Semiconductor News 20251229

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1. TSMC Maintains Normal Production after M7.0 Earthquake in Taiwan
   A massive magnitude 7.0 earthquake hit Taiwan. This was reportedly the third largest quake in the past 26 years, but TSMC, the world’s largest foundry, reportedly continued stable operations. Although there were concerns about the serious impact on the global semiconductor supply chain, production lines are operating normally, bringing relief to the global semiconductor industry. The company’s high level of resilience to disasters has been proven once again.
2. Japanese Government to Provide Over 1 Trillion Yen in New Support for Domestically Produced AI Semiconductor Project
   The Japanese government has decided to provide over 1 trillion yen in new support for efforts to produce AI semiconductors domestically. This brings the total amount of related budget to 7 trillion yen. In addition to Rapidus, which aims to manufacture cutting-edge chips, Softbank and Sharp have been named as recipients of support, marking a turning point in the national strategy to strongly encourage the establishment of a domestic AI infrastructure self-sufficiency system.
3. Google and Meta Enhance AI Hardware Compatibility through TorchTPU Collaboration
   Google and Meta are working together to enhance AI software compatibility through TorchTPU. In a market dominated by Nvidia, the two tech giants are joining forces to open up and standardize the development environment in order to accelerate the adoption of alternative hardware such as their own chips. The aim is to open up and standardize the development environment in a market dominated by Nvidia.
4. DDR5 Server Memory Prices Soar, 4TB Kit Exceeds $70,000
   DDR5 memory prices for servers have reportedly reached staggering levels, with 2 terabytes of RAM selling for $39,000 and 4 terabyte kits for over $77,000. This suggests that the supply of high-capacity memory is not keeping up with the demand for high-performance computing such as servers, and there are concerns about the impact on the cost of building data centers.
5. Hon Hai and Sharp Reveal Plan to Produce AI Servers Domestically
   A plan to produce AI servers domestically at Sharp, a subsidiary of Konoha Seimitsu Kogyo, has been revealed. This is believed to be in response to the growing demand for AI data centers in Japan. Meanwhile, there have been reports of shakeups in the management structure, including the exit of Nidec’s Nagamori, who tried to get involved in Sharp’s restructuring, and moves are underway to seek a shift to the AI infrastructure business, a growth area, under Konoha’s leadership.
6. Korean AI Chips Struggle to Capture Market on Cost Advantage Alone
   It has been pointed out that the Korean AI semiconductor industry is struggling to compete in the market on mere cost-effectiveness alone: hardware price competitiveness against the strong software ecosystem and performance barriers established by Nvidia and others. The current situation is that hardware price competitiveness alone is not enough to compete with the strong software ecosystem and performance barriers established by Nvidia and other companies. Despite ongoing government support and development efforts, a further strategic shift is required to capture a share of the global market.
7. Chemical giant Wanhua Chemical partners with Huawei to enter semiconductor field
   Chinese chemical giant Wanhua Chemical is increasing its foray into the semiconductor market as an entry from a different industry. The company has partnered with Huawei to make a raid on semiconductor materials and related businesses, in addition to aggressive investments in the battery sector. As the supply chain is increasingly being brought in-house in China, there is a growing trend of well-capitalized, cross-industry giants teaming up with technology companies to become a part of the semiconductor ecosystem.
8. Tongye Technology to Acquire Silingke Semiconductor for RMB560 Million to Expand Business
   Tongye Technology of China has announced plans to acquire a 91.69% stake in semiconductor company Silingke Semiconductor for cash. The transaction price is approximately RMB 561 million (approximately 11 billion yen scale). In China, investment and restructuring in the semiconductor industry continues, and listed companies are accelerating their efforts to capture technological capabilities and strengthen their business portfolios through M&A.
9. Resonac and Mitsui Chemicals are taking the lead in semiconductor materials for the space market.
   Japanese materials companies such as Resonac and Mitsui Chemicals are developing markets for “life” and industrial activities in space. This includes special materials for semiconductors used in the space environment, as well as culture materials. In addition to the competition for semiconductors on the ground, they are trying to secure key points in the supply chain for future space business by leveraging their high-value-added material technologies that can withstand the harsh environment.
10. South Korean Editorial Concerned that Policies Prioritizing Climate Measures Could Hurt Semiconductor Competition
    An editorial in the South Korean media expressed concern that climate change measures being promoted by the Minister of Environment could undermine the competitiveness of the semiconductor industry, a key national industry. The editorial pointed out that power supply and regulatory constraints are hampering companies in the fierce international competition known as the “semiconductor wars. How to strike a balance between industrial development and environmental goals has become a challenge for the semiconductor nation.

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