Mar. 10

Policy Trend

TSMC's investment of US$100bn to be lapsed due to threat of 100% tariff

Recently, the global semiconductor industry is facing another major challenge. According to report by foreign media, although TSMC plans to invest at least US$100bn in the USA, the USA may still impose tariffs of up to 100% on chips made in Taiwan. The news has attracted wide concern of the industry.

According to the recent agreement concluded between the Trump administration and TSMC, TSMC will invest in US$165bn in building several advanced packaging centers and a large R&D facility in Arizona. Nevertheless, the Trump administration is still discussing the possibility of imposing high tariffs on TSMC and other Taiwan chipmakers. This tariff proposal may not only target at chips themselves but also extend to end products using these chips, such as iPhone.

If the USA imposes a 100% tariff on Taiwan chips, it will bring a devastating impact on the global consumer electronics industry. Most of the end products imported by the USA use TSMC’s chips, and the implementation of the tariff may double the prices of these products. In addition, such a policy could trigger further fluctuation in the global trade landscape and exacerbate geopolitical risks faced by the semiconductor industry.

On the one hand, TSMC's large-scale investment in the USA is designed to avoid tariff risks; on the other hand, it is forced by the political pressure from the USA. Trump once made it plain that if TSMC produces chips in Taiwan and then ships them to the USA, they may be subject to tariffs of 25%, 30%, or even 50% in the future. Therefore, TSMC chose to build large-scale plants in the USA, attempting to avoid tariff risks by localizing its production.

Comments: This incident highlights the delicate balance of the global semiconductor industry chain. The US tariff policy not only poses a challenge to the global layout of TSMC but also has an impact on the stability of the global semiconductor supply chain. In the long run, the uncertainty about such policies may drive more companies to reassess their supply chain layouts and boost the regionalization of the semiconductor industry. As for TSMC, although its large-scale investment in the USA may temporarily relieve tariff pressure, it remains to be seen whether its "investment-for-market" strategy will be sustainable. On the one hand, the USA may change its policies at any time; on the other hand, TSMC's global supply chain layout and market share may be weakened accordingly.

In addition, the event also reminds the global semiconductor industry of the importance of technological autonomy and supply chain diversification. In the future, all countries and enterprises may need to focus more on the development of the local semiconductor industry to reduce dependence on external supply chains, thus reducing the impact of geopolitical risks on the industry.

Mar. 10

Market Trend

Trump lays off 86% chip staff! Industry Trend

Recently, the Trump administration massively laid off the staff of the CHIPS office, which has aroused widespread concern and discussion in the industry. Since Trump took office, he has been strongly opposed to the CHIPS Act, arguing that the subsidy policy under the Act is inefficient and advocating tariffs rather than subsidies to attract chipmakers back to the USA. In this context, the Trump administration made a massive layoff of the staffers of the CHIPS Act Office and originally slated to retain only five probationary employees, but ultimately it decided to retain 22 due to internal opposition.

The layoff involved key departments such as the Office's external affairs team and strategic policy adviser team, and the staff cut percentage was up to 86%. The move was seen as the Trump administration's "quick stop" to the policies of the Biden era, and raised concerns about the future of the US Chip Revival program.

The staff cut has resulted in a significant reduction in the Office's operational capacity and there may be potential delays in the advancement of future projects and the distribution of funds. Although some of the funds have been allocated, how to release the undistributed billions of dollars is a major task for the remaining employees. The subsidies under CHIPS Act played a major role in promoting the companies such as Intel and TSMC to make decisions to build plants in the USA. However, the policy shift of the Trump administration may result in the uncertainty of the investment plans of these companies. In particular, the adjusted subsidy policies may affect long-term planning of these companies.

Comments: The Trump administration's massive layoff of the CHIPS Act office is not only a negation of the former administration's policies but also a major adjustment to the US Chip Revival Program. Although this move is in line with Trump's concept of "tariff-driven industry return" ，it may have negative implications for the long-term development of the US chip industry: 1. Impaired policy coherence: the staff cut and the adjustment of the subsidies policies may undermine the coherence of US chip industry policies;2. Increased supply chain risks: Trump's tariff policy may attract companies to move to the United States in the short term, but in the long run, it may increase supply chain vulnerability and push up chip prices. 3. Changes in international competition landscape: Uncertainty in US policy may induce other countries and regions to strengthen their semiconductor industry layout and further intensify competition in the global chip industry.

Mar. 10

Company Trend

Samsung works with Broadcom to challenge TSMC!

The semiconductor industry has ushered in a major collaboration: Samsung Electronics and Broadcom work together to advance the development and commercialization of silicon photonics technology. This cooperation is rendered as a key step by Samsung to catch up with TSMC. Silicon photonics is a key technology used for next-generation semiconductor foundry by converting data communication between semiconductors from electrical signals to optical ones, enabling data to be processed at least 10 folds faster. The cooperation between Samsung and Broadcom is designed to achieve mass production of the technology within two years and to apply it to next-generation custom semiconductors (ASICs) and optical communication devices.

TSMC began commercializing the silicon photonics technology in H2 2025 for producing Nvidia's AI accelerators. In contrast, Samsung is about 1-2 years behind in commercializing the technology, but through its cooperation with Broadcom, Samsung is accelerating catch-up. Broadcom boasts a significant advantage in the wireless and optical communication semiconductor field, with its revenue of semiconductors for wireless communication devices accounting for 30% of its total revenue and that of semiconductors for optical communication devices representing 10%. In this cooperation, Broadcom will provide Samsung with technical know-how in the field of optical communications to facilitate the mass production with silicon photonics technology.

As silicon photonics technology matures gradually, its applications in artificial intelligence (AI) and high performance computing (HPC) are promising. The cooperation between Samsung and Broadcom will not only help Samsung to improve its competitiveness in the high-end chip market but will also overthrow the competitive landscape of the global semiconductor foundry industry.

Comments: The commercialization of silicon photonics technology is an important development direction of the semiconductor industry in the future. TSMC has the lead using its early layout and technology, and Samsung shows its determination to catch up by working with Broadcom. This cooperation not only involves whether Samsung can narrow the gap with TSMC but also affects the future landscape of the global semiconductor market. Broadcom with its technical strength in the field of optical communication, provides important support to Samsung. This cooperation will not only help Samsung accelerate the mass production of devices based on silicon photonics technology but will also advance its technological breakthroughs in other related fields. For Broadcom, the cooperation with Samsung also opened up new growth space in the optical communication chip market.

In addition, as silicon photonics technology matures gradually, the technology competition in the semiconductor industry will shift from traditional process node reduction to more efficient data transmission and processing capabilities. This shift could trigger a new wave of reshuffling in the industry, especially in the fields of AI and HPC, where demands for data center interconnects and high-performance chips will continue to grow.

Mar. 11

Market Trend

Breakthrough in High-NA EUV photolithography technology & reshape of the market landscape

Ultraviolet (EUV) photolithography, as a cutting edge technology of the semiconductor manufacturing field, has always been developing rapidly. In 2024 and 2025 EUV photolithography technology has seen several significant advances both in technological breakthroughs and market competition as well as industrial layout. ASML, the world's leading manufacturer of mask aligners, is actively advancing the development and commercialization of high-value aperture (High-NA) EUV photolithography technology. The High-NA EUV mask aligner has increased its numerical aperture to 0.55 compared to the traditional EUV mask aligner with an NA of 0.33, so it can achieve higher resolution and smaller chip feature size. In 2024, ASML's High-NA EUV mask aligner Twinscan EXE: 5000 series have entered into the phase of delivery for customers and are scheduled for mass production by 2025.

In addition, semiconductor giants such as Intel, TSMC, and Samsung are also actively developing High-NA EUV technology. Intel received the first High-NA EUV mask aligner in December 2023 and plans to use it for its 18A (1.8nm) and 14A (1.4nm) process nodes. TSMC expects to receive the first High-NA EUV mask aligner at the end of 2024, and plans to fully adopt the technology for the A14 (1.4 nm) process node in 2028 or later. Samsung also plans to purchase the High-NA EUV equipment in 2025 and will fully commercialize it by 2027.

As the High-NA EUV mask aligner is gradually commercialized, the global semiconductor manufacturing sector tends to be increasingly competitive. Tech giants such as Intel, TSMC and Samsung have increased their investment in advanced processes, trying to strengthen their market position by mastering the latest photolithography technology. In addition, ASML's High-NA EUV mask aligner orders are increasing, with the price of up to €300-400mnper unit, showing that there is a strong demand for advanced photolithography technology in the market.

Comments: The rapid development of EUV photolithography technology, especially the rise of high-value aperture technology, indicating that the semiconductor manufacturing industry has entered a new technological era. This breakthrough not only provides the possibility of making smaller, more sophisticated chips but also lays the foundation for the development of new technologies such as AI, high-performance computing, and so forth. However, the high cost and complexity of EUV photolithography has also had a profound impact on the global semiconductor industry landscape. On the one hand, the increased technological barrier caused a more concentrated competition among a few tech giants; on the other hand, there still exist issues such as technological monopolies and export controls, which challenges the stability and safety of the global semiconductor supply chain. For China, the domestic breakthrough in EUV light source technology is an important milestone, but it still needs to take time to achieve the development and commercialization of whole mask aligners. In the future, China needs to continue to develop core technologies, industry chain collaboration and international cooperation to realize the independent control of semiconductor manufacturing technology and industrial upgrading.

Mar. 10

DomesticNews

Chinese IC exports continue to soar, with 28 nm process as a dominant role

In recent years, the Chinese IC industry has shown a strong development momentum in the global market, with the export of 28nm process chips rising significantly. According to the data of the General Administration of Customs of China, in the first two months of 2025, China's IC exports reached RMB180.44bn, up 13.2% YoY. This result not only reflects China's important position in the global chip market but also indicates that China's production capacity in the field of mature process chips is gradually expanding.

As an important representative of mature process, 28 nm chips features low cost, low power consumption, stable performance and other advantages, and are widely used in consumer electronics, automotive electronics, IoT devices and other fields. In recent years, Chinese companies have made significant progress in the R&D and production of 28nm process chips. For example, SMIC has made lots of layouts focusing on smart phones, consumer electronics, vehicle-grade chips, IoT and other scenarios, and launched domestic first 28nm AMOLED platform and 28nm vehicle-grade platform in Chinese mainland. The successful launch of these platforms has not only raised the technology level of Chinese chipmakers but also laid the foundation for their competitiveness in the global market.

With the recovery of the global semiconductor industry, there are increasing demands for 28nm process chips. According to IDC and others, the global semiconductor market will show a "U-shape recovery" in 2024, and the demand for mature process chips may be the main driver. In this context, Chinese companies are expanding their capacity actively. In 2023, the capacity of the semiconductor manufacturers in Chinese mainland increased to 7.6 million wafers per month, up to 12% YoY. It is estimated that chipmakers in Chinese mainland will operate additional 18 projects in 2024, and the domestic capacity will increase to 8.6 million wafers per month up 13% YoY By 2027, China is expected to hold 39% of the world’s total mature manufacturing capacity, becoming an important supplier to the global chip market.

Mar. 11

DomesticNews

Zhejiang Xinzhi Microelectronics packaging testing project ushers in the first mask aligner!

On March 11, Zhejiang Xinzhi Microelectronics Technology Co., Ltd. ("Xinzhi Microelectronics") ushered in a milestone development in its history. On the same day, the first mask aligner successfully moved into Xinzhi Microelectronics, indicating that the construction of the company's DDIC advanced packaging testing production line officially entered the critical phase of equipment installation and commissioning.

After the first mask aligner moved in the plant, Xinzhi Microelectronics will follow its established plan to continue to introduce advanced equipment, increase investment in R&D, and continuously optimize its process. According to the responsible person of the company, the moving-in of the first mask aligner is only a new starting point. In the future, Xinzhi Microelectronics will give full play to its own technological advantages and innovation ability, strengthen cooperation with scientific research institutions and companies at home and abroad, and constantly improve the automation and intelligence level of the production line, to ensure the improvement of its product quality and production efficiency.

What is worth mentioning is that according to the plan of Xinzhi Microelectronics, it is expected that the company will complete the construction of the first production line and gradually realize mass production in this year. After reaching the target capacity, the production line will achieve packaging and testing capacity of 120,000 wafers per year, which will bring significant economic benefits to the company and will also further enhance its competitiveness DDIC packaging & testing market. With the gradual mass production of the first production line, Xinzhi Microelectronics is expected to provide more high-quality, high-performance DDIC packaging & testing services for the market to meet the growing demand of customers. At the same time, the development of the company will inject new vitality into the development of the local economy, drive the synergistic development of related industrial chains, and make positive contribution to the development of China's semiconductor industry.

Mar. 13

DomesticNews

Stop supply! No Windows available for Huawei!

According to news on March 13, Microsoft's license to supply goods for Huawei will expire this month. In the future, Huawei PC can only be fully localized, using homemade chips + homemade OS! It is learned that Huawei's self-developed AI notebook is expected to be released next month. It is equipped with a fully integrated DeepSeek LLM and a Kunpeng CPU, while its OS is based on Huawei Harmony PC system.

Huawei's previous PC product, HUAWEI MateBook GT 14, was launched in August 2024, and Huawei has not launched new PC products seven months after the launch of the notebook. Some dealers revealed that Huawei will launch the first notebook computer equipped with Linux system, that is, MateBook D16 Linux version. The hardware configuration of the notebook computer is consistent with that of MateBook D16, and the main difference between them is that its OS is Linux instead of Windows.

Some insiders believe that Harmony PC is expected to be launched in the government-enterprise market. Government & enterprise users have lower requirements for computer performance but they require extremely high information security and stability. At the same time, they relatively need less software, so it is not difficult to configure them. Lenovo, Huawei, and HP held the top three places by the shipment of desktop computers and notebook computers in 2024. In particular, Lenovo’s and HP’s shipments fell by 12% and 20%, respectively. However, Huawei was the only manufacturer that has shipment growth, with an annual growth rate of 15%.