AI adoption is surging, with large-scale models like DeepSeek fueling a sharp rise in memory demand. Following DeepSeek's breakthrough during Lunar New Year, China has accelerated AI deployment across healthcare, finance, and government, driving the rapid expansion of its AI infrastructure

Escalating trade tensions under President Trump's new tariff regime are forcing Tesla to recalibrate its China strategy, with deeper Baidu partnerships emerging as a crucial lifeline. The electric vehicle (EV) maker faces growing data restrictions as Chinese regulations prevent its 2 million vehicles from transmitting information back to the US for driving systems training, while US policy simultaneously blocks AI software training in China—effectively crippling Tesla's Full Self-Driving (FSD) capabilities in the world's largest auto market

India-based EMS provider Zetwerk inaugurated its seventh plant in India over the weekend as an emerging electronics manufacturing ecosystem has benefitted local firms to raise funds and expand. However, proposed tariffs by the US may complicate its ambition

Aurotek has announced a strategic partnership with leading Chinese service robot maker Pudu Robotics to launch a range of next-generation service robots in Taiwan. Initial products will focus on areas that rely heavily on manual labor, including retail, manufacturing and warehousing, and healthcare facilities, with customizable robotics solutions tailored to specific needs in Taiwan planned for the future

SoftBank announced the acquisition of part of Sharp's Sakai Display Products (SDP) factory in Osaka Prefecture, Japan, for JPY100 billion (approx. US$6.7 million) on March 14, 2025. The company plans to transform the site into a large-scale AI data center, with operations expected to begin in 2026, reports NHK and Nikkei

On March 13, Gree Electric opened its first "Dong Mingzhu Health Home" store in Beijing's Tongzhou district, signaling a major expansion beyond air conditioning into the broader home appliance market

China's Changchun Institute of Optics, Fine Mechanics, and Physics (CIOMP) is offering "uncapped" salaries to PhD researchers as the nation races to develop domestic semiconductor lithography capabilities amid escalating US technology restrictions

These are the most-read DIGITIMES Asia stories from the week of March 10 – March 15

Baidu Inc. released a new artificial intelligence model that articulates its reasoning, in an apparent bid to regain momentum against up-and-coming rivals like DeepSeek

Apple plans to begin AirPods production at its supplier Foxconn's facility in Hyderabad, India, starting in April 2025, with an initial focus on exports. This move represents Apple's ongoing strategy to diversify its supply chain beyond China amid escalating trade tensions. The initiative also underscores India's emerging role in global electronics manufacturing

India's semiconductor industry is experiencing growth with key investments, such as VCI Global's semiconductor wire plant and Jabil's second factory. However, challenges persist, such as underutilized chip design potential and limited support for startups. Strategic partnerships, like Infineon's collaboration with CDIL, aim to strengthen India's e-mobility and renewable sectors

Since President Trump took office, China has come to view the US with increasing skepticism, prompting the Chinese government to implement several countermeasures in response to perceived US hostility

At the beginning of 2025, the US Department of Defense blacklisted China's lithium battery leader, Contemporary Amperex Technology (CATL), followed by US President Donald Trump imposing a 20% tariff on Chinese products, including lithium batteries. Recently, the US further prevented the US Department of Homeland Security from purchasing batteries manufactured by Chinese companies

On March 6, 2025, China's AI scene is brimming with confidence, with some media even suggesting that domestic firms could outpace OpenAI. Newcomer Manus is being positioned as a rival to DeepSeek, but whether it has the technological depth to back up the hype remains an open question. Flashy marketing alone won't close the gap