Huawei’s founder Ren Zhengfei told President Xi Jinping that China’s concerns about a lack of domestically developed chips and operating systems have eased, following a meeting with key entrepreneurs. According to Chinese state media, Ren expressed confidence that China would rise faster, thanks to its advancements in technology, particularly in semiconductors and software. The phrase ‘lack of core and soul,’ which refers to the absence of critical technology like chips and operating systems, was first used in 1999 to highlight challenges in China’s information industry.
The meeting, which included prominent founders such as BYD’s Wang Chuanfu and Xiaomi’s Lei Jun, discussed the achievements and growth in sectors like electric vehicles and electronics. Ren’s comments reflected the progress made despite challenges like US sanctions, with Huawei playing a key role in pushing for China’s self-sufficiency. Wang shared how China’s EV industry had grown significantly, while Lei praised Xi’s leadership, stating that under his guidance, any challenges could be overcome.
Other entrepreneurs, including representatives from Will Semiconductor, Unitree Robotics, and New Hope Group, also spoke at the meeting, although details about their comments were not widely disclosed. The meeting was part of a broader push for China to strengthen its technological independence.
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STMicroelectronics has announced the launch of a new computer chip aimed at the rapidly expanding AI data centre market. Developed in collaboration with Amazon Web Services (AWS), the photonics chip uses light rather than electricity, which helps increase speed and reduce power consumption in AI data centres. These chips are expected to be used in transceivers, which are crucial components in data centre infrastructure.
As top US software companies plan to invest $500 billion into AI infrastructure, there is rising demand for specialised chips, not only for computing but also for memory, power, and communications applications. ST’s new chip targets the communications sector, with a focus on improving the efficiency of transceivers, which are essential in AI data centres. The company also has a collaboration agreement with AWS to deploy this technology in their infrastructure later this year.
ST is working with a leading provider of optical solutions, although the company’s name has not been disclosed, to integrate the new chip into next-generation transceivers. The market for such devices, valued at $7 billion in 2024, is expected to grow significantly, reaching $24 billion by 2030. ST will begin mass production of these chips at its facility in Crolles, France.
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Lam Research has introduced two new chipmaking tools designed to support the growing demand for advanced AI semiconductors. The company unveiled ALTUS Halo, a deposition tool that applies molybdenum layers to chips, enhancing their performance and enabling further scaling for next-generation devices.
Micron Technology has already adopted the tool, bringing molybdenum into mass production, according to executive Mark Kiehlbauch.
Alongside ALTUS Halo, Lam launched Akara, an etching tool that removes excess material from semiconductor wafers, creating precise chip structures essential for complex AI applications.
These innovations position Lam to compete with major players in wafer fabrication equipment, including Applied Materials, ASML, and KLA Corp.
As AI-driven semiconductor demand surges, major clients like Micron, Samsung Electronics, and Taiwan Semiconductor Manufacturing Co (TSMC) are relying on advanced manufacturing tools.
TSMC executive Y.J. Mii highlighted the need for innovative solutions to develop more powerful chip architectures. In January, Lam reported a strong third-quarter revenue forecast, signalling positive growth amid the AI chip boom.
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The European Commission has approved a €920 million German state aid package for Infineon to build a new semiconductor manufacturing plant in Dresden. This funding will support the company’s MEGAFAB-DD project, which aims to produce a wide variety of chips. The new facility, expected to reach full capacity by 2031, will play a key role in strengthening Europe’s technological autonomy and security of supply in semiconductor technologies, aligning with the European Chips Act’s goals.
This move is part of a global trend where chipmakers are investing heavily in new plants, taking advantage of subsidies from the US and the EU to maintain the West’s edge in semiconductor technology over China. The European Commission has allocated €15 billion for public and private semiconductor projects by 2030, further reinforcing the region’s commitment to securing its position in the industry.
Infineon’s €3.5 billion investment, the largest in its history, will help address the growing demand for semiconductors used in industrial, automotive, and consumer applications. The company has committed to ensuring the plant benefits the wider EU semiconductor value chain, including research and development for the next generation of chips. The plant will also contribute to crisis preparedness by prioritising orders in case of supply shortages.
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Microsoft has announced a groundbreaking quantum computing chip, Majorana 1, which it claims could make useful quantum computers a reality within years. The company believes this innovation puts it ahead in the race to unlock quantum computing’s vast potential.
Unlike classical computers, quantum systems could perform calculations in fields like medicine and chemistry that would otherwise take millions of years, although they also pose risks to current encryption standards.
The Majorana 1 chip relies on a particle called the Majorana fermion, theorised in the 1930s. Microsoft says its unique design makes the chip less error-prone than its competitors.
Despite having fewer qubits than chips from Google and IBM, the company argues that the lower error rates mean fewer qubits are needed for practical applications.
Microsoft’s development of Majorana 1 combines advanced materials like indium arsenide and aluminium, using a superconducting nanowire to observe and control the Majorana particles.
Fabricated at its labs in Washington and Denmark, the chip was described as a ‘high risk, high reward’ endeavour by Jason Zander, a senior Microsoft executive.
Quantum physicist Philip Kim from Harvard University praised the innovation, calling it an exciting step forward. While scaling up the technology remains a challenge, experts suggest Microsoft’s approach could lead to significant advancements in quantum computing.
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Resonac Holdings, a leading chip materials maker in Japan, is positioning itself to make strategic acquisitions after reducing its borrowing, according to CEO Hidehito Takahashi. Speaking to Reuters, Takahashi expressed the company’s intention to take an aggressive approach this year, particularly eyeing opportunities when a state-backed fund exits its competitor JSR, a photoresist maker recently taken private.
Resonac, formed by Showa Denko’s acquisition of Hitachi Chemical, has been divesting assets, including a planned partial spin-off of its petrochemical business. Takahashi sees JSR’s potential exit as a key opportunity for Resonac to expand its footprint in the semiconductor materials sector. Japan’s semiconductor market remains competitive, despite the country’s reduced role in chip manufacturing, and companies like Resonac must scale up to remain viable.
In addition to its expansion efforts, Resonac is establishing an R&D centre in Silicon Valley to strengthen its ties with firms in the region. However, Takahashi made it clear that the company is not currently considering manufacturing materials in the US, though future demand could prompt a reassessment of such plans.
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Samsung Electronics has nominated two of its top chip executives and a semiconductor expert for its board, aiming to enhance its position in the competitive chip market. The move reflects a strategic effort to revitalise its struggling semiconductor business.
Jun Young-hyun, head of Samsung’s chip division, and Chief Technology Officer Song Jai-hyuk have been proposed for board membership. Additionally, Lee Hyuk-jae, a professor at Seoul National University and leader of its semiconductor research centre, has been named as an outside director.
Samsung has been working to regain its footing in the semiconductor industry, where it recently lost market leadership in high-bandwidth memory (HBM) chips to rival SK Hynix. HBM chips are crucial for AI-driven GPUs, a rapidly growing market dominated by firms like Nvidia.
The nominations will be presented for approval at Samsung’s shareholders’ meeting scheduled for 19 March. The company hopes the addition of these experts will strengthen its long-term strategy in the chip sector.
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Taiwanese electronics companies are preparing to increase investments in Texas, with major announcements expected in May, coinciding with President Donald Trump’s first 100 days in office. Richard Lee, head of the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that several large Taiwanese companies, particularly those in the AI server industry, are looking to expand their operations in Texas. This follows proactive efforts by Texas’ Republican-led government to attract Taiwanese investment.
The move comes as Trump has criticised Taiwan for its semiconductor business and threatened tariffs on trade partners with significant trade deficits, potentially targeting Taiwan. Last week, Taiwan’s President Lai Ching-te pledged to invest more in the US, adding to the momentum. Companies like Foxconn, Compal, and Inventec, which already have operations in Texas, are expected to announce further expansions, particularly to accommodate the growing demand for AI-related technologies.
Foxconn, which manufactures products for major tech companies like Apple and Nvidia, has already made a $33 million investment in land and factory buildings in Texas. With the demand for AI servers rising, Taiwanese manufacturers are eyeing Texas as a strategic location to meet the growing market needs. However, neither Foxconn nor Compal has yet provided specific details on their plans.
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Taiwan’s GlobalWafers confirmed on Friday that its investments in the US are proceeding as planned, despite potential changes under the US CHIPS Act. The company has been awarded $406 million in government grants to expand its silicon wafer production in Texas and Missouri. However, the Biden administration is considering changes to some CHIPS Act funding, which has raised concerns for GlobalWafers, as sources indicated there could be delays or renegotiations of some semiconductor-related disbursements.
GlobalWafers CEO Doris Hsu stated that the company has not yet received any notifications regarding changes to its subsidy terms. She emphasised that, if adjustments to the CHIPS Act do occur, the company would need to reassess its investment strategy in the US. Hsu added that the decision would depend on factors such as US demand, pricing conditions, and potential tariffs, though she noted that these scenarios are still hypothetical at this stage.
The company is moving forward with its expansion plans across three US plants, with funding tied to specific milestones. Hsu reassured that the planned investments are continuing according to schedule, with no immediate changes to the company’s strategy. GlobalWafers remains optimistic about its US operations, bolstered by its existing factories in the country and its strong global presence.
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The Trump administration is reevaluating the conditions of CHIPS and Science Act subsidies, which allocate $39 billion to boost domestic semiconductor production. Sources indicate that ongoing projects under the 2022 law are being reviewed for compliance with new policy priorities, potentially leading to renegotiations or delays.
GlobalWafers, a Taiwanese company set to receive $406 million for projects in Texas and Missouri, noted that Washington has not yet communicated any changes.
However, new White House policies are reportedly under review, including those related to unionised labour and childcare for factory workers. Each subsidy agreement has unique milestones that recipients must meet to secure funding.
Concerns over companies expanding operations in China despite receiving CHIPS funding have also emerged. Intel, for example, announced a $300 million investment in a Chinese facility after receiving substantial subsidies.
The Semiconductor Industry Association has expressed its willingness to collaborate with the Trump administration to streamline program requirements and maintain progress.
Industry giants such as TSMC, Samsung, and Intel continue to navigate the shifting landscape of the CHIPS Act, with no immediate clarity on how changes will affect existing agreements. The White House has yet to respond to requests for further comment on these developments.
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