Semiconductors

AI chip production begins at TSMC’s Arizona facility

Nvidia has announced a major initiative to produce AI supercomputers in the US in collaboration with Taiwan Semiconductor Manufacturing Co. (TSMC) and several other partners.

The effort aims to create up to US$500 billion worth of AI infrastructure products domestically over the next four years, marking a significant shift in Nvidia’s manufacturing strategy.

Alongside TSMC, other key contributors include Taiwanese firms Hon Hai Precision Industry Co. and Wistron Corp., both known for producing AI servers. US-based Amkor Technology and Taiwan’s Siliconware Precision Industries will also provide advanced packaging and testing services.

Nvidia’s Blackwell AI chips have already begun production at TSMC’s Arizona facility, with large-scale operations planned in Texas through partnerships with Hon Hai in Houston and Wistron in Dallas.

The move could impact Taiwan’s economy, as many Nvidia components are currently produced there. Taiwan’s Economic Affairs Minister declined to comment specifically on the project but assured that the government will monitor overseas investments by Taiwanese firms.

Nvidia said the initiative would help meet surging AI demand while strengthening semiconductor supply chains and increasing resilience amid shifting global trade policies, including new US tariffs on Taiwanese exports.

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South Korea’s $23B chip industry boost in response to global trade war

South Korea announced a $23 billion support package for its semiconductor industry, increasing from last year’s $19 billion to protect giants like Samsung and SK Hynix from US tariff uncertainties and China’s growing competition. 

The plan allocates 20 trillion won in financial aid, up from 17 trillion, to drive innovation and production, addressing a 31.8% drop in chip exports to China due to US trade restrictions.

The package responds to US policies under President Trump, including export curbs on high-bandwidth chips to China, which have disrupted global demand. 

At the same time, Finance Minister Choi Sang-mok will negotiate with the US to mitigate potential national security probes on chip trade. 

South Korea’s strategy aims to safeguard a critical economic sector that powers everything from smartphones to AI, especially as its auto industry faces US tariff challenges. 

Analysts view this as a preemptive effort to shield the chip industry from escalating global trade tensions.

Why does it matter?

For South Koreans, the semiconductor sector is a national lifeline, tied to jobs and economic stability, with the government betting big to preserve its global tech dominance. As China’s tech ambitions grow and US policies remain unpredictable, Seoul’s $23 billion investment speaks out about the cost of staying competitive in a tech-driven world.

Nvidia hit by the new US export rules

Nvidia is facing fresh US export restrictions on its H20 AI chips, dealing a blow to the company’s operations in China.

In a filing on Tuesday, Nvidia revealed it now needs a licence to export these chips indefinitely, after the US government cited concerns they could be used in a Chinese supercomputer.

The company expects a $5.5 billion charge linked to the controls in its first fiscal quarter of 2026, which ends on 27 April. Shares dropped around 6% in after-hours trading.

The H20 is currently the most advanced AI chip Nvidia can sell to China under existing regulations.

Last week, reports suggested CEO Jensen Huang might have temporarily eased tensions during a dinner at Donald Trump’s Mar-a-Lago resort, by promising investments in US-based AI data centres instead of opposing the rules directly.

Just a day before the filing, Nvidia announced plans to manufacture some chips in the US over the next four years, though the specifics were left vague.

Calls for tighter controls had been building, especially after it emerged that China’s DeepSeek used the H20 to train its R1 model, a system that surprised the US AI sector earlier this year.

Government officials had pushed for action, saying the chip’s capabilities posed a strategic risk. Nvidia declined to comment on the new restrictions.

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Nvidia brings AI supercomputer production to the US

Nvidia is shifting its AI supercomputer manufacturing operations to the United States for the first time, instead of relying on a globally dispersed supply chain.

In partnership with industry giants such as TSMC, Foxconn, and Wistron, the company is establishing large-scale facilities to produce its advanced Blackwell chips in Arizona and complete supercomputers in Texas. Production is expected to reach full scale within 12 to 15 months.

Over a million square feet of manufacturing space has been commissioned, with key roles also played by packaging and testing firms Amkor and SPIL.

The move reflects Nvidia’s ambition to create up to half a trillion dollars in AI infrastructure within the next four years, while boosting supply chain resilience and growing its US-based operations instead of expanding solely abroad.

These AI supercomputers are designed to power new, highly specialised data centres known as ‘AI factories,’ capable of handling vast AI workloads.

Nvidia’s investment is expected to support the construction of dozens of such facilities, generating hundreds of thousands of jobs and securing long-term economic value.

To enhance efficiency, Nvidia will apply its own AI, robotics, and simulation tools across these projects, using Omniverse to model factory operations virtually and Isaac GR00T to develop robots that automate production.

According to CEO Jensen Huang, bringing manufacturing home strengthens supply chains and better positions the company to meet the surging global demand for AI computing power.

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Trump eyes tariffs on semiconductors in push to boost US tech manufacturing

US President Donald Trump is preparing to introduce new tariffs on semiconductor imports, aiming to shift more chip production back to the United States.

Semiconductors, or microchips, are essential components in everything from smartphones and laptops to medical devices and renewable energy systems.

Speaking aboard Air Force One, Trump said new tariff rates would be announced soon as part of a broader effort to end American reliance on foreign-made chips and strengthen national security.

The global semiconductor supply chain is heavily concentrated in Asia, with Taiwan’s TSMC producing over half of the world’s chips and supplying major companies like Apple, Microsoft, and Nvidia.

Trump’s move signals a more aggressive stance in the ongoing ‘chip wars’ with China, as his administration warns of the dangers of the US being dependent on overseas production for such a critical technology.

Although the US has already taken steps to boost domestic chip production—like the $6.6 billion awarded to TSMC to build a factory in Arizona—progress has been slow due to a shortage of skilled workers.

The plant faced delays, and TSMC ultimately flew in thousands of workers from Taiwan to meet demands, underscoring the challenge of building a self-reliant semiconductor industry on American soil.

Why does it matter?

Trump’s proposed tariffs are expected to form part of a wider investigation into the electronics supply chain, aimed at shielding the US from foreign control and ensuring long-term technological independence. As markets await the announcement, the global tech industry is bracing for potential disruptions and new tensions in the international trade landscape.

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Nvidia expands AI chip production in the US amid political pressure and global shifts

Nvidia is significantly ramping up its presence in the United States by commissioning over a million square feet of manufacturing space in Arizona and Texas to build and test its powerful AI chips. The tech giant has begun producing its Blackwell chips at TSMC facilities in Phoenix and is developing large-scale ‘supercomputer’ manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas.

The company projects mass production to begin within the next 12 to 15 months, with ambitions to manufacture up to half a trillion dollars’ worth of AI infrastructure in the US over the next four years. CEO Jensen Huang emphasised that this move marks the first time the core components of global AI infrastructure are being built domestically.

He cited growing global demand, supply chain resilience, and national security as key reasons for the shift. Nvidia’s decision follows an agreement with the Trump administration that helped the company avoid export restrictions on its H20 chip, a top-tier processor still eligible for export to China.

Nvidia joins a broader wave of AI industry leaders aligning with the Trump administration’s ‘America-first’ strategy. Companies like OpenAI and Microsoft have pledged massive investments in US-based AI infrastructure, hoping to secure political goodwill and avoid regulatory hurdles.

Trump has also reportedly pressured key suppliers like TSMC to expand American operations, threatening tariffs as high as 100% if they fail to comply. Despite the enthusiasm, Nvidia’s expansion faces headwinds.

A shortage of skilled workers and potential retaliation from China—particularly over raw material access—pose serious risks. Meanwhile, Trump’s recent moves to undermine the Chips Act, which provides critical funding for domestic chipmaking, have raised concerns about the long-term viability of US semiconductor investment.

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Lenovo unveils compact edge AI server

Lenovo has introduced the ThinkEdge SE100, a compact AI inferencing server aimed at bringing edge AI within reach for businesses of all sizes.

Rather than relying on large data centres for processing, this server is designed to operate on-site in space-constrained environments, allowing data to be processed locally instead of being sent to the cloud.

The SE100 supports hybrid cloud deployments and is part of Lenovo’s new ThinkSystem V4 family. While the V4 systems are built for AI training, the SE100 is intended for inferencing, which is less demanding and doesn’t require power-hungry GPUs.

Lenovo says the unit is 85% smaller than a typical 1U server and draws under 140W, even with GPU configurations.

Engineered to be both energy-efficient and quiet, the SE100 uses Neptune liquid cooling instead of traditional fans, making it suitable for public spaces. Its design also helps extend system health and lifespan by reducing air flow needs and lowering operating temperatures.

Lenovo’s vice president of infrastructure products, Scott Tease, stated the SE100 is a cost-effective solution that simplifies AI deployment at the edge.

Its flexible design adapts to diverse business needs, offering low-latency, high-performance inferencing without the complexity or expense of full-scale AI infrastructure.

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Trump’s tech tariffs spare smartphones, computers and other electronics

President Donald Trump’s administration has granted exemptions from steep tariffs on smartphones, laptops, and other electronics, providing relief to tech giants like Apple and Dell. 

Announced on 5 April 2025 by US Customs and Border Protection, the exemptions cover 20 product categories, including semiconductors, and exclude these goods from Trump’s 10% baseline tariffs on non-Chinese imports, easing costs for items like iPhones made in India. 

Wedbush Securities analyst Dan Ives hailed the move as ‘the most bullish news’ for the tech sector, coinciding with efforts by companies like Apple, which has shipped 1.5 million iPhones from India to sidestep tariffs.

However, the exemptions don’t fully shield tech from Trump’s trade war. His 125% reciprocal tariffs on Chinese imports remain, alongside earlier 20% duties tied to the fentanyl crisis, and a new national security probe into semiconductors looms. 

Trump, speaking on 9 April, teased more details while claiming the US is reaping tariff revenue, but the decision hints at his awareness of inflation risks, with iPhone prices potentially hitting $2,300 under full tariffs. 

The partial reprieve reflects Trump’s balancing act between trade promises and economic stability, especially after his campaign focused on lowering prices amid inflation concerns.

The backdrop is a volatile global market, with China retaliating by matching Trump’s 125% tariffs, sending US stocks on a rollercoaster and pushing gold to record highs. 

Trump’s cosy ties with tech CEOs like Apple’s Tim Cook, who have embraced him since his 20 January inauguration, contrast with his tariff-driven agenda, which has sparked recession fears and Republican criticism ahead of next year’s midterms. 

The exemptions offer tech a breather, but the broader US-China trade conflict threatens supply chains and global stability. 

This tariff carve-out underscores Trump’s high-stakes gamble: reshaping trade to favour American interests while risking economic fallout at home. 

With smartphones and laptops leading US imports from China at $41.7 billion and $33.1 billion in 2024, the exemptions may temper consumer price hikes, but the looming semiconductor probe and escalating tensions signal more turbulence ahead. 

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AI boom drives TSMC revenue surge

Taiwan Semiconductor Manufacturing Co. (TSMC) reported record-breaking sales for March and the first quarter of the year, driven by robust demand for AI technologies.

March revenue reached NT$285.96 billion (US$8.70 billion), while quarterly revenue climbed to NT$839.25 billion, reflecting a 41.6 percent year-on-year increase.

The chipmaker confirmed that the sales performance aligned with internal expectations, attributing the surge largely to continued global investment in AI development.

Despite a temporary production setback caused by the Jan. 21 earthquake in southern Taiwan, which forced the scrapping of some wafers, the company’s growth momentum remained strong.

TSMC is set to provide further financial details and its second-quarter outlook at an investor conference on 17 April. Meanwhile, the company has announced an additional US$100 billion in United States investment, building on its ongoing US$65 billion expansion in Phoenix, Arizona.

However, its stock price has dropped below NT$1,000, closing Thursday at NT$863, amid a strengthening US dollar and broader economic uncertainties.

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Google pushes AI limits with Ironwood

Google has announced Ironwood, its latest and most advanced AI processor, marking the seventh generation of its custom Tensor Processing Unit (TPU) architecture.

Designed specifically for the growing demands of its Gemini models, particularly those requiring complex simulated reasoning, which Google refers to as ‘thinking’, Ironwood represents a significant leap forward in performance.

Instead of relying solely on software updates, Google is highlighting how hardware like Ironwood plays a central role in boosting AI capabilities, ushering in what it calls the ‘age of inference.’

However, this TPU is not just faster but dramatically more scalable. Ironwood chips will operate in tightly connected clusters of up to 9,216 units, each cooled by liquid and linked through an enhanced Inter-Chip Interconnect.

These chips can also be deployed in smaller 256-chip servers, offering flexibility for cloud developers and researchers.

Instead of offering modest improvements, Ironwood delivers a peak throughput of 4,614 teraflops per chip, alongside 192GB of memory and 7.2 terabits per second of bandwidth, making it vastly superior to its predecessor, Trillium.

Google says this advancement is more than a performance boost, it’s a foundation for building AI agents that can act on a user’s behalf by gathering information and producing outputs proactively.

Rather than functioning as passive tools, AI systems powered by Ironwood are intended to behave more independently, reflecting a growing trend toward what Google calls ‘agentic AI.’

While Google’s comparison to supercomputers like El Capitan may be flawed due to differing hardware standards, there’s no doubt Ironwood is a substantial upgrade. The company claims it is twice as powerful per watt as the v5p TPU, even if the newer Trillium (v6) chip wasn’t included in the comparison.

Regardless, Ironwood is expected to power the next generation of AI breakthroughs, as the company prepares to move beyond its current Gemini 2.5 model.

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