China's silicon carbide (SiC) end-market demand is expanding rapidly, driven by high-voltage charging infrastructure and AI servers. The surge in orders has tightened SiC wafer capacity in China, and some offshore companies seeking foundry partners there have reportedly been turned away, pushing spillover business toward Taiwan, where Episil, HYS, and Diodes are among the names cited as potential beneficiaries.
Industry sources say Valve is expected to launch a new Steam Deck in 2027, setting up a tougher contest for Taiwanese original design manufacturer (ODM) Quanta as China's Huaqin moves to win the manufacturing order. The winner has not yet been confirmed.
China's FD-SOI supply chain is taking shape through a new round of investment. Changcun Capital, the investment platform backed by YMTC, participated in a strategic investment in FD-SOI developer Ruili Pingxin Microelectronics in August, drawing attention to whether Chinese semiconductor capital is expanding beyond memory manufacturing into specialty logic and wafer foundry technologies.
Global memory shortages remain severe, with AI and cloud applications intensifying demand for scarce supply. Prices for both DRAM and NAND flash have risen sharply, while China's two flagship memory makers, CXMT and YMTC, are preparing to break from their long-standing division of the market.
Chinese EV maker Xpeng is planning to offer its technology to foreign automakers beyond Volkswagen, according to people familiar with the matter, as technology licensing emerges as a new revenue engine for the company.
South Korea and the US have hit an impasse in final-stage investment talks over commercial viability safeguards, with South Korean President Lee Jae-myung saying that some parts are hard to accept. The deadlock is raising concerns that the months-long negotiations over South Korea's investment plans in the US could collapse.
Leading Interconnect Semiconductor, a Zhen Ding Technology subsidiary, has broken ground on an AI advanced packaging substrate project in Bao'an, Shenzhen, with total investment expected to be at least CNY12 billion (approx. US$1.79 billion). The new site is designed to add four factories and expand the company's ability to develop, manufacture, and deliver high-end flip-chip ball grid array (FCBGA) products for AI, high-performance computing (HPC), and advanced packaging customers.
AI's shift from data centers into cars, robots, wearables, and connected devices is widening the market for fully depleted silicon-on-insulator (FD-SOI), while China is building a domestic supply chain spanning substrates, foundry capacity, and chip design.
Tower Semiconductor plans to make Japan its largest manufacturing base for optical communications semiconductors after expanding silicon photonics (SiPh), silicon germanium (SiGe), and advanced packaging capacity in the Hokuriku region, as demand from AI data centers accelerates.
