Good morning, and happy 2023. We’re covering huge U.S. investments in the chip industry and North Korea’s vow of nuclear escalation. |
 | | Susan Burghart |
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Vast U.S. investments may not be a panacea for the chip industry |
The boom has implications for global technological leadership and geopolitics, with the U.S. aiming to prevent China from becoming an advanced power in chips, the slices of silicon that are vital in electronics from smartphones to smart missiles. |
About 22 percent of all chips and more than 90 percent of the most advanced chips are made in Taiwan, the island to which China claims territorial rights. That has caused fears that semiconductor supply chains may be disrupted in the event of a conflict, leaving the U.S. at a technological disadvantage. |
The new U.S. production efforts may correct some of these imbalances, industry executives say — but only up to a point. One study suggested that $50 billion in investment would take the U.S. share of global production to as much as 14 percent by 2030. |
Numbers: The Biden administration is dangling at least $76 billion in subsidies to encourage domestic chip production. More than 35 companies have pledged nearly $200 billion for manufacturing projects related to chips since the spring of 2020, according to a trade group. |
Challenges: The new factories would take years to build, and might not immediately be able to manufacture the most complex chips. Companies could delay or cancel projects if they don’t receive sufficient subsidies. And a severe shortage of engineers and technicians could undercut the boom. |
 | | Multiple rocket launchers at a ceremony in Pyongyang.Korean Central News Agency, via Reuters |
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North Korea threatens nuclear escalation |
Kim, who spoke at a five-day meeting of the ruling Workers’ Party, framed the escalation as a response to a harder line on the North by Yoon Suk Yeol, South Korea’s new conservative president. |
North Korea will “respond with nuke for nuke, and an all-out confrontation for an all-out confrontation, in order to deal with the enemy’s rash acts and reckless moves,” Kim said on Saturday. |
Context: North Korea’s economy has been ravaged by the pandemic and sanctions, Kim has warned of food shortages caused by flooding and the value of the North Korean currency has plummeted against the dollar. Analysts say Kim seems to see his nuclear arsenal as the most effective means of elevating his leadership credentials among his people. |
 | | A hotel hit by a Russian strike on Saturday in Kyiv, Ukraine’s capital.Laura Boushnak for The New York Times |
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Zelensky calls 2022 “our year” as Russia bombards Ukraine |
The explosions did not stop Zelensky. He used the address to reinforce the story line of Ukrainian resilience against unfounded Russian aggression that he has presented to audiences at home and abroad since Russia invaded. |
In Russia, which has lost much of the territory it occupied and suffered military defeats against Ukraine’s far-smaller military, President Vladimir Putin called the war “a sacred duty to our ancestors and descendants” in his own New Year’s address. (Some of Putin’s critics sent their own New Year’s messages from jail.) |
Quotable: “This year began on Feb. 24,” Zelensky said, the date Russia first invaded Ukraine. “It can still be dark, loud and complicated for us. But we will definitely never be afraid again.” |
China: Putin met with Xi Jinping, China’s top leader, in a video call on Friday. China accounted for more than a quarter of Russia’s total imports in the first nine months of 2022. |
 | | Mauricio Lima for The New York Times |
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- The upheaval caused by Russia’s war in Ukraine has fueled India’s global ascent.
- Reuters reports multiple casualties after an explosion outside Kabul’s military airport.
- Canada and Australia have joined a growing list of countries that have begun imposing Covid-testing requirements on travelers from China, The Associated Press writes.
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 | | Supporters of Jair Bolsonaro demonstrating against the election results in Brasília last week.Evaristo Sa/Agence France-Presse — Getty Images |
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- Elise Stefanik, a Republican congresswoman from New York who was once known as a moderate, has embarked on a brazen political transformation into a fervent Trump apologist to attain power in her party.
- Our national religion correspondent spoke with scientists, philosophers and spiritual leaders about a question at the heart of America’s abortion debate: When does life begin?
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 | | Benedict at Castel Gandolfo, south of Rome, in February 2013.Osservatore Romano, via Reuters |
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A new year, with low expectations |
Not long before Christmas, Erin Monroe posted a video on TikTok suggesting a different approach to the new year. “I don’t need 2023 to be my year,” she said. “I need it to not be a soul-sucking drag through earthly purgatory.” |
The message struck a chord. Within two days, the video had 1.8 million views and thousands of comments. |
A recent survey conducted by Ipsos found that only 65 percent of respondents reported feeling optimistic that 2023 would be better than 2022, compared with 77 percent last year. |
Jacob McCleery, a 28-year-old from South Bend, Ind., said “it’s a little pessimistic, but let’s let this year be what it is and be OK with the results.” |
He added, “We need to protect ourselves a little bit so we don’t get disappointed.” |
 | | Armando Rafael for The New York Times |
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Paris-Brest, praline-flavored mousseline piped inside a ring of pâte à choux, is a showstopping New Year’s dessert. |
V.V. Ganeshananthan’s novel “Brotherless Night” is about the ugly little human complexities words like “terrorist” are designed to obliterate, our reviewer writes. |
Play the Mini Crossword, and a clue: N.B.A. icon who famously wore 23 (six letters). |
That’s it for Day 1 of 2023. See you soon. — Dan |
Here’s Friday’s edition of “The Daily,” an update on a young man who fled Putin’s draft. |
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