TSMC is reconfiguring its US strategy after a challenging start at its Fab 21 facility near Phoenix, Arizona. The company's initial module took nearly five years to move from groundbreaking to production—far longer than the typical two-year process observed in Taiwan. Early setbacks, including labor issues, rising costs, and cultural differences, slowed progress, but these hurdles have provided valuable lessons. With a clearer understanding of the local construction environment, TSMC plans to speed up future projects. Company executives have identified reliable local contractors and addressed many bottlenecks that once hindered progress. As a result, the Taiwanese maker is gearing up to accelerate construction timelines for its upcoming modules. Notably, TSMC intends to start building its third fab—Fab 21 module 3—this year, aiming for a pace similar to that in Taiwan.

In the current phase, TSMC is finalizing equipment installations for Fab 21 module 1 while laying the groundwork for module 2. The plan is to begin trial production of advanced 3 nm-class chips at module 2 in 2026, with high-volume manufacturing expected to kick off by 2028. The accelerated schedule for module 3 is seen as a pathway to faster production of next-generation chips, including those using the N2-series and A16 process technologies. However, rapid construction is not without risks. A critical concern remains the timely procurement of essential fab tools. Leading suppliers such as ASML and Applied Materials face significant backlogs and capacity constraints, which may delay the delivery of necessary equipment. As TSMC vows to build its US capacity more swiftly, the entire supply chain is watching closely to see if these supply chain challenges can be resolved, ensuring that the company meets its ambitious production timelines while expanding its foothold in the American market.

ASUS and MSI's price hiking of GeForce RTX 50-series graphics cards is already a well explored subject matter (news-wise), but GPU market watchdogs have spent time investigating circumstances further down from the perch of NVIDIA's most visible board partner players. Citing evidence presented on the official Team Green subreddit, VideoCardz has levelled criticism in ZOTAC's direction. Apparently, the brand's North American store has—quite recently—jacked up asking prices for its custom GeForce RTX 5090 designs. The Hong Kong-based manufacturer only offers a choice of two models via its US webstore: SOLID OC and AMP Extreme INFINITY. At the time of writing, ZOTAC's webshop is undergoing "construction work"—fortunately, screenshots and crucial points of info were preserved by Redditors and media outlets. The flagship AMP Extreme INFINITY SKU has hit an unprecedented $2999.99 price point, although not reaching the heights of ASUS Astral ($3359.99!). A mid-March Wayback Machine save state reveals a previous RTX 5090 AMP Extreme INFINITY listing at $2599.99, but its initial launch price was $2499.99. Naturally, a flagship design—comprised of a robust cooling solution, fancy features/accessories and ARGB lighting—demands a premium upcharge, but ZOTAC's top-tier SKU is priced $1001 above Team Green's $1999 MSRP baseline.

ZOTAC's GeForce RTX 5090 SOLID (non-OC) SKU was supposed to act as the "barebones" baseline MSRP-conformant model, but price watchers noted that ZOTAC USA had removed this entry from the official webstore. Tom's Hardware reckons that the last recorded cost of ownership was $2199.99. ZOTAC's next best option is the brand's factory-overclocked variant—GeForce RTX 5090 SOLID OC—now adjusted up to $2699.99. Launch pricing was somewhere just above $2200, but that figure has changed over time. It was $2369.99, prior to this week—according to a Wayback Machine archived state. As reported last month, ZOTAC rolled out a "Priority Access Campaign" via Discord—this anti-scalping strategy received praise upon initiation, but VideoCardz's watchful eye has kept track of very few successful transactions. According to their latest investigative piece, a "top secret" ZOTAC Discord group was formed—this separate elite member-focused channel offers even "easier access" to coveted cutting-edge gaming graphics card.

Over a week ago, ASUS "quietly" unveiled a revamped Q-Release Slim mechanism—eagle-eyed hardware media outlet—Uniko's Hardware—spotted this revised quick release PCIe system on a freshly detailed premium ROG CROSSHAIR X870E APEX motherboard model. Wider press reportage jumped on the manufacturer's mixed bag of official responses; regarding reported damage inflicted by a "problematic" design. The ASUS North American office downplayed the severity of this matter, while colleagues in China launched a fairly comprehensive compensation program. According to VideoCardz, the latter organization has confirmed—as of last week—that a problem-free/improved Q-Release Slim system is on the way.

On Monday, Tweakers divulged its direct communication with ASUS—a spokesperson answered the Dutch site's query: "yes, a change has been made to the Q-Release Slim system for new X870 motherboards. Based on user feedback, we have modified the PCIe slot for the Q-Release Slim system, including removing a metal component to reduce the possibility of damage to the video card." The company representative noted that newly introduced/attached stickers will inform users about "correct system usage." Based on the aforementioned ASUS statement, Tweakers reported: "that both the original and revised versions of the system have been extensively tested and that users should study the included documentation to use the Q-Release Slim system properly. According to the manufacturer, both versions of the technology meet 'industry standards for wear resistance'." That last point suggests that ASUS will not be issuing a wide recall of currently released boards that feature original Q-Release Slim mechanisms.

A recent study by TechInsights is reshaping the narrative around the cost of semiconductor manufacturing in the United States. According to the survey, processing a 300 mm wafer at TSMC's Fab 21 in Phoenix, Arizona, is only about 10% more expensive than similar operations in Taiwan. This insight challenges earlier assumptions based on TSMC founder Morris Chang's comments, which suggested that high fab-building expenses in Arizona made US chip production financially impractical. G. Dan Hutcheson of TechInsights highlighted that the observed cost difference largely reflects the expenses associated with establishing a brand-new facility. "It costs TSMC less than 10% more to process a 300 mm wafer in Arizona than the same wafer made in Taiwan," he explained. The initial higher costs stem from constructing a fab in an unfamiliar market with a new, sometimes unskilled workforce—a scenario not typical for mature manufacturing sites.

A significant portion of the wafer production cost is driven by equipment, which accounts for well over two-thirds of the total expenses. Leading equipment providers like ASML, Applied Materials, and Lam Research charge similar prices globally, effectively neutralizing geographic disparities. Although US labor costs are higher than in Taiwan, the heavy automation in modern fabs means that labor represents less than 2% of the overall cost. Additional logistics for Fab 21, including the return of wafers to Taiwan for dicing, testing, and packaging, add complexity but only minimally affect the overall expense. With plans to expand domestic packaging capabilities, TSMC's approach is proving to be strategically sound. This fresh perspective suggests that the apparent high cost of US fab construction has been exaggerated. TSMC's $100B investment in American semiconductor manufacturing reflects a calculated decision informed by detailed cost analysis—demonstrating that location-based differences become less significant when the equipment dominates expenses.

NVIDIA's CEO Jensen Huang made some interesting commentary for the Financial Times, stating that the company will procure over half a trillion US Dollars worth of electronics over the next four years, and it it plans to keep hundreds of billions from the supply chain procurement in the US. "Overall, we will procure, over the course of the next four years, probably half a trillion dollars worth of electronics in total. And I think we can easily see ourselves manufacturing several hundred billion of it here in the US," said Jensen for FT. NVIDIA currently manufactures its silicon at TSMC's facilities, as well as electronics like motherboards and servers at Foxconn. However, the geopolitical situation is making NVIDIA reconsider its supply chain dependencies, and the company is looking for more US-based manufacturing.

NVIDIA confirmed that its latest "Blackwell" series of GPUs, including the latest Blackwell Ultra, are being manufactured at TSMC's Arizona facilities. TSMC announced a $100 billion investment in its Arizona expansion, and NVIDIA is ready to take up more of TSMC's capacity to meet its ever-growing demand for GPUs. During the GTC 2025 event, Jensen noted that only four cloud service providers will use 3.6 million GPUs this year. That is without any AI labs and enterprises, which are massive consumers of GPUs (xAI only has 200,000 GPU clusters). To continue manufacturing excellence so customers won't suffer, NVIDIA is also looking at other options for supply chain manufacturing partners. Intel, the only US-based company capable of producing advanced silicon, is a potential target for NVIDIA. "We evaluate their foundry technology on a regular basis, and we are ongoing in doing that... We look for opportunities to be a customer of theirs... I have every confidence that Intel can do it," added Jensen, who also stated that NVIDIA is interested in silicon manufacturing and chip packaging services, as Intel's Foveros 3D packaging and other technologies are attractive for Team Green.

At CES 2025, ASUS unveiled their elite-tier ROG Crosshair X870E Apex motherboard design. Additionally, early January press material teased another top contender: "ROG Crosshair X870E Extreme is also waiting in the wings, with details to be shared on the way to its expected release in the first quarter (of 2025)." As reported by VideoCardz, the Taiwanese manufacturer seems to be readying its mysterious ultra-premium model for an imminent launch. Last week, HWiNFO v8.23-5685 Beta release notes turned up—revealing the existence of "enhanced sensor monitoring on ASUS ROG Crosshair X870E Extreme." Concurrently, a smattering of retail/e-tail listings have turned up in Europe. The lowest observed asking price (including VAT) was €1202.80, courtesy of Max ICT's (Netherlands) premature publishing of a product page.

Hopping across the Atlantic, industry watchdogs noted that Newegg was demanding a cool $749 for ASUS ROG Crosshair X870E Apex pre-orders. Potential European customers will likely be greeted by a ~€827 (inc. VAT) price point. Since January, the Republic of Gamers marketing team has kept quiet on the X870E Extreme front. Their fancily-appointed board is still an unknown quantity in many regards; recent retail leaks lack technical information and visual representation. As noted by VideoCardz, time is running out for a Q1 2025 launch. As we head into April, Q2 looms in the near distance.

Graphics card price watchers have highlighted refreshing downward motion in Europe, apparently affecting three out of the four GeForce RTX 50 series graphics cards. VideoCardz received a couple of email tip-offs from its pan-European audience, prompting the publication of a short investigative piece. NVIDIA's slight adjustment of official pricing for GeForce RTX 5090, RTX 5080, and RTX 5070 models is the result of a strengthened Euro. The US dollar's value has dropped by roughly 3.9 %; according to recent detective work, focusing on German trends. Team Green's "generous" reductions have arrived roughly two weeks after a stabilization of the USD-EUR exchange rate.

Curiously, the GeForce RTX 5070 Ti is an outlier here—NVIDIA did not reduce its German guide price (€879 + VAT) for this upper-mid-range offer. A Founders Edition does not exist at this GPU level, so Team Green has tasked its board partners with the creation of so-called "MSRP conformant" alternatives. One of VideoCardz's tipsters has observed various GeForce RTX 50 series models simply "rotting on shelves," due to potential buyers balking at unreasonable retailer-implemented price hikes. NVIDIA's minor changes (4.3 to 4.6 %) are unlikely to make a noticeable impact across the Euro zone.

According to Akira Amari, a Japanese politician and semiconductor industry expert, it's unlikely that the US will ever reach self-sufficiency when it comes to semiconductor production. This has nothing to do with foundries, as the US might manage to be self-sufficient in terms or raw chip production needs, but the country is said to be unlikely to be able to reach a complete supply chain of everything else needed to produce the chips. Countries like Japan, Taiwan, the Netherlands, Belgium, South Korea and more are heavily invested in supplying not only components needed to produce semiconductors, but also machinery and chemicals.

Amari is suggesting that these countries should form a co-operative alliance to help strengthen their supply chains at home, rather than putting all eggs in one basket to try and appease the US. This statement comes after TSMC promised to invest an additional US$100 billion over an unspecified time frame in the US. Time will tell if he's right or not, but it's unlikely that any country will ever be self-sufficient when it comes to making semiconductors, regardless of how big they are or what natural resources they have access to locally.

ASUS has discreetly modified its controversial Q-Release Slim mechanism in the newly launched ROG Crosshair X870E Apex motherboard, removing a metal bracket linked to GPU PCIe connector scratches. The unannounced revision, spotted by Uniko's Hardware, follows months of backlash from enthusiasts who reported cosmetic damage to high-end GPUs after repeated use of the quick-release feature. While ASUS has not formally addressed the redesign, it acknowledges the issue—a stark contrast to its earlier dismissal of concerns as "typical wear-and-tear" after 60+ removal cycles. The controversy, first spotted in January 2025, escalated when users shared evidence of scratched PCIe pins on platforms like Reddit and Bilibili.

ASUS's global responses varied sharply: its US division downplayed functional risks, while ASUS China rolled out compensation, including motherboard replacements and store credits, and confirmed a redesign was underway. This regional split shows differing consumer protection norms, with China's aggressive compensation contrasting Western markets' reliance on warranty assurances. Competitors seized the moment. GIGABYTE's AORUS Japan publicly mocked ASUS with a 100-cycle stress test of its EZ Latch Plus, showcasing zero GPU damage—a direct jab at Q-Release Slim's durability. The campaign, echoed by GIGABYTE's Western accounts, emphasized rivalries in the premium motherboard segment. ASUS's quiet hardware fix avoids a formal recall, likely due to the niche impact—frequent GPU swaps are rare among mainstream users.

ASUS executives have warned investors that consumers may face higher prices later this year as the company accelerates its manufacturing exodus from China in response to anticipated US tariff policies. Despite efforts to absorb costs internally, ASUS acknowledged during its recent earnings call that production relocation expenses could eventually impact retail pricing. This comes as the PC industry braces for trade policy changes under the new US administration. While competitors like Dell and HP have already established diversified supply chains outside China over several years, ASUS faces the financial pressures of rapidly developing alternative production capacity. Such transitions induce significant costs beyond facility construction, including workforce training, supply chain reconfiguration, and temporary production inefficiencies.

"We will try to limit these costs to within a reasonable level. However, as we make further adjustments to production lines, it may become possible that we need to offset some of these costs to our clients," stated an ASUS co-CEO during the call. The executive noted that several competing manufacturers have already implemented price adjustments to compensate for similar expenses. ASUS wants to maintain competitive pricing despite these pressures, indicating a willingness to accept margin compression in the short term. Component-level products may experience more immediate pricing pressure than fully assembled systems, where manufacturers can partially offset tariff impacts through internal efficiencies. ASUS's cautious messaging suggests the company is attempting to balance shareholder concerns about profitability with consumer sensitivity to price increases in the competitive PC market.

Samsung Electronics is taking a close look at its chip design and foundry operations. This action could lead to organizational restructuring, including executive reassignments and workforce reallocation. The initiative aims to strengthen Samsung's competitive position against industry leaders such as TSMC. In January, the company's executives initiated an in-depth evaluation of the System LSI division, which handles chip design. After that, the company plans to extend the review to its foundry business. Significant restructuring may occur within the System LSI division, one proposal involves transferring the Exynos system-on-chip (SoC) business to the Mobile Experience (MX) division to better align with Samsung's smartphone strategy.

Samsung is also evaluating the potential pause of investments in its Pyeongtaek (South Korea) and Taylor (US) manufacturing facilities for its foundry business. At the same time, the company is developing strategies to improve yield rates in its advanced manufacturing processes. Moreover, Samsung is also considering changes within its image sensor business, potentially shifting focus from high-resolution sensors toward products for autonomous vehicles and robotics applications. This action represents the first major internal assessment since Samsung established its management analysis department in November 2024. The primary objective is to revitalize underperforming business divisions.

ASUS has taken the unusual step of formally announcing day one availability of its brand-new offerings—in TUF Gaming and PRIME forms—to the NVIDIA subreddit community. Today (March 5) marks the retail rollout of AIB-built GeForce RTX 5070 graphics cards—unfortunately, NVIDIA Founders Edition enthusiasts will have to wait a little longer for a now delayed launch. VideoCardz has called out ASUS on a number of occasions over the past month and a half, regarding alleged GeForce RTX 50-series "price manipulation" practices. In their latest bit of company coverage, the publication concedes that ASUS representatives are doing a better job in communicating launch day circumstances to its target audience. In contrast, other board partners have (reportedly) not reached out to the hardware gaming community.

The ASUS_MKTLeeM account has produced a useful "Day 1 Pricing and Availability in US and CA" buying guide for TUF Gaming GeForce RTX 5070 OC Edition ($739.99 USD) and ASUS Prime GeForce RTX 5070 models (standard: $549.99, OC: $699.99). The company rep disclosed the outlook for this opening salvo: "we expect that most, if not all of these will be available at 6am PST for the US. Of course, things happen sometimes; and a particular e-tailer or retailer may have a website issue or may be pending for stock to reach them. Feel free to ask later in the day and we can track this down...For Canada, I do not have confirmation on which stores will have Day 1 stock at this time, unfortunately. If I receive confirmation before the end of the day I will update it." They noted that Best Buy Canada may experience delayed shipments (1-3 weeks) of TUF Gaming RTX 5070 OC Edition stock. Unfortunately, higher-end options are not releasing alongside "cheaper" brethren parts—MKTLeeM stated: "the ROG Strix cards will not be available Day 1. There is currently no ETA for when these cards will be available, but we will update the post and/or the availability post in the comments when we have an update." Press outlets have highlighted the apparent limited range of ASUS launch day models. Interestingly, the TUF Gaming RTX 5070 (non-OC) option was not included in MKTLeeM's subreddit thread.

When the US imposed sanctions on Chinese semiconductor makers, China began the push for sovereign chipmaking tools. According to a study conducted by the Emerging Technology Observatory (ETO), Chinese institutions have dramatically outpaced their US counterparts in next-generation chipmaking research. Between 2018 and 2023, nearly 475,000 scholarly articles on chip design and fabrication were published worldwide. Chinese research groups contributed 34% of the output—compared to just 15% from the United States and 18% from Europe. The study further emphasizes the quality of China's contributions. Focusing on the top 10% of the most-cited articles, Chinese researchers were responsible for 50% of this high-impact work, while American and European research accounted for only 22% and 17%, respectively.

This trend shows China's lead isn't about numbers only, and suggests that its work is resonating strongly within the global academic community. Key research areas include neuromorphic, optoelectric computing, and, of course, lithography tools. China is operating mainly outside the scope of US export restrictions that have, since 2022, shrunk access to advanced chipmaking equipment—precisely, tools necessary for fabricating chips below the 14 nm process node. Although US sanctions were intended to limit China's access to cutting-edge manufacturing technology, the massive body of Chinese research suggests that these measures might eventually prove less effective, with Chinese institutions continuing to push forward with influential, high-citation studies. However, Chinese theoretical work is yet to be proven in the field, as only a single company currently manufactures 7 nm and 5 nm nodes—SMIC. Chinese semiconductor makers still need more advanced lithography solutions to reach high-volume manufacturing on more advanced nodes like 3 nm and 2 nm to create more powerful domestic chips for AI and HPC.

TSMC appears to be in for a competitive period, as sources close to Reuters note that both NVIDIA and Broadcom have tested Intel's 18A node with initial test chips. These tests are early indicators of whether Intel can successfully pivot into the contract manufacturing sector currently dominated by TSMC. Intel's 18A technology—featuring RibbonFET transistors and PowerVia backside power delivery—continues progressing through its development roadmap. The technology's performance characteristics reportedly sit between TSMC's current and next-generation nodes, creating a narrow window of competitive opportunity that Intel must capitalize on. What makes these particular tests significant is their positioning relative to actual production commitments. Chip designers typically run multiple test phases before allocating high-volume manufacturing contracts, with each progression reducing technical risk.

Reuters also reported that a six-month qualification delay for third-party IP blocks, which represents a critical vulnerability in Intel's foundry strategy, potentially undermining its ability to service smaller chip designers who rely on these standardized components. However, when this IP (PHY, controller, PCIe interface, etc.) is qualified for the 18A node, it is expected to go into many SoCs that will equal in millions of shipped chips. Additionally, the geopolitical dimensions of Intel's foundry efforts ease concerns of US-based chip designers as they gain a valuable manufacturing partner in their supply chain. Nonetheless, the 18A node is competitive with TSMC, and Intel plans only to evolve from here. Intel's current financial trajectory is the number one beneficiary if it proves good. With foundry revenues declining 60% year-over-year and profitability pushed beyond 2027, the company must demonstrate commercial viability to investors increasingly skeptical of its capital-intensive manufacturing strategy. Securing high-profile customers like NVIDIA could provide the market validation necessary to sustain continued investment in its foundry infrastructure.

Chinese manufacturers have seized significant market share in legacy chip production, driving prices down and creating intense competitive pressure that Western competitors cannot match. The so-called "China shock" in the semiconductor sector appears as mature node production shifts East at accelerating rates. Legacy process nodes, which are usually 16/20/22/24 nm and larger, form the backbone of consumer electronics and automotive applications while providing established manufacturers with stable revenue streams for R&D investment. However, this economic framework now faces structural disruption as Chinese fabs leverage domestic demand and government support to expand capacity. By Q4 2025, Chinese facilities will control 28% of global mature chip production, with projections indicating further expansion to 39% by 2027.

This rapid capacity growth directly results from Beijing's strategic pivot following US export controls on advanced semiconductor equipment, which redirected investment toward mature nodes where technological barriers remain lower. This is happening in parallel with companies like SMIC, although isolated, which are developing lithography solutions for cutting-edge 5 nm and 3 nm wafer production. For older nodes, The market impact appears most pronounced in specialized materials like silicon carbide (SiC). Industry benchmark 6-inch SiC wafers from Wolfspeed were previously $1,500, compared to current $500 pricing from Guangzhou Summit Crystal Semiconductor—representing a 67% price compression that Western manufacturers cannot profitably match. Multiple semiconductor firms report significant financial strain from this pricing pressure. Wolfspeed has implemented 20% workforce reductions following a 96% market capitalization decline, while Onsemi recently announced 9% staff cuts. With more Chinese expansion into the mature node category, Western companies can't keep up with the lowered costs of what is now becoming a commodity.

Over the past three weeks, press outlets and the buying public have levelled heavy criticism at NVIDIA board partners. The launches of three GeForce RTX 50-series "Blackwell" GPUs have—so far—been problematic; based on news reports and community feedback. Prior to release (on February 20), VideoCardz anticipated major price fluctuations for an all-custom portfolio of GeForce RTX 5070 Ti graphics cards. The publication did not hold back with its targeting of ASUS; one of Team Green's big time AIBs. Only a small selection of baseline MSRP ($749) conformant models were available on day one, and VideoCardz posited that manufacturers would implement price hikes soon after launch. A follow-up report continues their investigation into a lack of baseline MSRP options, as well as so-called "fake promotions."

VideoCardz repeated its belief that ASUS will jack-up the asking price for its PRIME GeForce RTX 5070 Ti model. When looking at Newegg's listing of baseline MSRP cards, the intrepid investigator stumbled up another notable absence: "we wrote three articles about the ASUS RTX 5070 Ti PRIME model not being listed as an MSRP card by retailers, which finally led ASUS to intervene (most likely for a limited time) to sell this card at the promised price. What we can immediately notice is the lack of the VENTUS 3X model from MSI, which was basically 90% of the MSRP card review coverage yesterday, as NVIDIA had no Founders Edition card for this launch and relied on board partners. In fact, the VENTUS 3X non-OC is not even included in the official launch, meaning that the card you saw yesterday in reviews is simply not available anywhere." It should be noted that TechPowerUp received an MSI GeForce RTX 5070 Ti Ventus 3X OC sample unit for evaluation purposes (review guide pricing was $749); Newegg lists this particular model with a current $829.99 price point, but stock is unavailable (at the time of writing).

In an interview with The Telegraph, Acer CEO and chairman Jason Chen said that its products made in the PRC will see a price increase of 10 percent as direct results of the new tariffs that the US will levy on electronics. However, Mr Chen is quoted as saying "We think 10 percent probably will be the default price increase because of the import tax." which doesn't mean it will be exactly 10 percent, as it might vary a bit between product segments. That said, what's clear is that Acer and most likely every other company that manufactures hardware in the PRC aren't going to eat any of the tariffs, as the companies appear to be shifting the burden of the new tariffs straight over to the end consumers. Mr Chen also suggested that some companies might be increasing their pricing by more than 10 percent.

The price increase will happen over time, as the new tariffs won't affect products that have left the PRC before the end of February. Alongside Acer, which is the fifth-biggest computer brand in the US market, it's likely that Dell, HP and Lenovo, as well as Apple, are going to hike their prices by the same 10 percent or more. Acer moved the assembly of its desktop computers out of the PRC during Trump's previous term, when a 25 percent tariff was imposed. Now Acer is looking at moving at least some additional parts of its productions out of the PRC and the US is on the table for some of its products. Considering that some 80 percent of all laptops imported to the US are made in the PRC, the Consumer Trade Association is expecting the new tariffs to cost US consumers some US$143 billion, which it assumes will lead to a slump in sales of consumer electronics.

According to sources close to the Wall Street Journal, Intel is weighing preliminary acquisition offers that could split the company into two parts: product and foundry. TSMC and Broadcom are independently exploring deals that would divide Intel's chip design and manufacturing operations. Broadcom has initiated informal discussions regarding Intel's chip design and marketing divisions, while TSMC is considering assembling an investor consortium to acquire Intel's facilities. This solution is improbable, as Intel's fabs are strategically one of the most critical aspects of the US semiconductor supply chain. Intel manufactures custom chips for the US Department of Defense; hence, having a foreign owner of fabs is not acceptable. The news about the acquisition comes as Intel grapples with manufacturing setbacks, including a total $13.4 billion loss in its foundry segment during 2024 and a significant erosion of market share in the AI processor market.

The acquisition talks face substantial regulatory hurdles, particularly regarding national security concerns. The US government has signaled resistance to foreign ownership of Intel's domestic manufacturing capabilities, which are deemed strategically vital to American technological sovereignty. This could particularly impact TSMC's bid for Intel's plants despite the Taiwanese company's position as the world's leading contract chipmaker. Intel's vulnerability to acquisition follows a series of strategic missteps under former leadership, including delayed manufacturing innovations and an increasing reliance on government subsidies for facility expansion. The company's share price has declined 60% from its 2021 highs amid these challenges, attracting potential buyers despite the complexity of any potential deal structure. Successful execution would require navigating both regulatory approval and the practical difficulties of disaggregating Intel's deeply integrated design and manufacturing operations.

China's dominance in semiconductor equipment procurement is expected to face its first setback since 2021, with spending projected to decrease from $41 billion to $38 billion in 2025, according to semiconductor research firm TechInsights. This 6% decline marks a significant shift for the world's largest buyer of wafer fabrication equipment, whose purchases represented 40% of global sales in 2024. The downturn reflects mounting pressures from both market dynamics and geopolitical constraints. US export controls targeting advanced semiconductor capabilities have intensified while domestic chipmakers grapple with overcapacity in mature node segments. SMIC, China's leading foundry, has already signaled concerns about oversupply risks in this sector, where Chinese manufacturers have rapidly expanded their market share against Taiwanese competitors.

Despite these headwinds, Chinese equipment manufacturers have notably advanced domestic capability development. Naura Technology Group has emerged as the seventh-largest global equipment manufacturer, while AMEC continues to expand its international presence. However, critical gaps persist in China's semiconductor equipment ecosystem, particularly in lithography systems, where dependence on foreign suppliers like ASML remains high. TechInsights data reveals that Chinese companies supplied only 17% of testing tools and 10% of domestic assembly equipment in 2023. The spending reduction comes after a period of aggressive stockpiling prompted by US sanctions to limit Beijing's access to advanced chipmaking capabilities, especially those applicable to artificial intelligence and military applications. However, Chinese manufacturers have demonstrated resilience, with SMIC and Huawei successfully producing advanced chips through alternative, albeit more costly, manufacturing methods.

TSMC is set to hold its inaugural board meeting on US soil on February 12—a strategic decision influenced by potential reciprocal tariffs outlined by the US President Donald Trump. As the company's first wafer fabrication facility in Arizona is in mass production using its 4 nm process, the US board meeting marks a first in TSMC's global expansion, where the company is holding a board meeting outside of Taiwan for the first time in its four-decade history. The board gathering, which will bring together directors from its Taiwan headquarters and overseas operational sites, comes amid concerns over possible US tariff measures targeting key trade partners, including Taiwan. Trump recently hinted at imposing tariffs on semiconductor products, which could directly affects TSMC's business operations.

Among the attendees will be Liu Jingqing, a director representing Taiwan's National Development Fund Management Committee, the company's largest shareholder holding 1.65 billion shares. Liu, who left for the United States on February 8, is expected to return to Taiwan immediately after the meeting, ensuring the board remains aligned with upcoming legislative sessions. During the meeting, the board will review the financial results for the fourth quarter and decide on cash dividends for 2024. Despite uncertainties over US tariffs, TSMC continues to expand its US investments. Its second and third fabs in Arizona, expected to employ more advanced processes such as 3 nm and 2 nm, show the company's long-term commitment to the American market while it continues advancing process and packaging capacity in Taiwan. TSMC Chairman C.C. Wei stressed that advancing mass production in Taiwan remains critical even while expanding US operations.

3M is expanding its commitment to the semiconductor industry by joining the US-JOINT Consortium, a strategic partnership of 12 leading semiconductor suppliers. The consortium drives research and development in next-generation semiconductor advanced packaging and back-end processing technologies anchored by a new cutting-edge facility in Silicon Valley.

"As the demands of AI and other high performance computing technologies increase, suppliers must work together to provide comprehensive solutions to tough challenges on increasingly shorter timelines." said Steven Vander Louw, 3M's president of display and electronics product platforms. "The companies in the US-JOINT Consortium represent US and Japanese innovation leaders in a range of advanced packaging technologies. 3M is pleased to join the consortium in order to bring our decades of materials science expertise, across more than 50 technology platforms, to help address these challenges."

The United States, currently led by the Trump administration, could be preparing a surprise package to its close silicon ally—Taiwan. During a House GOP issues conference in Florida, US President Donald Trump announced that he would impose 25% to 100% tariffs on Taiwan-made chips, including the world's leading silicon manufacturer, TSMC. Trump addressed the conference, saying, "In the very near future, we are going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States. They left us and went to Taiwan; we want them to come back. We do not want to give them billions of dollars like this ridiculous program that Biden has given everybody billions of dollars. They already have billions of dollars. […] They did not need money. They needed an incentive. And the incentive is going to be they [do not want to] pay a 25%, 50% or even a 100% tax."

The issue for TSMC is its massive reliance on US companies to drive revenue. The majority of its cutting-edge silicon is going to only a handful of companies, including Apple, NVIDIA, Qualcomm, and Broadcom. With tariffs, the supply chain economics, especially in the world of semiconductors, will break. TSMC's most significant export country is the US, and US companies with trillions of US Dollars of market capitalization rely on Taiwanese silicon. As a result, TSMC will most likely raise its wafer prices, with results trickling down to US companies raising their product prices with additional price hikes. TSMC plans to bring its advanced manufacturing on American soil, but given that these tariffs might break the economic model it currently operates under, it may need to happen sooner. Taiwan-based silicon giant has planned to leave US facilities trailing behind by a generation or two of advanced manufacturing, while domestic facilities produce the newest nodes. If Trump decides to go through tariffs, TSMC could make additional changes to its US-based manufacturing plans.

On Tuesday, the newly inaugurated United States president, Donald Trump, announced a massive AI infrastructure expansion in the US called Stargate Project. Stargate is an idea that brings private investments across the US land, with up to 500 billion US dollars committed to the project over the next four years. This is single-handedly one of the most significant infrastructure projects ever planned, and this time it is all about AI and data centers. The initial phase involves deploying 100 billion US Dollars immediately, while the remaining 400 billion will be deployed periodically over the next four years. OpenAI and SoftBank are leading this project, with Softbank's CEO Masayoshi Son being the project's chairman. Major equity partners include SoftBank, OpenAI, Oracle, and MGX. Major technology partners who will supply the know-how, planning, software, and hardware are Arm, Microsoft, NVIDIA, Oracle, and OpenAI.

Leading the entire operation will be up to OpenAI, who is gaining operational lead in the project, while Softbank oversees financial planning. Interestingly, the buildout has already begun. OpenAI is currently exploring a few sites in Abilene, Texas, which includes ten 500,000 sq. ft. data centers with 20 planned for the future. Interestingly, the infrastructure expansion will most likely be present in every US state that can provide ample land and power capacity. OpenAI is looking for partners to help with the massive data centers' power, land, and construction. The most significant impact of this project will be on the power grid, which will require additional buildout and implementation of small nuclear reactors running locally nearby to satisfy the power draw from hundreds of thousands and even millions of GPUs. OpenAI is praising NVIDIA for its almost decade-long partnership, meaning that most GPUs will likely be NVIDIA-sourced.

Multiple sources say an unidentified corporation is exploring the complete acquisition of Intel Corporation, according to tech publication SemiAccurate. The report points to an internal memo shared among a small group of top executives at the unnamed firm. A high-level insider confirmed the memo's legitimacy last week, reinforcing speculation that a purchase of Intel may be under serious consideration. SemiAccurate's report indicates that the prospective buyer has enough financial resources to acquire Intel outright, considering the company's current market valuation. Notably, this potential buyer has not been publicly identified in previous discussions about Intel's future, suggesting that planning has occurred behind closed doors. The memo's limited circulation hints that executives treat the proposal cautiously rather than engaging in casual exploratory talks.

Any attempt to purchase Intel would require extensive regulatory review, given the company's role in producing semiconductors for both commercial and government applications. Regulators would likely evaluate issues related to national security, supply chain stability, and competitive impact in the global chip market. While neither Intel nor the unidentified acquirer has issued an official statement on the rumor, we are watching for any signals of formal negotiations. Intel has long been a strategic source of the US semiconductor sector, and its potential ownership change would have to be domestic. If a deal does materialize, it would stand among the largest transactions in the technology field.

Intel Foundry has announced the onboarding of new defense industrial base (DIB) customers, Trusted Semiconductor Solutions and Reliable MicroSystems, as part of the third phase of the Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) efforts under the Trusted & Assured Microelectronics (T&AM) Program in the Office of the Under Secretary of Defense for Research and Engineering (OUSD (R&E)). The RAMP-C project, awarded through the Strategic & Spectrum Missions Advanced Resilient Trusted Systems (S²MARTS) Other Transaction Authority (OTA), allows DIB customers to take advantage of Intel Foundry's leading-edge Intel 18A process technology and advanced packaging for prototypes and high-volume manufacturing of commercial and DIB products for the U.S. Department of Defense (DoD).

"We are very excited to welcome Trusted Semiconductor Solutions and Reliable MicroSystems to the RAMP-C project we are engaged in with the DoD. The collaboration will drive cutting-edge, secure semiconductor solutions essential for our nation's security, economic growth and technological leadership. We are proud of the pivotal role Intel Foundry plays in supporting U.S. national defense and look forward to working closely with our newest DIB customers to enable their innovations with our leading-edge Intel 18A technology," said Kapil Wadhera, vice president of Intel Foundry and general manager of Aerospace, Defense and Government Business Group.