These are the most-read DIGITIMES Asia stories in the week of January 6 – January 10.
China imposes customs measures in response to US sanctions
Amid rising US-China trade tensions, key manufacturing equipment is being held at Chinese customs, disrupting Taiwanese and Chinese manufacturers' plans to relocate production lines out of China. The delays, which have intensified since late 2024, are seen as China's retaliation against US sanctions, using export controls to slow supply chain shifts.
CXMT begins DDR5 mass production, reportedly validated by key Chinese server makers
CXMT is advancing toward mass production of DDR5 chips, driven by China's localization policies. Despite concerns over production yields and cost disadvantages, CXMT's DDR5 chips have reportedly passed validation by major Chinese server manufacturers, marking significant progress in China's push for semiconductor self-sufficiency.
China's smartphone market faces upheaval as Huawei introduces new variables
Since its market comeback in August 2023, Huawei has shown significant momentum in China's smartphone market, particularly in the high-end segment. In 2024, competition among the top five smartphone brands—Apple, Oppo, Vivo, Honor, and Xiaomi—has been fierce, resembling a game of musical chairs. Each brand holds about 20% market share, making the market highly fragmented and competitive.
US bans to continually drive China's AI chip adaptation in 2025
Chinese AI chip development is accelerating despite tighter US technology restrictions. New US measures in early 2025 have increased tariffs on Chinese tech products and expanded restrictions on US investments in China's semiconductor, AI, quantum computing, and microelectronics sectors. However, these measures are driving domestic innovation and strategic adaptations in China's AI industry.
China's wafer fabs turn to overseas talent for semiconductor innovation
Hua Hong Semiconductor has appointed Peng Bai, a former Intel executive, as its new CEO, signaling a major shift from its traditional practice of promoting leaders internally. This move reflects China's growing reliance on overseas returnees and globally experienced professionals to accelerate its semiconductor development and overcome organic growth limitations.
ASML CEO leads high-level delegation to TSMC next week
Ahead of TSMC's earnings report on January 16, 2025, ASML CEO Christophe Fouquet will visit Taiwan with senior executives to meet with TSMC's top leaders. The visit aims to strengthen ties, discuss geopolitical impacts—especially the inauguration of Donald Trump as US President—and encourage TSMC to accelerate orders for High NA EUV equipment, valued at about US$380 million each.
US blacklists Chinese DRAM maker CXMT as warning rather than substantive measure
CXMT has been added to the US Department of Defense's (DoD) blacklist, allegedly due to ties with the Chinese military. However, industry experts view this move as a warning rather than a substantive sanction, as the DoD was unlikely to use CXMT's DRAM chips in the first place.