2025-01-10 23:33

WASHINGTON, Jan 10 (Reuters) - Taiwan Semiconductor Manufacturing Co (2330.TW) , opens new tab has begun producing advanced four-nanometer chips for U.S. customers in Arizona, Commerce Secretary Gina Raimondo told Reuters, a milestone in the Biden administration's semiconductor efforts. In November, Commerce finalized a $6.6 billion grant to TSMC's U.S. unit for semiconductor production in Phoenix, Arizona. "For the first time ever in our country's history, we are making leading edge four-nanometer chips on American soil, American workers -- on par in yield and quality with Taiwan," Raimondo told Reuters in an interview saying it had begun in recent weeks. "That's a big deal -- never been done before, never in our history. And lots of people said it couldn't happen," Raimondo said of the previously undisclosed production start. A spokesperson for TSMC, the world's largest contract chipmaker and a major supplier to Apple (AAPL.O) , opens new tab and Nvidia (NVDA.O) , opens new tab which reports earnings next week, declined to comment Friday. In April, TSMC agreed to expand its planned investment by $25 billion to $65 billion and to add a third Arizona fab by 2030. Congress created a $52.7 billion semiconductor manufacturing and research subsidy program in 2022. Commerce convinced all five leading edge semiconductor firms to locate fabs in the United States as part of the program. Raimondo told Reuters earlier that Commerce had to convince TSMC to boost its U.S. plans. "It didn't happen on its own... We had to convince TSMC that they would want to expand," Raimondo said. TSMC will produce the world's most advanced two-nanometer technology at its second Arizona fab expected to begin production in 2028. TSMC also agreed to use its most advanced chip manufacturing technology called "A16" in Arizona. The TSMC award from Commerce also includes up to $5 billion in low-cost government loans. Raimondo wants the United States to make 20% of world's leading-edge logic chips by 2030 -- up from the 0% before TSMC began production in Arizona. In April, Commerce said TSMC expects to begin high-volume production in its first U.S. fab by the first half of 2025. Last month, Commerce finalized an award of $407 million to help fund Amkor Technology's (AMKR.O) , opens new tab planned $2 billion advanced semiconductor packaging facility in Arizona, which is set to be the largest of its kind in the U.S. Amkor's Arizona plant when fully operational will package and test millions of chips for autonomous vehicles, 5G/6G and data centers. Apple will be its first and largest customer with the chips produced at a nearby TSMC facility. Sign up here. https://www.reuters.com/technology/tsmc-begins-producing-4-nanometer-chips-arizona-raimondo-says-2025-01-10/

2025-01-10 23:30

Jan 10 (Reuters) - The U.S. government on Friday proposed 2026 reimbursement rates for Medicare Advantage plans run by private insurers that will result in a 2.2% increase in payments, compared with a decline of 0.2% last year. Shares of insurers UnitedHealth Group (UNH.N) , opens new tab, Elevance Health (ELV.N) , opens new tab, CVS Health Corp (CVS.N) , opens new tab and Humana (HUM.N) , opens new tab rose between 1% and 3.2% in extended trade. The government payment rate affects how much insurers charge for monthly premiums, which plan benefits they offer and ultimately, how much they can profit. The total increase in payments is estimated at 4.3%, or over $21 billion, when factoring in a 2.1% "risk score", an adjustment that accounts for potentially higher payments for patients with more severe health conditions. The payment rate is used by companies such as UnitedHealth , Humana, Elevance and CVS's Aetna unit to prepare bids for contracts for Medicare Advantage plans they will sell in 2026. "Overall, this was a highly favorable release given the contentious political environment and the recent proposals under this administration, and this should be very positive for the group and for stocks like HUM, UNH, and CVS," Oppenheimer analyst Michael Wiederhorn wrote in a research note. About 65 million people are enrolled in the government's Medicare program for people aged 65 and older or who are disabled, and more than half of them are enrolled in Medicare Advantage plans. The proposed rate typically changes after feedback from insurers, other entities and the public. The final rate announcement will be published on or before April 7, 2025. Under President Joe Biden's Inflation Reduction Act, annual out-of-pocket drug costs will be capped at $2,100 in 2026 for people with Medicare prescription drug plans, known as Part D, the government also said. That is an increase from 2025's $2,000 cap. Sign up here. https://www.reuters.com/business/healthcare-pharmaceuticals/us-proposes-payment-rate-2026-medicare-advantage-insurers-2025-01-10/

2025-01-10 23:14

Jan 10 (Reuters) - Chocolate maker Hershey (HSY.N) , opens new tab on Friday announced the departure of CEO Michele Buck, who has been at the helm for more than seven years, effective June 30, 2026. Buck, a consumer packaged goods veteran with nearly two decades at the company, will continue as CEO until her successor is appointed. She will then transition to a senior advisor role until her retirement, the company said. The CEO transition comes hot on the heels of leadership changes at food companies including Campbell's Co(CPB.O) , opens new tab and frozen food supplier Lamb Weston(LW.N) , opens new tab. Hershey faces pressure from soaring cocoa costs, which nearly tripled in 2024 and demand slowdown from repeated price hikes. "We believe that a new CEO will need to reset the 2026 earnings per share base due to weaker category dynamics and higher cocoa costs," TD Cowen analyst Robert Moskow said. The Reese's peanut butter cups maker trimmed its annual revenue forecast and missed its third quarter sales expectations in November. It reiterated its 2024 forecast on Friday and indicated that its 2025 outlook would be provided when it reports earnings on Feb. 6. The board has appointed a special committee to assist in the search for a new CEO, which will evaluate both internal and external candidates for the position. Cocoa prices have been on the rise as crop losses in top cocoa-producing countries the Ivory Coast and Ghana, caused by adverse weather, bean disease, smuggling, and workers shifting to illegal gold mining. Earlier this week, Bloomberg News reported that Hershey sought permission from the Commodity Futures Trading Commission (CFTC) to purchase up to 90,000 metric tons of cocoa from ICE-certified stocks, exceeding the typically allowed maximum amount. The stock, down 6.4% this week, was largely unchanged in trading after the bell. Sign up here. https://www.reuters.com/business/retail-consumer/hershey-set-announce-ceo-michele-buck-step-down-semafor-reports-2025-01-10/

2025-01-10 23:08

CHICAGO, Jan 10 (Reuters) - Workers in U.S. chicken and pork plants face higher risks than other manufacturing workers for musculoskeletal disorders such as carpal tunnel syndrome, according to two studies the U.S. Department of Agriculture issued on Friday. The findings highlight health concerns for employees who often perform repetitive tasks and use dangerous equipment, including sharp knives, to process meat for consumers. Those roles are disproportionately filled by immigrants and undocumented workers. More than half of all U.S. meatpacking workers are immigrants, compared with about 17% of the entire workforce, according to the Center for Economic and Policy Research, a think tank. A USDA-funded study of 1,047 poultry workers at 11 plants operating at faster processing speeds found that 81% of employees were at increased risk of musculoskeletal disorders. Researchers compared their risk for carpal tunnel syndrome to another study of 4,321 manufacturing workers. Poultry workers who handled more chicken per minute faced higher risks than those who worked at a slower rate, though there was not an association with faster processing line speeds, the study found. Meat companies are improving processes and equipment to reduce injuries, said the Meat Institute, an industry group that represents producers such as Tyson Foods (TSN.N) , opens new tab and JBS USA. "It is possible to maintain worker safety standards while operating at increased line speeds," the institute said. In pork plants, 46% of 574 evaluated workers were at high risk for musculoskeletal disorders, and the effect of increased line speeds varied between establishments, according to another USDA-funded study. Several workers expressed concerns about reporting pain to their supervisor due to the risk of retaliation or out of frustration that their problems would not be helped, the study said. "Everyone works in pain and is afraid to speak out," one pork worker said, according to the study. Dangers go beyond the musculoskeletal injuries detailed in USDA's reports, said Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, which represents more than 15,000 poultry workers. "Poultry workers toil in cramped, cold conditions, slicing up birds thousands of times per hour as chickens rush down the line," he said. Sign up here. https://www.reuters.com/world/us/us-chicken-pork-plant-workers-face-higher-health-risks-usda-studies-confirm-2025-01-10/

2025-01-10 23:02

Metsera reports $156.26 million loss in first nine months of 2024 Proceeds from IPO to fund MET-097i clinical trials Weight-loss drug market projected to reach $150 billion by early 2030s Jan 10 (Reuters) - Weight-loss drug developer Metsera, backed by ARCH Venture Partners, revealed a wider loss in its paperwork for a U.S. initial public offering on Friday. The terms of the IPO were not disclosed in the filing. Strong equity markets, falling interest rates and hopes of a friendlier regulatory environment under the incoming Trump administration have given a push to companies looking to list their shares. Metsera, founded in 2022 by venture capital firm ARCH Venture and investment firm Population Health Partners, revealed a net loss of $156.26 million in the first nine months of 2024, compared to a loss of $34.18 million in the same period in 2023. The New York City-based biotech firm is developing injectable and oral drugs to treat obesity, based on the GLP-1 mechanism and other biological targets. The company will use the proceeds from the IPO to advance into the next stage of clinical trials for its most advanced product candidate, MET-097i, an injectable. The remainder will be used for working capital and other general purposes. The weight-loss drug market, which is estimated by analysts to reach at least $150 billion by the early 2030s, has boomed globally with several companies vying for a share of the pie. This attractive market has also whetted investor appetite, with the strong reception of BioAge (BIOA.O) , opens new tab and MBX Biosciences (MBX.O) , opens new tab last year. In 2023, the World Health Organization decided not to add GLP-1 drugs to its essential medicines list, a catalog of the items that should be available in all functioning health systems. However, another application has been lodged for the agency to reconsider their inclusion in the 2025 list update, a spokesperson told Reuters in December. The company raised $290 million in funding last year, with participation from firms such as SoftBank and Mubadala Capital. Metsera intends to list its shares on the Nasdaq Global Market under the ticker symbol "MTSR". BofA Securities, Goldman Sachs, Evercore ISI, Guggenheim Securities and Cantor are the underwriters for the offering. Sign up here. https://www.reuters.com/markets/deals/metsera-files-us-ipo-2025-01-10/

2025-01-10 22:47

Internal Revenue Service to start tax filing season on Jan. 27 IRS chief says funding cuts would reduce staff, increase delays Direct File system to expand to 25 states in 2025 WASHINGTON, Jan 10 (Reuters) - The Internal Revenue Service said on Friday it will launch the 2025 tax filing season on Jan. 27 with expanded tools that cannot be adequately supported if the Republican-controlled Congress rescinds tens of billions of dollars in supplemental IRS funding. IRS Commissioner Danny Werfel said that should the IRS lose funding that was initially enacted at $80 billion over 10 years, it will have to reduce staffing levels that have improved taxpayer service and reduced processing times and backlogs for tax returns. The agency will also see its modernization program stagnate, putting many technology improvements in limbo, he said. "And so if we don't have the right staffing levels, the performance will backslide, and we will see inevitably slower processing delays and potential backlogs," Werfel told reporters during a news briefing to preview the 2025 filing season. The IRS won the supplemental funding in 2022 as part of the Biden administration's Inflation Reduction Act, largely a clean energy subsidy and healthcare bill. The funding, which was passed with votes only from Democrats, made up for more than a decade of understaffing, and the U.S. Treasury had estimated that it would enable beefed up enforcement that would yield $564 billion in new tax revenue over a decade. Republicans called unsuccessfully for the funding to be rescinded, arguing that it would unleash an army of new auditors to harass taxpayers. But they subsequently chopped back $20 billion during government funding battles in 2023, bringing the total down to $60 billion through 2031. But another $20 billion in funding was suspended under a stop-gap funding measure last fall due to a drafting anomaly that repeated the prior year's language. Unless that amount is restored, Deputy Treasury Secretary Wally Adeyemo said the U.S. budget deficit could rise by $140 billion over 10 years due to reduced enforcement. EXPANDED DIRECT FILE SYSTEM While Trump has said little about the IRS funds, billionaire Elon Musk, who co-leads the informal Department of Government Efficiency cost-cutting effort, asked subscribers , opens new tab on his X social media platform in November whether IRS funding should be "deleted." The IRS, which collects 95% of federal revenues, has focused its initial new funding on increasing taxpayer-facing staff to answer questions, bringing average taxpayer phone waiting times to under five minutes. It introduced new scanning technology to allow it to process paper tax returns far more quickly. Enhancements scheduled for the new tax year include an expanded Direct File system now available in 25 states, up from 12 in a pilot program last year, allowing taxpayers to file simpler electronic returns for free directly with the IRS without the need for a third-party preparer or software. New electronic form-signing capabilities and phone chatbots also are being made available, the IRS said. Werfel said reduced funding would cause new technology advances to "stagnate" and recently rolled-out tools will have fewer employees supporting them, creating longer wait times for taxpayers with issues. It also will hurt revenue collections as the rebuilding of the IRS' capacity for sophisticated audits of wealthy taxpayers suffers, he added. Sign up here. https://www.reuters.com/markets/us/irs-says-taxpayer-service-will-suffer-if-congress-cuts-modernization-funds-2025-01-10/