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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Taiwan‘s President Lai Ching-te has pledged to address concerns raised by former US President Donald Trump regarding Taiwan’s semiconductor industry. Speaking after a National Security Council meeting, Lai acknowledged the importance of global semiconductor supply chains and vowed to work with Taiwan’s semiconductor sector to develop strategies to address US concerns. He emphasised the need for democratic nations, including the US, to collaborate on creating a “democratic supply chain” for advanced chips, particularly in the growing AI sector.
Lai also reassured the US of Taiwan’s commitment to contributing to the international economy, noting that Taiwan, home to the world’s largest contract chipmaker, TSMC, plays a vital role in the semiconductor market. TSMC is heavily invested in the US, including a $65 billion investment in new factories in Arizona. Despite these efforts, Taiwan’s defence spending remains a topic of criticism, particularly from Trump, who has repeatedly highlighted Taiwan’s insufficient military expenditure amid increasing threats from China.
In response to US concerns, Lai revealed plans to propose a special budget to raise Taiwan’s defence spending from 2.5% of GDP to 3%. This proposal is currently being debated in parliament, where opposition parties hold a majority. Lai stressed that Taiwan’s determination to defend itself must be clear, as international allies continue to voice concerns over its defence readiness.
Finally, Lai reiterated Taiwan’s key role as a reliable trading partner to the US, especially in high-tech exports such as semiconductors. Taiwan’s trade surplus with the US surged by 83% last year, with exports reaching a record $111.4 billion.
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The rise of DeepSeek’s AI models is offering Chinese chipmakers like Huawei a better chance to compete in the domestic market against the powerful processors from US companies like Nvidia. For years, Huawei and other Chinese manufacturers have struggled to match Nvidia’s high-end chips, which are essential for training AI models. However, DeepSeek’s focus on ‘inference’ rather than raw processing power has led analysts to believe that it could help close the gap between Chinese-made processors and their US counterparts. Inference refers to the phase where AI models use trained data to make predictions, a process less reliant on heavy computational resources.
Several Chinese AI chipmakers, including Huawei, EnFlame, and Moore Threads, have recently stated that their products will support DeepSeek models, although few details have been disclosed. Industry executives predict that DeepSeek’s open-source nature and its low fees will drive the adoption of AI, helping Chinese companies bypass US export restrictions on advanced chips. In fact, Chinese chips like Huawei’s Ascend 910B have already been recognised as better suited for inference tasks, which require less computational power than training.
Despite these developments, Nvidia still dominates the global AI chip market. Analysts point out that while Chinese chips are cost-effective for inference tasks, Nvidia’s superior chips remain the preferred choice even for inference. Nvidia’s CUDA platform, which provides developers with a robust software environment, remains a key advantage, and Chinese companies like Huawei have struggled to convince developers to abandon CUDA in favour of their platforms, such as Huawei’s Compute Architecture for Neural Networks (CANN). The software performance of Chinese AI chips continues to lag behind, making it challenging for them to directly challenge Nvidia’s dominance.
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China’s spending on chipmaking equipment is expected to fall by 6% in 2025, marking its first decline since 2021, according to Canadian research firm TechInsights. The drop follows years of aggressive stockpiling as Chinese firms sought to bypass tightening US export controls. Last year, China accounted for 40% of global semiconductor equipment purchases, but its share is projected to shrink significantly.
Analysts attribute the decline to a combination of overcapacity and the impact of US sanctions, which aim to limit China’s ability to develop advanced chips with potential military applications. Despite these restrictions, companies like SMIC and Huawei have continued to push forward, achieving technological breakthroughs by relying on more expensive and labour-intensive manufacturing processes.
China has made strides in producing mature-node chips and expanding its domestic semiconductor industry, with firms like Naura Technology Group gaining global market share. However, the country remains dependent on foreign suppliers for critical tools such as lithography machines, highlighting ongoing challenges in its push for self-sufficiency.
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China’s chipmaking equipment purchases are expected to decline in 2025, following three years of growth, due to overcapacity and increasing restrictions from US sanctions. After purchasing $41 billion in equipment in 2024, which accounted for 40% of global sales, China’s spending is predicted to fall by 6% to $38 billion this year, marking the first decline since 2021. The drop in demand is attributed to reduced purchases in response to export controls and an excess of manufacturing capacity.
Despite these challenges, China has been a key driver for the global wafer fabrication equipment market over the past few years, even as other sectors saw downturns. Much of China’s equipment buying has been linked to stockpiling efforts in response to US sanctions aimed at limiting China’s ability to produce advanced chips, particularly for military use. Chinese firms, like SMIC and Huawei, have continued to advance in chip production, although at a higher cost and with more effort, while also focusing on expanding in the mature-node chip market.
In addition to growing its domestic production capabilities, China’s leading equipment manufacturers, such as Naura Technology Group and AMEC, are expanding internationally. However, the country still faces significant challenges in self-sufficiency, particularly in areas like lithography systems, testing, and assembly tools. While China’s domestic companies have made strides in equipment sales, they still rely heavily on foreign suppliers for advanced technology in these areas.
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Lam Research, a leading US-based chip toolmaker, has announced plans to invest over 100 billion rupees ($1.2 billion) in Karnataka, India. The company has signed a memorandum of understanding with the Karnataka Industrial Area Development Board to facilitate the investment, which was revealed during the ‘Invest Karnataka’ event.
The initiative aligns with India’s efforts to strengthen its semiconductor ecosystem. Prime Minister Narendra Modi’s government has introduced a $10 billion incentive programme to attract global chip firms. With semiconductor market projected to reach $63 billion by 2026 in India, the country is emerging as a significant player in the global semiconductor race.
Karnataka, home to Bengaluru, serves as a critical driver of India’s economy. Known for its contributions to IT services, software, and manufacturing exports, the state is increasingly positioning itself as a hub for high-tech investments.
India’s IT minister hailed Lam Research’s investment as a major step in the nation’s semiconductor ambitions. The announcement reflects growing confidence in the government’s vision for a robust and competitive semiconductor industry.
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