These are the most-read DIGITIMES Asia stories from the week of March 3 – March 7.
DeepSeek's value lies in open-source innovation, not cost, says AMD CEO Lisa Su
Nvidia's CEO Jensen Huang recently reinforced confidence in AI's long-term growth, while AMD's CEO Lisa Su outlined a different approach at Stanford's View From The Top. Su emphasized AMD's commitment to open-source AI, contrasting Nvidia's tightly integrated ecosystem. She highlighted AMD's resurgence under her leadership and its strategy to provide flexible AI solutions across cloud, edge, and consumer devices.
While Nvidia offers a seamless AI stack, AMD focuses on adaptability and ecosystem expansion. The rise of DeepSeek underscores the power of open-source innovation, aligning with AMD's approach. Su remains optimistic about AI's future, emphasizing that the industry is still in its early stages and that open ecosystems will play a crucial role in driving AI accessibility and growth.
HP slash 2,000 jobs: offshoring 90% of China manufacturing for North America by 4Q25
HP is cutting up to 2,000 jobs and reducing its reliance on Chinese manufacturing for the North American market due to rising US tariffs and component costs. The company reported US$13.5 billion in revenue for the first quarter of fiscal year 2025, with PC sales rising 4.7% but consumer demand declining. However, net profit fell 9.16% due to higher costs. To mitigate tariff impacts, HP plans to source less than 10% of North American sales from China by October 2025 while expanding production in Thailand.
The company's broader strategy includes manufacturing 70% of its laptops outside China within a few years. As part of its "Future Now" initiative, HP is increasing job cuts from 7,000 to 9,000, with expected annual savings of US$300 million. The company is also reallocating resources to AI and customer experience investments. HP's restructuring aims to strengthen its global market position amid geopolitical challenges.
Between Washington and Taipei, TSMC aims to avert being strapped with Intel rescue
TSMC Chairman C.C. Wei announced a US$100 billion investment in the US, citing rising demand from American clients. While ensuring Taiwan's production lines remain on track, the move aims to enhance US semiconductor capabilities and mitigate geopolitical risks. Wei held separate press conferences with US President Donald Trump and Taiwan's President Ching-Te Lai, highlighting differing narratives. Trump framed the investment as a national security measure, while Wei emphasized customer-driven expansion.
Industry experts note the immense pressure TSMC faces from global powers. Despite high production costs and labor challenges, American clients like Apple, Nvidia, and Intel rely heavily on TSMC, which dominates advanced chip manufacturing. TSMC's US R&D center will support local production, but concerns remain over technology transfer risks.
While TSMC is expanding, doubts persist about long-term success, given costs, workforce limitations, and geopolitical complexities. Analysts see this move as both a necessity and a strategic risk, as TSMC remains central to the global semiconductor supply chain.
Behind the Scenes: How Mark Liu and Micron CEO Sanjay Mehrotra Are Forging a New Era in US Chip Strategy
Following his retirement as TSMC chairman, Mark Liu has joined Micron Technology's board, reinforcing ties between Micron and TSMC. Liu and Micron CEO Sanjay Mehrotra share a long-standing professional relationship, and industry analysts see his appointment as aligning with US semiconductor manufacturing strategy. While earlier speculation suggested Liu might lead Intel, he instead co-founded the Technology Competitiveness and Industrial Policy Center (TCIP) at UC Berkeley, aiming to enhance US tech and manufacturing competitiveness.
Micron's focus on high bandwidth memory (HBM) has deepened its collaborations with TSMC, as memory and logic chip advancements increasingly overlap. Although Liu is not directly involved in technical developments, his presence strengthens Micron's strategic positioning. Liu's appointment reflects broader US efforts to regain semiconductor leadership, with his experience bridging innovation, policy, and manufacturing. His influence is expected to guide Micron's advanced packaging investments and contribute to national semiconductor strategies.
Micron outpaces Samsung in DRAM race among HBM competition
Micron has delivered its sixth-generation 10nm DRAM (1γ/1c DRAM) ahead of schedule, surpassing Samsung Electronics, which faces yield issues and production delays. Micron's DRAM, its first using EUV lithography, offers 15% faster speeds (9200 MT/s) and 20% lower power consumption.
Samsung planned mass production by late 2024, but setbacks have delayed it to May 2025 or later. Yield challenges have forced chip design modifications, with results expected by March–April 2025. These delays threaten Samsung's HBM4 competitiveness, as Micron already supplies HBM3E chips to Nvidia, with twelve-layer versions in testing.
To catch up, Samsung is investing in 1c DRAM production at its P4 plant, while SK Hynix has stabilized 1c DRAM mass production since August 2024. With competition intensifying, Samsung must resolve its yield issues quickly to maintain its position in the memory market.
C.C. Wei responds to Trump's call to end CHIPS Act funding: TSMC asks only for fairness
TSMC has announced a US$100 billion investment in the US, including three wafer fabs, two packaging facilities, and an R&D center, sparking mixed reactions. CEO C.C. Wei emphasized that customer demand drives global expansion, with TSMC's production lines fully booked until 2026.
Despite the US investment, Wei reaffirmed TSMC's commitment to Taiwan, citing plans for 11 production lines by 2025. He highlighted US government support and local talent as key factors for expansion, while Taiwan remains the core of advanced R&D, with 10,000 engineers working on next-gen nodes like 2nm and 1nm.
Wei downplayed concerns about technology gaps between Taiwan and the US, explaining that cutting-edge R&D happens in Taiwan before production moves abroad. He also clarified that TSMC's US expansion is driven by client needs, not subsidies, ensuring Taiwan's role remains central in semiconductor leadership.
Intel foundry future in limbo: Analysts push for exit amid ex-board alarm
Citi analyst Chris Danely has suggested that Intel should exit the wafer foundry business, as it struggles to attract customers despite its advanced process capabilities. Former Intel board members warned that a proposal by US President Donald Trump to force TSMC to take over Intel's fabs would harm the US chip industry. Instead, they believe Intel's foundries should be sold only to private Western investors, with US government backing and major chip vendors required to use Intel's services.
However, US chipmakers remain reluctant to outsource to Intel, even with government incentives. Despite Samsung's lower prices, companies like Apple, Nvidia, and Qualcomm still prefer TSMC due to its manufacturing expertise and customer trust. TSMC founder Morris Chang claimed that Apple's Tim Cook privately admitted that Intel lacks understanding of wafer foundry operations. With TSMC building fabs in the US, industry leaders see no need for Intel Foundry, raising doubts about the effectiveness of Trump's proposed intervention.
Article edited by Jack Wu
