These are the top-read DIGITIMES Asia stories from the week of April 28 – May 4. From China's EUV light source milestone and Intel's turnaround push to Nvidia's evolving China strategy and TSMC's AI chip roadmap, the semiconductor sector saw a week of pivotal shifts.
China cracks EUV light source barrier, builds new experimental platform
China has unveiled its first solid-state laser-driven EUV light source platform, signaling a major leap in domestic chipmaking capabilities amid ongoing US export restrictions. Spearheaded by former ASML executive Lin Nan, researchers at the Shanghai Institute of Optics and Fine Mechanics achieved 3.42% energy conversion efficiency, surpassing benchmarks from ETH Zurich and ARCNL but still trailing ASML's 5.5%.
Lin's 1-micron laser system, more compact than ASML's CO₂-based machines, offers a viable alternative. Notably, ASML's 2024 report named China its largest market, contributing EUR10.195 billion (approx. US$11.6 billion), or 36.1% of total sales.
Intel CEO's four turnaround strategies unveiled
Intel is pushing forward with a sweeping turnaround under CEO Lip-Bu Tan, leveraging Trump-era "Made in USA" incentives and a surge in federal contracts. Its 18A node has entered risk production, with volume output set for late 2025, followed by performance-boosted 18A-P and 18A-PT nodes using advanced hybrid bonding.
The 14A node—featuring PowerDirect—has also attracted early customer interest. Panther Lake chips, launching in late 2025, will combine Intel and TSMC processes, including 18A, N3E, and 6nm. Intel Foundry Direct Connect 2025 proceeded as scheduled, drawing key partners such as UMC, MediaTek, Faraday, and eMemory.
Intel, AMD earn big in China, but US imports little—Why the gap?
In 2024, Intel, AMD, and Nvidia generated a combined US$30 billion from China—representing 29%, 24%, and 13% of their respective revenue—despite heightened US-China chip tensions. However, Chinese customs reported only US$12.8 billion in US semiconductor imports, or 3.1% of total intake, due to supply chains that route manufacturing through Taiwan, South Korea, or Southeast Asia.
At the same time, China exported US$31.8 billion in chips to the US. The discrepancy underscores how globalized production and origin classification obscures the depth of cross-border semiconductor ties.
Jensen Huang's China trilogy: How a 30-year game shaped Nvidia's rise
For three decades, Nvidia CEO Jensen Huang cultivated China as a key growth market, from early mobile chip attempts to become the engine of the country's AI surge. By 2020, China accounted for nearly 30% of Nvidia's revenue, fueled by adoption from Baidu and Tencent.
However, escalating US export bans—now covering chips like A800, H800, and H20—have cost Nvidia an estimated US$5.5 billion. With Huawei and Cambricon now controlling 30% of China's AI chip market, Nvidia's long-running China strategy faces a fundamental reset.
TSMC's AI chip plans remain on track; CoWoS capacity to double in 2025
TSMC is on track to double its advanced packaging capacity for AI chips in 2025, countering speculation of reduced orders from major clients. Sources estimate total capacity at 650,000 wafers, with Nvidia reserving 370,000 and AWS securing 73,000–75,000 wafers. Google, Broadcom, and MediaTek have also placed significant orders. CEO C.C. Wei confirmed AI accelerators will double their revenue share next year. TSMC aims to mass-produce 9.5x reticle-size packages and wafer-scale systems with 40x the current computing power by 2027.
Apple's Chinese supplier Luxshare hits US$37B milestone, breaks iPhone dependency
Luxshare Precision posted robust 2024 results with revenue up 15.9% to CNY268.8 billion (approx. US$36.9 billion) and net income rising 22% to CNY13.4 billion. In the first quarter of 2025, revenue grew 17.9% and profit rose 23.2%. While Apple accounted for 70.7% of revenue, Luxshare is diversifying through acquisitions, including Wingtech assets and a 50.1% stake in Germany's Leoni AG. Automotive electronics surged 48.7% to CNY13.8 billion, and AI-driven data center revenue rose 26.3% to CNY18.4 billion. Bloomberg projects 20–25% net income growth in early 2025.
YMTC lands US$1.3B funding as financials reveal post-Unigroup fallout
YMTC raised CNY1.6 billion from Quanhong Investment, valuing parent company YMTC Holding at CNY161.6 billion. The round, backed by 15 other institutions including top Chinese banks, brought in CNY9.42 billion and lifted subscribed capital to CNY111.81 billion.
YMTC posted a CNY531 million profit in 2023 but fell to a CNY84.2 million loss by the third quarter of 2024. Now separated from defunct Tsinghua Unigroup, YMTC is part of a broader portfolio including XMC (valued at CNY19.2 billion) and Unimos. US export controls continue to hamper YMTC's growth despite strong government backing.
Article edited by Jack Wu
