IC distributor Edom Technology projects that current trends will extend into 2025, with AI remaining the industry's core focus. The company is actively monitoring infrastructure developments in network communications while deepening its collaboration with Nvidia to expand its presence in industrial control and healthcare applications.
Chinese government subsidies successfully drove electronics sales during Single's Day shopping events, according to sources at IC design houses. However, concerns have emerged that this may have only accelerated consumer spending, potentially weakening demand in the first half of 2025.
China's Single's Day shopping season expanded to a full month this year. While overall sales momentum appeared lackluster amid reports of discount exploitation and high return rates, the electronics sector showed strong performance, driven by government trade-in subsidies and promotional campaigns for new devices.
Following its latest financial results on November 20, Nvidia announced that Blackwell shipments are set to accelerate as suppliers scale up production, boosting its gross margin. Despite potential export restrictions under the incoming US administration, Nvidia reaffirmed its commitment to the Chinese market, ensuring compliance with US regulations.
Nvidia issued a revenue forecast that fell short of the most optimistic projections, hinting at potential limits to its rapid growth. Despite this tempered outlook, the company's performance has been remarkable over the past two years. Nvidia is on track to double its sales for the second consecutive year, achieving profits that surpass its former total revenue.
The third quarter has historically been a peak season, with robust sales of premium smartphones boosting FocalTech Systems' AMOLED TDDI shipments to continue their upward trend. Meanwhile, the supply chain's readiness to amass inventory has increased due to stable prices for mid-range and low-end TDDI products, resulting in increased demand.
Jiang-song Fu, chairman of IC distributor Professional Computer Technology (PCT), projected 2024 to be the trough for their operations. Despite this, the company expects to remain profitable. He highlighted that the AI trend is set to drive substantial growth for various IoT products, including automotive electronics, over 2025-2026.
According to a recent press release, the US Department of Commerce (DOC) and the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) are entering negotiations for the DOC to provide SRC US$285 million to establish and operate a Manufacturing USA institute in Durham, North Carolina. This investment will support the launch of the first CHIPS Manufacturing USA Institute with a total combined funding of US$1 billion.
In recent years, Taiwan-based IC design companies have massively entered the automotive chip sector, seeking growth opportunities beyond consumer electronics. The automotive chip market is particularly appealing due to its higher profit margins and longer product cycles, which are key to strengthening operational foundations.
AI was the name of the game for the semiconductor supply chain in 2024, according to IC distributor WPG Holdings, yet shifting supply-demand balance may lead to slightly slower growth in the semiconductor market next year. In the automotive market, as carmakers gradually end inventory adjustments, WPG is seeing initial results from its investments into integrated automotive solutions, as it targets Japanese Tier 1 suppliers.
Chinese EV giant BYD has unveiled its most advanced self-developed automotive chip, manufactured using a cutting-edge 4nm process. Industry sources report that the BYD 9000 represents China's most sophisticated automotive chip to date, with manufacturing reportedly handled by TSMC. The chip's striking similarities to MediaTek's MT8673 have sparked speculation about a strategic partnership between BYD and MediaTek.
Huawei's ambitions to create more powerful chips for AI and smartphones have hit major snags because of US sanctions, stalling a major Chinese effort to match American technology.
Fierce price competition in the power management IC (PMIC) industry, led by companies like Texas Instruments (TI), shows signs of abating. With limited room for further price cuts and inventory levels stabilizing, competitive pressures are easing.
According to a press release, on November 18, Samsung Electronics held a tool-in ceremony for its new semiconductor research and development complex (NRD-K) at its Giheung campus, which will house ASML's high-NA EUV system.
Despite recording over US$1 billion in profits during the third quarter of 2023 and thriving in the AI market with double-digit growth, AMD recently announced a 4% workforce reduction, affecting approximately 1,000 of its 26,000 employees. The company states these cuts aim to align resources with growth opportunities, particularly in AI, suggesting a potential reallocation of resources to better compete with Nvidia's GPU dominance.
Samsung Electronics' foundry division is advancing its semiconductor capabilities through the mass production of the Exynos 2600 (tentative name), marking a strategic push for self-sufficiency in mobile application processors (APs). While industry watchers have speculated about potential investment reductions, the company maintains its commitment to AP development, with plans to secure Qualcomm and Nvidia as potential clients for its 2nm and 3nm processes.
Nvidia's upcoming Blackwell GPUs, already delayed to market, are reportedly facing severe overheating issues in high-capacity server racks, raising concerns over deployment timelines.
According to an announcement on the China Securities Regulatory Commission's (CSRC) official website, Chinese GPU manufacturer Moore Threads completed registration with the Beijing Securities Regulatory Bureau on November 12, officially starting its pre-IPO advisory process with CITIC Securities as its financial adviser.
Samsung Electronics' recent decision to transfer personnel from its semiconductor research institute to various business units has sparked concerns over a potential talent drain, as the moves could result in significant reductions in performance bonuses for affected researchers.
Foxconn, through its subsidiary FII and Ingrasys, made a strong showing at Supercomputing 2024 (SC24) in Atlanta, the US, demonstrating its latest AI server technology portfolio. The company exhibited its newest rack products featuring the GB200 series and introduced expanded HGX offerings, emphasizing their enhanced computing capabilities for AI inference applications.
2024 has been a standout year for AMD, fueled by its expansive lineup of EPYC and Ryzen CPUs on the x86 architecture and the introduction of its Zen 5 processors. Mercury Research's latest report reveals AMD's impressive growth in revenue and unit share, underscoring its strong performance trajectory.
Global supply chains are accelerating their decoupling processes as geopolitical tensions persist, according to DIGITIMES vice president Eric Huang at the recent Tech Forum 2025. Taiwan's technology sector looks to capitalize on AI opportunities while planning for sustainable growth.
Taiwan-based IC design houses remain optimistic despite concerns about trade disputes potentially escalating following Donald Trump's win in the US presidential election. Two of the biggest concerns involve tariff increases and semiconductor export controls.
