According to Bloomberg and The Korea Economic Daily, South Korean President Lee Jae-myung made a four-day trip from January 4-7, 2026, to Beijing and Shanghai, including a meeting with Chinese President Xi Jinping. The heads of the four major South Korean conglomerates (Samsung, SK Group, Hyundai, and LG Group) also traveled with Lee as part of an economic delegation.
Japanese chipmaker Rapidus is advancing its 2nm process technology while developing advanced packaging solutions tailored for AI chips. The company aims to officially start trial production on its advanced packaging line in April 2026.
The economics of advanced semiconductor manufacturing in the US differ sharply from those in Taiwan, and TSMC's experience in Arizona is underscoring how difficult that gap is to bridge. Analysts say higher depreciation per wafer and elevated labor costs are placing sustained pressure on margins at the company's US fabs, even as production ramps up.
Strong AI demand has pushed the memory sector into a rare upcycle. China's leading DRAM maker CXMT is advancing an IPO application on the STAR Market, targeting CNY29.5 billion (US$4.21 billion), the second-largest fundraising in STAR Market history. In parallel, supply chain sources say China's NAND flash leader YMTC is likely to file for an IPO in the first half of 2026.
As major corporations expand investments in artificial intelligence (AI), memory suppliers have seen a flood of orders. According to the latest reports from South Korean media, Samsung Electronics has not only demonstrated negotiation dominance but is also marketing a turnkey solution that bundles advanced packaging, DRAM, and foundry services to customers such as Google and AMD. This binding strategy aims to strengthen customer loyalty.
China's domestic foundry expansion gained momentum this week as Nexchip Semiconductor broke ground on its Phase IV project in Hefei, committing CNY35.5 billion (approx. US$5.07 billion) to expand 12-inch wafer capacity and deepen its position in mature-node manufacturing.
These are the most-read DIGITIMES Asia stories in the week of Dec 29 - Jan 4.
The US International Trade Commission (ITC) announced it has launched an investigation into alleged semiconductor patent infringement involving Samsung Electronics, Google, and Supermicro, after the US company Netlist filed a complaint claiming DRAM products imported by Samsung and Google violate Section 337 of the US Tariff Act. However, Netlist has faced criticism for its history of prolonged litigation battles with Samsung.
Memory demand remains elevated, with supply shortages driving prices sharply higher and triggering a broad profit surge across the sector. Memory module makers Adata and Team Group both reported self-calculated November 2025 earnings, posting year-over-year profit growth of more than 1,000%. Phison also delivered a sharp jump in single-month earnings, with CEO KS Pua expressing confidence in the company's outlook and continuing to raise his personal stake.
As AI server and semiconductor companies look set to close out a profitable 2025, recent Chinese military encirclement exercises and live-fire drills around Taiwan have once again highlighted the island's geopolitical tensions. US President Donald Trump has stated that China doesn't want to invade Taiwan.
As global tech companies navigate increasingly complex geopolitical tensions and shifting supply chains, strategic positioning against Chinese competitors has become a critical question. With Beijing ramping up support for domestic industries and the US tightening export controls, technology leaders are reassessing their competitive strategies.
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