Below are the most-read DIGITIMES Asia stories from June 16 to June 22, 2025. Top developments include tighter US chip restrictions on China, updates on the next-gen 2nm race from TSMC and Samsung Electronics, and new disruptions in global supply chains driven by rare earth curbs and AI chip controls.
Taiwan bans Huawei exports; optical firms downplay impact
Taiwan's MOEA added 601 entities, including Huawei and SMIC, to its export control list on June 15, 2025, requiring Taiwanese firms to obtain licenses for shipments. Largan and GSEO said the impact is minimal, with GSEO noting its lens modules for Huawei are made in China. Many Taiwanese vendors had already scaled back shipments to Chinese clients amid tightening global restrictions. China, meanwhile, is heavily backing domestic firms like Sunny Optical, fueling competition through subsidies and overcapacity.
L&T Semicon sees India as key growth driver post Fujitsu acquisition
L&T Semiconductor is acquiring Fujitsu General's power module business for JPY2 billion (US$12.8 million), transferring production to Kaynes Semicon to tap India's rising demand in HVAC, data centers, and renewables. CEO Sandeep Kumar called India the key growth driver, with global expansion as a longer-term goal. The deal brings advanced packaging tech and IP to India in a power module market still dominated by Japan and Germany.
CXMT targets 2027 HBM3E launch as China races to close HBM gap
CXMT is accelerating HBM development with HBM3 targeted for 2026 and HBM3E mass production by 2027, as it races to catch SK Hynix, Samsung, and Micron. Blocked from EUV access, CXMT is producing DDR5 on a 1znm node and investing in hybrid bonding with Tongfu Microelectronics to support domestic HBM demand.
China's rare earth curbs hit smartphone camera parts
China's rare earth export restrictions, imposed in response to renewed US chip controls, are disrupting global supply chains, especially smartphone camera components. Huawei and other OEMs face shortages of parts like voice coil motors due to shipping delays from Japanese suppliers. The move highlights China's rare earth dominance but risks foreign firms exiting. Recent US–China talks in London hint at possible easing of tech curbs in exchange for resumed shipments.
AMEC eyes global lead, doubling semiconductor equipment reach
AMEC plans to double its high-end semiconductor equipment market share from 30% to over 60% in 5–10 years, expanding into metrology, inspection, TSV etching, and 3D integration. In the first quarter of 2025, it posted CNY2.173 billion (US$302 million) in revenue (up 35.4%), net profit of CNY313 million, and R&D spend of CNY687 million. AMEC has filed 2,941 patents and resolved four global IP disputes.
Trump tightens China chip curbs; Nvidia's H20 faces new export limits
The US expanded chip export curbs in April 2025 to include Nvidia's H20 — the last compliant AI GPU available to China — targeting HBM2E, HBM3, and HBM3E. ByteDance and Alibaba had reportedly ordered up to US$16 billion in H20 chips, leading to major Nvidia inventory losses. Nvidia now plans a downgraded Blackwell chip for China priced at US$6,500–8,000, while Chinese firms shift toward chiplets and GDDR to reduce HBM reliance.
TSMC, Samsung ramp up 2nm chip production race for 2H25
TSMC and Samsung are preparing for 2nm mass production in the second half of 2025 using gate-all-around (GAA) technology. TSMC has reportedly hit 60–70% yield and secured major clients like Apple, Nvidia, and Qualcomm. Samsung is applying GAA to its Exynos 2600, aiming to raise yield from 30% to 70% by mid-2025, though challenges remain in ramping volume and winning orders.
Article edited by Jack Wu
