years, this marks a significant move by Apple to integrate language translation capabilities into its popular AirPods lineup. The feature would allow users to have real-time translations of conversations, enhancing communication between speakers of different languages.

Apple did not immediately respond to a request for comment. The company had previously announced that its AirPods Pro 2 could be transformed into a personalized hearing aid through software updates. This live translation feature is part of Apple’s broader efforts to overhaul its software and introduce new features for its devices, including iPhones, iPads, and Macs, later this year.

TSMC Proposes Joint Venture with Intel’s Foundry Division to Nvidia, AMD, and Broadcom

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TSMC (2330.TW) has pitched the idea of a joint venture involving Intel’s (INTC.O) foundry division to major U.S. chip designers, including Nvidia (NVDA.O), Advanced Micro Devices (AMD.O), and Broadcom (AVGO.O), according to sources familiar with the discussions. Under the proposal, TSMC, the world’s leading contract chipmaker, would oversee Intel’s foundry operations, which focus on manufacturing chips tailored to customer needs, but TSMC would retain no more than 50% ownership.

The proposal has been discussed with several other firms as well, including Qualcomm (QCOM.O), as part of TSMC’s efforts to partner with chip designers. The discussions are still in their early stages, and any potential deal would require approval from the U.S. government, particularly under the administration of President Donald Trump, who has shown interest in helping Intel recover from its financial struggles. Trump is particularly invested in boosting American manufacturing and supporting companies like Intel in remaining U.S.-owned.

Intel, which reported an $18.8 billion net loss for 2024, has seen a drastic decline in its stock price over the past year. As of December 31, the book value of Intel’s foundry division’s property and plant equipment stood at $108 billion. The company’s recent struggles have pushed its board members to consider various strategic moves, including partnering with TSMC for its foundry operations.

Despite some internal opposition, Intel’s board members have expressed support for exploring a joint venture with TSMC, with Intel’s executives holding different views on the matter. Intel’s foundry division, once a crucial part of Intel’s strategy under former CEO Pat Gelsinger, is now central to the company’s efforts to return to profitability, even as Gelsinger was replaced by interim co-CEOs in December.

TSMC’s push for a joint venture is complicated by the significant differences in manufacturing processes and technologies between the two companies. Intel and TSMC currently employ distinct chipmaking methods, which could pose challenges in aligning operations. Intel has previously partnered with Taiwan’s UMC (2303.TW) and Israel’s Tower Semiconductor (TSEM.TA), offering some precedent for potential collaboration, but the specifics of how such a partnership could function remain uncertain, especially regarding the sharing of trade secrets.

While TSMC’s interest is to involve Intel’s advanced manufacturing customers in the venture, discussions have also centered around Intel’s 18A manufacturing process, a key area of contention in the negotiations. Intel executives have claimed that its 18A technology surpasses TSMC’s 2-nanometer process, with Nvidia and Broadcom already testing Intel’s manufacturing capabilities, alongside AMD exploring the potential of Intel’s processes for its chips.