These are the most-read DIGITIMES Asia stories from the week of February 10 – February 14.
Apple makes manufacturing pivot: scales back Vietnam MacBook production, ramps up India operations
Apple is scaling back its planned MacBook production expansion in Vietnam, shifting its focus toward India. This change stems from three key factors—the unpredictability of Trump-era trade policies, evolving market conditions, and Apple's broader product strategy. Despite Vietnam becoming Apple's fourth-largest production hub by 2023, the company is reassessing its expansion plans due to cost considerations and the absence of tariffs on notebook products.
Meanwhile, Apple is doubling down on India, driven by the country's growing middle class, strong labor market, and rising iPhone sales, expected to surge by 41% in 2024. With India poised to surpass China as a workforce leader by 2030, Apple is ensuring its presence there, particularly for iPhone manufacturing, which remains its most crucial product. The company's strategic pivot highlights its adaptability in balancing global market opportunities with geopolitical challenges.
Chinese IC firms may shift 14nm orders to SMIC following TSMC's enforcement of BIS whitelist
TSMC has suspended shipments of chips at 16/14nm or smaller nodes for several Chinese IC design firms due to a lack of "approved OSAT" status on the US BIS whitelist. This restriction may push Chinese firms to shift their production to domestic foundries like SMIC and local packaging facilities.
Although SMIC may stand to benefit from increased orders, US export controls have slowed SMIC's progress in advanced chip manufacturing, limiting its ability to scale up 14nm and smaller nodes. As a result, Chinese firms must quickly secure compliant packaging operations to avoid shipment disruptions, further reshaping China's semiconductor industry.
TSMC US board secret talks: Trump floats three options to boost Intel
TSMC's recent board meeting in Arizona did not confirm new fab expansions or leadership changes but highlighted ongoing confidential talks with the US government. The US has proposed three options to strengthen domestic semiconductor production and support Intel. TSMC could build a US-based packaging plant, but it has previously resisted due to labor shortages and low margins. TSMC and other companies may invest in Intel's foundry business, involving a potential technology transfer; Intel could take over TSMC's packaging contracts for US clients like Apple.
Mature-node semiconductor oversupply hits SMIC and Hua Hong, weighs upon Taiwanese foundries
Chinese foundries, led by SMIC and Hua Hong Semiconductor, have aggressively expanded mature-node production, causing oversupply and sharp price cuts. This has strained profitability despite government subsidies. Overall, the Chinese price war is intensifying, pressuring both domestic and international semiconductor players.
DeepSeek reportedly exploring in-house chip development
Chinese AI firm DeepSeek is aggressively recruiting semiconductor design talent, signaling potential plans to develop proprietary processors for AI applications. Currently, DeepSeek faces numerous challenges, including the need to establish a strong foundation in technological R&D and meet international standards in core technology development, design, and fabrication. As a result, its long-term strategy for self-developed chips remains uncertain. DeepSeek's ability to develop competitive AI chips could play a key role in China's long-term position in global AI computing.
CXMT advances to 16nm DRAM production, pushes 15nm development
ChangXin Memory Technologies (CXMT) has reportedly accelerated its next-generation DRAM development, transitioning from 17nm to 16nm process technology for its first DDR5 product. The company is also advancing 15nm DRAM, with plans to complete R&D by 2025 and begin mass production in late 2026. CXMT's rapid development signals a more competitive global DRAM landscape, posing a growing challenge to industry leaders Samsung, SK Hynix, and Micron.
Intel-TSMC partnership: potential semiconductor power shift?
The semiconductor industry is bracing for a potential shake-up amid reports that the US government is pushing for Intel to spin off its manufacturing operations into a new entity, with TSMC participating in a joint venture. If implemented, this restructuring could significantly alter the semiconductor landscape, boosting US manufacturing and supply chain security while reshaping global competition. However, execution challenges related to governance, technology sharing, and market dynamics remain key concerns.
