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As the US Supreme Court considers whether to uphold a law that could get TikTok banned in the United States, here is a look at the rise of the video-snippet social app.- Genesis -In 2016, Beijing-based ByteDance launched Douyin, a short video sharing app, making it available only in China.ByteDance released TikTok for the international market the following year, shortly before buying song “lip-synching” app Musical.ly and merging it into TikTok.The social network became a hit with its algorithm serving up endless collections of short, looping, typically playful videos posted by users.- Pandemic boom -TikTok’s popularity soared during the Covid-19 pandemic declared in 2020, as people enduring lockdowns relied on the internet for diversion and entertainment.As a result, authorities began eyeing TikTok’s influence and addictive appeal.TikTok became one of the most downloaded apps in the world as officials grew increasingly wary of the potential for the Chinese government to influence ByteDance or access user data.India banned TikTok in July of 2020 due to tensions with China.- Targeted by Trump -While Donald Trump was US president in 2020, he signed executive orders to ban TikTok in the country.Trump accused TikTok, without proof, of siphoning off American users’ data to benefit Beijing and of censoring posts to please Chinese officials.Trump’s decision came against a backdrop of political tension between Washington and Beijing.During a failed bid for re-election, the Republican campaigned on an anti-China message.Between legal challenges and Trump’s loss to Joe Biden in the 2020 presidential election, the executive orders did not take effect.- Billion mark -In September 2021, TikTok announced it had 1 billion monthly users worldwide.But concerns grew about TikTok users facing risks of addiction, propaganda, and spying.In 2022, BuzzFeed reported that ByteDance employees based in China had accessed non-public information from TikTok users.ByteDance tried to cool privacy concerns by hosting user data on servers managed in the United States by Oracle.The move did not ease concerns in the United States, where TikTok was banned from devices used by the military.An array of other government agencies and academic institutes followed suit, forbidding members from using TikTok.TikTok’s Singaporean chief executive Shou Zi Chew was grilled by members of the US Congress during a 6-hour hearing in March of 2023.- Sell or go -TikTok was back in the hot seat in the United States in 2024, when President Joe Biden authorized a law requiring TikTok to be banned if ByteDance does not sell the app to a company not associated with a national security adversary.Washington’s stated aim is to cut the risk of Beijing spying on or manipulating TikTok users, particularly the 170 million US users of the app.TikTok remains adamant that it has never shared user data with the Chinese government or done its bidding at the social network.ByteDance sued the US government, arguing the law violates free speech rights.A final decision in that case is to be made by the US Supreme Court, which agreed on Tuesday to examine whether the pending ban violates the Constitution.The Supreme Court has scheduled a hearing on the matter for January 10.President-elect Donald Trump, who returns to office on January 20, has signaled he might intervene on TikTok’s behalf.Trump recently spoke of having a “soft spot” for TikTok, and this year his campaign used the app to win support from young voters.

Wall Street stocks tumbled and the dollar rallied Wednesday after the Federal Reserve lowered borrowing rates again but projected fewer 2025 interest rate cuts in light of lingering inflation concerns.US indices lurched lower following the 1900 GMT Fed announcement of the actions but fell further during and after Federal Reserve Chair Jerome Powell’s news conference.All 11 sectors dropped in the S&P 500, which finished three percent lower. Meanwhile the dollar jumped by more than one percent against the euro.The market is now expecting interest rates will “remain higher for longer,” said Briefing.com.”Seeing the kind of decline we are experiencing right now indicates that the Fed took the market quite by surprise,” said CFRA Research’s Sam Stovall.Although stocks often enjoy a late-year bounce referred to as the “Santa Claus rally,” Stovall said the depth of Wednesday’s drop could spur more selling if traders take profits.”Maybe Santa is already on vacation,” he said.The US central bank, as expected, moved ahead with a decision to reduce interest rates by a quarter point as Fed Chair Jerome Powell offered an upbeat appraisal of the US economy.But the announcement was coupled with the altered outlook on 2025 monetary policy.After the latest interest rate cut, the Fed is now “significantly closer” to the point where no further cuts will be needed, said Powell, who emphasized the central bank still views two percent inflation as a critical long term priority.In the last couple of months, the Fed’s favored inflation measure has ticked higher, moving away from the bank’s long-term target of two percent.Forex Live analyst Adam Button described Powell’s tone during the press conference as a shift “back to more emphasis on inflation falling rather than keeping the employment market strong.”Button said the market may also have been reacting to signs of President-elect Donald Trump’s opposition to a spending package that seeks to avert a fast-approaching US government shutdown.Elsewhere, official data Wednesday showed UK inflation had picked up in November, firming expectations that the Bank of England will hold off cutting its key interest rate on Thursday. Traders were also waiting for the conclusion of the Bank of Japan’s policy meeting Thursday.In the car sector, Nissan shares soared, while Honda fell about three percent. Mitsubishi Motors — whose top stakeholder is Nissan — accelerated almost 20 percent.UniCredit, Italy’s second-largest bank, increased its stake in Germany’s Commerzbank to around 28 percent amid growing speculation of an attempted buyout.UniCredit’s shares rose by 1.3 percent, while those in Commerzbank climbed 1.6 percent.- Key figures around 2140 GMT -New York – Dow: DOWN 2.6 percent at 42,326.87 (close)New York – S&P 500: DOWN 3.0 percent at 5,872.16 (close)New York – Nasdaq Composite: DOWN 3.6 percent at 19,392.69 (close)London – FTSE 100: UP 0.1 percent at 8,199.11 (close)Paris – CAC 40: UP 0.3 percent at 7,384.62 (close)Frankfurt – DAX: FLAT at 20,242.57 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,864.55 (close)Shanghai – Composite: UP 0.6 percent at 3,382.21 (close)Euro/dollar: DOWN at $1.0365 at $1.0491 Pound/dollar: DOWN at $1.2581 from $1.2710Dollar/yen: UP at 154.73 yen from 153.46 yen Euro/pound: DOWN at 82.38 pence from 82.54 penceBrent North Sea Crude: UP 0.3 percent at $73.39 per barrelWest Texas Intermediate: UP 0.7 percent at $70.58 per barrelburs-jmb/jgc

The US Supreme Court agreed on Wednesday to hear TikTok’s appeal of a law that would force its Chinese owner to sell the online video-sharing platform or shut it down.The top court scheduled oral arguments in the case for January 10, nine days before TikTok faces a ban unless ByteDance divests from the popular app.The law, signed by President Joe Biden in April, would block TikTok from US app stores and web hosting services unless ByteDance sells its stake by January 19.TikTok is arguing that the law, the Protecting Americans from Foreign Adversary Controlled Applications Act, violates its First Amendment free speech rights.”Congress has enacted a massive and unprecedented speech restriction,” TikTok said in a filing with the Supreme Court.Should the law take effect it would “shutter one of America’s most popular speech platforms the day before a presidential inauguration,” TikTok said.”This, in turn, will silence the speech of Applicants and the many Americans who use the platform to communicate about politics, commerce, arts, and other matters of public concern,” it added.”Applicants — as well as countless small businesses who rely on the platform — also will suffer substantial and unrecoverable monetary and competitive harms.”A TikTok spokesman said the company is “pleased with today’s Supreme Court order.””We believe the Court will find the TikTok ban unconstitutional so the over 170 million Americans on our platform can continue to exercise their free speech rights,” the TikTok spokesman said in a statement.The potential ban could strain US-China relations just as Donald Trump prepares to take office as president on January 20.At a press conference on Monday, Trump said he has “a warm spot” for TikTok and that his administration would take a look at the app and the potential ban.Trump has emerged as an unlikely TikTok ally amid concerns that a ban on the app would mainly benefit Meta, the Facebook parent company owned by Mark Zuckerberg.Trump’s stance reflects conservative criticism of Meta for allegedly suppressing right-wing content, including the former president himself being banned from Facebook after the January 6, 2021 US Capitol riot by his supporters.Trump’s support for TikTok marks a reversal from his first term, when the Republican leader tried to ban the app over similar security concerns.The US government alleges TikTok allows Beijing to collect data and spy on users. It also says the video hosting service is a conduit to spread propaganda, though China and ByteDance strongly deny these claims.A three-judge US appeals court panel earlier this month unanimously upheld the law’s premise that TikTok divesting from Chinese ownership “is essential to protect our national security.”AFP, among more than a dozen other fact-checking organizations, is paid by TikTok in several countries to verify videos that potentially contain false information.

Stock markets mostly edged higher while the dollar rose against main rivals Wednesday ahead of an expected decision by the US Federal Reserve to cut interest rates. Shares in Nissan soared more than 20 percent on reports that the Japanese car titan is in merger talks with rival Honda.”Stock markets have found their footing after a mixed morning, but all eyes are on the Fed meeting tonight and the accompanying statement,” said Chris Beauchamp, chief market analyst at online trading platform IG.The Fed is widely expected to cut borrowing costs for a third time in a row when it concludes its gathering Wednesday, trimming them by 25 basis points, leaving traders to focus on its statement for clues over the outlook.”The most important thing from the Fed’s meeting will be comments on monetary policy in 2025 as the market is starting to fret about future rate cuts being less frequent,” noted Russ Mould, investment director at AJ Bell.With US inflation coming down, decision-makers have been able to loosen their grip on policy since September.However, with Donald Trump set to re-enter the White House next month — pledging tax cuts, deregulation and tariffs on imports from China — there are fears prices could reignite, forcing the Fed to re-evaluate its rates timetable.Briefing.com analyst Patrick O’Hare said the market was bracing for Fed chair Jerome Powell to indicate it was unlikely to cut rates again in January.”The questions are, just how long might any pause last and how might that translate in terms of total rate cuts in 2025,” he said. The Fed is also set to release its latest Summary of Economic Projections. O’Hare noted that the previous version had suggested rates might come down by 100 basis points in 2025.Across the Atlantic, official data Wednesday showed UK inflation had picked up in November, firming expectations that the Bank of England will hold off cutting its key interest rate on Thursday. Traders were also waiting for the conclusion of the Bank of Japan’s policy meeting Thursday.Chinese stock markets and oil prices gained on hopes of more stimulus to boost China’s flagging economy.In the car sector, Nissan shares soared, while Honda fell about three percent. Mitsubishi Motors — whose top stakeholder is Nissan — accelerated almost 20 percent.Elsewhere on the corporate front UniCredit, Italy’s second-largest bank, increased its stake in Germany’s Commerzbank to around 28 percent amid growing speculation of an attempted buyout.UniCredit’s shares rose by 1.3 percent, while those in Commerzbank climbed 1.6 percent.- Key figures around 1630 GMT -New York – Dow: UP 0.3 percent at 43,572.96 pointsNew York – S&P 500: UP 0.2 percent at 6,060.61New York – Nasdaq Composite: UP 0.2 percent at 20,147.57London – FTSE 100: UP less than 0.1 percent at 8,199.11 (close)Paris – CAC 40: UP 0.3 percent at 7,384.62 (close)Frankfurt – DAX: FLAT at 20,242.57 (close)Tokyo – Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,864.55 (close)Shanghai – Composite: UP 0.6 percent at 3,382.21 (close)Euro/dollar: DOWN at $1.0476 at $1.0498 Pound/dollar: DOWN at $1.2692 from $1.2707Dollar/yen: UP at 154.01 yen from 153.41 yen Euro/pound: UP at 82.54 pence from 82.52 penceBrent North Sea Crude: UP 1.2 percent at $74.06 per barrelWest Texas Intermediate: UP 1.6 percent at $71.17 per barrelburs-rl/jj

Stock markets moved sideways while the dollar edged higher against main rivals Wednesday with the US Federal Reserve expected to cut interest rates. Shares in Nissan soared more than 20 percent on reports that the Japanese car titan is in merger talks with rival Honda.The Fed is widely expected to cut borrowing costs for a third time in a row when it concludes its gathering Wednesday, trimming them by 25 basis points, leaving traders to focus on its statement for clues over the outlook.”The most important thing from the Fed’s meeting will be comments on monetary policy in 2025 as the market is starting to fret about future rate cuts being less frequent,” noted Russ Mould, investment director at AJ Bell.With US inflation coming down, decision-makers have been able to loosen their grip on policy since September.However, with Donald Trump set to re-enter the White House next month — pledging tax cuts, deregulation and tariffs on imports from China — there are fears prices could reignite, forcing the Fed to re-evaluate its rates timetable.Briefing.com analyst Patrick O’Hare said the market was bracing for Fed chair Jerome Powell to indicate it was unlikely to cut rates again in January.”The questions are, just how long might any pause last and how might that translate in terms of total rate cuts in 2025,” he said. The Fed is also set to release its latest Summary of Economic Projections, and O’Hare noted that the previous version had suggested rates might come down by 100 basis points in 2025.Across the Atlantic, official data Wednesday showed UK inflation had picked up in November, firming expectations that the Bank of England will hold off cutting its key interest rate on Thursday.With annual inflation rising as expected to 2.6 percent, the pound also steadied. Traders were also waiting for the conclusion of the Bank of Japan’s policy meeting Thursday.Chinese stock markets and oil prices gained on hopes of more stimulus to boost China’s flagging economy.In the car sector, Nissan shares soared, while Honda fell about three percent. Mitsubishi Motors — whose top stakeholder is Nissan — accelerated almost 20 percent.Elsewhere on the corporate front UniCredit, Italy’s second-largest bank, increased its stake in Germany’s Commerzbank to around 28 percent amid growing speculation of an attempted buyout.UniCredit’s shares rose by 1.4 percent in afternoon trading, while those in Commerzbank climbed 2.3 percent.- Key figures around 1430 GMT -New York – Dow: FLAT at 43,465.28 pointsNew York – S&P 500: FLAT at 6,048.06New York – Nasdaq Composite: UP less than 0.1 percent at 20,124.11London – FTSE 100: UP less than 0.1 percent at 8,201.17Paris – CAC 40: UP less than 0.1 percent at 7,370.91 Frankfurt – DAX: FLAT at 20,252.26Tokyo – Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,864.55 (close)Shanghai – Composite: UP 0.6 percent at 3,382.21 (close)Euro/dollar: DOWN at $1.0490 at $1.0498 Pound/dollar: DOWN at $1.2695 from $1.2707Dollar/yen: UP at 153.83 yen from 153.41 yen Euro/pound: UP at 82.62 pence from 82.52 penceBrent North Sea Crude: UP 0.6 percent at $73.59 per barrelWest Texas Intermediate: UP 0.7 percent at $70.59 per barrelburs-rl/jj

Stock markets mostly climbed and the dollar steadied against main rivals Wednesday with the US Federal Reserve set to cut interest rates. Shares in Nissan soared more than 20 percent on reports that the Japanese car titan is in merger talks with rival Honda.The Fed is widely expected to cut borrowing costs for a third time in a row when it concludes its gathering Wednesday, leaving traders to focus on its statement for clues over the outlook.”The most important thing from the Fed’s meeting will be comments on monetary policy in 2025 as the market is starting to fret about future rate cuts being less frequent,” noted Russ Mould, investment director at AJ Bell.With US inflation coming down, decision-makers have been able to loosen their grip on policy since September.However, with Donald Trump set to re-enter the White House next month — pledging tax cuts, deregulation and tariffs on imports from China — there are fears that prices could reignite, forcing the Fed to re-evaluate its rates timetable.Across the Atlantic, official data Wednesday showed UK inflation picked up in November, firming expectations that the Bank of England will hold off cutting its key interest rate on Thursday.With annual inflation rising as expected to 2.6 percent, the pound also steadied. Traders also awaited conclusion of the Bank of Japan’s policy meeting Thursday.Chinese stock markets and oil prices gained on hopes of more stimulus to boost China’s flagging economy.Focus was also on the car sector. While Nissan shares soared, Honda fell about three percent. Mitsubishi Motors — whose top stakeholder is Nissan — accelerated almost 20 percent.Elsewhere on the corporate front, Italy’s second largest bank UniCredit increased its stake in Germany’s Commerzbank to around 28 percent amid growing speculation of an attempted buyout.- Key figures around 1045 GMT -London – FTSE 100: UP 0.3 percent at 8,216.08 pointsParis – CAC 40: UP 0.3 percent at 7,385.05 Frankfurt – DAX: UP 0.3 percent at 20,311.53Tokyo – Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,864.55 (close)Shanghai – Composite: UP 0.6 percent at 3,382.21 (close)New York – Dow: DOWN 0.6 percent at 43,449.90 (close)Euro/dollar: FLAT at $1.0498 Pound/dollar: UP at $1.2709 from $1.2707Dollar/yen: UP at 153.59 yen from 153.41 yen Euro/pound: UP at 82.61 pence from 82.52 penceBrent North Sea Crude: UP 0.6 percent at $73.59 per barrelWest Texas Intermediate: UP 0.6 percent at $70.09 per barrel

Japanese auto giants Honda and Nissan are in preliminary merger talks to help them compete against Tesla and Chinese electric vehicle makers, media reports said Wednesday.Shares in Nissan soared as much as 24 percent, while Honda dipped more three percent. Mitsubishi Motors — of which Nissan is the top shareholder — gained almost 20 percent.Japan’s number two and three automakers behind Toyota had already agreed in March to explore a strategic partnership on EVs.”We are discussing possibilities for cooperation… in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided,” a Honda spokesman told AFP on Wednesday.Nissan said: “The content of the report is not something that has been announced by either company… If there are any updates, we will inform our stakeholders at the appropriate time.”Major automakers the world over have been reeling from tough competition in EVs, in particular from Chinese competitors such as BYD.Volkswagen, for instance, is considering closing German factories for the first time in its history.Last month, Nissan announced 9,000 job cuts, slashed its sales forecasts and said it would reduce global production capacity by 20 percent.Warning of a “severe situation”, CEO Makoto Uchida said he would forfeit half his salary.Nissan has seen a turbulent decade that included an attempted major alliance with France’s Renault that saw its former boss Carlos Ghosn arrested in 2018.In Paris, shares in Renault, which owns a significant stake in Nissan, soared more than six percent on Wednesday.- Electric race -Bloomberg reported that an approach by Taiwan’s Foxconn — officially known as Hon Hai Precision Industry — to take a controlling stake in Nissan accelerated discussions with Honda.Foxconn, the world’s largest contract electronics manufacturer including for Apple, was not immediately available for comment.Honda and Nissan are considering operating under a holding company and will soon sign a memorandum of understanding, the Nikkei reported.Their respective stakes, as well as other details, will be decided later, and they also look to eventually bring Mitsubishi Motors under the holding company, the paper said.The Financial Times reported that the exploratory talks about a merger were at an early stage.There are, however, concerns about a possible political backlash since a merger could result in significant job cuts, the FT reported.Japanese television channel TBS reported that the companies could make an announcement as early as Monday.Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, executive vice president Shinji Aoyama told Bloomberg.- Overtaken -China overtook Japan as the world’s biggest vehicle exporter in 2023, helped by its dominance in EVs, a sector where Japanese firms have lost ground by focusing on hybrid vehicles.Honda announced plans in May to double investment in electric vehicles to $65 billion by 2030, part of its ambitious target set three years ago of achieving 100 percent EV sales by 2040.Nissan has signalled similar ambitions.It said in March that 16 of the 30 new models it plans to launch over the next three years would be “electrified”.The world’s auto giants are increasingly prioritising electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.At the same time, however, there has been a slowdown in the EV market on the back of consumer concern about high prices, reliability, range and a lack of charging points.”From Nissan’s perspective, the possible merger would provide short-term relief for Nissan, which is under significant financial pressure,” Tatsuo Yoshida, Bloomberg Intelligence analyst, told AFP.”From Honda’s perspective, Honda is performing better financially, the benefits for Honda would be more long-term,” Yoshida said, adding, however, that agreeing on a deal would be “very difficult”.burs-stu/mtp

Asian markets swung Wednesday ahead of the Federal Reserve’s much-anticipated policy announcement, while shares in Japanese car titan Nissan soared more than 20 percent after reports said it was in merger talks with rival Honda.There were few catalysts to drive region-wide activity before the US central bank’s interest rate decision, with Wall Street providing a negative lead as profit-takers moved in while economic data was mixed.The Fed is widely expected to cut borrowing costs for the third successive time when it concludes its gathering later in the day but the main focus is on its statement, with traders hoping for guidance on its plans for next year.With inflation coming down but hovering above the two percent target and the labour market still robust, decision-makers have been able to loosen their grip on policy since September amid optimism they can guide the economy to a soft landing.However, with Donald Trump set to re-enter the White House next month, pledging tax cuts, deregulation and tariffs on imports from China, there are fears that prices could be reignited, forcing the Fed to re-evaluate its rates timetable.”We are experiencing a whirlwind of change and uncertainty that profoundly affects global economies,” said Stephen Innes of SPI Asset Management.”Questions loom: Will Donald Trump be a ‘Deal Maker in Chief’ or lean into his ‘Tariff Man’ persona? How will bond yields react? Can China effectively stimulate consumer demand? Will Trump broker peace in Eastern Europe? Will the dollar maintain its oppressive strength?”He added that “the crucial question is whether the Federal Reserve will signal a pause starting from the January (policy) meeting”.”My view leans toward an affirmative; the real intrigue, however, lies in how explicitly the Fed will beam this potential shift and confirm a ‘hawkish cut’.”While Wall Street fell, Asian markets diverged. Hong Kong, Shanghai, Seoul, Bangkok and Taipei rose but Sydney, Singapore, Wellington, Mumbai, Jakarta and Manila fell.London rose even as data showed UK inflation picked up in November, firming expectations the Bank of England will hold off cutting rates this week.Paris and Frankfurt were also both up.Tokyo closed down, although Nissan scorched 23.7 percent higher soon after opening in response to reports it was in preliminary merger talks with Honda, adding the move would help them better compete against Tesla and other electric vehicle makers.Neither firm confirmed the reports but they agreed in March to explore a strategic partnership on EVs, which analysts said was aimed at catching up with Chinese competitors.Nissan has been struggling, announcing 9,000 job cuts last month and slashing its annual sales forecast.The rise was the biggest since 1974, according to Bloomberg News.Honda fell about three percent, while Mitsubishi Motors — of which Nissan is the top stakeholder — gained 19.7 percent.On currency markets, the yen edged down against the dollar ahead of the Fed decision, while traders also awaited the conclusion of the Bank of Japan’s Thursday meeting as debate swirls about when it will hike rates.Bitcoin pared gains after earlier hitting a record of more than $108,315 on Wednesday.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 0.7 percent at 39,081.71 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,864.55 (close)Shanghai – Composite: UP 0.6 percent at 3,382.21 (close)London – FTSE 100: UP 0.2 percent at 8.210,72Euro/dollar: DOWN at $1.0497 from $1.0498 TuesdayPound/dollar: DOWN at $1.2687 from $1.2707Dollar/yen: UP at 153.57 yen from 153.41 yen Euro/pound: UP at 82.74 pence from 82.52 penceWest Texas Intermediate: UP 0.5 percent at $70.45 per barrelBrent North Sea Crude: UP 0.5 percent at $73.52 per barrelNew York – Dow: DOWN 0.6 percent at 43,449.90 (close)

Shares in Japanese chipmaker Kioxia closed 10 percent higher in Tokyo on Wednesday after an initial public offering that valued the firm at more than $5 billion.Formerly the semiconductor unit of Japanese engineering giant Toshiba, the firm is the world’s third-largest producer of NAND flash memory chips.It was acquired by US investment firm Bain Capital in 2018.Memory chips are used in everyday devices such as smartphones and storage drives, as well as in industrial and medical equipment, but their prices are notoriously volatile.Global demand for the chips has been driven by the growth of generative artificial intelligence technology, such as that used in OpenAI’s popular chatbot ChatGPT.Kioxia had been expected to go public in October, emboldened by soaring demand for AI, but a rout in tech shares forced the company to delay until this month.The firm set its listing price at 1,455 yen per share, valuing it at 784 billion yen ($5.2 billion) and raising about 120 billion yen — making it Japan’s second biggest IPO this year.Its shares closed 10 percent higher at 1,601 yen.The company previously said it planned to issue around 21.5 million new shares, in addition to more than 63 million to be sold at home and abroad by existing shareholders Bain Capital and Toshiba.Kioxia is among several Japanese semiconductor producers the government is subsidising as it seeks to triple the sales of domestically produced chips to more than 15 trillion yen by 2030.Firms such as Toshiba and NEC helped Japan dominate in microchips during the 1980s, but competition from South Korea and Taiwan saw its global market share slump from more than 50 percent to around 10 percent now.But as China ramps up military pressure on Taiwan, heralding volatility on the self-ruled island’s ability to produce semiconductors, hopes are running high that Japan will re-emerge as a new chip hub.

Shares in Japanese chipmaker Kioxia rallied more than seven percent on their debut in Tokyo on Wednesday after an initial public offering that valued the firm at more than $5 billion.Formerly the semiconductor unit of Japanese engineering giant Toshiba, the firm is the world’s third-largest producer of NAND flash memory chips.It was acquired by US investment firm Bain Capital in 2018.Memory chips are used in everyday devices such as smartphones and storage drives, as well as in industrial and medical equipment, but their prices are notoriously volatile.Global demand for the chips has been driven by the growth of generative artificial intelligence technology, such as that used in OpenAI’s popular chatbot ChatGPT.Kioxia had been expected to go public in October, emboldened by soaring demand for AI, but a rout in tech shares forced the company to delay until this month.The firm set its listing price at 1,455 yen per share, valuing the firm at 784 billion yen ($5.2 billion) and raising about 120 billion yen — making it Japan’s second biggest IPO this year.Its shares jumped as much as 7.7 percent in morning trade before paring the gains to sit 4.7 percent higher at 1,508 yen.The company previously said it planned to issue around 21.5 million new shares, in addition to more than 63 million to be sold at home and abroad by existing shareholders Bain Capital and Toshiba.Kioxia is among several Japanese semiconductor producers the government is subsidising as it seeks to triple the sales of domestically produced chips to more than 15 trillion yen by 2030.Firms such as Toshiba and NEC helped Japan dominate in microchips during the 1980s, but competition from South Korea and Taiwan saw its global market share slump from more than 50 percent to around 10 percent now.But as China ramps up military pressure on Taiwan, heralding volatility on the self-ruled island’s ability to produce semiconductors, hopes are running high that Japan will re-emerge as a new chip hub.