The semiconductor industry is currently reeling from the explosive demand for AI, intensifying geopolitical competition, and a relentless wave of technological innovation. In the past few months alone, a number of important developments have been reported that will have a significant impact on the future of the industry. In this article, we extract the top 10 most noteworthy semiconductor news stories of July and take an in-depth look at their background and future impact. Please use this report as a guide to understand the “now” of the semiconductor industry and to decipher future trends.
1. NVIDIA’s domination of the AI chip market and market capitalization surpassing $4 trillion
The explosive demand for AI (Artificial Intelligence) is fundamentally changing the landscape of the semiconductor market. At the center of this trend is NVIDIA, the dominant leader in the AI chip market. The company has become the first publicly traded company in history to achieve a market capitalization of $4 trillion (approximately 630 trillion yen), with AI chips being dubbed the “new gold and oil” in importance. This event is symbolic of the magnitude of the transformation that AI is bringing to the industry.
As demand for AI data centers surges, so does the importance of power infrastructure. In China, plans are underway to deploy as many as 115,000 NVIDIA AI GPUs in 36 data centers to meet AI demand. At the same time, however, there are indications that NVIDIA’s supply of RTX 50 GPUs may be reduced by more than 30%, which means that supply will not be able to keep up with growing demand.
2. the intensification of the U.S.-China semiconductor conflict and the impact of tariff policies
Former President Donald Trump’s trade policies continue to create significant uncertainty in the global semiconductor supply chain. Of particular note are the 25% tariffs announced against Japan and South Korea. This is expected to severely hurt exports in key industries such as automobiles, semiconductors, solar, and batteries, with some South Korean companies saying that they will have difficulty holding up above 15%.
The U.S. is further tightening restrictions on AI chip exports to China and is reportedly considering restrictions on transit points such as Malaysia and Thailand. Taiwan is also one of the countries most concerned about the Trump administration’s chip tariffs. Despite this temporary agreement to re-extend the suspension of tariffs between the U.S. and China for 90 days, geopolitical tensions are undoubtedly a major factor in the future of the semiconductor industry.
Acceleration of competition in the development of cutting-edge processes (2nm)
The “nano competition” in the semiconductor industry is fierce. One major development on the front lines is Japan’s Rapidus. The company announced the successful prototyping of a 2nm GAA (gate all-around) transistor, taking a major step toward the start of mass production in 2027. This is being viewed as a symbolic achievement toward the “revival of Japanese semiconductors.
TSMC, the world leader, is looking further ahead and plans to mass produce 1.4nm process in 2028. Samsung, meanwhile, has also adopted a long-term strategy for its 2nm process, aiming to regain AI semiconductor supremacy by leveraging its GAA technology and HBM4 (high bandwidth memory). The competition in the development of cutting-edge technologies is intensifying.
4. semiconductor supply chain restructuring and regionalization
The global semiconductor supply chain is undergoing a period of rapid realignment in terms of geopolitical risk and economic security. tsmc is aggressively investing in plant expansion in the u.s. and plans to begin construction of an advanced packaging plant in the u.s. in 2028, in addition to its arizona plant. This move is in line with the U.S. policy of encouraging semiconductor manufacturing to return to the domestic market.
The Japanese government is also strongly supporting the protection of core technologies and the promotion of 2nm development by holding “golden shares” in Rapidus, which is responsible for the development of next-generation semiconductors. Western technology companies are increasingly “de-Chinaizing” their operations, and Taiwanese manufacturers are reportedly beginning to consider relocating production out of the country if government support is inadequate. Meanwhile, China is poised to lead the world in foundry capacity by 2030, and the supply chain is becoming increasingly multipolar.
Intel’s strategic shift and major workforce reductions
Facing a harsh reality, semiconductor giant Intel is undergoing a major strategic shift and restructuring. The company is reportedly withdrawing its hybrid configuration for Titan Lake in 2028 and focusing all its efforts on 100 E-cores (efficiency cores). In addition, the company has also announced a new strategy of reducing its investment in 18A (1.8nm equivalent) processes and shifting to 14A.
In parallel with these strategic changes, Intel is also implementing a massive workforce reduction of approximately 5,000 employees in the U.S. and Israel, with the Oregon plant also severely affected. CEO Lip Boo Tan’s admission that “Intel is no longer a top 10 chipmaker” is a testament to the tough competitive environment the company faces and the need for fundamental reforms to restore the company to its former glory.
6. intensifying competition between SK Hynix and Samsung in the HBM market
High-bandwidth memory (HBM) is a critical component to maximize the performance of AI chips and competition in that market is intensifying, and SK Hynix is driving record profits thanks to strong sales of HBM3E. The company is consolidating its market dominance by raising its DDR4/LPDDR4X contract prices by 20% on the back of strong demand in the third quarter.
Samsung, on the other hand, suffered an “Earning Shock,” with profits plunging 56% in the second quarter of 2025 due to delays in the supply of HBM chips to NVIDIA. However, Samsung has been trying to reel in the HBM market by starting to transition to hybrid bonding method in HBM4E, especially emphasizing the importance of advanced node customers. The market is also pointing to the risk of a double-digit drop in HBM prices in 2026, so the future strategies of both companies will be closely watched.
7. expansion of AI-driven semiconductor market and new application fields
The evolution of AI technology is creating new growth opportunities for the overall semiconductor market: in the first quarter of 2025, strong demand for AI drove a 6% increase in sales for the world’s top 10 IC design companies. In particular, the power semiconductor market, previously driven primarily by electric vehicles (EVs), is seeing a shift in its leading role to AI applications.
The range of applications for the technology is also expanding. Sony Semiconductor is leveraging its long-standing semiconductor technologies to enter the new field of AI-based drug discovery support. AI technology is also contributing to the efficiency of the semiconductor industry itself, for example by compressing the chip design process and making Google’s AI servers more power efficient. AI technology is also contributing to the efficiency of the semiconductor industry itself.
8. acceleration of China’s semiconductor industry and geopolitical risks
Despite U.S. sanctions, China is aggressively working to strengthen its semiconductor industry domestically and expand its influence in the global market. Projections indicate that China will accelerate its domestic expansion and become the leader in global foundry capacity by 2030. China’s domestic GPU manufacturers are already moving toward multi-billion dollar IPOs, and their growth is impressive.
The U.S. temporary lifting of export restrictions on certain electronic design automation (EDA) tools has created a strategic opportunity for China’s printed circuit board (PCB) industry. This has allowed China to gain independence in the high-performance computing (HPC) market. At the same time, however, there are unstable factors behind the rapid growth, such as reported “collapses” in some fabs in China. Huawei, undeterred by U.S. sanctions, has been on the reverse offensive, exporting AI chips to the Middle East and Southeast Asia, and geopolitical tensions over semiconductors are on the rise.
9. price fluctuations and supply conditions in the DRAM and NAND markets
In the memory market, prices fluctuate widely depending on the balance between supply and demand. Recent developments include a slowdown in PC DRAM momentum while prices for 16Gb DDR4 consumer DRAM are reported to be rising; DDR4 spot prices are on a gradual downtrend after a spike, but overall demand is expected to recover.
The NAND flash market is beginning to show signs of market recovery, with contract prices projected to rise 5-10% in the third quarter of 2025. In particular, the supply shortage of LPDDR4X is becoming more pronounced, which is prompting smartphone makers to accelerate their transition to LPDDR5X. The memory market as a whole is recovering. While the memory market as a whole is on the road to recovery, individual product lines and generations are showing different trends.
10. challenges in semiconductor human resource development and government initiatives
The rapid expansion of the semiconductor industry has highlighted the challenge of a serious worldwide shortage of human resources. In South Korea, a report by the National Audit Office has revealed a shocking shortage of up to 80,000 semiconductor personnel. This has been criticized as an indication that the government’s human resource development plans to date have failed to accurately forecast demand.
Against the backdrop of this crisis, countries are stepping up efforts to develop human resources. The Korean government and research institutes are attempting to address this challenge through the development of AI fusion human resources and the establishment of an AI committee. Also in Japan, Kyushu University has partnered with Yang-Ming Chiao Tung University in Taiwan to establish a “Semiconductor University” to jointly develop high-level human resources. For sustainable growth of the semiconductor industry, not only technological innovation but also the securing and fostering of excellent human resources to support it are indispensable.
summary
As we head into the second half of 2025, the semiconductor industry is in the midst of a veritable sea change: the explosive growth in demand for AI has led companies like NVIDIA to unprecedented success, while geopolitical tensions between the U.S. and China continue to have a profound impact on the supply chain. Competition in the development of cutting-edge process technologies (e.g., 2nm) is intensifying among major players in Japan, the U.S., Korea, and Taiwan, forcing established companies like Intel to make drastic strategic shifts and layoffs.
Competition is heating up in the HBM market, with SK Hynix dominating the market while Samsung is also trying to roll back. China is pursuing bold investments and strategies to strengthen its own semiconductor industry and establish leadership in the global market, but a common challenge of a shortage of human resources is also emerging.
In these turbulent times, companies will focus on building flexible supply chains and creating new business opportunities that take full advantage of AI technology. At the same time, governments will further strengthen policies to protect and nurture their semiconductor industries from the perspective of economic security. Future trends in the semiconductor industry will continue to be one of the most important indicators of the global economy, technological innovation, and international politics.
