These are the most-read DIGITIMES Asia stories in the week of December 30 – January 3.
STSP emerges as global chipmaking hub after almost 30 years of development
The Southern Taiwan Science Park (STSP) has evolved over nearly three decades into a global semiconductor production hub, achieving a remarkable output increase from NT$1 trillion (approx. US$305.15 billion) in 2021 to NT$1.59 trillion in 2023, with expectations to exceed NT$2 trillion in 2024. Initially focused on optoelectronics, with companies like CMO leading the display panel industry, STSP has shifted toward semiconductor production, especially after TSMC established advanced fabs there.
US government seeks public opinion to ban Chinese-made drones, targeting DJI
The US government is seeking public input on proposed rules to secure the ICTS supply chain for drones, potentially limiting Chinese drones, which dominate US markets. In October 2024, DJI initiated legal action against the Defense Department over its inclusion on a list of firms purportedly linked to China's military, arguing that this designation is inaccurate and financially damaging.
India's machine tool demand surges, Japanese firms seek growth as Chinese competition intensifies
The Make in India initiative is showing results, with companies like Apple outsourcing iPhone production to India and Suzuki and Tata Motors boosting vehicle sales. Anticipating further growth, the JMTBA plans to debut a dedicated pavilion for Japanese manufacturers at the IMTEX 2025 exhibition in India. Firms like Brother Industries, DMG Mori, and Shibaura Machine are increasing their investments and presence in the region. Although Japanese manufacturers excel technologically, Chinese companies have grown their market share using low-cost strategies.
AI and semiconductors drive global industrial growth in 2025
As 2025 begins, the demand for semiconductors, AI servers, and related components remains robust, despite geopolitical tensions and global economic challenges affecting the electronics industry. The industry is set for further growth, driven by an increased demand for smartphones and notebooks throughout the year. A significant development in 2025 will be the mass production launch using 2nm process technology by TSMC, Intel, and Samsung Electronics, providing fresh growth momentum for company revenues.
European chipmakers pivot to domestic production in China
STMicroelectronics (STM), NXP, and Infineon have recently announced plans to establish local chip manufacturing supply chains in China. The three European semiconductor giants are aligning their products with Chinese foundries to further enhance the localization of manufacturing, addressing Chinese customers' concerns regarding supply chain security. These companies aim to maintain their positions and interests in the Chinese market, avoiding encroachment by local competitors.
CanSemi begins production, boosts analog IC output by 40,000 wafers monthly
Guangzhou-based CanSemi Technology has launched production for its third-phase project, representing a CNY16.25 billion (approx. US$2.23 billion) investment. The new facility adds monthly capacity for 40,000 12-inch wafers, utilizing 180–90nm technology to establish a platform tailored to industrial and automotive-grade analog IC production. The facility's output is geared toward a diverse range of products, including power devices for power electronics, servers, 5G base stations, automotive applications, signal chain chips, power management ICs, MCUs, and image sensors.
TSMC talent poaching limits highlighted by Samsung exec departure
Following the widely reported departure of Jing-cheng "Vic" Lin (J. C. Lin) from Samsung Electronics in December 2024, industry analysts are now assessing the impact of his brief tenure. Unlike Mong-Song Liang, whose expertise propelled Samsung's transition to 14nm processes and secured significant Apple orders, Lin's tenure produced no comparable breakthroughs. Samsung's efforts to bridge the gap with TSMC in advanced packaging remain hampered by systemic and contextual challenges.