The Trump 2.0 era is set to reshape global geopolitics and supply chains, with Taiwanese manufacturers closely monitoring US interest and exchange rate policies. Experts warn that relocating Taiwan's semiconductor supply chain to the US could lead to a "tech talent drain."
Samsung Electro-Mechanics is teaming up with South Korean semiconductor materials company SoulBrain to develop materials for glass substrates, with plans for mass production by 2027. This partnership aims to enhance Samsung's supply chain ecosystem and boost the development of next-generation semiconductor technology.
Export orders from Taiwan are expected to decline significantly in January 2025, with the Ministry of Economic Affairs (MOEA) forecasting values between US$44.5 billion and US$46.5 billion. This represents a month-over-month decrease of 15.9% to 12.1% and a year-over-year decline of 8.1% to 4%.
Despite the Chinese government's series of measures to revitalize the economy, the overall effect has been inadequate. Domestic Chinese MCU producers also present a stiff challenge to Taiwanese manufacturers. Both of these reasons slow Taiwan's MCU industry's recovery, according to industry sources.
China will investigate allegations that the US dumps lower-end chips and unfairly subsidizes its own chipmakers, in potentially one of Beijing's strongest retaliatory moves against American technology sanctions. The government will look into the question of whether the US is giving its chipmakers an unfair advantage through incentives and grants, or illegally undercutting Chinese products, the Commerce Ministry said in a statement on January 16.
Passive component materials supplier Ample Electronic Technology anticipates an exceptionally strong first quarter of 2025, driven by improved order visibility compared to previous years.
Taiwanese passive component leader Yageo reported its revenue for December 2024 dipped below the NT$10 billion (approx. US$303.75 million) mark. However, the company still achieved a record high for annual revenue. Looking forward to 2025, the rapid growth of artificial intelligence (AI) applications is poised to drive a new wave of demand, offering a significant boost to the passive components sector.
Rayzher reported record-breaking December 2024 revenue of NT$236 million (US$7.17 million), marking a substantial 68.91% increase from the previous year, driven by robust demand from Taiwan's semiconductor industry. The company's performance was bolstered by its gas pipeline re-distribution, disassembly, and relocation services.
Transcom, a provider of military-grade power amplifiers (PA), has disclosed that its revenue for 2024 reached an all-time high. The company's strong sales performance last year was primarily driven by government contracts, satellite communication-related products, and an increase in military drone shipments.
In 2024, the silicon carbide (SiC) semiconductor industry faces challenges as increased crystal growth production capacity in China results in oversupply and significant price drops, affecting the global market. Adding to the uncertainty, the US plans to initiate Section 301 investigations against China in 2025.
Kyocera, a leading Japanese electronic components manufacturer, plans to divest 10% of its consolidated revenue, valued at approximately JPY200 billion (US$1.27 billion), by the end of fiscal year 2025 (April 2025–March 2026). The strategic move comes as the company faces declining profitability in key sectors, including automotive electronics and semiconductor-related operations.
Chinese government subsidies for mobile devices have sparked optimism among Taiwan's power amplifier (PA) supply chain players, with industry sources expecting a revival in China's handset market and component sales in 2025.
US-China trade tensions and high tariffs are reshaping the global power semiconductor industry, creating both challenges and opportunities. Taiwanese firms are adopting capacity relocation strategies and bolstering partnerships with Southeast Asia, Europe, and the US to leverage geopolitical advantages and prepare for potential tariff escalations as Trump returns to office.
Japanese manufacturer Ibiden has established itself as a dominant player in the IC substrate market for AI chips, driven by Nvidia's strong demand for these substrates. Ibiden emphasized its commitment to maintaining the long-term partnership it has built with Intel.
The Ministry of Commerce of China has announced its export control list of American enterprises, including compound semiconductor manufacturer Intelligent Epitaxy Technology (IntelliEPI). In response, IntelliEPI stated that while the ban was just issued, they are currently assessing its impact. The company emphasized that its supply chain has been diversified with multiple suppliers over time to reduce risks, and they are developing relevant countermeasures.
PCB manufacturer Zhen Ding Technology has experienced its second fire incident at its Guanyin site in Taoyuan, northern Taiwan, in five years. The origin of the fire and the precise financial damages remain undetermined; nevertheless, production will temporarily relocate to alternative sites within the group as a contingency measure.
Despite setbacks such as low demand in the end-user market, price slashing in the automotive market, and sluggishness during the traditional peak season for the consumer electronics industry, Taiwanese LED firms have actively sought growth momentum in 2024 by shifting more toward high-value product lines.
Leading PCB manufacturer Zhen Ding has received approval to set up an AI park at the Southern Taiwan Science Park. The company is expected to invest NT$2 billion (US$61 million) to establish a hardboard production line and R&D center, targeting high-end PCB demands from clients in the AI server sector, with production anticipated to commence in the second half of 2025 at the earliest.
Taiwan's major motherboard and graphics card manufacturers are capitalizing on opportunities in the AI server sector, with projected operational growth in 2025, according to industry sources.
South Korea's Ministry of Trade, Industry, and Energy (MOTIE) has announced a KRW36.4 billion (US$24.79 million) investment to fund 48 next-generation semiconductor R&D projects by 2025. The initiative focuses on Processing-In-Memory (PIM) chips, advanced packaging, on-device AI semiconductors, system semiconductors, and compound power semiconductors.
Japanese printed circuit board (PCB) manufacturer Meiko has doubled its market value, driven by the need for the global supply chain relocation away from China. By proactively setting up production facilities in Vietnam, Meiko has become a key player amidst the US-China tensions. Satellite communications opportunities have also significantly boosted its revenue growth.
A recent report has revealed that the CPU department under Arm China, a Chinese chip IP designer and service provider, has started laying off employees. The department consists of around 30-40 staff members. Even though the number of layoffs is not large, it still has a significant impact on Arm China given the scale of the company.
Wingtech, a Chinese ODM and IDM powerhouse, announced on December 30 that it has signed a letter of intent to transfer the equity and operating assets of nine ODM subsidiaries to Luxshare Precision Industry. This acquisition would mark a watershed moment in the supply chain landscape.
