Intel gains a new ally in China's chip wars - Beijing

(Reuters) - Intel's investment of up to $1.5 billion in two fast-growing Chinese mobile chipmakers has effectively aligned the U.S. giant with a third party - a Beijing government intent on producing a viable domestic challenger to the likes of Qualcomm and Samsung.
For more than a decade, China has targeted semiconductor design and manufacture as a major focus of its industrial policy. Activity has picked up markedly over the past year with a spate of cross-border mergers and cooperation deals.
"We've entered an inflection point where government policy has started to work - it's started to help the local semiconductor industry," said Nomura analyst Leping Huang.
The deal hashed out by Intel Corp Chief Executive Brian Krzanich over 24 hours in Beijing in early August extends Intel's beachhead in China, the biggest battleground in the smartphone industry, and boosts the company's years-long effort to catch up to leading mobile chipmaker Qualcomm Inc.
A key visit during the trip was to Yang Xueshan, the deputy chief of China's Ministry of Industry and Information Technology (MIIT), who gave his blessing for the deal.
The agreement, unveiled on Sept. 26, gives Intel a 20 percent stake in Spreadtrum Communications and RDA Microelectronics through shares in a Tsinghua University holding company, with the aim of jointly developing and marketing smartphone chips.
China is the world's largest consumer and manufacturer of smartphones yet relies heavily on imported chips - particularly the processors that power the latest devices - made by San Diego-based Qualcomm, South Korea's Samsung Electronics Co, or MediaTek Inc of Taiwan.
China's ramped-up activity also arrives on the heels of revelations about the U.S. surveillance programme PRISM, which has prompted Beijing to undertake a slew of actions to enhance the security of its information technology industry.
For Intel, the world's leading manufacturer of chips for personal computers, the Tsinghua deal offers an additional path into the world's biggest chip market after it was slow to recognize the mobile revolution and design new processors for smartphones and tablets.
Intel spokesman John Mandeville declined to comment.
NATIONAL TARGETS
The China Semiconductor Industry Association estimates that revenue from China's chip industry reached 251 billion yuan($40.98 billion) in 2013, while domestic demand for chips amounted to 917 billion yuan, representing more than half of global semiconductor consumption.
Deng Zhonghan, a member of the Chinese Academy of Engineering and National People's Congress, said in March that China's $210 billion worth of annual chip imports exceeds the value of the country's entire yearly petroleum imports.
In June, the State Council offered the country's most comprehensive guidelines for the development of the semiconductor industry, outlining specific revenue targets for 2015 and 2020, with chip revenue set to grow at a better-than 20 percent annual clip, to reach 350 billion yuan by 2020.
An important part of Beijing's effort, analysts and industry insiders say, was consolidation of Spreadtrum and RDA, two companies formerly trading independently on Nasdaq.
The two companies were acquired a year ago for $1.7 billion and $900 million respectively by Tsinghua Unigroup, government-affiliated private equity group controlled by Tsinghua University in Beijing.
As part of its recent deal, which is expected to close early next year, Intel and Unigroup will form a new holding company that contains Spreadtrum and RDA.
Beijing wants the Unigroup companies to become competitive with Taiwan's MediaTek within five years and overtake Qualcomm within 10 years, according to a person familiar with Unigroup.
TRUE PARTNERS
Since taking over in 2013, Krzanich has aggressively positioned Intel to catch up with Qualcomm, the leading mobile chipset maker.
A central part of that strategy is China, where consumers are snapping up low-end smartphones made with low-cost chips from local suppliers like Spreadtrum and MediaTek.
Intel started investing in local operations 20 years ago, and presently operates factories across the country for manufacturing, assembling and testing microprocessors. Intel also has research and development operations in Beijing, Shanghai and Shenzhen.
In May, Intel said it reached an agreement with Fuzhou-based Rockchip to produce chips for tablets based on Intel's architecture.
"With China, what they want is for you to be a true partner," Krzanich told reporters in September. "We go in and we partner, we build factories, we build R&D and we help local companies."
Intel's deal with Tsinghua Unigroup comes three months after Qualcomm agreed to partner with Shanghai-based Semiconductor Manufacturing International Corporation (SMIC), China's largest foundry, to produce some of Qualcomm's smartphone chips.
As part of the agreement, Qualcomm will help SMIC implement its first high-end 28 nanometre manufacturing technology.
It also coincides with a year-long Chinese anti-monopoly investigation into Qualcomm. Critics say the probe unfairly targets foreign companies in order to help domestic companies, which Chinese authorities flatly deny.
Krzanich first discussed ways to collaborate with the Chinese firms during a visit to Tsinghua University in April, where he and Intel China head Yang Xu met Tsinghua Holding's Xu Jinhong, Unigroup's Zhou Weiguo, Spreadtrum founder Li Liyou, who is also a Tsinghua University alumnus.
He made a second trip to Beijing, the whirlwind visit in August, after which the deal fell into place.
"Tsinghua University is an important driving force for the development of national science and technology, and Tsinghua Holdings is a key part of that effort," Tsinghua Holdings Chief Executive Xu Jinhong told Reuters by email.
    Xu characterized the Intel investment as "a new model for cooperation between Chinese and U.S. companies in the chip industry."
Analysts say that Intel's deal will give the Santa Clara-based company a moderate boost by gaining a partner with strong relationships with local phone manufacturers.
The deal should also give Intel enough protection of its intellectual property through licensing arrangements and other conditions, said Scott Kennedy, director of the Research Centre for Chinese Politics and Business at Indiana University.
"There's potential benefits for everyone," Kennedy said.
(1 US dollar = 6.1250 Chinese yuan)
(Additional reporting by Michael Martina and Beijing Newsroom; Editing by Alex Richardson and Emily Kaiser)

Russian hackers target NATO, Ukraine and others - iSight

(Reuters) - Russian hackers exploited a bug in Microsoft Windows and other software to spy on computers used by NATO, the European Union, Ukraine and companies in the energy and telecommunications sectors, according to cyber intelligence firm iSight Partners.
ISight said it did not know what data had been found by the hackers, though it suspected they were seeking information on the Ukraine crisis, as well as diplomatic, energy and telecom issues, based on the targets and the contents of phishing emails used to infect computers with tainted files.
The five-year cyber espionage campaign is still going on, according to iSight, which dubbed the operation "Sandworm Team" because it found references to the "Dune" science fiction series in the software code used by the hackers.
The operation used a variety of ways to attack the targets over the years, iSight said, adding that the hackers began only in August to exploit a vulnerability found in most versions of Windows.
ISight said it told Microsoft Corp about the bug and held off on disclosing the problem so the software maker had time to fix it.

 

 

A Microsoft spokesman said the company plans to roll out an automatic update to affected versions of Windows on Tuesday.
There was no immediate comment from the Russian government, NATO, the EU or the Ukraine government.
Researchers with Dallas-based iSight said they believed the hackers are Russian because of language clues in the software code and because of their choice of targets.
"Your targets almost certainly have to do with your interests. We see strong ties to Russian origins here," said John Hulquist, head of iSight's cyber espionage practice. The firm plans to release a 16-page report on Sandworm Team to its clients on Tuesday.
While technical indicators do not indicate whether the hackers have ties to the Russian government, Hulquist said he believed they were supported by a nation state because they were engaging in espionage, not cyber crime.
For example, in December 2013, NATO was targeted with a malicious document on European diplomacy. Several regional governments in the Ukraine and an academic working on Russian issues in the United States were sent tainted emails that claimed to contain a list of pro-Russian extremist activities, according to iSight.
The firm said its researchers uncovered evidence that some Ukrainian government computer systems were infected, but they were unable to remotely confirm specific victims among those systems that had been targeted.
 Still, researchers believe a large percentage of those targeted systems were infected because the malicious software used was very sophisticated, using a previously unknown attack method that enabled it to get past virtually all known security protections, said Drew Robinson, a senior technical analyst with iSight Partners.
ISight said it had alerted some victims of Sandworm Team, but declined to elaborate.
The iSight research is the latest in a series of private sector security reports that link Moscow to some of the most sophisticated cyber espionage uncovered to date.
Russia's Kaspersky Lab in August released details on a campaign that attacked two spy agencies and hundreds of government and military targets across Europe and the Middle East.
(Reporting by Jim Finkle; Additional reporting by Alastair Macdonald; Editing by Tiffany Wu)

Hundreds of alleged Dropbox passwords leaked

(Reuters) - Hundreds of alleged usernames and passwords for online document-sharing site Dropbox were published on Monday on Pastebin, an anonymous information-sharing website.
The anonymous user, who claims to have hacked close to 7 million accounts, is calling for Bitcoin donations to fund the operation.
"We will keep releasing more to the public as donations come in, show your support," the anonymous Pastebin user said on the site.

 

 

 

Dropbox, however, said it has not been hacked.
"These usernames and passwords were unfortunately stolen from other services and used in attempts to log in to Dropbox accounts. We'd previously detected these attacks and the vast majority of the passwords posted have been expired for some time now. All other remaining passwords have been expired as well," a Dropbox spokesman said in an email to Reuters.
Dropbox is a Silicon Valley startup that has proved a hit with consumers and boasts more than 200 million users six years after it was started. It has undergone tremendous growth amid the meteoric rise of cloud, which is expected to continue booming alongside mobile computing.
NSA whistleblower Edward Snowden last week advised those concerned about their privacy to "get rid of Dropbox" and cease using Facebook (FB.O) and Google (GOOGL.O).
(Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar Warrier)

At 3 million sq ft in 5 years, Flipkart set for largest office deal

BANGALORE: India's biggest e-commerce company Flipkart has doubled its demand for office space to 3 million sq ft, barely two months after approaching top developers to lease 1.5 million sq ft. Embassy Office Parks, the equal joint venture between Blackstone and Embassy Group, is said to bag this lease deal which is pegged to be the largest office space transaction in India in at least a decade.

The deal, at Rs 52 per sq ft, is likely to be inked as early as this week. Flipkart plans to absorb the entire office space in two phases, but in a record four to five years. The e-commerce poster boy had short-listed Bangalore-based Bagmane Group and Embassy in a process advised by real estate consulting firm JLL.

Senior officials at Embassy Office Parks declined comment.

Flipkart, which is sitting on about $1.5 billion in cash, has already said that by the end of this financial year its employee strength would be increased to 25,000 from 12,000 at the beginning of the year. In real estate parlance, 3-million sq ft of office space could seat around 30,000 to 50,000 employees.

The breakneck growth of India's e-commerce market and Flipkart's aggression at the top would mean that hiring is likely to remain robust for the seven year-old-company co-founded by Sachin and Binny Bansal.

Rival Amazon has already leased out around 300,000 sq ft of office space at the World Trade Centre in Bangalore, a tenth of the office space requirement that Flipkart is projecting.

The office deal with Embassy Office Parks will see Flipkart being housed in the 106-acre Embassy TechVillage, which has around 500,000 sq ft of space that is yet to be leased of the 1.9 million sq ft developed, with the potential for to develop an additional 10 million sq ft of office space.

So far India's e-commerce leased about 600,000 sq ft space in the first of the ongoing calendar, said a report by consultancy firm CBRE South Asia, adding that office space deals by the well funded startups were rising.

Sectoral experts said that India's real estate sector will gain from e-commerce. CBRE South Asia deputy MD Ram Chandnani said e-commerce will stimulate demand for warehousing/logistics space for building back-end infrastructure, more than commercial office space.

Flipkart faces Rs 1,000 crore FEMA penalty: Report

MUMBAI: The Enforcement Directorate is looking to slap a show-cause notice on e-commerce major Flipkart over alleged FEMA violation, a report by ET Now said on Thursday evening.

The channel quoted sources as saying, "Our investigation is over and our Bangalore team has found evidence of FEMA violation against Flipkart." According to the report, the e-tailer may face a penalty of over Rs 1,000 crore.

A source who refused to be identified said Flipkart had violated FEMA provisions as WS Retail, the holding company, had investments from companies overseas.

Apple's 'Way Too Long' Invite Lands With a Thud

Apple's pretty much annual October new product media event usually is preceded by a cute invitation sent to journalists. The invitation typically includes a phrase or graphic element that provides a vague clue to the secret agenda of the event.

Presumably, this is to drum up excitement and speculation, in addition to creating an ah-ha moment when the audience understands the connection between the invitation and the actual announcement.
This year, Apple's hint is this: "It's been way too long." That is the worst teaser I've ever heard.

What Haven't You Been Doing Lately?

Consider the phrase: It's been way too long since... what? Since we've seen you last? Since we partied like there was no tomorrow? Nah. In Apple Land, the connotation immediately turns to products and product announcements.
Which then naturally turns to this: Which product hasn't been updated in "way too long?" Which product has been neglected? Which product is in desperate need of a makeover?
I don't consider myself a glass-half-empty kind of guy, but I found myself immediately considering the products that Apple has been futzing around with when I saw the teaser invite. Turns out, there are plenty of Apple products that seem stale.
The MacBook Air, which has sported the same basic form factor since Steve Jobs introduced it in 2008, comes to mind. Apple added the even smaller 11-incher in October of 2010 -- four years ago. Sure, there've been some minor upgrades along the way, but it's been four years -- and not even a color refresh.
What's worse, the MacBook Air hasn't had a Retina display. The MacBook Pro with Retina display came out two years ago in October of 2012. Is that way too long? Maybe. It sure feels like it -- but hey, that's not Apple's fault, right? You just can't power a Retina display with a battery in a super light MacBook Air form factor. Laws of physics and whatnot.
The technical challenges aren't the point here -- nor is the waiting game for Intel's next-generation Broadwell processors, which are well suited to being crammed into a shrinking form factor.
There are rumors that Apple is working on a 12-inch Retina-based MacBook Air variant, which it could even offer in Gold, Silver and Space Gray colors, but the point remains: It's been way too long gives the speculation a negative spin, as if Apple has been neglecting a product rather than working feverishly on it and giving it the attention it deserves.

Which Other Products Have Stagnated?

See how easy it is to consider Apple's invite phrase in a negative light? I just used the word "stagnated," which isn't a word you want associated with your products -- like say, the Mac mini, which has been largely ignored for two years. Or the iMac, which has gotten some touchups here and there, but no Retina displays.
Odds are, Apple will update the iMac with a Retina display sometime soon -- but now? Maybe. Neither product gets enough consumer attention to justify being the subject of Apple's teaser, though.
There is only one product that clearly stands out here, and it's the long-neglected Apple TV. The last hardware update was in March of 2012. There have been lots of minor additions and updates to the software, but the ingenuity and power of the hardware itself? For fans of the living room couch, it's been languishing in obscurity.
Finally. That is the first impression that Apple calls up with "It's been way too long."
That's really sad, because in reality, I'm excited and optimistic that Apple will -- finally -- make a serious push into the living room with a more powerful Apple TV and a much-improved content experience.
The phrase, "It's been way too long," could be applied to the way we watch and consume television. It's been way too long since consumers had a really great new way to watch TV. For anyone who pays attention to their budgets and how they spend on entertainment, it's hard to find any reason to be pleased with the bundles offered by our cable and satellite TV services.
So, even though the teaser could be the harbinger of a brand new world of awesomeness, the initial effort to understand it just results in a negative spin for Apple.

Playing Catch-Up

Instead of excitedly speculating on how Apple might make the living room "more comfortable than ever" with a new Apple TV that is now a hub for HomeKit and a whole new world of home automation products, Apple sparked people to wonder if it's been too long for an important new leap for the iPad.
Is a thinner iPad offered in a Gold color with a Touch ID button particularly cool? It doesn't take a genius to imagine a thinner iPad Air or a new coat of paint.
Instead of being excited about how well the Apple ecosystem will seamlessly let you hand off content, notifications, and messages between Macs and iOS devices, the question turns toward a grouchy "it's about damn time my Mac could talk with my iPhone."
The problem is that "way too long" implies an admission of failure -- and it's a failure on Apple's part, because this is Apple's event, after all. Even if the company is saying it's way too long for some other thing going on in the industry, the phrase boomerangs back to Apple.
So what would be more successful?
Apple could have said, "better than ever," or "like you've never seen before" or slapped on an image that implies a natural transformation into something mature and cool, like the hint of a butterfly's wing in the background of the invitation. Apple never would have to explain a butterfly.
"Way too long" fails to suggest that Apple might have invented something new -- or even created an upgrade leap. It suggests that Apple finally caught up to a widely held expectation. I'm pretty sure that's not what Apple was going for.
So yeah -- Apple's worst teaser ever.

Cylon Linux Gives GNOME Fans Glamour Galore

Cylon is a classic Linux distro preconfigured with lots of tweaks -- kind of a Unity-less Ubuntu with bling.

Cylon runs the classic GNOME 3 desktop on almost any hardware configuration made since 2007, but it is more suited to seasoned Linux users. Newcomers to Linux may not make an easy transition.
Still, Cylon Linux is highly usable out of the box. With its installed software, there's little need for supplemental installations. The user experience, however, might be less than appealing for those who are not at home with the GNOME 3 desktop.
I was impressed with Cylon's speed and dazzling animations -- but once the eye candy novelty wore off, I went to the Compiz setting panel to tone down the fireworks.
The classic GNOME 3 desktop is not for everyone. While Cylon's developers did a clever job of tweaking the performance, they failed to make it easy to change default settings for accessing virtual desktops.
Cylon also suffers from a common problem with GNOME 3 desktop environments: It has too many separate settings panels for Administration, System Compiz and Preferences.

Family Ties

Cylon Linux was last updated December 6th, 2012. Due to its lineage from Ubuntu, this version is supported with system updates through 2017. Its current version is 12.04.1 and is based on a kindred connection to Ubuntu 12.04 LTS. Its partial rolling update approach keeps pace with the Ubuntu system updates.
Cylon is a relative newcomer and has a much different look and feel despite its obvious reliance on direct Ubuntu branding. Cylon was founded in November 2012.

Under Cylon's Hood

Cylon Linux relies heavily on its Ubuntu underpinnings, but its closeness to Ubuntu is not readily apparent when you start using it.
This distro has a unique appearance. It looks and works nothing like the myriad of other Ubuntu derivatives.
Of course, the Software Center and the Update Manager carry the Ubuntu names and are the same repositories. Even the System Settings panel is strikingly similar.

Look and Feel

At first blush, Cylon's desktop appearance is like numerous other carbon-copy Linux distributions -- but the similarity ends once you get beyond the GNOME 3 panel at the top and the Docky bar at the bottom of the screen.
The big difference appears as a flash in the pan once you start clicking around the menu. It is a skimpy menu, by the way. It consists of a single column organized by category. The contents of each category slide out from the right as you hover over each label.
Expect to spend considerable time scrolling lists of submenus. The main menu lacks any search window. Also, it lacks any favorites panel.

The default desktop view in Cylon Linux includes preinstalled Conky clocks and screenlets plus a Docky Bar on the bottom and a disappointing panel at the top of the screen.

That may be why developers preinstalled the Synapse search and launch tool. The launcher is hardwired to the top panel. You also can access this app by setting a keyboard combination.

Flash Bang

Click on a menu item or touch any category with the mouse pointer, and the flashiness begins. The default visual effect is for a flash of flames that blaze for a fraction of a second and then fade away.
Programs open with their windows upside down and then spinning right side up. By default, the window controls -- maximize, minimize and X -- are in the left corner, just like Ubuntu.
Users familiar with Compiz effects will appreciate how Cylon has the CompizConfig Settings Manager installed and activated. Seasoned Linux users also will be able to change the settings as desired. However, strangers to Linux easily could be intimidated by all of the options.
It is perhaps the combination of the Docky Bar and the brash Compiz effects that set Cylon ahead of other Ubuntu Linux offspring. The level of Compiz settings resembles much of the inherent interface chaos some Linux users experience with the KDE desktop.

Panel Woes

The classic GNOME panel leaves a lot to be desired. Open programs are highlighted on the Docky bar. A few launchers for system tools are anchored to the top panel. But GNOME 3 does not give users any configuration access to this locked-down panel.
Other than displaying a few expected notification icons along with the application and places menus, the panel lets users do little with the wasted space.
Not having the upper panel serve as an anchoring point for personalized applets and pinned favorite programs is a sore point for many Linux users disgruntled with the GNOME 3 interface. Cylon's use of GNOME 3 does little to assuage that design dysfunction.

Cubed Delight

The spinning cube is without a doubt one of the most attractive visual effects associated with using virtual workspaces in Linux. The CompizConfig settings gives Cylon users a huge variety of options for tweaking how the cube performs. Basic cube functionality is preconfigured in this distro.
Hold the left CNTRL + ALT keys down while you press the left or right arrows. This changes the screen view to the spinning cube.
Hold the arrow key down to watch a perpetual spinning cube. Or press the arrow key more deliberately to move among the virtual workspaces.

Missing in Action

As mentioned earlier, one of my main disappointments with Cylon's design is the way it handles access to virtual workspaces. Most GNOME 3 desktops have a hidden thumbnail view that slides in from screen right when touched by the mouse pointer to show activated virtual workspaces. Clicking on a thumbnail gives you full-screen access to that virtual location.
If that feature exists in Cylon Linux, it is a well-kept secret. The feature is not activated by default. I could not find any system setting for it.
Also missing is any setting for the number of virtual workspaces you want to use. I am normally very good at finding such hidden triggers. The fact that I can not find it strongly suggests to me that the feature does not exist rather than is just well hidden.

No Way Out

Either way, this is a major design flaw in Cylon's implementation of the GNOME 3 interface. I was able to send a program window to any of four work spaces by right-clicking on the top border of the application window. This feature exists in most Linux desktop flavors.
However, the lack of the standard access to those virtual spaces for me is a disconnect and a deal breaker. The design fails on several levels.
First, it is awkward to have to find the program icon resting somewhere on the Docky bar and then click on it to swing onto that virtual workspace. Second, it is distracting to have to move fingers off the typing rows to press the three-key combination requiring two hands to spin the cube to the appropriate workspace. Three is the lack of configurable shortcut keys to move among virtual workspaces.
The Ubuntu distro -- and its various alternative desktops -- have these features. So do other Ubuntu-based distros such as Linux Mint.

Yes, Good Exists

Those design flaws aside, Cylon Linux offers numerous features to make it worthy of consideration. Perhaps one of the most impressive features is the well-stocked installed software.
Most menu categories are stuffed with a dozen or more applications. In many cases, the list includes four or five options for the same types of programs. In nearly all cases, users will have little or no need to go to the Software manager to find more titles.
What Cylon lacks in panel applets it makes up for with its ample inventory of Screenlets. Finding and installing what you want is fast and easy.

Cylon Linux is loaded with screenlet options and lots of doodads with a nice gallery of background images.

YPPA is a handy application that makes it very easy to add and manage PPAs, or Personal Package Archives. This tool automates the process and requires just clicking and selecting options.

Bottom Line

If you fancy the solid Ubuntu infrastructure but want something a lot different in user experience, give Cylon Linux a try. The visual effects are impressive and the system is preconfigured to work as installed.

Cylon Linux has a curved Expo View feature that is eye-catching.

However, do not expect Cylon Linux to be a Windows XP substitute. It is intended for use by Linux users who have a liking for more traditional GNOME 3 functionality.