With US President Donald Trump accusing Taiwan of taking away America's semiconductor manufacturing, his remarks have already sent ripples through Taiwan's industry and even its national security landscape. In response, Taiwan's academic experts propose that TSMC establish a wholly-owned US subsidiary, American Semiconductor Manufacturing Company (ASMC), as the best potential solution to navigate geopolitical challenges and new US pressures.

US President Donald Trump, now back in the White House, has once again set his sights on TSMC. Previously, his administration championed the semiconductor supply chain crisis as a national security issue, urging the Taiwanese chip giant to establish manufacturing in the US. Now, the stakes have risen—Trump is threatening to freeze CHIPS Act subsidies, impose new semiconductor taxes, and, in an even more audacious move, reportedly demand that TSMC step in to save Intel.

Benefiting from the booming demand for testing related to artificial intelligence (AI), CCP Contact Probes, a probe development and manufacturing company, has optimized its product structure and is making strides in the semiconductor and electric vehicle (EV) sectors. Recently, positive news has emerged regarding test sockets and probes, which are expected to penetrate the advanced packaging supply chain for AI chips.

Although AI PCs underperformed market expectations in 2024, many industry players, from power semiconductor manufacturers to system providers, believe that significant growth will occur in the second half of 2025 as technology advances. Taiwanese power component manufacturer Panjit aims to capitalize on opportunities in the AI PC market through a diversified product line while also introducing its low-dropout regulator (LDO) products into the server sector, hoping to drive operational growth with AI servers.

Amid changing trade policies and rising geopolitical tensions, economic ties between Taiwan and Japan are strengthening. Taiwanese companies are eager to deepen their links with the Japanese supply chain, enter the Japanese market, and acquire Japanese firms, although their success varies greatly.

Since beginning his second term, US President Donald Trump has shaken up the international community and rattled the US government as he seeks to reorganize it. Trump's interest in the semiconductor industry has also made Taiwan his target.

US President Trump announced that starting in April 2025, a 25% tariff will be imposed on semiconductors, automobiles, and pharmaceuticals, with plans for gradual increases. Experts believe that US fabless and integrated device manufacturers (IDMs) will be compelled to fully absorb the tariff costs passed on by TSMC due to a lack of alternatives.

Despite the US's heightened curbs on AI chips against China, TSMC's 3nm and 5nm fab utilization rates have topped 100% in the first quarter of 2025, according to industry sources.

Chinese smartphone application processors (APs) shipments are expected to remain stable in the first quarter of 2025 despite the traditional off-season, supported by China's handset subsidy policy. Mid-to-high-end 5G models will likely appeal more to consumers within the subsidy-eligible price range, according to DIGITIMES' latest report covering Chinese smartphone AP market.

A report by the German Trade Office Taipei highlights that TSMC's fab construction in Dresden is enhancing Taiwan's profile and boosting collaboration with Germany. Taiwanese companies are exploring establishing facilities in Germany, while German businesses express enthusiasm about Taiwan's future.

Taiwan and the Netherlands have maintained a close long-term partnership in the semiconductor industry. To accelerate the development of silicon photonics (SiPh) technology, the International Heterogeneously Integrated Silicon Photonics Alliance (HiSPA) has officially signed a memorandum of understanding (MOU) with the Dutch research unit PhotonDelta through the Netherlands Office Taipei (NLOT), establishing a strategic partnership aimed at jointly promoting the growth of the photonic integrated circuit (PIC) industry.

In addition to its ongoing commitment to the automotive industry, Tsang Yow has reportedly set its sights on the high-growth semiconductor sector. The company stated that to meet the demands of its semiconductor clients, its Chiayi plant in Taiwan has accelerated certification processes and has gradually introduced trial production for four types of components at the end of 2024.

The Trump administration has reportedly urged TSMC to partner with Intel and expedite its investments in the US. Sources suggest that TSMC is weighing a controlling stake in Intel's factories, a move experts warn could be more harmful than beneficial. Taiwan's Minister of Economic Affairs J.W. Kuo stated that all foreign investments require approval, adding that no applications related to this proposal have been submitted thus far.

Donald Trump, President of the United States, has repeatedly signaled potential tariff increases on semiconductors and possible adjustments to the CHIPS Act subsidies, intensifying pressure on South Korean-based technology corporations such as Samsung Electronics and SK Hynix to ramp up their US investments.

China's aggressive price war in mature-node wafer manufacturing appears to be stabilizing, as Vanguard International Semiconductor (VIS) reports shifting customer orders. Chairman Leuh Fang said during an earnings call that while overcapacity in China will drive severe pricing pressure in 2024, the irrational competition has eroded trust, prompting global clients—particularly from the US—to diversify supply chains.

Shih-Jye Cheng, chairman of ChipMOS, a leading memory packaging and testing company, announced that the company's first-quarter revenue is expected to experience modest declines, primarily due to fewer working days and seasonal adjustments. This dip will affect both memory and driver IC sales.

STMicroelectronics (STMicro), a Franco-Italian chipmaking joint venture, is navigating significant pressures due to a downturn in key markets and internal performance concerns.

Fueled by the surging demand for CMOS Image Sensor (CIS) components in intelligent driving systems and consumer electronics, Will Semiconductor (WillSemi), the company behind OmniVision, has in recent years eclipsed its American and Japanese rivals to emerge as China's dominant supplier of sensor components. Orchestrating this remarkable ascent is the low-profile yet formidable Renrong Yu.

Samsung Electronics has reportedly started mass production of its Exynos 2500 application processor (AP) and will begin wafer testing as soon as March. Testing will be conducted by Nepes Ark and Doosan Tesna.

The Indian government has initiated a major upgrade of its semiconductor capabilities at the Semiconductor Laboratory (SCL), India's first wafer fab, in Mohali with an RFP. This move aims to modernize SCL's operations, potentially involving major firms like HCLTech and Tata Electronics.

Onsemi has announced a significant restructuring plan in response to the ongoing challenges in the automotive chip market. On February 25, 2025, the company revealed its intention to lay off approximately 2,400 employees, equating to about 9% of its global workforce, as part of its strategy to streamline operations and prioritize core business areas.

The Tata Group is set to expand its influence in the semiconductor sector by signing Memoranda of Understanding (MoUs) with ten semiconductor firms, reports India Today.

Taiwan-based GlobalWafers has reported sharp declines in profits for 2024, mainly as a result of mark-to-market valuation changes on its holdings of Germany-based Siltronic AG shares.

The Taiwan Semiconductor Research Institute (TSRI), under the National Science and Technology Council (NSTC), announced at a press conference held by Taiwan's National Applied Research Laboratories (NARLabs) on February 25 that it has successfully developed a new high-density, high-bandwidth 3D DRAM in cooperation with Taiwanese memory maker Macronix International.