China’s Taiwan Affairs Office has criticised a recent US decision to halt Taiwan Semiconductor Manufacturing Co. (TSMC) from shipping advanced chips to certain Chinese customers. The office’s spokeswoman, Zhu Fenglian, stated that the US is ‘playing the Taiwan card’ to heighten tensions in the Taiwan Straits and that the move negatively impacts Taiwanese businesses. This statement follows reports that TSMC stopped these shipments on Monday after an order from US authorities.
The restricted chips, widely used in AI technology, are part of ongoing US efforts to tighten export controls amid rising bipartisan concerns over Chinese access to advanced tech. The restrictions follow a recent notification by TSMC to the US Commerce Department, revealing that one of its chips was used in a Huawei AI processor. Huawei, a central figure in US-China tech tensions, has been under trade restrictions, requiring suppliers to secure licenses for any technology exports.
The US Supreme Court will review a high-stakes securities fraud case involving Nvidia, the chipmaker widely known for its AI hardware. Nvidia faces accusations from shareholders who claim the company misled investors about its exposure to the cryptocurrency market. The case, originating from a 2018 class-action lawsuit led by Swedish investment firm E. Ohman J:or Fonder AB, alleges Nvidia downplayed the extent to which its revenue was driven by crypto mining—a volatile business tied to fluctuating cryptocurrency values. The lawsuit contends that Nvidia’s failure to fully disclose this dependency led to an inflated stock price that plummeted when the crypto market softened in late 2018.
Nvidia’s legal defence argues that the plaintiffs did not meet the rigorous legal standards set by the 1995 Private Securities Litigation Reform Act, which requires concrete evidence of intentional or reckless deception to pursue securities fraud claims. The Ninth Circuit Court of Appeals revived the lawsuit after a federal judge initially dismissed it, ruling that the plaintiffs presented sufficient claims that Nvidia’s CEO, Jensen Huang, knowingly or recklessly misrepresented the company’s crypto-related revenues.
The case is one of two before the Supreme Court this month that could alter the legal landscape for securities fraud litigation. The other case, brought against Meta Platforms’ Facebook, also examines the threshold for holding corporations accountable for alleged deception. With President Biden’s administration backing the shareholders in the Nvidia case, the rulings, expected by mid-2024, could make it significantly harder for private parties to sue companies for alleged fraud, depending on the Court’s decision.
Japan is set to send 200 engineers and students to the United States over the next five years as part of an ambitious effort to revitalise its semiconductor industry. The trainees will join US-based chip venture Tenstorrent to specialise in the design of chips for AI, according to the Leading-edge Semiconductor Technology Center. This research organisation was established in 2022 to spearhead advanced chip development.
The program aims to restore Japan’s standing in the semiconductor market, which has waned in recent decades with the rise of competitors like South Korea and Taiwan. Training periods will last up to 18 months and are intended to develop the technical expertise needed to produce state-of-the-art semiconductors.
Supported by government funding of 7.5B yen (approximately $49M) over five years, the initiative is part of a state-backed project led by the New Energy and Industrial Technology Development Organization. Key collaborators include Japanese tech giant SoftBank Corp and the University of Tokyo, with applications opening by March next year. This strategic move underscores Japan’s commitment to reclaiming a leading role in global chip production as demand for advanced technologies continues to surge.
The CEOs of Europe’s top three chip manufacturers expressed concerns about the rising nationalist policies from the US, China, and Europe. They argue these policies are pushing each region to secure its own semiconductor supply, causing significant strain on the global chip industry.
Infineon, STMicroelectronics, and NXP—major suppliers of chips for electric vehicles and industrial technology—highlighted the challenges these policies are creating. Speaking at an electronics conference in Munich, Infineon’s CEO Jochen Hanebeck warned that further fragmentation is likely, particularly through tariffs, which could seriously disrupt global supply chains.
STMicroelectronics’ Jean-Marc Chery pointed out that duplicating supply chains across continents has led to costly investments in both materials and engineering. The pressure to maintain regional independence in chip production is placing an unsustainable burden on resources, he noted, particularly as China’s demand for chips in electric vehicles remains strong.
Kurt Sievers, CEO of NXP Semiconductors, argued that no country could feasibly achieve self-sufficiency in the chip industry. Attempting to do so, he said, would lead to prohibitive costs, making electronic devices unaffordable for consumers. He anticipates governments will eventually realise that global cooperation is essential for sustaining the semiconductor industry.
Vietnam’s semiconductor industry is gaining momentum as foreign companies invest in chip testing and packaging facilities, shifting some production away from China. Amid trade tensions between the US and China, several global players, including South Korea’s Hana Micron and US-based Amkor Technology, are expanding operations in Vietnam to diversify their production bases. Hana Micron has committed over $930 million to boost its packaging capacity, while Amkor is investing $1.6 billion to establish its largest packaging plant, transferring some machinery from its Chinese facilities.
The rise in investment is set to increase Vietnam’s global share in chip assembling, testing, and packaging, with estimates suggesting a rise from 1% in 2022 to around 8-9% by 2032. Domestic companies are also stepping up. Vietnamese tech firm FPT plans to start a testing facility near Hanoi next year, investing up to $30 million, while Sovico Group is seeking partnerships for a chip plant in Danang.
Vietnam’s strategic push into the semiconductor sector has been encouraged by the US, viewing the country as a potential alternative to China for supply chains. The Biden administration’s support, especially as trade tensions grow, has bolstered Vietnam’s role in this industry. With domestic and foreign investments combined, Vietnam is poised to strengthen its position as a key player in the global semiconductor back-end market.
Looking forward, Vietnam is ambitiously aiming to develop its front-end chipmaking capabilities, planning to have its first foundry operational by 2030. Viettel, a state-owned firm, is set to lead this initiative, indicating Vietnam’s broader goal of advancing its semiconductor industry and reducing reliance on foreign production bases.
Taiwan Semiconductor Manufacturing Co. (TSMC) confirmed that its investment plans in the United States will continue unchanged, following the election of Donald Trump as the next US president. TSMC, a leading global chipmaker and supplier to tech giants like Apple and Nvidia, is investing $65 billion in new semiconductor factories in Arizona.
Despite Trump’s previous comments accusing Taiwan of harming the US semiconductor industry, TSMC has recently secured a $6.6 billion subsidy from the US Commerce Department to support advanced chip production in Phoenix. TSMC’s US unit, along with other firms like GlobalFoundries, is expected to receive additional support under the Biden administration’s Chips and Science Act.
TSMC shares have remained resilient, bolstered by strong demand for AI technology, with its American Depositary Receipts rising 4.1% on Thursday as Nvidia’s stock surged, helping drive investor confidence.
Italy is adjusting its web tax policy, expanding it to cover smaller digital firms in an effort to address US concerns that the tax unfairly targets American tech giants. The decision, announced by Economy Minister Giancarlo Giorgetti, aims to defuse Washington’s threat of retaliatory tariffs. Italy first implemented a 3% digital service tax in 2019, focusing on large companies with annual global revenues over €750M, including giants like Meta, Google, and Amazon.
Now, under the proposed 2025 budget, Italy plans to eliminate the revenue threshold to broaden the tax’s reach to smaller companies. This change is expected to generate an additional €51.6M, supplementing the existing €400M in tax revenue. Giorgetti hopes this expansion will address US concerns over discrimination, noting that other EU countries may follow Italy’s lead.
Despite this effort, resistance remains within Italy’s government, as some coalition members argue the tax should focus exclusively on large US tech firms. As global efforts to establish a minimum digital tax remain stalled due to international disagreements, Italy’s adjustments reflect its attempt to balance international relations with economic interests.
GlobalWafers has expressed optimism that the US Chips and Science Act will continue to provide strong support for chip manufacturers under the new administration. This landmark act, aimed at boosting domestic semiconductor production, offers financial incentives to encourage companies to invest in US facilities—a vital step toward securing supply chains and reducing reliance on foreign manufacturing.
In a recent statement, GlobalWafers noted that programs of this scale and duration are typically supported across different US administrations, given their importance to economic and national security. The company sees the CHIPS Act as essential for driving investments in semiconductor production and also for advancing technological innovation within the industry. They anticipate that the act’s stability under a Trump administration will allow businesses to plan long-term investments in US operations without interruption.
By fostering consistent investment in chip manufacturing, GlobalWafers believes the CHIPS Act will help ensure a robust, self-reliant US semiconductor ecosystem. The program’s continuation is seen as crucial for sustaining growth in the industry, creating jobs, and advancing the global competitiveness of the US in semiconductor technology.
The US Supreme Court is currently deliberating whether to allow a securities fraud lawsuit against Facebook, now Meta, to proceed. Investors, led by Amalgamated Bank, allege that the company misled them by failing to disclose details about a 2015 data breach involving Cambridge Analytica, which ultimately affected millions of users. The case questions whether Facebook’s public risk disclosures should have included specific details about this incident rather than presenting it as a potential future risk.
During the hearing, justices debated whether Facebook’s statements to investors were misleading by suggesting the risk was hypothetical. Conservative Chief Justice John Roberts noted that risk disclosures might imply past occurrences, while Justice Clarence Thomas highlighted how a lack of explicit detail might lead investors to believe the incident had never happened. The case has significant implications for the interpretation of the Securities Exchange Act, which requires firms to report business risks transparently.
This lawsuit is one of two upcoming US Supreme Court cases examining corporate transparency in investor disclosures. A ruling in favor of the investors could heighten the standards companies must meet in alerting investors to both past and potential risks, with the decision expected by June.
A top Republican lawmaker has criticised the Biden administration for not taking stronger action against China’s Semiconductor Manufacturing International Corp (SMIC), accusing the company of aiding China’s chip industry and military complex. Michael McCaul, chair of the House Foreign Affairs Committee, called on the US Commerce Department to investigate whether SMIC is violating export controls by producing chips for the sanctioned telecommunications giant Huawei.
In a letter to the Commerce Department, McCaul highlighted concerns over SMIC’s recent advancements, including the production of advanced chips used in Huawei smartphones and plans to supply AI processors for Huawei. He described these developments as a ‘smoking gun’ that could enable China to surpass the US in AI. McCaul has urged the department to halt SMIC’s licenses unless the company undergoes a full audit.
While the US Commerce Department acknowledged McCaul’s letter, it emphasised that it has been tough on China in its enforcement of export controls. SMIC was added to the US restricted trade list in 2020, and Huawei, facing similar sanctions since 2019, have both denied any wrongdoing. The Chinese embassy in Washington has dismissed US criticism, calling it an overreach of national security concerns.
