Technology Sector

Broadcom stock slipped 0.3% on Monday after the EU General Court rejected its bid to block European antitrust regulators from demanding U.S.-based legal documents. The dispute stems from an ongoing investigation into Broadcom’s $69 billion acquisition of software provider VMware in 2023. European Cloud Infrastructure Services Providers in Europe, a trade group representing nearly 50 local cloud providers alongside members Microsoft and Amazon, filed a complaint in March 2026 alleging that post-merger licensing changes squeezed out European partners. When the European Commission ordered Broadcom to hand over documents created by its U.S. legal advisers, Broadcom fought the demand in court, arguing the papers were protected under American attorney-client privilege. The court ruled against the chipmaker, holding that European regulators determine what evidence they need and warning that corporate carve-outs would hobble EU antitrust enforcement. The decision exploits a structural legal rift: while U.S. law protects communications with internal corporate counsel, EU privilege applies almost exclusively to external, independent lawyers. The ruling does not establish a competition violation, but it exposes Broadcom's internal strategic documents and legal communications to European investigators.

TSMC and Sony are investing $6.3 billion in a joint venture to manufacture advanced image sensors at Sony's plant in Kumamoto, Japan, according to euronews.com. Sony will own 60% of the venture and TSMC 40%, with mass production targeted to begin as early as 2029. The two companies will develop and produce high-performance camera sensors used in smartphones and automobiles—Sony dominates the global image sensor market, while TSMC is the world's largest contract chipmaker. The investment agreement is expected to be finalized in coming months. TSMC's own momentum is strong: the company reported net revenue of €12.6 billion for July 2026, up 44.7% year-over-year, and January-through-July revenue of €77.6 billion, up 37% from the same period in 2025. The partnership consolidates sensor manufacturing in Japan rather than spreading it across multiple geographies, giving both companies a single, controlled production hub for a component critical to the smartphone and automotive supply chains.

Nearly a third of British manufacturers suffered a cyber-attack in the past 12 months, according to a survey by MakeUK reported by theguardian.com, exposing a critical vulnerability in factories that have grown more interconnected but less defended. The 30% hit rate comes almost a year after Jaguar Land Rover, Britain's largest automotive employer, was forced to halt production across all factories, offices and retail operations after Russian hackers breached its systems on the last day of August. That attack cost the UK economy at least £1.9bn in lost output alone, making it probably the most expensive cyber incident ever in Britain. Among the manufacturers surveyed who experienced supply-chain attacks, roughly 30% reported customer delivery delays or output cuts, and almost a quarter faced supplier shortages. Only half of all manufacturers had a plan in place to respond to an attack. The risk has sharpened as generative AI systems have begun hacking into businesses autonomously, and as factories have added more digital links to speed up operations—each connection a potential entry point for intruders. The UK government estimates cybercrime costs the economy £14.7bn annually, and the National Cyber Security Centre has begun working directly with manufacturers to strengthen defences, signalling that the state now treats factory security as a national economic problem.