Semiconductors

Minister urges Indian start-ups to shift focus from ice cream to semiconductors

India’s Commerce Minister Piyush Goyal has sparked controversy by questioning whether Indian start-ups should focus on semiconductor chips instead of gluten-free ice creams and food delivery apps.

Speaking at a start-up conference, he compared India’s consumer internet boom unfavourably with China’s advances in robotics and AI, urging entrepreneurs to pursue more ambitious tech innovations instead of safe lifestyle products.

While acknowledging the position of India as the world’s third-largest start-up ecosystem, Goyal faced pushback from founders who argued consumer apps often evolve into tech pioneers.

Quick-commerce CEO Aadit Palicha noted that companies like Amazon began as consumer platforms before revolutionising cloud computing. However, investors admitted deep-tech struggles for funding, with most capital chasing quick-return ventures instead of long-term hardware or AI projects.

The debate highlights India’s innovation crossroads. Despite having 4,000 deep-tech start-ups, projected to reach 10,000 by 2030, they attracted just 5% of 2023 funding instead of China’s 35%.

Experts suggest the government could help by offering tax incentives instead of criticism, and building research bridges between academia and start-ups to compete globally in advanced technologies

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Taiwan warns of economic impact after US tariff decision

The United States has imposed a 32 per cent tariff on Taiwanese exports, with semiconductors notably exempt from the new trade restrictions.

Taiwan, a major supplier of advanced electronics, has strongly condemned the move, calling it unfair and harmful to economic ties. Nearly a quarter of Taiwan’s exports go directly to the United States, with electronic components and consumer devices making up a significant share.

President Donald Trump has previously criticised Taiwan’s dominance in the semiconductor industry and threatened tariffs on the sector. While chips remain untouched for now, industry experts warn that tariffs could still be introduced in the future.

Taiwan Semiconductor Manufacturing Company (TSMC) recently pledged a $100 billion investment in the US to expand its Arizona operations, a move praised by Trump. Other chipmakers, including South Korea’s Samsung and SK Hynix, are also being urged to increase their investments in American facilities.

Government officials and businesses in Taiwan are now working to mitigate the impact of the tariffs. President Lai Ching-te has signalled interest in expanding trade ties with the US, including potential purchases of natural gas.

The Taiwanese government has lodged a formal protest with Washington, arguing that the tariffs undermine economic cooperation. Analysts suggest that Taiwan may have underestimated Trump’s hard-line trade policies, expecting more favourable treatment after recent investment commitments.

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Lip-Bu Tan outlines his vision for Intel’s future

Intel’s newly appointed chief executive, Lip-Bu Tan, has pledged to restore customer trust and strengthen the company’s engineering-driven culture.

Speaking at the Intel Vision conference, he assured customers that the next-generation Panther Lake chips would launch this year, continuing Intel’s progress in advanced chipmaking.

With a background in electronic design automation, Tan brings extensive industry experience but is not a traditional semiconductor executive. He has served as CEO of Cadence Design Systems and was previously a venture capitalist and an Intel board member.

Acknowledging Intel’s recent struggles, he vowed to refine strategies, spin off non-core businesses, and focus on AI and software-driven growth.

Tan promised to lead Intel’s expansion into third-party chip manufacturing and collaborate with policymakers to advance its foundry business.

Emphasising his commitment to turning the company around, he urged customers to be ‘brutally honest’ about their expectations, stating, ‘We may not be perfect in the beginning, but eventually, I will make it perfect.’

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US fabs to catch up with Taiwan tech

TSMC says future chip factories in the US will take two years or less to complete, a big step forward from the five years needed for its first Arizona plant. The goal is to narrow the technology gap with its cutting-edge Taiwanese fabs.

While the first US fab makes chips on a 4nm process, TSMC aims to start 3nm production in 2028 and reach 2nm ‘before 2030.’ This would bring American output closer to the most advanced nodes used in Taiwan.

For Apple, which relies heavily on TSMC, the move reduces geopolitical risks tied to China–Taiwan tensions. Critics, however, point out that all R&D remains in Taiwan, limiting the US’s chances of true semiconductor leadership.

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CoreWeave scales back IPO with lower share price

CoreWeave, the Nvidia-backed AI infrastructure company, has reduced the size of its US initial public offering (IPO) and priced its shares below the initial range, raising concerns over investor interest in AI infrastructure.

The company will offer 37.5 million shares, 23.5% fewer than originally planned, with shares priced at $40 each, well below the lower end of the expected price range.

Despite strong backing from Nvidia, which committed to a $250 million order, the IPO has faced a tepid reception due to concerns about CoreWeave’s long-term growth and capital-intensive business model.

Investors have expressed worries over the company’s reliance on Microsoft’s shifting AI strategy, which could affect demand for its GPU chips. Additionally, CoreWeave’s high debt levels and lack of profitability have raised doubts about its financial sustainability.

The reduced IPO comes at a time when the US IPO market is struggling, with fewer equity deals and lower transaction values in 2024 compared to last year.

CoreWeave’s stock market debut, once seen as a test for the AI infrastructure market, now signals waning investor confidence in AI companies, especially those without a proven profit history.

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SK Hynix sees surge in chip orders ahead of US tariffs

South Korea’s SK Hynix has reported that some customers are accelerating orders ahead of potential US tariffs on semiconductor imports.

Speaking at the company’s annual shareholder meeting, Head of Global Sales and Marketing Lee Sang-rak noted that this trend, combined with reduced customer inventory, has contributed to favourable market conditions.

However, he cautioned that it remains uncertain whether the demand surge will continue.

The US government is considering a 25% tariff on semiconductor imports, prompting fears of price increases and supply chain disruptions. Analysts at Nomura have observed preemptive stockpiling in response, though the final decision on tariffs is still pending.

Meanwhile, competitors Micron, SanDisk, and China’s YMTC have raised their memory chip prices due to strong demand from the AI sector.

SK Hynix remains optimistic about growth, particularly in the high-bandwidth memory (HBM) chip market. CEO Kwak Noh-Jung stated that demand is expected to soar this year, with sales for 2025 already sold out and 2026 orders nearing finalisation.

He also dismissed concerns that Chinese AI startup DeepSeek’s low-cost models would slow demand for high-performance accelerators, arguing that AI advancements will drive further expansion in the memory chip industry.

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Quantum chip network boosts data security

Chinese scientists have developed a compact chip-based quantum digital signature network that drastically improves both speed and efficiency.

The system replaces bulky, expensive equipment with streamlined silicon chips, making it easier to integrate into today’s fibre networks.

The new setup allows multiple users to share a single central detector, reducing cost and complexity. By adopting a star network design and a new cryptographic protocol, the system can handle longer documents with fewer resources and lower delays.

The Chinese experiment outperformed previous quantum signature technologies, achieving reliable performance even over a 200 km fibre link.

Experts say this research opens the door to future applications in quantum e-commerce, secure communication, and digital finance.

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AI chip production to benefit from Rapidus and Quest Global alliance

Japanese chipmaker Rapidus Corporation has announced a strategic partnership with Singapore-based engineering firm Quest Global to develop advanced artificial intelligence semiconductors.

The collaboration focuses on producing low-power, high-performance chips using cutting-edge 2-nanometre technology.

Quest Global will support Rapidus and its clients by designing these next-generation AI chips.

The partnership is also expected to expand Rapidus’s customer reach by tapping into Quest Global’s broad international client base, enabling both companies to deliver new products to established and emerging markets.

Rapidus aims to begin pilot production of the new chips in April at a new facility under construction in Hokkaido, Japan, with mass production planned for 2027.

The move forms part of Japan’s broader effort to revitalise its semiconductor industry amid increasing global supply chain concerns.

Founded in 2022 with investment from major Japanese firms including Toyota and Sony, Rapidus was created to strengthen domestic chip manufacturing and reduce reliance on foreign suppliers in an era of growing geopolitical uncertainty.

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China faces Nvidia chip shortages

Chinese server manufacturer H3C has warned of potential shortages of Nvidia’s H20 chip, the most advanced AI processor still legally available in the country under US export controls.

In a notice to clients, the company revealed that its stock of H20 chips was nearly depleted, citing geopolitical tensions as a major factor affecting global supply chains.

New shipments are expected by mid-April, but future availability remains uncertain due to ongoing trade restrictions and supply disruptions.

The demand for H20 chips has surged, particularly as companies race to integrate AI models developed by Chinese startup DeepSeek.

Major tech firms such as Tencent, Alibaba, and ByteDance have significantly increased their orders, leading to further strain on supply.

H3C stated that future chip distribution will prioritise long-term, high-margin customers under a profit-first approach, raising concerns among smaller buyers about access to the critical technology.

The H20 was introduced after the US tightened export controls on high-performance AI chips in October 2023, blocking Nvidia’s most advanced processors from the Chinese market.

Washington has restricted such exports since 2022, citing national security concerns over China’s potential military applications of AI technology.

Despite these measures, Nvidia has reportedly shipped around one million H20 units in 2024, generating more than $12 billion in revenue. Meanwhile, domestic alternatives from Huawei and Cambricon are emerging as potential substitutes amid the ongoing supply crunch.

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Samsung loses Qualcomm chip deal

Qualcomm is reportedly passing over Samsung for its upcoming Snapdragon 8s Gen 4 chip, choosing instead to stick with Taiwan’s TSMC for manufacturing.

Despite Samsung’s proven 4nm process and efforts to regain market confidence, Qualcomm appears hesitant to return after earlier issues with Samsung’s 3nm technology.

The new chipset is said to feature a mix of high-performance Cortex-X4 and A720 cores, notably lacking Qualcomm’s custom Oryon designs. However, this time around the company is being left out despite recent improvements in yield and packaging capabilities.

Samsung has focused on enhancing its legacy chip processes, recently beginning mass production of its fourth-generation 4nm chips.

The persistent trust issues seem to outweigh the technical strides, with Qualcomm opting to play it safe and rely solely on Taiwan’s TSMC’s consistency for this release.

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