Boeing Plans to Build Hypersonic Airplane

The Boeing Company logo. (Reuters)
The Boeing Company logo. (Reuters)
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Boeing Plans to Build Hypersonic Airplane

The Boeing Company logo. (Reuters)
The Boeing Company logo. (Reuters)

Boeing unveiled a plan to build its first-ever hypersonic passenger plane at an aerospace conference in Atlanta.

While the idea and potential of the plane will generate plenty of buzz, this is a concept that is likely decades from being built.

The hypersonic passenger plane could, in theory, fly as fast as Mach 5, or just under 5149.9 km per hour. That would allow the plane to carry passengers between Los Angeles and Tokyo in roughly three hours. A flight from New York to London could be as quick as two hours.

Right now, those flights take about 11 hours and 7 hours, respectively.

Boeing CEO Dennis Muilenburg stated at the Paris Air Show last year: "I think in the next decade or two you're going to see them become a reality. We see future innovations where you could connect around the world in about two hours."

How will Boeing and other aerospace companies build passenger planes that can safely fly between far-flung locations in just a few hours?

The key will be the development of lightweight materials for the fuselage and new engines that will propel the jets at greater speeds. All of that will take years to be designed and tested.

Then there is the question of cost.

How willing is Boeing to potentially spend billions of dollars over the next 20 to 30 years to build a hypersonic passenger plane? If the jet is built, will the costs be low enough to make it a profitable plane for airlines to fly on a regular basis?

John Plueger, president and CEO of AirLease Corp., has been skeptical of a hypersonic jet flying with airlines.

"It's hard for me to see, at least in the next 15-20 years, that it’s going to be so cost competitive that it’s going to compel the airlines to take a stab at it," he said.



Apple Leads Surge in Global Tech Shares after Trump Tariff Relief

A plaque commemorating President Donald Trump’s and Apple CEO Tim Cook's announcement an additional $100 billion Apple investment in the US in the Oval Office of the White House in Washington, DC, USA, 06 August 2025. EPA/BONNIE CASH / POOL
A plaque commemorating President Donald Trump’s and Apple CEO Tim Cook's announcement an additional $100 billion Apple investment in the US in the Oval Office of the White House in Washington, DC, USA, 06 August 2025. EPA/BONNIE CASH / POOL
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Apple Leads Surge in Global Tech Shares after Trump Tariff Relief

A plaque commemorating President Donald Trump’s and Apple CEO Tim Cook's announcement an additional $100 billion Apple investment in the US in the Oval Office of the White House in Washington, DC, USA, 06 August 2025. EPA/BONNIE CASH / POOL
A plaque commemorating President Donald Trump’s and Apple CEO Tim Cook's announcement an additional $100 billion Apple investment in the US in the Oval Office of the White House in Washington, DC, USA, 06 August 2025. EPA/BONNIE CASH / POOL

Global technology stocks advanced on Thursday in a relief rally after the latest tariff salvo from US President Donald Trump largely exempted industry heavyweights from his threat to impose 100% levy on chips and semiconductors.

Trump said the new tariff rate would apply to "all chips and semiconductors coming into the United States," but would not apply to companies that had made a commitment to manufacture in the US or were in the process of doing so.

Apple's stock rose 3.3% in premarket trading after Trump's announcement on Wednesday that the company will invest an additional $100 billion in the US, a move that could help it sidestep potential tariffs on iPhones.

US-listed chipmakers advanced broadly, with Advanced Micro Devices up 2.5%, Intel gaining 2.1% and Nvidia up 1.1%, Reuters reported.

"A major uncertainty has been removed and investors can finally move on," UBS analysts said in a note.

Semiconductor manufacturing equipment supplier Applied Materials and chipmakers Texas Instruments, GlobalFoundries and Broadcom - Apple's partners in the investment effort - climbed between 0.8% and 10.1%.

European chipmakers also joined the rally, with ASML , ASMI and BE Semiconductor Industries climbing about 3% each.

Germany's Infineon said it could not speculate on possible semiconductor tariffs, as no details have been disclosed yet. Its shares were up 0.6%.

Trump's latest on semiconductor tariffs seemingly rules out Taiwanese chip contract manufacturer TSMC, which makes chips for most US companies, including Nvidia, as it has factories in the US.

"The market remains keen to buy TSMC on dips. Investors also believe they need to remain positioned in AI - with or without tariffs," UBS analysts said.

TSMC shares closed almost 5% higher to hit all-time highs, while Samsung Electronics and SK Hynix climbed 2.5% and 1.4%, respectively.

South Korea's Samsung and SK Hynix will also not be subjected to 100% tariffs on chips, the country's top trade envoy said.

Samsung has invested in two chip fabrication plants in Austin and Taylor, Texas, while SK Hynix has announced plans to build an advanced chip packaging plant and research and development facility for artificial intelligence products in Indiana.

Since stepping into the White House in January, Donald Trump has made several tariff threats, specifically on semiconductors, aimed at reshaping the supply chain of the industry and spurring domestic production.

"The (100% tariff) figure fits Trump's approach of 'open high, negotiate down' and the final figure could be similar to reciprocal tariffs to limit inflation in consumer goods, given that many have chips," said Phelix Lee, senior equity analyst at Morningstar.

Not everyone has come out of the latest blitz on the right side, with the Philippines and Malaysia looking to find out more details about the tariff rate.

Dan Lachica, the president of the trade body for the Philippine semiconductor industry, said 70% of its electronics exports are semiconductors and the new tariff rate would be "devastating". Philippine stocks were down 0.1% after falling as much as 0.9% during the day.

Malaysia's trade minister said the country has reached out to US counterparts for clarity on the tariffs.