Global semiconductor manufacturers are accelerating their shift from China to Vietnam, driven by the anticipated intensification of US sanctions on China’s semiconductor industry, especially with the return of Donald Trump to the White House. South Korean firms, including Samsung Electronics and SK Hynix, are leading this transition, halting production expansions in China and focusing investments on Vietnam, which has become a rising hub for semiconductor production.
SK Hynix, for instance, shelved plans to increase DRAM chip production at its Wuxi plant in China, while Samsung Electronics is cutting back on production at its NAND flash memory facility in Xi’an. Other companies are also following suit; South Korea’s Hana Micron is expanding its presence in Southeast Asia, and Amkor Technology is investing $1.6 billion in a new semiconductor packaging plant in Vietnam. The facility will feature advanced technology, with some equipment reportedly transferred from China.
Vietnam’s semiconductor industry is also benefiting from the growth of companies like Samsung, which established a $1.7 billion OLED plant in the country. Samsung’s semiconductor division is reportedly boosting its investments in Vietnam, encouraging further expansions from supporting companies. Semiconductor testing and packaging firm Signetics is set to invest $100 million in a new facility in Vietnam, and German company Infineon is considering setting up an R&D center in Hanoi.
This shift underscores the ongoing global realignment in the semiconductor industry as companies adapt to geopolitical tensions and US-China trade policies.
Elon Musk has expanded his legal battle against OpenAI by adding Microsoft to his lawsuit, accusing both companies of engaging in illegal practices to monopolise the generative AI market. The federal antitrust claims, filed in Oakland, California, argue that the partnership between OpenAI and its largest investor, Microsoft, has sidelined competitors and restricted investment opportunities for other AI developers.
Musk’s complaint, which builds on his initial lawsuit from August, claims that OpenAI, which he helped to establish as a nonprofit, has deviated from its original mission. It has transformed into a highly profitable company, valued at $157 billion, and Musk argues that its partnership with Microsoft has created unfair market dominance. He is seeking to have the licensing agreement between the two companies voided and for them to divest assets gained through what he calls monopolistic practices.
The lawsuit also accuses Microsoft and OpenAI of circumventing regulatory oversight by entering exclusive agreements that Musk believes resemble a merger, without going through standard antitrust reviews. OpenAI has dismissed the claims as unfounded, while Musk’s legal team insists that the companies’ actions are damaging competition and transparency in the AI sector.
Musk’s tensions with OpenAI have been ongoing since he left the organisation, which he co-founded to develop safe AI. As OpenAI transitioned to a for-profit structure and secured billions from Microsoft, concerns grew about the concentration of power in the hands of a few dominant players in AI.
Guillaume Faury, CEO of Airbus, raised concerns about how antitrust regulations hinder the European aerospace sector’s ability to compete with US-based SpaceX. Speaking at an aviation industry event in Frankfurt, Faury acknowledged SpaceX’s success, particularly its reusable Falcon 9 rocket, but highlighted how Europe’s regulatory framework restricts similar consolidation. Unlike SpaceX, which manufactures 80% of its components in-house, European companies like Airbus face complex supply chains and fragmented production models due to antitrust rules that require manufacturing distribution across multiple countries.
Faury pointed out that this fragmented system, while pleasing many stakeholders, limits efficiency and competitive flexibility. This is evident when comparing SpaceX’s cost-cutting ability with the struggles of Europe’s Ariane 6, which has yet to launch commercially despite plans for multiple flights per year. Meanwhile, SpaceX’s low-cost launches have revolutionised satellite deployment, launching nearly 7,000 satellites and creating fierce competition in the space industry.
Faury warned that unless European regulations adapt, the region risks falling behind in satellite and launch sectors, with Airbus already feeling the pressure, including a planned reduction of 2,500 jobs in its satellite division. SpaceX’s influence extends beyond commercial aerospace, as the company is also a major player in military and defence with initiatives like Starlink and lunar landing technology, supported by NASA and the US government.
However, concerns about SpaceX’s dominance in the US have also emerged, with NASA and the Pentagon seeking to reduce dependence on the company by promoting more competition in the aerospace sector, although antitrust complaints have not yet significantly affected SpaceX’s position.
Key members of the European Parliament (MEPs) will decide on Thursday whether to reinstate access for Amazon lobbyists after their privileges were revoked in February for failing to attend hearings on working conditions. Amazon had previously declined invitations to discuss its workplace practices and cancelled scheduled site visits to warehouses in Poland and Germany.
The Employment Committee (EMPL) revoked badges for 14 Amazon lobbyists, citing the company’s refusal to engage on critical labour issues. The move was supported by over 30 trade unions across Europe, which accused Amazon of disregarding EU labour laws and democratic oversight. In a letter to the committee, Amazon’s Director of EU Public Policy expressed a renewed commitment to cooperation and invited lawmakers to visit its facilities.
Trade unions have urged MEPs to only restore access if Amazon attends a hearing and allows committee visits to its warehouses. EMPL member Estelle Ceulemans emphasised that accepting these terms is essential to maintaining democratic oversight. Thursday’s discussions will also address whether a new mission to Amazon’s facilities should be organised to advance dialogue on workplace conditions.
Taiwan President Lai Ching-te has called for an economic partnership agreement with the European Union, emphasising the need for collaboration in semiconductors and shared democratic values. Speaking at a Taiwan-EU investment forum in Taipei, Lai highlighted the importance of secure supply chains and stronger ties to counter growing authoritarian threats.
The EU, under its European Chips Act, has sought to deepen cooperation with Taiwan to boost semiconductor production and reduce reliance on Asia. Taiwan Semiconductor Manufacturing Co.’s (TSMC) new chip plant in Dresden, Germany, underscores Taiwan’s role in strengthening European industry and supply chains.
While Maria Martin-Prat of the European Commission praised Taiwan as a trusted economic partner in her video address to the forum, she did not mention plans for a formal agreement. Taiwan, diplomatically isolated from most global organisations, has been pursuing trade deals with like-minded partners, recently securing an Enhanced Trade Partnership with Britain and seeking membership in the CPTPP.
Elon Musk‘s growing influence in US politics has sparked hope among Wall Street banks that they may soon unload $13 billion in debt tied to his 2022 acquisition of X, formerly Twitter. Lenders, including Morgan Stanley and Bank of America, believe Musk’s alignment with President-elect Donald Trump could enhance X’s financial prospects, potentially enabling them to sell the debt without incurring significant losses.
Musk’s management of X, marked by sweeping layoffs and content moderation changes, initially scared off advertisers and reduced revenue, lowering the debt’s value. However, recent spikes in platform traffic during major events, such as the US election, have raised optimism. Trump’s active presence on X, reinstated by Musk after a previous ban, and a robust US economy could further support revenue growth, according to banking insiders.
Despite these hopes, challenges persist. User departures to rival platforms like Bluesky and Threads continue, and X’s traffic surged only briefly during the election. Banks monitor Musk’s financial update next quarter before deciding whether to hold or sell the debt. Meanwhile, X remains current on its interest payments, and some banks have prepared for potential losses, awaiting better market conditions to offload the debt.
Foxconn, the world’s leading contract electronics manufacturer, is set to report a 7% year-on-year rise in third-quarter profit, driven by strong demand for AI servers. The company, best known for assembling Apple‘s iPhones, posted its highest-ever quarterly revenue, with a 20% increase from the previous year, attributed to booming AI-related sales. Foxconn’s net profit for July-September is expected to reach T$46.3 billion, marking the fifth consecutive quarter of profit growth.
In addition to its positive financial performance, Foxconn continues to expand its operations globally. It is building the world’s largest manufacturing facility in Mexico, dedicated to bundling Nvidia’s GB200 superchips for next-generation computing platforms. The company’s optimistic outlook is reflected in record-breaking sales for October and expectations of further revenue growth in the fourth quarter.
Foxconn‘s share price has surged more than 100% in 2024, significantly outperforming the broader market. The company will update its full-year outlook during its earnings call on Thursday, where it is expected to provide additional insights into the continued growth of its AI business.
Advanced Micro Devices (AMD) has announced it will lay off approximately 1,000 employees, or 4% of its global workforce, as part of a strategic focus on the booming AI chip market. The company, which is competing with Nvidia in the rapidly growing sector, plans to prioritise investments in AI graphics processors. AMD’s data centre business has experienced impressive growth, with a significant revenue boost in the September quarter, while other segments, such as gaming, have seen declines.
AMD is preparing for the mass production of its next-generation AI chip, the MI325X, set to launch in the fourth quarter. The company’s research and development efforts have escalated, with rising costs reflecting the high demand for AI chips from major customers like Microsoft. Despite this, AMD’s stock has faced challenges in 2024 after a surge last year, as investor expectations remain high.
The company’s data centre unit is projected to grow significantly in 2024, outperforming total revenue growth. However, rising production costs and an expensive ramp-up in chip manufacturing have impacted its financial performance.
Pony AI, a Chinese self-driving technology firm backed by Toyota, is pursuing a US listing on Nasdaq with a target valuation of up to $4.48 billion. The company plans to offer 15 million American Depositary Shares priced between $11 and $13, aiming to raise as much as $195 million. Additional private placements are expected to generate $153.4 million, with key investors like BAIC committing to $74.9 million.
Founded in 2016, Pony AI operates a fleet of over 250 robotaxis and 190 robot trucks, competing in a market poised for rapid growth but facing significant challenges. The IPO represents a major step after its valuation dropped from $8.5 billion in 2022 due to reduced investor expectations and changing market dynamics. However, this follows an earlier failed attempt at a public offering in 2021 during Beijing’s crackdown on technology companies.
The move reflects a cautious reopening of US markets for Chinese companies, which have been wary since Didi Global’s delisting. Analysts highlight the immense potential of autonomous driving while noting hurdles such as safety concerns, profitability issues, and regulatory challenges. Despite slower adoption in the US, Chinese regulators have embraced trials, offering Pony AI an edge in development.
National security concerns are casting a shadow, with potential bans on vehicles using China-developed systems in the US. Pony AI’s IPO is supported by key financial backers, including Saudi Arabia’s NEOM, Ontario Teachers’ Pension Plan, and HongShan. The shares will trade under the ticker symbol ‘PONY,’ with Goldman Sachs, BofA Securities, and others managing the offering.
A US judge has ruled that Meta Platforms, the parent company of Facebook, must face trial in an antitrust lawsuit filed by the Federal Trade Commission (FTC). The lawsuit, initiated during the Trump administration, alleges that Meta’s acquisitions of Instagram in 2012 and WhatsApp in 2014 were intended to stifle emerging competition and maintain a social media monopoly. Meta has countered the FTC’s claims, arguing that the regulators ignore substantial competition from platforms like TikTok, YouTube, and LinkedIn.
This case is part of a broader crackdown on Big Tech by United States regulators. The FTC and the Department of Justice are pursuing major antitrust lawsuits against several technology giants, including Amazon and Apple. Alphabet’s Google also faces two significant legal challenges, with one case already finding that the company unlawfully restricted competition among search engines. These lawsuits reflect intensified regulatory efforts to address concerns over the market power of leading technology firms.
Meta’s legal battle could set a significant precedent for how tech conglomerates operate and acquire competitors. Critics argue that Meta’s dominance has harmed innovation and user choice, while the company insists it faces robust competition across the digital landscape. As Meta prepares for trial, the outcome could have far-reaching implications for the tech industry and future regulatory actions against monopolistic practices.
