These are the top-read DIGITIMES Asia stories from the week of May 5 – May 11. From major chipmakers reshaping strategies under geopolitical pressure to rare earth shocks and Huawei's stealth fab push, here's a snapshot of the tech industry's most closely watched developments.
China breaks ground in advanced chip inspection amid deepening US tech decoupling
Skyverse Technology has started shipping the Redwood-900, China's first domestically developed wafer inspection system capable of detecting 10nm-scale defects, targeting advanced chip architectures. Entering a market long led by KLA-Tencor, Applied Materials, and ASML, Skyverse plans to raise its sub-14nm inspection market share from under 5% to 20%, supported by CNY498 million (approx. US$69.7 million) in R&D spending and CNY1.38 billion in 2024 revenue.
Lip-Bu Tan's Intel: leaner, flatter, and betting big on packaging
Under new CEO Lip-Bu Tan, Intel is undergoing major restructuring, cutting up to 20% of staff and shifting its focus to AI-first, software-defined chips. The company has reaffirmed its 18A roadmap, with Panther Lake set to debut in late 2025, and is doubling down on EMIB and Foveros packaging to compete with TSMC while positioning itself as a Made-in-USA foundry for AWS, Microsoft, Tesla, and US government agencies.
Taiwan's chip industry faces a string of crises, but China steps in as a surprising lifeline
Taiwan's semiconductor equipment sector is grappling with a "quadruple crisis"—Trump-era tariffs, tighter US AI chip export rules, a rising New Taiwan dollar, and weak tech demand. TSMC is offsetting these pressures through negotiations with US clients and suppliers, while accelerating its US$100 billion US fab rollout, now ahead of schedule. Taiwanese equipment firms with limited US exposure are leaning on China's strong demand and favorable pricing to stabilize margins as Western markets face rising volatility.
Rare earth prices surge 210%: EV, robotics, defense supply chains on the line
China's April export restrictions on seven rare earths—including dysprosium and terbium—have triggered a global price spike, with dysprosium doubling to US$850/kg and terbium tripling to US$3,000/kg. The surge is straining supply chains for EVs, robotics, and US defense systems. As Tesla and the Pentagon scramble, China, controlling 70% of supply and 80% of refining, reaps soaring profits and sharpens its strategic leverage in the tech trade war.
As Qualcomm stalls in China, MediaTek powers up
MediaTek and Qualcomm remain upbeat on non-smartphone segments but diverge on smartphone market momentum, especially in China. MediaTek is gaining share with its Dimensity 9400 series, expanding among Chinese brands amid US-China friction. Qualcomm faces setbacks as Xiaomi develops its own SoC and Apple phases out Qualcomm's 5G modems. Both firms are pivoting—MediaTek into automotive and ASICs with Nvidia, and Qualcomm into IoT and industrial AI.
Huawei reportedly erects three advanced chip fabs in Shenzhen to sidestep foreign tech
Huawei is reportedly constructing three chip fabs in Shenzhen to localize production of Kirin smartphones and Ascend AI chips amid US sanctions. One site, run by Huawei, targets 7nm chips for phones and autonomous systems, while SiCarrier and SwaySure operate the others with Huawei's support but no formal ties.
This proxy model taps state-backed capital while skirting direct ownership. Two fabs were completed in 2024, with Huawei's own facility expected online in 2026, signaling a push to rival TSMC, Nvidia, and ASML.
US manufacturing renaissance spurs China's strategic semiconductor expansion
China's foundry industry has surged in mature semiconductor manufacturing, accounting for 30% of global fab builds from 2019 to 2024 and once generating up to 50% of ASML's revenue, now down to 25%. While the US and EU pursue advanced nodes through the CHIPS Act and tariffs, China has focused on 28nm and legacy nodes, largely shielded from export controls.
This approach, backed by domestic demand and "local for local" production, has attracted global players like STMicro and NXP, who are partnering with Chinese foundries like Hua Hong to cut costs and mitigate geopolitical risk.
Article edited by Jack Wu
