foreign chipmakers

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.

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 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.

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.

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.

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.

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.

Prime Minister Narendra Modi inaugurated a historic semiconductor facility in Uttar Pradesh, marking India's aggressive push towards becoming a global "chip powerhouse." This joint venture, India Chip Private Limited, signifies a move away from importing foreign technology and aims to produce 3.6 crore chips monthly, bolstering self-reliance and global supply chain resilience.

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.

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 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.

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.