Jensen Huang, the CEO of Nvidia, conducted a whirlwind visit to Taiwan last week. Departing from its previous low-profile stance, Nvidia has taken a bold approach this time, criticizing the new AI regulations set forth by the Biden administration even before their official announcement on January 13, 2025. While the "AI Diffusion" rule aims to strengthen US control over AI chip sales, it also transforms AI chips into diplomatic tools, serving as leverage for negotiations regarding geopolitical and technological concessions from other countries.
In the early hours of January 21, a powerful 6.4-magnitude earthquake hit Chiayi, Taiwan, forcing leading semiconductor manufacturers—TSMC, UMC, and Innolux—to implement precautionary shutdowns of their production lines. In response, teams of engineers were swiftly mobilized overnight to evaluate the damage and restore production efficiency.
In response to US sanctions and subsidies benefiting American chipmakers, China has announced countermeasures targeting the industry. Among the few American companies dominating this space, Texas Instruments (TI) stands at the forefront of China's investigation.
Socionext, a Japanese IC design house, is advancing plans to develop semiconductor products utilizing 2nm process technology in North America. While the company considers Rapidus, currently developing 2nm mass production technology, as a potential manufacturing partner, it maintains a robust partnership with TSMC.
Rohm Semiconductor, a leading Japanese electronics company, is poised to incur a consolidated net loss of JPY6 billion (US$39 million) for fiscal year 2024 (April 2024 - March 2025), marking its first deficit since 2012. The anticipated downturn comes amid weakening demand for power semiconductors in the electric vehicle (EV) market, a key revenue driver. In response, the company is implementing significant leadership changes and operational adjustments.
GlobalFoundries has unveiled plans to invest US$575 million in a cutting-edge advanced packaging and photonics center at its Malta, New York, facility. This ambitious project is designed to enable the complete domestic production, packaging, and testing of semiconductor components, addressing critical supply chain and national security concerns for the US.
Despite concerns over President-elect Trump's criticism of Taiwan's alleged semiconductor industry appropriation, TSMC's CFO Wendell Huang expressed confidence that the company will continue receiving CHIPS Act funding as its Arizona projects progress.
As Donald Trump returns to the White House, South Korean industries are closely monitoring the potential implementation of anticipated executive orders and their implications for critical sectors such as semiconductors, automotive manufacturing, and steel production. While these industries face considerable risks, others, including drones, shipbuilding, and aerospace, may find growth opportunities.
Nvidia CEO Jensen Huang wrapped up a fast-paced 55-hour visit to Taiwan, underscoring the country's role in the global AI and semiconductor industries. During his stay from January 16 to 19, Huang engaged with top industry leaders, visited key manufacturing sites, and expressed his deep appreciation for the contributions of Taiwan's supply chain partners.
Recent reports indicate that upon taking office, Trump will swiftly sign numerous executive orders. Many semiconductor manufacturers have expressed that while artificial intelligence remains a major growth driver, numerous business and strategic development plans are on hold until Trump's actual policy direction becomes clear.
Donald Trump is set to return to the White House on January 20 and is poised to sign over 20 executive orders targeting immigration, energy, and tax policies. The actions are expected to ripple through the US, neighboring countries, and global industries.
Chinese industry experts have denounced the latest US chip restrictions on China as President Joe Biden's "final act of irrationality" before leaving office, with the measures taking effect just ahead of the Chinese Spring Festival.
India hits bottlenecks in its efforts toward developing a display manufacturing ecosystem. Tata Electronics is making progress in acquiring Pegatron India and reportedly talking with Android smartphone vendors for contract manufacturing collaboration.
Intel Foundry has announced the addition of two new defense industrial base (DIB) customers, Trusted Semiconductor Solutions and Reliable MicroSystems, as part of the third phase of the Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) efforts under the Trusted & Assured Microelectronics (T&AM) Program in the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)).
AI cloud computing will remain the primary growth driver for the tech industry in 2025, while the outlook for consumer AI applications remains mixed, largely hinging on whether users can be convinced of the need to replace their devices, according to sources at IC design houses.
Strong AI-related demand will drive TSMC's 20% compound annual growth rate in revenue over the next five years, according to chairman C.C. Wei during the company's latest earnings call. This optimistic outlook aligns with broader server supply chain indicators, as order and shipment volumes demonstrate continued momentum in AI server demand, even amid concerns about GB200 shipments.
The US Department of Commerce announced on January 16, 2025, that the CHIPS Program's National Advanced Packaging Manufacturing Program (NAPMP) has finalized US$1.4 billion in awards to strengthen US leadership in advanced packaging. This funding will support both the validation and transition of new technologies to large-scale domestic manufacturing, with the goal of creating a self-sustaining, high-volume advanced packaging industry within the US.
The automotive industry was once considered to be a key driver for Taiwan's semiconductor supply chain, prompting its makers to get in line with the global trend of regionalized production. But the automotive industry has been mired in turmoil in the past few quarters, with no improvements to be seen anytime soon. Automotive chips are expected to remain on the sidelines in the foreseeable future.
TSMC CEO C.C. Wei has dismissed recent market speculation indicating Nvidia is cutting back its demand for Chip-on-Wafer-on-Substrate (CoWoS) packaging capacity.
The US has introduced stricter export controls on chips with 30 billion transistors at 16/14nm nodes to limit Chinese access to advanced processors. Industry sources indicate that this will immediately impact Chinese AI accelerator developers.
Japanese chip gear makers trimmed their revenue forecast for fiscal 2025, citing fears of a slowdown in spending in China as well as by makers of automotive and power chips.
China will investigate allegations that the US dumps lower-end chips and unfairly subsidizes its own chipmakers, in potentially one of Beijing's strongest retaliatory moves against American technology sanctions. The government will look into the question of whether the US is giving its chipmakers an unfair advantage through incentives and grants, or illegally undercutting Chinese products, the Commerce Ministry said in a statement on January 16.
Statistics from Taiwan's Ministry of Finance show a significant trade surplus with the US of US$64.88 billion. Coinciding with Donald Trump's second term as President, it may put Taiwan in a delicate position.
