foreign chipmakers

Nvidia's market share in China has fallen to zero. CEO Jensen Huang believes the market will eventually reopen. US President Donald Trump discussed chip issues with Chinese leaders. China is prioritizing homegrown chips from companies like Huawei. This situation poses a significant risk to Nvidia's substantial business opportunities in the region.

During their discussions, President Trump and Xi Jinping placed Taiwan at the forefront of their diplomatic agenda. Trump perceives arms sales to Taiwan as a way to gain leverage, whereas Taiwan insists on its importance for regional harmony. Given its strategic significance in the technology sector, especially in chip manufacturing, any tension involving Taiwan could disturb the global economy.

President Trump's visit to China is overshadowed by the Iran War, which has disrupted global energy supplies and impacted his approval ratings. While trade and Taiwan remain on the agenda, the protracted conflict in Iran presents a significant challenge, with the US struggling to achieve its war aims and facing a decline in superpower status.

Anthropic's paper outlines two scenarios for US-China AI leadership by 2028. In one, the US maintains its compute advantage through tightened export controls, leading to democratic AI norms. The other sees China overtaking the US if policymakers fail to act, resulting in authoritarian AI dominance.

Despite a positive meeting, China is strategically expanding economic leverage against the US. New regulations target companies shifting supply chains and restrict foreign tech in state data centers. Beijing is building pressure tools, moving beyond trade, as both nations navigate a complex geopolitical landscape and competition for critical resources.

The United States has granted permission to South Korea's SK Hynix and Samsung to continue receiving chipmaking tools at their Chinese plants without applying for new licenses. This authorization comes after new rules were issued in October 2022, restricting shipments of advanced chips and chipmaking equipment to China. The move aims to slow down China's technological and military advancements.

India has significantly boosted iPhone production, now accounting for 25% of Apple's global output. For the first time, all iPhone 17 models are assembled in India, a move driven by US tariffs and Indian government incentives. This surge has positioned India as the top smartphone source for the US, surpassing China.

The Biden administration planned to introduce new rules limiting China's access to advanced AI chips and semiconductor equipment. The restrictions targeted US and South Korean firms, but exempted allies like Japan and the Netherlands. These measures aimed to curb China's technological progress and were expected to be announced by late August.

US lawmakers are urging the State and Commerce Departments to bolster export controls on advanced chipmaking equipment to China. Citing national security risks, they emphasize the need for allied cooperation to implement countrywide restrictions, warning that current entity-specific controls are insufficient. A briefing on the administration's strategy is requested within a month.

Chinese auto chipmaker GTA Semiconductor recently completed a largely state-funded financing round worth over $1.8 billion, state-backed Securities Times reported on Wednesday, with the move described as a clear signal to the domestic chip manufacturing industry that Beijing is still willing to invest in it.

India is set to get its first chip-making facility with IBM and STMicroelectronics in advanced stages of talks with the government for an investment of over Rs 50,000 crore.

The US is considering a new chip import policy that could require foreign governments to invest in US AI infrastructure for large AI chip shipments. This tiered approval system, influenced by recent Middle East agreements, aims to promote American tech and secure foreign investment in US AI capacity.

The Trump administration is reportedly planning tariffs on foreign electronic devices, calculated by chip content, to pressure companies into US manufacturing. White House spokesperson Kush Desai defended the move for national security. These proposed tariffs, potentially 25% on chip parts, could significantly raise consumer electronics prices, exacerbating current inflation.

A US official is urging Japan and the Netherlands to strengthen restrictions on semiconductor exports to China, aiming to limit China's access to advanced chipmaking technology. This follows earlier agreements and US imposed restrictions on equipment crucial for China's military modernization efforts, amid ongoing diplomatic efforts and trade controls.

China is mandating state-funded data centers to exclusively use domestic AI chips, instructing projects under construction to remove foreign components. This significant move aims to achieve AI chip self-sufficiency, impacting major foreign suppliers like Nvidia, AMD, and Intel. The directive underscores Beijing's accelerating push to reduce reliance on American technology amidst ongoing trade tensions.

The US plans to announce its third set of restrictions on China's semiconductor industry, targeting over 140 Chinese companies. The new measures aim to hinder China's development of advanced chips, especially for AI and military use. Export controls on critical technology and chipmaking equipment will be imposed, affecting both Chinese and international companies. China has strongly opposed these actions.

China's directive to eliminate foreign network chips by 2027 affects US chipmakers, leading to a shift to domestic options. Tensions between US and China drive Beijing to replace Western technology with local alternatives.

With existing facilities in Niigata prefecture, Fukui prefecture, and Taiwan, Shin-Etsu will utilize internal funds for this new venture. Japan is witnessing a surge in semiconductor sector investments, vital for defense, automotive, and electronics industries.

America has granted Samsung and SK Hynix yearly permits to send chipmaking tools to their Chinese plants until 2026. This replaces an older system with stricter annual reviews. These licenses allow factories to operate and maintain equipment. However, they do not permit expansion or upgrades to the newest technology. The US aims to limit China's access to advanced chip-making tools.

Nvidia has beaten Intel for the first time as the most valuable US chipmaker. The graphic component maker's shares rose 2.3% in afternoon trading on Wednesday to a record $404, putting its market capitalisation at $248 billion, just above the $246 billion value of Intel, once the world's leading chipmaker.

China has mandated domestic chipmakers to source at least 50% of their equipment locally, a move driven by US export restrictions. This policy, part of President Xi Jinping's tech strategy, aims for complete independence in chipmaking. While flexibility exists for advanced lines, China is pushing for 100% domestic reliance, impacting global players.

The Trump administration is reportedly developing a policy requiring semiconductor companies to match domestic chip production with imported volumes, or face tariffs up to 100%. This initiative aims to reduce foreign reliance and reshore manufacturing, with provisions for companies building new US facilities. While established US chipmakers could benefit, significant implementation challenges are expected.

Jaiprakash Associates has tied up with IBM and Israel’s Tower Jazz, while Hindustan Semiconductor Manufacturing Corporation (HSMC) has tied up with ST Microelectronics and Malaysia’s Siltera to set up two chip-making facilities, the government said on Friday.

Stepping up a feud with Washington over technology and security, China's government on Sunday told users of computer equipment deemed sensitive to stop buying products from the biggest U.S. memory chipmaker, Micron Technology Inc.

US administration may have another jolt in the offing for Chinese smartphone brand Huawei. It is considering changing US regulations to allow it to block shipments of chips to Huawei Technologies from companies such as Taiwan's TSMC, the world's largest contract chipmaker. The measure would be a blow to the world's no. 2 smartphone maker as well as to TSMC.

China intensifies efforts to bolster its AI chip industry, encouraging companies to opt for domestic products over Nvidia's amid US tensions. Beijing aims for semiconductor self-sufficiency and US sanction preparedness while maintaining the flexibility to use foreign chips if necessary.

The Indian government is evaluating $21 billion of semiconductor proposals, including plans for a $9 billion plant by Tower Semiconductor and an $8 billion chip fabrication unit by Tata Group. Renesas Electronics Corp and Murugappa Group's CG Power are also seeking to invest in chip facilities. Under India’s chipmaking incentive plan, the government would bear half the cost of any approved projects, with an initial budget of $10 billion for the task.

As Taiwan's presidential and parliamentary elections approach, the chipmaker TSMC finds itself caught in the political crossfire. The opposition candidate claims that tensions with China have made Taiwan a risky place for investment, pointing to TSMC's plans to expand overseas. However, TSMC and the Taiwanese government emphasise that the majority of manufacturing will remain on the island.

In a move reminiscent of the 2008 financial crisis intervention, the US government is acquiring a 10% stake in Intel, a deal triggered after CEO Lip-Bu Tan's meeting with Donald Trump. Intel warns this could negatively impact international sales, especially in China, which accounts for 29% of its revenue.