As India emerges as a potential key player in the semiconductor industry, Tata Electronics' partner, Tokyo Electron, is contemplating establishing a manufacturing presence in India, reports the Economic Times.

Delta Electronics plans to expand the Indian market with industrial automation foray. Tata is expected to sign MoUs with semiconductor firms to enhance its chip capabilities.

Intel is further delaying the opening of a much-touted new semiconductor complex in Ohio, marking the latest setback to the chipmaker's expansion plans.

The UK has unveiled its most expansive round of sanctions yet targeting Russia, encompassing 107 new designations, among which are 10 companies hailing from China and Hong Kong. In a departure from previous measures, this latest blacklist incorporates a broader array of individuals and entities from regions beyond Russia, including so-called "third country" firms acting as intermediaries. According to Voice of America, legal experts studying Hong Kong's role in facilitating Russia's activities note that, while these steps are proactive, the implicated companies can dissolve within days, only to swiftly reemerge and resume their operations unabated.

These are the most-read DIGITIMES Asia stories from February 24 – February 27.

Nvidia's financial outlook disappoints, missing a forecasted triple-digit year-on-year growth for the current quarter. Industry sources expect that due to the ramp-up of GB200 and rising demand for DeepSeek-driven products like H20, RTX 4090/5090, and H100/H200, revenues for the first quarter of fiscal 2026 are projected to potentially reach US$45 billion while maintaining a gross margin above 70%.

National Cheng Kung University's Crystal Research Center officially launched on the 26th, becoming the only academic institution in Taiwan capable of growing large-scale silicon carbide (SiC) crystals at ultra-high temperatures exceeding 2300°C. The center is supported by prominent companies such as Largan Precision and Delta Electronics, which have provided significant financial and equipment backing to accelerate the acquisition of advanced technologies.

SmartSens Technology (Shanghai) Co., a top Chinese CMOS image sensor (CIS) manufacturer, announced on February 27 a long-term strategic partnership with Nexchip Semiconductor, a Hefei-based wafer foundry backed by Powerchip Semiconductor Manufacturing Corporation (PSMC).

Speculation has swirled for over a week about a potential collaboration between Intel and TSMC, igniting reactions from Intel's current and former employees. Now, four former Intel directors have escalated the debate with a blistering Fortune op-ed, condemning reports that the Trump administration is pushing TSMC to take over Intel's foundries. They warn that such a move could endanger US interests, predicting that TSMC would retain its cutting-edge research in Taiwan, gradually phase out Intel's workforce, and ultimately dismantle its manufacturing base—undermining America's position in the global semiconductor race

With US President Donald Trump accusing Taiwan of taking away America's semiconductor manufacturing, his remarks have already sent ripples through Taiwan's industry and even its national security landscape. In response, Taiwan's academic experts propose that TSMC establish a wholly-owned US subsidiary, American Semiconductor Manufacturing Company (ASMC), as the best potential solution to navigate geopolitical challenges and new US pressures.

US President Donald Trump, now back in the White House, has once again set his sights on TSMC. Previously, his administration championed the semiconductor supply chain crisis as a national security issue, urging the Taiwanese chip giant to establish manufacturing in the US. Now, the stakes have risen—Trump is threatening to freeze CHIPS Act subsidies, impose new semiconductor taxes, and, in an even more audacious move, reportedly demand that TSMC step in to save Intel.

Benefiting from the booming demand for testing related to artificial intelligence (AI), CCP Contact Probes, a probe development and manufacturing company, has optimized its product structure and is making strides in the semiconductor and electric vehicle (EV) sectors. Recently, positive news has emerged regarding test sockets and probes, which are expected to penetrate the advanced packaging supply chain for AI chips.

Although AI PCs underperformed market expectations in 2024, many industry players, from power semiconductor manufacturers to system providers, believe that significant growth will occur in the second half of 2025 as technology advances. Taiwanese power component manufacturer Panjit aims to capitalize on opportunities in the AI PC market through a diversified product line while also introducing its low-dropout regulator (LDO) products into the server sector, hoping to drive operational growth with AI servers.

Amid changing trade policies and rising geopolitical tensions, economic ties between Taiwan and Japan are strengthening. Taiwanese companies are eager to deepen their links with the Japanese supply chain, enter the Japanese market, and acquire Japanese firms, although their success varies greatly.

Since beginning his second term, US President Donald Trump has shaken up the international community and rattled the US government as he seeks to reorganize it. Trump's interest in the semiconductor industry has also made Taiwan his target.

US President Trump announced that starting in April 2025, a 25% tariff will be imposed on semiconductors, automobiles, and pharmaceuticals, with plans for gradual increases. Experts believe that US fabless and integrated device manufacturers (IDMs) will be compelled to fully absorb the tariff costs passed on by TSMC due to a lack of alternatives.

Despite the US's heightened curbs on AI chips against China, TSMC's 3nm and 5nm fab utilization rates have topped 100% in the first quarter of 2025, according to industry sources.

Chinese smartphone application processors (APs) shipments are expected to remain stable in the first quarter of 2025 despite the traditional off-season, supported by China's handset subsidy policy. Mid-to-high-end 5G models will likely appeal more to consumers within the subsidy-eligible price range, according to DIGITIMES' latest report covering Chinese smartphone AP market.

A report by the German Trade Office Taipei highlights that TSMC's fab construction in Dresden is enhancing Taiwan's profile and boosting collaboration with Germany. Taiwanese companies are exploring establishing facilities in Germany, while German businesses express enthusiasm about Taiwan's future.

Taiwan and the Netherlands have maintained a close long-term partnership in the semiconductor industry. To accelerate the development of silicon photonics (SiPh) technology, the International Heterogeneously Integrated Silicon Photonics Alliance (HiSPA) has officially signed a memorandum of understanding (MOU) with the Dutch research unit PhotonDelta through the Netherlands Office Taipei (NLOT), establishing a strategic partnership aimed at jointly promoting the growth of the photonic integrated circuit (PIC) industry.

In addition to its ongoing commitment to the automotive industry, Tsang Yow has reportedly set its sights on the high-growth semiconductor sector. The company stated that to meet the demands of its semiconductor clients, its Chiayi plant in Taiwan has accelerated certification processes and has gradually introduced trial production for four types of components at the end of 2024.

The Trump administration has reportedly urged TSMC to partner with Intel and expedite its investments in the US. Sources suggest that TSMC is weighing a controlling stake in Intel's factories, a move experts warn could be more harmful than beneficial. Taiwan's Minister of Economic Affairs J.W. Kuo stated that all foreign investments require approval, adding that no applications related to this proposal have been submitted thus far.

Donald Trump, President of the United States, has repeatedly signaled potential tariff increases on semiconductors and possible adjustments to the CHIPS Act subsidies, intensifying pressure on South Korean-based technology corporations such as Samsung Electronics and SK Hynix to ramp up their US investments.

China's aggressive price war in mature-node wafer manufacturing appears to be stabilizing, as Vanguard International Semiconductor (VIS) reports shifting customer orders. Chairman Leuh Fang said during an earnings call that while overcapacity in China will drive severe pricing pressure in 2024, the irrational competition has eroded trust, prompting global clients—particularly from the US—to diversify supply chains.